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Monday 20 June 2016
Albion Man Convicted of Sexual Exploitation of A Child and Possession of Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Jeffrey Duane Cox, 44, of Albion, Michigan was convicted by a federal jury of seven counts of Sexual Exploitation of a Child and two counts of Possession of Child Pornography, U.S. Attorney Patrick A. Miles, Jr. announced today. The jury returned a verdict after hearing testimony and reviewing evidence during a six-day trial. Cox faces up to 240 years of imprisonment for these offenses; he will be required to serve a term of at least five years of supervised release after his prison term has been completed; and he will also be required to register as a sexual offender.
The evidence presented at trial showed that Cox sexually abused and exploited seven children during 2012, 2013, and 2014. He lured the children into his home, convinced them to trust him, and then sexually abused and exploited them. Cox photographed and videotaped the children engaged in sexually explicit conduct in his home, personally taking photographs and setting up video cameras to record the exploitation, and sometimes using another person to take the photographs. Cox stored the images and video on multiple devices in his home in Albion.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
This case was investigated by a consortium of law enforcement agencies and departments, including the Department of Homeland Security, Homeland Security Investigations (HSI), Albion Department of Public Safety, Emmett Township Department of Public Safety, Battle Creek Police Department, and Calhoun County Sheriff’s Office. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
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10th Street Gang Member Sentenced for His Role in Two MurdersRead 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 Douglas Harville, 28, who was convicted of Racketeering Influenced Corrupt Organizations Conspiracy (RICO Conspiracy), was sentenced to 210 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that between 2000 and 2010, the defendant was a member of the 10th Street Gang. As a part of his involvement in the gang, Harville participated in the murder of Brandon McDonald and Darinell Young on April 17, 2006 on Pennsylvania Street in Buffalo. The victims were innocent bystanders who were standing in front of a house when the defendant and six other gunmen mistook them as rival 7th Street Gang. During the ensuing shooting, in which several handguns and shotguns were used, Brandon MacDonald was shot in the chest and Darinell Young was shot in the leg. Four additional victims were also shot and suffered injuries.
Harville, a 10th Street Gang member also possessed firearms, sold marijuana, cocaine, crack cocaine, and other controlled substances on the West Side of Buffalo.
The defendant is one of 44 10th Street Gang members and associates convicted in this case.
The sentencing is the culmination of an investigation on the part of Investigators of the New York State Police under the direction of Major Steven Nigrelli, the Buffalo Police Department under the direction of Commission Daniel Derenda, and Special Agents of the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen.
"Spice" Dealers Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that two dealers involved in the manufacture and distribution of “spice,” or synthetic marijuana, were sentenced in federal court. Shannon Christopher Parks, 23, and Cordale Eason, 24, both of Gulfport, Mississippi, entered guilty pleas to the charge of conspiracy to possess with intent to distribute a controlled substance during early 2016. Court documents show that Parks and Eason were arrested by federal and local authorities when they came to Mobile to pick up a shipment of the chemicals used to treat the “spice,” which had been imported from China. This chemical, AB-FUBINACA, was at that time a schedule I controlled substance, and it was delivered in powder form. Parks and Eason were indicted on the charges in October of 2015.
United States District Court Judge Ginny Granade imposed the sentences. In Parks’ case, Judge Granade imposed a sentence of 36 months imprisonment. As for Eason, the judge imposed a sentence of 57 months imprisonment, finding that Eason’s longer criminal history justified the difference in the length of the prison terms. Judge Granade found that neither defendant could pay a fine, but she ordered both to pay $100 special mandatory assessment. She also ordered that each would serve a three-year term of supervised release, to commence upon their discharge from prison.
The case was investigated by the United States Postal Service Postal Inspectors, the Mobile County Sheriff’s Office, and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Sunday 19 June 2016
Attorney General Lynch to Travel to OrlandoRead the Press Release
Attorney General Loretta E. Lynch will travel to Orlando on TUESDAY, JUNE 21, 2016, to meet with victims, first responders and other members of the community impacted by the terrorist attack in Orlando. The Attorney General will also receive an operational briefing at the investigation command center and hold a media availability with U.S. Attorney A. Lee Bentley III of the Middle District of Florida.
WHO:
Attorney General Loretta E. Lynch
U.S. Attorney A. Lee Bentley III of the Middle District of Florida
WHEN:
TUESDAY, JUNE 21, 2016
2:15 p.m. EDT
WHERE:
U.S. Attorney’s Office Middle District of Florida – Orlando Office
400 W. Washington Street
Suite 3100
Orlando, FL 32801
OPEN PRESS (Media Gather Time: 1:00 p.m. EDT; Final Access: 2:00 p.m. EDT)
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Members of the media must RSVP to [email protected] by MONDAY, JUNE 20, 2016, at 5:00 p.m. EDT. Space is limited and not guaranteed. Press inquiries regarding logistics should be directed to [email protected].
Friday 17 June 2016
Winner Man Charged with Sexual Abuse of a ChildRead the Press Release
United States Attorney Randolph J. Seiler announced that a Winner, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child and Abusive Sexual Contact with a Child.
Joseph Edward Cordier, age 38, was indicted on April 13, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 10, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or up to $500,000 in fines, up to life of supervised release, and $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
It is alleged that between June 19, 2007, and June 19, 2009, Cordier engaged in, and attempted to engage in a sexual act and sexual contact with a child under the age of 12 years old.
The charge is merely an accusation and Cordier is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk W. Albertson is prosecuting the case.
Cordier was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Vice President of X-Ray Company Sentenced to Four Years in Federal Prison for Health Care FraudRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Timothy Emeigh, age 52, of York Springs, Pennsylvania today to four years in prison, followed by one year of supervised release, for health care fraud arising from a scheme in which insurance providers and Medicare were fraudulently billed for tests interpreted by unlicensed personnel, and for tests and services which in fact had not been provided.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
According to his plea agreement, Emeigh was a licensed x-ray technologist in Maryland. Emeigh was not a licensed physician. Emeigh worked at Alpha Diagnostics Services beginning in 1993 as an x-ray technologist. In 1997, he was named vice president of the company’s operations by Rafael Chikvashvili, the CEO and owner of Alpha Diagnostics.
Alpha Diagnostics was principally a portable x-ray supplier in Maryland, Delaware, Pennsylvania and Virginia. However, Alpha Diagnostics also supplied or provided portable ultrasound tests, electrocardiograms (“EKGs”), echocardiograms and Holter monitors. The majority of its clients were nursing homes, whose patients Alpha Diagnostics tested. Alpha Diagnostics was headquartered in Owings Mills, Maryland with an office in Harrisburg, Pennsylvania. Alpha Diagnostics was enrolled in the Medicare program. Medicare required that a licensed physician order and interpret the x-ray or other test, and render a formal report.
Nonetheless, in 1997, at Chikvashvili’s request, Emeigh began performing x-ray interpretations in lieu of a licensed physician or radiologist, and producing fraudulent reports using the names of actual physicians who had never seen the x-rays in question. In 2003, as technology improved, Emeigh began interpreting medical tests and writing reports in the name of registered licensed physicians from his home using his home computer. In addition to x-rays, Emeigh began interpreting and drafting fraudulent reports for ultrasounds and EKGs from his home, while traveling out of state, and at times, from overseas. Sometimes Emeigh performed medical interpretations and transmitted x-ray images using a cell phone application. Emeigh maintained steady communication with Chikvashvili regarding the interpretation reports that he created from remote locations.
By 2010, Emeigh performed more than 70% of the x-ray interpretations, masquerading as a licensed radiologist or physician. On an average month, more than 1,000 x-ray interpretations were conducted by Alpha Diagnostics in Maryland alone.
Emeigh suggested to Chikvashvili that he transmit particularly difficult medical interpretations to actual licensed physicians. If a patient caregiver contacted Alpha Diagnostics to question any of the medical interpretation reports generated by Emeigh or other unlicensed Alpha Diagnostics personnel, Emeigh and Chikvashvili reassigned the diagnostic interpretation to an actual licensed physician for a second interpretation, who was not apprised of the first interpretation and conclusion.
Alpha Diagnostics would bill insurance providers for 2-view chest x-rays even where single-view x-rays had been ordered or performed. Alpha Diagnostics routinely submitted insurance payment claims which exaggerated the number of anatomical views performed by its x-ray and ultrasound technologists; and for multiple transportation charges on occasions when multiple patients had been examined at the same facility. Alpha Diagnostics would routinely bill Medicare for “global” x-ray procedures (i.e., both professional and technical components), along with transportation and setup charges, for studies interpreted "in-house" by Emeigh or other unlicensed Alpha Diagnostics personnel.
From January 2007 through October 2012, the financial loss to Medicare alone for the misconduct described above was more than $2.5 million.
The owner of Alpha Diagnostics, Rafael Chikvashvili, age 69, of Baltimore, Maryland, was sentenced on June 15, 2016, to 10 years in prison, followed by two years of supervised release, for charges related to a health care fraud and wire fraud conspiracy resulting in the deaths of patients, as well as false statements and aggravated identity theft, related to a scheme to defraud Medicare and Medicaid of more than $6 million. Chikvashvili was convicted by a federal jury on February 17, 2016.
United States Attorney Rod J. Rosenstein praised the HHS- Office of Inspector General and FBI for their work in the investigation, and thanked Assistant U.S. Attorneys Leo J. Wise and P. Michael Cunningham, who prosecuted the case.
United States Dismisses Prosecution Against Federal ExpressRead the Press Release
The United States Attorney's Office announced today that it moved to dismiss the indictment in United States v. FedEx. The Honorable Charles R. Breyer, U.S. District Judge, granted the motion today and dismissed the indictment.
United States Attorney John E. Kuhn, Jr. Delivers Remarks at Annual Pride FestivalRead the Press Release
Remarks as prepared for delivery
LOUISVILLE, KY
Thank you, Greg [Fischer], for that kind introduction and your dedication to equal rights, equal justice, fairness and inclusiveness.
I cannot begin to express how much it means to me to be with all of you here today. I do wish we stood here together in a spirit of undiminished, unalloyed, pure celebration. This past year was marked with important milestones, not the least of which was a milestone Supreme Court decision announced exactly one week after last year’s Pride Festival, a decision that finally secured freedom and equality in marriage for all of us. I wish – with all my heart – I wish that our hearts today were full of nothing but joy and pride.
Tragically that is not the case. Today we reel from the unconscionable terrorist attack on the innocents at the Pulse club in Orlando. Our hearts ache with the weight of the unfathomable losses of our brothers and sisters.
I am here today to tell you that my office – the United States Attorney’s Office – and the Department of Justice stand with you in support and commiseration. The Attorney General of the United States has asked U.S. Attorneys all over the country to speak to you. And because I cannot improve upon the remarks of Deputy Attorney General Sally Yates, I will share them with you. She said:
“Words cannot express the depth of our sorrow or the measure of our grief for all those whom we lost and all those whose lives have been changed forever. What happened in Orlando . . . was a horrifying act of evil and of terror. For the LGBT community, Pulse was more than a place to celebrate and see friends. It was a place that promised safety, inclusion and the freedom for people to be themselves – the same promise our country has made to all of us. This was an attack on that promise. It was an attack on our values, on our country and on our national community. It was an attack on who we are as a nation and as a people. And our country as a whole stands united in its response to this cowardly and despicable act.”
So let me say this. You have much to be proud of. Even in the shadow of this darkness and evil, the future is bright with promise for you. I pledge to you we will continue our fight together for universal equality, for acceptance, inclusion, freedom and security. We must continue on, together. Stronger. Brave. Unbowed. More determined than ever. And as we fight, let us always remain the force that you have been all along: a force of peace, courage, hope and love.
Two Arizona Men Charged Federally for Five Pounds of HeroinRead the Press Release
BOISE – Rodrigo Ramirez, 22, and Irwin Camacho, 20, both of Phoenix, Arizona, were arrested last night in Canyon County after being found in possession of over five pounds of black tar heroin, U.S. Attorney Wendy J. Olson announced. Ramirez and Camacho were arraigned on a complaint this afternoon in federal court, which charged them with possession with intent to distribute 1000 grams or more of heroin.
The charge of possessing with intent to distribute 1000 grams or more of heroin is punishable by at least ten years in prison and not more than life, a maximum fine of $10,000,000, and at least five years of supervised release.
The case is being investigated by the Drug Enforcement Administration and the Special Investigations Unit of the Nampa City Police Department
A complaint is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tulsa Man Pleads Guilty to Sexual Exploitation and Extortion of a MinorRead the Press Release
TULSA, Okla.— A Tulsa man pleaded guilty today to sexual exploitation of a child and extortion, announced United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
Christopher Lee Gunkel, 30, was indicted on May 3, 2016, and sentencing is scheduled for September 21, 2016.
According to court documents, Gunkel admitted to coercing a 14-year-old girl to send him sexually explicit photos and videos from January to November 2014. Gunkel admitted to threatening to distribute the sexually explicit images of the 14-year-old girl to her family and friends if she refused to send more naked and sexually explicit images of herself to him.
At the time of sentencing, Gunkel faces a minimum mandatory sentence of 15 years imprisonment and a mandatory maximum sentence of 30 years imprisonment.
The Federal Bureau of Investigation was the investigating agency. Assistant United States Attorney Andrew J. Hofland is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Sutter County Man Sentenced to 3 Years of Probation for Violating Migratory Bird LawsRead the Press Release
SACRAMENTO, Calif. — William Louis Filter, 46, of Live Oak, was sentenced today to three years of probation for unlawful baiting and the unlawful taking of a migratory game bird by aid of bait, Acting United States Attorney Phillip A. Talbert announced.
On May 4, 2016, a jury found Filter guilty after a two-day trial. The evidence at trial showed that Filter baited a field on his family’s hunting ranch in the Sutter Buttes by covering it with birdseed in order to attract mourning doves. On September 1, 2015, which is opening day of mourning dove season, Filter returned to the baited field with three others. Altogether, they shot and killed 34 mourning doves in less than three hours.
At the sentencing hearing, it was revealed that Filter had a history of fish and game violations, causing his hunting privileges to be revoked between 2009 and 2012.
During probation, Filter is required to obey the following special conditions: serve a three-year ban from hunting; surrender his hunting license to the U.S. Attorney’s Office; perform 120 hours of community service at a nonprofit organization that benefits animal welfare, nature conservation, or the environment; and, pay a $5,000 fine within six months.
This case was the product of an investigation by the United States Fish and Wildlife Service and the California Department of Fish and Wildlife. Special Assistant United States Attorneys Benjamin Nelson and Elliot Wong prosecuted the case.
Springfield Man Pleads Guilty to Federal Cocaine and Heroin ChargesRead the Press Release
BOSTON – A Springfield man pleaded guilty today in U.S. District Court in Worcester in connection with distributing cocaine and heroin.
Rafael Dominguez, 42, pleaded guilty to four counts of distribution of cocaine, one count of distribution of heroin and one count of possession with intent to distribute at least 500 grams of cocaine. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for September 12, 2016.
On five occasions from June to December in 2013, Dominguez distributed cocaine or heroin to an individual cooperating with federal agents. Dominguez’s distribution was caught on video and audio tape. Dominguez was then found with nearly 3 kilograms of cocaine. At his plea hearing, Dominguez admitted that he was responsible for distributing between 50 and 150 kilograms of cocaine and between 40 and 60 grams of heroin.
The charges of distribution of cocaine and heroin each provide for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. The charge of possession with intent to distribute at least 500 grams of cocaine provides for a sentence of at least five years and no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release and a fine of $5 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Second of Two Defendants Who Fled During Trial for Drug Trafficking Sentenced to Seven Years in PrisonRead the Press Release
The second of two King County residents who was convicted, in absentia, of Conspiracy to Distribute Ecstasy in 2009, was sentenced today in U.S. District Court in Seattle to seven years in prison, announced U.S. Attorney Annette L. Hayes. KAUSHAL KAINTH, 27, formerly of Renton, Washington, failed to appear in the middle of the third day of his trial – fleeing before closing arguments could begin. KAINTH was ultimately arrested in Canada and returned to the U.S. for sentencing in January 2016. KAINTH’s co-defendant, Hardeep Singh, 25, formerly of Kent, Washington, fled following the first day of trial, and was arrested in Canada in 2013 and sentenced to seven years in prison in 2014. At sentencing today U.S. District Judge Richard A. Jones noted that the pair attempted to distribute a large amount of drugs and that “once you put those drugs into the stream of commerce you have no idea what could happen.” In announcing the seven-year sentence, Judge Jones also considered that KAINTH “absconded” in violation of the court order that required his appearance at trial.
According to testimony at trial and records filed in the case, KAINTH and Singh conspired to distribute large amounts of ecstasy. Over eight days in early May 2009, the men agreed to pay a third man to deliver large amounts of ecstasy and another drug, BZP, to co-conspirators at the Southcenter Mall in Tukwila, Washington and in San Jose, California. KAINTH and Singh did not know the man that they offered to pay to deliver the drugs was working with law enforcement. The man recorded both defendants on audio and video. In all KAINTH and Singh gave that person working with law enforcement some 285,000 pills worth more than $2.8 million. The pills were all seized by law enforcement.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). The case was prosecuted by Assistant United States Attorney Brian Werner.
Savannah Firearms Dealer Pleads Guilty to Selling Machine GunsRead the Press Release
SAVANNAH, GA - David Gould, 38, a licensed firearms dealer from Savannah, Georgia, pled guilty today in Brunswick, Georgia before Chief U.S. District Judge Lisa Godbey Wood to multiple charges relating to his unlawful sales of machine guns.
According to court documents and statements made in court, in January 2016, the ATF received information that Gould, a licensed federal firearms dealer, was seeking to sell fully-automatic, untraceable machine guns for cash. The ATF conducted an undercover operation, during which Gould sold two fully automatic AR-15 .223 machine guns. The sales occurred in Savannah and Brunswick. Unbeknownst to Gould, he sold the machine guns to an undercover police officer. The machine guns sold by Gould were not registered; they did not have serial numbers; and they were made and possessed in violation of the National Firearms Act. The National Firearms Act limits and regulates the possession of fully automatic weapons. In addition to machine guns, Gould also sold the undercover officer large quantities of marijuana on two separate occasions. During each of the drug sales, Gould himself was armed.
If his plea agreement with the Government is accepted by the Court, Gould will serve 15 years in prison for his crimes. There is no parole in the federal system. Gould’s sentencing will be scheduled after the U.S. Probation Office conducts a presentence investigation.
The case was investigated by the ATF, the GBI and the Glynn County Sheriff’s Office. Assistant United States Attorney E. Greg Gilluly, Jr. is prosecuting the case on behalf of the United States.
Sacramento Man Found Guilty of Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — After a five-day trial, a federal jury found Albert Lee Mitchell, 69, of Sacramento, guilty of one count of receipt of child pornography, Acting United States Attorney Phillip A. Talbert announced.
On November 15, 2012, Mitchell was indicted on a single count of receipt of child pornography. According to the indictment, between April 16, 2012, and November 5, 2012, Mitchell received images of child pornography via the internet.
According to evidence produced at trial, on November 5, 2012, a search warrant was executed at Mitchell’s residence after law enforcement identified an IP address located there offering files of child pornography. At the time of the search, dozens of images of suspected child pornography were set to be downloaded on a file-sharing network on a computer located at the search site. Mitchell admitted to ownership of the computer and to being its sole user. A forensic review of the computer and other devices found in Mitchell’s home office revealed a collection of thousands of depictions of child pornography.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorneys Audrey B. Hemesath and Josh F. Sigal are prosecuting the case.
After the jury announced its verdict, Mitchell was taken into custody as a danger to the community. Mitchell is scheduled to be sentenced on September 28, 2016, by United States District Judge Kimberly J. Mueller. Mitchell faces a maximum statutory sentence of 20 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Roanoke Man Pleads Guilty to Sex Trafficking, Methamphetamine, and Gun ChargesRead the Press Release
ROANOKE, VIRGINIA – A Roanoke man, who conspired with others to distribute drugs and engage in sex-trafficking, pled guilty this afternoon, United States Attorney John P. Fishwick Jr. announced.
Brandon Scott Thomas, a.k.a. “Gambino,” age 25, of Roanoke, Virginia, pled guilty to one count of conspiring to possess with the intent to distribute at least 50 grams of methamphetamine, two counts of sex trafficking by fraud, force or coercion, one count of conspiring to commit sex trafficking by fraud, force or coercion, and one count of possession of a firearm in furtherance of a drug-trafficking crime.
“These women were trapped by addiction and the violent nature of a man who preyed upon their vulnerabilities,” United States John P. Fishwick Jr. said today. “We are proud of the work law enforcement did to bring this defendant to justice and hopefully bring these victims of sex-trafficking to a brighter future.”
“Human trafficking is one of the most heinous crimes we investigate,” said Clark E. Settles, Special Agent in Charge of Homeland Security Investigations’ Washington, D.C. field office. “Traffickers have no regard for human life, and they treat their victims as commodities. In this case, Thomas sold women just like he sold drugs. Today’s guilty plea ensures justice for his victims and makes southwest Virginia a safer place with one less trafficker on the streets.”
According to evidence presented at today’s and previous hearings by Assistant United States Attorneys Donald R. Wolthuis and Laura Day Rottenborn, Thomas conspired with others from at least July 2015 until his arrest in March 2016 to distribute heroin, methamphetamine, and other drugs, and he periodically possessed firearms in connection with his drug trafficking.
In addition, Thomas admitted today that he ran a prostitution business involving multiple women that operated out of hotels in Roanoke and Charlottesville. To promote the business, Thomas posted prostitution advertisements on the website, www.backpage.com. Thomas admitted that several of the women who worked for him engaged in prostitution as a result of Thomas’ fraud, force, and/or coercion. Thomas admitted that he prostituted women identified as V1, V3, and V4 in Roanoke and elsewhere in the Western District of Virginia, and admitted that he beat and threatened to beat the women, and took advantage of their drug dependencies, to compel their prostitution services.
Thomas admitted that beginning in September 2015 and continuing through February 2016, he was physically abusive to V4 on a regular basis. He admitted to slapping, punching, and choking her. On at least one occasion, Thomas admitted he held a knife to the throat of V4. On a separate occasion, Thomas used a taser on V4 and also beat V4 while she was pregnant. Many of these actions took place in front of other victims.
The investigation of the case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Roanoke City Police Department, the Roanoke County Police Department, the Salem Police Department, and the Virginia State Police. Assistant United States Attorneys Donald R. Wolthuis and Laura Day Rottenborn prosecuted the case for the United States.
Riverhead Physician Assistant Pleads Guilty to Conspiracy to Illegally Prescribe OxycodoneRead the Press Release
Michael Troyan, a physician assistant who operated two urgent care clinics on the east end of Long Island, today pleaded guilty to conspiring to illegally distribute oxycodone, a highly addictive prescription pain medication. The guilty plea was entered before United States District Judge Denis R. Hurley at the U.S. Courthouse in Central Islip. When sentenced, Troyan faces a maximum sentence of 20 years’ imprisonment and a $1 million fine.
In announcing the guilty plea, United States Attorney Robert L. Capers expressed his grateful appreciation to the DEA’s Long Island Tactical Diversion Squad, which led the government’s investigation in this case.
According to court filings and statements made in court during the guilty plea, between November 2011 and October 2015, Troyan, who was authorized to prescribe controlled substances, issued prescriptions for thousands of oxycodone pills to co-conspirators for the purpose of illegally re-selling the pills. During the investigation, Troyan was captured on video in an undercover operation writing phony prescriptions at his Riverhead medical office for oxycodone and receiving large quantities of cash – half the profit from prior illegal sales. As part of his guilty plea, Troyan agreed to forfeit $710,290 attributable to illegal prescription sales.
One of Troyan’s co-conspirators was Southampton Town Councilman Bradley Bender, who is scheduled to be sentenced on June 24, 2016. Bender’s resignation as a Councilman was accepted by the Southampton Town Board on the day of his guilty plea, November 24, 2015.
This case is part of a series of federal prosecutions by the United States Attorney’s Office as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in the Eastern District of New York, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Initiative to mount a comprehensive response to what the United States Department of Health and Human Services Center for Disease Control and Prevention has called an epidemic increase in the abuse of opioid analgesics. To date, the Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 18 health care professionals, taken civil enforcement actions against a hospital, a pharmacy, and a pharmacy chain, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being prosecuted by Assistant United States Attorneys Allen Bode and James Knapp.
The Defendant:
Name: MICHAEL TROYAN
Age: 37
Residence: Riverhead, New YorkPeoria Man to Serve 30 Years in Prison and Lifetime Supervised Release for Distributing Child PornographyRead the Press Release
Peoria, Ill. – U.S. District Judge Michael M. Mihm sentenced Jacob T. Burmood, 24, of the 6800 block of N. Fawndale Drive, Peoria, Ill., today to serve 30 years in prison to be followed by a lifetime term of supervised release for the offense of distribution of child pornography.
The charges are the result of an investigation by the Peoria Police Department, acting in participation with the Illinois Attorney General’s Internet Crimes Against Children (ICAC) taskforce and the National Center for Missing and Exploited Children. Assistant U.S. Attorney Ron Hanna prosecuted the case.
On Jan. 25, 2016, Burmood pled guilty to the offense. According to court documents, on Oct. 14, 2015, Peoria police officers executed search warrants on Burmood’s person, his residence, and various computers and electronic media. A subsequent forensic analysis of Burmood’s computer showed that he possessed more than 3,000 images and approximately 200 video files of minors engaged in sexually explicit conduct with other minors and adults. The forensic review further revealed that Burmood distributed child pornography to others using an e-mail account.
Burmood is a registered sex offender as a result of a prior conviction for a sex crime in Illinois in 2011. He has remained in the custody of the U.S. Marshals Service since he was arrested on Oct. 16, 2015.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Oswego County Man Charged with Distribution of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Richard S. Buffham, 48, of West Monroe, New York, was arrested yesterday on charges of distribution of child pornography following an investigation by Special Agents of the Department of Homeland Security Investigations (“HSI”), the New York State Police-Computer Crime Unit and the New York State Police, Bureau of Criminal Investigation (BCI-Pulaski), announced United States Attorney Richard S. Hartunian.
The criminal complaint alleges that from September through November of 2015, Buffham posted files containing child pornography on a social media site.
The defendant appeared yesterday in federal court in Syracuse, New York, before United States Magistrate Judge David E. Peebles and was ordered detained without bail.
If convicted of distributing possessing child pornography, Buffham faces a mandatory minimum sentence of five (5) years imprisonment, a maximum term of 20 years imprisonment, a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration as a sex offender. Sentences are imposed by a judge based on the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
Oakland Man Charged with Production of Child PornographyRead the Press Release
OAKLAND –D’mar Dwain Jennings Conway appeared in court today and was arraigned on charges he produced and possessed child pornography, announced United States Attorney Brian J. Stretch and Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin. The appearance follows an indictment handed down by a federal grand jury yesterday and a complaint and affidavit filed May 26, 2016.
Conway, 28, is a resident of Oakland. According to the indictment and complaint, during a search of Conway’s Fruitvale neighborhood residence, HSI agents seized a video camera and a digital storage card for the video camera. On the storage card, agents found numerous digital images that allegedly show Conway abusing a young boy between the ages of 3 and 6 years old by engaging in various sex acts with him in Conway’s residence. In the indictment, Conway is charged with one count of sexual exploitation of children, in violation of 18 U.S.C. §§ 2251(a) and (e); and one count of possession and access with intent to view child pornography, in violation of 18 U.S.C. §§ 2252(a) and (b). The indictment alleges Conway abused the child between the years of 2007 and 2010.
Conway was arrested on May 26, 2016, and made his initial appearance in federal court on the federal complaint on May 27, 2016. He was remanded into the custody of the U.S. Marshal on May 26, 2016, and remains in custody. The defendant’s next scheduled appearance is at 1:00 p.m. on July 19, 2016, before the Honorable Jeffrey S. White, U.S. District Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of violating 18 U.S.C. § 2251, the defendant faces a mandatory minimum prison sentence of 15 years, a maximum sentence of 30 years, and a fine of $250,000 plus restitution, if appropriate. If convicted of violating 18 U.S.C. § 2252(a)(4), the defendant faces a maximum sentence of 20 years, a fine of $250,000, plus restitution, if appropriate. Additional fines and a term of supervised release also may be imposed, however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Denise Marie Barton and Brian Lewis are prosecuting the case with the assistance of Trina Khadoo. The prosecution is the result of an ongoing investigation by the United States Department of Homeland Security.
If members of the public have any information relevant to this investigation or to suspected child predators or suspicious activity, HSI encourages them to contact HSI through the toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form at https://www.ice.gov/webform/hsi-tip-form. Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
Nine Arrested for Running Methamphetamine, Cocaine and Marijuana Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Nine west Texas residents, including four alleged members of the Texas Syndicate, remain in federal custody following their arrests earlier this week on federal charges stemming from their roles in a methamphetamine, cocaine and marijuana distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
The arrests were made by special agents with the Drug Enforcement Administration and the Texas Department of Public Safety, with assistance from the Big Spring, Sundown and Levelland Police Departments, the Howard County and Lubbock County Sheriff’s Offices, the U.S. Marshals Service and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
The nine defendants made their initial appearances in federal court, and detention hearings are scheduled throughout the month of June. There remain several fugitives in the case.
Each of the below-listed defendants is charged with one count of conspiracy to distribute and possess with intent to distribute 50 grams and more of methamphetamine, 500 grams and more of cocaine and marijuana, as well as one count of using a communication facility to facilitate the conspiracy to distribute methamphetamine and aiding and abetting:
Cruz Perez, aka “Travieso,” 40
Christopher Lee Gonzalez, aka “Gonzo,” 43
Victor Manuel Castillo, aka “Victor Manuel Garza,” 43
Christopher David Gonzales, aka “Chris,” 41
Evan Cruz Parson, aka “Evan,” 21
Alexander Alfonzo Mendoza, aka “Alex,” 20
Jose Gutierrez, III, aka “Baby Joey,” 21
Jasmine Pillar Hernandez, aka “Crazy,” 32
Crystal Dimas, aka “Babe,” 28According to the indictment, defendants Perez, Gonzalez, Gonzales and Parson are allegedly members of the Texas Syndicate, a prison-based street gang involved in various criminal activities.
Defendants Perez, Gonzalez, Castillo, Gonzales, Mendoza, Gutierrez and Hernandez are also each charged with at least one count of distribution and possession with intent to distribute more than 50 grams of methamphetamine and aiding and abetting
Defendant Perez is also charged with two counts, and defendants Parson and Mendoza are each charged with one count of managing a drug premise and aiding and abetting.
A federal indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, the conspiracy count carries a maximum statutory penalty of 20 years. Each of the methamphetamine distribution counts carries a mandatory minimum penalty of five years and a maximum statutory penalty of 40 years. The use of a communication facility count carries a statutory minimum penalty of four years. The managing a drug premise count carries a maximum statutory penalty of 20 years. Fines could range from $250,000 to $4,000,000.
Assistant U.S. Attorney Juanita Fielden is in charge of the prosecution.
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New Yorker Marcus Delille Imprisoned for Possessing Counterfeit Credit Cards and Driver's LicensesRead the Press Release
The United States Attorney for the District of Vermont announced that Marcus Delille, 27, of Brooklyn, New York, was sentenced today in United States District Court in Burlington to four months of imprisonment for possessing counterfeit credit cards and identification documents. Chief U.S. District Judge Christina Reiss also ordered that Delille serve three years of supervised release following completion of his prison term. The court directed that Delille surrender to the U.S. Marshal in Vermont on June 22 to begin serving his sentence.
On June 17, 2015, a federal grand jury in Rutland returned a two-count indictment charging Delille with fraudulently possessing 15 or more counterfeit access devices and unlawfully possessing five or more false identification documents. In March, Delille pled guilty to the access device count. According to court records, Delille was stopped for speeding by a Vermont State trooper on April 23, 2015 just north of Brattleboro. During the course of the traffic stop, the trooper discovered that Delille had in the rental car he was driving and on his person 39 counterfeit credit cards that had not been issued to him, as well as five counterfeit driver's licenses which appeared to have been issued by California, Texas, Pennsylvania and Illinois.
Delille was originally charged in state court with identity theft but those charges were dismissed after the federal indictment was returned. Delille is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
New York Man Charged with Sex Assault on AirplaneRead the Press Release
NEWARK, N.J. – A Monsey, New York, man appeared in federal court today to face charges that he sexually abused a woman on a flight from Israel to Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced.
Yoel Oberlander, 35, was charged by criminal complaint with one count of abusive sexual contact on an airplane. Oberlander had his initial appearance this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained.
According to the complaint:
While on a May 29, 2016 El Al flight from Tel Aviv to Newark, Oberlander was seated next to a female passenger and her mother. During the flight, Oberlander repeatedly placed his hand on the female passenger’s thigh and breast without her consent.
Oberlander is a registered sex offender. He was previously convicted in 2002 in New York for sexual abuse in the second degree, arising from his sexual assault of an eleven-year-old girl.
The abusive sexual contact charge carries a statutory maximum of up to two years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the Port Authority of New York-New Jersey, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s Criminal Division in Newark.
Defense counsel: David Goldstein Esq., Montvale, New Jersey
Mill Creek Man Sentenced to Prison for Importing Drug Paraphernalia and Receipt of Misbranded DrugsRead the Press Release
A Mill Creek, Washington man was sentenced today in U.S. District Court in Tacoma to six months in prison for importing drug paraphernalia and receipt of misbranded drugs, announced U.S. Attorney Annette L. Hayes. JAE SEON YOON, (AKA: Jason YOON), 56, was the president or vice-president of multiple companies doing business in Washington State over the years including J&J, Inc. (d/b/a “Top Wholesale, Inc.”), Smomax, Inc. (d/b/a “346 Glass Pipe/Master Trading”) and Three People Corp. (d/b/a/ “Cigar USA”). YOON pleaded guilty in March 2016. Following YOON’s arrest in July 2015, his assets were seized and his most recent business venture in Lynnwood, Top Wholesale, was shuttered. YOON imported and distributed drug paraphernalia and other goods with counterfeit markings that made them appear to be from established suppliers. YOON also sold ‘sex pills’ claiming to enhance sexual prowess. Such pills contained a variety of ingredients in combinations and at dosage amounts that were never approved by the FDA and were never listed on the labels. At sentencing U.S. District Judge Ronald B. Leighton said “You were persistent in your decisions to circumvent customs and counterfeit laws. This is an affront to the rule of law.”
YOON imported drug paraphernalia from China, sometimes via Canada, by marking them as vases, laboratory glassware, or oil and vinegar dispensers. Multiple shipments were seized by law enforcement; one shipment was addressed to a wholly fictitious company in an attempt to evade discovery by law enforcement. While the items were made in China, they were falsely marked with the logos of companies who manufacture similar goods in Germany and Canada. YOON also imported e-cigarettes and chargers which bore counterfeit Underwriters Lab (U/L) markings. U/L is an American worldwide safety consulting and certification company that provides safety standards for electrical devices and components. YOON then sold the counterfeit items at Top Wholesale to small “mom and pop” type retail stores.
YOON also imported counterfeit logo stickers to apply to items to increase their resale value, including Seattle Seahawks and other NFL team stickers. YOON also trafficked in “Hello Kitty” logo items despite being served with a cease and desist letter by the registered trademark owner.
In addition to the counterfeit goods and ‘sex pills,’ YOON trafficked in ‘spice’- a synthetic form of marijuana. ‘Spice’ that was seized in the course of the investigation tested positive for controlled substances. When YOON learned that the FDA was coming to discuss his operation, he had his staff move all the ‘sex pills’ and ‘spice’ to an off-site location. He then moved the contraband back to the business for its continued sale when he thought the danger from the FDA visit had passed.
In June 2015, law enforcement executed search warrants at YOON’s operations. Agents seized 200,000 items of drug paraphernalia, more than 50,000 counterfeit items of all sorts, more than 10,500 ‘sex pills,’ and hundreds of packages of spice. All told, it took more than four extended-length semi-truck trailers to remove all of the contraband and counterfeit merchandise from Top Wholesale. Agents also seized nearly $800,000 in criminal proceeds; YOON had hidden $647,900 of that amount, in cash, in a safety deposit box rented in someone else’s name. Revenue agents from the State of Washington assessed a fine in excess of $30 million for YOON’s sales of untaxed tobacco and other tobacco products since 2011.
YOON will likely be deported to his native Korea when he finishes his prison term.
The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations with assistance from U.S. Customs and Border Protection (CBP), the Washington State Liquor and Cannabis Control Board, and the Food and Drug Administration (FDA) Office of Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Marci L. Ellsworth.
Mexican Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced today that Jose Zepeda-Del Toro, 35, of Mexico, pleaded guilty today to illegally reentering the United States after having been previously deported. Zepeda-Del Toro was sentenced to time served since his arrest on March 24, 2016. He will now be deported.
On March 24, 2016, Deportation Officers encountered Zepeda-Del Toro in Nashua, New Hampshire as part of an investigation involving the defendant’s brother. One of the Deportation Officers asked the defendant if he was legally present in the United States, whereupon the defendant admitted he was not, and that he last entered the U.S. illegally sometime after April of 2014. Zepeda-Del Toro was then taken into ICE custody for being illegally present in the U.S. and transported to the ICE-ERO office in Manchester, New Hampshire for administrative processing.
Fingerprints taken at the time of the defendant’s arrest were compared to known fingerprints of the defendant on file as the result of previous deportations. The defendant’s prints matched the known prints and identified the defendant as having been deported on April 19, 2014 and again on April 25, 2014.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and prosecuted by Assistant U.S. Attorney Alfred Rubega.
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Meriden Man Sentenced to Prison for Federal Hate Crime OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that TED HAKEY, JR., 48, of Meriden, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to six months of imprisonment, followed by three years of supervised release, for firing shots into the Baitul Aman Mosque in Meriden in November.
“We all have a right to worship freely and without fear of violence, and individuals who commit hateful, divisive and violent acts against others need to know that a prison term will be the end result,” said U.S. Attorney Daly. “This is an appropriate sentence that balances the need for justice with the defendant’s genuine expressions of remorse and the victims’ plea for a sentence that didn’t include jail time. Since the time of the shooting, the congregation of the Baitul Aman Mosque has turned this senseless and hateful crime into something positive – using their story as a way of raising awareness about the peaceful message of Islam. Rather than just letting themselves be victims, they took a stand, reached out to the defendant, and offered him forgiveness and reconciliation. Their generosity of spirit serves as a role model for all of us. I thank the FBI, ATF, Connecticut State Police and Meriden Police Department whose superb efforts not only solved a hate crime, but also helped both heal and empower the victims in this case and the broader Muslim community in Connecticut.”
“This case highlights how law enforcement, the judicial system and our community working together can affect positive social change,” said FBI Special Agent in Charge Ferrick. “This incident should serve as an educational tool and illustrate to everyone that ignorance and hate should never prevail.”
According to court documents and statements made in court, in the early morning hours of November 14, 2015, officers from the Meriden Police Department responded to citizen complaints about shots being fired around the area of 410 Main Street in Meriden, the location of the Baitul Aman Mosque. On Sunday, November 15, 2015, a family who entered the Mosque to worship noticed damage to the interior walls and the drop ceiling of the Mosque and called the police. Investigators determined that approximately three rounds shot from a high-powered rifle had penetrated the building, and another had hit an exterior area. A preliminary analysis of the trajectory of the bullets indicated that they likely came from a high-powered rifle shot from the area of 380 Main Street, the house located closest to the Mosque, which is HAKEY’s residence.
In subsequent interviews with authorities, HAKEY admitted that he had shot a Springfield M1A rifle at the Mosque on November 14, 2015.
The investigation revealed that after HAKEY had learned about terrorist attacks that had occurred in Paris on November 13, 2015, he posted the following status to his Facebook account: “What is gonna be the breaking point to go “weapons free” against Islam?”
“Weapons free” is a military command to shoot at will.
HAKEY also sent a Facebook friend a private message saying: “I hate ISLAM!.”
HAKEY’s Facebook account also contained other evidence of animus toward Muslims and Islam. For example, earlier in 2015, HAKEY had told a Facebook friend that he has “a mosque right next door” and that he had “observe[d] them with [his] binos [binoculars].” In the same conversation, he said “All Muslims must die!!! I hate them all.” In July 2015, he posted to Facebook: “If we all kill just 1 Muslim each tonight it will make a dent!.”
HAKEY was arrested on December 17, 2015. On February 11, 2016, he pleaded guilty to one count of intentionally damaging religious property through use of a dangerous weapon.
During today’s sentencing proceeding, Dr. Mohammed Qureshi, the president of the Ahmadiyya Muslim Community, spoke on behalf of the Baitul Aman Mosque congregation. Dr. Qureshi discussed the congregation’s interactions with HAKEY since the shooting occurred, detailed HAKEY expressions of remorse and asked Judge Shea to impose no additional term of incarceration. Judge Shea noted that the congregation’s victim statement was both “rare and inspiring,” but also stated the need for general deterrence in sentencing HAKEY to a term of imprisonment.
HAKEY, who is released on bond, was ordered to report to prison on August 15, 2016.
This matter was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police and the Meriden Police Department.
Last of 4 defendants in Bossier City casino cash advance theft conspiracy sentencedRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that four men from Illinois were sentenced Thursday for their roles in a wire fraud conspiracy to steal tens of thousands of dollars using Bossier City casino ATMs.
Darus Sutton, 26, of Chicago, Ill., was sentenced to 12 months and one day in prison with 18 months of supervised release; Jamal Campbell, 24, of Maywood, Ill, was sentenced to 30 months in prison with three years of supervised release; Jeremy L. Coleman, 25, of Harvey, Ill., was sentenced to 12 months and one day in prison with three years of supervised release; and Nicholas Coleman, 27, of Harvey, Ill., was sentenced to 12 months and one day in prison with three years of supervised release. Additionally, Campbell was sentenced to a consecutive six-month sentence for one count of identity theft, which was a charge that arose out of a similar scheme in the Northern District of Indiana. All defendants pleaded guilty to one count of conspiracy to commit wire fraud. United States District Judge Elizabeth E. Foote presided over the hearing.
According to the guilty pleas, Sutton, Campbell, Jeremy Coleman, Nicholas Coleman and six other defendants visited the Horseshoe, Diamond Jacks and Harrah’s Louisiana Downs casinos on July 3 and 4 of 2014. The defendants used counterfeit credit cards at ATMs inside the gaming areas to make cash advances. The cards displayed the names of the defendants but the account numbers of actual victims who had their credit card information stolen. The defendants performed 53 cash advances with a total of $61,438.86 stolen.
The other six defendants who previously pleaded guilty to the conspiracy count and have been sentenced are:
Charlie Nicholson, 25, of Melrose Park, Ill., was sentenced on February 12, 2016, to 22 months in prison with three years supervised release;
Ralphael Cassibery, 24, of Chicago, Ill., was sentenced on February 12, 2016, to 24 months in prison with three years supervised release;
Jeremiah J. Scott, 24, of Harvey, Ill., was sentenced on February 12, 2016, to 23 months in prison with three years supervised release;
Ray L. Holmes Jr., 28, of Harvey, Ill., was sentenced on February 19, 2016, to 30 months in prison with three years supervised release;
Tarnasha Harden, 35, of Harvey, Ill., was sentenced on February 19, 2016, to 18 months in prison with three years supervised release; and
Ashley Thomas, 26, of Harvey, Ill., was sentenced on February 19, 2016, to 12 months and one day in prison with three years supervised release.
All defendants must pay $61,438.86 in restitution joint and severally with each other.
The U.S. Secret Service and the Louisiana State Police investigated the case. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Jury Convicts Lockport Contractor of Defrauding City of Chicago’s Women-Owned Business Entity Procurement ProgramRead the Press Release
CHICAGO — A federal jury today convicted a Lockport subcontractor on fraud charges for scheming to help a general contractor falsely satisfy its female hiring requirement on city of Chicago construction projects.
As the owner of a certified Women’s Business Enterprise, ELIZABETH PERINO agreed to allow her company to be claimed as a subcontractor on city projects so that the general contractor could satisfy its requirement to assign a portion of the work to female-owned businesses. Perino falsified paperwork to conceal the fact that her business, Perdel Contracting Co., would perform no actual work on the projects. As a result of Perino’s fraud, Perdel expected to receive payment equivalent to a percentage of the work that Perdel fraudulently claimed to have performed.
Perino, 62, of Willowbrook, was convicted on three counts of wire fraud and one count of mail fraud. The conviction is punishable by a maximum sentence of 80 years in prison.
U.S. District Judge Gary Feinerman will schedule a sentencing hearing at a later date.
A city of Chicago ordinance establishes an overall goal of awarding at least 5% of total annual funding of all city contracts to WBEs. For contracts with values exceeding $10,000, each contractor has to commit a certain percentage of labor to WBEs, either as a joint venture or subcontractor, or by purchasing goods or services from a WBE. In addition to being a WBE, Lockport-based Perdel, which specializes in concrete and carpentry work, also qualified to participate in city projects as a certified Disadvantaged Business Enterprise.
Evidence at the four-day trial revealed that Perino and a co-worker agreed to act as a “pass-through” WBE/DBE on two city projects, meaning that Perdel’s employees would perform no work and Perdel’s equipment would not be used. For one of the projects – at O’Hare International Airport – Perino agreed to place the general contractor’s employees on Perdel’s payroll to perform the work that would be credited to Perdel. Perino also entered into a sham contract to “purchase” street sweepers from the general contractor and title them in Perdel’s name while the general contractor’s workers performed the street sweeping as purported employees of Perdel. Perino and the general contractor further agreed that, at the conclusion of the O’Hare project, the street sweepers would be returned to the general contractor for $1 per machine, and Perdel would receive 18% on top of the labor costs and $20 per hour for the street sweepers.
The conviction was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; Thomas Ullom, Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General in Chicago; James Vanderberg, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and Joseph M. Ferguson, Inspector General for the City of Chicago.
The government is represented by Assistant U.S. Attorneys Megan Cunniff Church and Matthew Kutcher.
Irish Citizen Sentenced on Misuse of Social Security NumberRead the Press Release
BOSTON – Francis J. Moloney, 43, of Marlborough, was sentenced yesterday by U.S. District Court Denise J. Casper to 12 months probation, with the first three months of that period in home confinement, as well as 80 hours of community service. In February, 2016, Moloney pleaded guilty to misuse of a social security number.
On March 20, 2013, Moloney, an Irish citizen living in Massachusetts, fraudulently obtained a driver’s license using the identity and social security number of an Irish national and former permanent legal resident, after that person renounced his legal status in the United States and returned to Ireland.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; David Hall, Special Agent in Charge of the Department of State Diplomatic Security Service; and Scott Antolik, Special Agent in Charge, Social Security Administration, of the Office of Inspector General, Office of Investigations – Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz’s Major Crimes Unit.Howard County Gymnastics Coach Charged in Federal Court with Possessing and Distributing Child PornographyRead the Press Release
Baltimore, Maryland – Howard County gymnastics coach Paul Daniel Bollinger, age 56, of Windsor Mill, Maryland was charged by federal complaint today with possessing and distributing child pornography.
The complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Baltimore County State’s Attorney Scott Shellenberger.
According to the affidavit supporting the complaint, on May 15, 2016, an undercover Baltimore County Police detective downloaded from the internet at least 10 movie files from Bollinger’s IP address that contained child pornography.
On May 25, 2016, investigators executed a state search warrant at Bollinger’s residence and seized a desktop computer, hard drives and other digital media which contained at least 47,130 images and videos of child pornography, child modeling and child erotica. Next to Bollinger’s bed, detectives found over 100 pages of handwritten stories about “P” having sex with young children.
Bollinger was present during the execution of the search warrant and advised that he is a youth gymnastics coach and for over 30 years has coached hundreds of children. Throughout the residence were pictures of young girls in gymnastics leotards.
Bollinger faces a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison for possessing child pornography; and a maximum sentence of 20 years in prison for distributing child pornography. An initial appearance is scheduled for today at 1:30 p.m. before U.S. Magistrate Judge Stephanie A. Gallagher in U.S. District Court in Baltimore.
A complaint is not a finding of guilt. An individual charged by complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, HISI Baltimore and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting the federal case.
Harrisburg Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
HARRISBURG –The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Harrisburg man indicted by a grand jury in Harrisburg in April 2016 on drug trafficking and firearm charges pled guilty on June 16, 2016 before United States District Court Judge William W. Caldwell.
According to United States Attorney Peter Smith, Andre Hairston, age 34, of Harrisburg, pled guilty to a charge of being a convicted felon illegally in possession of four firearms which were also stolen. The charges in the indictment arose out of the arrest of Hairston on July 16, 2015 in Harrisburg when he sold a stolen handgun to a cooperating individual. Another stolen handgun was recovered from Hairston’s car. Further investigation led to the October 23, 2015 search of an apartment in Lower Paxton Township that resulted in the recovery of two other stolen handguns and synthetic marijuana that was packaged for distribution.
The investigation was conducted by the Federal Bureau of Investigations Violent Crimes Task Force, the Harrisburg Police Department, the Pennsylvania State Police, the Lower Paxton Township Police, and the Dauphin County Probation and Parole Office. The case is being prosecuted by Assistant United States Attorney William A. Behe.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. The penalty under federal law for this offense is a mandatory minimum term of imprisonment of 15 years up to a maximum of life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Guam LGBT Community and Supporters Respond to Orlando ShootingRead the Press Release
U.S. Attorney Alicia A.G. Limtiaco, Districts of Guam and the Northern Mariana Islands (NMI), was invited by ISA Guam to the Lighting of the Latte of Freedom in Anigua, held June 16, 2016, in memory of the victims of the Orlando shooting and in support of the LGBT community. U.S. Attorney Limtiaco was also invited to give remarks at the candlelight vigil held later that night at Club Icon in Tumon. ISA Guam is an organization dedicated to supporting and advocating for Lesbian, Gay, Bisexual, and Transgender (LGBT) equality, specifically Guam’s LGBT community and supporters.
The theme for this year’s the Department of Justice (DOJ) LGBT Pride Month Program was “The Struggle for Equality Continues.” Attorney General Loretta E. Lynch at the Annual Justice Department LGBT Pride Month Observance Program, stated, “Every year during Pride Month we take a moment to commemorate the accomplishments of lesbian, gay, bisexual and transgender individuals who have spurred this country to make strides toward the stronger, more equal and more perfect Union that all Americans deserve. We talk about the road we’ve taken, the challenges we’ve faced and the obstacles we’ve overcome. And we look ahead to the journey that still stretches out before us.”
Photo of the Lighting of the Latte of Freedom Photo taken at the Candlelight Vigil in memory of the victims of the Orlando shooting Photo taken at the Candlelight Vigil in memory of the victims of the Orlando shootingGrand Jury Indicts Ohio Man for Sexual Exploitation of ChildrenRead the Press Release
BOISE – Timothy Raymond Schmidt, 34, of Cincinnati, Ohio was indicted June 15, 2016 by a federal grand jury sitting in Boise for two counts of sexual exploitation of a child, U.S. Attorney Wendy J. Olson announced.
The indictment alleges that between January 28, 2015 and April 9, 2015, Schmidt knowingly used, persuaded, induced, enticed or coerced two minor children in Idaho to take part in sexually explicit conduct, for the purpose of producing visual depictions and live visual depictions of that conduct.
Each count of sexual exploitation of a child is punishable by not less than 15, and up to 30 years in prison, a maximum fine of $250,000.00, and at least 5 years up to a lifetime of supervised release.
Schmidt is currently in custody in Fayetteville, Ohio, and is charged by the State of Ohio with one count of rape, and two counts of sexual imposition of a minor. Those charges are unrelated to the investigation in Idaho.
The case is being investigated by the Department of Homeland Security in Boise, Idaho, the Idaho Internet Crimes Against Children Task Force, and the Valley County Sheriff's Office, with assistance from the Department of Homeland Security and U.S. Attorney's Office in the Southern District of Ohio, and the Fayetteville, Ohio Police Department.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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 Loudoun County Sheriff’s Deputy Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – Frank Michael Pearson, 45, a former Loudon County Sheriff’s Deputy from Winchester, was sentenced today to 36 months in prison for embezzling $229,381.01 from the asset forfeiture fund at the Loudon County Sheriff’s Office. Pearson was also ordered to pay $229,381.01 in restitution to the Loudoun County Sheriff’s Office and complete three years of supervised release after he is released from prison.
Pearson was found guilty after a bench trial on March 31. According to court documents, court records and evidence presented at trial, beginning in 2006 Pearson was designated as the deputy responsible for overseeing the asset forfeiture program for the Loudon County Sheriff’s Office. The evidence presented at trial showed that beginning in or about February 2010, and continuing through October 2013, Pearson engaged in a scheme to embezzle and steal money that had been seized by other members of the Loudoun County Sheriff’s Office for potential asset forfeiture. The evidence showed that Pearson embezzled money from 80 separate cases over this period, taking in excess of $229,000 that had been entrusted to him.
The evidence further proved that Pearson concealed his embezzlement scheme by making false statements to his coworkers and others about the timing and fact of whether he had deposited seized money into an escrow account maintained by the Loudoun County Sheriff’s Office at a local bank. For example, the evidence showed that on two separate occasions, Pearson re-used an old deposit slip from an unrelated case and passed it off as a new deposit slip to conceal the fact that he had not deposited all of the money entrusted to him. The evidence further showed that in at least one instance, Pearson took money seized in one case and passed it off as money that had been seized in another case, to hide his ongoing embezzlement. Financial records admitted at trial also showed that Pearson increased his personal cash deposits and cash spending during the more than three-year period of the embezzlement scheme.
The evidence also proved that late on the evening of Oct. 30, 2013, and in the early morning hours of Oct. 31, 2013, after being confronted by his supervisor about the location of missing money that had been entrusted to him, Pearson removed several boxes of money from the narcotics office where he worked, and never returned to work again.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorneys Matthew Burke and Mark D. Lytle prosecuted 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. 1:15-cr-193.
Former Financial Advisor and Securities Broker Admits Stealing More Than $1.2 Million from ClientRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ROBERT N. TRICARICO, 60, of Milford and formerly of Darien, waived his right to indictment and pleaded guilty yesterday in Hartford federal court to one count of wire fraud related to his misappropriation of more than $1.2 million from an elderly client.
Until April 2015, TRICARICO was a registered securities broker with the Financial Industry Regulatory Authority. He was formerly employed or associated with various financial firms, including RNT Wealth Management, Northstar Wealth Partners, LPL Financial, and Wells Fargo Advisors Financial Network.
According to court documents and statements made in court, from January 2010 to June 2013, TRICARICO acted as a financial advisor for an elderly and infirm victim who had substantial assets. TRICARICO misappropriated more than $1.1 million from the victim by writing numerous checks to himself or for his benefit without the victim’s authorization. TRICARICO also liquidated a coin collection belonging to the victim, and he misappropriated checks made payable to the victim. TRICARICO used the stolen funds to make personal expenditures.
In pleading guilty, TRICARICO also admitted that he defrauded two additional victims of $20,000 by falsely representing to them that he would use their investments for a business venture and guaranteed a rate of return. In fact, TRICARICO used the victims’ funds for his own personal use.
As part of his plea, TRICARICO has agreed to pay restitution in the amount of $1,220,763.90 to the victims of his crime.
TRICARICO is scheduled to be sentenced by U.S. District Judge Michael P. Shea on September 20, 2016, at which time he faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Federal Bureau of Investigation and Greenwich Police Department, and prosecuted by Assistant U.S. Attorney David T. Huang.
Florida Man Pleads Guilty to Sex Trafficking and Interstate ProstitutionRead the Press Release
The Justice Department announced today that Abdullah Hamidullah, 42, of Ft. Lauderdale, Florida, pleaded guilty in the U.S. District Court of the Middle District of Florida to one count of sex trafficking by force, fraud or coercion; two counts of enticing a person to travel in interstate commerce for prostitution and one count of interstate transportation for prostitution. On Feb. 10, 2016, a grand jury in the Middle District of Florida returned an indictment charging Hamidullah with five counts of sex trafficking and related violations.
According to admissions in his plea agreement, Hamidullah compelled an 18-year-old woman to prostitute for his profit. After enticing the victim to travel to Florida under false pretenses, he forced her to have sex with multiple customers a day over a period of several months and provide him the proceeds. Hamidullah isolated her in his apartment, took away her money and phone and installed an alarm without providing her the code. He also assaulted her, showed her his handgun and branded her with a tattoo.
“Hamidullah preyed on a vulnerable young woman and cruelly exploited her for his profit,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We will continue to aggressively enforce our human trafficking laws to restore the rights, freedom and dignity of victims of modern-day slavery.”
“Rescuing human trafficking victims and bringing the criminals who enslave them to justice is a top priority for special agents with Homeland Security Investigations,” said Special Agent in Charge Susan L. McCormick of HSI Tampa. “HSI will continue to work with our local, state, federal and international law enforcement partners to identify and prosecute human traffickers.”
“As a multi-agency task force, the Metropolitan Bureau of Investigation participates with its local, state and federal partners to bring human traffickers to justice and seek restoration for victims of this terrible crime,” said Director Ron Stucker of the Metropolitan Bureau of Investigation. “The investigation and prosecution of Abdullah Hamidullah is another example of close cooperation between local and federal authorities to protect the community.”
Hamidullah faces a maximum sentence of life in prison. Sentencing has been scheduled for Sept. 15, 2016. As part of his plea agreement, Hamidullah agreed to pay restitution to six women identified as victims of his sex trafficking scheme.
This case was investigated jointly by the Department of Homeland Security’s Homeland Security Investigations’ Orlando Field Office and Orlando’s Metropolitan Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ilianys Rivera of the Middle District of Florida and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Florida Couple Sentenced to Prison for Involvement in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
A Pembroke Pines, Florida couple was sentenced to prison for their role in a stolen identity tax refund fraud scheme, announced U.S. Attorney Wifredo Ferrer of the Southern District of Florida, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Special Agent in Charge Kelly Jackson of the Internal Revenue Service–Criminal Investigation (IRS-CI).
On June 16, U.S. District Judge Beth Bloom for the Southern District of Florida sentenced Rhonda Perry Gittens, 35, to serve 75 months in prison, followed by three years of supervised release. Gittens’ boyfriend and co-conspirator, Walther Wilson Godfrey, 37, was previously sentenced on April 15 to serve 75 months in prison, followed by three years of supervised release. Judge Bloom also ordered Godfrey and Gittens to pay $792,442 in restitution to the IRS. Godfrey and Gittens pleaded guilty in January to one count of a multi-object conspiracy to defraud the United States, commit wire fraud and commit aggravated identity theft, one count of aggravated identity theft and one count of access device fraud.
U.S. Attorney Ferrer stated: “This sentence should serve as a warning to anyone who seeks to commit tax fraud or identity theft that federal law enforcement resources will be marshalled against them to discover their crimes and bring them to justice. We will continue to work tirelessly with all our law enforcement partners to prosecute those crimes.”
“The sentences imposed by Judge Bloom reflect the serious harm caused by the defendants’ scheme to enrich themselves at the expense of the U.S. Treasury and their identity theft victims,” said Acting Assistant Attorney General Ciraolo. “The defendants attempted to hide behind a veneer of corporate and nominee identities that ultimately provided no bar to the investigative efforts of our law enforcement partners. Return preparers who seek to profit through false tax returns face harsh punishment and the result in this case should deter other individuals from engaging in similar schemes.”
“IRS Criminal Investigation (CI) will continue to investigate those who attempt to defraud our nation’s tax system, and we will continue to fight for the innocent victims whose identities are being used in these stolen identity tax refund fraud schemes,” stated Special Agent in Charge Jackson of IRS-CI. “We are pleased with these sentences, as the defendants are being held accountable for attempting to steal more than $1.5 million from the IRS, possessing device-making equipment for driver’s licenses and credit cards, and recruiting another individual to participate in the crime.”
According to court documents and evidence presented at the sentencing hearing, between July 2009 and August 2014, Godfrey, Gittens and others conspired to defraud the United States by filing false federal income tax returns using stolen identities. Gittens owned and operated 2G, Inc., a tax return preparation business, and G&G Check Cashing Inc., a check cashing business, both of which were located in Pembroke Pines. Godfrey and Gittens obtained the personal identification information of actual individuals, some deceased, including names, social security numbers, addresses and dates of birth, without the individuals’ authorization, to prepare and file false income tax refund claims for the years 2009 through 2011. Godfrey and Gittens recruited a co-conspirator, Marc Brown, to put Electronic Filing Identification Numbers (EFINs) in his name through which fraudulent income tax returns would be filed. In addition, Godfrey and Gittens directed Brown to set up companies and bank accounts in his name to negotiate the fraudulently obtained income tax refund checks. Godfrey and Gittens filed more than 700 fraudulent tax returns requesting more than $1.5 million in income tax refunds. In addition, Godfrey and Gittens possessed device-making equipment including an identification card printer, a credit card embosser, hologram stickers for driver’s licenses and credit cards and blank credit cards.
U.S. Attorney Ferrer and Acting Assistant Attorney General Ciraolo commended special agents of IRS-CI, who investigated the case and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal and State Authorities Arrest 15 Individuals on Federal Drug Trafficking and Money Laundering ChargesRead the Press Release
Federal, state and local authorities have arrested 15 individuals charged in connection with a drug trafficking and money laundering conspiracy occurring in South Texas, Central Texas and Oklahoma.
That announcement was made today by United States Attorney Richard L. Durbin, Jr., Western District of Texas; United States Attorney Kenneth Magidson, Southern District of Texas; Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter, San Antonio Division; and, Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
Those arrested include:
Name Age Residence
Juan Villarreal-Arelis (aka “Juando”) 43 Mission, TX
Reymundo Villarreal-Arelis (aka “Mundo”) 45 Mission
Jose Luis Villarreal-Gonzalez (aka “Nune”) 32 Mission
Manuel Villarreal-Garcia 40 Mission
Sergio Guadalupe Adame-Ochoa 65 McAllen, TX
Norma Leticia Villarreal-Garcia 47 Mission
Iza Corina Flores-Alanis 36 Mission
Jovanna Villarreal-Diaz 37 Mission
Raymundo Villarreal, Jr. (aka “Mundito”) 23 Mission
Gilberto Villarreal-Villarreal 27 Mission
Juan Antonio Villarreal 24 Mission
Jesus Jaime Andrade 37 Mission
Denis Winn 54 Tecumseh, OK
Jose Luis Villarreal-Arelis (aka “El Cosas”) 57 Mission
Nancy Isela Villarreal-Gonzalez 51 MissionA nine–count federal grand jury indictment, returned in San Antonio in April and unsealed today, charges all of the defendants with conspiracy to commit money laundering. According to the indictment, since January 2000, the defendants have conspired to: (1) engage in financial transactions using proceeds derived from the importation, receiving, concealment, buying, and/or selling cocaine; and (2), transport or transmit monetary instruments to locations outside of the United States in an effort to conceal the source, ownership and control of proceeds derived from unlawful activity.
Sergio Guadalupe Adame-Ochoa is also charged with four counts of wire fraud affecting a financial institution. According to the indictment, on multiple occasions beginning in 2006, Adame-Ochoa refinanced an almost $1.7 million note with Texas Regional Bank (formerly Border Capital Bank and McAllen National Bank) for the purchase of a property called Riverside Plaza in Mission. The indictment alleges that Adame-Ochoa falsely represented to the bank that he had a non-taxable annual cash flow income in excess of $500,000.
Raymundo Villarreal, Jr., Jesus Andrade, and Denis Winn are also charged with one count of conspiracy to structure transactions to evade reporting requirements. The indictment alleges that beginning in 2011, the defendants purchased American Quarter Horses from an auction house in Oklahoma using drug proceeds collected in San Antonio. The indictment specifically identifies six occasions in October and November 2011, where payments were made for horses. Each payment was under $10,000 so as to avoid having to complete an IRS form 8300, which would have alerted the IRS and possibly raised suspicion about the source of the funds.
Juan Villarreal-Arelis, Reymundo Villarreal-Arelis, Jose Luis Villarreal-Gonzalez and Manuel Villarreal-Garcia are also charged with one count of possession of cocaine with intent to distribute. The indictment alleges that since January 2000, the defendants have conspired to possess and distribute cocaine.
The indictment also seeks the forfeiture of twelve (12) real estate properties in Cameron and Hidalgo counties with an estimated value of $15 million. The indictment also seeks a money judgment against the defendants in the amount of $30 million representing the alleged proceeds derived from their criminal enterprise.
Throughout this investigation, authorities have seized over 100 kilograms of cocaine. Yesterday, authorities seized approximately $500,000 in farm equipment; approximately 20 vehicles; more than 60 firearms; over 30 horses; and, more than $50,000 in U.S. Currency.
Yesterday, authorities arrested Sergio Adame-Ochoa in San Antonio and Denis Winn in Austin. The rest of the defendants were all arrested in the McAllen/Mission, TX, area. All of the defendants remain in federal custody awaiting detention hearings.
This investigation was conducted by the Internal Revenue Service-Criminal Investigation Waco Treasury Task Force comprised of IRS-CI, Irving Police Department, Woodway Police Department, Texas Department of Public Safety and the McLennan County Sheriff’s Office together with the Drug Enforcement Administration’s McAllen, San Antonio and Houston field offices and Homeland Security Investigations. The United States Marshals Service in both the Western and Southern Districts of Texas assisted with yesterday’s arrests.
Upon conviction, the defendants face sentences of between ten years and life in federal prison on the drug conspiracy charge; up to 20 years in federal prison for the money laundering conspiracy charge; and, up to five years in federal prison on the structuring charge.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Federal Jury Convicts Former Non-Profit Health Clinics CEO for Funneling Millions in Grant Money to Private CompaniesRead the Press Release
BIRMINGHAM – A federal jury today convicted the former chief executive of two non-profit health clinics for the poor and homeless for funneling millions in federal grant money to private companies he formed to contract with the clinics. 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, Special Agent in Charge Derrick L. Jackson announced the verdict.
The jury convicted JONATHAN WADE DUNNING, 52, of Hoover, for conspiracy, bank fraud, wire fraud and money laundering after deliberating about three days following three weeks of testimony before U.S. District Judge Barbara Jacobs Rothstein. Dunning’s sentencing should be scheduled in about 90 days.
The guilty verdicts came on 98 of 112 charged counts related to Dunning’s involvement with Birmingham Health Care, Central Alabama Comprehensive Health in Tuskegee, Birmingham Financial Federal Credit Union, and a group of for-profit businesses known as the “Synergy Entities.” Over the years, BHC and CACH received millions of dollars in federal grant funds through the Health Resources & Services Administration to further their missions of providing healthcare services to underserved populations.
Jurors found Dunning guilty of conspiracy to commit federal program fraud, wire fraud, bank fraud and two kinds of money laundering. They also found him guilty on 62 of 67 counts of wire fraud, two of three counts of bank fraud and 33 of 41 counts of money laundering.
"Dunning relentlessly stole taxpayer dollars that were meant to provide critical medical care to the poor and homeless in Birmingham,” Vance said. “His shameless devotion to purchasing luxury items like a Jaguar for himself, while leaving to suffer the people he committed to serve, is deplorable." Vance said. “My office is committed to prosecuting cases where tax dollars are criminally misused by those the public entrusts to be good stewards. I applaud the commitment of the agents of the FBI, IRS and HHS, and the prosecution team in my office, who all worked long hours to unsnarl the tangle of companies, contracts, real estate and financial dealings that Dunning used in an unsuccessful effort to conceal his criminal conduct.”
“Mr. Dunning took money intended to help the less fortunate in our area and used it for his own personal bank account -- actions that are simply inexcusable and hard to comprehend,” Stanton said. “I am extremely proud of the work on this case, and I want to personally thank the agents and prosecutors for their tireless efforts in bringing Dunning to justice. The public can be assured that the FBI and our law enforcement partners will continue to aggressively pursue those who would violate the public trust.”
“The guilty verdict of Jonathan Dunning is a victory for the American public,” Hyman-Pillot said. “Jonathan Dunning used taxpayer funds from Birmingham Healthcare to enrich himself. As a result, he built his fortune on a foundation of greed and deceit. IRS Criminal Investigation and our law enforcement partners exposed every layer of financial fraud Jonathan Dunning attempted to conceal. Today, justice has been served.”
“The jury's verdict speaks volumes,” Jackson said. “Stealing federal money meant to treat the poor and homeless will not be tolerated. We will continue to work with our law enforcement partners to protect the vulnerable beneficiaries of these taxpayer-funded programs from greed-fueled schemes."
Dunning was the chief executive officer of BHC and CACH for a period of time and left those jobs to run his for-profit businesses. Even after leaving his post as CEO, however, Dunning continued to exercise control over BHC and CACH, according to testimony. Between October 2008 and October 2011, Dunning served as president, board chairman and loan officer of Birmingham Financial Federal Credit Union.
From those various positions, Dunning participated in a conspiracy and executed schemes that defrauded BHC, CACH, and others of substantial resources, including federal funds. Dunning laundered money in a variety of ways to conceal and promote his crimes and to spend the money for himself.
The maximum prison penalty for conspiracy is five years, for wire fraud and money laundering the maximum is 20 years, and for bank fraud, 30 years.
FBI, IRS-CID, and HHS-OIG investigated the case, which Assistant U.S. Attorneys Melissa K. Atwood, Tamarra Matthews-Johnson and John B. Ward are prosecuting.
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Federal Court Bars Florida Man from Preparing Tax Returns for Others and Enters $1 Million Disgoregment JudgmentRead the Press Release
A federal court in Orlando, Florida, has permanently barred a Florida man from preparing tax returns for others and owning or operating a tax return preparation business, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced today.
The court also entered a $1 million judgment against Demetrius Scott of Orlando on the United States’ claim for disgorgement of the proceeds that he received for the preparation of tax returns. The civil injunction and disgorgement judgment were signed by Judge Anne C. Conway of the U.S. District Court for the Middle District of Florida. Scott agreed to entry of the injunction and disgorgement judgment, but did not agree to any of the facts alleged in the United States’ civil complaint.
In September 2014, the United States filed a civil injunction complaint against Scott alleging that he and his employees prepared fraudulent tax returns for customers. Scott was allegedly a former franchisee of LBS Tax Services and operated a tax preparation company called Neighborhood Tax Pros and Tax Giant with locations in Florida, Georgia, North Carolina and South Carolina. The complaint alleged that return preparers in Scott’s business targeted primarily low-income customers with deceptive and misleading advertisements; prepared and filed fraudulent tax returns to fraudulently increase their customers’ refunds; and profited through unconscionable, exorbitant and often undisclosed fees—all at the expense of their customers and the U.S. Treasury. According to the complaint, Scott and his employees prepared federal tax returns on which they falsely claim the earned-income credit and bogus education credits, report improper filing statuses, claim income and expenses related to non-existent businesses and fabricate job-related expenses, while charging their customers deceptive and unconscionable fees.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Family Running Non-Profit Indicted for Conspiracy and Theft of Federal Funds Intended for Needy IndividualsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RICKEY ROBERSON, age 48, his wife ADA CRAIGE-ROBERSON, age 42, and her mother MELANIE DUPLECHAIN, age 69, of New Orleans, were charged today in a three-count Indictment for conspiracy and theft of federal funds.
According to the Indictment, from at least 2009 to the present, ROBERSON, CRAIGE-ROBERSON, and DUPLECHAIN, operated Alternatives Living, Inc., a non-profit that received federal funds from the United States Department of Housing and Urban Development (HUD) in the form of Community Development Block Grants (CDBG). Alternatives Living provided affordable housing to the elderly, families who were homeless, and individuals suffering from mental disabilities. As a condition to receiving federal funds, Alternatives Living agreed to comply with applicable rules and regulations governing the manner and use of the CDBG funds. Applicable program rules, including OMB Circular No. A-122, prohibited the use of CDBG funds for entertainment purposes (i.e., social activities and tickets to shows and sporting events), fundraising, personal tuition costs, and costs of goods or services for personal use. Rules allowed reimbursement for travel costs and conferences only if those costs were related to the mission of the organization and consistent with those costs normally allowed.
Count 1 of the Indictment alleges that prior to in or around January 2009 and continuing through July 2015, ROBERSON, DUPLECHAIN, and CRAIGE-ROBERSON, and others, did knowingly and willfully combine, conspire, confederate, and agree to embezzle, steal or knowingly convert to their own use or the use of another, any money or thing of value of the United States or of any department or agency thereof, in excess of $1,000.
Count 2 alleges that on or about June 20, 2011, ROBERSON willfully and knowingly did steal, purloin, and convert to his own use Community Development Block Grant funds, which were designated for use by Alternatives Living for program related expenses, and which were property of the United States Department of Housing and Urban Development, when he purchased football tickets to see the New Orleans Saints, totaling more than $1,000.
Count 3 of the Indictment alleges that on or about December 29, 2012, CRAIGE-ROBERSON willfully and knowingly did steal, purloin, and convert to her own use Community Development Block Grant funds, which were designated for use by Alternatives Living for program related expenses, and which were property of the United States Department of Housing and Urban Development, when she purchased personal travel expenses on the Royal Caribbean Cruise line, totaling more than $1,000.
If convicted of the conspiracy in Count 1, ROBERSON, CRAIGE-ROBERSON, and DUPLECHAIN face a maximum penalty of five years imprisonment, a maximum fine of $250,000 and a special assessment of $100. If convicted of theft of federal funds in Counts 2 and 3, ROBERSON and CRAIG-ROBERSON respectively face a maximum penalty of ten years imprisonment, a maximum fine of $250,000 and a special assessment of $100.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney praised the work of the Federal Bureau of Investigation, the United States Department of Housing and Urban Development, Office of Inspector General, the Office of State Inspector General, and with the assistance of the Louisiana Legislative Auditor’s Office in investigating this matter. Assistant U.S. Attorney Sharan E. Lieberman is in charge of the prosecution.
Eighth Circuit Court of Appeals Affirms Conviction of Felon in Possession of FirearmRead the Press Release
United States Attorney Randolph J. Seiler announces that the Eighth Circuit Court of Appeals has affirmed the district court in appeal no. 15-2576, United States of America, appellee, v. Cody Allen Nowak, appellant.
Cody Allen Nowak was convicted of being a felon in possession of a firearm. The district court denied his motion to suppress and sentenced Nowak to 27 months of imprisonment and two years of supervised release. Nowak alleged in his appeal that police officers violated his Fourth Amendment rights by searching his backpack without a warrant.
Nowak was a passenger in the front seat of friend Harry Madsen’s car. He had placed his backpack on the floor in front of him. Madsen was pulled over by a Sioux Falls police officer because his license plate tags were expired. While the officer was contacting dispatch, Nowak exited Madsen’s car and ran from the scene.
Madsen gave the officer permission to search the car where the officer found Nowak’s backpack. Madsen told the officer that the backpack belonged to Nowak. Inside the backpack, the officer found a Hi-Point .45 caliber handgun wrapped in a bandana.
Nowak moved to suppress evidence of the firearm alleging that the warrantless search of his backpack was a violation of his Fourth Amendment right to be free of unreasonable searches. The district court found that Nowak had abandoned the backpack and thus had no privacy interest in its contents. Nowak appealed.
In today’s published opinion, the federal court of appeals affirmed the decision of the district court.
Assistant U.S. Attorney Jennifer Mammenga prosecuted the case at trial, and Assistant U.S. Attorney Kevin Koliner handled the appeal for the government.
District Man Sentenced to 18 Years in Prison for Sexually Assaulting Teenage GirlRead the Press Release
WASHINGTON – Craig Allen Lee, 44, formerly of Washington, D.C., was sentenced today to an 18-year prison term for sexually assaulting a teenage girl at an apartment in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Lee, a convicted sex offender, was found guilty in February 2016 of attempted first-degree child sexual abuse, with aggravating circumstances. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Robert E. Morin. Upon completion of his prison term, Lee will be placed on supervised release for the rest of his life. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, the attack took place Sept. 18, 2011, at an apartment that the girl was visiting in Southeast Washington. Sometime in the middle of the night, Lee crept into the bedroom where the victim was sleeping. The victim woke to find Lee rubbing her buttocks as she was on her stomach. He then pulled down her sweat pants and underwear and sexually assaulted her. Two days later, the victim told a counselor and her mother. They called the Metropolitan Police Department (MPD). The girl was taken to Children’s National Medical Center. A thigh swab showed DNA consistent with the defendant’s.
Lee was arrested in 2012 and has been in custody ever since. He was convicted in 1997 of second-degree rape of a 12-year-old girl in Prince George’s County, Md.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department and the U.S. Marshals Service. He also expressed appreciation for the work performed by Children’s National Medical Center and the assistance that was provided by the District of Columbia Department of Forensic Sciences and Bode Technologies.
U.S. Attorney Phillips acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists D’Yvonne Key, Troy Griffith, and Benjamin Kagan-Guthrie; Litigation Technology Supervisor Joshua Ellen; Information Technology Specialists Anisha Bhatia, Aneela Bhatia, William Henderson, and Thomas R. Royal; Investigative Analysts William Hamann, Sharon Johnson, Shannon Alexis, and Zachary McMenamin; Victim/Witness Services Coordinator David Foster; Victim/Witness Advocate Lezlie Richardson; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation, and Assistant U.S. Attorneys Lauren Bates, Sharon Donovan, and Chrisellen Kolb. Finally, he commended Assistant U.S. Attorneys Peter V. Taylor and Kara Traster, who investigated the case, and Assistant U.S. Attorneys Taylor and Sarah McClellan, who prosecuted the matter.
Detroit man pleads guilty to heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Darrin Lawrence Broadnax, 49, of Detroit, Michigan pled guilty to heroin distribution and trafficking today, United States Attorney William J. Ihlenfeld, II, announced.
Broadnax pled guilty to “Distribution of Heroin within 1,000 feet of a Protected Location.” Specifically, Broadnax sold heroin in January 2015 near an elementary school in Monongalia County, West Virginia. Broadnax also admitted to transporting heroin for redistribution and sale across state lines from Michigan to West Virginia. He faces between one and 40 years in prison and a fine not to exceed $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.U.S. Magistrate Judge Michael John Aloi presided.
Daughter of Former Federal Employees Sentenced to Prison for Stealing over $700,000 in Retirement BenefitsRead the Press Release
WASHINGTON – Stephanie Carethers, 47, of Capitol Heights, Md., was sentenced today to 15 months in prison for taking approximately $702,000 in federal retirement pension benefits after her mother’s death, announced U.S. Attorney Channing D. Phillips and Norbert E. Vint, Acting Inspector General for the U.S. Office of Personnel Management (OPM).
Carethers pled guilty in March 2016, in the U.S. District Court for the District of Columbia, to a charge of first-degree theft. She was sentenced by the Honorable Colleen Kollar-Kotelly. Following her prison term, Carethers will be placed on three years of supervised release. She also must pay $668,934 in restitution. Other losses earlier were recovered.
According to a statement of offense submitted at the time of the plea and signed by the defendant, OPM manages pension benefits for retired employees of the U.S. government. The Civil Service Retirement System (CSRS) is a retirement system covering federal employees who entered covered federal service before Jan. 1, 1987. Upon retirement from civil service, the federal employees covered by CSRS become CSRS annuitants and are entitled to CSRS benefits throughout their lifetimes. In addition, a CSRS annuitant has the option to elect a survivor benefit for his/her spouse; if selected, a spousal benefit allows for the annuitant’s surviving spouse to continue to receive a reduced amount of benefits throughout the spouse’s lifetime.
OPM pays retirement annuity benefits to the retired federal government employee only during his/her lifetime; payments cease upon the employee’s death. OPM pays survivor annuity benefits to the annuitant’s spouse only during his/her lifetime; payments cease upon the spouse’s death.
The defendant’s mother worked for the federal government from 1941 to 1986. From 1941 to 1945, she worked for the Executive Office of the President for Emergency Management, and then worked for the U.S. State Department from 1945 to 1986. She died on April 23, 2001. The defendant’s father also worked for the U.S. government until his retirement in June 1986. He died on March 7, 2002, surviving his wife by about one year.
Although Carethers notified Maryland’s Division of Vital Records that her mother died, she did not notify OPM. Unaware of the death, OPM paid approximately $495,967 in retirement annuity benefits from 2001 until March 2010 by way of direct deposits into a SunTrust Bank savings account solely in the name of the defendant’s parents.
Although Carethers likewise notified Maryland’s Division of Vital Records that her father died on March 7, 2002, she did not notify OPM. However, OPM learned of his death and suspended his retirement annuity benefits in July 2002. Carethers subsequently called OPM’s Office of Retirement Programs, identifying herself as the daughter. She requested that survivor annuity benefits application forms be sent to her mother, not disclosing that her mother actually was deceased. She then caused an application to be sent to OPM fraudulently requesting survivor annuity benefits for her mother; the application contained the forged signature of her mother. Because her mother was deceased, she was not eligible for survivor annuity benefits. Based on this application and unaware of the death of the defendant’s mother, OPM paid approximately $206,982 in survivor annuity benefits. These payments were directly deposited into a SunTrust Bank checking account solely in the name of the defendant’s parents.
From 2001 to 2010, Carethers used the fraudulently obtained payments that OPM sent after her mother’s death to buy items and services for herself and others.
In announcing the sentence, U.S. Attorney Phillips and Acting Inspector General Vint expressed appreciation for the work performed by Special Agents and analysts from OPM’s Office of Inspector General. They also acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kaitlyn Krueger and Assistant U.S. Attorney Virginia Cheatham, who prosecuted the case.
Crosby County Man Sentenced to More than 12 Years in Federal Prison on Extortion and Firearms ConvictionsRead the Press Release
LUBBOCK, Texas — Shannon Dale Smith of Crosbyton, Texas, was sentenced today by Senior U.S. District Judge Sam R. Cummings to serve a total of 147 months in federal prison on extortion and firearms convictions, announced U.S. Attorney John Parker of the Northern District of Texas.
Smith, 46, was convicted at trial in March 2016 on one count of possessing firearms in furtherance of a crime of violence, and in January 2015, he pleaded guilty to one count of interstate communications with the intent to extort more than $500,000 from a Crosby County man. Today, Senior Judge Cummings sentenced Smith to 60 months on the firearms conviction and 87 months on the extortion conviction, to run consecutively
On October 29, 2015, Smith possessed three firearms − a Glock .40 caliber semi-automatic pistol, a Rock River Arms .223 caliber semi-automatic rifle, and a Ruger .22 caliber rifle − in furtherance of transmitting communications to Crosbyton resident, Nathan Royce Boardman, threatening to kidnap and injure his wife, his daughters and his granddaughters.
Smith was carrying the Glock, .40 caliber pistol when he went to the drop location to see if Boardman had paid the extortion money. Smith also had the .223 caliber semi-automatic rifle and the .22 caliber rifle in his pickup truck as part of a hunting ruse in case he was stopped by law enforcement.
On Tuesday morning, October 27, 2015, Smith called Boardman and left a message on his answering machine that said: “We are watching you, there is a note on your north door.”
Boardman found the note that stated: “Follow these Instructions and no one will get Hurt. We Have a man watching your daughter. We Have a man watching your Granddaughter. We Have a man watching you and your wife. We are monitering [sic] your home and cell phone. If you call the police, we will know and someone will be taken from you. If you choose not to participate, someone will be taken from you. You have till Thursday at 9pm to put $525,000 in cash and or gold coins in a bag, duffel style. we [sic] will call you with further instructions. We are watching you. Do what you’re told and no one will be Hurt”.
On the morning of October 29, Boardman received another phone call from Smith in which Smith advised him that he had 14 hours left to get the money or else he would see what Boardman’s granddaughter looked like naked and correctly identified Boardman’s granddaughter by her first name. That evening, Smith called and left a message advising they’d better answer the phone or if they didn’t, it would be the last thing they would remember.
At approximately 6:44 p.m. that evening, Smith called Boardman and provided instructions to drop the extortion money. A short time later, Smith called Boardman again to confirm he had the correct instructions and advised Boardman if “we get a GPS tracker or a dye pack, there’ll be hell to pay.”
At approximately 8:55 p.m., that evening, law enforcement officers departed Boardman’s residence using Boardman’s vehicle and proceeded to the location Smith provided and threw a duffel bag in the weeds next to the boiler, as instructed. Law enforcement officers returned to Boardman’s residence in Boardman’s vehicle. Law enforcement identified a 2011 white GMC pickup truck in the area of the drop location, and they identified the two individuals in the truck as Smith and his minor son. At the time of his arrest, Smith had a semi-automatic pistol on his person.
The FBI, Texas Rangers, Texas Department of Public Safety - Criminal Investigations Division, Crosby County Sheriff’s Office and the Crosbyton Police Department investigated the case. Assistant U.S. Attorney Jeffrey Haag was in charge of the prosecution.
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Convicted Felon Sentenced to 100 Months for Illegally Possessing FirearmsRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces that United States District Court Judge Kristi K. DuBose sentenced Robert Brent Goodwin on June 17, 2016 to serve a term of imprisonment of 100 months followed by 3 years of supervised release for illegally possessing four firearms in Bay Minette, Alabama on June 28, 2015 in violation of 18 USC § 922(g)(1). The defendant, who was a convicted felon with an extensive criminal history consisting of three prior felony convictions pled guilty before the Court on March 17, 2016.
This case was investigated by the Federal Bureau of Investigation, and the Fairhope Police Department. The case was prosecuted by Assistant United States Attorney Lawrence J. Bullard for the United States Attorney’s Office for the Southern District of Alabama.
Colombian Man Sentenced More Than 17 Years in Prison for International Cocaine Distribution ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara today sentenced Anderson Bryan Lever (39, Colombia, South America) to 17 years and 6 months in federal prison for conspiring with others to distribute five kilograms or more of cocaine, onboard vessels subject to the jurisdiction of the United States.
According to court documents and information presented at sentencing, between 2009 and 2013, Lever worked with his co-defendant and others to smuggle cocaine. Lever repeatedly dispatched vessels carrying between 550 and 1,000 kilograms of cocaine from San Andres Island, Colombia. On each occasion, He recruited and paid at least four mariners per vessel.
Lever’s co-conspirators received cocaine shipments in Honduras, then provided bales of United States currency (containing as much as $500,000 each) to the mariners who had just smuggled the cocaine. The mariners then smuggled the money back to Lever in Colombia. In total, the mariners successfully smuggled more than 10,000 kilograms of cocaine.
Lever was previously convicted for importing cocaine in Guerrero, Mexico. In September 2001, he was sentenced to more than 13 years’ imprisonment in Mexico, but escaped and fled to Colombia in November 2002. He was arrested in Colombia and subsequently extradited to the United States in November 2015.
This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation, comprised of agents and analysts from the Federal Bureau of Investigation, Homeland Security Investigations, the Drug Enforcement Administration, the United States Coast Guard Investigative Service, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
This case was prosecuted by Assistant United States Attorney Christopher F. Murray. The Department of Justice, Office of International Affairs, assisted with Lever’s extradition.
Collierville Man Sentenced for Defrauding Loan Companies of $121,000Read the Press Release
Memphis, TN – A Collierville man has been sentenced for executing a scheme that defrauded two loan companies of approximately $121,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, Preston E. Byrd, 45, of Collierville, Tennessee, was a real estate developer. Byrd owned multiple businesses, including Horizon Financial Group; Eagles Landing Development; Affordable Rental Housing of Shelby; and Y-Politic.
Between March and May 2014, Byrd fraudulently applied for business loans with two loan companies, Rapid Advance and Windset Capital. He made false statements and submitted false documents to the two companies. Following receipt of the loan proceeds, Byrd engaged in multiple transactions with the fraudulently obtained money.
When Rapid Advance and Windset Capital requested to visit and physically inspect the location of Byrd’s establishments, he had another individual obtain office space for him to use temporarily. Byrd falsely represented the rented space as the headquarters for his establishments.
In March 2016, a federal jury convicted Byrd of three counts of wire fraud and three counts of money laundering.
On Thursday, June 16, 2016, Chief U.S. District Judge Jon P. McCalla sentenced Byrd to 42 months in federal prison. Byrd was also ordered to pay restitution in the amount of $96,237.14, and to forfeit $166,245.14.
This case was investigated by the U.S. Secret Service Economic Crimes Task Force.
Assistant U.S. Attorney Carroll L. Andre III prosecuted this case on the government’s behalf.
Bucks County Settlement Agent Charged with Stealing FundsRead the Press Release
PHILADELPHIA – Alfred Drechsel, 47, of Voorhees, NJ was charged by Information with one count of wire fraud in connection with a scheme that defrauded borrowers and title insurance companies, announced United States Attorney Zane David Memeger.
Drechsel was an owner of Lenders Edge Settlement Services, LLC, (“Lenders Edge”) and Integrity Assurance Inc. (“Integrity Assurance”), located in Feasterville, PA. The information alleges that Drechsel, who was responsible for making the loan disbursements, diverted settlement funds into various Lenders Edge and Integrity Assurance bank accounts and used the diverted loan proceeds to pay off other unrelated mortgages, to pay other business expenses, and for personal expenditures. According to the information, the total amount of mortgages that the defendant failed to pay off as required by the settlement statements was approximately $2,919,186.61.
If convicted, the defendant faces a statutory maximum sentence of 20 years in prison, restitution, a period of supervised release, a $100 special assessment, and a possible fine.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Jennifer Barry.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.