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8 August 2016
Buffalo Woman Sentenced for Conspiracy to Distribute FentanylRead 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 Sherylrica Quisenberry, 34, of Buffalo, NY, who was convicted of conspiracy to distribute fentanyl, was sentenced to 12 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that between May 7, 2013 and September 26, 2013, the defendant conspired with co-defendant Fannie Long to distribute controlled substances. Specifically, while Long was incarcerated on other charges, Quisenberry filled a fentanyl prescription for Long and then sold the fentanyl patches at Long’s direction to a third party. Subsequently, while Long was still in custody, Quisenberry made a medical appointment for Long so that upon Long’s release she would be able to obtain more fentanyl patches to sell.
On other occasions Quisenberry sold hydrocodone pills, alprazolam pills, methodone pills, and crack cocaine to other individuals.
Long was previously convicted and sentenced to 96 months in prison for her role in the conspiracy.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office.Brooke County man sentenced for failing to register as a sex offenderRead the Press Release
WHEELING, WEST VIRGINIA – Christopher Barker, 27, of Follansbee, West Virginia was sentenced to 15 months in prison for failure to register as a sex offender, United States Attorney William J. Ihlenfeld, II, announced.
Barker, who is required to register under the Sex Offender Registration and Notification Act, traveled in interstate commerce from Pennsylvania to West Virginia to take up residence in West Virginia in November 2015. He knowingly failed to register and update his sex offender registration.
Assistant United States Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The United States Marshals Service investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Baltimore Felon Sentenced to over Six Years in Federal Prison for Illegal Possession of a GunRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced John Gilmore, age 41 of Baltimore, today to 77 months in federal prison, followed by three years of supervised release for being a felon in possession of a firearm.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore Police Commissioner Kevin Davis.
“Shortly after serving five years in federal prison for a gun conviction, and while still being supervised by a federal probation officer, John Gilmore returned to the streets of Baltimore with a loaded gun,” said U.S. Attorney Rod J. Rosenstein. “Other criminals should be on notice about the prospect of spending six more years in federal prison for possessing a gun.”
According to his plea agreement, on September 17, 2015, a Baltimore Police officer was in a covert location watching the 1800 block of Edmondson Avenue when he received information that there was a possible armed person in the area. According to the information, the individual was a male carrying a black and red book bag and was armed with a handgun. Shortly after receiving the information, the officer saw a man matching the description and notified officers who were in an unmarked car close by. The individual, later identified as Gilmore, became noticeably nervous and tense when he saw the officers. The officers got out of the car and asked Gilmore what was in the bag. Gilmore stated, “a .38 snub nose.” Officers recovered a black .38 caliber revolver, four live cartridges, and a stun gun from the book bag. Gilmore was arrested.
At the time of his arrest on September 17, 2015, Gilmore was on federal supervised release for a 2011 case in which he was also convicted of being a felon in possession of a firearm. The possession of the gun on September 17, 2015 violated his conditions of release. Judge Bennett today also sentenced Gilmore to two years in federal prison for violating his supervised release. That sentence is to be served concurrent to the 77 months sentence imposed for the 2016 federal gun conviction.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Another New York Man Pleads Guilty to Participating in Fraud SchemeRead the Press Release
ERIE, Pa. – A resident of Brooklyn, New York pleaded guilty in federal court to a charge of conspiracy to commit wire fraud, United States Attorney David J. Hickton announced today.
Olayinka Olurinde, 47, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Olurinde allowed bank accounts in his name and under his control to be used as repositories for fraudulently obtained federal tax refunds. Olurinde would then withdraw the fraudulently obtained refunds, keep a portion for himself and give the remainder of the money to another co-defendant. Olurinde also allowed his address to be used on other bank accounts which were fraudulently opened during the course of the conspiracy. Olurinde further agreed, as part of his guilty plea, to forfeit to the United States $81,000 found in his bedroom during the investigation, which was proceeds of his illegal activity.
Judge Cercone scheduled sentencing for December 8, 2016. The law provides for a maximum total sentence of 20 years in prison, a maximum fine of $250,000 or twice the amount of loss to the victims, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation conducted the investigation that led to the prosecution of Olurinde.
Albuquerque Man Agrees to 12 Year Prison Sentence for Discharging Firearm During Attempted Robbery of RestaurantRead the Press Release
ALBUQUERQUE – Peter Pagan, 23, of Albuquerque, N.M., pled guilty today in federal court to violating the Hobbs Act by attempting to rob an Albuquerque-area fast food restaurant and to discharging a firearm during the attempted robbery. Under the terms of his plea agreement, Pagan will be sentenced to 147 months in federal prison followed by a term of supervised release to be determined by the court.
Pagan was charged by criminal complaint in Oct. 2015, with discharging a firearm while attempting to rob the Blake’s Lotaburger located at 6215 San Antonio Dr. NE in Albuquerque on Jan. 27, 2015. According to the complaint, Pagan entered the restaurant, pointed a firearm at employees, and demanded money. When the employees were unable to open the cash register, Pagan shot a round of ammunition into the ceiling before running out of the restaurant. When a customer attempted to chase him down, Pagan allegedly fired nine rounds into the customer’s vehicle.
Pagan subsequently was indicted on Nov. 17, 2015, and charged with violating the Hobbs Act and discharging a firearm during a crime of violence. According to the indictment, Pagan committed the crimes on Jan. 27, 2015, in Bernalillo County, N.M.
During today’s proceedings, Pagan pled guilty to the indictment. In entering the guilty plea, Pagan admitted that on Jan. 27, 2015, he entered a Blake’s Lotaburger armed with a loaded handgun and demanded money. Pagan further admitted firing a round into the ceiling of the restaurant when employees were unable to open the cash register.
State charges against Pagan were dismissed in favor of federal prosecution. Pagan has been in federal custody since his arrest on the federal complaint and remains detained, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorneys Paul H. Spiers and Rumaldo R. Armijo are prosecuting the case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. In recognition that New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community has come together to is collaborating the initiative is significantly exceed the national average.
5 August 2016
Yakama Man Sentenced to 7 Years Imprisonment for Assualting Law Enforcement OfficersRead the Press Release
Yakima – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Israel Garcia, age 27, of Yakima, Washington, was sentenced today after previously pleading guilty to Assault on Federal Officers. Senior United States District Judge Lonny R. Suko sentenced Garcia to a 84 month term of imprisonment, to be followed by a 3-year term of court supervision upon release from Federal prison. Garcia will likely be deported to Mexico upon his release from Federal prison.
The following was disclosed during the court proceedings. On September 3, 2015, law enforcement officers attempted to arrest a known gang member. The gang member was a convicted felon and associated with the My Crew Kills (MCK) street gang. During a subsequent stand-off, the gang member fired a shot at a law enforcement officer. The gang member was subsequently arrested.
The Eastern Washington Violent Gangs Safe Streets Task Force/Yakima conducted an investigation which targeted members and associates of known violent street gangs. The investigation resulted in the issuance of three federal search warrants. On October 16, 2015, law enforcement officers executed simultaneous search warrants at separate residences. Officers approached the residence of Israel Garcia (aka Lil Gato). Garcia was known to be a convicted felon. Officers knocked on the door of the residence and announced their presence. The officers attempted to enter the residence and heard the sound of a firearm being locked and loaded. During a lengthy stand-off, Garcia threatened to shoot police officers. Garcia later attempted to flee on foot and was apprehended. During the search of his residence, officers discovered two firearms. A special agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF&E”) discovered that the Jesus Arturo Lopez (“Lopez”) had legally purchased both of the firearms found in the residence. Furthermore, law enforcement determined that Lopez had also lawfully purchased the firearm found during the September 3, 2015 incident.
On October 16, 2015, special agents with the ATF&E and Federal Bureau of Investigation (“FBI”) contacted Lopez at his residence. During the interview, Lopez acknowledged that he had legally purchased several firearms for known convicted felons. Lopez advised that he knew that some of his customers had been involved in gang related shootings in the Yakima area. Lopez was charged and pled guilty to Transfer of Firearm to a Felon. On June 9, 2016, Senior United States District Judge Lonny R. Suko sentenced Lopez to a 36 month term of imprisonment, to be followed by a 3-year term of court supervision upon release from Federal prison.
Michael C. Ormsby, U.S. Attorney for the Eastern District of Washington, said, “law enforcement officers continually put their lives on the line to protect the public. The United States Attorney’s Office is committed to aggressively prosecuting individuals who assault law enforcement officers. Furthermore, the United States Attorneys’ Office and our law enforcement partners are committed to combating gang violence and prosecuting those who knowingly arm convicted felons.”
The investigation was completed by the Eastern Washington Violent Gangs Safe Streets Task Force/Yakima, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Yakima Police Department. This case was prosecuted by Tom Hanlon, an Assistant U.S. Attorney for the Eastern District of Washington.
Winter Haven Man Convicted of Assaulting Federal Officers and Drug OffensesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal yesterday today found Altius Willix (47, Winter Haven) guilty of conspiracy, attempted possession of methamphetamine, and assaulting federal officers, inflicting bodily injury. He faces a mandatory minimum penalty of life imprisonment. A sentencing hearing is scheduled for October 28, 2016.
Willix was indicted on May 11, 2016.
According to evidence presented at trial, Willix arranged for four pounds of pure methamphetamine to be mailed from Tempe, Arizona to Winter Haven, Florida. After Willix attempted to retrieve the parcel, three federal agents approached him. Willix fled and ultimately collided with one of the agents, causing him to fall to the ground. Willix continued to resist arrest, as agents attempted to detain him, resulting in their injury. During the struggle, Willix tried to remove holstered firearms from two of those agents. When told to let go, Willix responded, “You’re gonna have to kill me.” Willix was ultimately handcuffed and taken into custody.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Postal Inspection Service, and the Winter Haven Police Department. It is being prosecuted by Assistant United States Attorney Carlton C. Gammons.
Two Individuals Arrested for Firearm ViolationsRead the Press Release
SAN JUAN, Puerto Rico – On August 5, 2016, Julio Rodríguez-Marquez and Josué Méndez-Rivera were charged by way of a criminal complaint with conspiring to engage in the business of dealing in firearms without a license, and with dealing in firearms without a license, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
Throughout the course of the investigation, ATF agents seized four AR-15-variant rifles and a handgun.
Between May and August of 2016, Julio Rodríguez-Marquez arranged various firearms transactions with the assistance of co-conspirator Josué Méndez-Rivera who delivered a rifle to a buyer on two separate occasions. Méndez-Rivera intended to sell another rifle today when he was arrested. ATF agents also arrested Rodríguez-Marquez at his residence, where they executed a search warrant. During the execution of the search warrant, agents found a firearm which Rodríguez-Marquez was not licensed to possess, and materials used to manufacture home-made firearms.
If convicted, the defendants face up to five years in prison and a fine of up to $250,000. A criminal complaint contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Twin Falls Man Pleads Guilty to Transportation and Possession of Child PornographyRead the Press Release
BOISE – Stephen Roy Walker, 43, of Twin Falls, Idaho pleaded guilty yesterday in United States District Court to transportation and possession of child pornography, U.S. Attorney Wendy J. Olson announced. Walker was indicted by a federal grand jury on September 9, 2015.
According to the plea agreement, agents with the Department of Homeland Security served a search warrant at the Old Towne Lodge in Twin Falls, where Walker was living with three minor children, in February of 2014. Agents seized computers and electronic devices pursuant to the warrant, and a subsequent forensic examination of the devices revealed images of child pornography on the devices. In his plea agreement, Walker admitted that he transported 462 digital images and 42 digital videos containing child pornography from Texas to Idaho, and that he possessed the images while living in Idaho. Walker also admitted that 78 of the images containing child pornography, and 4 of the videos, depicted one of the children who was living with him at the Old Towne Lodge. Walker further admitted he took the images while living in Texas. Sentencing is set for November 1, 2016, before Chief U.S. District Judge B. Lynn Winmill.
Transportation of child pornography is punishable by not less than five, and up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life, and a $100 special assessment. Possession of child pornography is punishable by up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life, and a $100 special assessment. As part of his plea, Walker also agreed to forfeit two laptop computers, an external hard drive, and a digital camera used in the commission of the charged offenses.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations and the Twin Falls Police Department, with assistance from the Buhl Police Department, the Idaho State Police, and the Twin Falls County Prosecuting Attorney’s Office. The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Tax Return Preparer Sentenced for Filing False Tax Returns with the IRSRead the Press Release
A tax return preparer was sentenced to 30 months in prison, to be followed by one year of supervised release, and was ordered to pay restitution in the amount of $163,865 for filing false tax returns with the Internal Revenue Service (IRS).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Steve Steinberg, Chief, Aventura Police Department, made the announcement.
Erica Antoinette Hollingsworth, 37, of Opa Locka, previously pled guilty to one count of aiding and assisting tax fraud, in violation of Title 26, United States Code, Sections 7206(2) and 2.
According to court documents, the IRS received information that Hollingsworth prepared a false tax return for an unemployed student claiming a $4,000 refund. Based on this information, an undercover agent (UC) met with Hollingsworth in an office at her house to discuss the filing of a tax return. The UC provided identification and a Form W-2 to Hollingsworth. In exchange, the defendant explained the tax filing process and advised that a refund in the “thousands” was possible.
IRS agents then executed a search warrant at Hollingsworth’s residence, where agents recovered tax returns and a computer. During the investigation, Hollingsworth stated that she was a self-employed tax return preparer and had compiled returns through her current company, EH&S Professional Services, LLC, and previous company, A&E Professional Services. Hollingsworth advised that she learned how to prepare tax returns from another individual, who taught her how to get clients inflated refunds even if they were not entitled to such refunds.
Hollingsworth ultimately admitted to entering false amounts on some of her clients' Form W-2s. Hollingsworth made $60 to $500 for each return that she prepared. Hollingsworth filed approximately thirty-five fraudulent returns that falsely represented that the taxpayer worked for a company, earned wages, and had federal taxes withheld from those wages, even though the taxpayer never actually worked for the company.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Aventura Police Department. The case was prosecuted by Assistant U.S. Attorneys Brooke Watson and John R. Byrne.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. 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.
Sweet Dreams Nurse Anesthesia Group Pays More Than $1 Million to Resolve Kickback AllegationsRead the Press Release
G.F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, and Georgia Attorney General Sam Olens announced today a civil settlement with a series of anesthesia businesses, collectively known as Sweet Dreams Nurse Anesthesia (Sweet Dreams). Sweet Dreams agreed to pay to the United States $1,034,416 and the State of Georgia $12,078.79 to resolve allegations that it violated the False Claims Act and the Georgia False Medicaid Claims Act by paying unlawful kickbacks to health care providers with the intent to induce referrals of Medicare and Medicaid patients.
The settlement marks the end of a 22-month investigation into a number of alleged violations of the Federal Anti-Kickback Statute and Medicaid policies by Sweet Dreams. One alleged scheme resolved by the settlement concerns Sweet Dreams’ provision of free anesthesia drugs to ambulatory surgery centers (ASCs) in exchange for the ASCs granting Sweet Dreams an exclusive contract to provide anesthesia services at those ASCs. A second alleged scheme resolved by the settlement concerns the agreement of an affiliate of Sweet Dreams to fund the construction of an ASC in Marietta, Georgia, in exchange for contracts for Sweet Dreams’ selection as the exclusive anesthesia provider at that facility and a number of other podiatry-based ASCs affiliated with the Marietta ASC.
This investigation began with a lawsuit filed by Adam Nauss under the whistleblower provisions of the False Claims Act and the False Medicaid Claims Act, which allow private citizens to bring civil actions on behalf of the Government and share in any recovery obtained. The case is captioned United States and State of Georgia ex rel. Adam Nauss v. Sweet Dreams Nurse Anesthesia, et al., 5:14-CV-330. Mr. Nauss will receive a share of the settlement payment pursuant to the whistleblower provisions.
Sweet Dreams fully cooperated in the investigation, after which the parties agreed to resolve the allegations made by the United States and certain allegations raised by Relator Nauss on behalf of the State of Georgia. The claims covered by the settlement are allegations only, and there has been no determination of liability.
“The giving of a kickback by one provider to induce referrals from another negatively impacts patient choice and fair competition among providers. For that reason, Medicare and Medicaid prohibit taxpayer money being used to pay for services that arise out of arrangements that violate the Anti-Kickback Statute,” said U.S. Attorney G.F. “Pete” Peterman. “By diligently enforcing the Anti-Kickback Statute in this district, our office protects the integrity of many federal programs and ensures that when a health care provider in Middle Georgia refers a patient to another provider, the referral is based on what is best for the patient rather than the provider’s own self-interest.”
Attorney General Olens said, “Medical decisions, such as the selection of an anesthesia provider, should not be influenced by the payment or receipt of a kickback. My office is committed to protecting the Medicaid program from fraud and abuse and holding Medicaid providers accountable for failing to comply with Medicaid policies and related criminal laws.”
The case was investigated by Special Agent Shawn McAleer of the Department of Health & Human Services, Office of Inspector General and Investigators Enedelia Bostrup and Shaketia Morgan of the United States Attorney’s Office for the Middle District of Georgia.
The United States’ civil settlement was reached by Assistant United States Attorney Todd P. Swanson and Assistant United States Attorney W. Taylor McNeill. The State of Georgia’s civil settlement was reached by Assistant Attorney General Elizabeth White of the Medicaid Fraud Control Unit (MFCU) after an investigation by former employees of the MFCU.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney’s Office at 478-621-2603.
Statement on McDonnell Case from U.S. Attorney Dana J. BoenteRead the Press Release
ALEXANDRIA, Va. – “Although the United States acknowledges that the Supreme Court’s opinion in McDonnell v. United States is equally applicable to Maureen McDonnell’s convictions, Mrs. McDonnell’s convictions have not been vacated. Her defense counsel filed a motion requesting that her case be held in abeyance until August 29, 2016. The United States did not oppose that request, and the United States Court of Appeals for Fourth Circuit granted the unopposed motion to hold the appeal in abeyance. At this time we are thoughtfully determining next steps in both cases.”
State of Connecticut Agrees to Resolve Claims of National Voter Registration Act ViolationsRead the Press Release
WASHINGTON – The Justice Department announced today that it has reached an agreement with Connecticut and state officials to resolve claims that the state failed to provide voter registration opportunities required by Section 5 of the National Voter Registration Act of 1993 (NVRA).
The department’s investigation, conducted by the Civil Rights Division’s Voting Section, found that the state of Connecticut failed to comply with the requirements of Section 5 of the NVRA. Applications and renewals for Connecticut driver’s licenses and identification cards did not serve as applications for voter registration with respect to elections for federal office, as required by the NVRA. In addition, the procedures by which citizens notify motor vehicle authorities that their address changed did not consistently serve as notification of a change of address for voter registration purposes, as the NVRA requires.
Under the terms of the settlement, Connecticut will fully integrate a voter registration opportunity into all applications for driver’s licenses and other identification documents, including renewal applications. Connecticut will also ensure that change of address information submitted for driver’s license purposes will be used to update voters’ address information unless the voter declines to update her voter registration. During the course of negotiations, Connecticut has taken significant steps to achieve this compliance by integrating a voter registration application into its electronic driver licensing system. In order to provide a voter registration opportunity for Connecticut residents who did not have one when last applying for or renewing a driver’s license or other identification document, Connecticut will contact eligible voters who are not currently registered to vote at the address associated with the driver’s license or other identification document.
“A robust, inclusive democracy requires ensuring that eligible voters can easily and conveniently register to vote,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “State officials worked cooperatively with the Justice Department to quickly provide eligible Connecticut voters an integrated one-stop opportunity to register through the DMV, as the law requires.”
“The motor voter provision of the NVRA critically supports and enhances our citizens’ access to the democratic process,” said U.S. Attorney Deirdre M. Daly of the District of Connecticut. “Compliance with those requirements plays an important role in ensuring that all Connecticut citizens can more easily exercise their right to vote. I commend our many state officials from the Department of Motor Vehicles, the Office of the Secretary of the State and the Attorney General’s Office for their hard work in reaching this agreement and for their commitment to the expansion of voting rights in Connecticut. We also thank the Civil Rights Division of the Department of Justice for their partnership and invaluable assistance.”
Section 5 of the NVRA, also known as the “motor voter” provision, requires states to provide voter registration opportunities for federal elections when people apply for or renew driver’s licenses or other identification documents through state motor vehicle offices. The motor voter provision also requires that changes of address for driver’s license or identification document purposes update voter registration information unless the applicant opts out of the update.
More information about the NVRA and other federal voting laws is available on the division’s website at www.justice.gov/crt/about/vot/. Complaints about voter registration practices may be reported to the Civil Rights Division’s Voting Section at 1-800-253-3931.
State of Connecticut Agrees to Resolve Claims of National Voter Registration Act ViolationsRead the Press Release
The Justice Department announced today that it has reached an agreement with Connecticut and state officials to resolve claims that the state failed to provide voter registration opportunities required by Section 5 of the National Voter Registration Act of 1993 (NVRA).
The department’s investigation, conducted by the Civil Rights Division’s Voting Section, found that the state of Connecticut failed to comply with the requirements of Section 5 of the NVRA. Applications and renewals for Connecticut driver’s licenses and identification cards did not serve as applications for voter registration with respect to elections for federal office, as required by the NVRA. In addition, the procedures by which citizens notify motor vehicle authorities that their address changed did not consistently serve as notification of a change of address for voter registration purposes, as the NVRA requires.
Under the terms of the settlement, Connecticut will fully integrate a voter registration opportunity into all applications for driver’s licenses and other identification documents, including renewal applications. Connecticut will also ensure that change of address information submitted for driver’s license purposes will be used to update voters’ address information unless the voter declines to update her voter registration. During the course of negotiations, Connecticut has taken significant steps to achieve this compliance by integrating a voter registration application into its electronic driver licensing system. In order to provide a voter registration opportunity for Connecticut residents who did not have one when last applying for or renewing a driver’s license or other identification document, Connecticut will contact eligible voters who are not currently registered to vote at the address associated with the driver’s license or other identification document.
“A robust, inclusive democracy requires ensuring that eligible voters can easily and conveniently register to vote,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “State officials worked cooperatively with the Justice Department to quickly provide eligible Connecticut voters an integrated one-stop opportunity to register through the DMV, as the law requires.”
“The motor voter provision of the NVRA critically supports and enhances our citizens’ access to the democratic process,” said U.S. Attorney Deirdre M. Daly of the District of Connecticut. “Compliance with those requirements plays an important role in ensuring that all Connecticut citizens can more easily exercise their right to vote. I commend our many state officials from the Department of Motor Vehicles, the Office of the Secretary of the State and the Attorney General’s Office for their hard work in reaching this agreement and for their commitment to the expansion of voting rights in Connecticut. We also thank the Civil Rights Division of the Department of Justice for their partnership and invaluable assistance.”
Section 5 of the NVRA, also known as the “motor voter” provision, requires states to provide voter registration opportunities for federal elections when people apply for or renew driver’s licenses or other identification documents through state motor vehicle offices. The motor voter provision also requires that changes of address for driver’s license or identification document purposes update voter registration information unless the applicant opts out of the update.
More information about the NVRA and other federal voting laws is available on the division’s website at www.justice.gov/crt/about/vot/. Complaints about voter registration practices may be reported to the Civil Rights Division’s Voting Section at 1-800-253-3931.
Connecticut NVRA MOU
St. Joseph Man Sentenced for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine.
Michael Robinson, 35, of St. Joseph, was sentenced by U.S. District Judge Howard F. Sachs to nine years in federal prison without parole.
On May 22, 2014, Robinson pleaded guilty to participating in a conspiracy to distribute methamphetamine and to possessing a firearm during and in relation to a drug-trafficking crime. Robinson is among 20 co-defendants who have pleaded guilty in this case and the 16th co-defendant to be sentenced.
Robinson was arrested by St. Joseph, Mo., police detectives on May 8, 2013, in reference to a shooting investigation. Robinson was in possession of approximately eight grams of methamphetamine, which was recovered from his vehicle. Detectives also found images of what appeared to be large chunks of methamphetamine on Robinson’s cell phone.
According to court documents, detectives interviewed several confidential sources, who stated they had accompanied Robinson to the Argosy Casino in Riverside, Mo., the Legends shopping center and residences in the Kansas City area to pick up multiple-ounce or pound quantities of methamphetamine, which he brought back to St. Joseph for distribution. Some of the sources stated those trips were made on a daily basis.
One confidential source told investigators that Robinson would meet co-defendant Charles Blazer, 46, of St. Joseph, on a daily basis during the summer of 2013; Robinson collected $1,900 for the ounce of methamphetamine previously sold “on front” and provided Blazer with an additional ounce for sale. Blazer was sentenced to six years in federal prison without parole after pleading guilty to his role in the conspiracy.
Also among those to whom Robinson provided methamphetamine for distribution was his brother, Roy Owens, 45, of St. Joseph. Owens was sentenced to 10 years in federal prison without parole after pleading guilty to his role in the conspiracy.
One confidential source told investigators that Robinson had been in a fight with a man over money. The source saw Robinson with a handgun and knew that the man Robinson had been fighting with had been shot.
On July 29, 2013, investigators executed a search warrant at Robinson’s residence and seized digital scales covered in a residue of methamphetamine, multiple plastic bags that contained the same residue, two handguns and ammunition and surveillance cameras that had been installed on the house.
This case is being prosecuted by Assistant U.S. Attorney Bruce A. Rhoades. It was investigated by the Buchanan County Drug Task Force and the Drug Enforcement Administration.
St. Croix Man Sentenced for Robbery and Related OffensesRead the Press Release
St. Croix, USVI – Chief District Court Judge Wilma A. Lewis on August 4, 2016, sentenced Daniel Ramos, 41, to seven years in prison for using and carrying a firearm during and in relation to a crime of violence and 33 months in prison for interference with commerce by robbery, United States Attorney Ronald W. Sharpe announced. The sentences are to be served consecutively. Judge Lewis also sentenced Ramos to two terms of supervised release to be served concurrently, and a special monetary assessment of $200.
Ramos pleaded guilty on January 14, 2016. According to the plea agreement filed with the court, on June 21, 2014, Ramos and his co-defendant, Edigberto Diaz, armed with handguns, entered Quality Foods located at Estate Castle Coakley in St. Croix. They went into an office area, pointed their handguns at two individuals, and demanded that they open the safe. The defendant and co-defendant removed deposit bags containing $24,289.17 in cash and checks from the safe. They also took cellular telephones, a music player, a laptop computer, a checkbook, and backpacks from the victims. Diaz, who carried a loaded Smith & Wesson .40 caliber semiautomatic handgun with an obliterated serial number, was shot at the scene by police. Ramos carried a toy gun and fled the scene. He was recognized on a surveillance video and arrested.
This case was investigated by the Virgin Islands Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
St. Croix Man Pleads Guilty to Unlawful Drug User in Possession of FirearmRead the Press Release
St. Croix, USVI – Dwayne Wesselhoft, 29, pleaded guilty yesterday in federal court on St. Croix to possession of a firearm by an unlawful user of a controlled substance, United States Attorney Ronald W. Sharpe announced.
According to court records, on October 1, 2015, agents from the U.S. Drug Enforcement Administration (DEA) conducted a consent search at Wesselhoft’s residence located at 141 Clifton Hill, St. Croix. The search uncovered a 9mm Luger pistol in the master bedroom which Wesselhoft admitted was his. The agents also found a container with marijuana. Wesselhoft admitted to smoking two marijuana “joints” per day for the past five-six years.
Wesselhoft faces a maximum of 10 years of incarceration and a maximum fine of $250,000. A sentencing date has been set for December 7, 2016.
The case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
St. Croix Man Pleads Guilty to Felon in Possession of FirearmRead the Press Release
St. Croix, USVI – Winston Curtis Venner, 34, pleaded guilty on August 4, 2016, in federal court on St. Croix to felon in possession of a firearm, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement filed with the court, police officers stopped Venner’s vehicle on Rattan Road, St. Croix, Virgin Islands. He was the sole occupant of the vehicle. Officers observed and seized a pistol from inside the vehicle. Venner was previously convicted of assault third degree in 2005 in the Virgin Islands Superior Court.
Venner faces a maximum of 10 years of incarceration and a maximum fine of $250,000. A sentencing date has been set for December 7, 2016.
The case was investigated by the Virgin Islands Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
Salvadoran Man Pleads Guilty to Unlawfully Re-Entering the United StatesRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Manual Antonio Guerra-Nolasco, 36, of Canton Matelapa, El Salvador pled guilty today in U.S. District Court to unlawfully re-entering the United States after having been removed from the country.
According to court records, on May 30, 2016, Guerra-Nolasco was arrested after a traffic stop in Orrington, Maine when a Penobscot Count Deputy Sherriff learned that the pick-up truck he was driving was not registered and that his California driver’s license had been issued in the name of another person. Immigration records revealed that Guerra-Nolasco had been removed from the United States on August 20, 2007.
Guerra-Nolasco faces up to two years in prison and a $250,000 fine. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Department of Homeland Security’s U.S. Border Patrol.
O'Fallon, Missouri Couple Indicted on Bankruptcy Fraud ChargesRead the Press Release
St. Louis, MO – David and Mung Nguyen were indicted on charges involving a bankruptcy scheme and concealing assets.
According to the indictment, David and Mung Nguyen filed for bankruptcy in March 2015. In preparation for the bankruptcy filing, they purchased valuable household goods and furnishings, apparel, handbags and jewelry, and made over $25,000 in credit card cash withdrawals. The indictment states that they failed to list at least $100,000 of these items as assets on the bankruptcy petition. Additionally, after filing the petition for bankruptcy, David Nguyen filed a claim with AAA auto insurance company for damage caused to his 2011 Mercedes, and received payment for the damage. He failed to notify the trustee that he received the payment, and he did not use the money to have the car repaired.
David Nguyen and Mung Nguyen, both of O’Fallon, MO, were indicted by a federal grand jury on July 27 on one felony count each of bankruptcy fraud, making false statements in bankruptcy and concealment of bankruptcy assets. They are expected to appear in federal court this afternoon.
If convicted, each count of the indictment carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
New York City Man Sentenced to 33 Months in Federal Prison for Heroin DealingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on August 2, 2016, David Johnson, 24, of New York City was sentenced to 33 months in federal prison after his guilty plea to charges that he possessed with intent to distribute heroin. U.S. District Court Judge J. Garvan Murtha also ordered that Johnson serve three years of supervised release after his prison term.
According to court records, in the Spring of 2015, the Drug Enforcement Agency (DEA) in Vermont was investigating the distribution of heroin trafficked to Vermont from the New York City area. On June 5, 2015, DEA received information that a load of heroin was being transported to Vermont via automobile. Working with DEA, the South Burlington Police Department ultimately stopped a vehicle in which Johnson was a passenger. Law enforcement officers seized approximately $4,000 in cash from Johnson’s backpack and approximately 4,000 bags of heroin from the vehicle.
For his crime, Johnson faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Johnson serve between 46 and 57 months. The United States asked Judge Murtha to impose a sentence within that range. Johnson requested a sentence of less than 15 months.
In determining that a 33-month overall sentence was appropriate, Judge Murtha considered Johnson’s relatively minimal criminal history, among other factors.
United States Attorney Eric Miller commended the efforts of DEA, the South Burlington Police Department and the other law enforcement agencies involved in this investigation. United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Johnson is represented by Mark Kaplan from the Burlington law firm of Kaplan and Kaplan.
Miami-Dade Resident Sentenced to More than 3 Years in Prison for Using Names and Credit Card Numbers of Other Individuals to Steal $14,610Read the Press Release
A Miami-Dade County resident was sentenced to 39 months in prison, to be followed by three years of supervised release, for using the names and credit card numbers of other individuals to steal $14,610.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Steve Steinberg, Chief, Aventura Police Department, made the announcement.
Leo Philippe Altenor, 26, of Miami Dade-County, previously pled guilty to one count of using one or more unauthorized access devices, in violation of Title 18, United States Code, Sections 1029(a)(2) and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. As part of his plea agreement, Altenor agreed to pay restitution in the amount of $14,610.
According to court documents, this case is part of an investigation into recent fraudulent activity against a federally insured bank. Since June 2015, individuals have stolen over one million dollars from the bank’s accounts in the Southern District of Florida. To accomplish this, individuals use the personal identifying information of victims to take over their bank accounts, and use fraudulent means to obtain the credit cards that are linked to the accounts. The individuals involved in this scheme then utilize ATM machines to withdraw money from the victims' bank accounts using the credit card numbers.
From June to October 2015, Altenor was identified as fraudulently withdrawing over $14,610 from multiple victims’ bank accounts.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Aventura Police Department. The case was prosecuted by Assistant U.S. Attorney Brooke Watson.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. 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.
McAllen Medical Clinic Operator Pleads Guilty in Pill Mill CaseRead the Press Release
DALLAS — Muhammad Faridi, 40, the former owner of the McAllen Medical Clinic, appeared this afternoon before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to a conspiracy charge stemming from his involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Faridi pleaded guilty to a superseding information charging one count of conspiracy to launder monetary instruments. He faces a maximum statutory penalty of 20 years in federal prison and a fine not to exceed $500,000, or twice the value of any property involved in the transaction. Faridi also agrees to forfeit approximately $20,182 in funds seized by the Drug Enforcement Administration. A sentencing date was not set.
According to plea documents filed in his case, beginning in January 2013 and continuing through July 2014, Faridi, who is not a physician, and his co-conspirators, including Dr. Richard Andrews and Ndufola Kigham, a pharmacist, distributed and caused to be distributed at least 150,000 30mg oxycodone pills through the McAllen Medical Clinic in Dallas that he operated with Dr. Andrews. The prescriptions were issued under the name and DEA registration number of co-conspirator Dr. Andrews, the supervising physician at the McAllen Medical Clinic. Faridi knew that none of the prescriptions for the 30mg oxycodone had been issued for a legitimate medical purpose by a medical practitioner.
Faridi and his co-conspirators, including Dr. Andrews, conspired to conduct financial transactions with the proceeds of this drug-trafficking to conceal and disguise the nature, location, source, ownership, or control of those proceeds.
In February 2015, a federal grand jury in Dallas indicted 23 individuals on offenses related to their participation in the prescription drug distribution conspiracy. That indictment alleged that from at least May 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic, to obtain prescriptions to fill those prescriptions at designated pharmacies.
Superseding indictments were returned in December 2015 and in January 2016, and now, a total of 31 individuals have been charged. Many of those defendants have pleaded guilty and are awaiting sentencing. Seven have been sentenced, including two who were sentenced today by Judge Fitzwater: Lashavia Syneice Denson, a/a ‘Shae Denson” and “Shay Denson,” 27, of Houston, and Angela Moore Booth, 49, of Lafayette, Louisiana, were sentenced to 30 months and 41 months, respectfully. There may be additional guilty pleas in the coming weeks; trial for the remainder of the defendants is set for October 24, 2016.
After their arrests in January 2016, Dr. Richard Andrews and Kigham, along with another defendant, pharmacist Kumi Frimpong, were ordered to surrender their DEA registration numbers, preventing Dr. Andrews from issuing prescriptions for controlled substances and Kigham and Frimpong from dispensing controlled substances. Kigham also surrendered her stock of controlled substances that she had at her pharmacy to DEA.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation is being conducted by the Drug Enforcement Administration, with assistance from the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, Internal Revenue Service Criminal Investigation and the Diplomatic Security Service.
Assistant U.S. Attorney Mary Walters is in charge of the prosecution.
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Man from Second Mesa Sentenced to 14 Years for Violent AssaultRead the Press Release
PHOENIX – This week, Johnathan Quavehema, 23, of Second Mesa, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to 14 years of imprisonment. Quavehema had previously pleaded guilty to assault with intent to commit murder.
In October 2015, Quavehema, who is a member of the Hopi Tribe, violently assaulted a female member of the Hopi Community. During the assault, Quavehema restrained the victim from leaving her home and threatened to kill her.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs-Office of Justice Services (Hopi Agency). The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-16-8003-PCT-DJH
RELEASE NUMBER: 2016-059_Quavehema
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Major Cyber-Criminal Extradited from Czech Republic to Face Charges in AtlantaRead the Press Release
ATLANTA - Evgeny Tarasovich Levitskyy, a/k/a Vinchenco, a/k/a Vinch, a/k/a M.U.R.D.E.R.E.R., 31, of Nikolaev, Ukraine, was arraigned today before Catherine M. Salinas, United States Magistrate Judge, on federal charges of conspiracy to commit bank fraud, bank fraud, conspiracy to commit wire fraud, and wire fraud. Levitskyy was indicted by a federal grand jury on October 13, 2015.
“In just one day in 2008, an American credit card processor was hacked in perhaps one of the most sophisticated and organized computer fraud attacks ever conducted. A team of hackers and cashers, stationed in 280 cities around the world, stole over $9 million dollars in 12 hours from 2100 ATMs worldwide,” said U. S. Attorney John Horn. “Our pursuit of the perpetrators of this international scheme has continued for over seven years and demonstrates that we will persevere in seeking justice for international cyber- criminals for as long as it takes.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The arrest and extradition of Evgeny Levitskyy is the result of a multi-national effort led by the FBI, clearly showing the benefits of global cooperation among US and international law enforcement. It demonstrates the FBI’s long-term commitment to identifying and pursuing cyber-criminals world-wide, and serves as a strong deterrent to others targeting America’s financial institutions and citizens. This arrest and extradition also highlights the benefits of forward-deploying FBI cyber special agents to foreign countries, who forge and maintain key relationships to facilitate opportunities such as this. We must continue to impose real costs on criminals who believe they are far enough away to hack into US companies to steal money or intellectual property without consequences. Levitskyy’s arrest and extradition removes a cashing leader from the resources available to the cyber-criminal underground, thereby deteriorating the capabilities of cyber-criminal groups seeking to monetize cyber-attacks.”
Michael Breslin, Special Agent in Charge of the United States Secret Service's Criminal Investigative Division, stated: “Based on our longstanding role in transnational cyber investigations and network intrusions, the Secret Service worked in conjunction with our law enforcement partners to provide critical evidence to further this investigation. Our partnerships in law enforcement, the private sector, and academia are our greatest resources in combatting these sophisticated and complex crimes and today’s arraignment is proof that our strong commitment endures across all borders.”
According to United States Attorney Horn, the charges and other information presented in court: During November 2008, a team of hackers, including Estonian national Sergei Tšurikov and others, obtained unauthorized access into the computer network of RBS WorldPay, what was then the U.S. payment processing division of the Royal Bank of Scotland Group PLC, located in Atlanta, Ga. The group used sophisticated hacking techniques to compromise the data encryption that was used by RBS WorldPay to protect customer data on payroll debit cards. Payroll debit cards are used by various companies to pay their employees. By using a payroll debit card, employees are able to withdraw their regular salaries from an ATM.
Once the encryption on the card processing system was compromised, the hacking ring raised the account limits on compromised accounts to amounts exceeding $1,000,000. The hackers then provided a network of cashers with 44 counterfeit payroll debit cards, which were used to withdraw more than $9 million from over 2,100 ATMs in at least 280 cities worldwide, including cities in the United States, Russia, Ukraine, Estonia, Italy, Hong Kong, Japan, and Canada. The $9 million loss occurred within a span of less than 12 hours.
The hackers then sought to destroy data stored on the card processing network in order to conceal their hacking activity. The cashers were allowed to keep 30 to 50 percent of the stolen funds, but transmitted the bulk of those funds back to Tšurikov and his co-defendants. Upon discovering the unauthorized activity, RBS WorldPay immediately reported the breach, and has substantially assisted in the investigation.
Throughout the duration of the cash out, Tšurikov and another hacker monitored the fraudulent ATM withdrawals in real-time from within the computer systems of RBS WorldPay.
Levitskyy, a Ukrainian national, is alleged to have been responsible for cashing out nearly $500,000 associated with a single hacked debit card number.
The charges in this case carry a maximum sentence of 30 years in prison and a fine of up to $1,000,000 on each count. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
To date, the U.S. Attorney’s Office for the Northern District of Georgia has charged 14 individuals involved in the hack and cash out, including Russian nationals Viktor Pleshchuk, Evgeniy Anikin, and Roman Seleznev; Estonian nationals Sergei Tsurikov, Igor Grudijev, Ronald Tsoi, Eveilyn Tsoi, and Mikhail Jevgenov; Moldovan national Oleg Covelin; Ukrainian nationals Vladimir Valeyrich Tailar and Evgeny Levitskyy; Nigerian national Ezenwa Chukukere; American national Sonya Martin; and Vladislav Horohorin, who is citizen of Russia, Israel, and Ukraine.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and United States Secret Service.
Assistant United States Attorneys Lawrence R. Sommerfeld and Kamal Ghali are prosecuting the case. Assistance was provided by the Justice Department’s Office of International Affairs, the Criminal Division’s Computer Crime and Intellectual Property Section, the Republic of Slovenia’s Ministry of Interior Criminal Police Directorate (“MNZ”), and the Czech Republic’s Policie Ceske Republiky (“PCR”).
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Los Angeles Man Convicted in Federal Court of Distribution of Crack CocaineRead the Press Release
LOS ANGELES – A federal jury has returned guilty verdicts against a Los Angeles burger stand owner who distributed cocaine base in the form of crack cocaine.
Brian Sawyers, 57, of Los Angeles, was found guilty yesterday of two felony offenses of distribution of cocaine base in the form of crack cocaine after selling crack cocaine to a confidential informant working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
According to the evidence presented at the three-day trial, in two separate instances, Sawyers sold 26.9 grams and 70.6 grams of crack cocaine to a ATF confidential informant at his business, B.D. Burgers, in South Los Angeles. In the first transaction, on February 8, 2012, following a series of recorded phone calls in which the informant and defendant discussed the purchase of crack cocaine, Sawyers met the informant at the burger stand, and sold the informant approximately one ounce of crack cocaine for $700. On March 1, 2012, law enforcement officers and the informant conducted a second operation during which the informant went to the burger stand, where he met Sawyers. They then went to Sawyers’ home, where Sawyers sold approximately two-and-a-half ounces of crack cocaine to the informant for $1,700.
“Narcotics trafficking poses a serious threat to the health and safety of our local communities,” said United States Attorney Eileen M. Decker. “Mr. Sawyers chose to conduct his sales of crack cocaine despite having been previously convicted of a federal narcotics offense. As a result of his misguided choices, he shall now be facing a lengthy prison sentence.”
The jury convicted Sawyers after a three-day trial before United States District Judge Ronald S. W. Lew in United States District Court.
After the jury returned its verdicts, Judge Lew scheduled a sentencing hearing on November 1. Sawyers currently faces a five-year mandatory minimum sentence but, at sentencing, he could face a ten-year mandatory minimum sentence due to his prior drug trafficking conviction. Sawyers faces a statutory maximum sentence of life in federal prison.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Los Angeles Police Department, and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorneys Anil J. Antony and Ann C. Kim.
Local Woman Sentenced to Prison for Social Security FraudRead the Press Release
PENSACOLA, FLORIDA – Tanga J. Tarnower, 73, of Navarre, Florida, was sentenced yesterday to 12 months and 1 day in prison and ordered to pay $132,957.70 in restitution to the Social Security Administration after pleading guilty in April 2016 to theft of government money. The sentence was announced today by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Between approximately 1997 and 2014, Tarnower stole Social Security benefits that were being paid in the name of her deceased mother, whose benefits were directly deposited into a joint account they held. When the Social Security Administration was unable to contact Tarnower’s mother, Tarnower was asked to confirm whether her mother was still alive. Tarnower submitted a counterfeit death certificate fraudulently claiming her mother died in January 2014 to hide the fact she had taken and used her deceased mother’s benefits, when in fact, her mother had died in the mid-1990s.
This case resulted from an investigation by the Social Security Administration-Office of Inspector General. Assistant United States Attorney Alicia H. Kim prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Lead Defendant in Methamphetamine Distribution Conspiracy Sentenced to 35 Years in Federal PrisonRead the Press Release
FORT WORTH, Texas — Cleto Tarin, 53, most recently of the Dallas-Fort Worth area, was sentenced today by U.S. District Judge John McBryde to 420 months in federal prison, following his conviction at trial earlier this year on one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Co-conspirator Hector Saldivar, 33, of Wichita Falls, Texas, was convicted on the same offense at trial with Tarin, and is scheduled to be sentenced on September 2, 2016. He faces a statutory penalty of not less than five years or more than 40 years and up to a $5 million fine.
All 14 defendants in the conspiracy, which Tarin led, have been convicted.
Three defendants pleaded guilty to one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. Miguel Antonio Martinez, 32, was sentenced to 232 months and Bobbie Frie, Jr., 31, was sentenced to 340 months. Defendant Marcus Caldwell, 32, is awaiting sentencing; he faces a statutory penalty of not less than five years or more than 40 years and up to a $5 million fine.
Seven defendants pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. David Sheppard, 40, was sentenced to 235 months; Kendra Ward, 28, was sentenced to 220 months; Eric Overstreet, 28, was sentenced to 240 months; and Jonathan Morris, 31, was sentenced to 180 months. Three defendants who pleaded guilty to that offense, Robert Baggott, 45, Cecil Hindman, 51, and Oscar Melanson, 31, are awaiting sentencing; they each face a maximum statutory penalty of 20 years in federal prison and a $1 million fine.
Two defendants, Susan Williams, 29, and Raymondo Acuna, 32, each pleaded guilty to one substantive count of possession with intent to distribute methamphetamine, as charged in superseding informations. Acuna was sentenced today to 200 months in federal prison. Williams is awaiting sentencing and faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wichita Falls Police Department conducted the investigation.
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Lawton Man Sentenced to Two Years in Prison for Using Internet to Send Obscene Communications to a MinorRead the Press Release
Oklahoma City, Oklahoma – CHARLES MICHAEL SEGALOFF (a/k/a "Michael Makai,” "Mike Sage,” "Daddy,” "Papa," and "Master"), age 60, of Lawton, Oklahoma was sentenced yesterday to twenty-four months in federal prison (the statutory maximum prison term allowable for the offense) for sending offensive material to an individual under 18 years of age, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
According to a superseding information, filed on March 31, 2016, Segaloff knowingly used an interactive computer service (Facebook) from January 19, 2015, to December 15, 2015, to send obscene interstate communications to a person under 18 years of age. Specifically, Segaloff sent messages to the victim requesting, suggesting, and proposing that she engage in a sexual, polyamorous, and Bondage, Discipline/Domination, Sadism/Submission, and Masochism (BDSM) relationship in which she would be a submissive and he would be the dominant.
According to the original indictment filed on January 19, 2016, from December 7, 2015, through December 15, 2015, Segaloff traveled from Lawton, Oklahoma, to Greenwich, New York, and returned to Lawton with this female juvenile for the purpose of engaging in illicit sexual conduct and to form a polyamorous family.
On April 1, 2016, Segaloff pled guilty to the superseding information. He stipulated in a plea agreement that he will be required to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA). Segaloff further stipulated that his conduct violated Oklahoma law in that he facilitated, encouraged, offered, and solicited sexual conduct with the minor by use of technology, a violation which subjects him to having to register as a sex offender in the State of Oklahoma.
According to an affidavit accompanying a complaint, Segaloff was previously convicted in the State of Washington for second-degree assault with sexual motivation. The affidavit also stated that Segaloff has published a number of books on BDSM under the alias "Michael Makai" and according to a profile on Amazon.com is "a lifestyle Dominant for 37 years, a behind-the-scenes mentor and educator on BDSM and D/s for decades, and has been active in dozens of fetish lifestyle organizations in Europe and the U.S."
On August 4, 2016, Chief District Judge Joe Heaton sentenced Segaloff to the statutory maximum: 24 months in prison and one year of supervised release. He has been in federal custody since December 22, 2015.
This case is the result of an investigation by the Federal Bureau of Investigation, the Lawton Police Department, and the New York State Police. The case is being prosecuted by Assistant U.S. Attorneys Nicholas J. Patterson and Matthew B. Dillon and Special Assistant U.S. Attorney Mark Stoneman.
Reference is made to public filings for further information.
Jury Finds Hartford Man Guilty of MurderRead the Press Release
United States Attorney Deirdre M. Daly and Chief State’s Attorney Kevin T. Kane today announced that a federal jury in New Haven has found KARL ROYE, also known as “Eagle,” 25, of Hartford, guilty of committing the murder of Anthony Parker of Hartford in April 2011. Yesterday, after a week-long trial before U.S. District Judge Janet Bond Arterton, ROYE was convicted of one count of conspiracy to commit a Violent Crime in Aid of Racketeering and one count of committing a Violent Crime in Aid of Racketeering.
Judge Arterton scheduled sentencing for October 27, 2016, at which time ROYE faces a mandatory life term of imprisonment.
“The U.S. Attorney’s Office is committed to prosecuting dangerous offenders and reducing violent crime in our cities,” said U.S. Attorney Daly. “We know that shootings and murders in our cities are committed by a very small number of city residents. This murder, like so many that we have seen before, was the result of a conflict and perceived threat between members of rival groups. We will continue to focus our attention on these groups until the shootings and murders stop. I commend the FBI Task Force, DEA and Hartford Police Department for their excellent investigative work in bringing to justice those responsible for this murder. I also want to thank our partners in the Chief State’s Attorney’s Office for their unceasing efforts in solving this and many other cold case murders.”
“This case again demonstrates that the dedication of the U.S. Attorney’s Office, FBI, DEA, Hartford Police Department and the Cold Case Bureau of the Chief State’s Attorney’s Office can bring some measure of satisfaction to families who have suffered so grievously at the hands of violent criminals,” said Chief State’s Attorney Kane. “I want to thank federal authorities for their continuing efforts in combating the violence that plagues our most vulnerable citizens.”
This matter stems from a long-term investigation being conducted by the FBI’s Northern Connecticut Violent Crimes Task Force, DEA and Hartford Police Department into narcotics trafficking by members and associates of the Westhell and Team Grease groups and group-related violent activity. The Cold Case Unit of the Office of the Chief State’s Attorney is actively participating in the investigation.
At approximately 10:47 a.m. on the morning of April 6, 2011, the Hartford Police Department received a report of shots fired in the vicinity of 15 Thomaston Street in the Blue Hills Section of Hartford. Officers responding to the scene located Anthony Parker, also known as “Smooth,” 24, seated in the driver’s seat of a vehicle in the driveway of 15 Thomaston Street. Parker was unconscious and suffering from multiple gunshot wounds. Parker was transported by ambulance to Saint Francis Hospital where he ultimately succumbed to his injuries and was pronounced deceased.
ROYE and Jimel Frank, also known as “30” and “Velly,” were members of the Wall Street group, which later became generally known as “Team Grease.” According to trial testimony and the evidence presented during the trial, ROYE and Frank, who were both armed with 9mm handguns, opened fire on Parker from opposite sides of the vehicle in which he was seated.
Frank pleaded guilty on November 12, 2015, and awaits sentencing.
The homicide of Anthony “Smooth” Parker was included in cold case playing cards sold to inmates in Connecticut’s state correctional facilities. Each card in the deck features a photograph and brief details about a homicide or missing person case and lists telephone, mail and e-mail contacts that inmates can use to supply information.
This investigation has been conducted by the FBI’s Northern Connecticut Violent Crimes Task Force, DEA, Hartford Police Department and Cold Case Unit of the Office of the Chief State’s Attorney. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The case is being prosecuted by Assistant U.S. Attorney John H. Durham and Assistant State’s Attorney Andrew Reed Durham, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.
Judge Sentences Philadelphia Man Who Used Twitter and Facebook for Bank Fraud and Identity TheftRead the Press Release
PHILADELPHIA - Aaron Dashawn Caple, 23, of Philadelphia, Pennsylvania, was sentenced today by United States District Judge Eduardo C. Robreno to 54 months in federal prison following Caple’s convictions of bank fraud and aggravated identity theft offenses, announced United States Attorney Zane David Memeger.
Caple pled guilty on April 13, 2016 and admitted to using social media services Twitter and Facebook to solicit persons to provide him with their bank ATM cards and PIN numbers so that he could deposit bad checks into their accounts and withdraw the funds before the banks and other financial institutions realized that the checks were bad. Caple went to numerous ATM machines in Philadelphia and the surrounding area to make the deposits and withdrawals, and also used the ATM cards and PIN numbers at various stores, including Walmart, to purchase goods and obtain cash back prior to the banks discovering that the checks were bad. Caple received more than $47,000 as a result of the scheme. In addition to the prison term, he was ordered to pay restitution of $47,000.25 and must serve five years of supervised release.
The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Irving, Texas, Man Sentenced to 180 Months in Federal Prison for Producing Child PornographyRead the Press Release
DALLAS — Darryn Webb, 20, of Irving, Texas, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 180 months in federal prison, following his guilty plea in February 2016 to an indictment charging one count of production of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Webb has been in custody since late September 2015 after his arrest on a related federal criminal complaint.
According to documents filed in the case, on approximately March 23, 2015, Webb persuaded Jane Doe, who at the time was five-years-old, to engage in sexually explicit conduct so that he could photograph her. Webb used a Nikon Cool Pix L30 Camera to produce these images of child pornography at his residence.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
The FBI’s Dallas Child Exploitation Task Force conducted the investigation. Assistant U.S. Attorney Cara Pierce prosecuted the case.
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Indictment Charges New Jersey Man in Center City Philadelphia Bank RobberiesRead the Press Release
Steven Rice, 41, of Barrington, NJ, was charged by Indictment, filed August 4, 2016, with four counts of bank robbery, announced United States Attorney Zane David Memeger. The indictment specifically charges that Rice robbed or attempting to rob: (i) the Beneficial Bank, 1600 Chestnut Street, Philadelphia, PA on July 27, 2015; (ii) the Republic Bank, 1601 Walnut Street, Philadelphia, PA, on October 7, 2015; (iii) the Firstrust Bank, 1515 Market Street, Philadelphia, PA on March 18, 2016; and (iv) the Wells Fargo Bank, 2005 Market Street, Philadelphia, PA, on June 30, 2016.
If convicted, Rice faces a maximum possible sentence of 80 years imprisonment.
The case was investigated by the Federal Bureau of Investigation and Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Paul G. Shapiro.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Government dismisses charges against sheriffRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that the U.S. Attorney’s Office has filed a motion to dismiss the pending indictment in United States v. Larry C. Deen and Clifton and Clinton Blakey, a former sheriff and used car dealers. The defendants were indicted for criminal conspiracy and federal program theft. United States District Judge Elizabeth E. Foote will rule on the motion.
The trial date was set for August 15, 2016. On June 16, 2016, as the Government was preparing for the trial, a key Government witness died unexpectedly. The Government reassessed the remaining admissible evidence in the case and made a determination that there was sufficient proof to proceed to trial. However, on August 4, 2016, a second key Government witness retracted previous statements made during the course of the investigation. In light of the witness developments, the Government believes that its ability to prove its case beyond a reasonable doubt has been seriously jeopardized.
United States Attorney Stephanie Finley stated: “I have authorized the prosecutors in this case to seek dismissal of the pending charges based on evidentiary developments in this case. The untimely death of a significant government witness and the change of testimony by a second witness has called into question our ability to prove this case beyond a reasonable doubt. I am mindful of our obligation to continually assess the evidence in our possession in light of our burden of proof, and to ensure that the interests of justice are met.”
Former Weymouth Woman Indicted for Bank Fraud and Aggravated Identity TheftRead the Press Release
BOSTON – A former Weymouth woman was charged yesterday in U.S. District Court in Boston in connection with a scheme to withdraw cash from bank accounts.
Sophiah Acloque, 33, was indicted on three counts of bank fraud, three counts of aggravated identity theft and one count of theft of public mail. In June 2016, Acloque was charged by criminal complaint.
According to court documents, in December 2015, Bank of America contacted federal investigators after detecting a fraudulent debit card scheme. It is alleged that an individual(s) posed as bank customers living in Massachusetts and called Bank of America to request that new debit cards and PIN numbers be mailed to the residence of the account holder. It is also alleged that the newly issued cards were stolen from the mail and used to withdraw cash unbeknownst to the bank customers.
On Jan. 25, 2016, law enforcement identified Acloque as a participant in the debit card scheme when she was observed taking mail from the mail box of a Cambridge resident. The resident had not ordered a new card but had been advised by Bank of America that one had been ordered and was expected to arrive around January 25. A subsequent search of Acloque’s car revealed mail addressed to the Cambridge resident, including a Bank of America envelope containing an ATM card and a second envelope containing a PIN.
The indictment charges Acloque with the fraudulent use of Bank of America ATM cards to withdraw cash belonging to three account holders residing in Cambridge, Stoughton and Milton and with stealing mail, including an ATM card and PIN number, from the mail box of the Cambridge resident mentioned above.
The charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release and a fine of $1 million. The charge of aggravated identity theft provides a mandatory sentence of two years in prison. The charge of theft of public mail provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service made the announcement. The case is being prosecuted by Assistant U.S. Attorney Giselle J. Joffre of Ortiz’s Major Crimes Unit.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Former Opa Locka City Officials Charged in Corruption SchemeRead the Press Release
Former Opa Locka City Manager David Chiverton and former Opa Locka Assistant Public Works Director Gregory Harris have been charged for their participation in a two-year long bribery and extortion under color of official right conspiracy, in violation of Title 18, United States Code, Sections 371, 666(a)(1)(B), and 1951(a).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Chiverton is charged by Information with conspiring with an unnamed Opa Locka elected official (“Public Official A”), former Opa Locka Assistant Public Works Director Gregory Harris, and others to use their official positions and authority with the City of Opa Locka to solicit, demand, and obtain thousands of dollars in illegal cash payments from businesses and individuals in exchange for taking official actions to assist and benefit those businesses and individuals in their dealings with the City of Opa Locka. The case against Chiverton is assigned to United States District Judge Cecilia M. Altonaga, Case No. 16-20596-CR. Chiverton is scheduled for an initial appearance before United States Judge John J. O’Sullivan on August 8, 2016 at 1:30 p.m.
As alleged in the Information, in exchange for the illegal payments, Public Official A would direct Chiverton, Harris, and other City of Opa Locka employees to assist the paying businesses and individuals by issuing occupational licenses; waiving, removing, and settling code enforcement matters and liens; initiating, restoring and continuing water service; and assisting with zoning issues. Public Official A would pay Chiverton, and also would tell the businesses and individuals to pay Chiverton directly in exchange for these official actions. Chiverton is also alleged to have directly and indirectly solicited and obtained illegal cash payments in exchange for official actions assisting businesses and individuals with the same types of issues as described above.
Earlier today, former Opa Locka Assistant Public Works Director Gregory Harris made his initial appearance on a separate Information. The case against Harris is assigned to United States District Judge Beth Bloom, Case No. 16-20589-CR.
In that separate Information, Harris is alleged to have participated in the Public Works Department aspects of the broader conspiracy set out in the Information filed against Chiverton. In particular, the Information filed against Harris alleges that both Public Official A and Chiverton would direct Harris to take actions such as restoring water service to businesses which had paid them illegal bribes. The Information alleges that Harris also obtained illegal payments in exchange for using his official position to assist those businesses and individuals by taking official actions including stopping the shutdown of water service, and directing that their water service be turned back on.
If convicted, Chiverton and Harris each face a maximum statutory sentence of five years’ imprisonment, a fine of $250,000 and three years of supervised release.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force This case is being prosecuted by Senior Litigation Counsel Edward Stamm.
An Information is merely an allegation and every defendant is presumed innocent unless and until proven guilty in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. 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.
Former L.A. County Sheriff Lee Baca Indicted by Federal Grand Jury on Three CountsRead the Press Release
LOS ANGELES – A federal grand jury today indicted former Los Angeles County Sheriff Lee Baca on federal charges alleging that he conspired to obstruct justice, obstructed justice, and lied to the federal government.
The case against Baca is the result of an investigation by the Federal Bureau of Investigation, and is one in a series of cases resulting from an investigation into corruption and civil rights abuses at county jail facilities in downtown Los Angeles. As a result of the investigation, 20 current or former members of the Los Angeles Sheriff’s Department were convicted of federal charges.
Baca, 74, of San Marino, California, was charged today in a three-count superseding indictment, with one count of conspiracy to obstruct a federal grand jury investigation, one count of obstruction of justice, and one count of making false statements.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The conspiracy charge carries a maximum term of five years in prison, the obstruction of justice carries a maximum term of 10 years in prison and the charge of making a false statement carries a maximum term of five years in prison. If convicted on all counts, the total maximum Baca faces is 20 years in federal prison.
Baca is expected to be arraigned on the superseding indictment at a later date in United States District Court in Los Angeles.
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Brandon Fox, Chief of the Public Corruption and Civil Rights Section; Assistant United States Attorney Lizabeth A. Rhodes, Chief of the General Crimes Section; and Assistant United States Attorney Eddie A. Jauregui of the General Crimes Section.
Former Homer, Louisiana, Police Officer Pleads Guilty to Civil Rights ViolationRead the Press Release
Former Officer Willie Fred Knowles, 66, of the Homer, Louisiana, Police Department pleaded guilty today to violating the civil rights of a woman identified only as K.M., announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Stephanie A. Finley of the Western District of Louisiana. Knowles also pleaded guilty to making false statements about the incident to the FBI.
According to the plea agreement, Knowles admitted that, on Oct. 29, 2012, he got into a verbal argument with K.M., who was not under arrest at the time, while he was on duty. He further admitted that during the argument, he pushed her down and struck her face and body without justification. Knowles also admitted that he falsely told FBI agents that the woman started the incident by grabbing him and jumping on his back, and that he never hit her. However, Knowles acknowledged that, in fact, he had started the physical altercation when he pushed the woman down and struck her.
“Without any legitimate reason or cause, this officer chose to use violent force against the victim and then lie to try to cover up his crime,” said Principal Deputy Assistant Attorney General Gupta. “Whenever law enforcements officers break the law they take an oath to uphold, they violate the public trust and threaten the reputation of their colleagues who wear the badge and perform their jobs with honor and distinction.”
“This officer’s actions tarnish the reputations and standards upheld by thousands who work in law enforcement across our nation,” said U.S. Attorney Finley. “Our office will continue to make civil rights cases a priority.”
Knowles will be sentenced on Nov. 9, 2016. At sentencing, Knowles faces a maximum sentence of five years in jail for making false statements to the FBI and one year in prison for the civil rights charge.
This case was investigated by the FBI. The case was referred to the FBI by the Louisiana State Police. The case is being prosecuted by Trial Attorney Christine M. Siscaretti of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Mary J. Mudrick of the Western District of Louisiana.
Former Homer police officer pleads guilty to civil rights violationsRead the Press Release
SHREVEPORT, La. – Former Officer Willie Fred Knowles, 66, of the Homer Police Department pleaded guilty today to violating the civil rights of a woman identified only as K.M., announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Stephanie A. Finley of the Western District of Louisiana. Knowles also pleaded guilty to making false statements about the incident to the FBI.
According to the plea agreement, Knowles admitted that, on October 29, 2012, he got into a verbal argument with K.M., who was not under arrest at the time, while he was on duty. He further admitted that during the argument, he pushed her down and struck her face and body without justification. Knowles also admitted that he falsely told FBI agents that the woman started the incident by grabbing him and jumping on his back, and that he never hit her. However, Knowles acknowledged that, in fact, he had started the physical altercation when he pushed the woman down and struck her.
“Without any legitimate reason or cause, this officer chose to use violent force against the victim and then lie to try to cover up his crime,” said Principal Deputy Assistant Attorney General Gupta. “Whenever law enforcements officers break the law they take an oath to uphold, they violate the public trust and threaten the reputation of their colleagues who wear the badge and perform their jobs with honor and distinction.”
“This officer’s actions tarnish the reputations and standards upheld by thousands who work in law enforcement across our nation,” said U.S. Attorney Finley. “Our office will continue to make civil rights cases a priority.”
Knowles will be sentenced on Nov. 9, 2016. At sentencing, Knowles faces a maximum sentence of five years in jail for making false statements to the FBI and one year in prison for the civil rights charge.
This case was investigated by the FBI. The case was referred to the FBI by the Louisiana State Police. The case is being prosecuted by Trial Attorney Christine M. Siscaretti of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Mary J. Mudrick of the Western District of Louisiana.
Former Fairfield PD Custodian Arrested on Federal Firearms ChargesRead the Press Release
BIRMINGHAM – Federal agents on Thursday arrested a former Fairfield Police Department custodian on federal firearms charges returned by a grand jury on July 26, announced U.S. Attorney Joyce White Vance and Alcohol, Tobacco, Firearms and Explosives Assistant Special Agent in Charge David Hyche.
A two-count federal indictment charges ROY ELLIS HUNTER, 70, of Fairfield, as a convicted felon in illegal possession of nearly 50 firearms, mostly handguns. The federal indictment was unsealed following his arrest Thursday. Hunter was arraigned today before a federal magistrate judge and released on bond. He was arrested on state firearms charges in July 2015 following a joint ATF and Alabama Law Enforcement Agency raid at his home. Hunter was working as the police department custodian in Fairfield at the time. He was released on a state bond pending those charges.
“Taking a convicted felon in control of a cache of firearms off the streets is the kind of law enforcement work that greatly reduces the threat of violence in our communities,” Vance said. “We should all appreciate the collaborative work of ATF and ALEA agents in investigating this case and bringing it forward for prosecution.”
“Putting a stop to this flow of confiscated firearms into the community, no doubt, has had an effect on crime in the area,” Hyche said. “Firearms that had been used in crimes and recovered by police getting back into the hands of a convicted felon who was selling them had to be stopped as fast as possible. Stolen firearms in the hands of violent criminals are an enormous problem for us in Alabama and nationally, so we aggressively work these cases with our law enforcement partners,” he said.
According to the indictment, Hunter was convicted on federal racketeering and cocaine distribution charges in 1984 and on federal counterfeiting charges in 1983. Count one of the indictment charges Hunter with being a convicted felon in possession of four handguns on June 4, 2015. Count two charges him as a convicted felon in possession of 42 firearms – 39 handguns, one rifle, one shotgun and a trigger group – on July 8, 2015.
The indictment seeks to have Hunter forfeit those 46 firearms, plus five others, to the government.
The maximum penalty for the charge of felon in possession of a firearm is 10 years in prison and a $250,000 fine.
ATF investigated the case, which Assistant U.S. Attorney Michael A. Royster is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty
Former FBI Assistant Special Agent in Charge Sentenced for Perjury and Obstruction of Justice During Bulger TrialRead the Press Release
BOSTON – A former Assistant Special Agent in Charge (ASAC) of the FBI’s Boston Office was sentenced today in U.S. District Court in Boston in connection with perjury and obstruction of justice regarding his testimony at the 2013 trial of James “Whitey” Bulger.
Robert Fitzpatrick, 76, of Charlestown, R.I., was sentenced by U.S. District Court Judge F. Dennis Saylor, IV to 24 months of probation and a fine of $12,500. In May 2016, Fitzpatrick pleaded guilty to six counts of perjury and six counts of obstruction of justice.
Fitzpatrick, in his capacity as ASAC of the Boston Division, had overall supervisory responsibility of the organized crime program in Boston between 1981 and 1986—a time period in which Bulger, while an active FBI informant, was involved in eight murders.
Fitzpatrick, who is the author of Betrayal, Whitey Bulger and the FBI Agent Who Fought To Bring Him Down, was called to testify at the Bulger trial on July 29 and July 30, 2013. In pleading guilty, Fitzpatrick admitted that he lied when he testified at Bulger’s trial that he tried to end Bulger’s relationship with the FBI and target Bulger for prosecution but was overruled by higher authorities in the FBI.
Specifically, Fitzpatrick admitted that contrary to his sworn testimony at the Bulger trial:
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his assignment to Boston in 1980 as ASAC was not a special mission ordered by the Assistant Director of the FBI because there were problems in the office, but rather a routine reassignment;
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Bulger never said, “I’m not an informant” or otherwise denied being an informant when he met with Fitzpatrick;
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Fitzpatrick never tried to close Bulger as an FBI informant;
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Fitzpatrick was demoted from ASAC because he falsified official FBI reports in connection with a shooting incident, not because he reported corruption;
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Fitzpatrick did not arrest mob boss Gennaro Angiulo; and
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Fitzpatrick did not find or recover the rifle James Earl Ray used to assassinate Dr. Martin Luther King, Jr. at the Lorraine Motel in Memphis, TN in 1968.
United States Attorney Carmen M. Ortiz and Ronald G. Gardella, Special Agent in Charge of the Department of Justice, Office of Inspector General, New York Field Office, made the announcement today. This case was prosecuted by Assistant U.S. Attorneys Zachary R. Hafer and Fred M. Wyshak of Ortiz’s Public Corruption and Special Prosecutions Unit.
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Former Executive Director of Canadian County Charity for Children Pleads Guilty to EmbezzlementRead the Press Release
Oklahoma City, Oklahoma –TRACI LORRE OWENS, 47, of Edmond, Oklahoma, today entered a guilty plea to embezzlement from a Canadian County charity for child crime victims, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
According to the superseding information, Owens was the Interim Executive Director and then the Executive Director of Canadian County Court Appointed Special Advocates ("CASA") from about November 2010 until July 2013. Canadian County CASA is an organization that received at least $10,000 in federal monetary assistance annually from the United States Department of Justice to support child victims of crime. Owens was charged with making and depositing checks payable to herself and to cash, including duplicate payroll checks. Owens pleaded guilty to embezzling and stealing money from Canadian County CASA.
At sentencing, Owens faces a maximum penalty of ten years in prison, a fine of up to $250,000, and mandatory restitution. The United States also seeks forfeiture from Owens. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by the Department of Justice, Office of Inspector General, with assistance from the Canadian County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys K. McKenzie Anderson and Scott E. Williams.
Reference is made to court filings for further information.
Florida Man Sentenced in New Mexico for Defrauding Social Security AdministrationRead the Press Release
ALBUQUERQUE – Joe Pat McFarlin, 68, of Fountain, Fla., pled guilty last week to social security fraud in federal court in Albuquerque, N.M. Immediately after entering his guilty plea, McFarlin was sentenced to five years of probation and ordered to pay $342,475.08 in restitution to the Social Security Administration (SSA) and U.S. Department of Veterans Affairs (VA).
McFarlin was charged by a felony information on Aug. 21, 2015, with defrauding the SSA. The information alleged that McFarlin failed to disclose the fact that he was gainfully employed to the SSA in order to obtain social security benefits to which he was not entitled. The information alleged that McFarlin committed the crime in Valencia County, N.M., in May 2012.
On July 26, 2016, McFarlin entered a guilty plea to the information, and admitted that in May 2012, he sent a work activity report to the SSA, which failed to disclose the fact that he was working for the Franken Oil Company and its subsidiary AB Tire Company. McFarlin admitted that he concealed the fact that he was being paid in order to increase the amount the SSA paid him in disability benefits.
In his plea agreement, McFarlin agreed to the entry of an order requiring him to pay $154,046.40 in restitution to the SSA. McFarlin also agreed to the entry of an order requiring him to pay $188,428.68 in restitution to the VA.
This case was investigated by the SSA, Office of the Inspector General and the VA, Office of the Inspector General. Assistant U.S. Attorney Paul Mysliwiec prosecuted the case.
Florida Man Pleads Guilty to Credit Card Fraud and Aggravated Identity TheftRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Ariel Perez-Calvo, 28, of Miami, Florida, pleaded guilty today in U.S. District Court to access device fraud and aggravated identity theft.
Court records show that between January 7 and January 13, 2016, Perez-Calvo and Roberto Lueje-Rodriguez used debit and credit card account numbers belonging to Maine bank customers located in Penobscot, Knox, Hancock, Piscataquis, Franklin, Somerset, Kennebec, and Androscoggin counties, to make unauthorized purchases totaling more than $50,000. The defendant engaged in similar conduct in Manchester and Concord, New Hampshire in November 2015 when he used debit and credit card account numbers belonging to New Hampshire bank customers to make unauthorized purchases totaling more than $1,000.
The name embossed on each fake card was “David Cuan,” which was not the name of any of the victims. Each fake card bore a unique account number and appeared to be an authentic debit or credit card, but their magnetic strips were encoded with the true account numbers of the victims.
The defendant faces up to 10 years in prison and a $250,000 fine for access device fraud and an additional mandatory minimum period of imprisonment of two years for the aggravated identity theft. He will also be ordered to pay full restitution. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
On July 8, 2016, Lueje-Rodriquez pleaded guilty to access device fraud and aggravated identity theft charges arising out of the same conduct and awaits sentencing.
The investigation was conducted by the Maine State Police; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Bangor, Brewer, Dexter, Dover-Foxcroft, Ellsworth, Hampden, Lincoln, Millinocket, Newport, Pittsfield, Rockland, Saco, Waterville (Maine) and Londonderry (New Hampshire) Police Departments.
Final Member of Colombian Burglary Crew Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – Neftali Perea-Zuniga, 30, a Colombian national, was sentenced today to 54 months in prison for his role in nearly 40 burglaries he committed in Virginia, Maryland, Tennessee, Kentucky, and Missouri from 2010 through 2013. Perea-Zuniga was also ordered to forfeit $790,436 and ordered to pay $630,336.36 in restitution to his victims. Perea-Zuniga will be deported after serving his prison sentence.
Perea-Zuniga was found guilty by U.S. District Judge Anthony J. Trenga after a bench trial on May 4. According to evidence introduced at trial and sentencing, Perea-Zuniga and three co-conspirators, each Colombian nationals who resided in Houston, Texas, traveled across the country to Maryland, Virginia, and other states where they committed burglaries. Perea-Zuniga and his co-conspirators, all of whom previously pleaded guilty, specifically targeted homes owned by small business owners in the area, under the assumption that those families would likely keep cash, gold, and other small valuables in their houses. Perea-Zuniga and his co-conspirators broke into these homes, disabled security devices, and ransacked the master bedrooms in search of cash and gold—much of it family heirlooms. When Perea-Zuniga was arrested, he and two co-conspirators were caught with approximately $60,000 in gold jewelry that had been taken from a residence in Loudoun County. In all, Perea-Zuniga and his co-conspirators stole over $790,000 worth of cash, gold, and small electronics. As a result of law enforcement efforts, some of the cash and jewelry, including a seizure by the Indiana State Police of a suspicious Fed Ex package, resulted in the seizure of over $105,000 in cash and jewelry, which was ultimately returned to the victims.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; J. Thomas Manger, Montgomery County Chief of Police; Chief Gary L. Gardner, Howard County Police Department; and Michael L. Chapman, Loudoun County Sheriff, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Kimberly R. Pedersen and Special Assistant U.S. Attorney Aleza Remis 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. 1:16-CR-11.
Federal Jury Convicts Another Member of Gulf Coast Drug Trafficking RingRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the fourth conviction in a series of federal prosecutions aimed at a drug trafficking ring which operated in the Gulf Coast states. A federal jury has convicted KAREEM MCKINNON, age 25, of Crystal River, Florida, of conspiracy to distribute 500 grams or more of cocaine, in violation of Title 21, United States Code, Sections 846 and 2. The verdict, yesterday afternoon, followed a multi-day jury trial before Chief U.S. District Judge Brian A. Jackson. MCKINNON was remanded into custody following his conviction and is scheduled to be sentenced at 9:30 a.m. on November 17, 2016.
The evidence at trial established that, between January and March of 2015, MCKINNON and his co-conspirators made multiple trips to the Houston, Texas area, where they would obtain distribution-level quantities of cocaine. The co-conspirators would drive the cocaine back to Florida, where the cocaine would be distributed. MCKINNON and his co-conspirators would travel in a two-car caravan, with the cocaine being transported in one car and MCKINNON and other co-conspirators following behind in a separate car, in an effort to evade law enforcement and minimize the risk that all of the co-conspirators could be apprehended. On or about February 8, 2015, after one such trip to Houston, MCKINNON and his co-conspirators were arrested while driving through Baton Rouge, Louisiana, and found to be transporting more than 4 kilograms of cocaine.
MCKINNON’S conviction follows the convictions of three co-conspirators:
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Arthur William Armstrong, age 34, of Crystal River, Florida, pled guilty on October 21, 2015 to a bill of information charging him with conspiracy to possess with the intent to distribute 500 grams or more of cocaine;
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Lamechia Richburg, age 22, of Crystal River, Florida, pled guilty on December 2, 2015, to a bill of information charging her with conspiracy to possess with the intent to distribute cocaine; and
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Shelby Collazo, age 21, of Beverly Hills, Florida, pled guilty on December 4, 2015, to a bill of information charging her with conspiracy to possess with the intent to distribute cocaine.
A fifth individual, Kendall Lewis, age 26, of Crystal River, Florida, was named in an indictment returned by a federal grand jury on July 7, 2016, charging him with conspiracy to distribute 500 grams or more of cocaine. That case remains pending.
U.S. Attorney Green stated: “This jury verdict and today’s conviction is a strong reminder of my office’s commitment to fighting the drug trade and those who traffic cocaine for profit. I appreciate the hard work of the DEA, our dedicated state and local law enforcement partners, and our prosecutors, who are working hard to keep cocaine and other dangerous drugs out of our community.”
This matter was investigated by the United States Drug Enforcement Agency, with valuable assistance from the Baton Rouge Police Department and the Louisiana State Police. It is being prosecuted by Assistant United States Attorneys Adam Ptashkin and Robert Piedrahita.
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Dayton, KY Man Sentenced 20 Years for Distributing Child PornographyRead the Press Release
COVINGTON, Ky. – A Dayton, Ky., man has been sentenced to 20 years in federal prison for distributing child pornography.
On Wednesday, U.S. District Judge Amul Thapar formally sentenced Paul Morris, 40, and also ordered him to serve a lifetime of supervised release, upon his release from prison. Under federal law, Davis must serve at least 85 percent of his prison sentence.
At his guilty plea in March of this year, Morris admitted that he had uploaded videos and images that depicted minors engaged in sexually explicit conduct to an online messaging application, back in July of 2015.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and James M. Gibbons, Special Agent in Charge, Homeland Security Investigations (Chicago Field Division), jointly announced the sentence.
The investigation was conducted by HSI. Assistant United States Attorney Elaine K. Leonhard prosecuted this case on behalf of the federal government.
Columbia Man Sentenced to 20 Years in Prison for Distribution of Child PornographyRead the Press Release
Chad Allen Martin, 25, of Columbia, Tennessee, was sentenced yesterday by U.S. District Court Judge Aleta A. Trauger to serve 20 years in prison, followed by 20 additional years of supervised release, for possession and distribution of child pornography, announced David Rivera, United States Attorney for the Middle District of Tennessee. Martin pleaded guilty on April 7, 2016.
“The U.S. Attorney’s Office will always be a staunch advocate for innocent children who are victimized by sexual predators,” said U.S. Attorney David Rivera. “We will pursue these predators, prosecute them vigorously and seek their confinement for as long as the law allows.”
According to testimony at the plea hearing, in 2011 Martin was convicted in state court of attempted rape of a child, and served a three- year prison sentence. While on parole for that offense in March 2015, Martin was identified, during an investigation by the Internet Crimes Against Children Task Force, as being in possession of and distributing hundreds of computer files depicting minors engaged in sexually explicit conduct which were being shared from his laptop computer.
On March 20, 2015, a federal search warrant was executed at Martin’s residence in Columbia, Tennessee, where FBI Agents and Columbia Police Department officers found more than 1,000 images and 173 videos of prepubescent minors engaged in sexually explicit conduct on Martin’s laptop computer and an external hard drive. The images and videos seized included depictions of bestiality, bondage, and rape.
The case was investigated by the Winchester, Tennessee Police Department and the Federal Bureau of Investigation, with assistance from the Columbia, Tenn. Police Department. The case was prosecuted by Assistant United States Attorney Lee Deneke.
Cocaine Dealing Mother Sentenced to 10 Years in PrisonRead the Press Release
SAVANNAH GA- Liberty County resident Timecka Green, 32, was sentenced earlier this week by District Court Judge William T. Moore, Jr. to 10 years in federal prison for her role in a drug trafficking conspiracy that operated in Liberty County and elsewhere. In May of this year, a federal jury convicted her of conspiracy to make and sell cocaine and crack cocaine, for possessing cocaine and crack cocaine with intent to sell and for making crack cocaine.
Evidence presented in trial, court hearings, and written documents, painted a grim picture. On Tuesday, October 27, 2015, T. G. (a 15 year-old child) called her grandmother in New York for help because men were cooking crack cocaine at her Liberty County home and the fumes were making her brothers, sisters, and her own six-month old infant sick. The defendant, Timecka Green, had left her children alone with other drug dealers, who were cooking crack, so she could engage in a drug deal.
The grandmother called the Liberty County Sheriff’s Office to investigate. Upon arrival, detectives captured Laron Bruce, who had over $7000 cash, cocaine, and a scale hidden on his body. Detectives ultimately searched the home and found it filled with children and drug supplies. The kids were 15, 13, 8, 5, 2, and 6 months old. Cocaine, crack, and cooking supplies were found throughout the government subsidized house. Detectives found a small child’s school uniform pants, covered in cocaine powder, on a table in the living room, next to a razor blade, next to a baby play pen. In the kitchen, next to baby formula, agents found crack cocaine and powder cocaine. In total, during the search, agents found over 400 grams of powder cocaine, over 30 grams of crack cocaine, plastic baggies with cocaine residue, glass beakers, multiple scales used to weigh drugs, cutting agents, a whisk, a cocaine press, and other items.
Trial testimony revealed that on over 20 separate occasions, Timecka Green opened the doors of her home to drug dealers so they could cook crack and package it for re-sell. In exchange, she received cocaine for resale or money. After her arrest, Timecka Green made phone calls from jail where she stated that if she saw her daughter she would cut her throat.
United States Attorney Edward J. Tarver stated, “Some of the evidence presented during this trial was appalling. The defendant willfully endangered her grandchild and her own four children in exchange for drugs and money. During her prosecution, the defendant put her 15 year-old daughter on the witness stand to testify at trial in a deplorable attempt to force her to recant. We should all grieve for these children, especially the teenage daughter who did the right thing to protect her siblings and her own child.”
Also convicted and sentenced in this successful prosecution were Larron R. Bruce, 35, who received 170 months of incarceration and Willie Nelson Bruce, 55, who received 57 months of incarceration.
This case was investigated by the Liberty County Sheriff’s Office and the GBI. The cases were prosecuted by Assistant United States Attorneys E. Greg Gilluly, Jr. and Scarlett S. Nokes. For additional questions, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Civil Complaint Filed Against Sevier Valley Oil Company Alleging Eight Amtrak Locomotives Broke Down After Refueling with Contaminated Fuel in Salt Lake CityRead the Press Release
SALT LAKE CITY – A civil complaint filed Friday afternoon in U.S. District Court in Salt Lake City alleges that Sevier Valley Oil Company of Monroe, Utah, provided contaminated fuel for eight Amtrak locomotives refueled in Salt Lake City during April and May of 2011. The locomotives broke down after leaving Salt Lake City. Repairs required to fix the locomotives took them out of commission for several days and cost taxpayers tens of thousands of dollars.
In one instance on May 17, 2011, an Amtrak train was stranded without electrical power about 100 miles east of Elko, Nevada, after one of two locomotives began losing power, billowing smoke, and shooting flames and sparks out of its exhaust. Soon after, both locomotives, which had been refueled in Salt Lake City a few hours before, completely failed and could not be restarted. According to the complaint, with the loss of both locomotives, the train was stranded without electrical power. Amtrak was able to lease a locomotive from Union Pacific to tow the stranded train to Elko, where passengers were taken by bus. Some passengers were transported to the hospital because their medical devices were without power for an extended period of time while they were on the stranded train.
Sevier Valley Oil and Amtrak entered into a contract on Dec. 1, 2009. As a part of the contract, Sevier agreed to provide No. 1-D and No. 2-D diesel fuel for Amtrak’s locomotives. Among other requirements, Sevier agreed to provide this diesel fuel that would be “free from grit, acid, microbial growth, and fibrous or other foreign material likely to clog pipes and strainers or damage injectors.”
Amtrak suspended Sevier from fuel deliveries after the incident involving the stranded train near Elko and asked Sevier to provide information about its refinery sources. According to the complaint, Sevier provided Amtrak with refinery test results from Silver Eagle, Tesoro, Holly, and Sinclair. However, the complaint notes that Sevier did not disclose that it had obtained fuel from Rock Canyon Oil Company in American Fork, Utah, which blended diesel fuel with re-fined used oil. Amtrak later determined that all of the engine failures were caused by fuel contamination, which clogged the locomotives’ fuel injectors. Subsequent fuel analysis showed that the fuel in all of the broken-down locomotives was contaminated with a non-fuel product. Amtrak had to repair all of the damaged locomotives by draining all of the contaminated fuel and making several repairs to the locomotives.
Amtrak, the complaint alleges, spent $84,124.13 in labor and parts to repair the damaged locomotives; $3,370 to drain the contaminated fuel from all of its damaged locomotives; and $5,500 to have the contaminated fuel test. Amtrak had to issue $14,575.83 in refunds or credits to passengers as compensation for late trains or missed connections. Additionally, Amtrak paid Sevier $48,081.78 for the substandard fuel that damaged its locomotives.
The complaint asks the court to declare that Sevier breached its contract and to order Sevier to pay Amtrak damages in the amount of $242,452.93 for Sevier’s breach of contract.
The complaint includes a second cause of action under the False Claims Act. According to the complaint, Sevier presented a claim for payment to Amtrak on six different days in April and May of 2011. According to the complaint, Sevier knowingly misrepresented and concealed the type of fuel that was delivered to Amtrak on their claims. The complaint asks the Court to declare that Sevier violated the False Claims Act and award the United States a civil penalty of not less than $5,500 and not more than $11,000 for each false claim and treble damages in the amount of $144,245.34 based on the amount that Amtrak paid for the substandard fuel Sevier delivered.
The U.S. Attorney’s Office in Utah is representing Amtrak and the United States in the action. The case has been investigated by the Amtrak Office of Inspector General.