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Monday 13 June 2016
Oklahoma Medical Clinics Pays $2.5 Million to Settle Allegations of False Claims for Medical Services Provided to Federal EmployeesRead the Press Release
Oklahoma City, Oklahoma – FEDCARE, LLC, and THE BROADWAY CLINIC OF TULSA, LLC, has paid $2,500,000 to the United States to settle civil penalty claims stemming from allegations that the clinics violated the False Claims Act by submitting false claims to the Office of Workers Compensation Programs of the United States Department of Labor ("DOL-OWCP"), announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
FedCare, LLC ("FedCare") is an Oklahoma limited liability company that operates a medical clinic in Oklahoma City. A related entity, The Broadway Clinic of Tulsa, LLC ("Broadway"), is an Oklahoma limited liability company that operated a medical clinic in Tulsa. FedCare and Broadway provided medical services to federal employees under the Federal Employees’ Compensation Act (FECA). FECA provides workers compensation benefits to civilian employees of the United States for disability due to personal injury sustained while in the performance of duty, and for employment-related disease. Benefits include rehabilitation, medical, surgical and necessary expenses. Claims for services provided under FECA are submitted to DOL-OWCP.
The United States contends that from July 1, 2006, through December 31, 2012, FedCare and Broadway submitted false claims for payment to DOL-OWCP. Specifically, it is alleged that FedCare and Broadway submitted claims to DOL-OWCP for medical services furnished to federal employees of fourteen federal agencies that were false because they were either (1) billed at a higher rate than allowed or (2) not performed at all.
In order to resolve these allegations, FedCare and Broadway agreed to pay $2,500,000 to the United States. In reaching this settlement, FedCare and Broadway did not admit liability and the government did not make any concessions regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the United States Postal Service, Office of Inspector General. The case was prosecuted by Assistant United States Attorney Ronald R. Gallegos.
North Port Man Pleads Guilty to Possession of Unauthorized Access DevicesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Michael Wesley (40, North Port) has pleaded guilty to two counts of possession of unauthorized access devices. He faces a maximum penalty of 10 years in federal prison on each count.
According to the plea agreement, between November 2011 and May 2014, Wesley was engaged in a fraud scheme in which he would obtain checks that had been written by victim bank account holders and stolen from United States Postal Service mailboxes. Wesley would then use the personal information printed on these stolen checks to cash, at the victim’s own bank, worthless checks made payable to the victim but had been written on closed accounts from other banking institutions. In this manner, Wesley frequently obtained cash from federally insured financial institutions. On multiple occasions, and at different locations over several years, ranging from Lee, Manatee, and Hillsborough Counties, Florida law enforcement officers found Wesley to be in possession of numerous such checks and theft paraphernalia. Each check was an unauthorized access device containing the account holder’s personal information, bank account, and routing numbers. None of the victim account holders had authorized Wesley to possess or use those checks.
This case was investigated by the United States Postal Inspection Service, with assistance from the Sheriff’s Offices in Hillsborough, Pinellas, Manatee, Seminole, and County, and the Florida Highway Patrol. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Newark Corrections Officer Sentenced to 25 Years in Prison for Sexual Abuse of DetaineeRead the Press Release
NEWARK, N.J. – A former corrections officer with the Essex County Correctional Facility was sentenced today to 300 months in prison for sexually assaulting a pretrial detainee and then lying about it to investigators, U.S. Attorney Paul J. Fishman, District of New Jersey, and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, announced.
Shawn D. Shaw, 42, of Newark, was previously convicted of both counts of an indictment charging him with depriving an individual of rights under color of law and obstruction of justice following a seven-day trial before U.S. District Judge Esther Salas. The jury deliberated for two days before returning the guilty verdict. Judge Salas imposed the sentence today in Newark federal court.
“The defendant’s conduct in this case is especially abhorrent considering his role as a public servant overseeing the safety and well-being of the prisoners in his charge,” U.S. Attorney Fishman said. “His sentence appropriately reflects the serious nature of his crime and the government’s intolerance of such criminal behavior by those who wear a badge.”
“The defendant abused his position of power to exploit a vulnerable individual whom he was tasked with protecting,” said Principal Deputy Assistant Attorney General Gupta. “While no amount of jail time can undo the harm he caused, I am hopeful that this sentence will provide some level of resolution to the victim who had the strength and resolve to report the assault.”
According to documents filed in this case and the evidence at trial:
Shaw was the only officer on duty in the female unit during the night of a snow blizzard on Dec. 28, 2010. During the night, Shaw made sexually explicit comments to the victim. Although she rejected his advances, records show that in the middle of the night, Shaw opened the victim’s cell door. The victim testified that Shaw entered her cell, and despite her saying “stop” and “no,” Shaw raped her. Expert testimony, including DNA analysis, corroborated the victim’s testimony that Shaw was her assailant.
When investigators questioned Shaw about the attack, he lied and intentionally omitted information from his statement in order to obstruct the investigation. Shaw falsely stated that he did not make sexual comments to the detainee or enter the victim’s cell.
In addition to the prison term, Judge Salas sentenced Shaw to five years of supervised release and ordered him to pay restitution of $6,000 to the victim.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, for its assistance.
The government is represented by Criminal Division Chief Thomas Eicher and Assistant U.S. Attorney Shana Chen of the U.S. Attorney’s Office in Newark, with assistance from Trial Attorney Shan Patel of the Justice Department’s Civil Rights Division.
Defense counsel: Mark A. Fury Esq., Mount Holly
New Jersey Correctional Officer Sentenced to 25 Years in Prison for Sexual Abuse of DetaineeRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Paul J. Fishman of the District of New Jersey announced today that Shawn D. Shaw, 42, of Newark, New Jersey, a former correctional officer with the Essex County, New Jersey, Correctional Facility, was sentenced today to 25 years in prison for sexually assaulting a pretrial detainee and then lying about it to investigators.
Shaw was convicted on Feb. 5, 2016, of both counts of an indictment charging him with depriving an individual of rights under color of law and obstruction of justice following a seven-day trial before U.S. District Judge Esther Salas of the District of New Jersey. Judge Salas imposed the sentence today in Newark federal court.
“The defendant abused his position of power to exploit a vulnerable individual whom he was tasked with protecting,” said Principal Deputy Assistant Attorney General Gupta. “While no amount of jail time can undo the harm he caused, I am hopeful that this sentence will provide some level of resolution to the victim who had the strength and resolve to report the assault.”
“The defendant’s conduct in this case is especially abhorrent considering his role as a public servant overseeing the safety and well-being of the prisoners in his charge,” said U.S. Attorney Fishman. “His sentence appropriately reflects the serious nature of his crime and the government’s intolerance of such criminal behavior by those who wear a badge.”
According to documents filed in this case and the evidence at trial:
Shaw was the only officer on duty in the female unit during a blizzard on Dec. 28, 2010. During the night, Shaw made sexually explicit comments to the victim. Although she rejected his advances, records show that in the middle of the night, Shaw opened the victim’s cell door. The victim testified that Shaw entered her cell, and despite her saying “stop” and “no,” Shaw raped her. Expert testimony, including DNA analysis, corroborated the victim’s testimony that Shaw was her assailant.
When investigators questioned Shaw about the attack, he lied and intentionally omitted information from his statement in order to obstruct the investigation. Shaw falsely stated that he did not make sexual comments to the detainee or enter the victim’s cell.
In addition to the prison term, Judge Salas sentenced Shaw to five years of supervised release and ordered him to pay $6,000 in restitution.
This case was investigated by the FBI’s Newark Division and was prosecuted by Criminal Division Chief Thomas Eicher and Assistant U.S. Attorney Shana Chen of the District of New Jersey and Trial Attorney Shan Patel of the Civil Rights Division’s Criminal Section.
New Haven Man Sentenced to 46 Months in Federal Prison for Firearm OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EARL HOBBY, 37, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 46 months of imprisonment, followed by three years of supervised release, for illegally possessing ammunition.
According to court documents and statements made in court, on December 19, 2014, members of the New Haven Police Department responded to a call concerning a person with a firearm at 154 Frank Street in New Haven. Arriving officers encountered HOBBY walking on Clover Street and attempted to stop him. HOBBY resisted, and two officers were injured in the struggle. After HOBBY was subdued, he was found to be in possession of two rounds of Winchester .38 Special ammunition. A loaded Ruger .357 revolver and a quantity of heroin packaged for distribution also were found in the area.
Prior to December 2014, HOBBY had sustained multiple narcotics convictions and a weapon conviction. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On January 21, 2016, HOBBY pleaded guilty to one count of possession of ammunition by a convicted felon.
The matter was investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorneys Jennifer Laraia and Anthony Kaplan.
Multiple defendants appear on Federal drug charges in HuntingtonRead the Press Release
HUNTINGTON, W.Va. – Multiple defendants appeared today in federal court in Huntington on drug charges, announced Acting United States Attorney Carol Casto.
Michael Muncy, 36, of Crum in Wayne County, was sentenced to five years and ten months in federal prison for possession with intent to distribute oxycodone. Naomi Messer, 55, also of Crum and the mother of Muncy, was sentenced to five years of probation for aiding and abetting possession with intent to distribute oxycodone. Following several controlled purchases of oxycodone from the residence of Muncy and Messer in Crum, law enforcement executed a search warrant at the house on February 21, 2012. Law enforcement seized oxycodone pills and over $1,800 in cash, including pre-recorded buy money from a prior controlled purchase of oxycodone.
In a separate drug prosecution, Jessica Dawn Prince, 30, of Huntington, pleaded guilty to distributing heroin. Prince admitted that on October 19, 2015, she sold heroin to a confidential informant working with law enforcement. The drug deal took place in Prince’s residence at 5400 Altizer Avenue in Huntington. Prince faces up to 20 years in federal prison when she is sentenced on September 12, 2016.
The West Virginia State Police and the Route 119 Drug Task Force conducted the investigation of Muncy and Messer. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecutions of Muncy and Messer. The Cabell County Sheriff’s Department conducted the investigation of Prince. Assistant United States Attorney Gregory McVey is responsible for the prosecution of Prince. The hearings were held before Chief United States District Judge Robert C. Chambers.
These prosecutions were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Mexican Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced today that Juan Martinez, of Mexico, pleaded guilty today to illegally reentering the United States after having been previously deported. Under the U.S. Attorney’s accelerated sentencing program for reentry cases, the defendant was sentenced to time served since his arrest on April 15, 2016. The defendant will now be deported.
On March 24, 2016 Manchester, NH ICE ERO Officers were in Nashua, New Hampshire conducting surveillance of a vehicle that the defendant was known to operate. At approximately 9:30 p.m., the defendant exited a house in the area of Palm Street and entered the driver’s side of a black BMW. The defendant was then approached by an ICE Deportation Officer, who conducted a brief interview in Spanish during which he confirmed the defendant’s name was Juan Martinez, that he was a citizen of Mexico and that he had illegally entered the United States. At this time the Deportation Officer placed the defendant into ICE custody for immigration violations.
At the Manchester ICE office, a full set of digital fingerprint impressions were obtained from the defendant for comparison to known fingerprints maintained in HIS and FBI databases. The comparison revealed that the defendant’s fingerprints were an exact match to fingerprints obtained from the defendant at the time of his deportation from the Brownsville, Texas to Mexico on February 18, 2011.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and prosecuted by Assistant U.S. Attorney Alfred Rubega.
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Maryland Woman Found Guilty of Leading Oxycodone OperationRead the Press Release
ALEXANDRIA, Va. – Roxanne Granberry, 35, Hughesville, Maryland, was convicted today by a federal jury on charges of conspiracy to distribute oxycodone and obtaining oxycodone by fraud.
Granberry was indicted on February 3. According to court records and evidence presented at trial, Roxanne Granberry and her husband, William Granberry, ran a large-scale drug conspiracy in which they created fraudulent prescriptions for narcotics and used drug runners in multiple pharmacies in Virginia and several other states to obtain thousands of oxycodone tablets. Roxanne and William recruited individuals to drive to pharmacies and pass the prescriptions, and also engaged in direct sale and distribution of the oxycodone to numerous buyers in Virginia and other states. Since 2008, the criminal organization has fraudulently obtained approximately 130,000 oxycodone pills. Thirteen other members of this conspiracy have also been convicted.
Granberry faces a maximum penalty of 20 years in prison when sentenced on September 16. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Washington Field Division; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the verdict was accepted by U.S. District Judge Anthony J. Trenga. Special Assistant U.S. Attorneys Paul A. Hayden and Anna G. Kaminska, as well as Assistant U.S. Attorney Gene Rossi are prosecuting the case.
The U.S. Attorney thanked the Department of Defense–Office of the Inspector General, Loudoun County Sheriff’s Office, Charles County Sheriff’s Office, Calvert County Sheriff’s Office, Washington, D.C. Metropolitan Police Department, Virginia State Police, and the Pennsylvania Attorney General’s Office for their assistance in this matter.
This case is part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation “Circuit Breaker,” which focused on the vast illegal procurement and sale of prescription pain medication across the mid-Atlantic region and elsewhere, including Virginia, Maryland, Pennsylvania, Ohio, North Carolina, Georgia, Connecticut, Alabama, Tennessee, West Virginia, and Washington, D.C.. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
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-28.
Madera Man Previously Convicted of Tax Evasion Sentenced for Illegally Possessing a FirearmRead the Press Release
FRESNO, Calif. — Walter Watts Jr., 47, of Madera, was sentenced Monday by United States District Judge Anthony W. Ishii to 2 ½ years in prison for being a felon in possession of a firearm, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, on November 29, 2012, law enforcement officers searched Watt’s home and found a Tactical Machine semiautomatic rifle, a Heckler and Koch shotgun, and a .22-caliber firearm with an attached laser. Watts was previously convicted of felony tax evasion in April 2011.
This case was the product of an investigation by the Drug Enforcement Administration and the Madera Narcotics Enforcement Team. Assistant United States Attorney Kevin Rooney prosecuted the case.
Watts was ordered to surrender on August 22, 2016, to begin his prison term.
MEDIA ADVISORY-- U.S. Attorney Damon Martinez Joins KANW and the Albuquerque Journal for a Special Radio Broadcast on New Mexico’s Heroin and Opioid EpidemicRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez will join KANW General Manager Michael Brasher and Albuquerque Journal Investigative Reporter Mike Gallagher for a KANW special broadcast on New Mexico’s heroin and opioid epidemic at 5:00 pm this afternoon. Today’s special broadcast will identify some of the issues that will be addressed by more than 20 experts during the KANW/Albuquerque Journal live public forum on heroin and opioid prevention and education that will be broadcast by KANW from 7:00 pm to 9:00 pm on Wednesday, June 15, 2016. HOPE Initiative partners, U.S. Attorney Martinez and Executive Vice Chancellor Richard Larson, UNM Health Sciences Center, will co-host the public forum.
WHO:
U.S. Attorney Damon P. Martinez
Michael Brasher, General Manager, KANW
Mike Gallagher, Investigative Reporter, Albuquerque Journal
WHAT:
Special Broadcast on New Mexico’s Heroin and Opioid Epidemic
WHEN:
MONDAY, JUNE 13, 2016 AT 5:00 PM
WHERE:
KANW 89.1FM
The New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative was launched in Jan. 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national heroin and opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC) and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico. The Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The new community education program is part of the prevention and education component of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Lower Brule Man Sentenced for Possession of a Firearm by a Prohibited PersonRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lower Brule, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on June 13, 2016, by U.S. District Judge Roberto A. Lange.
Lance Corey Flute, age 37, was sentenced to 4 months in custody, 2 years of Supervised Release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Flute was indicted by a federal grand jury on January 21, 2016. He pled guilty on March 8, 2016.
The conviction stemmed from an incident on December 17, 2015, when the Bureau of Indian Affairs, Crow Creek Agency, received a call from the Lower Brule dispatch indicating a male had shot himself in the stomach while inside a vehicle and had died at the Lower Brule clinic. The victim had been a passage in a vehicle driven and registered to Flute. Investigation into the shooting revealed that the deceased male had accidentally shot himself with a rifle belonging to Flute.
Flute, who had been convicted of a crime punishable by imprisonment for a term exceeding one year, was prohibited from owning a firearm.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Flute is to report to the custody of the U.S. Marshals Service on or before June 27, 2016.
Lebanon Man Arrested for Coercion and Enticement of MinorRead the Press Release
DAYTON – Michael Kirkwood, 59, of Lebanon, Ohio, was arrested and charged by criminal complaint with one count of coercion and enticement of a minor.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Department of Homeland Security Investigations and Montgomery County Sheriff Phil Plummer announced today’s initial appearance in court.
According to the criminal complaint and affidavit in this case, Internet Crimes Against Children investigators received a complaint that a 13-year-old female was receiving inappropriate messages via Facebook from Kirkwood. An undercover detective began communicating with Kirkwood, who engaged in sexually explicit conversation and agreed to meet with who he thought was the 13-year-old girl at the Dayton Mall at Victoria’s Secret on June 8.
Kirkwood was arrested upon entering the mall and agreed to be interviewed by law enforcement. He stated he had chatted online with approximately 20 other female girls around the age of 13 and that he received and possessed child pornography on his home computer. A search of his residence also uncovered four pair of youth female underwear that appeared to have evidence of soiling.
Coercion and enticement of a minor is a crime punishable by 10 years to life in prison.
Kirkwood is scheduled for a detention hearing at 1:30pm on June 16 before U.S. Magistrate Judge Michael R. Merz.
If you have information related to this case, or believe you or others may have also been victimized by the same individual, please contact Detective Melanie Phelps with the Montgomery County Sheriff’s Office at 937-496-7191.
Acting U.S. Attorney Glassman commended the investigation of this case by the Montgomery County Sheriff’s Office and HSI, and Assistant United States Attorneys Alex R. Sistla and Andrew J. Hunt, who are prosecuting the case.
A criminal complaint contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Kensington Man Pleads Guilty to Producing Child PornographyRead the Press Release
Greenbelt, Maryland – Steven Edward Baker, age 41, of Kensington, Maryland, pleaded guilty today to producing child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, on July 8, 2015, FBI agents interviewed Baker at his business, Action Signs, located in Vienna, Virginia. Baker admitted that he had child pornography on both his work and home computers, and that he had been downloading child pornography for approximately 10 years. He estimated that his child pornography collection was approximately one terabyte in size.
Further investigation of digital media items obtained from Action Signs and Baker’s residence revealed 45 images and seven videos of a girl under the age of 12, all constituting child pornography, and produced by Baker. Baker produced the images and videos, including pictures taken at a park and what appears to be Baker’s home, from January 2008 to July 2013, using two cameras. The images included close ups of the victim in various states of undress, including numerous close-ups of the victim’s genitalia, and showing Baker touching areas in and around her genitalia.
Additionally, over 50,000 images and 1,000 videos of child pornography were found on the digital media which were not produced by Baker, but were downloaded from the internet. These images and videos depict real, prepubescent children engaged in sexually explicit conduct.
As part of his plea agreement, Baker must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Baker and the government have agreed that if the Court accepts the plea agreement, Baker faces between 15 and 24 years in prison followed by a lifetime of supervised release and a $250,000 fine. U.S. District Judge Paul W. Grimm has scheduled sentencing for October 14, 2016 at 9:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Thomas M. Sullivan, who is prosecuting the case.
Justice Department Sues Michigan and Michigan Department of Corrections for Discriminating Against Female OfficersRead the Press Release
The Justice Department announced today that it has filed a lawsuit alleging that the state of Michigan and the Michigan Department of Corrections (MDOC) are engaged in a pattern or practice of sex-based employment discrimination against female correctional officers in violation of Title VII of the Civil Rights Act of 1964.
Title VII prohibits discrimination in employment on the basis of race, color, sex, national origin and religion. The lawsuit, filed today in the U.S. District Court for the Eastern District of Michigan, alleges that Michigan and MDOC discriminated against female employees assigned to MDOC’s Women’s Huron Valley Correctional Facility (Huron Valley) by implementing an overly broad female-only assignment policy and by unnecessarily denying requests by female employees for transfers, in violation of Title VII.
“Employers may not unduly lock workers into or out of a job because of their sex,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Qualified male and female correctional officers deserve equal opportunities to compete for job assignments and transfers without unnecessary barriers.”
The complaint alleges that beginning in 2009, MDOC discriminated against female correctional officers on the basis of sex at its only prison for female inmates, Huron Valley. The complaint further alleges that MDOC restricted multiple correctional officer positions on the basis of sex and without justification, in violation of Title VII. The complaint also alleges that MDOC has a pattern or practice of denying the transfer requests of female correctional officers from Huron Valley to other MDOC prisons, while at the same time granting transfer requests by male correctional officers to move to other facilities. Both policies required female employees at Huron Valley to work excessive overtime hours at a cost to their health.
The lawsuit seeks a court order requiring the defendants to stop discriminatory job assignment and transfer policies at Huron Valley and to order MDOC to develop and implement lawful and effective measures to prevent further discrimination. The remedial relief sought by this lawsuit also includes monetary damages as compensation for those female correctional officers who were harmed by the alleged discrimination.
“The Michigan Department of Corrections’ policy unnecessarily limits job opportunities for its female employees at the Huron Valley Correctional Facility,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “We are not challenging positions where it makes sense to assign only female officers, but only those positions that could reasonably be filled by men or women. By limiting positions that are not justifiably related to inmate privacy to women officers, MDOC created staffing limitations that harm female employees by forcing them to work overtime and preventing them from transferring to other facilities that are closer to their homes, offer more favorable conditions or provide promotional opportunities.”
Twenty-eight female correctional officers filed charges with the Equal Employment Opportunity Commission (EEOC) challenging MDOC’s female-only job assignment and transfer policies. The EEOC’s Detroit Field Office, in the Indianapolis District, investigated the charges and found reasonable cause to believe that MDOC discriminated against these female correctional officers and other female correctional officers employed at Huron Valley on the basis of sex. After unsuccessful efforts at conciliation, the EEOC referred the charges to the Justice Department.
“Making decisions on job assignments and transfers based on a person’s sex violates federal law and is completely unacceptable,” said Director Gail Cober of the EEOC’s Detroit Field Office. “The EEOC will continue to work in partnership with the DOJ to ensure that public employers follow the law and we will continue to fight for victims of sex discrimination to ensure that everyone has equal opportunity in the workplace.”
The case was brought by Trial Attorneys Carol Wong, Lisa Wilson Edwards and Taryn Wilgus Null of the Civil Rights Division’s Employment Litigation Section and Assistant U.S. Attorney Sarah Karpinen of the Eastern District of Michigan. Enforcement of federal employment discrimination laws is a top priority for the Justice Department. Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
MDOC Complaint
Judge Sentences Pittsburgh Man with Heroin and Guns to 10 Years in PrisonRead the Press Release
PITTSBURGH – Deontay Kendricks of Pittsburgh, Pa., was sentenced to 120 months in prison for distribution of heroin and possession of a firearm in furtherance of a drug trafficking crime, United States Attorney David J. Hickton announced today.
Kendricks, 27, was sentenced in Pittsburgh by United States District Judge Arthur J. Schwab. Judge Schwab also imposed a three-year term of supervised release to follow the federal prison sentence. Kendricks agreed to the sentence that was imposed as part of his plea agreement.
On Feb. 18, 2015, Kendricks was caught in possession of 10 bricks of heroin and four pistols, some of which were loaded and one of which had an obliterated serial number. He possessed the bricks with the intent to distribute them and he possessed the pistols to further his drug trafficking. His possession of the bricks and the pistols was part of a course of conduct that he continued even after Feb. 18, 2015, that involved over 100 grams of heroin.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pittsburgh Bureau of Police and the Drug Enforcement Administration conducted the investigation leading to the convictions and sentence in this case.
Inmate Sentenced for Directing Sophisticated Tax Scheme from State PrisonRead the Press Release
ABINGDON, VIRGINIA – United States Attorney John P. Fishwick Jr. announced the sentence today of a Virginia man who, while incarcerated in Tennessee state prison, organized and participated in a scheme to defraud the Internal Revenue Service.
David Witt, 36, of Jonesville, Virginia, pled guilty earlier this year in Federal Court to one count of making false, fictitious or fraudulent claims and one count of conspiring to defraud the United States Government in respect to claims. Last week, Witt was sentenced to 96 months in Federal Prison and three years of supervised release. In addition, Witt was ordered to pay $67,356 in restitution.
A co-defendant in the case, William Ziehler, was sentenced to 51 months in federal prison on related charges earlier this month. Tommy Witt, another co-defendant, was sentenced to 30 months in federal prison for his role in the conspiracy.
“Law enforcement will investigate and prosecute anyone who attempts to undermine the integrity of our tax system,” United States Attorney John P. Fishwick Jr. said today. “This prosecution should serve as an example, if you defraud the United States you will be held accountable.”
According to evidence presented in District Court by Special Assistant United States Attorney Kevin Jayne, Witt, and others, participated in a sophisticated conspiracy to defraud the federal government. The scheme began when Witt, at the time an inmate in a Tennessee state prison, gathered personally identifiable information (including birth dates and social security numbers) belonging to other inmates, which he then used that information to complete Internal Revenue Service (IRS) Form 1040s. These Form 1040s contained false information, including false addresses outside of prison and false claims that the inmates were due a tax refund based on wages never earned by those inmates. Subsequently, these Form 1040s were sent to persons outside of the prison who then forwarded the Form 1040s to the IRS for processing. Based on these Form 1040s, the IRS issued tax refund checks in the names of these inmates and sent the checks to addresses associated with Witt’s accomplices in the scheme. Many of these tax refund checks were cashed at banks throughout Southwest Virginia by persons using fraudulent power-of-attorney forms. Return payment was made to Witt and others by use of electronic transfers, such as MoneyGram, and by other means.
The investigation of the case was conducted by the Internal Revenue Service Criminal Investigation and United States Postal Inspection Service. Special Assistant United States Attorney Kevin Jayne prosecuted the case for the United States.
Independence Man Charged with Possessing Firearm Stolen from Police Officer's HomeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was charged in federal court today with illegally possessing a firearm that had been stolen during the burglary of a Belton, Mo., police officer’s residence.
Paul M. Leach, 35, of Independence, was charged with being a felon in possession of a firearm in a criminal complaint filed in the U.S. District Court in Kansas City, Mo.
Today’s criminal complaint alleges that Leach was in possession of a Sig Sauer .45-caliber semi-automatic handgun on June 12, 2016. According to an affidavit filed in support of the criminal complaint, the handgun was the duty weapon issued to a police officer at the Belton Police Department, which was reported as stolen on Dec. 10, 2015, in a residential burglary in Lee’s Summit, Mo.
Independence police officers were called to the intersection of E. 51st Street South and Cottage Street in Independence on the afternoon of Sunday, June 12, 2016, in response to a report of a suspicious person armed with a gun and allegedly under the influence of illegal drugs. They made contact with Leach, who was seated in a chair near the garage door of a residence on Cottage Street.
Leach fled on foot, the affidavit says, running across the lawn and down the road. As he was being pursued, the affidavit says, officers saw him reach into the waistband area of his pants and remove the loaded Sig Sauer handgun. Leach allegedly discarded the firearm into a shrub or bush. He was pursued a short distance from where he was observed abandoning the firearm, the affidavit says, and was taken into custody.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Leach has three prior felony convictions for aggravated battery and kidnaping and a prior felony conviction for robbery. Leach is currently under the supervision of the Kansas Department of Corrections, Office of Probation and Parole.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Hancock County man pleads guilty to unlawful possession of a stolen firearmRead the Press Release
WHEELING, WEST VIRGINIA – Brandon S. Moore, 24, of New Cumberland, West Virginia, pled guilty today to a federal firearms charge, United States Attorney William J. Ihlenfeld, II, announced.In June 2015, Moore stole a Glock pistol, model 22, .40 caliber from a residence in Brooke County, West Virginia. Moore pled guilty today to one count of “Possession of a Stolen Firearm.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Randy J. Bernard prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the West Virginia State Police, the Brooke County Sheriff’s Department, and the Weirton Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Guilty Plea and Sentence for Woman Charged with Defacing Rock Formations in 7 National Parks in Western U.S.Read the Press Release
FRESNO, Calif. — Casey Nocket, 23, of San Diego, pleaded guilty today to seven misdemeanor counts of damaging government property. U.S. Magistrate Judge Sheila K. Oberto sentenced Nocket two years’ probation and 200 hours of community service, Acting United States Attorney Phillip A. Talbert and National Park Service Chief of Law Enforcement Charles Cuvelier announced.
In addition, Judge Oberto ordered Nocket banned from lands administered by the National Park Service, the U.S. Forest Service, the Bureau of Land Management, and the Army Corps of Engineers during the period of probation. A hearing to determine the amount of restitution Nocket is required to pay will be held at a later date.
According to court documents, over a 26-day period, Nocket damaged rock formations within seven national parks by drawing or painting on them using acrylic paints and markers. She posted numerous pictures of the drawings on her social media accounts. The parks are in four federal districts: the Eastern District of California, the District of Oregon, the District of Utah, and the District of Colorado.
Acting U.S. Attorney Talbert stated, “The defendant’s defacement of multiple rock formations showed a lack of respect for the law and our shared national treasures. The National Park Service has worked hard to restore the rock formations to their natural state, completing clean-up efforts in five of the seven parks. They expect to complete cleanup efforts at Death Valley in the near future and at Crater Lake as weather permits.”
“This case illustrates the important role that the public can play in identifying and sharing evidence of illegal behavior in parks,” said Charles Cuvelier, chief of law enforcement for the National Park Service. “It is clear that the public cares deeply for the special places that the National Park Service represents, and the resolution of this case sends a message to those who would consider such inappropriate behavior going forward.”
The damage took place as follows:
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September 23, 2014, Death Valley National Park in the Eastern District of California at the summit of Telescope Peak.
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September 12, 2014, Rocky Mountain National Park in the District of Colorado
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September 13, 2014, Colorado National Monument in the District of Colorado on the Monument Canyon Trail.
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September 15, 2014, Canyonlands National Park in the District of Utah on the Neck Spring Trail.
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September 17, 2014, Zion National Park in the District of Utah.
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October 2, 2014, Yosemite National Park in the Eastern District of California at the beginning of the John Muir Trail.
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October 7, 2014, Crater Lake National Park in the District of Oregon.
This case was the product of an investigation by the National Park Service. Assistant United States Attorney Laurel J. Montoya prosecuted the case.
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Gladstone Man Sentenced for CounterfeitingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Gladstone, Mo., man was sentenced in federal court today for making and passing more than $15,000 in counterfeit money.
Robert Q. Liggans, also known as “GQ or “G,” 23, of Gladstone, was sentenced by U.S. District Judge Dean Whipple to four years and two months in federal prison without parole. The court also ordered Liggans to pay $13,850 in restitution.
On Feb. 2, 2016, Liggans pleaded guilty to leading a conspiracy to manufacture, possess and pass counterfeit money from Sept. 23, 2013, to Jan. 15, 2015.
Conspirators used computer software and hardware, printers, scanners, paper, ink, and other materials to use and to make counterfeit $20 and $100 bills. They made purchases with the counterfeit money at various retailers (more than 10 Target stores, Plato’s Closet, Dollar Stores, fireworks stands and others). After making the purchases, conspirators later returned the items to obtain cash and/or gift cards.
Liggans admitted that, on 33 occasions, he passed or possessed a total of $13,850 in counterfeit money. Liggans also admitted that he passed at least $1,150 in counterfeit money at additional businesses, but they are not identifiable and therefore no subject to restitution payment. Liggans admitted that his total counterfeit activity was in excess of $15,000.
Liggans was released on bond on June 12, 2015, but failed to appear for his arraignment on June 24, 2015. He was arrested in Kansas on Aug. 13, 2015, during a high speed chase in a stolen vehicle and has been in federal custody since that date.
This case was prosecuted by Senior Litigation Counsel Gregg Coonrod. It was investigated by the U.S. Secret Service, the Kansas City, Mo., Police Department and the Independence, Mo., Police Department.
Founder and Portfolio Manager of Canarsie Capital, LLC, Sentenced in Manhattan Federal Court for Securities FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that OWEN LI was sentenced to probation for securities fraud and making a false statement, stemming from LI’s lies to investors and the U.S. Securities and Exchange Commission (“SEC”) regarding the performance of Canarsie Capital, LLC (“Canarsie”) – a hedge fund LI had founded and for which he acted as portfolio manager – which collapsed in January 2015. LI pled guilty on December 16, 2015, before United States Magistrate Judge Frank Maas. U.S. District Judge Robert W. Sweet imposed today’s sentence.
According to the Information, other documents filed in the case, and statements made in open court:
LI founded Canarsie in January 2013 with approximately 10 investors and $16.55 million in assets under management. By the end of 2013, Canarsie had approximately $47.75 million in assets under management, and LI earned over $2.2 million that year. Li raised another $16.8 million in 2014, and at the time of its collapse in January 2015, Canarsie had approximately 41 investors and $56.8 million in assets under management.
According to Canarsie’s offering memorandum (the “Offering Memorandum”), which was provided to investors, Canarsie’s portfolio would be balanced and risk would be managed “through limits on position sizing and market exposure.” Generally no position, whether long or short, would exceed 10% of Canarsie’s assets.
LI Reported Fictitious Trades to His Prime Broker
Canarsie reported Canarsie’s trades daily to its prime broker. At the end of each trading day, the prime broker would match Canarsie’s trade report against trade reports submitted by executing brokers who had filled Canarsie’s orders that day. Mismatches of information concerning trades reported by Canarsie and the executing brokers were considered “trade breaks.”
In March and early April 2014, LI began reporting fictitious “sell” trades to Canarsie’s prime broker at that time (“Prime Broker-1”) as if Canarsie had executed the trades, when, in fact and as LI knew, Canarsie had never actually sold the shares in question. On April 9, 2014, Prime Broker-1 discovered multiple instances from March and early April 2014 in which LI had caused Canarsie to report trades that had not in fact been executed. Specifically, Prime Broker-1 noted that LI had engaged in a pattern of reporting sell trades, particularly in shares of Facebook, Inc. (“Facebook”), to Prime Broker-1, and subsequently canceling the sell trades before the settlement date.
As LI knew, Prime Broker-1 calculated Canarsie’s margin requirement on the basis of trade date, not settlement date. LI’s pattern of booking and canceling “sell” trades temporarily created the false appearance that the long positions in Facebook and other stocks (and thus the leverage in the account) were diminishing. This allowed Canarsie to (a) avoid a margin call from Prime Broker-1, and (b) avail itself of greater leverage than Prime Broker-1 ordinarily would have extended to Canarsie. Therefore, on April 1, 2014, Canarsie’s account was levered approximately eight times, in that it was employing approximately $377 million of margin with equity of approximately $45 million. In addition, LI had accumulated a position in Facebook that exceeded 10% of Canarsie’s total portfolio, in violation of the risk-management parameters set forth in the Offering Memorandum.
In light of those trade breaks, Prime Broker-1, among other things, forbid Canarsie from using margin and insisted that Canarsie hire a second prime broker, suggesting that eventually the second prime broker would become Canarsie’s sole prime broker in lieu of Prime Broker-1. In a meeting with a prospective second prime broker (“Prime Broker-2”), LI did not inform Prime Broker-2’s representatives that (a) Prime Broker-1 had told Canarsie to find a second prime broker, (b) Prime Broker-1 had withdrawn margin, and (c) if Canarsie established a relationship with Prime Broker-2, Prime Broker-2 would be, in essence, the sole prime broker for Canarsie. In August 2014, Canarsie established a prime brokerage account with Prime Broker-2, and conducted virtually all of its trading through that account from that point on.
LI’s Misstatements to Investors About Canarsie’s Performance
At or around the end of each month, LI and others prepared and sent emails to Canarsie’s investors describing the fund’s performance. Those emails contained an estimated net asset value (“NAV”) and monthly return. Canarsie’s administrator (the “Administrator”) emailed each investor a monthly account statement showing the value of his or her investment and Canarsie’s NAV. On at least two occasions, the estimated NAV supplied by LI and emailed to investors by Canarsie differed materially from the Administrator’s NAV, which appeared in the investors’ monthly statements.
In April 2014, Canarsie suffered approximately $13.6 million in losses and was down approximately 23% from the beginning of the month. However, on or about April 30, 2014, LI falsely told at least one investor that performance was down only nine percent. LI then intentionally delayed approving the correct April NAV, as calculated by the Administrator, because it was significantly worse than the NAV he had reported to investors at the end of April, and lied to investors about the reason for the delayed monthly statement and the reason for the discrepancy.
In December 2014, LI again delayed a monthly statement, this time for November 2014. LI did not approve the preliminary November NAV because it showed losses the fund had incurred toward the end of November and trades that LI had deliberately broken and later canceled or amended. Despite repeated requests from the Administrator, LI delayed approving the November NAV until January 8, 2015, falsely telling the Administrator that he had been in the hospital for a week. LI also falsely told investors who inquired about the November statements that they were late because of staffing changes at the Administrator and the Administrator’s focus on preparing for the annual audit.
On January 9, 2015, LI instructed the Administrator to release the November 2014 statements to investors. LI forwarded the statements to others at Canarsie, informing them that the fund’s November 2014 performance had been worse than the estimate Canarsie had provided to investors. LI falsely told others at Canarsie that the discrepancy was due to a residual amount of money transferred from Canarsie’s account at Prime Broker-1 to the account at Prime Broker-2 on or about November 28, 2014, which was not credited to the account at Prime Broker-2 until December 2014.
LI Misled the SEC Examination Staff
On November 5, 2014, members of the SEC’s Office of Compliance Inspections and Examinations Staff (the “Examination Staff”) conducted a phone interview of LI and others at Canarsie. Among other things, the Examination Staff asked why Canarsie appeared to be moving away from Prime Broker-1 as its prime broker, and conducting virtually all trading activity with Prime Broker-2. LI responded that he had contacts at Prime Broker-2 from his prior employment and certain harder-to-cover stocks were easier to locate through Prime Broker-2 than through Prime Broker-1. LI concealed from the Examination Staff that Prime Broker-1 (a) had withheld margin from Canarsie in or about April and May 2014, and (b) suggested that Canarsie move its prime brokerage relationship elsewhere.
On December 3, 2014, the Examination Staff again interviewed LI, and asked about the Facebook trades canceled in or about April 2014. LI responded that he had assumed that the brokers executed those orders, and had reported those trades to Prime Broker-1 as executed trades based on that assumption. In fact, LI never placed or transmitted those orders to executing brokers. LI concealed from the Examination Staff that he had fraudulently reported those trades as executions to Prime Broker-2 in an effort to conceal the extent of leverage in the fund and the size of the position in Facebook.
LI Caused Catastrophic Losses in the Fund
In December 2014 and January 2015, LI concealed from investors and others at Canarsie the fact that he was trading the fund in violation of the investment mandates in the Offering Memorandum and that, in doing so, he had placed the fund at excessive risk of catastrophic loss.
The fund’s net account value on or about December 31, 2014, was approximately $59.7 million. Beginning in early January 2015, LI began liquidating the equity long positions in the account – resulting in approximately $18 million in losses – and eliminated all short positions in the fund. At the same time, LI bought short-dated long positions in market index options. The result was an entirely long, unhedged portfolio.
On January 16, 2015, index options prices moved against Canarsie’s positions, resulting in losses of approximately $39 million. At the end of the day on January 16, the account was left with no equity, short, or options positions. As a result of LI’s trading, the fund lost substantially all of its assets between on or about December 31, 2014, and on or about January 16, 2015.
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LI, 30, was also ordered to pay restitution, forfeit $690,000, and pay a $100 special assessment.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the SEC for its assistance.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Michael Ferrara is in charge of the prosecution.
Former State Senator Ronald Calderon Agrees to Plead Guilty to Federal Corruption Charge; Admits Receiving Tens of Thousands of Dollars in BribesRead the Press Release
LOS ANGELES – Former California State Senator Ronald S. Calderon has agreed to plead guilty to a federal corruption charge and admits in a plea agreement filed today that he accepted tens of thousands of dollars in bribes in exchange for performing official acts as a legislator.
Ron Calderon, 58, of Montebello, agreed to plead guilty to one count of mail fraud through the deprivation of honest services to resolve a case against him that was filed in 2014. The plea agreement comes several weeks before Ron Calderon was scheduled to go on trial on charges contained in a 24-count indictment.
In the plea agreement, Ron Calderon admits accepting bribe payments from the owner of a Long Beach hospital who wanted a law to remain in effect so he could continue to reap millions of dollars in illicit profits from a separate fraud scheme and from undercover FBI agents who were posing as independent filmmakers who wanted changes to California’s Film Tax Credit program.
Ron Calderon’s brother, Thomas M. Calderon, 62, also of Montebello, a former member of the California State Assembly who became a political consultant, pleaded guilty last Monday to a federal money laundering charge for allowing bribe money earmarked for his brother to be funneled through his firm.
“Public officials who engage in corrupt behavior threaten the basic fabric of our democracy,” said United States Attorney Eileen M. Decker. “The Calderons have acknowledged their roles in a bribery scheme in which money for them and their families alone was driving legislation that would have benefited only a few individuals.”
“My office will not tolerate pay-to-play corruption by public officials and their associates,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “While in office, Ron Calderon and others profited handsomely when bribe money was accepted and laundered, and I’m gratified that he has chosen to take responsibility for his actions.”
Ron Calderon is expected to plead guilty to the mail fraud charge this week before United States District Judge Christina A. Snyder.
In the plea agreement filed today, Ron Calderon admitted participating in a bribery scheme involving two areas of legislation and the hiring of a staffer at the behest of those paying bribes.
In the first part of the bribery scheme, Ron Calderon took bribes from Michael Drobot, the former owner of Pacific Hospital in Long Beach, which was a major provider of spinal surgeries that were often paid by workers’ compensation programs. (The spinal surgeries are at the center of a massive healthcare fraud scheme that Drobot orchestrated and to which he previously pleaded guilty. Ron Calderon is not implicated in the healthcare fraud scheme.) Drobot was a client of Tom Calderon’s political consulting firm.
California law known as the “spinal pass-through” legislation allowed a hospital to pass on to insurance companies the full cost it had paid for medical hardware it used during spinal surgeries. As Drobot admitted in court, his hospital exploited this law, typically by using hardware that had been purchased at highly-inflated prices from companies that Drobot controlled and passing this cost along to insurance providers. Drobot bribed Ron Calderon so that he would use his public office to preserve this law that helped Drobot maintain a long-running and lucrative healthcare fraud scheme, which included Ron Calderon asking a fellow senator to introduce legislation favorable to Drobot. The payments from Drobot came in the form of summer employment for Ron Calderon’s son, who was hired as a summer file clerk at Pacific Hospital and received a total of $30,000 over the course of three years, despite the son doing little actual work at the hospital.
In another part of the bribery scheme, Ron Calderon accepted bribes from people he thought were associated with an independent film studio, but who were in fact undercover FBI agents. In exchange for the payments – including $3,000 monthly payments to Ron Calderon’s daughter for services she never provided – Ron Calderon agreed to support an expansion of a state law that gave tax credits to studios that produced independent films in California. The Film Tax Credit applied to productions of at least $1 million, but, in exchange for bribes, Ron Calderon agreed to support new legislation to reduce this threshold to $750,000, according to the plea agreement.
Ron Calderon took several official actions with respect to reducing the threshold for the Film Tax Credit. Ron Calderon signed a letter on his official Senate letterhead indicating that he would propose legislation lowering the threshold, introduced a “spot bill” he told an undercover agent would be used to propose such legislation, and promised that he would vote in favor of that proposed legislation.
In addition to the payments to his daughter for work she did not do, Ron Calderon had one of the undercover agents make a $5,000 payment toward his son’s college tuition and a $25,000 payment to Californians for Diversity, a non-profit entity that Ron Calderon and his brother used to improperly pay themselves.
As part of the agreement with the undercover agents, Ron Calderon performed official acts that led to the hiring of another undercover agent as a staffer in his district office at an annual salary of $45,105.
Ron Calderon “knowingly concealed his bribery scheme from the public by submitting a false Statement of Economic Interest, California Form 700, to the California Fair Political Practices Commission, which failed to disclose the money and other financial benefits defendant he had received from Drobot” and the undercover agents, Ron Calderon admitted in his plea agreement.
As part of Ron Calderon’s plea agreement, federal prosecutors have agreed not to seek a sentence of more than 70 months in federal prison, a term that is expected to be within the United States Sentencing Guidelines advisory range for this case. However, Judge Snyder would not be bound by any sentencing recommendation and could sentence Ron Calderon up to statutory maximum sentence of 20 years in federal prison.
Tom Calderon pleaded guilty last week to money laundering and admitted that he agreed to conceal bribe payments for his brother from the two undercover FBI agents by having the money go through his company, the Calderon Group. Tom Calderon allowed payments to be made to the Calderon Group “to conceal and disguise the fact that the money represented the proceeds of bribery,” according to his plea agreement.
Tom Calderon “deposited the $30,000 bribe payment from [the undercover agent] into the Calderon Group’s bank account and then wrote a check for $9,000 from
the Calderon Group’s bank account to Ronald S. Calderon’s daughter,” Tom Calderon admitted in his plea agreement.
“Tom Calderon provided a conduit for illicit bribery payments and played a key role in hiding corrupt activities from the voting public,” said United States Attorney Decker.
As part of Tom Calderon’s plea agreement, prosecutors have agreed to recommend a sentence of no more than one year in prison, which is expected to be within the United States Sentencing Guideline advisory range for the offense. However, when Judge Snyder sentencing Tom Calderon of September 12, she could impose a term of up to 20 years in prison, which is the statutory maximum penalty for the money laundering count.
“The Calderon brothers shamelessly defrauded the citizens of California to their right to honest services through an illicit bribery scheme," stated IRS Criminal Investigation’s Acting Special Agent in Charge Anthony J. Orlando. “IRS CI tirelessly untangled the web of fraudulent transactions that lead to these corrupt individuals being held accountable for their actions.”
The investigation into the Calderons was conducted by the Federal Bureau of Investigation and IRS Criminal Investigation. The case is being prosecuted by Assistant United States Attorneys Douglas M. Miller and Mack E. Jenkins of the Public Corruption and Civil Rights Section.
Former St. Joseph School Supeintendent Pleads Guilty to $662,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former superintendent of the St. Joseph School District and former president of the Board of Education pleaded guilty in federal court today to a fraud scheme in which he received more than $662,000 in pension payments to which he was not entitled.
Danny L. Colgan, 70, of St. Joseph, Mo., waived his right to a grand jury and pleaded guilty before U.S. District Judge Dean Whipple to a federal information that charges him with one count of wire fraud.
“Today’s criminal felony conviction brings to conclusion an extensive, thorough investigation into fiscal wrongdoing in the St. Joseph School District,” Dickinson said. “I commend the professionalism and perseverance of the FBI agents and prosecution team involved in this investigation. We do not anticipate charges against any additional defendants in the future.”
Under the terms of the plea agreement, Colgan will be sentenced to one year and one day in federal prison. He must pay $662,660 in restitution prior to his sentencing hearing (which has not yet been scheduled). Colgan was released on bond.
Colgan was the superintendent of the St. Joseph School District from July 1, 1992, until his retirement on Dec. 31, 2005. Colgan was entitled to retirement benefits from the Public School and Education Employee Retirement Systems of Missouri (PSRS) with the amount of the retirement benefits based upon his highest consecutive three years of reported salary.
By pleading guilty today, Colgan admitted that he caused others to falsely report his salary to the PSRS in order to increase his retirement benefits. Colgan knew that the salary figures he caused the school district to submit to PSRS on his behalf included fringe benefits and other payments to Colgan that were not eligible to be counted as salary under state statutes.
This fraud scheme began during the 1997-98 school year and lasted for eight years, until Colgan’s retirement. Colgan’s retirement benefits were calculated by using the amounts reported by the school district over the final three-year period before he retired.
During that final three-year period, the school district falsely reported that Colgan’s salary totaled $586,030. In reality, his salary totaled $343,286 – a difference of $242,744. As a result of the false statements to the PSRS, the school district made excess payments in the amount of $14,652 to the PSRS from 2003 through 2005, and Colgan was paid excess benefits that totaled $677,313 over a 10-year period.
Colgan’s salary reported for his final three years as school superintendent improperly included the following:
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Car Allowance/Travel Stipend: The $9,600 car allowance/travel stipend was a fringe benefit that was ineligible for retirement salary calculation purposes;
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Family Insurance Premiums: The family insurance benefits/premiums paid by the district of $5,225, $5,603, and $6,258 were fringe benefits that were ineligible for retirement salary calculation purposes;
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District Contribution to Taxable Annuity: The district payment for the school year 2004-2005 of $25,000 to purchase a taxable annuity for the superintendent was ineligible for retirement salary calculation purposes;
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“District Vehicle” Payments: In the final three years, the school district reported “District Vehicle” payments of $11,300, $11,300, and $28,975. The “District Vehicle” payments were separate from the $800 per month car allowance payments (described above). The “District Vehicle” payments were fringe benefits that were ineligible for retirement salary calculation purposes; and
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Unused Vacation Payment: An unused vacation payment in June 2005 of $10,820 was a fringe benefit that was ineligible for retirement salary calculation purposes.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI.
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Former Fugitive Sentenced to Prison for Florida Multimillion-Dollar Health Care Fraud SchemeRead the Press Release
A Cuban national was sentenced to 37 months in prison today for his role in a multimillion-dollar health care fraud scheme in the greater Tampa, Florida, area.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Ubert Guillermo Rodriguez, aka Ubert Guillermo Rodriguez Sigler, 47, pleaded guilty to conspiracy to commit health care fraud in March 2016. Rodriguez had been a fugitive following his indictment in 2013 until his arrest in October 2015. U.S. District Judge James D. Whittemore of the Middle District of Florida imposed today’s sentence and also ordered Rodriguez to pay $918,402 in restitution and to forfeit the same amount.
Rodriguez was the president and owner of G.R. Services Equipment & Supplies Inc., a Largo, Florida, company that purported to provide durable medical equipment to Medicare beneficiaries. Rodriguez admitted that from May 2013 through July 2013, his company submitted approximately $2,579,695 in false and fraudulent claims to Medicare seeking reimbursement for durable medical equipment not legitimately prescribed by doctors and not provided to beneficiaries. For example, Rodriguez’s company sought reimbursement for thousands of dollars of negative pressure wound therapy electrical pumps and sterile collagen dressings purportedly provided to Medicare beneficiaries in May and June 2013 that were not, in fact, legitimately prescribed by doctors or provided to beneficiaries. Federal law enforcement agents previously executed a seizure warrant on Rodriguez’s company’s bank account, resulting in the seizure of approximately $243,339 in proceeds of the health care fraud scheme.
HHS-OIG and the FBI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Middle District of Florida. Fraud Section Senior Trial Attorney Christopher J. Hunter prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to www.stopmedicarefraud.gov.
Former Chief Administrative Law Judge Pleads Guilty to Conspiracy to Retaliate Against InformantRead the Press Release
A former social security Chief Administrative Law Judge pleaded guilty in federal court today for conspiring to retaliate against a former employee of the Social Security Administration (SSA) who provided information regarding potential corruption and fraud to federal investigators.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division; Special Agent in Charge Howard S. Marshall of the FBI’s Louisville, Kentucky, Field Division; Special Agent in Charge Tracey D. Montaño of the Internal Revenue Service-Criminal Investigations (IRS-CI) Nashville, Tennessee, Field Office; and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG) Atlanta Regional Office made the announcement.
Charlie Paul Andrus, 66, of Huntington, West Virginia, pleaded guilty before U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky to a one-count information charging him with conspiracy to retaliate against an informant. Andrus had been an administrative law judge with the SSA for nearly 28 years, where he was responsible for adjudicating claims for disability benefits on behalf of the SSA. In 1997, Andrus was promoted to the position of Chief Administrative Law Judge for the hearing office located in Huntington.
According to court documents, on May 19, 2011, federal agents went to the Huntington hearing office and began securing evidence and interviewing witnesses as part of an investigation into allegations of potential corruption and fraud at the hearing office purportedly committed by Administrative Law Judge David Black Daugherty and an attorney in Kentucky, Eric Christopher Conn. That same day, The Wall Street Journal published an article critical of the Huntington hearing office. Andrus admitted that the article was personally embarrassing, as it cast both him and the Huntington hearing office in a negative light. Because of the article and the criminal investigation, Andrus was demoted from his position as Chief Administrative Law Judge.
Andrus admitted that at the time of his demotion, he was aware that an SSA employee from the hearing office was meeting with investigators and relaying information about potential federal offenses. According to his plea agreement, Andrus met with Conn shortly after the article was published and the two devised and implemented a plan to discredit the informant. According to court documents, the plan involved filming the informant violating a program that allowed employees to work from home, with the hope that the informant would be terminated as a result. By pleading guilty today, Andrus admitted that he was aware that the SSA employee reported truthful information to federal investigators and that he wanted to retaliate against the employee by interfering with the employee’s employment and livelihood.
In a related case, Conn and Daugherty were charged in an 18-count indictment with conspiracy, fraud, obstruction, false statement and money laundering in connection with a scheme to fraudulently obtain more than $600 million in federal disability payments for thousands of claimants. That indictment included charges related to the conduct that forms the basis of Andrus’ guilty plea. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The SSA-OIG, FBI, IRS-CI and HHS-OIG investigated the case. Trial Attorney Dustin M. Davis and Special Trial Attorney Trey Alford of the Criminal Division’s Fraud Section and Trial Attorney Kristen M. Warden of the Criminal Division’s Asset Forfeiture and Money Laundering Section are prosecuting the case.
Florida Man Pleads Guilty to Multi-Million Dollar Investment Fraud ConspiracyRead the Press Release
SYRACUSE, NEW YORK –Bruce Kane, 61, of Fort Lauderdale, Florida, an accountant and former resident of Ithaca, New York, pled guilty today in Federal Court in Syracuse, New York, to an indictment charging him with conspiracy to commit wire fraud, announced United States Attorney Richard S. Hartunian and FBI Special Agent In Charge Andrew W. Vale. Kane faces a maximum term of imprisonment of twenty years, a maximum fine of $250,000, an order of restitution in the amount of over $10 million and a forfeiture money judgment of over $10 million. Sentencing is scheduled for October 7, 2016 in Binghamton, New York.
Kane is a certified public accountant who was the managing partner for Global Financial Fund 8, LLP, a company that solicited and received over $10 million from investors located throughout the United States, including residents of the Northern District of New York. As part of his guilty plea, Kane admitted that he misappropriated approximately $1.5 million of the investors $10 million for his own personal use and enjoyment. Kane admitted to using investor funds to buy a $59,000 boat, using more than $280,000 for his own credit card payments, and to using the funds to rent a waterfront condominium in Florida. In an effort to avoid detection and allow him to continue to divert money for his own use, Kane helped orchestrate the payment of phony “profit” distributions to investors in 2004 and 2005, which were merely a partial return of their principal investment. Further, from 2004 to 2013 Kane repeatedly assured the investors via e-mail that their investments were secure when he knew that was not the case.
Kane is the second defendant to plead guilty in this case. On February 19, 2016, Burton Greenberg, who previously pled guilty to these charges on November 9, 2015, in Federal Court in Fort Lauderdale Florida, was sentenced to 97 months imprisonment, ordered to pay restitution in the amount of over $10 million and ordered to pay a forfeiture money judgment of over $10 million.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Geoffrey Brown.
Federal Criminal Complaint Charges Dallas Man in U.S. Postal Carrier AssaultRead the Press Release
DALLAS — Korey Larkin, 26, of Dallas, Texas, was arrested last week on a federal criminal complaint stemming from the assault of a U.S. Postal Carrier, announced U.S. Attorney John Parker of the Northern District of Texas.
According to the affidavit filed with the complaint, on June 3, 2016 Larkin approached a United States Postal Service Letter Carrier on Al Patterson Drive in Dallas and inquired about a package. The following day Larkin approached the same carrier and again inquired about the package. When the mail carrier explained that the package had been delivered, Larkin argued that the package was not delivered then reached into his pocket and displayed what appeared to be a handgun, poked the carrier in the cheek and punched him in the face.
A complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the offense as charged is 25 years in federal prison and a $250,000 fine.
The U.S. Postal Inspection Service and the U.S. Postal Service - Office of Inspector General is investigating. Special Assistant U.S. Attorney Jennifer Bray is in charge of the prosecution.
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Federal Court Bars Florida Man from Preparing Tax Returns for Others and Enters $1 Million Disgorgement JudgmentRead the Press Release
A federal court in Orlando, Florida, has permanently barred a Florida man from preparing tax returns for others and owning or operating a tax return preparation business, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced today.
The court also entered a $1 million judgment against Kerny Pierre-Louis of Windermere, Florida, on the United States’ claim for disgorgement of the proceeds he derived from preparing tax returns. The civil injunction and disgorgement judgment were signed by U.S. District Judge Anne C. Conway of the Middle District of Florida. Pierre-Louis agreed to entry of the injunction and disgorgement judgment, but did not agree to any of the facts alleged in the United States’ civil complaint.
In September 2014, the United States filed a civil injunction complaint against Pierre-Louis alleging that he and his employees prepared fraudulent tax returns for customers. The complaint alleged that return preparers in Pierre-Louis’s business targeted primarily low- to moderate-income customers with deceptive and misleading advertisements; prepared and filed fraudulent tax returns to increase their customers’ refunds; and profited through unconscionable, exorbitant and often undisclosed fees—all at the expense of their customers and the U.S. Treasury. According to the complaint, Pierre-Louis and his employees prepared federal tax returns on which they falsely claimed earned income and education credits, reported improper filing statuses, concocted phony businesses, claimed bogus income and expenses related to the non-existent businesses and fabricated job-related expenses. The complaint also named Jehoakim Victor and Lauri Rodriguez, allegedly former managers at Pierre-Louis’s tax preparation stores, as defendants. In February 2015, the court permanently enjoined Victor and Rodriguez from preparing tax returns for others and from owning or operating a tax return preparation business. Victor and Rodriguez agreed to entry of the injunction without admitting the allegations in the complaint.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Emporia Man Sentenced for Child PornographyRead the Press Release
WICHITA, KAN. - An Emporia man was sentenced Monday to six years in federal prison for distributing child pornography, Acting U.S. Attorney Tom Beall said.
Zachary E. Krueger, 33, Emporia, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted he distributed child pornography over the Internet using an encrypted peer-to-peer network. The investigation began with an Internet chat between Krueger and an undercover agent in Delaware. Krueger gave the agent a password to access and download files including images of prepubescent children engaged in sexual activities. Investigators traced Krueger’s IP address back to his home in Emporia.
Beall commended Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
District Man Sentenced to 42 Months in Prison for Causing New Year's Crash in Downtown WashingtonRead the Press Release
WASHINGTON – Malik Lloyd, 25, of Washington, D.C., was sentenced today to a total of 42 months in prison on charges of felony assault, destruction of property, and driving under the influence of alcohol or drugs stemming from a car crash early Jan. 1, 2016 in downtown Washington that caused significant injuries to at least three people, U.S. Attorney Channing D. Phillips announced.
Lloyd pled guilty on March 30, 2016, in the Superior Court of the District of Columbia, to three counts of assault with significant bodily injury, one count of destruction of property, and one count of driving under the influence of alcohol or a drug. In a separate case, Lloyd pled guilty on that same date to one count of unlawful possession of a firearm and one count of possession with intent to distribute cocaine.
The Honorable Zoe Bush sentenced Lloyd to 42 months in prison for the assault and destruction of property charges in connection with the Jan. 1, 2016 incident, as well as six months in prison for driving under the influence, and a 36-month prison term in the separate drug case. The sentences are to run concurrently. After his prison term, Lloyd will be placed on two years of supervised release.
According to the government’s evidence, on Jan. 1, 2016, at about 1:30 a.m., Lloyd was driving a Chrysler 200 northbound on 17th Street NW. He struck a Honda CRV that was also driving on 17th Street. After the collision, Lloyd drove away, making a right turn onto L Street NW and driving up onto the sidewalk in front of Barcode, a bar located in the 1600 block of L Street NW. The car that he was driving struck a tree box, tree, and several pedestrians on the sidewalk before finally striking a light pole on the north side of the sidewalk.
At least 13 people were assaulted as the result of the collision; some were injured directly by the vehicle and others indirectly by flying debris. At least three people incurred significant bodily injury that required immediate hospitalization or medical treatment. After the crash, while being treated by emergency medical personnel, Lloyd stated to the Metropolitan Police Department (MPD) that he had two glasses of champagne.
The MPD officer smelled an odor of an alcoholic beverage coming from Lloyd’s mouth and observed that Lloyd’s eyes were bloodshot. At Howard University Hospital, Lloyd admitted to drinking in the club and smoking marijuana prior to going there. At the time of testing, his alcohol concentration level was 0.20 grams of alcohol per 100 milliliters of blood, which is beyond the legal limit in the District of Columbia. There was also the presence of marijuana in his blood. Lloyd has been in custody since his arrest after the crash.
The other case stemmed from a search carried out by law enforcement on Oct. 30, 2014, of Lloyd’s residence in the 6000 block of Clay Street NE. According to the government’s evidence, MPD members found significant quantities of drugs inside the residence, including bottles of liquid PCP and multiple stashes of crack cocaine. MPD members also found drug paraphernalia, suggesting the packaging and distribution of narcotics, including multiple digital scales, cutting agents, and small “zip” bags used for street-level distribution of narcotics. MPD members also found boxes of ammunition and three firearms, including two semi-automatic handguns that were found in Lloyd’s bedroom.
In announcing the sentences, U.S. Attorney Phillips commended the work of those who investigated each of the cases for the Metropolitan Police Department, as well as the District of Columbia Office of the Attorney General, which handled the prosecution of the charge of driving while under the influence. He also expressed appreciation for the assistance provided by the DEA and the District of Columbia Fire and Emergency Medical Services Department. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tiffany Fogle and Victim/Witness Advocate Diana Lim. Finally, he commended Assistant U.S. Attorneys Katherine Earnest, Michael Romano, Thomas Saunders, and Anwar Graves prosecuted the cases.
Dallas Man Sentenced on Cocaine, Methamphetamine and Firearms ConvictionsRead the Press Release
DALLAS — A Dallas man was sentenced to a lengthy federal prison sentence following his guilty plea to drug distribution and firearms offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Jose Zambrano, Jr., age 24, was sentenced by U.S. District Judge David C. Godbey to serve a total of 130 months in federal prison. Zambrano pled guilty in December 2015 to one count of conspiracy to distribute and possess with intent to distribute controlled substances—cocaine and methamphetamine—and one count of possessing a firearm in furtherance of this drug trafficking crime.
According to documents filed in the case, on several occasions from February 2015, through June 2015, Zambrano sold cocaine and methamphetamine from his home in Dallas to undercover law enforcement officers. Further, evidence presented at sentencing showed that young children were sometimes present during these illegal drug sales, and that loaded firearms had been strategically placed throughout the home to protect Zambrano’s drugs and the money generated from drug sales.
On June 25, 2015, law enforcement officers arrested Zambrano and executed a search warrant at his residence, where they found approximately 200 grams of cocaine, more than $38,000 in drug-cash, and 7 firearms.
Dallas Police Department investigated the case and Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay prosecuted.
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Convicted Felon Caught Hunting on National Park Service Land Pleads Guilty to Federal Firearm ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL A. PETRO, 44, of Watertown, pleaded guilty today in Hartford federal court to one count of unlawful possession of a firearm and ammunition by a convicted felon.
According to court documents and statements made in court, on the morning of December 10, 2015, a law enforcement officer was patrolling part of the Appalachian Trail in Kent, Conn. Posted signs in the area state that the land is National Parks Service property and is closed to hunting. The officer observed PETRO in camouflage gear holding a Savage Arms/Stevens Model 311, 12 gauge shotgun, which was breached open and unloaded. After the officer asked PETRO where the shotgun shells were and PETRO denied having any, the officer and her canine located two 12 gauge shotgun shells under fallen leaves approximately 20 yards away from where PETRO was standing. A subsequent search of PETRO’s jacket revealed two additional shotgun shells.
PETRO’s criminal history includes a felony conviction for assault. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
PETRO is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on September 14, 2016, at which time he faces a maximum term of imprisonment of 10 years and a fine up to $250,000.
PETRO is in state custody on unrelated charges.
This matter is being investigated by the U.S. Fish and Wildlife Service and the Environmental Conservation Police of the Connecticut Department of Energy and Environmental Protection, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Chief Financial Officer of Educational Services Company Admits Tax Crimes Resulting in $1.4 Million Tax LossRead the Press Release
TRENTON, N.J. - A Pottersville, New Jersey, man today admitted filing a false tax return and evading corporate taxes of American Tutor Inc., a company that offered supplemental educational services to New Jersey school districts, U.S. Attorney Paul J. Fishman announced.
James Wegeler, 73, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to one count of corporate tax evasion and one count of aiding and assisting in the filing of a false tax return as charged in the information filed today.
According to documents filed in this case and statements made in court:
Wegeler was a certified public accountant who served as the vice president and chief financial officer of American Tutor. In 2013, Wegeler filed a return on behalf of American Tutor that contained materially false information in order to reduce American Tutor’s tax liability. Wegeler intentionally inflated American Tutor’s business expenses by claiming that it paid wages, tips and other compensation to its employees above and beyond what it had actually paid during the tax year 2012.
In addition, in 2011, Wegeler intentionally prepared a fraudulent tax return for an individual taxpayer that did not include substantial income the taxpayer had earned in tax year 2010.
Wegeler admitted that his actions resulted in a total tax loss of $1,494,521 to the IRS.
The corporate tax evasion charge carries a maximum potential penalty of five years in prison. The charge of aiding and assisting in the filing of false tax returns carries a potential penalty of three years in prison. Both charges are punishable by a potential $250,000 fine. Sentencing is scheduled for Oct. 5, 2016.
U.S. Attorney Fishman credited special agents of the IRS, under the direction of Special Agent in Charge Jonathan D. Larsen, and special agents of the U.S. Department of Education, under the direction of Special Agent in Charge Brian M. Hickey, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney José R. Almonte of the U.S. Attorney’s Office Special Prosecutions Division.
Defense counsel: Thomas Calcagni, Newark, New Jersey
Chelan Washington Man Sentenced to 41 Months in Federal Prison for Attempted EscapeRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that that Bud Ray Brown, age 33 of Chelan, Washington, was sentenced today after having previously plead guilty to the felony charge of Attempted Escape. Senior United States District Judge Justin L. Quackenbush sentenced Brown to a 41-month term of imprisonment, to be served consecutive to an existing 180-month sentence from 2013 for a federal firearms violation, and to be followed by a 1-year term of court supervision upon release from federal prison.
According to the information disclosed during court proceedings in this case, on August 19-20, 2015, Brown attempted to escape from his jail cell located on an upper floor of the Spokane County Jail after breaching his jail cell window and after removing the window frame and glass. Brown had also used a tool to chip away at the concrete surrounding the window frame in an attempt to enlarge the actual window opening. Brown had deployed a sturdy rope out of his jail cell window which was braided/woven together using sheets/linens and which was tied off on a metal bunk bed in his cell. Brown’s attempt to escape was detected after persons below reported seeing debris (a mattress, glass and metal) and with the sighting of a deployed makeshift rope dangling from an upper jail cell window. Officers also found a pair of pants crudely sewn together from a blanket lying on the ground below Brown’s cell near the other debris. At the time of his attempted escape, Brown was serving a 180-month federal sentence stemming from a 2013 firearms conviction and had been returned from federal prison and placed in the Spokane County Jail on a writ ad prosequendum to face a 2012 state charge.
Michael C. Ormsby said “This attempt to escape from the Spokane County Jail was striking and brazen and fortunately it was detected before the Defendant could further damage the jail or succeed in his escape efforts. The consecutive nature of this sentence will certainly help in deterring others from making similar attempts to escape from jail. My office commends the collaborative investigation seen in this case as shared by Spokane County Detention Services, the Spokane County Sheriff’s Office, the U.S. Marshals Service, and the FBI.”
The investigation was conducted by the U.S. Marshals Service, the FBI, the Spokane County Sheriff’s Office, and Spokane County Detention Services. This case was prosecuted by Jared C. Kimball, an Assistant U.S. Attorney for the Eastern District of Washington.
Charleston drug dealer sentenced to life in Federal prison for murdering witnessRead the Press Release
CHARLESTON, W.Va. – A Charleston man who murdered a witness was sentenced today to life in federal prison, announced Acting United States Attorney Carol Casto. Marlon Dewayne Dixon, 39, previously pleaded guilty to witness tampering by killing.
At approximately 3:00 a.m. on July 12, 2014, Dixon lured Branda Mae Delight Basham, the murder victim, to a secluded section of railroad track in Charleston near the 700 block of Breece Street. At gunpoint, Dixon forced Basham to admit working with police to make undercover purchases of heroin from him. He then repeatedly shot Basham with a 9 mm pistol, killing her. She was 22 years old. After the murder, Dixon went to a nearby residence on Madison Street where he cleaned himself and disposed of his clothing. The next day, police interviewed a local woman who identified the Madison Street residence where she had seen Dixon shortly before the time of the murder.
Detectives from the Charleston Police Department executed a search warrant at the Madison Street residence. Police seized video from a surveillance camera that recorded Dixon wiping down the front door of the residence and carrying away several bags. Detectives also seized a pair of Dixon’s shoes found at the residence. Basham’s DNA was recovered from bloodstains on the shoes.
On July 17, 2014, Dixon surrendered to Charleston Police. He waived his Miranda rights and confessed to killing Basham. He admitted that he intended to retaliate against Basham for cooperating with law enforcement and to prevent her from testifying against him.
At the time of the murder, Dixon had been previously convicted of several felony offenses. These include federal drug trafficking convictions in 1999 and 2006, and a Kanawha County conviction of malicious wounding in 2007.
“Branda Basham’s murder is a horrible tragedy and a stark reminder of the enormous cost of drug crime. I want the Basham family to know that the prosecutors and law enforcement who took part in this investigation join me in sending our deepest condolences,” said Acting United States Attorney Carol Casto. “Heroin and opioid trafficking has ravaged our community, which is why aggressively prosecuting violent drug dealers like Marlon Dixon, along with supporting treatment options for recovering addicts, remains a top priority for the U.S. Attorney’s Office and our law enforcement partners. It is also important to note the courage of citizens who came forward to provide crucial information that led to Dixon’s arrest and prosecution. We must all continue working together if we want to effectively fight the drug epidemic.”
This case was investigated by the Charleston Police Department, the Metropolitan Drug Enforcement Network Team, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Joshua Hanks is in charge of the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment to reduce gun crime in the United States by working with existing local programs targeting gun violence. This case was also prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities, including the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Buffalo Man Sentenced on Marijuana ChargeRead 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 Keith Goss, 47, of Buffalo, NY, who was convicted of attempted possession with intent to distribute 100 kilograms or more of marijuana, was sentenced to 60 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that on June 12, 2013, the defendant attempted to take possession of a crate which was to be delivered to an address on Fillmore Avenue in Buffalo after being shipped from Tucson, Arizona. The crate contained 315 pounds of marijuana valued in excess of $250,000. Law enforcement officers intercepted the crate of marijuana before it was delivered to the Fillmore Avenue address where the defendant was awaiting its arrival with his two sons. Goss had asked his sons, who were not aware of its contents, to pick up the package.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division and the Tonawanda Police Department, under the direction of Jerome C. Uschold III, with the assistance of the DEA Office in Nogales, Arizona.Bakersfield Man Sentenced to over 3 Years in Prison for Firearm OffenseRead the Press Release
FRESNO, Calif. — Bryson LaPaul Blair, 30, of Bakersfield, was sentenced today by United States District Judge Lawrence J. O'Neill to three years and 10 months in prison for being a felon in possession of a firearm and ammunition, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, on April 21, 2015, while investigating a shooting near an elementary school, Bakersfield police officers located a bullet-ridden vehicle at Blair’s residence that matched the description of one of the vehicles involved in the shooting. During the subsequent execution of a search warrant, officers found a stolen, loaded Russian assault weapon under Blair’s bed and 145 rounds of ammunition. Blair was previously convicted in Kern County of second degree robbery and was prohibited from possessing firearms and ammunition.
This case was the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Bakersfield Police Department. Assistant United States Attorney Karen A. Escobar prosecuted the case.
Arizona Man Sentenced to Federal Prison for Conspiracy and Distribution of Methamphetamine Following TrialRead the Press Release
BISMARCK - US Attorney Christopher C. Myers announced that on June 13, 2016, Rocky Thomas Mayfield, 31, of Goodyear, AZ., was sentenced before U.S. District Judge Daniel L. Hovland after having been convicted by a federal jury on February 25, 2016, of Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine; two counts of Possession with Intent to Distribute Methamphetamine; and one count of Possession of a Firearm by a Convicted Felon. Judge Hovland sentenced Mayfield to serve concurrent sentences of 20 years’ imprisonment on the three drug counts and a concurrent 10 years’ imprisonment on the firearm count.
In early 2015, Mayfield and his associates arranged for the delivery of methamphetamine from Arizona to the Williston, North Dakota, area. On Feb. 11, 2015, law enforcement officials conducted a traffic stop near Berthold, ND, where they discovered approximately one pound of methamphetamine in a car that Mayfield had rented. After executing a search warrant at a hotel in Minot, law enforcement officials discovered another ten pounds of methamphetamine, which was believed to be the largest methamphetamine seizure ever in the state of North Dakota at that time. If sold by the ounce, it would have had an approximate street value of $200,000-350,000.
The case was investigated by the Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Berthold Police Department, as well as members of the Ward County Narcotics Task Force, which includes law enforcement officials from the North Dakota Bureau of Criminal Investigation, the Ward County Sheriff’s Department, and the U.S. Border Patrol.
Assistant U. S. Attorney David Hagler and Special Assistant U.S. Attorney Jeremy Ensrud prosecuted this case.
Akron man convicted of extortion following weeklong trialRead the Press Release
A jury convicted an Akron man on five counts for related to an extortion plot, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Franklin D. Conley, 28, was convicted on one count of violating the Hobbs Act, three counts of use of a communication facility to facilitate a drug offense and one count of interstate communication with intent to extort following a weeklong trial. He was acquitted of one count of possession with intent to distribute heroin.
Conley and Patrick Griffin repeatedly threatened the victim and his family, beginning in February 2015, with serious physical harm or death if they were not given money or introduced to a source of illegal drugs, according to court documents and trial testimony.
Conley is scheduled to be sentenced on Sept. 29.
Griffin, 29, also of Akron, has pleaded guilty to his role in the crime and is awaiting sentencing.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorneys Teresa Riley and Robert Bulford
Sunday 12 June 2016
Attorney General Loretta E. Lynch Statement on Orlando, Florida, Terrorist AttackRead the Press Release
Attorney General Loretta E. Lynch released the following statement regarding the terrorist attack in Orlando, Florida, early this morning:
“I have been briefed by Deputy Attorney General Sally Yates and FBI Director James Comey on the horrific terrorist attack in Orlando and will continue to receive updates on the situation. My thoughts and prayers are with the victims’ families during this very difficult time. The Department of Justice, including the FBI, the ATF, the National Security Division and the U.S. Attorney’s Office for the Middle District of Florida, is fully supporting the ongoing investigation. The Justice Department's Community Relations Service has been in contact with local authorities, community leaders and local working groups to offer any assistance as needed. Additionally, I will no longer participate in the U.S.-China Cyber Ministerial in Beijing and will travel back to Washington immediately to continue monitoring the developments.”
President Obama on the Tragic Shooting in Orlando
Statement from Vice President Biden on Mass Shooting in Orlando
Friday 10 June 2016
Youth Basketball Coach Indicted on Child Pornography Charges for Allegedly Enticing Boys to Engage in Sexually Explicit Photos and VideosRead the Press Release
CHICAGO — A youth basketball coach from Chicago has been indicted on federal child pornography charges for allegedly paying minor boys to be photographed and video-recorded while engaged in sexually explicit conduct.
BRADLEY J. AMES, 35, and a co-conspirator paid approximately $100 to $650 to the minor boys in return for being photographed and video-recorded while engaged in various sexual acts, according to the indictment. Ames and the co-conspirator then transmitted the photos and videos over the Internet, the indictment states.
The pair met most of the minors online after the co-conspirator set up a Facebook profile for a fictitious female named “Hannah,” and used it to encourage young males to share photos and information about themselves, according to the indictment. Ames then selected certain minors who had communicated with “Hannah” so that the co-conspirator could pursue sexually explicit photos and videos of them, the indictment states.
The six-count indictment was returned yesterday in federal court in Chicago. It charges Ames with one count of conspiracy to produce child pornography, four counts of producing child pornography, and one count of knowingly receiving child pornography.
Ames will be arraigned before U.S. Magistrate Judge Jeffrey T. Gilbert on June 15, 2016, at 1:45 p.m.
In addition to contacting children online, the indictment alleges that Ames identified at least one minor victim through a boy he met while coaching youth basketball. Ames provided the minor’s Facebook page to the co-conspirator to facilitate contacting the child, the indictment states. The indictment further alleges that Ames sometimes paid the co-conspirator to engage in sexually explicit conduct with the minors.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and James M. Gibbons, Acting Special Agent-in-Charge of the Chicago Office of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
The conspiracy and production counts are punishable by a minimum sentence of 15 years in prison and a maximum of 30 years, while knowingly receiving child pornography carries a minimum sentence of five years in prison and a maximum of 20 years.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Yusef Dale.
Indictment
York Woman Sentenced to Prison for Threatening A Federal Witness via Social MediaRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Mae Joy Harris, age 25, York, Pennsylvania, who previously pleaded guilty to making threatening interstate communications, was sentenced to four months in prison today by U.S. District Court Judge Yvette Kane in Harrisburg.
According to United States Attorney Peter Smith, the case arose out of a trial in September 2015 involving 12 defendants, known as Southside York gang members. The jury trial testimony included witnesses who were themselves charged criminally and who agreed to cooperate in the prosecution in exchange for favorable consideration in their own cases. One of the witnesses, J.B. aka “Boogie,” testified on October 5-6, 2015 as a government witness and implicated former associates in criminal activity. On October 6, 2015, Harris posted on her Facebook profile page under the name “Mae Elliot” and made threatening statements towards J.B. and his family as a consequence of J.B.’s testimony.
Harris was indicted by a federal grand jury in Harrisburg in November 2015, as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). She pleaded guilty in January 2016.
According to ATF, this is the first prosecution of a case in the Middle District of Pennsylvania it has had involving use of social media to threaten witnesses. The U.S. Attorney’s Office will prosecute all cases of threats to government witnesses in any form or media as a very high priority.
Judge Kane also ordered Harris to serve one year on supervised release following her prison sentence. Harris is to turn herself into the Federal Bureau of Prisons on July 11, 2016.
Assistant U.S. Attorney Chelsea Schinnour prosecuted the case.
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Virginia Music Volunteer Sentenced to 300 Months in Prison for Production of Child PornographyRead the Press Release
A Virginia man who served as a volunteer with the music program at Grace E. Metz Middle School in Manassas, Virginia, was sentenced today to 25 years in prison for production of child pornography, attempted coercion and enticement of a minor, and distribution and receipt of child pornography.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C., and Chief Douglas Keen of the Manassas City Police Department made the announcement.
David Alexander Battle II, 24, of Manassas, was sentenced by U.S. District Judge Claude M. Hilton of the Eastern District of Virginia, who also ordered Battle to serve 15 years of supervised release. Battle was convicted by a federal jury on March 10, 2016.
According to evidence presented at trial, Battle used his home computer to share images of child sexual exploitation via webcam on a chat website in April 2015. Battle also posed as a minor girl on another chat platform and chatted with minor boys, including two boys he personally knew, coercing and enticing them to send him sexually explicit images of themselves. The trial evidence also showed Battle’s laptop contained gigabytes of child sexual exploitation files.
HSI and the Manassas City Police Department investigated the case, with assistance from the Herndon, Virginia, Police Department and the Northern Virginia/Washington, D.C., Internet Crimes Against Children Task Force. Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jay Prabhu of the Eastern District of Virginia are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Unionville Man Pleads Guilty to Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Unionville, Mo., man pleaded guilty in federal court today to possessing child pornography.
Joel R. Bremer, 50, of Unionville, pleaded guilty before U.S. District Judge Roseann Ketchmark to the charge contained in an April 15, 2015, federal indictment.
According to today’s plea agreement, the Putnam County Sheriff’s Department received a report in February 2013 from a 19-year-old female that she had been sexually abused by Bremer for a period of time when she was a child. She also stated that Bremer had taken nude photographs of her when she was a minor and that she had recently seen those pictures on his laptop computer, which he kept in his home.
Investigators with the Putnam County Sheriff’s Department and the Kirksville Regional Computer Crimes Unit executed a search warrant at Bremer’s residence on Feb. 11, 2013, and seized a laptop computer and several CD/DVDs, which Bremer must forfeit to the government. A forensic analysis was conducted at the Kirksville Regional Computer Crime Laboratory. No pornographic images of the reporting party were located; however, the analysis located approximately 1,472 photos and 40 videos which contained child pornography that appeared to have been obtained via the Internet. The content of the numerous images and video files include depictions of adults engaging in sexual conduct with prepubescent children, including toddlers.
Under the terms of today’s plea agreement, the government will seek a maximum sentence of 10 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the Putnam County, Mo., Sheriff’s Department, the Kirksville, Mo., Police Department and the Kirksville Regional Computer Crimes Unit.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Two plead guilty to unlawful possession of firearmsRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two individuals pled guilty to unlawful possession of firearms today in federal court in Martinsburg, United States Attorney William J. Ihlenfeld, II, announced.
Dione Aliquan Taylor, 29, of Martinsburg, who has pervious felony convictions in state court in New Jersey, was discovered in unlawful possession of a .45 caliber pistol in December 2015 in Jefferson County, West Virginia. He was previously convicted of the felony offenses of “Conspiracy to Violate Narcotics Laws,” “Possession with the Intent to Distribute CDS on School Property,” and “Possession with Intent to Distribute CDS on School Property” in the Superior Court of Essex County, New Jersey. Taylor pled guilty today to one count of “Felon in Possession of a Firearm.” He faces up to 10 years in prison and a fine of up to $250,000.Thomas James King, 26, of Clarksburg, Maryland, who has previous felony convictions in federal court in West Virginia and state court in Maryland, was discovered in unlawful possession of a 9mm pistol in Berkeley County, West Virginia. He was previously convicted of the felony offenses of “Conspiracy to Commit Robbery” in the Circuit Court for Montgomery County, Maryland, and “Felon in Possession of a Firearm” in the United States District Court for the Northern District of West Virginia. King pled guilty today to one count of “Felon in Possession of a Firearm.” He faces up to 10 years in prison and a fine of up to $250,000.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Shawn Adkins prosecuted Taylor and Assistant U.S. Attorney Paul Camilletti prosecuted King on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Two Men Plead Guilty to Second-Degree Murder While Armed in Broad Daylight Shooting in Southeast WashingtonRead the Press Release
WASHINGTON – Markell Alston, 23, and Darryl Malloy, 21, both formerly of Washington, D.C., pled guilty today to second-degree murder while armed in the broad daylight slaying of a man in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Both men pled guilty in the Superior Court of the District of Columbia to the murder charge in the death of Kevin Owens. Each also pled guilty in separate cases to assault with a dangerous weapon. The Honorable Robert E. Morin scheduled sentencing for Sept. 23, 2016.
According to the government’s evidence, Alston and Malloy were good friends who lived in the Woodland Terrace area of Southeast Washington. Mr. Owens, 22, was from the Congress Park area of Southeast Washington. In December 2014 and January 2015, Alston was angry that Mr. Owens had started dating the mother of two of Alston’s children.
On Jan. 19, 2015, Martin Luther King Jr. Day, at about 2 p.m., Mr. Owens parked his car in the 3400 block of 13th Place SE, in the Congress Park area. While Mr. Owens was sitting in the driver’s seat of his car, Alston and Malloy approached the vehicle from behind. Both defendants were armed, and both fired multiple shots at Mr. Owens. They then ran away. Mr. Owens, who was struck by seven bullets, was found on the street near the driver’s side of his car. The shooting was captured by a high-definition surveillance video camera installed in the area by the Metropolitan Police Department.
In a separate case, Alston pled guilty to assaulting another inmate while he was in custody at the D.C. Jail in a noontime incident on Nov. 18, 2015. According to the government’s evidence, he and another inmate stabbed the victim with sharp objects. A corrections officer ran over and halted the attack. The victim was taken to a hospital and treated for 23 stab wounds, including on his head, neck, back, and arms.
Malloy pled guilty to accosting a contractor who was installing safety lights on the afternoon of Sept. 15, 2014, on the roofs of buildings in the Woodland Terrace area. While the contractor was on a ladder, Malloy approached him, pulled a gun from his waistband, and yelled that he did not want the lights installed.
In announcing the pleas, U.S. Attorney Phillips commended the work of the Metropolitan Police Department, which investigated the murder case. He also expressed appreciation for the assistance provided by the District of Columbia Department of Corrections, the District of Columbia Department of Forensic Sciences, the FBI, and Bode Cellmark Forensics. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Zekiah Wright, former Paralegal Specialist Karen Hansen, Investigative Analyst Zachary McMenamin, Criminal Investigators John Marsh and Durand Odom, Victim/Witness Advocate Marcia Rinker, Supervisor Security Specialist Michael Hailey, and Victim/Witness Security Specialists M. Laverne Forrest and Tanya Via.
Finally, U.S. Attorney Phillips commended the efforts of Assistant U.S. Attorneys Natalia Medina, Jeffrey Nestler, Lindsey Merikas, and Dineen Baker, who investigated and secured indictments in the various cases.
Two Members of Cherry Hill Group Sentenced to 25 Years and 10 Years in Prison for Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Steven Jackson, a/k/a Cutty, age 25; and Alonzo Clea, a/k/a Zo, age 26, both of Baltimore, to 25 years in prison, and 10 years in prison, respectively, both followed by five years of supervised release, for conspiring to participate in a racketeering enterprise in connection with their gang activities as members of the “Up the Hill,” “Up da Hill” and “UDH” ( UDH) organization, which operates in the Cherry Hill section of Baltimore.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
“Many shootings and murders in Baltimore City involve disputes between rival gangs,” said U.S. Attorney Rod J. Rosenstein. “Police and prosecutors are saving lives by holding accountable the criminals who turned Cherry Hill into a war zone.”
According to their plea agreements, from at least 1997 to 2013, the UDH organization operated in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members have been in a violent dispute with both the “Coppin Court” and “Little Spelman,” which are organizations involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” or “Down da Hill.” In addition to selling drugs, UDH members have also committed murders, assaults and robberies.
Some of these acts of violence include the August 28, 2011 murder of Little Spelman member Dewayne Jones; the January 20, 2012 murder of Little Spelman leader Dominic Hope; the June 13, 2009 non-fatal shooting of Tavon Staley; and the August 9, 2009 murder of Charles Pratt.
Jackson admitted that on October 3, 2006, he shot a rival gang member in the 600 block of Cherry Hill Road; on August 8, 2007, he committed an armed robbery in the 800 block of W. Patapsco Avenue; and on January 22, 2011 he and another individual shot and killed rival Little Spelman gang member Harry Hicks, all in Baltimore.
Clea admitted that he possessed a firearm on November 10, 2008 near the 600 block of E. Patapsco; September 15, 2009 near the 5000 block of E. Monument; and July 19, 2014 near the 2800 block of Spelman Road, all in Baltimore.
To date, a total of 35 Cherry Hill gang members have pleaded guilty to their participation in the racketeering conspiracy. Little Spelman gang member Davon Martin, age 26, admitted to drug dealing and the murders of two UDH gang members and was sentenced to 35 years in prison. UDH member Dominic Evans, a/k/a “FlatLine,” age 25, admitted to drug dealing, two stabbings and to his participation in a murder, and was sentenced to 30 years in prison.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Two Buffalo Men Arrested on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Jorge Rivera, 27, and Luis Rosario, 39, both of Buffalo, NY, were arrested and charged by criminal complaint with conspiring and attempting to possess with intent to distribute 500 grams or more of cocaine. The charge carries a mandatory minimum sentence of five years in prison, a maximum of 40 years and a $5,000,000 fine.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that according to the complaint, on June 8, 2016, the United States Postal Inspection Service executed a search warrant for a parcel sent from Puerto Rico and addressed to Jorge Rivera at 465 Woodlawn Avenue in Buffalo. Law enforcement officers discovered a package containing a white powdery substance that field tested positive for cocaine. Later that same day, an undercover law enforcement officer delivered the package to the listed address, which contained sham cocaine. Rivera signed for the package. Subsequently, Rosario arrived at the residence and law enforcement officers executed a search warrant at the residence. Rivera and Rosario fled to the lower apartment of the building and threw the package out a window which was recovered by the officers. The officers then arrested Rivera and Rosario.
The defendants made an initial appearance before U.S. Magistrate Judge Michael J. Roemer. Rivera was released on conditions; a detention hearing for Rosario is scheduled for June 13, 2016 at 2:00 p.m.
The criminal complaint is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division and the United States Postal Inspection Service, under the direction of Inspector in Charge Shelly Binkowski.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
Three Defendants Arrested in Connection with Illegal Fentanyl Pill Manufacturing OperationRead the Press Release
SAN FRANCISCO - Kia Zolfaghari, King Edward Harris II, and Candelaria Dagandan Vazquez were named in a federal criminal complaint alleging that they conspired to run an illegal fentanyl pill manufacturing operation out of an apartment in the Sunset District of San Francisco, announced United States Attorney Brian J. Stretch and Drug Enforcement Administration Special Agent in Charge John J. Martin.
According to the complaint, which is now unsealed, Zolfaghari, 39, of San Francisco, is alleged to have operated a pill press in his apartment to manufacture counterfeit oxycodone pills, which did not contain oxycodone but instead were laced with fentanyl. Fentanyl, a Schedule II controlled substance, is a highly potent opiate that can be diluted with cutting agents to create counterfeit pills that attempt to mimic the effects of oxycodone, and can typically be obtained at a lower cost than genuine oxycodone. However, small variations in the amount or quality of fentanyl can have significant effects on the potency of the counterfeit pills, raising the danger of overdoses.
The complaint alleges that Zolfaghari sold over 1,500 fentanyl-laced pills, over the course of six transactions, to a confidential source working with law enforcement. The complaint further alleges that Harris, 34, of Oxnard, brokered these narcotics sales in a series of recorded calls with the confidential source and hand-delivered two of those purchases to the confidential source.
According to the complaint, Zolfaghari also sold the fentanyl-laced pills to customers through an online marketplace. The complaint alleges that Zolfaghari’s wife, Vazquez, 38, of San Francisco, conspired with him to carry out his drug trafficking operation, and delivered packages of pills for mailing, purchased packaging supplies, and accepted payments for narcotics via her bank account.
Zolfaghari, Harris, and Vazquez were arrested this morning and made their initial appearance today in federal court in San Francisco before the Honorable Laurel Beeler, U.S. Magistrate Judge. Their next court appearance will be before Judge Beeler at 9:30 a.m. on Monday, June 13, 2016.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of 20 years, and a fine of $1,000,000 or twice the gain or loss from their criminal activity, for each violation of 21 U.S.C. §§ 841(a)(1) and 846. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Rita Lin is prosecuting the case with the assistance of Amanda Martinez and Theresa Benitez. The prosecution is the result of a seven-month investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Internal Revenue Service, the United States Postal Service, and Customs and Border Protection, with assistance from the San Francisco Police Department and San Francisco Fire Department.
This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, (OCDETF) a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Spokane, Washington Man Sentenced to Nine Years in Federal Prison for Possession of Child PornographyRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Randall Maurice Peterson, age 37, of Spokane, Washington, was sentenced after having previously plead guilty on March 9, 2016 to Possession of Child Pornography. United States District Judge Wm. Fremming Nielsen sentenced Peterson to a nine-year term of imprisonment, to be followed by a life-term of court supervision after he is released from Federal prison. In addition, Peterson was ordered to forfeit to the United States the digital memory card that he used to download and store child pornography. Peterson will also be required to register as a sex offender.
According to information disclosed during the court proceedings, Peterson had a digital memory card (“SD card”) that he used to possess three videos and 34 photographs of a prepubescent child involved in various sexual acts.
Michael C. Ormsby stated, “The United States Attorney’s Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes. Prosecuting offenders who possess child pornography is one of the top priorities of the United States Attorney’s Office.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Federal Bureau of Investigation and the Spokane Police Department. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and Project Safe Childhood Coordinator for the Eastern District of Washington.