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Friday 10 June 2016
Spokane, Washington Man Sentenced to Five Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that John Marion Hatlestad, age 62, of Spokane, Washington, was sentenced after having previously plead guilty on March 9, 2016 to Distribution of Child Pornography. United States District Judge Wm. Fremming Nielson sentenced Hatlestad to a five-year term of imprisonment, to be followed by a fifteen-year term of court supervision after he is released from Federal prison. In addition, Hatlestad was ordered to forfeit to the United States his computer and other digital items that he used to store and distribute child pornography. Hatlestad will also be required to register as a sex offender.
According to information disclosed during the court proceedings, Hatlestad was using a Peer to Peer file sharing account to share and distribute child pornography images over the Internet. Undercover law enforcement agents located child pornography files Hatlestad was making available for download and later obtained a federal search warrant for Hatlestads’ residence. On March 6, 2015, Homeland Security Investigations Agents executed a federal search warrant at Hatlestads’ residence and seized Hatlestads’ computer and digital devices that he used to store and distribute child pornography. A forensic examination of Hatlestads’ personal computer revealed 5,807 child pornography images and 87 videos of child pornography.
Michael C. Ormsby stated, “I commend the Asotin County Sheriff’s Office and Homeland Security Investigations for their efforts in successfully investigating this case. Prosecuting offenders who distribute child pornography is one of the top priorities of the United States Attorney’s Office for in the Eastern District of Washington. This Office, together with its law enforcement partners, is committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes.
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 Homeland Security Investigations and the Asotin County Sheriff’s Office. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and Project Safe Childhood Coordinator for the Eastern District of Washington.
Seymour woman sentenced for defrauding small businessRead the Press Release
Indianapolis – United States Attorney Josh Minkler today announced the sentence of a Seymour, Indiana, woman for her role in a fraud scheme. Angela Kincaid, 44, was sentenced to 41 months (3 ½ years) in federal prison by U.S. District Court Chief Judge Richard L. Young.
“Fraud cannot, and will not, be tolerated – especially fraud by company insiders,” said Minkler. “When greed drives a person to abuse a position of trust and defraud his or her employer, especially a small family business, that person will be prosecuted by my office to the fullest extent of the law.”
Kincaid used her position as bookkeeper to conceal and perpetrate her theft from her employer, a small family manufacturing business in Seymour, Indiana. Just a month after starting as bookkeeper, she began cutting company checks to herself by forging the company president’s signature. All told, Kincaid forged over 170 checks and stole over $625,000, which she spent largely on personal luxuries, such as second and third homes, cars, vacations, jewelry, NFL football tickets, guitars, amps, drums, and over 35 firearms.
She used her position as bookkeeper and the trust and authority the company’s managers afforded her, to conceal her fraud. She made numerous false entries in the company’s accounting ledger that omitted any reference to the checks she cut to herself. In addition, upon learning that the company engaged an outside auditor to review its books and compare them to bank records, Kincaid manipulated copies of the bank records in a way that completely concealed her embezzlement.
Finally, when the company’s bank account ran low – due to her theft – she created a false email account and impersonated a company official to authorize the bank to replenish the company’s checking account from its line of credit. Not only did Kincaid steal the company’s cash, but her scheme also put it several hundred thousand dollars in debt. The court sentenced her accordingly.
According to Assistant United States Attorney Nick Linder, who prosecuted this case for the government, Kincaid must make full restitution to the victim company and serve three years of supervised release after her prison term.
Scranton Woman Sentenced to 57 Months’ Imprisonment for Acting as A Getaway Driver for Two Bank RobberiesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Stephanie Ann Ware, age 27, of Scranton, Pennsylvania, was sentenced by United States District Court Judge Robert D. Mariani in Federal Court on June 9th, to 57 months’ imprisonment.
In December 2015, she pleaded guilty to aiding and abetting the robbery of two banks by acting as a getaway driver. Ware admitted to charges that she aided Lee Sokalsky in the robberies of the NBT Bank, Dickson City, on July 25, 2014 and the Mauch Chunk Trust Bank, Tamaqua, on August 26, 2014.
Sokalsky was previously indicted by a Federal Grand Jury and is awaiting trial.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Hazleton, Rush Township, Dickson City, and Scranton Police Departments. Prosecution is assigned to Assistant United States Attorney John Gurganus.
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Prolific Thief Sentenced to 4 Years in Federal Prison for Stealing MailRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that that Fred Nolan, Jr., age 45, of Spokane, Washington, was sentenced after having previously plead guilty to the felony charge of Possession of Stolen U.S. Mail and the misdemeanor charge of Theft of Property Used by the United States Postal Service. Senior United States District Judge Lonny R. Suko sentenced Nolan to a 4-year term of imprisonment, to be followed by a 3-year term of court supervision upon release from Federal prison.
According to information disclosed during the court proceedings, in late May 2013 Nolan broke into the Flour Mill (a building housing several business in Spokane, Washington) and gained access to the locked mail distribution room. When employees later arrived, they located mail from the various businesses in the Flour Mill scattered around the floor. A Postal Service lock mechanism had obviously been broken during the incident. Surveillance video was later reviewed, and Nolan was clearly shown breaking into the Flour Mill’s mail distribution room and then leaving the building with two bags. During a subsequent unrelated burglary investigation at another location, Spokane Police Department detectives located a piece of mail from the Flour Mill. Nolan’s fingerprint was located on that envelope. Nolan has at least 38 prior felony convictions for theft and burglary-related conduct.
Michael C. Ormsby said, “Interference with the U.S. Mails will not be tolerated in the Eastern District of Washington. My office prosecutes aggressively crimes that affect the Mails, this case being one example of that commitment. I commend the cooperative investigative efforts of the Spokane Police Department and the United States Postal Inspection Service.”
This case was investigated by the Spokane Police Department and the United States Postal Inspection Service. The case was prosecuted by Caitlin Baunsgard, an Assistant United States Attorney for the Eastern District of Washington.
Post-Plea Deferral Program Offers Second Chance to Some Drug OffendersRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announces a Post-Plea Deferral Program (PPDP) jointly developed by the United States Attorney’s Office, the United States Probation Office and the Federal Public Defender’s office. The goals of the PPDP are to promote community safety, break the cycle of drug addiction-induced crime, and increase the likelihood of successful rehabilitation of drug offenders by implementing a blend of treatment, supervision, appropriate sanctions, and incentives.
On Monday, June 6, 2016, Jeremy Johnson became the first person accepted into the Eastern District of Arkansas’ PPDP. Johnson pleaded guilty to obtaining a Schedule II controlled substance by fraudulent prescription, which carries up to a four-year prison sentence. However, as Johnson is a participant in the PPDP, United States District Court Judge James M. Moody, Jr., deferred acceptance of the plea for a period of 18 months, during which time Johnson must abide by the conditions and requirements of the PPDP. If he successfully completes his program, the United States Attorney will dismiss his charges.
"My office is pleased to participate in this rehabilitative alternative to felony conviction, designed for those who deserve such a break," Thyer said. "The PPDP program is limited in scope, providing individuals with no prior criminal history, or very minor criminal history, whose criminal conduct was motivated primarily by drug addiction, to accept their criminal conduct and prove their rehabilitation over a period of months. Upon successful completion, the individual will have the opportunity to move forward leading a drug-free life without having received a felony record."
The PPDP is a new program designed to give a limited number of offenders charged with minor drug-related offenses who have little or no criminal history and whose illegal conduct was the direct result of an addiction to drugs the opportunity to resolve their federal charges without a felony conviction. This opportunity is available provided they successfully complete an intensive supervision program and show that they are positively contributing to the community through employment and education.
"I think it is wonderful that our district has implemented this program, and the federal defender’s office very much looks forward to participating in it," Federal Public Defender Jenniffer Horan said.
Under the program, a defendant who accepts responsibility for his or her criminal conduct will enter a guilty plea that is deferred by the court for a period of 12 to 18 months. During the deferral period, the defendant will be supervised by the United States’ Probation Office and provided the opportunity to participate in drug treatment and other available services. Upon successful completion of the rehabilitation period, the court will decline to accept the defendant’s guilty plea, and the United States will dismiss the felony charges against the defendant. Successful completion and dismissal of felony charges are not guaranteed upon acceptance into the program, rather, successful completion must be earned by the defendant through showing genuine rehabilitation from drug addiction and positive contribution to the community.
"The program provides defendants, whose criminal activity is directly related to addiction, an opportunity to break the cycle of drug-induced criminal behavior," Chief U.S. Probation and Pretrial Services Officer Eddie Towe said. "One powerful incentive is the chance to avoid a custody sentence and a federal criminal conviction. The parties will use a collaborative approach to recommend responses to violations in an expeditious and consistent manner while also providing encouragement and guidance."
Pittsburgh, PA man pleads guilty to selling heroin in West VirginiaRead the Press Release
CLARKSBURG, WEST VIRGINIA – Raimonte Gaston, 23, of Pittsburgh, Pennsylvania, pled guilty to heroin trafficking today in federal court in Clarksburg, United States Attorney William J. Ihlenfeld, II, announced.
Gaston sold heroin in Harrison County, West Virginia. He pled guilty today to one count of “Distribution of Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Shawn Adkins and Stephen Warner prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force investigated.U.S. District Judge Irene M. Keeley presided.
Pawn Shop Owner Sentenced to over 3 Years in Prison in Scheme to Sell Stolen GoodsRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Noel Erik Anshel, age 49, of Owings Mills, Maryland today to 46 months in prison followed by three years of supervised release for transporting stolen goods. Judge Motz also ordered Anshel to forfeit $551,000, including funds held in four PayPal accounts and six bank accounts, six properties in Baltimore purchased with proceeds from the scheme, and property seized from his pawn shop.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief Gary Gardner of the Howard County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.
According to his plea agreement, from January 1, 2010 to January 1, 2014, Anshel was part owner of Hilltop Cellular, a pawn shop located in the 5400 block of Reisterstown Road in Baltimore. Anshel became the sole owner and manager of the shop from January 1, 2014 to August 12, 2015.
From at least January 1, 2010 to August 12, 2015, Anshel paid cash to more than five shoplifters in exchange for products stolen from retailers, including construction tools, pressure washers, kitchen appliances, electrical generators and consumer electronics. The products were frequently new and still in the original box. The shoplifters brought the stolen items to Hilltop Cellular, where Anshel purchased them for far less than the products’ retail value. Anshel paid at least three of his “regular” shoplifters over $40,000 each for stolen products.
Anshel had a license to resell “second-hand” merchandise at Hillside Cellular, but would list the stolen items on eBay as new.
In April 2014, Howard County Police officers followed an individual from a Home Depot store where the individual had stolen several items, to Hilltop Cellular where the individual sold the items to Anshel. Investigators then entered the pawn shop and seized the stolen items. At that time, Anshel stated that, “90% of what I buy is stolen,” and “it’s the cost of doing business.”
Law enforcement subsequently executed a search warrant at Hilltop Cellular and seized a large amount of stolen property worth approximately $20,000.
The total estimated loss from the scheme is approximately $551,000. Anshel used the proceeds of the scheme to purchase, among other things, six houses in Baltimore.
Orlando Woman Pleads Guilty to Acting as Illegal Agent of Foreign Government and Conspiring to Commit Money LaunderingRead the Press Release
Orlando, FL – Amin Yu, 54, of Orlando, Florida, pleaded guilty today to acting in the United States as an illegal agent of a foreign government without prior notification to the Attorney General and conspiring to commit international money laundering.
The plea agreement was announced by U.S. Attorney A. Lee Bentley III of the Middle District of Florida and Assistant Attorney General for National Security John P. Carlin.
“Amin Yu made hundreds of thousands of dollars by acting covertly in Orlando on behalf of the Chinese government and by skirting U.S. export laws and regulations,” said U.S. Attorney Bentley. “The enforcement of U.S. laws and regulations related to the national security of the United States remains a top priority for our office.”
“Amin Yu admitted to secretly serving as an agent of the Chinese government,” said Assistant Attorney General Carlin. “Yu obtained and illegally exported items and technology related to marine submersible vehicles at the direction and control of a state-owned entity in China. Protecting our national assets by disrupting efforts by foreign governments to steal sensitive equipment and technology will continue to be a high priority of the National Security Division.”
According to the plea agreement, from at least 2002 until February 2014, at the direction of co-conspirators working for Harbin Engineering University (HEU), a state-owned entity in the People’s Republic of China, Yu obtained systems and components for marine submersible vehicles from companies in the United States. She then illegally exported those items to the PRC for use by her co-conspirators in the development of marine submersible vehicles – unmanned underwater vehicles, remotely operated vehicles and autonomous underwater vehicles – for HEU and other state-controlled entities. Yu illegally exported items by failing to file electronic export information (EEI), as required by U.S. law, and by filing false EEI. In particular, Yu completed and caused the completion of export-related documents in which she significantly undervalued the items that she had exported and provided false end user information for those items.
Yu faces a maximum penalty of 10 years in prison for acting as an illegal agent of a foreign government and up to 20 years in prison for conspiring to commit money laundering. A sentencing hearing has not yet been scheduled.
This case was investigated by the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Internal Revenue Service-Criminal Investigation and the Naval Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Daniel C. Irick of the Middle District of Florida and Trial Attorneys David C. Recker and Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section.
New Orleans Man Indicted for Whitney Bank RobberyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GREGORY CHISOLM, age 52, of New Orleans, was charged today by a federal grand jury in a one-count Indictment with the January 4, 2016 robbery of the Whitney Bank branch located at 228 St. Charles Avenue, New Orleans, Louisiana.
If convicted, CHISOLM faces a maximum sentence of twenty-five years in prison, a $250,000, and five years of supervised release.
U.S. Attorney Polite reiterated that the Indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
Nassau County Man Pleads Guilty to Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, FL – United States Attorney A. Lee Bentley, III announces that Clement Ashford Reeves, Jr. (73, Yulee) has pleaded guilty to receiving child pornography over the Internet. He faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison and a potential life term of supervision. A sentencing date has not yet been set.
According to court documents, an agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations began an undercover operation to identify persons using the Internet to receive and share child pornography. The agent learned that a host computer in Florida had been sharing child pornography since December 15, 2011. That computer was traced to Reeves’s residence.
On June 3, 2015, agents met with Reeves at his home. During an interview, Reeves stated that he had downloaded depictions of prepubescent children, but that his preference was for young girls. He also said that he had been using the file sharing program for 10-15 years. Agents seized several computer devices that contained 22 videos depicting young children being sexually abused.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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 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.
Muncie woman sentenced for stealing benefits meant for her childrenRead the Press Release
Indianapolis – United States Attorney Josh Minkler today announced the sentence of a Muncie woman after being convicted for stealing nearly $200,000 in Social Security disability funds, public housing assistance, and food stamps, all of which were meant for her children. Kimberly Harper, 55, was sentenced to 33 months (nearly three years) in federal prison by U.S. District Judge Tanya Walton Pratt.
“For over 20 years, Harper did not raise or support her children,” said Minkler. “Instead, she stole from them – including her son who was born with a severe mental disability. This money was meant for the care of her children and she selfishly spent it on herself.”
Harper has four children, one of which struggles with a severe form of autism. In the early 1990s, when her children were toddlers, she refused to care for them any longer and handed them off to her own parents, who ultimately raised the kids. At the same time, she applied to the Social Security Administration for disability benefits on behalf of her autistic child. But instead of using that money to support her son, as she was required to do, she spent it for herself.
Later, she applied to the Department of Housing and Urban Development for public housing assistance and to the Indiana Family Social Services Administration for food stamps assistance. Again, she falsely claimed that these benefits were for her children and instead received and spent the benefits for herself.
In total, Harper stole nearly $200,000 in benefits that were meant for her children. Her scheme lasted over 20 years. And even when caught, she refused to admit her culpability. After Harper’s mother died in 2013, her father, who was still caring for Harper’s disabled son, applied for Social Security disability benefits. Just days after he finally convinced the Social Security office that he was the one caring for Harper’s son, Harper showed up to the office and pleaded that Social Security switch the payments back to her. She claimed her son had always lived with her and had never been out of her care. She knew these statements had been false for over 20 years. She was sentenced accordingly.
According to Assistant United States Attorney Nick Linder, who prosecuted this case for the government, Harper must make full restitution and serve three years of supervised release after her sentence.
Morgantown, WV man pleads guilty to interstate heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Justin Donald Myers, 37, of Morgantown, West Virginia, pled guilty to heroin trafficking today in federal court in Clarksburg, United States Attorney William J. Ihlenfeld, II, announced.
Myers was among fourteen individuals charged with heroin trafficking when three separate federal indictments disrupted a Michigan to West Virginia heroin trafficking network in February 2016. Specifically, Myers sold heroin in January 2016 near West Virginia University in Monongalia County, West Virginia.Myers pled guilty today to one count of “Aiding and Abetting Distribution of Heroin within 1,000 feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.U.S. Magistrate Judge Michael John Aloi presided.
Mexican Citizen Sentenced to 11 Years in Prison for His Participating in a Drug ConspiracyRead the Press Release
TULSA, Okla.—Ivan Hondal Chavez, 30, Vera Cruz, Mexico, was sentenced to 132 months in prison for participating in a drug trafficking conspiracy, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma. Chief United States District Court Judge Gregory K. Frizzell also sentenced Hondal to three years of supervised release following his prison sentence and ordered him to forfeit money, a car, and a firearm.
On December 10, 2015, agents with the Drug Enforcement Administration (DEA) intercepted a vehicle destined for Tulsa that concealed approximately 25 kilograms of methamphetamine, 1 kilogram of cocaine, and 1 kilogram of heroin. The driver of the vehicle assisted DEA agents in performing a controlled delivery of the drugs found in the vehicle to Hondal.
This was not the first delivery of drugs to Tulsa by Hondal and his coconspirators. At the time of his sentencing, Hondal was held responsible for at least 45 kilograms of methamphetamine over the course of his involvement in the conspiracy. Hondal is unlawfully in the United States and he will be deported to Mexico after he serves his sentence.
This case was investigated by the DEA. Assistant United States Attorney Neal C. Hong prosecuted the case.
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Marion County man sentenced for unlawful possession of firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Antonio Cottingham, 29, of Fairmont, West Virginia, was sentenced today to 46 months in prison for unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Cottingham, who has previous felony convictions in federal and state court in West Virginia, was discovered in unlawful possession of a .44 caliber revolver in August 2015 in Fairmont, West Virginia. Cottingham was previously convicted in the Northern District of West Virginia of the felony offenses of “Distribution of Crack Cocaine” and “Escape from Custody.” He was also previously convicted in state court in West Virginia of the felony offense of “Conspiracy to Commit a Felony Against the Sate.”
Cottingham pled guilty in January 2016 to one count of “Felon in Possession of a Firearm.”
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The Fairmont, West Virginia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge Irene M. Keeley presided.
Long Island Attorney Sentenced to Sixteen Months in Prison for Forgery of Bankruptcy Judge’s SignatureRead the Press Release
Earlier today in Central Islip, NY, Jeffrey I. Stark, an attorney admitted to practice law in New York, was sentenced to 16 months’ imprisonment to be followed by three years of supervised release based on his guilty plea on August 7, 2015, for forgery of a judicial signature. The sentencing proceeding was held before U.S. District Judge Arthur D. Spatt.
The charge against Stark arose after he was retained in 2012 by a couple to file bankruptcy proceedings on their behalf in the United States Bankruptcy Court for the Eastern District of New York. Stark never filed a bankruptcy petition and instead provided the couple with a fake discharge order bearing the forged signature of a United States Bankruptcy Judge.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York.
In announcing the sentence, United States Attorney Capers stated, “Attorneys, as trusted officers of the court, are rightfully held to a high standard of conduct, and Mr. Stark violated the trust of his clients and the court by his criminal conduct here.” Mr. Capers expressed his grateful appreciation to the FBI, the agency responsible for leading the government’s the investigation.
Stark was suspended from the practice of law on November 20, 2013, by the New York State Appellate Division, 1st Department.
The government’s case was prosecuted by Assistant United States Attorney Allen L. Bode.
The Defendant:
JEFFREY I. STARK
Age: 53
Residence: Massapequa, New YorkLocal Music Volunteer Sentenced to 25 Years in Prison for Production of Child PornographyRead the Press Release
ALEXANDRIA, Va. – David Alexander Battle II, 24, who served as a volunteer with the music program at Grace E. Metz Middle School in Manassas, was sentenced today to 300 months in prison for production of child pornography, attempted coercion and enticement of a minor, receipt of child pornography, and distribution of child pornography after being convicted by a federal jury on March 10.
Battle was charged by superseding indictment on February 11. According to court records and evidence at trial, an Internet Protocol address linked to Battle was used to share a sexually explicit video involving a child on a chat website in April 2015. Battle also posed as a minor girl on another chat platform and chatted with minor boys, coercing and enticing them to send him sexually explicit images of themselves. The evidence demonstrated that the defendant personally knew two of the boys he chatted with on this platform.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Douglas W. Keen, Manassas City Chief of Police; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after sentencing by U.S. District Judge Claude M. Hilton. The Herndon Police Department and the Northern Virginia/Washington, D.C. Internet Crimes Against Children Task Force (ICAC) assisted in the investigation. Assistant U.S. Attorney Jay V. Prabhu and Special Assistant U.S. Attorney Lauren Britsch prosecuted the case.
This investigation was a 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.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-274.
Lewisville, Texas Systems Administrator Convicted of Federal ViolationsRead the Press Release
SHERMAN, Texas – A 37-year-old company systems administrator has been convicted of federal violations within the Computer Fraud and Abuse Act in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Michael Thomas, of Lewisville, Texas, was found guilty by a jury on June 8, 2016, of knowingly transmitting programs, information, codes, or commands that intentionally caused damage to his employer’s computer system, that he did not have authorization to cause the damage, and that those damages incurred losses to the employer in excess of $5,000. The verdict came following a three-day trial before U.S. District Judge Amos L. Mazzant, III.
According to the indictment and evidence presented at trial, on Dec. 2-5, 2011, Thomas, while employed as the Information Technology Operations Manager for ClickMotive in Plano, Texas, became upset about a business decision the company made. In retaliation, Thomas granted himself access to the company executives’ email accounts in order to search through emails and forward them to an external email account he created for that purpose. Over the weekend, Thomas also tampered with the company paging system by entering false contact information for various company executives, ensuring that any automatically-generated alerts indicating system problems would not be received. Thomas also removed company employees and executives from email distribution groups created for the benefit of its customers, who were large automotive companies and dealerships. This ensured that customers’ request for support would similarly go unnoticed.
Thomas deleted virtual machines that were currently in active use and being used to store and perform important backup functions, deleted 615 files of backup history which were not able to be recovered, and also deleted jobs for future backups across various environments in the network. Those deletions were performed contrary to established practices and procedures routinely followed by the company. Thomas also deleted several internal “wiki” pages that employees routinely accessed and relied upon to perform their jobs. Furthermore, Thomas manually changed the setting for an authentication service that eventually led to the inability of employees to work remotely through a Virtual Private Network. Thomas left his resignation on Sunday, Dec. 5, 2011, before his nefarious activities were discovered. Company IT personnel and expert witnesses testified that Thomas’ activities, taken as a whole, were not consistent with normal trouble-shooting and maintenance.
Thomas’ friend and former colleague testified that in the days following the events in question, Thomas admitted to have “tinkered” with the system and specifically to deleting backups and related files, tampering with the door monitoring system, absconding with passwords, and also stating that he thought he broke the law. When later questioned about the incident, Thomas similarly admitted to FBI Agents to deleting wiki pages and spying on company executives’ emails, also saying he didn’t want the job to be easier for the next person. On Aug. 12, 2013, Thomas abruptly resigned from a well-paying job and purchased a plane ticket to Brazil, departing that same day, after being notified that the government intended to formally charge the defendant on Aug. 14, 2013. He did not return to the United States until April 20, 2016.
ClickMotive’s co-founder and Chief Technology Officer extensively testified as to the importance of the data that the defendant tampered with and destroyed which not only affected the company’s ability to access certain data but also instilled a sense of fear that persisted within the company for months. The witness explained that no one had permission to delete or impair data that is valuable to the company. The cost to investigate and remediate the problems created by Thomas was more than $100,000. Thomas was indicted by a federal grand jury on Sep. 11, 2013 and charged with violating Title 18 of the United States Code, Section 1030(a)(5)(A) and (c)(4)(B), within the Computer Fraud and Abuse Act.
“The jury’s verdict in this case sends an important message to IT professionals everywhere: an employee in the defendant’s position holds the proverbial keys to the kingdom and with that power comes great responsibility,” said U.S. Attorney Bales. “Intentionally causing damage to a computer system without authorization is a criminal act that can and will be prosecuted.”
Damage is defined by the statute as “any impairment to the integrity or availability of data, a program, a system, or information.”
Thomas faces up to 10 years in federal prison at sentencing. Sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The case was investigated by the Federal Bureau of Investigation and prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas in Plano, Texas.
Leesville man sentenced to 36 months in prison for burglary on Fort Polk military postRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a Leesville resident was sentenced Thursday to 36 months in prison for burglarizing homes and a truck on the Fort Polk military installation.
Dakota Cole Yarbrough, 22, of Leesville, La., was sentenced by U.S. District Judge Patricia Minaldi on one count of simple burglary of an inhabited dwelling. He was also sentenced to three years of supervised release. According to the March 3, 2016 guilty plea, Yarbrough was driven to the outskirts of the Fort Polk U.S. Army base around 10 p.m. on August 5, 2015. He then illicitly crossed the fence onto the installation. Once on the base, he illegally entered two residences where families were sleeping and stole personal belongings from the homes. He also broke into and stole items from a pickup truck. The Vernon Parish Sheriff’s Office found many of the stolen items in Yarbrough’s residence after a search on August 10, 2015.
The Fort Polk Directorate of Emergency Services and the Vernon Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney David C. Joseph prosecuted the case.
Jamaican man sentenced in international lottery scamRead the Press Release
CLARKSBURG, WEST VIRGINIA – Davel Godfrey Young, 53, of Montego Bay, Jamaica, was sentenced today to 30 months in prison for wire fraud, United States Attorney William J. Ihlenfeld, II, announced.
Young, along with other individuals, made a series of unsolicited phone calls and sent unsolicited emails to a variety of United States citizens. Young informed these individuals that they had won a multi-million dollar lottery prize and a new Mercedes Benz or BMW vehicle. Young then informed the purported lottery winners that in order to receive their lottery prizes, they needed to pay taxes and processing fees by wiring finds to Jamaica and various locations within the United States.Young further sent fraudulent documentation that misleadingly appeared to be official government forms and unlawfully portrayed the names and symbols of the Internal Revenue Service, Department of Treasury, and Federal Reserve Board. Young also transmitted electronic images of forged multi-million dollar cashier’s checks.
Young pled guilty in November 2015 to one count of “Conspiracy to Commit Wire Fraud.” As part of the sentenced imposed today, Young was also ordered to pay restitution in the amount of $232,118.78.
Assistant U.S. Attorney Andrew Cogar prosecuted the case on behalf of the government. The Treasury Inspector General for Tax Administration investigated.
U.S. District Judge Irene M. Keeley presided.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Johnston in Great Falls on June 7, 2016 and entering pleas of Not Guilty were:
- RONALD RAY HORNER, a 56-year-old resident of Walsenburg, Colorado, appeared on charges of transportation of child pornography. If convicted of the charge contained in the indictment, HORNER faces 20 years in prison, $250,000 in fines, and lifetime supervised release. The case was investigated by the Homeland Security Investigations, Canada Border Services Agency, Royal Canadian Mounted Police, Southern Alberta Internet Child Exploitation Team. PACER Case Reference. 16-40
Appearing before U.S. Magistrate Johnston in Great Falls on June 6, 2016 and entering pleas of Not Guilty were:
- ZANE COLTIN CHANDLER, a 24-year-old resident of Babb, appeared on charges of possession of a stolen firearm, and accessory after the fact. If convicted of the most serious charge contained in the indictment, CHANDLER faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-49
- QUADE SMITH, a 24-year-old resident of Browning, appeared on charges of assault with a dangerous weapon, assault resulting in serious bodily injury, using and discharging a firearm during and in relation to a crime of violence, possession of a stolen firearm, and accessory after the fact. If convicted of the most serious charges contained in the indictment, SMITH faces life in prison, $250,000 in fines, and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-49
Appearing before U.S. Magistrate Ostby in Billings on June 3, 2016 and entering pleas of Not Guilty were:
- TERRANCE DELVETTEO WILLIAMS, a 36-year-old resident of Billings, appeared on charges of illegal receipt of a firearm by a person under indictment. If convicted of the charge contained in the indictment, WILLIAMS faces 5 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 16-26
Appearing before U.S. Magistrate Ostby in Billings on June 2, 2016 and entering pleas of Not Guilty were:
- CHANCE BILLY JOE DEHART, a 29-year-old resident of Billings, appeared on charges of conspiracy to possess with the intent to distribute and to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, DEHART faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by Homeland Security Investigations. PACER Case Reference. 15-150
- ALDEN LEE WILSON, a 41-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, WILSON faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the HIDTA Task Force. PACER Case Reference. 15-63
Appearing before U.S. Magistrate Johnston in Great Falls on May 25, 2016 and entering pleas of Not Guilty were:
- PHYLLIS LYNN TATSEY, a 53-year-old resident of Spokane, Washington, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, TATSEY faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Drug Enforcement Administration and the Bureau of Indian Affairs. PACER Case Reference. 16-16
Appearing before U.S. Magistrate Ostby in Billings on May 25, 2016 and entering pleas of Not Guilty were:
- JOSHUA JAMES COOLEY, a 32-year-old resident of Sheridan, Wyoming, appeared on charges of possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charge contained in the indictment, COOLEY faces life in prison, $5,000,000 in fines, and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 16-42
- RANDY FALLS DOWN, a 51-year-old resident of Pryor, appeared on charges of willful failure to file return. If convicted of the charge contained in the information, FALLS DOWN faces 1 year in prison, $100,000 in fines, and 3 years supervised release. The case was investigated by the Internal Revenue Service. PACER Case Reference. 16-37
- PETER JOHN JEFFERSON, a 48-year-old resident of Lodge Grass, appeared on charges of abusive sexual contact with a minor. If convicted of the charge contained in the indictment, JEFFERSON faces 2 years in prison, $250,000 in fines, and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-44
- DAVID ANDREW WALKSALONG, JR., an 18-year-old resident of Lame Deer, appeared on charges of assault resulting in seriously bodily injury, and assault with a dangerous weapon. If convicted of the most serious charge contained in the indictment, WALKSALONG faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs. PACER Case Reference. 16-56
Appearing before U.S. Magistrate Ostby in Billings on May 24, 2016 and entering pleas of Not Guilty were:
- THOMAS GREGORY BAILEY, a 37-year-old transient, appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, BAILEY faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation Task Force. PACER Case Reference. 15-65
- ALFONSO BANDERAS-MARTINEZ, a 24-year-old resident of New York City, New York, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, BANDERAS-MARTINEZ faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 16-53
- JOATHAM LEIGHT ECHAGILE, a 28-year-old resident of Tangipahoa Parish, Louisiana, appeared on charges of felon in possession of a firearm, and possession of a firearm in a school zone. If convicted of the most serious charge contained in the indictment, ECHAGILE faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 16-15
- ANGEL GUZMAN-BANDEROS, a 19-year-old resident of San Jose, California, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, GUZMAN-BANDEROS faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 16-53
- LUIS FELIPE LOPEZ-ROJAS, a 22-year-old resident of San Jose, California, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, LOPEZ-ROJAS faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 16-53
- CHARLES JESSE SANCHEZ, JR., a 50-year-old resident of Billings, appeared on charges of felon in possession of a firearm and ammunition. If convicted of the charge contained in the indictment, SANCHEZ faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 16-40
Appearing before U.S. Magistrate Johnston in Great Falls on May 23, 2016 and entering pleas of Not Guilty were:
- THELMA FAY PEPION, a 49-year-old resident of Browning, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, PEPION faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 16-27
Appearing before U.S. Magistrate Lynch in Missoula on May 19, 2016 and entering pleas of Not Guilty were:
- NICHOLAUS WADE MANGELS, a 29-year-old resident of Polson, appeared on charges of receipt of child pornography. If convicted of the charge contained in the indictment, MANGELS faces 5 years in prison, $250,000 in fines, and lifetime supervised release. The case was investigated by Homeland Security Investigations, Internet Crimes Against Children Task Force, and Flathead County Sheriff’s Office. PACER Case Reference. 16-06
Appearing before U.S. Magistrate Johnston in Great Falls on May 17, 2016 and entering pleas of Not Guilty were:
- BRIAN KELLY EAGLEMAN, a 53-year-old resident of Box Elder, appeared on charges of theft from an Indian Tribal organization. If convicted of the charge contained in the indictment, EAGLEMAN faces 5 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Department of Interior Office of Inspector General, Health and Human Services Office of Inspector General, Internal Revenue Service, and the Federal Bureau of Investigation. PACER Case Reference. 16-35
- BRIAN KELLY EAGLEMAN, a 53-year-old resident of Box Elder, appeared on charges of income tax evasion and failure to file a currency transaction report. If convicted of the most serious charge contained in the indictment, EAGLEMAN faces 5 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Internal Revenue Service. PACER Case Reference. 16-41
- VIOLET LYNN EAGLEMAN, a 47-year-old resident of Havre, appeared on charges of income tax evasion and failure to file a currency transaction report. If convicted of the most serious charge contained in the indictment, EAGLEMAN faces 5 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Internal Revenue Service. PACER Case Reference. 16-41
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Houston Physician Sentenced in Health Care Fraud ConspiracyRead the Press Release
HOUSTON – Two defendants in a nearly $3 million fraudulent vestibular diagnostic testing scheme have been ordered to federal prison, announced U.S. Attorney Kenneth Magidson. Dr. Augustine Egbunike, 61, pleaded guilty Jan. 16, 2015, while Loretta Mbadugha, 58, also of Houston, entered a plea for her role in the scheme Dec. 12, 2014.
Today, U.S. District Judge Melinda Harmon ordered Egbunike to serve 57 months in prison and must pay $2 million in restitution to Medicare and Medicaid. Mbadugha was sentenced in May to 30 months and ordered to pay $404,157.12 in restitution. In addition, Mbadugha forfeited her home which was purchased with proceeds from the fraud.
Vestibular diagnostic testing is used to evaluate a person for vertigo or dizziness. Following diagnosis, patients usually undergo physical therapy, take medication or undergo surgery as treatment.
From approximately 2006 through 2010, Egbunike, Mbadugha and others falsely billed Medicare and Medicaid for numerous, unnecessary vestibular diagnostic tests. Some patients were tested more than 1,000 times. The evidence demonstrated that the testing was either not performed, not medically necessary or not performed by licensed individuals.
As a result of this unlawful scheme, Medicare and Medicaid were billed approximately $2.9 million and paid approximately $2 million. At the time, 88 percent of Egbunike’s Medicare and Medicaid income came from medically unnecessary vestibular testing.
This was the largest case among four, separate vestibular fraud indictments in the Houston area which totaled nearly $6 million.
To date, three physicians and four others have been sentenced in the four cases with $5,639,604.73 in restitution ordered returned to Medicare and Medicaid.
Egbunike has been detained since his arrest in 2014 where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The cases are the result of the investigative efforts of the Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services - Office of Inspector General, Office of Investigations, and the FBI. Special Assistant U.S. Attorneys Suzanne Bradley and Justin Blan and Assistant U.S. Attorney Tina Ansari are prosecuting the cases.
Houston Man Convicted of Wire FraudRead the Press Release
VICTORIA, Texas – A 56-year-old Houston man employed at the Alcoa Operations Plant in Point Comfort has been convicted of wire fraud, announced U.S. Attorney Kenneth Magidson.
Jack Kennedy was employed in the machine shop tool room at the plant. In his position, Kennedy was responsible for inventorying and ordering parts, tools and supplies used by Alcoa employees. Kennedy ordered and stole large quantities of expensive small parts, tools and supplies.
Authorities learned that Kennedy was selling the stolen tools to an individual in New York. Kennedy would email and fax the buyer in New York a list of tools available for purchase. Once Kennedy accepted the offer from the New York buyer, he would mail the tools via the United Parcel Service. The buyer would then mail a check to Kennedy’s home in Texas.
U.S. Magistrate Judge B. Janice Ellington accepted the guilty plea today. U.S. Circuit Judge Gregg Costa, sitting by designation, will sentence Kennedy Sept. 16, 2016. At that time, Kennedy faces up to 20 years in federal prison and a possible $250,000 maximum fine.
He was permitted to remain on bond pending sentencing.
The FBI initiated the investigation in March 2012. Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case.
Home Improvement Contractor Charged with Defrauding Customers and Hiding Assets from Creditors in Bankruptcy ProceedingsRead the Press Release
WASHINGTON - Michael Lawrence Rosebar, 53, of Washington, D.C., has been indicted on charges alleging that he defrauded customers of his home improvement business and personal creditors, as well as on charges alleging that he made false statements in proceedings in the U.S. Bankruptcy Court, U.S. Attorney Channing D. Phillips announced today. Rosebar also is accused of defrauding government programs that aid unemployed people and needy families.
A grand jury returned a 45-count superseding indictment on June 9, 2016, in the U.S. District Court for the District of Columbia. The superseding indictment includes a total of 26 bankruptcy-related charges first filed against him in an indictment in February 2016, and adds 19 new charges related to the bankruptcy proceedings and two other alleged fraud schemes.
Rosebar is charged with 32 federal counts, including 26 counts of concealment of bankruptcy assets; two counts of making false declarations in bankruptcy; one count of making a false oath or account in bankruptcy; and three counts of wire fraud. He additionally is charged with 13 counts of violating District of Columbia laws, including two counts of conspiracy to commit first-degree fraud and 11 counts of first-degree fraud. The indictment also seeks forfeiture of a money judgment representing all proceeds of any criminal acts outlined in the federal charges.
Rosebar, who pleaded not guilty to charges in the first indictment, is to be arraigned on the new charges on June 22, 2016, by the Honorable Senior Judge Thomas F. Hogan.
“As alleged in the indictment, this home improvement contractor made false statements in bankruptcy proceedings, defrauded clients and creditors, and cheated government programs,” said U.S. Attorney Phillips. “The prosecution of this case reflects our broader determination to protect consumers and government programs from fraud.”
According to the indictment, Rosebar operated businesses under several names, including EMR Construction Contractors. From at least February 2008 through January 2015, the indictment alleges, Rosebar misrepresented himself to clients as a licensed home-improvement, electrical and heating/ventilation/air conditioning (HVAC) contractor. However, at no time during that period did Rosebar have a business or professional license from the District of Columbia Department of Consumer and Regulatory Affairs.
Rosebar recruited customers at home improvement stores, through referrals, and by acting as a sub-contractor on projects. According to the indictment, he negotiated contracts with customers for substantial home improvement or HVAC projects, which he did not intend to complete. He required an initial payment prior to starting work, hired unskilled day laborers or family members for the projects, and then abandoned job sites after doing minimal or otherwise insufficient work, the indictment alleges. The indictment includes charges related to 10 such projects, in which clients paid over $500,000, from 2008 through 2014.
In addition, according to the indictment, Rosebar filed three times for bankruptcy in the period between 2008 and 2013. The first case was dismissed within two months of its filing. The second case ran from 2008 through its dismissal in 2011. The third case was filed in 2013.
The indictment alleges that, in one of his bankruptcies, Rosebar concealed from his creditors nearly $300,000 of earnings generated between 2008 and 2010. In another of the bankruptcy cases, according to the indictment, he made false declarations about his earnings in court filings and at a meeting of creditors. All told, according to the indictment, since 2008, Rosebar has taken in around $800,000, mostly from home-improvement clients, without paying his creditors, and without disclosing the bulk of these earnings properly in bankruptcy.
The indictment also accuses Rosebar of receiving benefits to which he was not entitled from the District of Columbia’s Department of Human Services. From 2010 until 2014, according to the indictment, Rosebar received benefits through the Temporary Assistance for Needy Families program and Supplemental Nutrition Assistance Program after falsely reporting that he had no income, was unemployed, and had no assets other than his family home.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the indictment, U.S. Attorney Phillips commended the work of Assistant U.S. Attorney John Marston, who is prosecuting the case. He also commended the efforts of Criminal Investigator Stephen Cohen of the U.S. Attorney’s Office, who investigated the case, as well as Paralegal Specialists Jessica Mundi and John Lowell, Assistant U.S. Attorney Arvind K. Lal, Chief of the Office’s Asset Forfeiture and Money Laundering Section, and Assistant U.S. Attorney Philip A. Selden, now with the U.S. Attorney’s Office for the District of Maryland. Finally, U.S. Attorney Phillips expressed appreciation for the assistance provided by the Metropolitan Police Department and the District of Columbia Office of the Inspector General.
Hartford Man Sentenced to 8 Years in Federal Prison for Gang-Related Narcotics TraffickingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two Hartford men who were involved in a gang-related narcotics trafficking ring were sentenced this week in New Haven federal court.
On June 8, U.S. District Judge Jeffrey Alker Meyer sentenced GABRIEL HORACE WILLIAMS-BEY, a.k.a. “G Money,” “Money” and “Mugga,” 27, to 96 months of imprisonment, followed by four years of supervised release. On June 9, Judge Meyer sentenced SHAQILLE BROWN, a.k.a. “Shaq,” 23, to 18 months of imprisonment for violating his probation.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force, which includes the Hartford Police Department, into narcotics trafficking by members and associates of WestHell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” as the leader of the WestHell street gang who, along with several associates, distributed crack cocaine in the Westland Street area of Hartford. In March 2014, WILLIAMS-BEY supplied crack cocaine to Scott.
WILLIAMS-BEY’s criminal history includes multiple state narcotics convictions and a state firearms conviction. He was on state probation at time of this offense.
On April 24, 2014, a grand jury returned a 52-count indictment charging Scott, WILLIAMS-BEY, BROWN and 22 others with various offenses. WILLIAMS-BEY eluded capture for more than two months before he was arrested on June 30, 2014. On May 5, 2015, he pleaded guilty to one count of conspiracy to distribute 28 grams or more of cocaine base (“crack”). He has been detained since his arrest.
On December 23, 2014, BROWN pleaded guilty to one count of using a telephone to facilitate the distribution of crack cocaine and, on August 24, 2015, he was sentenced to five years of probation. BROWN had been detained from May 2014 until the date of his sentencing.
As a condition of probation, Judge Meyer ordered BROWN to take part in mental health counseling and drug treatment. In early October 2015, BROWN missed a mental health treatment session and failed to notify the U.S. Probation Office that he had moved out of his apartment.
On October 14, 2015, Hartford Police stopped a car in which BROWN was a passenger. The driver of the car, a convicted felon, possessed a distribution quantity of crack cocaine, and a search of the car revealed a loaded handgun with an obliterated serial number. BROWN, who admitted that he had handled the firearm, was arrested and subsequently sentenced in state court to 18 months of imprisonment.
Yesterday, Judge Meyer sentenced BROWN to 18 months of imprisonment, followed by six months in a halfway house, for violating the conditions of his probation. BROWN will begin serving his federal sentence when he completes his state sentence.
On March 21, 2016, Melkuan Scott was sentenced to 13 years of imprisonment.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
GTCR Agrees to Divest Third Largest Media Contact Database Provider in the U.S. in Order to Proceed with Acquisition of PR NewswireRead the Press Release
Divestiture Prevents a Duopoly in the Provision of Media Contact Databases to Businesses and Other Organizations
The Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed acquisition, and simultaneously filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit.
Businesses, nonprofits, and other organizations rely on media contact databases to identify journalists and other influencers for public relations purposes. Cision is the largest media contact database provider in the United States through its flagship public relations workflow software suite. PR Newswire is the third-largest media contact database provider in the United States through its Agility workflow software suite and competes directly with Cision to provide media contact databases to customers. According to the department’s complaint, GTCR’s acquisition of Agility would eliminate one of the two meaningful competitors to Cision in the provision of media contact databases, creating a duopoly in the market and further enhancing Cision’s dominant market position. Under the terms of the proposed settlement, GTCR must divest Agility to Innodata Inc., or to another buyer approved by the United States.
“Media contact databases are important to the public-relations activities of many American businesses and organizations,” said Principal Deputy Assistant Attorney General Renata B. Hesse, head of the Justice Department’s Antitrust Division. “Today’s settlement protects these customers and preserves competition in the market for media contact databases.”
GTCR’s acquisition of PR Newswire is also being reviewed by the United Kingdom’s Competition & Markets Authority (CMA). The department cooperated closely with the CMA throughout the course of its investigation.
GTCR is a private equity firm headquartered in Chicago. GTCR owns Cision, a leading public relations workflow software company that had approximately $227 million in U.S. revenues in 2015.
UBM is a global events marketing and communications services business headquartered in St. Helier, Jersey. UBM owns PR Newswire, a leading provider of commercial newswire services. PR Newswire’s 2015 U.S. revenues totaled approximately $209 million.
As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Scott Scheele, Chief, Telecommunications & Media Enforcement Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 7000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the proposed settlement upon finding that it is in the public interest.
GTCR CIS
GTCR PFJ
GTCR Stipulation & Order
GTCR Explanation
GTCR Complaint
Frank Carter Arrested in Illegal Video Gambling Device OperationRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that FRANK TALMADGE CARTER, 56, was arrested on June 8, 2016.
On Tuesday, May 25, 2016, a federal grand jury in Raleigh returned a 2 count Indictment against Carter.
The Indictment charges Carter with Conspiracy to Conduct an Illegal Gambling Business, 18 U.S.C. § 371 (Count 1) and Conducting an Illegal Gambling Business, 18 U.S.C. § 1955 (Count 2).
If convicted of counts 1 and 2 (Conspiracy and Conducting an Unlawful Gambling Business), CARTER faces a maximum term of imprisonment of 5 years for each count and a maximum fine of $250,000 for each count or twice gross gain, whichever is greater. CARTER was a resident of Cumberland County at the time of the offenses charged.
Cumberland County Sheriff Earl R. “Moose” Butler stated: “The Cumberland County Sheriff’s Office has always and will continue to strive to work in conjunction with local, state, and federal agencies to enforce the gambling laws of State of North Carolina and the United States.”
The charges and allegations contained in the indictment are merely accusations. The defendant is considered innocent unless and until proven guilty in a court of law.
The case is being investigated by the Cumberland County Sheriff’s Office and the United States Department of Homeland Security.
Former director of Cleveland VA Medical Center sentenced to nearly five years in prison for taking money from design firmRead the Press Release
The former director of the Cleveland and Dayton VA Medical Center was sentenced to 57 months in prison for working as a consultant for and taking money and other things of value from a design firm bidding on VA jobs and sharing confidential information about construction projects while still employed by the VA, law enforcement officials said.
William D. Montague, 63, of Brecksville, previously pleaded guilty to 64 counts, including Hobbs Act conspiracy, conspiracy to commit honest services mail fraud, violating the Hobbs Act, money laundering, multiple counts of wire fraud, mail fraud, disclosing public contract information, and other charges.
Montague has paid approximately $390,000 in restitution and forfeiture.
“As a Veterans Affairs Medical Center Director, William Montague undertook a responsibility to serve the public but instead he chose to become self-serving accepting bribes and kickbacks in exchange for favorable official actions,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Field Office. “The FBI and our law enforcement partners will continue to aggressively pursue those who abuse the trust we place in public servants to act in the community’s best interest.”
“Our joint investigation with the FBI resulted in the conviction of a former VA Medical Center Director who abused his position by taking bribes and manipulating the government's contracting process for personal gain,” said Gregg Hirstein, Veterans Affairs, Office of Inspector General Special Agent in Charge, Central Field Office. “We are pleased that this sentence reflects the seriousness of the crimes and believe this conviction will serve as a deterrent to others who might consider defrauding the Department of Veterans Affairs and our country's veterans.”
Montague served as director of the Cleveland VA Medical Center from 1995 until February 3, 2010. On March 11, 2011, Montague began working as director of the Dayton VA Medical Center, a position he held through December 17, 2011, according to court documents.
Court documents detail interactions between Montague and a company identified as Business 75, an integrated design firm with offices throughout the United States, including New York, Illinois, Virginia, Missouri, and California. The company performed work for the VA directly and through its participation in joint ventures and other teaming agreements.
Montague, Business 75, and employees of the company conspired to defraud the VA of its right to the honest and faithful service of Montague through bribery and kickbacks and to defraud the VA and other potential VA contractors by means of false and fraudulent pretenses beginning in 2010, according to court documents.
Montague secretly used his position as Dayton VA Medical Center director to enrich himself and his designees (including House of Montague, a financial services company Montague operated) by soliciting and accepting gifts, payments, and other things of value from Business 75 in exchange for favorable official actions. He also solicited money and a consulting contract from Business 75 in exchange for information related to VA contracts and projects, which would benefit Business 75, Business 75’s principal and their designees, according to court documents.
This was done to give Business 75 an advantage in obtaining VA contracts and projects. Montague gave false and misleading information to VA employees about his reasons for requesting VA documents and information, according to court documents.
The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon and Paul Flannery following an investigation by the FBI and United States Department of Veterans Affairs-Office of Inspector General.
Former Lake City Borough Wastewater Treatment Plant Operator Pleads Guilty to Violating the Clean Water ActRead the Press Release
ERIE, Pa. - A resident of Girard, Pennsylvania pleaded guilty in federal court to a charge of violating the Clean Water Act by tampering with required monitoring methods and submitting false statements, United States Attorney David J. Hickton announced today.
Mark Ventresca, 52, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from December 2008 to December 2012, Ventresca engaged in violations of the Clean Water Act and a National Pollutant Discharge Elimination System (NPDES) permit by providing false information on the Discharge Monitoring Reports submitted to the Pennsylvania Department of Environmental Protection. According to information provided to the Court, Ventresca, who was a certified wastewater operator licensed by the Commonwealth of Pennsylvania, was employed by the Lake City Borough Wastewater Treatment Plant as the operator of the Plant until he gave up his wastewater operating license on March 25, 2014 and resigned as the Plant operator. The Lake City Borough Wastewater Treatment Plant (the Plant) is located at 1150 Maple Avenue, Lake City, Erie County, Pennsylvania. The Plant operated pursuant to a National Pollutant Discharge Elimination System (NPDES) permit, effective December 1, 2009 through November 30, 2014. Subject to specific discharge limitations, the permit allowed direct wastewater discharge into the Elk Creek, a water of the United States, which flows 2.08 miles into Lake Erie, an interstate waterway and a navigable-in-fact water of the United States. The Presque Isle State Park and swimming beaches are approximately six miles downstream from the Plant’s outfall. The Erie County Health Department conducted inspections of the Plant in August 2012 and January 2013 and found discrepancies between the water sampling test results which were reported by Ventresca and the actual sample test results obtained from a contracted laboratory. The matter was referred to the Pennsylvania Department of Environmental Protection for further inquiry, and a criminal investigation referral was made to the EPA.
According to information presented in court, the Plant permit set discharge limits for pollutants, including, for example, Total Suspended Solids (TSS), Fecal Coliform, Total Phosphorus, pH, Dissolved Oxygen (DO), and Total Residual Chlorine (TRC). During the timeframe between December 2008 and December 2012, Ventresca engaged in violations of the Lake City Borough Wastewater Treatment Plant NPDES permit, in part, by 1) failing to treat the wastewater by not adding adequate amounts of chemical reagents to disinfect the pollutants; 2) failing to properly test for pH, Dissolved Oxygen (DO) and/or Total Residual Chlorine (TRC) by taking a daily grab sample as required under the permit; 3) falsifying sampling results for pH, DO and TRC when no daily samples were collected; 4) falsifying analytical laboratory results for the weekly 24-hour composite sample for phosphorus; 5) failing to use a required sampling method by substituting an 8-hour composite sampler for the required 24-hour composite sampler to collect phosphorus samples; 6) falsifying analytical laboratory results for the weekly grab sample for fecal coliform; 7) falsifying weekly 24-hour composite sample for Total Suspended Solids (TSS); and, 8) discharging pollutants into waters of the United States in violation of numerical permit limits. To cover up his failure to properly operate and maintain the Plant in accordance with the permit, Ventresca routinely submitted false sampling results in monthly Discharge Monitoring Reports (DMRs) to the Pennsylvania Department of Environmental Protection. The NPDES permit required submission of monthly DMRs which were supposed to contain sampling results representative of the monthly discharges. The criminal charge to which Ventresca pleaded guilty specifically identified examples of Ventresca’s false statements concerning the testing results for Fecal Coliform and Phosphorus. Based upon the violations of the Lake City Borough Wastewater Treatment Plant NPDES permit, PADEP issued a Consent Order and Agreement (CO&A) to Ventresca. On March 25, 2014, Ventresca signed his CO&A and surrendered his wastewater operator’s license. At the same time, he resigned as the Plant operator.
“Our office has taken an aggressive approach on environmental enforcement because it is the right thing to do for people and future generations,” said U.S. Attorney Hickton. “We are making effective enforcement of the federal Clean Air and Clean Water acts an important priority of our work.”
“Government regulators rely on accurate data to ensure water quality is maintained and this case underscores the serious nature of falsified sampling and laboratory data reports.” said Jennifer Lynn, Assistant Special Agent in Charge of EPA’s criminal enforcement program in Pennsylvania. “The failure to follow the requirements of the Clean Water Act jeopardizes public health and could have resulted in the otherwise undetected pollution of recreational waterways near this wastewater discharge facility.”
Judge Cercone scheduled sentencing for Nov. 21, 2016 at 12:45 p.m. The law provides for a total sentence of 2 years in prison, a fine of $10,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court released Ventresca on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The United States Environmental Protection Agency, Criminal Investigation Division; the Pennsylvania Department of Environmental Protection, Northwest Regional Office; the Pennsylvania Office of Attorney General, and the Erie County, Pennsylvania Health Department conducted the investigation that led to the prosecution of Ventresca.
Former Doña Ana County Clerk’s Office Employee Sentenced to Prison for Federal Theft and Identity Fraud ConvictionRead the Press Release
ALBUQUERQUE – Maria L. Ceniceros, 43, of Anthony, N.M., was sentenced today in federal court in Las Cruces, N.M., to 18 months in prison followed by three years of supervised release for her theft of government property and aggravated identity theft conviction.
Ceniceros and co-defendant Armando Gutierrez-Torres, 51, a Mexican national, were charged in June 2015, with conspiracy to commit theft of government property and aggravated identity theft in a criminal complaint. The charges in the complaint arose out of a scheme to steal money from the United States by using the identities of individuals without their knowledge or consent to generate and cash fraudulent federal income tax refund checks. According to the criminal complaint, Ceniceros and Gutierrez-Torres conspired with each other and others to perpetuate the scheme, and that Ceniceros abused her position as a Document Technician at the Doña Ana County Clerk’s Office to facilitate the scheme.
Law enforcement authorities learned of the scheme in mid-May 2015, when Ceniceros approached a co-worker in the Doña Ana County Clerk’s Office and attempted to solicit his participation in the scheme. The co-worker reported the solicitation to law enforcement authorities and agreed to assist officers in conducting an undercover investigation into Ceniceros and Gutierrez-Torres. During the investigation, Ceniceros provided three fraudulent federal income tax refund checks to the co-worker so that he could cash the checks with the understanding that the proceeds would be divided between Ceniceros, Gutierrez-Torres and the co-worker. Ceniceros and Gutierrez-Torres were arrested on related state charges on May 29, 2015.
On April 27, 2016, Ceniceros pled guilty to a felony information charging her with conspiracy to commit theft of public money and conspiracy to commit aggravated identity theft. Ceniceros admitted that she accessed the Voter Registration database at work and recorded the names, dates of birth and social security numbers of 111 people whose identities she knew were going to be used to file fraudulent federal income tax returns in order to obtain fraudulent refund checks, she also agreed to mail fraudulent federal income tax returns and cash refund checks for Gutierrez-Torres.
On Oct. 13, 2015, Gutierrez-Torres entered a guilty plea to a felony information charging him with conspiracy to commit theft of public money and conspiracy to commit aggravated identity theft. Gutierrez-Torres admitted that in Nov. 2014, he asked Ceniceros for the identifiers of people born in 1995, to be used to file fraudulent federal income tax returns in order to obtain fraudulent refund checks. Gutierrez-Torres further admitted that he asked Ceniceros to mail fraudulent federal income tax returns to the IRS and to cash refund checks in the total amount of $11,963.73. Under the terms of his plea agreement, Gutierrez-Torres will be sentenced to 24 months in prison. He will be deported following his term of imprisonment. A sentencing hearing has yet to be scheduled.
This case was investigated by IRS Criminal Investigation and the Doña Ana County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Former Catonsville Resident Sentenced to 70 Months in Prison for Distributing Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Michael P. Strange, age 56, formerly of Catonsville, Maryland, now of Greenville, South Carolina, today to 70 months in prison followed by 25 years of supervised release for distributing child pornography. Judge Hollander ordered that upon his release from prison, Strange 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).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, in April 2015, a Maryland State Police investigator connected to the internet identified files containing child pornography that Strange had available for download. On April 27, 2015, the investigator downloaded three video files depicting children engaged in sexually explicit conduct.
A search warrant was executed at Strange’s residence in Catonsville on June 12, 2015, and law enforcement seized two laptops. One laptop over 150 videos of child pornography, including the three videos downloaded on April 27, and the other laptop contained search terms indicative of child pornography.
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 praised the HSI Baltimore and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Florida Woman Pleads Guilty to Acting as Illegal Agent of Foreign Government and Conspiring to Commit Money LaunderingRead the Press Release
Amin Yu, 54, of Orlando, Florida, pleaded guilty today to acting in the United States as an illegal agent of a foreign government without prior notification to the Attorney General and conspiring to commit international money laundering.
The plea agreement was announced by Assistant Attorney General for National Security John P. Carlin and U.S. Attorney A. Lee Bentley III of the Middle District of Florida.
“Amin Yu admitted to secretly serving as an agent of the Chinese government,” said Assistant Attorney General Carlin. “Yu obtained and illegally exported items and technology related to marine submersible vehicles at the direction and control of a state-owned entity in China. Protecting our national assets by disrupting efforts by foreign governments to steal sensitive equipment and technology will continue to be a high priority of the National Security Division.”
“Amin Yu made hundreds of thousands of dollars by acting covertly in Orlando on behalf of the Chinese government and by skirting U.S. export laws and regulations,” said U.S. Attorney Bentley. “The enforcement of U.S. laws and regulations related to the national security of the United States remains a top priority for our office.”
According to the plea agreement, from at least 2002 until February 2014, at the direction of co-conspirators working for Harbin Engineering University (HEU), a state-owned entity in the People’s Republic of China, Yu obtained systems and components for marine submersible vehicles from companies in the United States. She then illegally exported those items to the PRC for use by her co-conspirators in the development of marine submersible vehicles – unmanned underwater vehicles, remotely operated vehicles and autonomous underwater vehicles – for HEU and other state-controlled entities. Yu illegally exported items by failing to file electronic export information (EEI), as required by U.S. law, and by filing false EEI. In particular, Yu completed and caused the completion of export-related documents in which she significantly undervalued the items that she had exported and provided false end user information for those items.
Yu faces a maximum penalty of 10 years in prison for acting as an illegal agent of a foreign government and up to 20 years in prison for conspiring to commit money laundering. A sentencing hearing is scheduled for Aug. 29, 2016.
This case was investigated by the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Internal Revenue Service-Criminal Investigation and the Naval Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Daniel C. Irick of the Middle District of Florida and Trial Attorneys David C. Recker and Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section.
Yu Plea Agreement
Florida Man Sentenced to 210 Months in Prison for Orchestrating A Multi-Million Dollar Income Tax Fraud SchemeRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of FRANTZ PIERRE, 36, for orchestrating a multi-million dollar tax fraud scheme and engaging in money laundering. PIERRE, who pleaded guilty on October 27, 2015 to counts one and two of the indictment, was sentenced on June 9, 2016 before U.S. District Judge Donovan W. Frank in U.S. District Court in St. Paul, Minn.
"Today's announcement regarding the 210 month sentencing of Frantz Pierre exemplifies IRS Special Agents' intense focus and rigorous pursuit of identity theft and refund fraud crimes," said Shea Jones, Special Agent in Charge of IRS Criminal Investigation, St. Paul Field Office. “Individuals such as Frantz Pierre who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law.”
According to documents filed in court, from July 2010 through May 2011, PIERRE was the leader and organizer of a scheme to steal from the federal government by filling hundreds of fraudulent income tax returns. PIERRE and his co-conspirators used stolen social security numbers and other personal identifiers as well as fabricated employment and income information to complete hundreds of income tax returns and to claim millions of dollars in fraudulent tax refunds.
According to documents filed in court, as part of the scheme, PIERRE and his co-conspirators would establish fictitious tax preparation businesses and then open multiple bank accounts in the names of the fictitious businesses. In addition, PIERRE directed the IRS to deposit the fraudulently obtained income tax refunds into the bank accounts set up by the defendant and his co-conspirators. In total, PIERRE and his co-conspirators submitted approximately 776 fraudulent tax returns to the IRS, resulting in $5,249,935 in tax refunds to be deposited into the fictitious companies’ bank accounts.
As part of his sentence, PIERRE was ordered to forfeit his house in Parkland, Florida and pay $906,556 in restitution.
This case was prosecuted by Assistant U.S. Attorneys Joseph Thompson and Lola Velazquez-Aguilu.
This case is the result of an investigation conducted by the Internal Revenue Service- Criminal Investigation Division.
Defendant Information:
FRANTZ PIERRE, 36
Parkland, FL
Convicted:
- Conspiracy to Defraud the Government, 1 count
- Money Laundering, 1 count
Sentenced:
- 210 months in prison
- $906,556 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Five Men Arrested for Operating A Credit Card Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that five defendants are under arrest and charged by criminal complaint with operating a credit card fraud scheme. Under arrest are:
• Kyle Bertrand
• Paul Kozlyuk
• Richard Lipke
• Michael Gerone
• Herbert StreetThe defendants are charged with conspiracy to commit wire fraud, aggravated identity theft, and trafficking in unauthorized access devices. The charges carry a mandatory minimum penalty of two years in prison, a maximum of 20 years, and a $250,000 fine.
“This case serves as a reminder that consumers should never provide credit card information to anyone but known, trusted companies and persons,” said U.S. Attorney Hochul. “In addition, legitimate companies will seldom if ever threaten to terminate a service unless credit card or other financial information is provided immediately over the telephone.”
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, between January 2015 and July 2015, the defendants made fraudulent and unauthorized credit card purchases over the phone at various stores in the Rochester area. The purchases were made at stores such as All County Lawn, Tractor, and Trailer, Home Depot, Victor Power Equipment, Charlotte Appliance, Admar Construction Equipment, Brodner Equipment, Del Monte Spa, Wehner Mower, Inc. Bentley Brothers Tractor Equipment Supplier, GBG Inc., Little Power Shop, Diesel Power Products, and Best Tile.
The defendants randomly called people on the phone and stated that their cell phone or cable would be shut off unless they provided credit card information over the phone to settle delinquent bills. The defendants then used the stolen credit card information to make the purchases.
Items purchased by the defendants using the stolen credit cards included snow plows, gas generators, saws, freezers, electric ranges, dishwashers, microwaves, washers and dryers, gift cards, jet skis, and furnaces. Further investigation determined that some of the items were listed for sale on Craigslist.
A search warrant was executed at the residence of Michael Gerone and law enforcement officers recovered some of the items includinf a refrigerator, dishwasher and furnace. Richard Lipke was also found in possession of some of the items.
Hochul further stated, “Consumers should know common sense safety measures which can be taken. Upon receiving a call that a bill is allegedly owed, obtain the telephone number and name of the caller. Next, look up or research for yourself whether you owe the bill, and further, the customer service information for that creditor. Never be rushed, and threats to terminate service are often red flags for a fraudulent scheme. These and other tips can be found at the StopFraud.gov.”
The complaint is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.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.
Federal Jury Finds Fayetteville Man Guilty of Three Violent Hobbs Act Robberies and Firearm OffensesRead the Press Release
ELIZABETH CITY – The United States Attorney’s Office for the Eastern District of North Carolina announced that a federal jury in Elizabeth City found SMITH MERINORD guilty of three counts of Hobbs Act Robberies and for the use and carrying a firearm in furtherance of a crime of violence, and the firearm was brandished.
MERINORD and a co-defendant were named in an Indictment filed on April 29, 2015. MERINORD entered the Advance Auto Parts Store on Owen Drive in Fayetteville on November 2, 2013 armed with a small Uzi. He threatened the employees with the firearm during the robbery and raped and sexually assaulted a female employee before fleeing with cash. Later that day, MERINORD and a co-defendant robbed another Advanced Auto on Roberts Avenue in Lumberton. MERINORD again threatened store employees with the Uzi and fled with cash. On November 16, 2013, MERINORD and an accomplice entered the Red Lobster located on McPherson Church Road in Fayetteville and held the manager at gunpoint and stole cash before fleeing. Off duty officers and other law enforcement apprehended MERINORD and his accomplice in the CarMax parking lot located near the Red Lobster. MERINORD had a small Uzi in his waistband.
At sentencing, MERINORD faces a mandatory minimum sentence of 57 years to life imprisonment on the gun counts and up to 60 years on the Hobbs Act Robbery Counts.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Fayetteville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorneys Frank Bradsher and Peggah Wilson represented the government.
Erie Woman Sentenced to 5 Years in Federal Prison for Role in Cocaine Trafficking RingRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 60 months in prison and 4 years of supervised release on her conviction of violating federal drug laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Sammar Aimee Melchor, 34.
According to information presented to the court, from June 2013 through February 2015, Melchor engaged in a conspiracy to distribute and possess with intent to distribute between five and fifteen kilograms of cocaine which she obtained from other co-conspirators. The court was also advised that on or about October 28, 2014, Melchor distributed and possessed with intent to distribute 6 ounces of cocaine. The court was advised that the cocaine was distributed in Erie as part of a large network transporting cocaine from Mexico into Texas, and from Texas to Erie, Pennsylvania concealed in hidden compartments in vehicles.
Judge Cercone also ordered the forfeiture of two cellular telephones and a 2004 Toyota Matrix vehicle that were utilized by the defendant in the commission of the offense.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Homeland Security Investigations; the Drug Enforcement Administration; the Pennsylvania State Police; U.S. Border Patrol; the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section; the U.S. Postal Inspection Service; the U.S. Marshals Service; and the Bureau of Alcohol Tobacco Firearms and Explosives for the investigation leading to the successful prosecution of Melchor.
East Bay Home Health Care CFO Pleads Guilty to Failing to Truthfully Account for and Pay Employment TaxesRead the Press Release
OAKLAND – Muzaffar Hussain pleaded guilty in federal court today to failing to account for and pay employment taxes to the United States, announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.
In pleading guilty, Hussain, 68, of Pleasanton, admitted that as CFO of Crossroads Home Health Care, Inc., he had the duty to file the Employer’s Quarterly Federal Tax Returns [Forms 941] with the Internal Revenue Service (“IRS”) and to pay over the employment taxes. Such taxes, referred to as trust fund taxes, include income tax, social security tax, and a hospital insurance (Medicare) tax collected from the wages of Crossroads’ employees. Hussain admitted he knew the trust fund taxes were required to be paid to the IRS and that the funds were not monies he could use or borrow. Further, Hussain acknowledged that during the relevant period, he had sole authority and control over Crossroads’ Bank of America account in which monies for the trust fund taxes were deposited. Nevertheless, for each pay period between July 1, 2004, and February 27, 2008, Hussain transferred funds in an amount equal to, or close to, the amount of employment taxes from the Bank of America account to other bank accounts. Hussain thereafter used the monies, including the trust fund taxes, to fund other business and personal interests. Hussain also admitted to knowingly causing the submission to the IRS of false Forms 1120 for Crossroads—the false forms underreported gross receipts received from Medicare. In sum, the total amount of taxes either underpaid or underreported was $495,000.
On July 30, 2015, a federal grand jury returned a superseding indictment charging Hussain with thirteen counts of making or subscribing a false tax return, in violation of 26 U.S.C. § 7206(1); seventeen counts of willful failure to truthfully account for an pay over taxes, in violation of 26 U.S.C. § 7202; and one count of structuring transactions to evade reporting requirements, in violation of 31 U.S.C. § 5324(a)(3). Under the plea agreement, Hussain pled guilty to one count of willful failure to truthfully account for and pay over taxes, in violation of 26 U.S.C. § 7202.
Hussain currently released on bond. His sentencing hearing is scheduled for January 20, 2017, at 9:30 a.m. before the Honorable Jon Tigar, U.S. District Court Judge, in Oakland. The maximum statutory penalty for a violation of 26 U.S.C. § 7202 is five years’ imprisonment and a fine of $250,000, plus restitution if appropriate. Additional fines and a term of supervised release also may be ordered, however, any sentence will be imposed only after consideration of the U.S. sentencing guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. s 3553.
Assistant U.S. Attorneys Cynthia Stier and Jose Olivera are prosecuting the case with the assistance of Kathy Tat. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Dominican National Sentenced to 51 Months in Prison for Illegal Reentry to the U.S.Read the Press Release
PROVIDENCE, R.I. – Manuel Soto-Pena, 31, a Dominican national who formerly resided in Woonsocket, was sentenced today to 51 months in federal prison, having admitted to the court that he entered the United States illegally on three occasions, twice after having been deported.
Soto-Pena, indicted by a federal grand jury on October 7, 2015, on one count of illegal reentry, pleaded guilty on March 25, 2016, as charged in the indictment.
Manuel Soto-Pena’s sentence, imposed by United States District Court Chief Judge William E. Smith, is announced by United States Attorney Peter F. Neronha and Russell Hott, Acting Field Office Director for ICE Enforcement and Removal Operations.
According to court records and information presented to the court, Mr. Soto-Pena was first removed from the United States in February 2011, after it was learned that he had entered the country illegally and was using the identity of a U.S. Citizen. He was removed from the country a second time in June 2012, after having reentered the country illegally and subsequently was convicted in Rhode Island state court on a drug trafficking charge.
According to court records and information presented to the court, sometime after being deported in June 2012, Mr. Soto-Pena entered the United States illegally for a third time. He was arrested in Rhode Island in January 2014 and subsequently convicted in state court on a charge of felony domestic assault. On September 23, 2015, after having completed serving a state prison sentence, Mr. Soto-Pena was turned over to the custody of ICE.
The case in U.S. District Court was prosecuted by Assistant U.S. Attorney Zechariah Chafee.
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Jim Martin (401) 709-5357
email: [email protected]
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District Man Sentenced to 24 Years in Prison for 2014 Slaying of His Estranged WifeRead the Press Release
WASHINGTON – Michael Gayle 35, of Washington, D.C., was sentenced today to a 24-year prison term on a charge of second-degree murder stemming from the brutal strangling and stabbing of his estranged wife at her home in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Gayle pled guilty in April 2016, in the Superior Court of the District of Columbia. He was sentenced by the Honorable Lynn Leibovitz. Following his prison term, Gayle will be placed on five years of supervised release.
According to the government’s evidence, in the early morning hours of June 29, 2014, Gayle went to the home of his wife, 31-year-old Eboni Domally, in the 5200 block of Queens Stroll Place SE. On that date, Gayle was no longer living at the home, having moved out over two months earlier. After arriving at the home, Gayle strangled Ms. Domally, and then later stabbed her, causing extensive sharp force injuries to Ms. Domally. These injuries eventually led to Ms. Domally’s death. Ms. Domally’s young son observed the events and ran to get help.
Gayle left the home before help arrived. He was ultimately arrested on July 22, 2014, by the U.S. Marshals Service and the Capital Area Regional Fugitive Task Force at his mother’s home in Charlotte, N.C. He has been in custody ever since.
Gayle pled guilty in 2012 in the Circuit Court for Prince George’s County, Md., to assault and burglary charges stemming from another incident in September 2011 with his wife.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by the U.S. Marshals Service, the Capital Area regional Fugitive Task Force, and the Charlotte-Mecklenburg Police Department. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Patricia A. Riley, Special Counsel to the U.S. Attorney; Victim/Witness Advocate Marcia Rinker; Paralegal Specialists Benjamin Kagan-Guthrie and Kendra Johnson; former Lead Paralegal Specialist Kwasi Fields. and Librarian Lisa Kosow. Finally, he commended the work of Assistant U.S. Attorneys Magdalena Acevedo and Amy H. Zubrensky, who investigated and prosecuted the case.
Department of Justice and Staff of the Federal Trade Commission Highlight Consumer Benefits of Expanding Competition for Legal ServicesRead the Press Release
Agencies Urge North Carolina General Assembly to Consider the Competitive Benefits of Legislation Allowing Interactive Websites to Generate Legal Forms for Consumers
The Department of Justice’s Antitrust Division and the staff of the Federal Trade Commission have submitted a joint statement to the North Carolina legislature on the potential competition and consumer benefits of legislation that would allow websites to generate legal forms for consumers. Websites that offer this type of interactive software may be more cost-effective for some consumers, exert downward price pressure on licensed lawyer services, and promote more efficient and convenient access to legal services.
The agencies also noted that scope-of-practice laws can have valid consumer protection justifications. However, they recommend that such restrictions should be imposed only where there is credible evidence of likely harm to consumers. Any restrictions should be narrowly tailored to address the harm and not unnecessarily inhibit new and competitive ways to deliver legal services for the benefit of consumers.
“Competition between lawyers and non-lawyers for certain legal services can drive down prices, provide consumers with new and more convenient options, and expand access to legal services,” said Principal Deputy Assistant Attorney General Renata Hesse of the Antitrust Division. “When analyzing House Bill 436, the North Carolina General Assembly should consider the benefits to consumers and competition that would result from allowing consumers to use interactive software to generate legal forms.”
The joint statement is in response to a request from North Carolina State Senator Bill Cook. The request asked for views on North Carolina House Bill 436, legislation that would exclude from the statutory definition of the practice of law the operation of a website that generates legal documents based on consumer responses to questions presented by interactive software, provided certain conditions are satisfied.
Connecticut Man Pleads Guilty in Manhattan Federal Court to Conspiracy to Obstruct Justice and Money Laundering Charges in Connection with Scheme to Hide Assets from Two Federal Courts and the SECRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROBERT A. OLINS pled guilty in Manhattan federal court today to charges of conspiracy to obstruct justice and money laundering. The charges relate to OLINS’s scheme to hide his assets – including his multimillion-dollar art and antiques collection (the “Art and Antiques Collection”), which was subject to liquidation to satisfy a $3.3 million disgorgement judgment entered by a federal court in California – from federal courts in New York and California, in connection with an enforcement proceeding brought by the Securities and Exchange Commission (the “SEC”), and to launder the money derived from the scheme.
OLINS was arrested on August 26, 2015, and pled guilty today before United States District Judge Jesse M. Furman.
U.S. Attorney Preet Bharara said: “As he admitted today, Robert Olins carried out a scheme to deceive and hide assets from two federal courts, a court-appointed receiver, and the SEC. Olins repeatedly lied to get approval for transactions, and used the proceeds to pay for personal luxuries, rather than to satisfy court judgments, as he was required to do.”
According to the Indictment and statements made at today’s plea hearing:
On February 25, 2011, a federal district court in California (the “California Court”) entered a judgment against OLINS, ordering him to pay disgorgement to the SEC in the amount of $3.3 million (the “Disgorgement Order”). On July 27, 2011, the SEC filed an action in federal court in the Southern District of New York (the “New York Court”) registering the Disgorgement Order and requesting the appointment of a receiver to liquidate the Art and Antiques Collection and to apply the proceeds of such liquidation toward the Disgorgement Order. On May 29, 2012, the New York Court issued an order (the “Receiver Order”) appointing American Bank and Trust Company (“AB&T”) as Receiver, as AB&T had a first and prior security interest in the Art and Antiques Collection. The Receiver Order prohibited OLINS, as well as any other person or entity with “possession, custody or control” of any item from the Art and Antiques Collection, from engaging in any form of side deal, self-help, set-off or transaction not approved by the New York Court.
From August 2011 through August 2015, OLINS engaged in a conspiracy to obstruct the administration of justice in the New York Court and the California Court, by among other misrepresentations, making false statements in order to mislead those courts concerning OLINS’s financial condition, and to obtain court approval for certain transactions concerning the Art and Antiques Collection. OLINS then received money from the sale of items in the Art & Antiques Collection that should have gone to the SEC and AB&T, and instead used the proceeds for his own purposes, including to make payments toward the purchase of additional antiques, specifically, a $695,000 set of antique wall brackets. In June 2012, OLINS directed that certain monies he derived from the scheme be wired to a bank account in the Isle of Man, for the purpose of promoting his unlawful conduct of hiding his assets from the Courts, the SEC, and AB&T. Once the money was received in the Isle of Man, OLINS then directed that the money be transferred back into the United States and used it to pay personal expenses.
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OLINS, 59, of West Hartford, Connecticut, faces a maximum sentence of five years in prison, three years of supervised release, the greatest of $250,000, twice the gross pecuniary gain derived from the offense, or twice the gross pecuniary loss to persons other than the defendant resulting from the offense, and a $100 mandatory special assessment on Count One; and a maximum term of 20 years in prison, three years of supervised release, a fine of the greater of $500,000 or twice the value of the funds involved in the transfer, and a mandatory $100 special assessment on Count Five. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by Judge Furman. OLINS is scheduled to be sentenced by Judge Furman on September 29, 2016, at 3:30 p.m.
Mr. Bharara praised the work of the Federal Bureau of Investigation and the United States Postal Inspection Service, and thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Christine I. Magdo and Andrea M. Griswold are in charge of the prosecution.
Cold Case Murder SolvedRead the Press Release
The men responsible for Tony “T-Bone” Canfield’s death pled guilty today in federal court in Sioux City, Iowa.
Courtland Clark, age 26, from Flowery Branch, Georgia, Robert Beaver, age 35, from Sioux City, Iowa, and Devery Hibbler, age 26, from Dumas, Arkansas, were convicted of one count of interference with commerce by robbery. In addition, Clark and Hibbler also pled guilty to one count of use of a firearm during and in relation to a crime of violence causing death.
Evidence at the change of plea hearings revealed: at about 11:00 pm on May 1, 2011, in Sioux City, Iowa, Beaver, Clark, and Hibbler, armed with a single loaded handgun, entered Tony Canfield's home to rob him of his marijuana and his marijuana proceeds. Beaver beat and held Canfield's wife while Clark and Hibbler struggled with, and physically robbed Canfield. Canfield resisted his attackers and attempted to escape the robbery by fleeing from his home. Canfield did not make it to safety; he was shot to death on his front porch by Hibbler.
The three defendants escaped the crime scene and successfully concealed their crimes for nearly five years. They were charged in a Superseding Indictment on April, 19, 2016.
Canfield was targeted for robbery because he was a marijuana dealer whose illegal interstate business earned him large sums of cash. The robbery and murder affected interstate commerce allowing for federal prosecution of the case.
United States Attorney Kevin Techau stated: “This case is a fine example of persistence and cooperation by the Sioux City Police Department, Woodbury County Attorney’s Office and the Federal Bureau of Investigation. Despite a number of obstacles along the way, these three agencies, along with the United States Attorney’s Office, never stopped working toward solving this murder, and bringing those responsible to justice. This case gives notice to those who would commit acts of violence in our communities that no matter what the difficulties, and no matter how long it takes, we will investigate and prosecute such acts of violence to the full extent of the law.”
This case is being prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. The case was referred to the United States Attorney’s Office by the Sioux City, Iowa Police Department and the Woodbury County Attorney’s Office.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Clark, Hibbler, and Beaver remain in custody of the United States Marshal pending sentencing. Pursuant to plea agreements: Hibbler has agreed to serve 35 years in federal prison without the possibility of parole or the right to appeal his conviction and Beaver has agreed to serve 20 years in federal prison without the possibility of parole or the right to appeal his conviction. As charged, all three defendants, (i.e., Clark, Beaver, and Hibbler, each) faced up to life in prison without the possibility of parole, fines of up to $500,000.00, $200.00 in special assessments and up to five years of supervised release following any imprisonment.
The case was investigated by the United States Department of Justice - Federal Bureau of Investigation, Sioux City Iowa Police Department, and the Woodbury County Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-4009.
Follow us on Twitter @USAO_NDIA.
Career Offender from Albuquerque Sentenced to 36 Years for Conviction on Crack Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Gabriel Mirabal, 34, of Albuquerque, N.M., was sentenced late yesterday afternoon to 36 years (432 months) in federal in prison followed by 10 years of supervised release for his conviction on narcotics trafficking and firearms charges. Mirabal’s sentence was announced by U.S. Attorney Damon P. Martinez, 1st Judicial District Attorney Jennifer Padgett, Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division, and New Mexico State Police Lt. Scott McFaul who serves as the Commander of the HITDA Region III Drug Task Force.
Mirabal, a career offender whose criminal history includes felony convictions for methamphetamine trafficking and aggravated battery with a deadly weapon, was prosecuted under the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo and Santa Fe Counties, under this initiative.
In announcing the sentence, U.S. Attorney Damon P. Martinez said, “Through this initiative, the law enforcement community is taking repeat, violent offenders out of our communities one at a time and making New Mexico a safer, better place to live, work and raise families.”
“For ten years Mirabal engaged in criminal conduct that preyed on the weak and innocent,” said DEA Special Agent in Charge Will R. Glaspy. “Today, along with our law enforcement partners, DEA is pleased to inform the citizens of Bernalillo and Santa Fe Counties that they can rest easier knowing that Mirabal will be locked up in federal prison for the next 36 years.”
“The ‘worst of the worst’ initiative is exactly the type of inter-agency collaboration that this district needs to get the violent repeat offenders like Mirabal off of our community’s streets,” said 1st Judicial District Attorney Jennifer Padgett.
Commander of the HIDTA Region III Drug Task Force Lt. Scott McFaul added, “I believe that prosecuting and sentencing these offenders under the ‘worst of the worst’ initiative shows our communities and repeat offenders that federal, state and local law enforcement agencies are serious about working together to take criminals off our streets.”
Mirabal was one of five men indicted in April 2013, on narcotics and firearms charges as the result of “Operation Rio Grande Stucco,” a DEA investigation into an organization led by Mirabal that manufactured and distributed cocaine base, more commonly known as “crack,” in Bernalillo and Santa Fe Counties. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program, a nationwide Department of Justice initiative that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. During the investigation, which utilized electronic surveillance (wiretaps), law enforcement officers seized more than 100 grams of crack, over a kilogram of cocaine, a loaded firearm and assorted ammunition, and body armor.
The investigation resulted in the filing of a five-count indictment charging Mirabal and four co-defendants, Santa Fe residents Robert Romero, 27, and Michael Jaramillo, 25, and Albuquerque residents Sam Elyicio, Jr., 39, and Dominic Anaya, 34, with conspiracy to distribute crack in Bernalillo and Santa Fe Counties between May 2012 and April 2013, and substantive crack trafficking offenses. After his four co-defendants entered guilty pleas, Mirabal was charged in a six-count superseding indictment with participating in a crack distribution conspiracy, two counts of possession of cocaine with intent to distribute, using a firearm in furtherance of a drug trafficking crime, being a felon in possession of a firearm and ammunition, and being a felon in possession of body armor.
Mirabal was found guilty on Dec. 15, 2015, when a federal jury returned a verdict finding Mirabal guilty on four of the six counts of the superseding indictment. The jury convicted Mirabal on the conspiracy charge, one count of possession of cocaine with intent to distribute, and being a felon in possession of a firearm, ammunition and body armor. It acquitted him on one count of possession of cocaine with intent to distribute and using a firearm in furtherance of a drug trafficking crime.
The charges against Mirabal’s co-defendants have been resolved as follows:
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Jaramillo pled guilty on March 21, 2014, to a conspiracy charge, and was sentenced on July 30, 2014, to 78 months in prison followed by four years of supervised release.
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Romero pled guilty on May 13, 2014, to crack trafficking and firearms charges, and was sentenced on Aug. 13, 2014, to 120 months in prison followed by four years of supervised release.
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Elyicio pled guilty on June 23, 2014, to a conspiracy charge, and was sentenced on Sept. 22, 2014, to 125 months in prison followed by four years of supervised release.
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Anaya pled guilty on Aug. 5, 2014, to a conspiracy charge, and remains in custody pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and the HIDTA Region III Drug Task Force, with assistance from the 1st Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorneys Nicholas J. Ganjei and Joel R. Meyers.
The Region III Drug Task Force is comprised of officers from the New Mexico State Police, Santa Fe Police Department, the Santa Fe County Sheriff’s Office and the Rio Arriba County Sheriff’s Office and receives support from the HIDTA – High Intensity Drug Trafficking Area – program. HIDTA is a program of the White House Office of National Drug Control Policy that provides assistance to federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States.
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Canadian Drug Trafficker who fought Extradition for Years Sentenced to 7 Years in PrisonRead the Press Release
One of the leaders of a drug smuggling ring that moved loads of drugs across the northern border with Canada in devices ranging from helicopters to backpacks was sentenced today in U.S. District Court in Seattle to seven years in prison, announced U.S. Attorney Annette L. Hayes. SEAN WILLIAM DOAK, 42 of Vernon, British Columbia, Canada was indicted in 2010, for his leadership of a cross border drug smuggling ring that operated from at least 2007-2009. DOAK was extradited to the U.S. in 2015, and pleaded guilty in December 2015 to Conspiracy to possess with the intent to distribute marijuana, cocaine and ecstasy. At today’s sentencing U.S. District Judge Robert S. Lasnik noted that the drugs trafficked by DOAK’s organization damaged users and fed addiction across the U.S. and Canada. The judge asked DOAK how he could reconcile his position as a supportive family man, with the damage he had done to other families with his drug trafficking.
According to records filed in the case, DOAK was operating his drug trafficking ring even as he was on work release for a drug sentence in Canada. DOAK and his co-conspirators arranged for loads of drugs to be smuggled across the United States/Canada border by truckers, hikers and snowmobilers, and increasingly towards the end of the charged conspiracy, by helicopters. The MDMA and marijuana originated in Canada and was transported south into the United States; the cocaine was obtained in Southern California and transported into Canada.
At various times law enforcement seized large loads of drugs connected to the ring: 200,000 MDMA pills on March 6, 2008; 72 kilograms of cocaine seized on March 10, 2008; 83 kilograms of cocaine seized on February 21, 2009; 20 kilograms of cocaine seized on February 28, 2009; 420 pounds of marijuana seized on February 23, 2009; and 325 pounds of marijuana and 40,000 MDMA pills seized on March 5, 2009.
Other co-conspirators have been sentenced to prison terms ranging from 10 years in prison to 18 months in prison.
The case was investigated by the Drug Enforcement Administration (DEA) with assistance from the Royal Canadian Mounted Police (RCMP) and the Utah Highway Patrol. The case is being prosecuted by Assistant United States Attorney Susan Roe.
California Man Sentenced to 32 Months in Prison for Conspiring to Violate U.S. Sanctions Against SyriaRead the Press Release
Amin al-Baroudi, 50, a Syrian-born naturalized U.S. citizen, formerly of Irvine, California, was sentenced today to 32 months in prison for conspiring to export U.S.-origin goods from the United States to Syria in violation of sanctions imposed on Syria by the U.S. government.
The sentence was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Division and Director Douglas Hassebrock of the U.S. Department of Commerce’s Office of Export Enforcement.
Baroudi pleaded guilty on Jan. 15, 2016. According to court documents, Baroudi admitted that from at least December 2011 through March 2013, he and his co-conspirators exported U.S. tactical equipment to Syria for the purpose of supplying and arming Ahrar al-Sham and other insurgent groups in Syria whose stated goal is to overthrow the Assad government and install an Islamic state. Ahrar al-Sham frequently fights alongside Jabhat al-Nusrah, which has been designated by the U.S. State Department as a foreign terrorist organization and operates as al-Qaeda’s official branch in Syria.
According to court documents, Baroudi and his co-conspirators purchased tens of thousands of dollars of goods from companies and vendors in the United States, consisting largely of tactical equipment such as sniper rifle scopes, night vision rifle scopes, night vision goggles, laser bore sighters, speed loaders and bullet proof vests. Baroudi and his co-conspirators traveled with the goods aboard commercial flights to Turkey and then transported the goods into Syria or provided them to others for transport. Baroudi made two such trips in February and March of 2013.
The case is being investigated by the FBI’s Washington Field Office, FBI’s Los Angeles Division and the U.S. Department of Commerce’s Office of Export Enforcement. Immigration and Customs Enforcement’s Homeland Security Investigations; California Highway Patrol; the Irvine Police Department; the Orange County, California, Sheriff’s Department; and the Regional Computer Forensics Laboratory in Orange County provided significant assistance.
The case is being prosecuted by Assistant U.S. Attorney Julia K. Martinez of the Eastern District of Virginia and Trial Attorneys Christian Ford and Robert Wallace of the National Security Division’s Counterintelligence and Export Control Section.
Boston Man Convicted in Illegal Gun Running SchemeRead the Press Release
BOSTON – A Boston man was sentenced today in connection with his role in a scheme to illegally transport firearms into Massachusetts.
Shayne Parker, 41, of Dorchester, was sentenced by U.S. District Court Judge F. Dennis Saylor, IV to five years in prison and three years of supervised release. In March 2016, Parker was convicted following a five-day trial of interstate transportation of firearms and being a felon in possession of 50 rounds of ammunition. Parker has several felony convictions, including for violence and drug trafficking crimes.
In the spring of2014, a joint law enforcement investigation uncovered a scheme in which firearms were bought in gun stores in New Hampshire and transported to Massachusetts for sale on the streets of Boston. The New Hampshire purchasers of the firearms were paid with drugs for their help.
During the course of the scheme, 16 guns were trafficked into Boston within three-weeks using three different straw purchasers. Ronald Scott, who was convicted in New Hampshire, purchased the guns and ammunition while Parker drove Scott to and from each of the five purchase locations in New Hampshire and handled the weapons and ammunition.
One of the guns – a 9mm semi-automatic firearm – was recovered on April 2, 2014, after Boston Police officers pursued and arrested a suspect. The firearm had been purchased 11 days before by Parker and his associates. In addition, during a search of a residence in Mattapan, law enforcement officers seized a .380 caliber semi-automatic weapon and a box containing 50 rounds of ammunition. The ammunition had been purchased just 22 days prior at Dick’s Sporting Goods in New Hampshire and transported to Massachusetts by Parker.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William B. Evans, made the announcement. The case was prosecuted by Assistant U.S. Attorney Glenn MacKinlay of Ortiz's Organized Crime and Gang Unit.
Biloxi Man Sentenced to Prison for Possession and Production of Child PornographyRead the Press Release
Gulfport, Mississippi. – Ruben Ralph-James Masters, 43, of Biloxi, was sentenced on Thursday, June 9, 2016, by Chief U.S. District Judge Louis Guirola, to 120 months in prison for possession of child pornography, and 300 months in prison for production of child pornography, announced U.S. Attorney Gregory K. Davis. The sentences will run concurrently. Masters was also ordered to pay a fine in the amount of $10,000, as well as restitution,
Masters entered a guilty plea to the charges on September 29, 2015. The evidence in this case revealed that as he knowingly possessed one or more images and videos constituting child pornography, and he produced videos which contained visual depictions of a minor engaging in sexual explicit conduct.
This case was jointly investigated by U.S. Homeland Security Investigations and the Biloxi Police Department as part of the Gulf Coast Cyber Crimes Task Force. It was prosecuted by Assistant U.S. Attorneys Glenda Haynes and Andrea Jones.
Baltimore Man Sentenced for Selling Stolen MerchandiseRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Adrian Scott Little, age 55, of Baltimore, Maryland today to 18 months in prison followed by three years of supervised release for transporting stolen goods. Judge Garbis ordered Little to forfeit the contents of several bank accounts and the large quantity of retail products seized from his warehouse and residence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; and the United States Secret Service - Baltimore Field Office.
According to his plea agreement, from at least December 2011 to March 2015, Little bought stolen consumer products from shoplifters to resell online on eBay and Bonanza. The products included over-the counter medication, bath and beauty products and razor blades. He also obtained similar products from other sources, including internet auction websites.
Little maintained a business warehouse where he removed anti-theft devices and stored the stolen items. He also stored and shipped stolen items out of his home.
Little obtained approximately $200,000 from the fraud scheme.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service for its work in the investigation and thanked Assistant U.S. Attorneys Zachary A. Myers and Aaron S.J. Zelinsky, who prosecuted the case.
Austin Area Chiropractor Sentenced to 14 Years in Federal Prison for Receiving Millions in Kickbacks and Money LaunderingRead the Press Release
In Austin this afternoon, Garry Wayne Craighead, a 49-year-old Leander, TX, chiropractor, was sentenced to 14 years in federal prison for receiving over $17 million in kickbacks in exchange for referring patients covered by the federal worker’s compensation program (FECA program), announced United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, United States District Judge Sam Sparks ordered that Craighead pay $17,908,170 restitution to the U.S. Department of Labor; forfeit to the Government property located in Williamson County as well as a Mooney M0J aircraft; and, be placed on supervised release for a period of three years after completing his prison term.
On December 4, 2015, Craighead pleaded guilty to one count of solicitation and receipt of illegal remunerations in federal health programs and one count of engaging in monetary transactions in property derived from specified unlawful activity. In his guilty plea, Craighead acknowledged that he operated several medical and rehabilitation clinics that treated injured workers, particularly postal employees, covered by FECA. His clinics did business under the names Union Treatment Center and Greentree Health, among others, and had locations in Austin, San Antonio, Killeen, Corpus Christi, Dallas, Fort Worth, and Weslaco. Craighead admitted that, from 2008 through 2015, he solicited and received millions in kickbacks from health care providers, including multiple pharmacies, hospitals, ambulatory surgical centers, and affiliated businesses, in return for referring his FECA patients to those providers for medical items and services, including prescription drugs, surgeries, and other procedures. The DOL paid millions as a result of the tainted referrals made by Craighead. In addition to the kickbacks, Craighead admitted to laundering the proceeds of his illegal conduct.
Craighead has remained in federal custody since March 2, 2016, when he was arrested by federal authorities for continuing to receive approximately $600,000 in kickbacks, dissipating the funds, lying to government investigators, and testing positive for illegal drug use while on bond.
The United States Department of Labor (DOL) administers the FECA program, which covers roughly 3 million federal civilian and postal employees who suffer job-related injuries. Benefits include payment of an eligible worker’s medical, rehabilitation, and pharmacy expenses. FECA is a federal health care program, and the DOL uses federal funds to reimburse health care providers that treat injured workers.
“We hope that today’s sentencing will serve as a strong deterrent to healthcare providers who contemplate soliciting or receiving illegal kickbacks in return for referring Federal Employees Compensation Act claimants. The Department of Labor Office of Inspector General will continue to work with the Department of Justice and our law enforcement partners to vigorously pursue medical providers who commit fraud related to the Federal Employees Compensation Act program.” said Special Agent in Charge Steven Grell, U.S. Department of Labor Office of Inspector General.
“Kickback schemes such as these threaten the financial integrity of public healthcare programs. The workers’ compensation program benefits thousands of postal employees who have received legitimate on-the-job injuries. This case should send a clear message to all health care providers that workers’ compensation fraud is a federal crime that carries serious consequences and will not be tolerated”, said Special Agent in Charge Scott Pierce, U.S.P.S. Office of Inspector General, Contract Fraud Investigations Division.
“We are very pleased with today’s announcement,” said Frank Robey, director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “This is a true testament to our continued commitment to work closely and seamlessly with our outstanding fellow law enforcement agencies to help bring those to justice who attempt to defraud the U.S. Government and U.S. Army.”
“The sentence handed down today should send a strong message to healthcare providers, and others who contemplate engaging in illegal kickback schemes, that they will be held accountable for their actions. The FBI will continue to work with our partners, to aggressively investigate and prosecute criminals who abuse the system for personal enrichment, at the expense of hard working U.S. taxpayers,” stated FBI Special Agent in Charge Christopher Combs, San Antonio Division.
The United States Postal Service Office of the Inspector General, United States Army Criminal Investigation Command’s Major Procurement Fraud Unit, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and the Department of Labor Office of the Inspector General conducted this investigation for the United States. Assistant United States Attorneys Jim Blankinship and Mark Marshall prosecuted this case for the United States.
Craighead’s criminal case can be found at United States v. Garry Wayne Craighead, A:15-cr-348 (W.D. Tex.)
Amherst Woman Pleads Guilty to Conspiracy to Import Alpha-PVPRead 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 Judi Strong, 43, of Amherst, NY, pleaded guilty to conspiracy to import Alpha-PVP, a Schedule I controlled substance, before U.S. District Court Judge Lawrence J. Vilardo. The charge carries a maximum sentence of 20 years in prison, a fine of $1,000,000, or both.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that in July 2015, Strong conspired with a co-defendant to import Alpha-PVP into the United States from China. The defendant ordered the substance on-line and had it shipped in two FedEx Express Mail packages to her residence in Amherst. Federal law enforcement officers intercepted the packages and performed a controlled delivery to Strong at her residence where she accepted delivery of the two packages. The two packages contained approximately 178 grams of Alpha-PVP.
The plea is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Sentencing is scheduled for September 16, 2016 at 12:30 p.m. before Judge Vilardo.Albion Couple Pleads Guilty to Producing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Normann Pittelkow, 42, and his long-time girlfriend Nicole Jacob, 35, of Albion, Michigan, both pled guilty in federal court this week to producing child pornography. Pittelkow admitted that he video recorded a child posing naked and in lingerie and sold the video, as well as one of her in the bathtub, for $200 to someone he met online, and he also admitted to possessing pornographic pictures he produced of three other children. Jacob admitted to posing with three children in lingerie and nude in a series of photographs that Pittelkow took, which she intended to sell online but never did. The couple fled the state and traveled to the southwest and southeast parts of the country. They eventually surrendered after a nationwide bulletin went out for their arrest.
Pittelkow faces a mandatory minimum of 15 years and a combined maximum of 40 years in prison, and Jacob faces 15 to 30 years. They will be sentenced in October. Both Pittelkow and Jacob must register as sex offenders, agreed to pay restitution, and could spend up to a lifetime on intensive federal supervised release after prison.
The Albion Department of Public Safety and Homeland Security Investigations jointly investigated this case. Assistant U.S. Attorney Tessa K. Hessmiller prosecuted the case.
"The children in this case were rescued from an unimaginable situation after one of them made a brave disclosure to a friend," said U.S. Attorney Patrick Miles. "I applaud that young girl for coming forward and not suffering in silence any longer, and I commend the Albion Department of Public Safety for executing a search warrant that night, where officers found the evidence that brought this couple to justice."
"The public provided critical assistance in this investigation, which ultimately led to this couple’s surrender," said HSI Special Agent in Charge Marlon Miller. "HSI will bring to bear technology and other forms of investigative techniques to ensure that the most vulnerable among us are protected from child predators."
"Many people do not realize the magnitude of evidence generated in these cases, which makes it extremely difficult for small departments to investigate on their own," said Chief Scott Kipp of the Albion Department of Public Safety. "Albion Public Safety would like to thank Homeland Security Investigations and the U.S. Attorney’s Office for all their assistance in this investigation. Without the assistance provided by the Federal Agencies involved, we would still be searching through the evidence. It is the cooperation between agencies in all branches of government that help swiftly bring these criminals who prey on small children to justice.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
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