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2 August 2016
Albuquerque Man Pleads Guilty to Armed Robbery of Walmart Store and Agrees to 18 Year Prison SentenceRead the Press Release
ALBUQUERQUE – Raymond Castillo, 27, of Albuquerque, N.M., pled guilty today in federal court to violating the Hobbs Act by participating in the armed robbery of a Walmart store in Albuquerque in Oct. 2014. Under the terms of his plea agreement, Castillo will be sentenced to 216 months in prison followed by a term of supervised release to be determined by the court.
Castillo was arrested on Dec. 12, 2014, on a criminal complaint charging him with conspiring to rob a business involved in interstate commerce at gunpoint in violation of the Hobbs Act. The criminal complaint charged Castillo and a co-conspirator with the armed robbery of convenience store located at 1111 Lomas Blvd. NW in Albuquerque on Dec. 7, 2014. The complaint further alleged that the co-conspirator, who was wearing a hooded sweatshirt and a bandana that covered his face, shot and injured the store clerk during the robbery, and that Castillo drove the co-conspirator away from the scene of the robbery.
On Jan. 21, 2015, Castillo and five co-defendants were charged with violating the Hobbs Act and federal firearms laws in a five-count indictment. Count 1 charged Castillo and five other Albuquerque residents, Reyes Lujan, 27, Daniel Maestas, 36, Johnny Ramirez, 30, Frank Gallegos, 31, and Henry Lujan, 23, with conspiring to violate the Hobbs Act. Count 2 charged the six men with violating the Hobbs Act by robbing a Walmart Store in Bernalillo County, N.M., on Oct. 29, 2014. Count 3 charged Castillo with brandishing a firearm during the robbery of the Walmart store, and Count 4 charges Maestas with using and carrying a firearm during the robbery. Count 5 charged Ramirez, Gallegos, Reyes Lujan and Henry Lujan with aiding and abetting the use of firearms during the robbery.
The indictment was superseded in May 2015, by adding a new defendant, Reynaldo Marquez, 26, of Albuquerque, and two new counts. One of the new counts charged Castillo and Marquez with interfering with interstate commerce by robbing a 7-11 convenience store located in Bernalillo County on Dec. 7, 2014. The other charged Marquez with discharging a firearm during that robbery.
On Oct. 19, 2015, Reyes Lujan entered a guilty plea, and was sentenced on March 8, 2016, to 71 months in prison followed by three years of supervised release. Gallegos, Ramirez and Maestas also have entered guilty pleas and have yet to be sentenced.
Marquez and Henry Lujan have entered pleas of not guilty to the superseding indictment. Charges in indictments are merely accusations, and all criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorneys Norman Cairns and Samuel A. Hurtado are prosecuting this case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. In recognition that New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community has come together to is collaborating the initiative is significantly exceed the national average.
Albany Man Sentenced to 60 Months for Child Pornography DistributionRead the Press Release
ALBANY, NEW YORK – Michael G. Isaacson, age 34, of Albany, was sentenced today to 60 months in prison for distributing and possessing child pornography, announced U.S. Attorney Richard S. Hartunian.
Senior U.S. District Judge Gary L. Sharpe also sentenced Isaacson to 25 years of supervised release, to be served after his release from prison. Isaacson will also be required to register as a sex offender.
As part of his plea on March 1, Isaacson admitted that he distributed child pornography files over the Internet. He also admitted to possessing more than 1,000 image files, and more than 30 video files, depicting minors engaged in sexually explicit poses or conduct.
This case was investigated by the Colonie Police Department and the Federal Bureau of Investigation’s Albany Division, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Airline Passenger Charged with Abusive Sexual Contact of Sleeping Woman on Flight from Los Angeles to New JerseyRead the Press Release
NEWARK, N.J. - An airline passenger was charged with sexually touching a sleeping woman who did not know him aboard a flight from Los Angeles International Airport to Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced today.
Veerabhadrarao Kunam, 58, of Visakhapatnam, India, is charged by complaint with one count of abusive sexual contact. He appeared yesterday afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was released on $50,000 secured bond.
Kunam was arrested on July 30, 2016 – the day his flight arrived in Newark – and was taken into federal custody by the FBI.
According to the complaint:
Kunam was seated next to a woman who occupied a middle seat on a Virgin America redeye flight from Los Angeles to Newark. While the plane was in the air, the woman fell asleep. She awoke to find Kunam massaging her genitals and rubbing his bare feet against her bare feet.
Upon noticing Kunam touching her, the victim alerted her male travel companion who traded seats with the victim and confronted Kunam. Kunam allegedly told the victim’s travel companion that he wanted everyone to forget about the incident and offered to buy the travel companion a drink for any trouble he may have caused. The travel companion declined Kunam’s offer and alerted a flight crew member about what had occurred.
A member of the flight crew then moved Kunam to another seat and instructed him not to return to his original seat. Kunam allegedly told the flight crew member that he would not touch the victim again.
The federal government has exclusive jurisdiction over all sexual abuse cases that occur on aircraft in flight in the United States.
The abusive sexual contact charge carries a maximum potential penalty of two years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and the Port Authority Police Department, under the direction of Superintendent Michael A. Fedorko, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Alexander Spiro Esq., New York
1 August 2016
U.S. Attorney’s Office to take part in National Night OutRead the Press Release
WHEELING, WEST VIRGINIA – U.S. Attorney William J. Ihlenfeld, II announced that he and members of his staff will join law enforcement and community leaders on Tuesday, August 2nd in Bridgeport, Clarksburg, Martinsburg, and Wheeling as part of the annual National Night Out crime and drug prevention event.
According to Ihlenfeld, National Night Out is designed to heighten crime and drug prevention awareness, generate support for and participation in local anti-crime efforts, and strengthen neighborhood spirit and police-community partnerships.
“It’s more important than ever before that we bring the police and the community together,” said Ihlenfeld. “We already have great trust between communities and law enforcement in Northern West Virginia, and National Night Out is a wonderful opportunity to build upon what we have and make it even stronger.”
The United States Attorney’s Office will be present at four National Night Out events, to include the events at the Benedum Civic Center in Bridgeport, the VA Park in Clarksburg, the War Memorial Park in Martinsburg, and Wheeling Park in Wheeling. Each of these events will begin at 6 p.m.
National Night Out organizers are expecting over 16,000 communities and 38 million people to take part in community events on Tuesday across the country.
U.S. Attorney’s Office to Take Part in National Night Out Events in New Carrollton and FrederickRead the Press Release
Baltimore, Maryland – The U.S. Attorney’s Office for the District of Maryland will join law enforcement and community leaders on Tuesday, August 2nd at Beckett Field in New Carrollton, Maryland, and Carrollton Park in Frederick, Maryland, as part of the annual National Night Out crime and drug prevention event.
The New Carrollton event, sponsored by The Friends of New Carrollton Police Foundation in partnership with the Lanham Target, will be held from 5:00 – 8:00 p.m. at Beckett Field. Led by the New Carrollton Police Department and celebrating police and community partnerships, the event features water slides, a car show, rides, food and fun.
From 6:00 – 9:00 p.m., the Frederick Police Department and Neighborhood Advisory Councils are sponsoring events at five locations, including Carrollton Park, Lake Coventry Park, Lucas Village Park, Mullinix Park and the YMCA. The events feature safety information, a K-9 demonstration, children’s activities, police displays, food, giveaways and much more.
National Night Out is designed to: heighten crime and drug prevention awareness; generate support for and participation in local anticrime efforts; strengthen neighborhood spirit and police-community partnerships; and send a message to criminals letting them know neighborhoods are organized and fighting back.
“National Night Out events are a wonderful opportunity for neighbors to get to know their local police officers,” said U.S. Attorney Rod J. Rosenstein. “When police and community members stand together it sends a strong message that crime will not be tolerated.”
“National Night Out provides the department with an opportunity to strengthen our community partnerships that in turn allows us to bolster our ability to work together towards keeping our neighborhoods safe,” said Frederick Police Department Chief Edward G. Hargis.
National Night Out organizers are expecting over 16,000 communities and 38 million people nationwide to take part in community events on Tuesday.
U.S. Attorney’s Office Taking Part in National Night OutRead the Press Release
CEDAR RAPIDS, IOWA – Tuesday, August 2, 2016, attorneys from the United States Attorney’s Office will join members of law enforcement and the community as part of the 33rd annual National Night Out campaign.
National Night Out is designed to enhance police-community relations, heighten crime prevention awareness, generate support for and participation in local anti-crime efforts, and strengthen neighborhood spirit. National Night Out organizers are expecting more than 16,000 communities and 38 million people to take part in community events.
“National Night Out is a great way for all neighbors to join with both law enforcement and community partners to demonstrate that crime does not rule the night and that criminals have no safe haven when the sun goes down,” said United States Attorney Kevin W. Techau. “The ‘Night Out’ is also a great way to acknowledge the accomplishments of our neighborhood organizations that keep communities safe, and to thank our law enforcement community for putting their lives on the line for us every day.”
Assistant United States Attorneys will be joining community leaders and law enforcement in Sioux City, Cedar Rapids, Marion, Waterloo and Dubuque.
To learn more about National Night Out go to: https://natw.org/registration.
Follow us on Twitter @USAO_NDIA.
U.S. Attorney Announces Filing of Motion for Consent Order and Settlement Agreement Involving the Sale of Former Red Roof Inn Property in CharlotteRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced that a consent motion for entry of order and settlement agreement were filed in federal court today, involving the sale of a property located at 3300 Queen City Drive, Charlotte, N.C., formerly known as Red Roof Inn.
In September 2015, the United States filed a civil complaint against the former Red Roof Inn property under federal forfeiture laws, alleging that the property had been used over several years to commit or to facilitate the commission of federal violations of law, including sex trafficking of minors, the transportation of minors for criminal sexual activity and felony drug trafficking crimes.
Federal forfeiture laws allow the United States to seek the forfeiture of property used to commit or facilitate the commission of certain offenses, in instances where the property owners have failed to take reasonable steps to reduce such crime. The complaint in this case alleged that the property owners, or their managing agents, had been repeatedly advised by the Charlotte Mecklenburg Police Department of the ongoing criminal activity at the motel and advised of specific measures that should be put in place to reduce criminal activity. The complaint further alleged that despite such notice and advisements, criminal activity at the motel continued.
Today, U.S. Attorney Rose announced that Shreeji Hospitality Queen City, LLC, (Shreeji), the former owner of the Red Roof Inn, has reached an agreement with the United States whereby the former Red Roof Inn property has been sold to a third party not related to the previous owner. This third party has also signed the federal settlement agreement and agreed, among other things, to invest $300,000 in the property to make improvements; to seek affiliation with a national chain hotel; and to impose specific rules and procedures to reduce crime to include: 1) installing a 24-hour video surveillance security system; and 2) ensuring the property does not rent rooms by the hour. Also pursuant to that agreement, and without admitting liability or guilt, Shreeji has agreed that $175,000 of the proceeds from the sale of the property will be paid to the United States. Thereafter, the United States will dismiss the civil case.
In making today’s announcement, U.S. Attorney Rose said that the United States may seek, in civil actions, the forfeiture of motels and other commercial properties where high levels of criminal activity occur and where the owners of such properties fail to take reasonable steps to reduce crime at such locations.
U.S. Attorney Rose also commended the Federal Bureau of Investigation, the U.S. Marshals Service and the Charlotte Mecklenburg Police Department for collaborating to achieve today’s outcome.
Copies of the civil complaint, the settlement agreement and related filed documents may be found at U.S. v. Real Property Located at 3300 Queen City Drive, Charlotte, North Carolina, a/k/a Red Roof Inn, 3:15-CV-429.
Two men plead guilty to Federal methamphetamine crimesRead the Press Release
HUNTINGTON, W.Va. – Two men pleaded guilty today to federal drug charges, announced United States Attorney Carol Casto. Jamel Proctor, 31, of New York City, pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine. In a separate drug prosecution, Darnell Lamar Anderson, 38, of Huntington, entered his guilty plea to possession with intent to distribute methamphetamine.
On May 13, 2016, a suspicious parcel was searched by an inspector with the United States Postal Service. The parcel was addressed to Jamel Proctor’s residence at 515 Flora Court in Huntington. The package contained over 900 grams of methamphetamine. Agents then conducted a controlled delivery of the package to 515 Flora Court, and Proctor’s girlfriend accepted the package. In a search of the residence immediately following the controlled delivery, the package was recovered and the agents located Proctor inside the residence. Agents also discovered a loaded firearm inside the residence. In a subsequent search of Proctor’s vehicle, agents located four additional firearms and an additional 173 grams of methamphetamine in two separate duffel bags. A surveillance team had seen Proctor place the bags in his vehicle earlier that day. Proctor faces a minimum of five years and up to 40 years in federal prison when he is sentenced on October 31, 2016.
In a separate drug prosecution of Darnell Anderson, officers with the Huntington FBI Drug Task Force were notified by a United States Postal Inspector on April 14, 2016, that a package suspected of containing drugs was scheduled for delivery to a residence at 219 8th Avenue West in Huntington. Investigators secured a search warrant and discovered that the package contained over 550 grams of methamphetamine. Investigators then conducted a controlled delivery of the package utilizing an undercover postal inspector. The postal inspector traveled to the residence at 219 8th Avenue West, where Anderson accepted delivery and took possession of the package. Anderson faces up to 20 years in federal prison when he is sentenced on October 31, 2016.
The Huntington FBI Drug Task Force, the United States Postal Inspection Service, and the Cabell County Sheriff’s Department conducted the investigations. Assistant United States Attorney Gregory McVey is in charge of the prosecution of Proctor. Assistant United States Attorney Joseph F. Adams is handling the prosecution of Anderson. The plea hearings were held before Chief United States District Judge Robert C. Chambers.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Two Grenada County Men Pled Guilty to the Illegal Sale of Game FishRead the Press Release
OXFORD, Miss. Felicia C. Adams, United States Attorney for the Northern District of Mississippi, and Luis Santiago, Special Agent in Charge of the United States Fish and Wildlife Service, announced that:
Roger Lee Reed, 56, of Holcomb, Mississippi, and John Randle, 80, of Grenada, Mississippi, plead guilty before United States Magistrate Judge David A. Sanders, in Aberdeen, Mississippi, on July 29, 2016, and June 30, 2016, respectively, to one count each of the sale of game fish, including crappie, in violation of state and federal law. Curtis V. Brown, 73, of Coffeeville, Mississippi, was convicted on June 30, 2016, following a bench trial before Magistrate Judge Sanders of one count of the sale of game fish, including crappie, in violation of state and federal law.
Following their convictions, each defendant was sentenced to a term of probation of two (2) years and ordered to pay a fine of $975.00 each. As a condition of their probation, each defendant will be prohibited from hunting or fishing in any manner or any location for a period of one (1) year and each defendant will likewise be prohibited from entering any Corps of Engineers property for a period of two (2) years. Reed will also be prohibited from entering any National Wildlife Refuge property for a period of two (2) years.
United States Fish and Wildlife Service Special Agent in Charge Santiago stated that: "We take our mission working with the Mississippi Department of Wildlife, Fisheries, and Parks and the citizens of Mississippi in conserving, protecting, and enhancing fish, wildlife, plants and their habitats very seriously, investigating those who choose to violate state and federal laws. Those who violate the law undermine the proud tradition of fair harvest for all anglers and other outdoor enthusiasts."
“We will continue to work joint investigations with the United States Fish and Wildlife Service and continue to seek full prosecution of those who violate our laws” says Colonel Steve Adcock, Mississippi Department of Wildlife, Fisheries, and Parks.
This case was investigated by the United States Fish and Wildlife Service Office of Law Enforcement and the Mississippi Department of Wildlife, Fisheries and Parks.
Three Men Indicted for Conspiring to Sell More Than $200,000 in Stolen Gillette Razors OnlineRead the Press Release
BOSTON – Three Boston-area residents, including a former Gillette employee, were charged with conspiring to sell stolen Gillette razor blades on eBay.
Robert A. Liberatore, 51, of Wakefield; Mark S. Girardin, 43, of Randolph; and Joseph Evangelista, 62, of Lowell, were indicted for conspiracy to transport stolen property interstate. Liberatore and Girardin are also charged with one count of interstate transportation of stolen property. The defendants were arrested today and were released conditions following an initial appearance before U.S. District Court Magistrate Judge Judith Dein this afternoon.
According to the indictment, from February to August 2011, the defendants agreed to steal razor blades from the Gillette manufacturing facility in South Boston and sell them online. Evangelista stole newly manufactured razor blades while employed at Gillette, and delivered the stolen blades to Liberatore and Girardin, who sold them on eBay under the business name “Cambridge Dedicated Services.” The defendants sold $208,944 in stolen Gillette razor blades during the course of the scheme.
The charge of conspiracy to transport stolen property interstate provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the amount of loss or gain, whichever is greater. The charge of interstate transportation of stolen property provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000 or twice the amount of loss or gain, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Sandra S. Bower and Christine Wichers of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Texas Doctor Convicted in Prescription Drug ConspiracyRead the Press Release
PLANO, Texas – A Dallas physician has been convicted of conspiracy to sell illegal prescriptions in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Habiboola Niamatali, 75, of Dallas, was found guilty by a jury of conspiracy to distribute Hydrocodone, Alprazolam, and Promethazine with Codeine outside the usual course of professional practice and without a legitimate medical purpose. The jury reached its verdict following a weeklong trial before U.S. District Judge Marcia Crone.
According to information presented in court, Niamatali used his medical clinics in Garland and Lancaster to sell illegal prescriptions for cash. The defendant attempted to cover up his scheme by ordering his staff to falsify medical records. Niamatali was indicted by a federal grand jury on July 10, 2013.
Niamatali was immediately taken into custody following the jury’s verdict. Under federal statutes, Niamatali faces up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress and is provided here for information purposes, as the 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 U.S. Drug Enforcement Administration – Dallas Tactical Diversion Squad and the DeSoto Police Department.
Syracuse Area Woman Sentenced to Ten Months in Prison for Theft of Pension FundsRead the Press Release
SYRACUSE, NEW YORK – Lorraine Lorini (56), of Nedrow, New York, was sentenced today in federal court in Syracuse to serve 10 months in prison for her theft of government money in connection with her fraudulently obtaining pension benefits in her deceased mother’s name. In addition to the 10-month prison sentence, Senior United States District Judge Frederick J. Scullin, Jr. ordered Lorini to pay $30,074.80 in restitution to the Pension Benefit Guaranty Corporation (PBGC) and directed her to serve a three (3) year term of supervised release following her release from prison. The sentence was announced by United States Attorney Richard S. Hartunian and Robert A. Westbrooks, Inspector General of the Pension Benefit Guaranty Corporation (PBGC).
In previously filed court documents, Lorini admitted that she applied for and received pension benefits on behalf of her mother, who was deceased. The funds were paid by PBGC, an independent agency of the United States that acts as a guarantor of pension plans. As part of her guilty plea, Lorini admitted that she collected pension benefits in her deceased mother’s name for several years and retained this money for her own use, knowing it was obtained by fraud.
Following the sentencing hearing, Inspector General Westbrooks stated, “The Office of Inspector General of the Pension Benefit Guaranty Corporation will continue to aggressively investigate those who illegally obtain pension benefits for which they are not entitled. These cases are critical to ensuring the integrity of the Pension Benefit Guaranty Corporation’s programs that protect the retirement benefits of more than 40 million American workers and retirees.” U.S. Attorney Hartunian stated, “As was demonstrated here, the safeguarding of taxpayer money is among the first duties of good government and those who steal from federal programs risk prosecution and prison.”
This case was investigated by the Office of Inspector General for PBGC, and was prosecuted by Assistant United States Attorney Michael F. Perry.
Sex Offender Sentenced to Life ImprisonmentRead the Press Release
Juneau, Alaska – United States Attorney Karen L. Loeffler announced today that Thomas Schopp, 52, resident of Juneau, Alaska, was sentenced today by United States District Judge Timothy M. Burgess to life imprisonment for production of child pornography in violation of 18 U.S.C. § 2251(a)(1).
Schopp had two prior convictions in state court for child molestation. In those case, Schopp was identified as Thomas Hiser. On January 29, 1988, Schopp (Hiser) was convicted of six counts of sexual assault in the first degree and was sentenced to five years in prison. On May 17, 1993, Schopp (Hiser) was convicted of two counts of sexual abuse of a minor in the first degree, three counts of sexual abuse of a minor in the second degree, and one count of attempted sexual abuse in the third degree, and was sentenced to 26 years in prison.
According to documents filed in this case and arguments made at today’s sentencing hearing, Schopp met Juvenile A, providing the minor with gifts over the course of several months, to include a cell phone. In February 2014, Schopp invited Juvenile A to his residence. At the residence, Schopp videotaped the minor engaging in sexually explicit conduct.
Schopp then traveled with Juvenile A to Reno, Nevada. Once in Reno, Schopp was arrested and detained. While detained, the defendant attempted to recruit individuals he knew to recover a computer and cell phone that he had been traveling with – and which contained the child pornographic images Schopp had produced – and to destroy those items.
In sentencing the defendant, Judge Burgess noted that Schopp had been arrested and sentenced to prison on two prior occasions for molesting at least nine children who had previously been in his care, and that a life term of imprisonment was the only way he could protect the community from the defendant. Judge Burgess said, “you go to jail for 26 years and you get out and here we are again. I don’t think there is anything I can do to deter you. Nothing.” According to Judge Burgess, “the only way I can [protect the public] is to sentence you to life.”
This case was investigated and prosecuted by the FBI in Anchorage and Juneau, Alaska, and Reno, Nevada. Assistance was provided by the State of Alaska Department of Corrections, Division of Probation and Parole, and the Washoe County (Nevada) Sheriff’s Department. Assistant United States Attorney Kyle Reardon prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov, or contact the District of Alaska’s Project Safe Childhood Coordinator at (907) 271-5071.
September 11th Victim Compensation Fund Begins Accepting New ClaimsRead the Press Release
Payment on All Group A Claims Has Been Authorized
September 11th Victim Compensation Fund (VCF) Special Master Rupa Bhattacharyya announced today that the VCF is once again accepting new claims using a new claim form that was redesigned following the Dec. 18, 2015, reauthorization of the VCF. The new claim form was made available earlier today along with a significantly revamped and improved online claims system. Claimants who do not have consistent access to the Internet will still be able to file a hard copy claim using the new form.
The 9/11 VCF staff learned a great deal over the past five years about which claim form questions were truly necessary and as a result, the Fund was able to reduce the number of overall questions and combine the four versions of the old claim form into one, simplified form. Additionally, VCF staff solicited input from many law firms that represent VCF claimants and incorporated their feedback into the new form and the redesigned online claims system.
“We appreciate the 9/11 community’s support as the Fund’s staff worked over the past six months to finalize the new claim form and believe claimants will agree it was worth the wait,” said Special Master Bhattacharyya. “There is much work yet to be done and I stand ready to help the VCF build upon its successes and move into the next phase of the program with a renewed sense of purpose and commitment to the 9/11 community to provide the deserved compensation to those who have suffered as a result of the terrorist attacks of Sept. 11, 2001.”
The new form results in the need for fewer documents to be submitted in support of a claim and the multiple attestations, certifications and exhibits used with the old claim forms have been replaced with a single signature page. The online system guides claimants to answer only those questions that are applicable to their individual circumstances and also includes a new “smart” document checklist that identifies the documents the claimant will need to submit based on answers to specific claim form questions. Overall, the new online system and claim form are much easier to navigate and more user-friendly – two key goals the VCF set at the start of this effort.
With the launch of the new claim form, the online claims system has returned to full functionality, including the ability to file online amendments to previously submitted claims.
For additional information about the new claim form, the online system and how to file a claim, please visit the “How to File a Claim” page on the VCF’s website at www.vcf.gov. If you have any questions about the claim form, the website, or the VCF process, please contact the VCF’s toll-free Helpline at 1-855-885-1555.
Schenectady Man Admits to Participating in Jamaican Lottery ScamRead the Press Release
ALBANY, NEW YORK – Jeragh Powell, age 25, of Schenectady, New York, pled guilty today to mail fraud charges arising out of a Jamaica-based lottery scam that mainly targeted elderly victims.
The announcement was made by United States Attorney Richard S. Hartunian and Shelly A. Binkowski, Inspector in Charge, United States Postal Inspection Service, Boston Division.
As part of his plea, Powell, a citizen of Jamaica, admitted to working with his wife Kimberly Powell, a co-defendant, and others, to mail false lottery prize notifications to mostly elderly individuals located throughout the United States. The fraudulent prize notifications letters congratulated the victims on winning a recent drawing and instructed them to pay tens of thousands of dollars in “fees and taxes” and “shipping and handling” in order to receive their purported prize money and cars. Members of the conspiracy located in Jamaica also communicated with the victims by telephone, directing them to make payments to specific individuals in the United States.
Jeragh Powell and his wife Kimberly, age 37, of Schenectady, received more than $67,000 from victims of the scheme, and forwarded a large portion of the proceeds to Jeragh Powell’s associates in Jamaica. Kimberly Powell is scheduled to plead guilty to mail fraud charges on August 3.
Jeragh Powell faces up to 20 years in prison, 3 years of post-imprisonment supervised release, and a $250,000 fine when he is sentenced on November 29, 2016 by U.S. District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Postal Inspection Service and Homeland Security Investigations (HSI), and is being prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
To report or learn more about mail-based scams, please contact the U.S. Postal Inspection Service, at 877-876-2455 or by visiting https://postalinspectors.uspis.gov.
ST. Joseph’s Hospital to Pay $3.2 Million for Billing MEDICAID for Mental Health Services Rendered by Unqualified StaffRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian and New York State Attorney General Eric T. Schneiderman announced today that St. Joseph’s Hospital Health Center (St. Joseph’s) will pay $3.2 million to resolve allegations that it violated the federal and New York False Claims Acts by presenting false claims for payment to the state Medicaid program for mental health services rendered by unqualified staff.
Medicaid is a jointly funded federal-state program that provides health care to needy individuals. St. Joseph’s operates a Comprehensive Psychiatric Emergency Program (CPEP) that provides evaluation and treatment to individuals suffering from an acute mental health crisis. The CPEP’s “mobile crisis outreach” unit provides initial evaluation and assessment and crisis intervention services to individuals in Onondaga and Madison counties who are unable or unwilling to use hospital-based crisis intervention services in the emergency room. The mobile crisis outreach unit also provides interim crisis services for patients discharged from the emergency room who require follow up care from a mental health professional.
“Today’s settlements reflect my office’s commitment to protecting Central New York’s most vulnerable citizens, including those in crisis,” said U.S. Attorney Hartunian. “We will continue to use the False Claims Act to protect health care beneficiaries and the federal fisc by ensuring that taxpayers do not pay for services rendered by unlicensed or unqualified individuals.”
New York State has issued regulations governing the staffing of CPEPs. The regulations provide that at least two CPEP staff members, one of whom must be a member of the professional staff, shall be present whenever crisis intervention services are rendered outside of an emergency room. Professional staff includes credentialed alcohol counselors, physicians, psychiatrists, psychologists, registered professional nurses, rehabilitation counselors and social workers. The regulations condition payment of claims for CPEP services on compliance with these staffing requirements, making clear that use of qualified staff is a prerequisite to government payment of Medicaid claims for these services.
Today’s settlements resolve allegations that St. Joseph’s knowingly presented false claims for payment to Medicaid for mobile-crisis outreach services rendered from January 1, 2007 through February 29, 2016 by personnel who failed to satisfy the basic CPEP staffing requirements. By submitting claims for payment to Medicaid without disclosing that its CPEP staff failed to meet the regulatory staffing requirements, and by accepting payment for these claims, the governments allege that St. Joseph’s misrepresented its compliance with mental health staffing requirements that are central to the provision of counseling services and, by doing so, violated the False Claims Act. As part of today’s settlements, St. Joseph’s admits that it was improper to have conducted mobile crisis outreach visits without a member of its CPEP professional staff present and then bill Medicaid for such services.
“Mental health staffing requirements are intended to protect the public and avoid the waste of public funds by ensuring that services are delivered by qualified personnel in a meaningful way,” said New York State Attorney General Schneiderman. “We will continue to work with our federal partners to fight to recover misappropriated money on behalf of New York’s taxpayers.”
“Individuals that receive mental health services deserve to be treated by properly qualified providers, something St. Joseph’s failed to ensure,” said Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (HHS-OIG). “HHS-OIG is committed to protecting the taxpayers and the federally funded health care programs intended for the nation’s most vulnerable citizens.”
This investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the federal and New York False Claims Acts, which allow private persons, known as “relators,” to file civil actions on behalf of the government and share in any recovery. The relator in this case will receive $560,000 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 5:14-cv-850.
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the New York State Attorney General’s Office, and HHS-OIG. The United States was represented by Assistant U.S. Attorney Adam J. Katz and New York State was represented by Special Assistant Attorney General Jill D. Brenner.
Restaurant Owner Pleads Guilty to Cocaine ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of Danny’s Big Easy Cajun restaurant pleaded guilty in federal court today to his role in a conspiracy to distribute cocaine.
Paul Danny Gosserand, 57, of Kansas City, Kan., pleaded guilty before U.S. Chief District Judge Greg Kays to conspiracy to distribute cocaine. Gosserand is the owner of Danny’s Big Easy Cajun at E. 18th and Vine in Kansas City, Mo.
On May 17, 2011, a confidential informant entered the restaurant at 2:30 p.m. and discussed purchasing cocaine with Jean Stephens, 63, Gosserand’s ex-wife and an employee of the restaurant. Stephens told the confidential informant the cocaine would cost $32,000 per kilogram and said the cocaine was inside her vehicle because it was too heavy for her to carry inside the restaurant. Stephens met the informant in the parking lot by her vehicle and gave him two kilograms of powder cocaine. Afterward, the informant turned over the cocaine to the agents.
At 3:54 p.m. the same day, the confidential informant returned to the restaurant and met with Gosserand to discuss the price of the two kilograms of cocaine. Gosserand said he needed the informant to pay for the cocaine, which had been fronted by Stephens, that night. Gosserand said he would be killed if payment was not made and the informant agreed to pay for the cocaine the next day.
On May 18, 2011, agents contacted Stephens at her residence at approximately 7:50 a.m. Agents searched the residence and found a briefcase with approximately two and a half kilograms of cocaine. They also found $20,480 inside a white trash bag within the briefcase. They recovered a CD case with a digital scale and $600 inside a red cloth coin bag. Agents also recovered five vacuum-wrapped bricks containing 2,465 grams of powder cocaine from inside a backpack found in Stephens’ closet. Agents recovered 10 one-ounce Vienna Philharmonic gold coins (appraised at $15,240.00), which were located on top of red cloth coin bag inside dresser.
Stephens said the cocaine belonged to Gosserand and the cash was from cocaine sales that also belonged to Gosserand. Stephens also admitted the gold coins found in her bedroom were purchased with drug proceeds as she and Gosserand believed it would be a good investment with their money. Stephens told agents that Gosserand was paranoid about keeping large sums of cash and cocaine at his residence so he often gave it to her to keep at her house and to sometimes distribute the cocaine and obtain the proceeds for him. Stephens said she believed Gosserand made more money selling cocaine than from his restaurant.
Stephens told agents that Gosserand has distributed kilogram-quantities of cocaine for the past four years. Prior to that, she said, he distributed ounce-quantities of cocaine.
Stephens pleaded guilty on Nov. 20, 2015, to her role in the conspiracy to distribute cocaine and is scheduled to be sentenced on Aug. 8, 2016.
Under the terms of today’s plea agreement, the government and Gosserand jointly recommend a sentence within the range of seven to eight years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the Drug Enforcement Administration.
Prior Sex Offender from Taos Facing Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – This morning a U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause to support a criminal complaint charging Timothy J. Martin, 32, of Taos, N.M., with federal child pornography charges. Martin was released pending trial to a halfway house and will be under pretrial supervision and other conditions of release.
Martin was arrested on July 29, 2016, on a criminal complaint alleging that he possessed, received and distributed visual depictions of minors engaged in sexually explicit activity between Jan. 2016 and July 2016, in Taos County, N.M. According to the criminal complaint, the investigation into Martin began in Sept. 2015, when Homeland Security Investigations (HSI) agents received a report identifying a shared network that was being used to share child pornography files. On Jan. 3, 2016, investigators identified an IP address subscribed to Martin at Martin’s residential address that allegedly was being used to download child pornography files. On July 28, 2016, a search warrant was executed at Martin’s residence, and law enforcement seized a laptop computer that allegedly was used to download and view child pornography.
If convicted of receiving or distributing child pornography, Martin faces a statutory penalty of a mandatory minimum of 15 years and a maximum of life in prison. If convicted of possessing child pornography, he faces a statutory penalty of a mandatory minimum of ten years and a maximum of 20 years in prison. Martin faces these enhanced penalties because of his prior conviction on a sex-related offense. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of HSI with assistance from the New Mexico State Police and the Taos Police Department. Assistant U.S. Attorney Jonathon M. Gerson is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, 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 http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Portland Man Sentenced to a Year and a Day for Credit Union Embezzlement and Making False Entries in Credit Union RecordsRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that John C. Barry, 69, of Portland, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to a year and a day in prison for embezzlement and making false entries in credit union records. He was also order to pay $533,791 in restitution. He pled guilty to the charges on November 18, 2015.
According to court records, the defendant was the manager of the Portland Police Department Federal Credit Union (“PPDFCU”), a federal credit union whose deposits were federally insured. In that capacity, the defendant had access to PPDFCU bank accounts and was responsible for managing the activities of the credit union. Between 2009 and December 2013, the defendant embezzled $533,791 from credit union accounts by transferring the funds into his and his family members’ accounts for his and their personal use. Over that period of time, the defendant was also responsible for preparing and submitting certified quarterly call reports to the National Credit Union Administration (“NCUA”). The defendant caused false quarterly call reports to be filed that overstated the PPDFCU’s net worth to make it appear that PPDFCU was sufficiently capitalized, when in truth and in fact, as he well knew, the PPDFCU was not sufficiently capitalized. As a result, on December 1, 2014, the NCUA facilitated the acquisition of the PPDFCU by a much larger federal credit union.
The investigation was conducted by the Federal Bureau of Investigation.
Plummer Man Pleads Guilty to Aggravated Assault and Use of Firearm During a Crime of ViolenceRead the Press Release
COEUR D’ALENE – Cruz Flechita Ramon Soto, 34, of Plummer, Idaho, pleaded guilty Friday to assault resulting in serious bodily injury and use of a firearm during a crime of violence, U.S. Attorney Wendy J. Olson announced. Soto was indicted by a federal grand jury on November 17, 2015.
According to the plea agreement, in the early morning of November 12, 2015, while the victim, an Indian, was sleeping in the living room of a relative’s house, Soto, also an Indian, came to the house. Soto and the victim spoke for about 20 minutes then Soto shot the victim in the chest, back, and neck. The victim was flown to Kootenai Hospital where he was stabilized and flown to Harborview Medical Center in Seattle. The victim was able to identify Soto as the shooter. The shooting occurred within the boundaries of the Coeur d’Alene Indian reservation.
The charge of assault resulting in serious bodily injury is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release and use of a firearm during a crime of violence is punishable by not less than ten years in prison to be served consecutive to any other sentence imposed.
Sentencing is set for October 11, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d'Alene.
The case was investigated by Coeur d’Alene Tribal Police, Benewah County Sheriff’s Department and the Federal Bureau of Investigation.
Omaha Resident Sentenced to 180 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA- On July 28, 2016, Steven B. Davis, a 58 year-old resident of Omaha, Nebraska, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 180 months in prison, and 3 years of supervised release to follow the term of imprisonment, for conspiring to distribute methamphetamine, announced United States Attorney Kevin E. VanderSchel.
On April 13, 2016, a jury in the Southern District of Iowa found Davis guilty of conspiracy to distribute methamphetamine. The charge against Davis was the result of an investigation by law enforcement of methamphetamine trafficking that took place between Omaha, Nebraska, and Audubon County, Iowa. The evidence at trial showed that from as early as June of 2014, continuing through August of 2014, Davis conspired with others to distribute over 500 grams of methamphetamine in the Southern District of Iowa.
The investigation was conducted by the Iowa Department of Public Safety, Division of Narcotics Enforcement, and the Drug Enforcement Administration. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
North Potomac Mortgage Broker Sentenced to Federal Prison for Defrauding Investors of over $400,000Read the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Sultana Siddiqui, a/k/a Sultana Ahmad, age 56, of North Potomac, Maryland, today to two years in federal prison, followed by three years of supervised release, for conspiring to commit wire and mail fraud arising from an investment fraud scheme. Judge Chuang also entered an order requiring Siddiqui to forfeit $405,000, and pay restitution of $402,800, the loss resulting from the scheme minus $2,200 in “lulling payments” paid to two of the victims in order to prevent them from going to authorities.
Judge Chuang ordered that Siddiqui be immediately taken into custody after finding that she violated the conditions of her pretrial release by visiting the victims this weekend.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Olga Acevedo of the Federal Housing Finance Agency Office of Inspector General; and Montgomery County State’s Attorney John McCarthy.
According to her guilty plea, Siddiqui was a mortgage broker who falsely represented to individual victims that co-conspirator Alexander Matthews was an investor or developer who could secure substantial returns on the victims' investments in a short time period. Siddiqui solicited investments from each of the victims, vouched for Matthews's trustworthiness and business acumen, and received money from the victims. She deposited most of the money from the victims into her personal bank account. Then she and/or Matthews provided each victim with a post-dated check in the amount of the victim's investment plus the promised return. None of the post-dated checks were negotiable on the promised return date. After the victims discovered that the post-dated checks were not negotiable, Siddiqui and/or Matthews sent lulling payments and/or email communications to the victims.
For example, in 2008, a real estate agent and her husband agreed to invest $300,000, drawn on their home equity line of credit, to renovate a home in Clifton, Virginia, which Siddiqui and Matthews claimed was to be leased by the FBI. Siddiqui, however, deposited the money in her personal bank account, and no lease agreement existed with the FBI. Siddiqui and Matthews used the money for their own benefit, providing only a small number of lulling payments to the victims.
In November 2010, at Siddiqui’s urging, another victim agreed to invest $50,000 with Matthews and give Siddiqui a $5,000 personal loan. In return, Siddiqui gave the victim a promissory note for the investment signed by Matthews, and two post-dated checks: one for $6,000 from a bank account held by Siddiqui; and one for $60,000 from an account held by Matthews. When the victim attempted to cash the checks, a bank official told her they were not negotiable. Siddiqui sent several lulling emails to the victim, claiming that she would be repaid, but the victim has not received any payment.
Siddiqui and Matthews defrauded the victims of approximately $355,000.
Siddiqui admitted to defrauding another individual of $50,000 in a transaction in 2014.
Alexander Matthews, age 50, of Dunn Loring, Virginia, pleaded guilty in 2011 in federal court in the Eastern District of Virginia to his participation in the conspiracy and was sentenced to 10 years in prison.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao-md/financial-fraud-and-identity-theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI, Federal Housing Finance Agency Office of Inspector General, and Montgomery County State’s Attorney’s Office for their work in the investigation and thanked Assistant U.S. Attorney Ray D. McKenzie, who prosecuted the case.
New Castle Man Sentenced to 7 Years in Prison for Crack Cocaine Distribution ConspiracyRead the Press Release
PITTSBURGH – A Lawrence County resident has been sentenced in federal court to seven years in prison on his conviction of conspiracy to distribute 28 grams or more of crack cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Duane Stokes, 23, of New Castle, Pa.
According to information presented to the Court, in 2015, the Bureau of Alcohol, Tobacco Firearms and Explosives, the Drug Enforcement Administration, and other agencies joined forces in a long-term wiretap investigation of drug trafficking in New Castle. The investigation revealed that Duane Stokes conspired with others to possess with intent to distribute and distribute crack cocaine which was transported from Buffalo, New York, to the New Castle area for further distribution.
Prior to imposing sentence, Judge Fischer stated that the sentence was sufficient but not greater than necessary to fulfill the purposes of sentencing.
Assistant United States Attorneys Jonathan B. Ortiz and Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the New Castle Police Department and the Lawrence County Drug Task Force for the investigation leading to the successful prosecution of Stokes.
Massachusetts Man Sentenced for Fentanyl Distribution ConspiracyRead the Press Release
CONCORD, N.H. – Euris Daniel Paulino Guerrero, 24, a citizen of the Dominican Republic most recently residing in Lawrence, Massachusetts, was sentenced to 100 months in federal prison after pleading guilty in United States District Court for the District of New Hampshire to a federal indictment charging him with two counts of distribution and one count of conspiracy to distribute the Schedule II controlled substance fentanyl, announced United States Attorney Emily Gray Rice.
According to documents filed in United States District Court and statements in court proceedings, Guerrero sold fentanyl, heroin, and oxycodone to cooperating witnesses on three occasions during the summer of 2015. He also sold approximately 150 grams of fentanyl to a law enforcement officer acting in an undercover capacity. Pursuant to a search warrant executed at a residence associated with the conspiracy, law enforcement seized approximately 485 grams of fentanyl, an instrument used to compress drugs into ten-gram quantities for sale, blenders, and other packaging materials.
Chief United States District Judge Joseph LaPlante sentenced Guerrero. In addition to the term of incarceration, Judge LaPlante ordered Guerrero to serve, upon his release from prison, a term of supervised release of 4 years.
According to statistics maintained by the State of New Hampshire, over half of the drug overdose deaths in New Hampshire in 2015 were related to fentanyl. “This defendant was responsible for distributing hundreds if not thousands of doses of the lethal narcotic fentanyl in New Hampshire and Massachusetts,” stated United States Attorney Emily Gray Rice. “My office will continue to focus our resources on targeting traffickers who attempt to profit from the drug epidemic plaguing our state.”
The case was investigated by the Drug Enforcement Administration and was prosecuted by Assistant United States Attorneys Georgiana L. Konesky and John Farley.
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Malden Man Sentenced for Armed Bank RobberyRead the Press Release
Boston – A Malden man was sentenced today in U.S. District Court in Boston for robbing the Hingham Institute for Savings Bank in October 2015.
Anthony Pantone, 56, was sentenced by U.S. District Court Judge Indira Talwani to 78 months in prison and five years of supervised. In May 2016, Pantone pleaded guilty to one count of armed bank robbery.
On Oct.9, 2015, two individuals entered the Hingham Institute for Savings Bank in Boston’s Beacon Hill neighborhood. While one individual, later identified as Russell Dinovo, jumped over the teller’s counter and stole money, the other individual, later identified as Pantone, remained in the lobby holding what appeared to be a handgun. During the robbery, Pantone repeatedly said to Dinovo, “hurry up, let’s go” and “get the drawer.” Pantone also told the tellers not to look at the robbers. After putting $16,320 in a duffel bag, the two individuals fled the bank on foot, and were captured with the duffel bag shortly thereafter in a cab. In addition to the cash, an item that looked like a handgun, but was determined to be a fake gun, was found in the duffle bag.
Dinovo was charged in a separate indictment with one count of armed bank robbery. His case is pending before U.S. District Court Judge Richard G. Stearns.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Office; and Boston Police Commissioner William Evans, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Madison Heights Man Pleads Guilty to Failing to Report to Federal PrisonRead the Press Release
LYNCHBURG, VIRGINIA – A Madison Heights man who failed to report for his previously ordered 72 month federal prison sentence based on a drug conviction in 2015, pled guilty today to a new federal charge and was sentenced to additional prison time, United States Attorney John P. Fishwick Jr. announced.
Bernadino Rodriguez, 26, of Madison Heights, Va., pled guilty today in the United States District Court for the Western District of Virginia in Lynchburg to one count of failure to surrender for service of sentence. Rodriguez was also sentenced today to an additional 21 months of incarceration on the failure to surrender for service charge.
“Individuals who are convicted and sentenced must adhere to the rule of law and surrender for service,” United States Attorney John P. Fishwick said today. “Those defendants who are able to self-report must not take advantage of the system, but when they do, they will be punished.”
Today’s guilty plea is based on the defendant’s April 2015 federal drug case in which he pled guilty to one count of conspiracy to distribute more than 50 grams of methamphetamine. In that case, Rodriguez was sentenced to 72 months in federal prison and ordered to report to FCI Butner. When he failed to report to FCI Butner to begin serving his sentence an arrest warrant was issued. Rodriguez was arrested on April 26, 2016.
The investigation of the case was conducted by the U.S. Marshals Service and the Drug Enforcement Administration. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Lenexa Man Pleads Guilty to Impersonating IRS EmployeeRead the Press Release
KANSAS CITY, KAN. – A Lenexa man pleaded guilty Monday to harassing former girlfriends and business partners by sending them letters on Internal Revenue Service letterhead saying they were under investigation for tax evasion, Acting U.S. Attorney Tom Beall said.
Jeffrey Nickerson, 56, Lenexa, Kan., pleaded guilty to one count of impersonating a federal employee. In his plea, Nickerson admitted he was an acquaintance of a woman who worked at the IRS Service Center in Kansas City, Mo. She brought IRS letterhead and IRS publications home. He used the information to send letters to former girlfriends and former business partners. The letters said the victims were under investigation as a result of reports being filed to the Internal Revenue Service Fraud Investigations Hotline.
Sentencing will be set for a later date. He faces a penalty of up to three years in federal prison and a fine up to $250,000. Beall commended the U.S. Treasury Inspector General for Tax Administration and Assistant U.S. Attorney Chris Oakley for their work on the case.
KC Man Pleads Guilty to Attacking Postal CarrierRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to impeding a U.S. Postal Service employee by physically attacking her while she was delivering the mail.
Willie A. Rimpson, 22, of Kansas City, pleaded guilty before U.S. Chief District Judge Greg Kays to one count of impeding a U.S. Postal Service employee.
By pleading guilty today, Rimpson admitted that he physically confronted a letter carrier twice, once putting her in a choke hold and a short time later wrestling her away from her vehicle.
On Feb. 10, 2016, the letter carrier was delivering mail in the 3800 block of Myrtle Avenue in Kansas City, Mo., at approximately 12:15 p.m. She parked her marked postal vehicle and was organizing the mail for that block when Rimpson, whom she recognized, approached her. She handed Rimpson the mail and he asked “Where’s my check?” She replied, “I don’t have a check for you today.” When Rimpson walked back toward his house, the letter carrier began walking to her next delivery.
According to today’s plea agreement, Rimpson came up from behind her and put her in a choke hold with his arm around her neck. She yelled, “Let me go!” and Rimpson replied, “Not until I get my check.” The carrier kept swinging her arms back and forth until she was able to get away from him. She continued to deliver the rest of the mail for that block.
When she began walking back to her vehicle, she saw Rimpson come out of his house. She tried to walk fast to get to her vehicle before Rimpson could stop her, but he blocked her from opening the door of her vehicle. Rimpson put his hands up in a boxing stance and said, “Come on!” He physically kept her from entering her vehicle by wrestling her away from the vehicle. She struggled to get away from Rimpson; she was able to push him away, enter her vehicle and drive away.
Under federal statutes, Rimpson is subject to a sentence of up to eight years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the U.S. Postal Inspection Service.
Judge Sentences Erie Man to Federal Prison for Violating Drug LawsRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 102 months in jail on his 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 Jamie Darnell Paceley, 37.
According to information presented to the court, on November 13, 2012, November 27, 2012 and December 7, 2012, Pacely distributed crack cocaine in Erie.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania Office of Attorney General Bureau of Narcotics Investigation, and the Erie Police Department for the investigation leading to the successful prosecution of Pacely.
Jacintoport International LLC and Seaboard Marine Ltd. Agree to Settle False Claims Allegations Related to Delivery of Humanitarian Food AidRead the Press Release
WASHINGTON – The Justice Department announced today that Jacintoport International LLC (Jacintoport) and Seaboard Marine Ltd. (Seaboard Marine) have agreed to pay $1.075 million to settle a lawsuit alleging that the companies violated the False Claims Act in connection with a warehousing and logistics contract for the storage and redelivery of humanitarian food aid. Jacintoport is a cargo handling and stevedoring firm headquartered in Houston, Texas, and Seaboard Marine, an affiliate of Jacintoport, is an ocean transportation company headquartered in Miami, Florida.
In its lawsuit, the United States alleged that Jacintoport executed in 2007 a warehousing and logistics contract with the United States Agency for International Development (USAID) for the storage and redelivery of emergency humanitarian food aid. This contract contained explicit caps on the rates Jacintoport could charge ocean carriers to load humanitarian food aid onto ships (referred to as “stevedoring” charges) bound for crisis areas around the world. The complaint alleges that beginning around January 2008 and continuing through at least October 2009, Jacintoport, under the supervision and control of Seaboard, charged ocean carriers more for stevedoring than permitted to load over 50,000 tons of humanitarian food aid. These inflated stevedoring charges were subsequently lumped into other costs for delivering humanitarian food aid and passed on to the United States.
“USAID’s humanitarian food aid program provides critical assistance to starving people all over the world,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Justice Department will hold accountable those who seek to abuse this important program.”
“It is unacceptable for companies that do business with the federal government to inflate their costs,” said U.S. Attorney Channing D. Phillips. “This settlement demonstrates our determination to protect the taxpayers’ dollars – and humanitarian programs – from abuse.”
The allegations resolved by this settlement were initially brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act by John Raggio, a shipping contractor who allegedly received an invoice from Jacintoport that contained the excessive stevedoring charge. Under the Act’s qui tam provisions, a private citizen, known as a “relator,” can sue on behalf of the United States and share in any recovery. The United States is permitted to intervene in the lawsuit, as it did here. Raggio will receive $215,000. Earlier today, the government requested that the case be dismissed.
This matter was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Columbia, with assistance from the USAID Office of the Inspector General. The claims resolved by this settlement are allegations only and there has been no determination of liability. The case is United States ex. rel. Raggio v. Jacintoport International, LLC, et al. Case No. 1:10-cv-01908 (D.D.C.).
Jacintoport International LLC and Seaboard Marine Ltd Agree to Settle False Claims Allegations Related to Delivery of Humanitarian Food AidRead the Press Release
The Justice Department announced today that Jacintoport International LLC (Jacintoport) and Seaboard Marine Ltd. (Seaboard Marine) have agreed to pay $1.075 million to settle a lawsuit alleging that the companies violated the False Claims Act in connection with a warehousing and logistics contract for the storage and redelivery of humanitarian food aid. Jacintoport is a cargo handling and stevedoring firm headquartered in Houston, Texas, and Seaboard Marine, an affiliate of Jacintoport, is an ocean transportation company headquartered in Miami, Florida.
In its lawsuit, the United States alleged that Jacintoport executed in 2007 a warehousing and logistics contract with the United States Agency for International Development (USAID) for the storage and redelivery of emergency humanitarian food aid. This contract contained explicit caps on the rates Jacintoport could charge ocean carriers to load humanitarian food aid onto ships (referred to as “stevedoring” charges) bound for crisis areas around the world. The complaint alleges that beginning around January 2008 and continuing through at least October 2009, Jacintoport, under the supervision and control of Seaboard, charged ocean carriers more for stevedoring than permitted to load over 50,000 tons of humanitarian food aid. These inflated stevedoring charges were subsequently lumped into other costs for delivering humanitarian food aid and passed on to the United States.
“USAID’s humanitarian food aid program provides critical assistance to starving people all over the world,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Justice Department will hold accountable those who seek to abuse this important program.”
“It is unacceptable for companies that do business with the federal government to inflate their costs,” said U.S. Attorney Channing D. Phillips for the District of Columbia. “This settlement demonstrates our determination to protect the taxpayers’ dollars – and humanitarian programs – from abuse.”
The allegations resolved by this settlement were initially brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act by John Raggio, a shipping contractor who allegedly received an invoice from Jacintoport that contained the excessive stevedoring charge. Under the Act’s qui tam provisions, a private citizen, known as a “relator,” can sue on behalf of the United States and share in any recovery. The United States is permitted to intervene in the lawsuit, as it did here. Raggio will receive $215,000. Earlier today, the government requested that the case be dismissed.
This matter was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Columbia, with assistance from the USAID Office of the Inspector General. The claims resolved by this settlement are allegations only and there has been no determination of liability. The case is United States ex. rel. Raggio v. Jacintoport International, LLC, et al. Case No. 1:10-cv-01908 (D.D.C.).
Illinois Man Sentenced to 11 Years in Prison for Attempting to Entice a MinorRead the Press Release
A Springfield, Illinois, man was sentenced today to serve 132 months in prison for attempted enticement of a minor, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Jim Lewis of the Central District of Illinois.
Jeffrey Parkhurst, 59, was sentenced by U.S. District Judge Colin S. Bruce of the Central District of Illinois, who also ordered him to serve a 15 year term of supervised release. Parkhurst was convicted by a federal jury on March 31, 2016.
During the trial, the government presented evidence to establish that Parkhurst knowingly attempted to persuade, induce and entice an individual who he believed to be a minor to engage in illegal sexual activity using the internet and a cell phone. In addition, the government also presented evidence to establish that between January and July of 2015, Parkhurst posted over 60 online advertisements in an effort to persuade, induce and entice an individual who he believed to be a minor to engage in illegal sexual activity.
Parkhurst was arrested on July 27, 2015, in Decatur, Illinois, and initially charged by state authorities. He has remained in custody since his arrest. The defendant was remanded to the custody of the U.S. Marshals Service on Sept. 18, 2015.
The Decatur Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated the case in cooperation with the Macon County, Illinois, State’s Attorney. Trial Attorney Elly Peirson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Huntington woman pleads guilty to Federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Misty Renee Wentz, 38, entered her guilty plea to possession with intent to distribute heroin.
On September 1, 2015, Wentz was approached and interviewed by Drug Enforcement Administration agents in Huntington. While speaking with agents, Wentz admitted that she was concealing heroin on her person. Wentz then provided the heroin to agents and admitted that she possessed the heroin for distribution. Wentz further admitted that she had conspired with multiple other individuals over the previous year to distribute up to 3 kilograms of heroin that was transported to the Huntington area from Detroit.
Wentz faces up to 20 years in federal prison when she is sentenced on October 31, 2016.
The Drug Enforcement Administration conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This prosecution was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Hartford Man Sentenced to 8 Years in Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, the United States Attorney for the District of Connecticut, announced that JOSHUA ACOFF, also known as "Fat Boy," 27, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 84 months of imprisonment for distributing crack cocaine, and an additional 12 months of imprisonment for violating the conditions of his supervised release that followed a prior federal conviction. Upon completion of his prison term, ACOFF will be placed on supervised release for four years.
This matter stems from a joint investigation by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Vice, Intelligence and Narcotics Unit into gang-related narcotics trafficking in Hartford’s North End.
On May 5, 2016, ACOFF pleaded guilty to one count of possessing with intent to distribute, and distribution of cocaine base (“crack cocaine”).
This matter was investigated by the Federal Bureau of Investigation, Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Former Viridian Elementary Principal Sentenced for Child Exploitation ViolationRead the Press Release
SHERMAN, Texas — A 47-year-old former HEB principal has been sentenced for child exploitation in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Oscar Figueroa, of Carrollton, Texas, was convicted by a federal jury on April 1, 2016 for attempting to coerce and enticement of minors and was sentenced to 120 months in federal prison today by U.S. District Judge Amos L Mazzant. Figueroa was also ordered to pay fines and assessments totaling $17,600. Upon his release from custody, Figueroa will serve a term of supervised release of 10 years and will be required to register as a sex offender.
According to the evidence introduced at trial, on July 7, 2015, law enforcement officers responded to a Craigslist advertisement posted by Figueroa, entitled “Dad sucking at AMC Stonebriar.” The ad sought a young male with whom to engage in sexual activity at the AMC movie theatre located within the Stonebriar Centre, in Frisco, Texas. An undercover officer posing as a 16-year-old boy contacted Figueroa and began exchanging text messages. After learning that the undercover was 16-years-old, Figueroa responded “Nice” and instructed the undercover officer to meet him at a particular place within the theatre. Upon arrival, Frisco PD Officers encountered Figueroa, who directed an undercover officer to a bathroom for sexual activity. During the trial, attorneys for the United States introduced Figueroa’s text messages with the undercover agent, his interview with law enforcement, approximately 120 Craigslist ads Figueroa posted seeking sexual activity, and the contents of his cellular phone. Figueroa was indicted by a federal grand jury on July 15, 2015
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations (HSI) and the Frisco Police Department and prosecuted by Assistant U.S. Attorneys Marisa Miller and Jay Combs.
Former Top Leaders of Venezuela’s Anti-Narcotics Agency Indicted for Trafficking Drugs to the United StatesRead the Press Release
An indictment was unsealed today in United States District Court for the Eastern District of New York charging Nestor Luis Reverol Torres, the former General Director of Venezuela’s La Oficina Nacional Antidrogas (ONA) and former commander of Venezuela’s National Guard, and Edylberto Jose Molina Molina, the former Sub-Director of ONA and currently Venezuela’s military attaché to Germany, with participating in an international cocaine distribution conspiracy.[1] The indictment was returned under seal by a federal grand jury in Brooklyn, New York, on January 21, 2015, and relates to Reverol’s and Molina’s alleged activities from January 2008 to December 2010, when they served as the top officials for ONA, Venezuela’s government agency charged with combating narcotics trafficking.
The indictment was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division; and Angel Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York.
According to court documents, from January 2008 to December 2010, in their then official capacities at ONA, Reverol and Molina received payments from drug traffickers in exchange for assisting the drug traffickers in distributing cocaine for ultimate importation into the United States. For example, in exchange for such payments they alerted the traffickers to future drug raids or the locations where law enforcement officers in Venezuela were conducting counter-narcotics activities to allow drug traffickers to change the location where they stored drugs or alter drug transportation routes. They also took steps to stop or hinder ongoing narcotics investigations to allow cocaine-laden vehicles to leave Venezuela and arranged for the release of individuals arrested for narcotics violations and the release of narcotics and narcotics-related currency that had been seized by law enforcement. Reverol and Molina also prevented the arrest or deportation of individuals targeted by foreign countries, such as the United States, for prosecution on drug-related charges.
The indictment is the second indictment unsealed in the Eastern District of New York against alleged corrupt high-level officials in Venezuela who allegedly assisted narcotics traffickers in importing cocaine into the United States. On March 20, 2013, a third superseding indictment was unsealed charging Vassyly Kotosky Villaroel Ramirez, also known as “Mauro” and “Angel,” a captain in the Venezuelan Guardia Nacional, and Rafael Antonio Villasana Fernandez, an officer in the Venezuelan Guardia Nacional, with participating in an international cocaine distribution conspiracy between January 1, 2004 and December 1, 2009. According to court documents, Kotosky and Villasana allegedly used official government vehicles to transport more than seven metric tons of cocaine from the Colombian border to various airports and seaports in Venezuela for ultimate importation into the United States.
“The indictment announced today reflects our ongoing efforts to combat one of the most insidious and dangerous aspects of the international drug trade – the ability of drug cartels to infiltrate and corrupt the highest echelons of government and law enforcement,” said U.S. Attorney Capers. “Nothing can be more damaging to law enforcement’s efforts to stop the flow of illegal drugs than when corrupt public officials violate the public’s trust by actively assisting drug traffickers in their deadly criminal activities.” Mr. Capers extended his grateful appreciation to the DEA’s New York Drug Enforcement Task Force[2] and the Department of Homeland Security, Homeland Security Investigations (HSI) New York El Dorado Task Force,[3] the agencies responsible for leading the investigation, and to the invaluable assistance provided by the DEA Bogota Country Office, the DEA Miami Field Office, and the U.S. Attorney’s Office for the Southern District of Florida.
DEA Special Agent-in-Charge Hunt stated, “As alleged, Nestor Luis Reverol Torres and Edylberto Jose Molina Molina used their positions of power to enable drug trafficking organizations, all the while hindering law enforcement’s efforts to thwart them. Simply put, the indictments send a message that here is no difference between a drug trafficker and a drug trafficker who leads anti-narcotics trafficking efforts. Drug law enforcement working in the U.S. and overseas will continue to stop those at every level and every profession who supply or abet the distribution of poison to American doorsteps.”
“Today’s indictment emphasizes that no one is above the law. These former government officials allegedly used their positions of trust to feed their greed, and along the way betrayed their oath of service by warning drug traffickers of sensitive law enforcement operations,” said Special Agent-in-Charge Melendez of HSI New York. “We will continue to work tirelessly with our federal and international law enforcement partners to expose criminals who attempt to cross our borders with illicit drugs.”
The government’s case is being prosecuted by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Gina M. Parlovecchio and Hiral Mehta are in charge of the prosecution.
The Defendants:
NESTOR LUIS REVEROL TORRES
Age: 51
VenezuelaEDYLBERTO JOSE MOLINA MOLINA
Age: 53
VenezuelaE.D.N.Y. Docket No. 15-CR-020
[1] The charge in the indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty.
[2] The New York Drug Enforcement Task Force comprises agents and officers from the Drug Enforcement Administration, New York City Police Department, and the New York State Police.
[3] HSI New York Office’s El Dorado Task Force comprises over 240 members from more than 29 law enforcement agencies in New York and New Jersey – including special agents, state and local police investigators, intelligence analysts, and federal prosecutors – with the assistance of the task force’s High Intensity Financial Crimes Area (HIFCA)/Intelligence Unit.
Former Mohegan Sun Employee Charged with Money Laundering ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former employee of the Mohegan Sun Casino at Pocono Downs has been charged with engaging in a money laundering conspiracy.
According to United States Attorney Peter Smith, Rochelle Poszeluznyj, age 38, of Kingston, is charged in a Criminal Information filed today in United States District Court in Scranton with Conspiracy to Commit Money Laundering. The Criminal Information charges Poszeluznyj with conspiring with Robert Pellegrini and Mark Heltzel, to defraud the Mohegan Sun Casino by engaging in a money laundering scheme involving the use of stolen names and PINs (personal identification numbers) that were tied to players’ loyalty club cards.
It is alleged that while employed as a cocktail waitress at the casino, Poszeluznyj had access to the names and PINs of casino players as she served them beverages. Poszeluznyj stole the names and PINs of those players and provided them to Pellegrini, who then used the stolen information to create duplicate player club cards. Pellegrini then loaded the duplicate cards with “free play” credits and provided them to Heltzel to gamble with, primarily at poker slot machines. The scheme began in May 2014 and continued to April 2015, netting the defendants winnings in the approximate amount of $422,147.
The Criminal Information was filed pursuant to a plea agreement with Poszeluznyj. The agreement is subject to approval by the court. No date has been scheduled as yet for the entry of Poszeluznyj’s guilty plea.
Pellegrini and Heltzel were indicted by a grand jury in Scranton on April 19, 2016 and charged with conspiracy to commit money laundering, access device fraud and aggravated identity theft. Those charges remain pending.
The charges stem from an investigation by the Internal Revenue Service Investigations and the Pennsylvania State Police. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. The maximum sentence for Conspiracy to Commit Money Laundering is up to 20 years imprisonment and a $500,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Department of Commerce Employee Indicted on Bribery ChargesRead the Press Release
ALEXANDRIA, Va. – Raushi J. Conrad, 42, of Bristow, was arrested today on charges of conspiracy to pay and receive bribes, and acceptance of bribes by a public official.
According to the indictment, from at least 2008 through October 2011, Conrad served as the Director of Systems Operation and Security within the Bureau of Industry and Security, a branch of the Department of Commerce. In that position, Conrad was designated to oversee and manage a project whereby computer files were transferred from an old BIS computer network that had been infected by a virus to a new, uninfected network, and to ensure that the transferred files were free of viruses and, in some instances, retained the full functionality of the files that had resided on the old network.
The indictment alleges that while serving as the project manager for the data migration project, Conrad solicited and received bribes from a local businessman in return for steering a lucrative subcontract and contract to perform the data migration work to companies owned in whole or in part by the bribe payer. One of the bribe payer’s companies made $208,000 in payments to a restaurant business owned by Conrad, and many of these payments were concealed through false and fictitious invoices created by Conrad. The fake invoices made it appear that Conrad’s restaurant business had performed various services for the bribe payer’s company, when in fact no such services had ever been provided. According to the indictment, the bribe payer’s company also arranged for various subcontractors to perform over $7,000 worth of free renovation work at Conrad’s residence.
Conrad faces a maximum penalty of five years in prison if convicted of conspiracy, and 15 years in prison if convicted of bribery. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Duane E. Townsend, Special Agent in Charge of the U.S. Department of Commerce, Office of Inspector General; and Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement after Conrad’s initial appearance before U.S. Magistrate Judge Theresa C. Buchanan. Assistant U.S. Attorneys Matthew Burke and Jamar K. Walker are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-CR-169.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Former Bank Vice President Convicted of Embezzling Money from Local BankRead the Press Release
BOSTON – A former vice president at the former Lenox National Bank pleaded guilty on Friday, July 29, 2016, in U.S. District Court in Springfield in connection with embezzling more than $150,000 from the bank and attempting to conceal the theft.
Joseph E. Leskovitz, 56, of Lenox, Mass., pleaded guilty to three counts of embezzlement of bank funds and one count of money laundering. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Nov. 15, 2016.
Between approximately 2009 and February 2014, Leskovitz was the vice president of the Lenox National Bank, which was acquired in 2015 by Adams Community Bank. Leskovitz stole money from certificates of deposits he was entrusted to manage for family members and clients. In addition, Leskovitz opened a loan in the name of a family member without the family member’s knowledge and stole the loan proceeds.The charge of embezzlement provides for a sentence of no greater than 30 years in prison, five years of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charge of money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $500,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. The case was prosecuted by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Branch Office.
Fairbanks Man Sentenced for Child Pornography CrimesRead the Press Release
Fairbanks, Alaska – United States Attorney Karen L. Loeffler announced today that Michael Gray, Jr., 35, resident of Fairbanks, Alaska, was sentenced on Friday, July 29, 2016, by United States District Judge Ralph R. Beistline to 77 months in prison, to be followed by a 15-year term of supervised release, for possession of child pornography in violation of 18 U.S.C. § 2252(a)(4)(B).
According to documents filed in the case, on June 26 and 29, 2015, law enforcement identified the defendant’s computer using an Internet file-sharing network to distribute files of child pornography. The videos being shared by the defendant through the file-sharing network were between three and 20 minutes long, and showed prepubescent females between the ages of eight and 12 being sexually molested by adult males. In three of the videos, there are scenes of sadistic and masochistic conduct.
Law enforcement searched the defendant’s residence in Fairbanks, Alaska on September 3, 2015. A forensic examination of the defendant’s computer located files of child pornography, including images and videos of minors under the age of 12, as well as images and videos showing sadistic and masochistic conduct.
In a statement to law enforcement at the time of the search, the defendant admitted to knowingly using search terms associated with child pornography to search the file-sharing network for images and videos of child pornography. The defendant described that he engaged in a pattern of downloading files of child pornography through the Internet, viewing those files, and then deleting those files from his computer. The defendant admitted to having approximately 250 images and videos of child pornography on his computer at the time law enforcement seized it from him.
This case was investigated and prosecuted by the FBI Safe Streets Task Force, and the Alaska Internet Crimes Against Children (ICAC) Task Force. The Alaska ICAC is a federally and state funded task force managed by the Anchorage Police Department comprised of agents from federal, military, state, and local agencies. The purpose of the Alaska ICAC is to investigate online child exploitation crimes, including child pornography, enticement, and sex trafficking.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov, or contact the District of Alaska’s Project Safe Childhood Coordinator at (907) 271-5071.
FBI Employee Pleads Guilty to Acting in the United States as an Agent of the Chinese GovernmentRead the Press Release
Defendant Collected and Caused Sensitive FBI Information to be Provided to the Chinese Government
Kun Shan Chun, a native of the People’s Republic of China and a naturalized U.S. citizen, pleaded guilty today to a criminal information charging him with acting in the United States as an agent of China without providing prior notice to the Attorney General.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara of the Southern District of New York and Assistant Director in Charge Diego P. Rodriguez of the FBI’s New York Field Office made the announcement.
Chun, aka Joey Chun, 46, pleaded guilty before U.S. Magistrate Judge James C. Francis IV of the Southern District of New York. He was an employee of the FBI until his arrest on March 16, 2016.
“Kun Shan Chun violated our nation’s trust by exploiting his official U.S. Government position to provide restricted and sensitive FBI information to the Chinese Government,” said Assistant Attorney General Carlin. “Holding accountable those who work as illegal foreign agents to the detriment of the United States is among the highest priorities of the National Security Division.”
“Americans who act as unauthorized foreign agents commit a federal offense that betrays our nation and threatens our security,” said U.S. Attorney Bharara. “And when the perpetrator is an FBI employee, like Kun Shan Chun, the threat is all the more serious and the betrayal all the more duplicitous. Thanks to the excellent investigative work of the FBI’s Counterintelligence Division, the FBI succeeded in identifying and rooting out this criminal misconduct from within its own ranks.”
“No one is above the law, to include employees of the FBI,” said Assistant Director in Charge Rodriguez. “We understand as an agency we are trusted by the public to protect our nation’s most sensitive information, and we have to do everything in our power to uphold that trust.”
According to the complaint, the information and statements made during today’s court proceeding:
In approximately 1997, Chun began working at the FBI’s New York Field Office as an electronics technician assigned to the Computerized Central Monitoring Facility of the FBI’s Technical Branch. In approximately 1998, and in connection with his employment, the FBI granted Chun a Top Secret security clearance and his duties included accessing sensitive, and in some instances classified, information. In connection with a progressive recruitment process, Chun received and responded to taskings from Chinese nationals and at least one Chinese government official (Chinese Official-1), some, if not all, of whom were aware that Chun worked at the FBI. On multiple occasions prior to his arrest in March 2016, at the direction of Chinese government officials, Chun collected sensitive FBI information and caused it to be transmitted to Chinese Official-1 and others, while at the same time engaging in a prolonged and concerted effort to conceal from the FBI his illicit relationships with these individuals.
Beginning in 2006, Chun and some of his relatives maintained relationships with Chinese nationals purporting to be affiliated with a company in China named Zhuhai Kolion Technology Company Ltd. (Kolion). Chun maintained an indirect financial interest in Kolion, including through a previous investment by one of his parents. In connection with these relationships, Chinese nationals asked Chun to perform research and consulting tasks in the United States, purportedly for the benefit of Kolion, in exchange for financial benefits, including partial compensation for international trips.
Between 2006 and 2010, Chun’s communications and other evidence reflect inquiries from purported employees of Kolion to Chun while he was in the United States, as well as efforts by the defendant to collect, among other things, information regarding solid-state hard drives.
In approximately 2011, during a trip to Italy and France partially paid for by the Chinese nationals, Chun was introduced to Chinese Official-1, who indicated that he worked for the Chinese government and that he knew Chun worked for the FBI. During subsequent private meetings conducted abroad between the two, Chinese Official-1 asked questions regarding sensitive, non-public FBI information. During those meetings, Chun disclosed, among other things, the identity and potential travel patterns of an FBI Special Agent.
In approximately 2012, the FBI conducted a routine investigation relating to Chun’s Top Secret security clearance. In an effort to conceal his relationships with Chinese Official-1 and the other Chinese nationals purporting to be affiliated with Kolion, Chun made a series of false statements on a standardized FBI form related to the investigation. Between 2000 and March 16, 2016, Chun was required by FBI policy to disclose anticipated and actual contact with foreign nationals during his international travel, but he lied on numerous pre- and post-trip FBI debriefing forms by omitting his contacts with Chinese Official-1, other Chinese nationals and Kolion.
On multiple occasions, Chinese Official-1 asked Chun for information regarding the FBI’s internal structure. In approximately March 2013, Chun downloaded an FBI organizational chart from his FBI computer in Manhattan. Chun later admitted to the FBI that, after editing the chart to remove the names of FBI personnel, he saved the document on a piece of digital media and caused it to be transported to Chinese Official-1 in China.
Chinese Official-1 also asked Chun for information regarding technology used by the FBI. In approximately January 2015, Chun took photos of documents displayed in a restricted area of the FBI’s New York Field Office, which summarized sensitive details regarding multiple surveillance technologies used by the FBI. Chun sent the photographs to his personal cell phone and later admitted to the FBI that he caused the photographs to be transported to Chinese Official-1 in China.
In approximately February 2015, the FBI caused an undercover employee (UCE) to be introduced to Chun. The UCE purported to be a U.S. citizen who was born in China and working as a consultant to several firms, including an independent contractor for the Department of Defense, among other entities.
During a recorded meeting in March 2015, Chun told the UCE about his relationship with Kolion and Chinese nationals and later explained to the UCE that Kolion had “government backing,” and that approximately five years prior a relative met a “section chief” whom Chun believed was associated with the Chinese government.
In another recorded meeting in June 2015, Chun told the UCE that he had informed his Chinese associates that the UCE was a consultant who might be in a position to assist them. Chun said that he wished to act as a “sub-consultant” to the UCE and wanted the UCE to “pay” him “a little bit.” In July 2015, after coordinating travel to meet Chun’s Chinese associates, Chun met with the UCE in Hungary twice. During one of the meetings, Chun stated that he knew “firsthand” that the Chinese government was actively recruiting individuals who could provide assistance and that the Chinese government was willing to provide immigration benefits and other compensation in exchange for such assistance. The UCE told Chun that he had access to sensitive information from the U.S. government. Chun responded that his Chinese associates would be interested in that type of information and that Chun expected a “cut” of any payment that the UCE received for providing information to the Chinese government.
The count of acting in the United States as an agent of China without providing notice to the Attorney General carries a maximum sentence of 10 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
The FBI’s Counterintelligence Division investigated the case. The prosecution is being handled by Assistant U.S. Attorneys Emil J. Bove III and Andrea L. Surratt of the Southern District of New York’s Terrorism and International Narcotics Unit, with assistance provided by Trial Attorneys Thea D. R. Kendler and David C. Recker of the National Security Division’s Counterintelligence and Export Control Section.
FBI Employee Pleads Guilty in Manhattan Federal Court to Acting in the United States as an Agent of the Chinese GovernmentRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, John P. Carlin, Assistant Attorney General for National Security, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that Kun Shan Chun, a/k/a “Joey Chun,” pled guilty to a criminal Information charging him with acting in the United States as an agent of the People’s Republic of China (“China”), without providing prior notice to the Attorney General. CHUN, an employee of the FBI, pled guilty earlier today before United States Magistrate Judge James C. Francis IV.
Manhattan U.S. Attorney Preet Bharara said: “Americans who act as unauthorized foreign agents commit a federal offense that betrays our nation and threatens our security. And when the perpetrator is an FBI employee, like Kun Shan Chun, the threat is all the more serious and the betrayal all the more duplicitous. Thanks to the excellent investigative work of the FBI’s Counterintelligence Division, the FBI succeeded in identifying and rooting out this criminal misconduct from within its own ranks.”
Assistant Attorney General John P. Carlin said: “Kun Shan Chun violated our nation’s trust by exploiting his official U.S. Government position to provide restricted and sensitive FBI information to the Chinese Government. Holding accountable those who work as illegal foreign agents to the detriment of the United States is among the highest priorities of the National Security Division.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “No one is above the law, to include employees of the FBI. We understand as an agency we are trusted by the public to protect our nation's most sensitive information, and we have to do everything in our power to uphold that trust.”
According to the Complaint, the Information, and statements made during today’s court proceeding:
CHUN, a native of China and a naturalized citizen of the United States, began working at the FBI’s New York Field Office in approximately 1997, as an electronics technician assigned to the Computerized Central Monitoring Facility of the FBI’s Technical Branch. In approximately 1998, and in connection with his employment, the FBI granted CHUN a top secret security clearance, and his duties included accessing sensitive, and in some instances, classified information. As discussed in more detail below, in connection with a progressive recruitment process, CHUN received and responded to requests from Chinese nationals and at least one Chinese government official (“Chinese Official-1”), some (if not all) of whom were aware that CHUN worked at the FBI. On multiple occasions prior to his arrest in March 2016, CHUN collected sensitive FBI information and caused it to be transmitted to Chinese Official-1 and others, while at the same time engaging in a prolonged and concerted effort to conceal from the FBI his illicit relationships with these individuals.
CHUN’s Purported Consulting for Zhuhai Kolion Technology Company Ltd.
Beginning in 2006, CHUN and certain of his relatives maintained relationships with Chinese nationals purporting to be affiliated with a company in China named Zhuhai Kolion Technology Company Ltd. (“Kolion”). CHUN maintained an indirect financial interest in Kolion, including through a previous investment by one of his relatives. In connection with these relationships, Chinese nationals asked CHUN to perform research and consulting tasks in the United States, purportedly for the benefit of Kolion, in exchange for financial benefits, including partial compensation for international trips.
Between 2006 and 2010, CHUN’s communications and other evidence reflect inquiries to CHUN from purported employees of Kolion while CHUN was in the United States, as well as efforts by CHUN to collect, among other things, information regarding solid-state hard drives.
CHUN’s Relationship with Chinese Official-1
In approximately 2011, during a trip to Italy and France, Chinese nationals introduced CHUN to Chinese Official-1. Chinese Official-1 indicated that he worked for the Chinese government, and that he knew CHUN worked for the FBI. During subsequent private meetings conducted abroad between CHUN and Chinese Official-1, Chinese Official-1 asked questions about sensitive, nonpublic FBI information. During those meetings, CHUN disclosed, among other things, the identity and potential travel patterns of an FBI Special Agent.
In approximately 2012, the FBI conducted a routine investigation relating to CHUN’s top secret security clearance. In an effort to conceal his relationships with Chinese Official-1 and the other Chinese nationals purporting to be affiliated with Kolion, CHUN repeatedly lied on a standardized form related to the security-clearance investigation. During the period between 2000 and CHUN’s termination, CHUN also reported to the FBI that he had traveled to the areas of Hong Kong and China approximately nine times, as well as additional trips to Canada, Thailand, Europe, Australia, and New Zealand. CHUN was required by FBI policy to disclose anticipated and actual contact with foreign nationals during his international travel, but he lied on numerous pre- and post-trip FBI debriefing forms by omitting his contacts with Chinese Official-1, other Chinese nationals, and Kolion.
Examples of CHUN’s Actions in the United States in Response to Requests from Chinese Official-1
Chinese Official-1 asked CHUN on multiple occasions for information regarding the internal structure of the FBI. In response to those requests, in approximately March 2013, CHUN downloaded an FBI organizational chart from his FBI computer in Manhattan. CHUN later admitted to the FBI that, after editing the chart to remove the names of FBI personnel, he saved the document on a piece of digital media and caused it to be transported to Chinese Official-1 in China.
Chinese Official-1 also asked CHUN for information regarding technology used by the FBI. In approximately January 2015, CHUN took photographs of documents displayed in a restricted area of the FBI’s New York Field Office, which summarized sensitive details regarding multiple surveillance technologies used by the FBI. CHUN sent the photographs to his personal cell phone, and later admitted to the FBI that he caused the photographs to be transported to Chinese Official-1 in China.
CHUN’s Admissions to an FBI Undercover Employee
In about February 2015, the FBI caused an undercover employee (the “UCE”) to be introduced to CHUN. The UCE purported to be employed by an independent contractor.
During a March 2015 recorded meeting, CHUN told the UCE about his relationship with Kolion and Chinese nationals. In a subsequent recorded meeting in March 2015, CHUN explained to the UCE that Kolion had “government backing,” and that approximately five years earlier a relative met a “section chief” whom CHUN believed was associated with the Chinese government.
In June 2015, during a recorded meeting, CHUN told the UCE that he had informed his Chinese associates that the UCE may be in a position to assist them. CHUN said that he wished to act as a “sub-consultant” to the UCE and wanted the UCE to “pay” him “a little bit.” In July 2015, after coordinating travel in an effort to introduce the UCE to CHUN’s Chinese associates, CHUN met with the UCE twice. During one of the meetings, CHUN stated that he knew “firsthand” that the Chinese government was actively recruiting individuals who could provide assistance, and that the Chinese government was willing to provide immigration benefits and other compensation in exchange for such assistance. The UCE told CHUN that he had access to sensitive information from the United States government. CHUN responded that his Chinese associates would be interested in that type of information, but that CHUN expected a “cut” of any payment that the UCE received for providing information to the Chinese government.
CHUN’s Arrest by the FBI and Confession
CHUN was arrested by the FBI on March 16, 2016. He subsequently confessed to most of the foregoing activities, including to having taken steps to collect sensitive FBI information in the United States in response to taskings from Chinese Official-1. CHUN explained that he was motivated in part by the financial benefits that he and others derived from these relationships, but also admitted that he understood that he had provided assistance to the Chinese government.
* * *
CHUN, 46, pled guilty to one count of acting in the United States as an agent of China without providing notice to the Attorney General, which carries a maximum sentence of 10 years in prison. CHUN will be sentenced on December 2, 2016, at 1:00 p.m., by United States District Judge Victor Marrero. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI’s Counterintelligence Division.
The prosecution is being handled by Assistant U.S. Attorneys Emil J. Bove III and Andrea L. Surratt of the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York, with assistance provided by Trial Attorneys Thea D.R. Kendler and David Recker of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.
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Erie Man Sentenced to Prison for Robbing Hometown BanksRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 60 months in jail on his conviction of bank robbery, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Samuel Louis Dominick, 29.
According to information presented to the court, on February 19, 2015, Dominick and a co-defendant were involved in the robbery of $1,565 from the First National Bank, located at 3310 West 26th Street, Erie, Pennsylvania. In addition, on March 5, 2015, Dominick robbed $4,828 from the Marquette Savings Bank, located at 2320 West 12th Street, Erie, Pennsylvania.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Millcreek Township Police Department for the investigation leading to the successful prosecution of Dominick.
Erie Man Sentenced to Prison for Conspiring to Distribute Crack CocaineRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 60 months in jail on his 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 Curtis L. Duck, 43.
According to information presented to the court, Duck conspired with a co-defendant to possess with intent to distribute and distribute approximately 40 grams of crack cocaine.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania Office of Attorney General Bureau of Narcotics Investigation, and the Erie Police Department for the investigation leading to the successful prosecution of Duck.
Erie Man Admits Possessing Pornographic Images of ChildrenRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
Bruce Johnson, 61, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Johnson possessed computer images and movies depicting minors engaging in sexually explicit conduct.
Judge Cercone scheduled sentencing for November 21, 2016 at 3:00 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, 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 continued Johnson on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Johnson.
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.
Detroit man sentenced to five and a half years in Federal prison for oxycodone crimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man was sentenced today to five and a half years in federal prison for a drug crime, announced United States Attorney Carol Casto. Chester Estes, 41, previously pleaded guilty to possession with intent to distribute oxycodone.
On October 2, 2014, Estes was arrested on an unrelated misdemeanor warrant in Huntington. In a search following the arrest, Estes was found to be in possession of $4,590 in cash and 475 oxycodone pills.
The Huntington Federal Drug Task Force and the Cabell County Sheriff’s Department conducted the investigation. Assistant United States Attorney Gregory McVey is responsible for the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Defendant Frederick A. Obak Sentenced to 16 Years IncarcerationRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that on August 1, 2016, Defendant FREDERICK A. OBAK (“OBAK”)was sentenced by the Honorable Frances Tydingco-Gatewood, Chief Judge, District Court of Guam. Defendant was sentenced to serve sixteen (16) years incarceration followed by three years of supervised release, with credit for time served.
Defendant OBAK pled guilty on May 5, 2014, to two counts of Attempted Possession of Methamphetamine with Intent to Distribute, in violation of Title 21, United States Code, Section 846(a)(1) and (b)(1)(C). Defendant OBAK attempted to receive two packages containing 2,171.3 grams of methamphetamine hydrochloride at Kautz and Sons Glass Company and StayWell Insurance in Hagatna, Guam. OBAK conspired with co-defendants Thomas Kautz and Amos Shioichi Ueda to receive the packages at their places of employment. The contents of the packages were to be broken down for later distribution on Guam. The methamphetamine hydrochloride was concealed within U.S. Priority Mail packages and sent from Washington State to Guam where they were intercepted by the U.S. Postal Inspector. The Drug Enforcement Administration Forensic Laboratory determined that the methamphetamine had a high purity level of 82%. The street value of 2,171.3 grams of methamphetamine hydrochloride exceeds $1,000,000.
According to U.S. Attorney Limtiaco, “Methamphetamine hydrochloride is often associated with crimes against people and property. We cannot and will not tolerate the devastating and destructive effects this drug has on the lives of our families, children and community. The U.S. Attorney’s Office remains committed to the aggressive prosecution of cases involving drug trafficking and distribution.”
The investigation was conducted by the Guam U.S. Postal Inspector and Drug Enforcement Administration, including its Special Agents and Task Force Officers. The case was handled by Assistant U.S. Attorney Rosetta San Nicolas.
Columbia Man Pleads Guilty to Distributing Synthetic DrugsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man pleaded guilty in federal court today to his role in the distribution of synthetic marijuana, commonly referred to as K2.
Matthew Ashby Hawkins, 41, of Columbia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to participating in a conspiracy to commit mail fraud between March 1, 2011, and Oct. 2, 2013.
Hawkins was a partner in two companies, Dynamic Scents and its successor, Order-Refill, LLC. Three of his partners in those companies – Alexander Vladimir McMillin, also known as “Shasha,” 32, Patrick Ross Hawkins, 34, and Molly Jane Charmichael, 38, all of Columbia – have also pleaded guilty to the mail fraud conspiracy. They are among 15 defendants who have pleaded guilty in this case.
By pleading guilty today, Hawkins admitted that he sold wholesale orders of packaged synthetic drugs to customers throughout the state of Missouri. These packages of synthetic marijuana bore misleading labeling regarding the contents and nature of the product in order to avoid detection by law enforcement officers.
Hawkins and his business partners falsely and misleadingly referred to these synthetic drug products as “incense,” “herbal incense,” “potpourri,” “therapeutic potpourri,” that were labeled as “not intended for human consumption,” when, in fact, these products were synthetic drugs intended for consumption in order to obtain a physiological “high.” When sold at retail stores, these products were often located next to products and paraphernalia used for smoking the substances.
Law enforcement officers seized $177,398 from the bank account of Order-Refill, which must be forfeited to the government.
Under the terms of today’s plea agreement, the government and Hawkins agree that a sentence of 63 to 78 months is appropriate. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, Homeland Security Investigations, the Columbia, Mo., Police Department, the MUSTANG Task Force, the LANEG Drug Task Force, the Cole County, Mo., Sheriff’s Department, the Morgan County, Mo., Sheriff’s Department, the Camden County, Mo., Sheriff’s Department, the Camdenton, Mo., Police Department, the Missouri State Highway Patrol, the Kirksville, Mo., Police Department, the North Missouri Drug Task Force, the Schuyler County, Mo., Sheriff’s Department, the Edina, Mo., Police Department, the Linn County, Mo., Sheriff’s Department and the Brookfield, Mo., Police Department.
Clovis Man Sentenced to More Than Two and A Half Years for Counterfeiting U.S. Currency and Possessing Unauthorized Access DevicesRead the Press Release
FRESNO, Calif. — Larry Landseadal, 45, of Clovis, was sentenced today by United States District Judge Lawrence J. O'Neill to more than two and a half years in prison for counterfeiting U.S. currency and possessing unauthorized access devices for use in identity theft, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Landseadal possessed the personal information of approximately 260 individuals, including their names, social security numbers, and other personal identifying information. Landseadal used the information to open credit card accounts in victims’ names and to purchase goods. Landseadal also unlawfully produced and possessed counterfeit U.S. currency in denominations up to $100.
This case is the product of an investigation by the United States Secret Service, the Clovis Police Department, and the Fresno Police Department. Assistant United States Attorney Henry Z. Carbajal III prosecuted the case.
Cincinnati-Area Man Pleads Guilty to Terrorism ChargesRead the Press Release
Christopher Lee Cornell, 22, of Green Township, Ohio, pleaded guilty today to one count of attempting to kill government employees, one count of possession of a firearm in furtherance of a crime of violence and one count of attempting to provide material support to a designated foreign terrorist organization.
The plea was announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division. Cornell pleaded guilty before Senior U.S. District Judge Sandra Beckwith of the Southern District of Ohio.
Cornell was originally charged by an indictment returned by a federal grand jury on Jan. 21, 2015. On May 7, 2015, Cornell was additionally charged by superseding indictment with attempting to provide material support to a designated foreign terrorist organization.
According to the plea agreement, from on or about August 2014 through January 2015, Cornell plotted, planned and attempted to travel to Washington, D.C., in order to attack the U.S. Capitol during the State of the Union Address on January 20, 2015.
Cornell admitted that he conducted online research of weapons, the construction of bombs, the U.S. Capitol and other potential targets in the Washington, D.C., area. Cornell intended to kill officers and employees of the United States, and possessed two semi-automatic rifles and approximately 600 rounds of ammunition, according to the plea agreement.
The defendant admitted that his planned attack on the U.S. Capitol was an attempt to provide material support and resources – both personnel and services – to the Islamic State of Iraq and the Levant (ISIL).
The material support count carries a potential maximum sentence of 15 years in prison. Attempted murder of government employees and officials is a crime punishable by up to 20 years in prison. Possession of a firearm in furtherance of an attempted crime of violence is a crime punishable by a mandatory sentence of five years in prison.
Cornell was arrested on Jan. 14, 2015, by the FBI’s Joint Terrorism Task Force (JTTF). After his arrest, he posted statements online that included a call for others to join him in violent jihad against the United States and its citizens on behalf of ISIL, according to his admissions in the plea agreement.
The JTTF is made up of officers and agents from the Cincinnati Police Department; Colerain, Ohio, Police Department; Dayton, Ohio, Police Department; Ohio State Highway Patrol; University of Cincinnati Police Department; U.S. Air Force Office of Special Investigations; FBI; U.S. Immigrations and Customs Enforcement; U.S. Internal Revenue Service; U.S. Secret Service; U.S. Postal Inspection Service; West Chester, Ohio, Police Department; and Xenia, Ohio, Police Department.
Assistant Attorney General Carlin and Acting U.S. Attorney Glassman commended the JTTF for its investigation of this case. The case is being prosecuted by Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Tim Mangan of the Southern District of Ohio.