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25 July 2016
Teresa Malone Charged with Conspiracy to Bribe Former Corrections CommissionerRead the Press Release
Jackson, Miss – Teresa Malone, 54, of Carthage, Mississippi has been charged with paying kickbacks to former Mississippi Department of Corrections Commissioner (MDOC) Christopher B. Epps in exchange for receiving a consulting agreement involving the MDOC and its operations, announced Acting United States Attorney Harold Brittain and FBI Special Agent in Charge (SAC) Donald Alway.
Malone will appear for arraignment on Wednesday, August 3, 2016, at 2:30 p.m. before U.S. Magistrate Judge Keith Ball. She faces a maximum penalty of 20 years in prison and a $250,000.00 fine for the conspiracy count, and a maximum of 10 years in prison and a $250,000.00 fine for the bribery count.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Deputy Criminal Chief Darren LaMarca, Assistant United States Attorney Patrick A. Lemon, and financial analyst Kim Mitchell.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Silver Spring Felon Sentenced to 15 Years in Federal Prison for Distributing Acetyl Fentanyl Resulting in Death and Illegal Possession of a FirearmRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Jeffrey Sean Nazari, age 44, of Silver Spring, Maryland, today to 15 years in federal prison, followed by three years of supervised release, for distributing a controlled substance analogue, and being a felon in possession of a firearm. Nazari admitted that a victim died from using the acetyl fentanyl analogue that he distributed.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to his plea agreement, for about five years Nazari knew and periodically sold heroin and other drugs to the victim. On January 4, 2015, Nazari and the victim exchanged texts wherein Nazari agreed to provide the victim with drugs. Nazari went to the victim’s residence and distributed acetyl fentanyl to the victim. The next day, the victim was found dead. The Office of the Chief Medical Examiner determined that the victim’s cause of death was acetyl fentanyl intoxication.
On January 6, 2015, another drug customer went to Nazari’s residence. As the customer left the area, members of law enforcement stopped and searched the customer’s vehicle and recovered residue from the acetyl fentanyl analogue that Nazari had sold to the customer, as well as drug paraphernalia with acetyl fentanyl analogue and heroin residue.
On January 7, 2015, a search warrant was executed at Nazari’s residence. When law enforcement entered, Nazari was in the basement bathroom, attempting to flush drugs down the toilet. Law enforcement seized from the basement bathroom approximately 7.5 grams of acetyl fentanyl analogue, 10 grams of cocaine, and nine grams of testosterone. In addition, members of law enforcement seized two digital scales from the basement bedroom closet, and a loaded .380 caliber handgun from the basement bedroom nightstand. Nazari had previous felony convictions and was prohibited from possessing firearms or ammunition.
United States Attorney Rod J. Rosenstein praised the DEA, Montgomery County Police Department, and the Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao and Nicolas A. Mitchell, who prosecuted the case.
Self-Styled Diamond and Gold Exporter Charged with Wire Fraud and Commodities FraudRead the Press Release
SAN JOSE - A federal grand jury in San Jose indicted Fritz Kramer on Thursday on charges of wire fraud and commodities fraud, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
According to the indictment, Kramer, 68, with a last known residence in Norway, solicited funds from investors, stating that their money would be invested in an export project in which Kramer would export gold and diamonds from the Democratic Republic of Congo to Europe, Asia, and the United States. Kramer told investors that they were investing in a short-term, quasi-philanthropic undertaking in which corrupt middlemen in Africa would be cut out of the gold and diamond export process, providing greater profits to African miners. Kramer promised the investors they would receive returns of up to ten times the amount of their investments in as short a time as one month.
Kramer, a dual citizen of the United States and Switzerland, used e-mail, phone calls, and Skype to communicate with investors, according to the indictment. In an effort to lull investors and keep them investing money in the scheme, Kramer frequently claimed that events had arisen that required an additional investment of funds in order for the export project to succeed. Over the years, Kramer cited, at one time or another, the following reasons for delays and the need for additional money from investors as a prerequisite to the success of the export project: (1) the need to pay for multiple urgent surgeries for a partner in the scheme, including brain and liver surgeries; (2) the loss of approximately $80,000-$90,000 in investor cash which was incinerated in a car accident; (3) a lawyer’s role in seizing approximately $95,000 cash in order to address Kramer’s unpaid legal bills; (4) the need to bribe alleged corrupt government officials in Africa; (5) the need to renew expired documents and certifications; (6) the need to pay for insurance; (7) the need to pay additional storage and shipping costs; (8) additional loan payments; and (9) taxes.
In furtherance of the scheme, Kramer also allegedly sent e-mails to investors which contained fake or altered documents as attachments. These fraudulent documents included falsified or altered versions of government certificates from the Democratic Republic of Congo pertaining to shipments of gold and diamonds, diamond certification documents purporting to be affiliated with an international diamond certification process Kramer described as the “Kimberley process,” and invoices for purported gold and diamond shipments. Kramer represented these fraudulent documents as official documents he received from government agencies, organizations and private companies in Africa and elsewhere. The fraudulent documents allegedly lulled investors into believing that the export project was legitimate, and provided a basis for Kramer’s ongoing requests for additional investments in the program. Kramer also sent e-mails to investors discussing a Kimberley process for the certification of gold, when in truth and fact, no such certification process existed. Kramer directed investors to send cash via Western Union and MoneyGram to financial institutions in Tanzania, South Africa, Zambia, and Zimbabwe. Kramer also instructed investors to send cash to Kramer in Switzerland via Western Union, and in Kenya via MoneyGram. As Kramer well knew, the funds provided by investors were not being used to develop an actual gold and diamond export project, and Kramer and his associates never intended to provide any return on the money that they obtained from investors.
To date, at Kramer’s direction, approximately 40 different investors have sent approximately $11 million to bank accounts associated with the export project. No investor has received any return on their investment.
The indictment charges Kramer with eleven counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of commodities fraud, in violation of 18 U.S.C. § 1348. Kramer was arrested on July 6, 2016, and made his initial appearance in federal court in San Jose on July 21, 2016. Kramer is currently detained. Kramer’s next scheduled appearance is on August 22, 2016, before the Honorable Edward J. Davila, U.S. District Court Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of violating 18 U.S.C. § 1343, the defendant faces a maximum sentence of 20 years’ imprisonment for each count, and a fine of $250,000, plus restitution. If convicted of violating 18 U.S.C. § 1348, the defendant faces a maximum sentence of 25 years’ imprisonment, and a fine of $250,000, plus restitution. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Jeff Nedrow is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation by the FBI.
Owner of Long Island Produce Distributor Sentenced to 7 Years for Embezzling over $750,000 from Company Profit Sharing PlanRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that THOMAS HOEY, JR., the owner and president of a Long Island-based produce distributor (the “Company”), and trustee for the Company’s profit sharing plan (the “Plan”), was sentenced to seven years in prison for embezzling nearly all of the assets of the Plan and defrauding the Plan participants. HOEY, over the course of several years, transferred over $750,000 from the Plan to the Company’s corporate accounts and then unlawfully used the money to, among other things: (1) purchase hundreds of thousands of dollars of produce for the Company; and (2) pay for hundreds of thousands of dollars of HOEY’s personal expenses. On March 18, 2016, HOEY was convicted after a four-day jury trial before Judge Paul A. Engelmayer.
U.S. Attorney Preet Bharara said: “Thomas Hoey, Jr., convicted by a unanimous jury of siphoning off his employees’ pension money, was sentenced for that theft. Hoey stole money meant to secure the futures of his employees and instead spent it on indulgences like travel, limousine service, and luxury Manhattan hotels. For that crime of fraud, Hoey will serve time in a federal prison.”
According to the allegations contained in the Indictment as well as the evidence presented during trial:
The Plan was set up as an employee pension benefit plan under the Employee Retirement Income Security Act of 1974 (“ERISA”), for the benefit of certain employees of the Company. As an ERISA qualified pension plan, there were strict statutory and regulatory limitations on the use of money contributed to the Plan. In particular, Plan proceeds could be used only to pay for employee disbursement and employee loans, which in no circumstances could be greater than $50,000. Moreover, the Company, which was the sponsor for the loan, was not allowed to receive any money from the Plan.
Between June 2009 and July 2012, however, the defendant transferred almost all of the assets in the Company’s Plan to corporate accounts that HOEY controlled. Specifically, in three transactions on one day in June 2009, the defendant transferred $350,000 from the Plan to the Company’s corporate bank account. In May 2010, the defendant transferred $415,000 from the Plan to the Company’s corporate bank account. And finally, in July 2012, the defendant transferred $73,000 from the Plan to the Company’s corporate bank account. As a result of these withdrawals from the Plan as well as fees on the account, the Plan, which at one point was worth over $900,000 in employee benefits, was almost entirely depleted.
The Plan money was transferred to corporate accounts to cover significant negative balances as well as for additional corporate expenses and HOEY’s personal expenses. For example, hundreds of thousands of dollars of Plan money was used to pay invoices from the Company’s produce suppliers. Plan money was also used to pay for automobile insurance on a policy that covered, among other vehicles, numerous luxury cars that HOEY used for his personal use. During the period of time that HOEY was using Plan money to fund the Company’s corporate accounts, the corporate accounts were also being used to pay for HOEY’s personal expenses, including international travel for HOEY and his family, limousine service, and hotels in Manhattan.
In order to cover up HOEY’s embezzlement of Plan assets, HOEY caused plan statements to be created that reflected the employees’ full account balances as if no money had been taken out of the Plan. A 2012 account statement for one employee, for example, reflected an individual benefit total of approximately $140,000. At that time, however, the total amount of money left in the Plan was only approximately $15,000.
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In addition to the prison term, HOEY, 48, of Garden City, New York, was ordered to pay $650,936.20 in restitution, $763,000 in forfeiture, and a $400 special assessment.
In imposing sentence, Judge Engelmayer told HOEY, “Your track record here reflects a self-centered history where Thomas Hoey, Jr., came first,” and said HOEY’s conduct was “appalling and utterly without excuse or justification.”
Mr. Bharara praised the outstanding work of the Department of Labor Employee Benefits Security Administration and the Internal Revenue Service’s Criminal Investigation Division.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Kristy J. Greenberg and Daniel B. Tehrani are in charge of the prosecution.
Orange County Man Who Admitted He Attempted to Provide Material Support to a Terrorist Organization by Joining ISIL Sentenced to 15 Years in Federal PrisonRead the Press Release
SANTA ANA, California – An Orange County man who admitted that he attempted to provide material support to the Islamic State of Iraq and the Levant (ISIL) and making a false statement in a passport application was sentenced today to 15 years in federal prison.
Adam Dandach, 22, of Orange, was sentenced this morning by United States District Judge James V. Selna. After he completes his 180-month prison term, Dandach will be on supervised release for the remainder of his life.
In sentencing Dandach, Judge Selna said the defendant’s conduct was “serious,” required “significant planning,” and went on for more than a year.
When he pleaded guilty in August 2015, Dandach admitted that, beginning in approximately November 2013 and continuing until July 2, 2014, he attempted to travel to Syria to join ISIL with the purpose of providing material support to the designated foreign terrorist organization. He further admitted that he knew that ISIL was a designated foreign terrorist organization that engaged in terrorist activity and terrorism.
Dandach “read materials on achieving martyrdom through jihadi fighting,” communicated with others affiliated with ISIL in Syria to obtain information about joining the group, and made online posts that celebrated terrorists, prosecutors said in a sentencing memorandum filed with the court.
“Terrorist organizations that reach into our nation via social media and other online recruiting efforts continue to pose a grave threat to our national security,” said United States Attorney Eileen M. Decker. “I commend the excellent work of the Joint Terrorism Task Force in this case, which discovered Dandach’s plan and prevented an American from becoming a fighter for the world's most dangerous terrorist organization.”
“Mr. Dandach was deliberate in his planning to join the ranks of terrorists bent on killing Americans,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This sentence makes it clear that the government will not tolerate support for terrorism by American citizens.”
According to court documents, on July 1, 2014, Dandach purchased a ticket to fly from Orange County to Istanbul. The FBI intercepted Dandach at the John Wayne International Airport the following day. Dandach told FBI special agents that his ultimate destination was Syria and that he intended to pledge allegiance to ISIL’s leader, Abu Bakr al-Baghdadi. He explained that he wished to live under the control of ISIL and intended to undergo weapons training.
Dandach also admitted that he made a false statement in a passport application, namely that he had lost his previous passport. In fact, a family member had taken Dandach’s passport from him in 2013 when he expressed an interest in traveling to Syria.
Dandach “had been planning for over a year to join ISIL, a murderous terrorist organization that he knew committed horrifically violent acts,” according to the government’s sentencing brief. “He possessed videos of their decapitations and pictures of their atrocities on his cellular telephone. Defendant admitted that ISIL committed these atrocities to instill fear in its enemies. He admitted that he intended to pledge allegiance to the leader of ISIL. And, he admitted that he would do whatever ISIL’s leader asked of him.”
The investigation in this case was conducted by the FBI’s Joint Terrorism Task Force in Orange County.
The case was prosecuted by Assistant United States Attorneys Celeste Corlett and Annamartine Salick of the Terrorism and Export Crimes Section.
Oklahoma City Man Pleads Guilty to Drug Possession, Robbery and CarjackingRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JEREMY DWAYNE LAVORCHEK, age 28, of Oklahoma City, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE SCHEDULE II CONTROLLED SUBSTANCES, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C); ROBBERY INVOLVING CONTROLLED SUBSTANCES, in violation of Title 18, United States Code, Section 2118(a) and CARJACKING, in violation of Title 18, United States Code, Section 2119(1).
The Indictment alleged that on or about December 9, 2015, within the Eastern District of Oklahoma, the defendant, JEREMY DWAYNE LAVORCHEK, did knowingly and intentionally possess with intent to distribute Schedule II controlled substances, to-wit: OxyContin, Oxycodone, Hydrocodone, Morphine, and Fentanyl and did take by force, violence and intimidation, from the person or presence of another, a material or compound containing any quantity of a controlled substance with a replacement cost of not less than $500 belonging to or in the care, custody, control and possession of a person registered with the Drug Enforcement Administration under Section 302 of the Controlled Substances Act. It is further alleged that the defendant took by force, violence, and intimidation, with the intent to cause death or serious bodily harm, a motor vehicle from a person and that vehicle, a 2011 Honda Pilot, had been transported, shipped, and received in interstate and foreign commerce.
The charges arose from an investigation by the Muskogee Police Department.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
The statutory range of punishment on Count 1 is not more than 20 years imprisonment, a fine up to $1,000,000.00 or both; Count 2, not more than 20 years imprisonment, a fine up to $250,000.00 or both and Title 18, United States Code, Section 2119(1) and Count 3, up to 15 years imprisonment, a fine up to $250,000.00 or both.
First Assistant United States Attorney Doug Horn represented the United States.
Oklahoma City Man Pleads Guilty to Drug Possession, Robbery and CarjackingRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JEREMY DWAYNE LAVORCHEK, age 28, of Oklahoma City, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE SCHEDULE II CONTROLLED SUBSTANCES, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C); ROBBERY INVOLVING CONTROLLED SUBSTANCES, in violation of Title 18, United States Code, Section 2118(a) and CARJACKING, in violation of Title 18, United States Code, Section 2119(1).
The Indictment alleged that on or about December 9, 2015, within the Eastern District of Oklahoma, the defendant, JEREMY DWAYNE LAVORCHEK, did knowingly and intentionally possess with intent to distribute Schedule II controlled substances, to-wit: OxyContin, Oxycodone, Hydrocodone, Morphine, and Fentanyl and did take by force, violence and intimidation, from the person or presence of another, a material or compound containing any quantity of a controlled substance with a replacement cost of not less than $500 belonging to or in the care, custody, control and possession of a person registered with the Drug Enforcement Administration under Section 302 of the Controlled Substances Act. It is further alleged that the defendant took by force, violence, and intimidation, with the intent to cause death or serious bodily harm, a motor vehicle from a person and that vehicle, a 2011 Honda Pilot, had been transported, shipped, and received in interstate and foreign commerce.
The charges arose from an investigation by the Muskogee Police Department.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
The statutory range of punishment on Count 1 is not more than 20 years imprisonment, a fine up to $1,000,000.00 or both; Count 2, not more than 20 years imprisonment, a fine up to $250,000.00 or both and Title 18, United States Code, Section 2119(1) and Count 3, up to 15 years imprisonment, a fine up to $250,000.00 or both.
First Assistant United States Attorney Doug Horn represented the United States.
Oakland Resident Pleads Guilty to Possession of Child PornographyRead the Press Release
OAKLAND – Lawrence Ham pleaded guilty in federal court in Oakland today to possession of child pornography, announced United States Attorney Brian J. Stretch and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin.
In pleading guilty, Ham, 52, of Oakland, admitted that between June 26, 2015, and July 14, 2015, he possessed child pornography images on his computer and in print. He further admitted that the images included depictions of prepubescent children engaged in sexually explicit conduct involving sadistic or masochistic abuse of the victims.
As described in a Complaint filed February 16, 2016, in June of 2015, a computer repairman was working on Ham’s computer and viewed images of children in various states of undress on the computer. The repairman contacted the Concord Police Department and the matter was referred to the Oakland Police Department. On July 14, 2015, the Alameda County Sheriff’s Office and Oakland Police Department executed a search warrant at Ham’s apartment and found computer-based and printed images of child pornography.
On March 31, 2016, Ham was charged by an Information with one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4). Under the plea agreement, Ham pled guilty to the sole count in the Information.
Ham is currently being held in the custody of the United States Marshal.
Ham’s sentencing hearing is scheduled for October 28, 2016, before the Honorable Yvonne Gonzalez Rogers, U.S. District Judge, in Oakland. The statutory penalties for a conviction of 18 U.S.C. § 2252(a)(4) is ten years’ imprisonment and $250,000. A person convicted of § 2252(a)(4) following a prior conviction for possession of child pornography faces a mandatory minimum prison sentence of 10 years; a maximum prison sentence of 20 years; a fine of $250,000; and restitution, if appropriate. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Denise Marie Barton is prosecuting the case with the assistance of Trina Khadoo. The prosecution is the result of an investigation by ICE HIS.
Newark Man Sentenced to 16 Months in Prison for Heroin DealingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on July 25, 2016, Jabbar Hutchins, 21, of Newark, New Jersey, was sentenced to 16 months in federal prison after his guilty plea to charges that he distributed heroin. Chief U.S. District Court Judge Christina Reiss also ordered that Hutchins serve three years of supervised release after his prison term.
According to court records, Hutchins transported significant quantities of heroin from New Jersey to Vermont for re-distribution. On October 14, 2015, after an investigation lasting several months, the Vermont State Police Drug Task Force used a confidential informant to purchase approximately 1500 bags of heroin from Hutchins. Following the drug deal, law enforcement agents arrested Hutchins.
For his crime, Hutchins faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Hutchins receive a prison term between 18 and 24 months. In determining the appropriate sentence, Judge Reiss considered the gravity of Hutchins’ offense, the harm heroin has caused to the Vermont community and Hutchins’ lack of a criminal record.
United States Attorney Eric Miller commended the efforts of the Vermont State Police Drug Task Force and the Burlington Police Department for their coordinated work in this investigation. United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont. According to United States Attorney Miller, the United States Attorney’s Office and its law enforcement partners will continue to disrupt the flow of heroin into Vermont and hold drug dealers accountable for their serious crimes against the community.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Hutchins is represented by Assistant Federal Public Defender Elizabeth Quinn.
New Jersey Man Indicted for Production and Receipt of Child Pornography and Enticement of A MinorRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton returned an indictment on July 19, charging a 44-year-old Basking Ridge, New Jersey man with production of child pornography, receiving child pornography, and enticement of a minor to engage in illegal sexual activity, all through the use of a computer and cellular telephone.
According to United States Attorney Peter Smith, the Indictment, unsealed July 21, alleges that Hubert Young persuaded and coerced a 13-year-old girl to engage in sexually explicit conduct for the purpose of producing a visual image of such conduct, received images of child pornography from the minor, and enticed, persuaded and coerced the minor to engage in illegal sexual activity between January 2015 and June 2016. The victim is a resident of Luzerne County.
The charges stem from an investigation by the Federal Bureau of Investigation, Luzerne County Detectives, and the Pittston Police Department.
If convicted of the charges, Young faces a mandatory minimum sentence of 15 years in prison and a potential maximum sentence of 30 years in prison for the child pornography production charge, a mandatory minimum sentence of 10 years in prison and a potential maximum sentence of life in prison for the enticement of a minor charge, and a mandatory minimum five years in prison and a potential maximum sentence of 20 years in prison for the receiving child pornography charge.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
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 guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Muskogee Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that TRAVIS DANIEL PHILLIPS, age 36, of Muskogee, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about January 19, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Muskogee Police Department, the Federal Bureau of Investigation and the Eastern District of Oklahoma Violent Crimes Task Force.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
The statutory range of punishment is not more than 10 years imprisonment, a fine up to $250,000.00 or both.
Assistant United States Attorney Rob Wallace represented the United States.
Miami-Dade Psychiatrist Sentenced to Prison for His Participation in Various Fraud SchemesRead the Press Release
Fernando Mendez Villamil, a Miami-Dade psychiatrist was sentenced by United States District Judge Frederico A. Moreno to 151 months in prison, to be followed by 3 years of supervised release, for his participation in various schemes to defraud the United States government. Villamil was also ordered to pay $50,697,081 in restitution.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Shimon Richmond, Special Agent in Charge, Health and Human Services, Office of Inspector General (HHS-OIG), Pam Bondi, Florida Attorney General, Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Linda M. Swacina, District Director, U.S. Citizenship and Immigration Services (USCIS), made the announcement.
Villamil, 48, of South Miami, previously pled guilty to conspiracy to commit health care and wire fraud, in violation of Title18, United States Code, 1349, conspiracy to defraud the United States and make false statements with respect to immigration matters, in violation of Title18, United States Code, 371, conspiracy to defraud the government with respect to claims, in violation of Title18, United States Code, 286, for his participation in a scheme to defraud Medicare, Medicaid, the SSA, and USCIS.
According to court documents, Villamil, a licensed psychiatrist with a medical office in Miami-Dade, conspired with Maritza Exposito, 57, and Yomara Vila, 45, both of Miami, and Arnaldo O Jimenez, of Hialeah, and provided false and fraudulent mental health diagnoses to thousands of individuals seeking to obtain disability benefits and waivers from the civic and language requirements of the U.S. citizenship and naturalization process. Villamil did so in exchange for bribes and kickback payments and the ability to submit false claims to Medicare and Medicaid for medication management visits that were not needed and were not provided. Villamil also issued prescriptions for medications that were not needed to support a false disability claim and cause Medicare and Medicaid to pay for the unnecessary medications. Through the fraudulent scheme the co-conspirators sought an excess of $62.8 million dollars from various governmental programs run by the Centers for Medicare and Medicaid Services, the Florida Medicaid program, the SSA and USCIS.
Villamil’s three co-conspirators previously pled guilty and were sentenced for their conduct. Maritza Exposito was sentenced on May 13, 2016 to 48 months in prison, to be followed by 3 years of supervised release and was ordered to pay $33,551,022 in restitution. Yomara Vila was sentenced on May 10, 2016 to 33 months in prison, to be followed by 3 years of supervised release and was ordered to pay $502,626 in restitution. Arnaldo Jimenez, who plead guilty to providing false statements to the Social Security Administration, in his own disability benefit determination process, was sentenced to 6 months in prison, to be followed by 3 years of supervised release and was ordered to pay $248,211 in restitution.
Mr. Ferrer commended the investigative efforts of the Medicare Fraud Strike Force and participating partners, including HHS-OIG, SSA-OIG, the State of Florida’s Medicaid Fraud Control Unit, ICE-HSI, FBI, and USCIS. The case was prosecuted by Special Assistant United States Attorney Hagerenesh Simmons.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
MS-13 Members Indicted for Four Murders, Attempted Murder, Arson, Obstruction of Justice, and Firearms OffensesRead the Press Release
A 23-count indictment was unsealed today in United States District Court for the Eastern District of New York charging defendants Edwin Amaya-Sanchez, also known as “Strong, “William Castellanos, also known as “Dizzy” and “Satanico,” Jhonny Contreras, also known as “Reaper” and “Conejo,” and Reynaldo Lopez-Alvarado, also known as “Mente,” all of whom are all members of La Mara Salvatrucha, also known as the MS-13 (MS-13), with four murders, including the May 26 and 28, 2013 murders of Derrick Mayes and Keenan Russell, the July 14, 2014 murder of Jose Lainez-Murcia, the June 30, 2015 murder of Jonathan Cardona-Hernandez, and an April 9, 2013 attempted murder, as well as related firearms, accessory after the fact, obstruction of justice, and arson offenses.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Timothy D. Sini, Commissioner, Suffolk County Police Department (SCPD).
“The senseless and depraved violence reflected in the devastating loss of life allegedly at the hands of these defendants and their fellow gang members is a trademark of the MS-13. Whether it is random violence exemplified by the murders of Derrick Mayes and Keenan Russell, or the targeted executions of Jose Lainez-Murcia and Jonathan Cardona-Hernandez, the MS-13’s thirst for murder and mayhem is a threat to our communities who are affected by their brutal acts of violence,” stated United States Attorney Capers. “This Office and our law enforcement partners will continue our steadfast resolve to dismantle the MS-13 and keep our communities safe from gang violence.” Mr. Capers expressed his grateful appreciation to all the members of the FBI’s Long Island Gang Task Force.
“The history of MS-13 illustrates in vivid detail the gang simply has no regard for human life. As detailed in this case, these men allegedly killed random people they did not know, and actively targeted others. The FBI’s Long Island Gang Task Force works aggressively each day to track down anyone associated with the gang in the hope that we will stop their next random killing,” stated Assistant Director-in-Charge Rodriguez.
“This prosecution is an enormous victory for Suffolk County residents, and we thank the United States Attorney's Office and the FBI for their continued partnership. With this case, we continue to send the clear message to gang members in Suffolk County that the Suffolk County Police Department, along with our law enforcement partners, will bring you to justice for your heinous and depraved crimes. This is just the beginning of results that our renewed partnership with our federal law enforcement partners will reap for Suffolk County residents,” stated Commissioner Sini.
As detailed in the indictment and the government’s detention letter filed earlier today, Contreras is charged with the murders of Mayes and Russell, who were both killed in Central Islip over Memorial Day weekend in 2013. On May 26, 2013, Contreras and another MS-13 member armed themselves with a .25 caliber handgun and 20-gauge shotgun and drove around Central Islip in a stolen minivan looking for rival gang members to kill. While on Wilson Boulevard, Contreras and his co-conspirator observed Mayes, an African-American man, whom they did not know, but assumed to be a member of the Bloods street gang because he was wearing an article of red clothing. The MS-13 members approached Mayes, shot him multiple times, and killed him. On May 27-28, 2013, Contreras and several other MS-13 members, who were armed with the same .25 caliber handgun and 20-gauge shotgun, as well as a 9mm handgun, again drove around Central Islip in the stolen minivan and other vehicles, looking for rival gang members to kill, and observed several African-Americans, including Russell, outside a house party on Acorn Street. The MS-13 members approached Russell, who they again did not know, but assumed to be a member of the Bloods, opened fire with the weapons, and killed him. When the MS-13 members fled the scene in the minivan, they ran out of gas and called Lopez-Alvarado, who helped them get gas and hide the firearms. Later, the MS-13 members learned that the minivan had been linked to the murders and they agreed to destroy it. Contreras, Lopez-Alvarado and another MS-13 member wiped the minivan down to remove any fingerprints, drove it to a wooded area in Ronkonkoma, doused it with gas, and set it on fire. Shortly after participating in the Mayes and Russell murders, Contreras, who had been an MS-13 associate, was inducted as a member of the MS-13.
Amaya-Sanchez is indicted in connection with the July 14, 2014 murder of Lainez-Murcia, who was shot and killed while sitting in a car outside of his home on Twin Lawns Avenue in Brentwood. Amaya-Sanchez orchestrated the murder because he believed that Lainez-Murcia was an assassin who had killed MS-13 members in El Salvador. Amaya-Sanchez, who worked with Lainez-Murcia and knew where he lived, drove other MS-13 members, who were armed with two 9mm handguns, to Lainez-Murcia’s house and dropped them off. When Lainez-Murcia left the house and got into his car, the other MS-13 members approached and fired multiple times, killing Lainez-Murcia. The other MS-13 members ran down the block where Amaya-Sanchez picked them up and drove them away.
Further, the indictment charges Castellanos in connection with the June 30, 2015, murder of 16 year-old Cardona-Hernandez, whom the MS-13 members believed was associated with a rival gang. On the night of the murder, Castellanos and other MS-13 members drove Cardona-Hernandez to Nicoll Avenue in Central Islip, where they shot and killed him using two 9mm handguns.
Finally, Lopez-Alvarado is charged with an April 9, 2013 attempted murder of a man on Benton Place in Bay Shore. Lopez-Alvarado, who was a new member of the MS-13, and another MS-13 member went out looking to kill a rival gang member in order for Lopez-Alvarado to gain full status in the gang. When they observed a group of men who they assumed were members of the Bloods, Lopez-Alvarado and his co-conspirator retrieved the same .25 caliber handgun and 20-gauge shotgun used in the Mayes and Russell murders, drove back to Benton Place, approached the group of men and opened fire. One man was struck and was subsequently transported to a local hospital, where he was treated and survived the shooting.
This is the latest indictment in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international criminal organization. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders, and assaults. Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 30 murders in the Eastern District of New York, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, and Rockville Centre Police Department.
The defendants are scheduled to be arraigned this afternoon before United States District Judge Joseph F. Bianco at the federal courthouse in Central Islip. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Section. Assistant United States Attorneys John J. Durham, Paul G. Scotti, and Raymond A. Tierney are in charge of the prosecution.
The Defendants:
Edwin Amaya-Sanchez (“Strong”)
Age: 29
Brentwood, New YorkWilliam Castellanos (“Dizzy” and “Satanico”)
Age: 19
Central Islip, New YorkJhonny Contreras (“Reaper”)
Age: 22
Brentwood, New YorkReynaldo Lopez-Alvarado (“Mente”)
Age: 24
Brentwood, New YorkE.D.N.Y. Docket No. 16-403 (JMA/JFB)
Long Beach Lobbyist Pleads Guilty to Federal Tax Charge and Admits Failing to Report Income Received from Illegal Marijuana StoresRead the Press Release
Update:
Today, Long Beach-based lobbyist Carl A. Kemp pleaded guilty to subscribing to a false tax return for the year 2012. Kemp entered the plea before United States District Judge Philip S. Gutierrez.
Kemp is scheduled to be sentenced on November 7, at which time he will face a statutory maximum sentence of three years in federal prison.
Original News Release (June 8):
Long Beach Lobbyist Agrees to Plead Guilty to Federal Tax Offense for Failing to Report Income Received from Illegal Marijuana Stores
LOS ANGELES – A Long Beach-based lobbyist, whose clients included illegal marijuana stores in Long Beach, has been charged with filing a false tax return and failing to report more than three-quarters of a million dollars in income over a six-year period.
Carl A. Kemp, 43, of Long Beach, the owner of the public relations firm The Kemp Group, was charged yesterday with subscribing to a false tax return for the year 2012.
“For years, Mr. Kemp failed to accurately report his income to the IRS, going so far as reporting zero taxable income for 2012 when his business brought in more than $200,000,” said United States Attorney Eileen M. Decker. “Everyone, no matter what business they are engaged in, has a responsibility to fully report their income on their income tax returns.”
In a plea agreement also filed yesterday, Kemp agreed to plead guilty to the tax offense. As part of the plea agreement, Kemp admits receiving a total of $754,783 in income that he failed to report on his taxes for the years 2007 through 2012. Kemp admits that he owes the Internal Revenue Service a total of $210,661 to cover the back taxes due for those six years, as well as a civil fraud penalty.
“As admitted by Kemp in documents filed with the court today, all forms of income are taxable, including cash payments received from illegal marijuana dispensaries and fees paid for lobbying services,” stated IRS Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando. “Those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don’t.”
The charge of subscribing to a false tax return carries a statutory maximum penalty of three years in federal prison.
Kemp will be directed by the court to appear for an arraignment in this case, likely later this month.
The case against Kemp was investigated by IRS Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Ruth C. Pinkel of the Public Corruption and Civil Rights Section.
Local Doctor Arrested for Illegally Dispensing Controlled Substances and Threatening to Kill Law EnforcementRead the Press Release
U.S. Attorney Kenneth A. Polite announced the unsealing of a criminal complaint against SHANNON CHRISTOPHER CEASAR, age 43, a physician who practices in Metairie and resides in New Orleans. On Friday, July 22, 2016, CEASAR was arrested on charges of drug distribution and threatening to murder law enforcement agents. According to court records, CEASAR illegally dispensed and conspired with others to illegally dispense controlled substances, including Oxycodone, a Schedule II controlled substance. In addition, based on recorded telephone calls secured by law enforcement, CEASAR was charged with threatening to assault and/or murder federal law enforcement officers with the intent to impede, intimidate, or interfere with such law enforcement officers while engaged in the performance of official duties, or with the intent to retaliate against such law enforcement on account of the performance of official duties.
Some of the threats made against law enforcement officers and the medical board include:
“God help them, I swear to god…I have a f*$&ing arsenal in there enough to supply a small militia, you know I collect guns, I swear to god if they come in there with a warrant I’m going to kill every single one of those sons of bitches.”
“I am very serious…they won’t even be able to have an open casket funeral. There will be nothing left above the adam’s apple.”
“And I’m not sure if the time comes if I’m going to do it right there in the clinic or if I’m going to somehow break into the DEA office in that building by the lake and just f*$&ing blow the place up but somehow a vast majority of the DEA agents in this area will lose their lives if they f*$& with me.”
“Same thing goes for the medical board, that’ll be even sweeter…they are downtown.”
“…New Orleans will be all over the national news again because of me.”
“What I’ll do is make Baton Rouge look like a f*$&ing kindergarten.”
CEASAR made his initial appearance before U.S. Magistrate Court Judge Daniel E. Knowles, III on Friday, July 22. At a detention hearing held today before U.S. Magistrate Court Judge Karen Wells Roby, CEASAR was ordered detained.
“As alleged, rather than doing no harm as a physician, Shannon Ceasar illegally dispensed Oxycodone into a community struggling with an epidemic of opioid addiction,” stated U.S. Attorney Polite. “Then, when the governing medical board and law enforcement dared to challenge his criminality, Ceasar threatened to kill them. This level of disregard for human life, particularly from a physician, is absolutely despicable.”
If convicted of the charges in the criminal complaint, CEASAR will face a maximum of not more than 20 years in prison on the drug charges, pursuant to Title 21, United States Code, Section 841(a)(1) and 846, and not more than 10 years in prison for threatening to murder a federal agent, pursuant to Title 18, United States Code, Section 115(a)(1)(B). CEASAR will also be subject to a fine of not more than $250,000 and a term of supervised release for three years, following any term of imprisonment.
U.S. Attorney Polite praised the work of the Special Agents of the Federal Bureau of Investigations, Drug Enforcement Administration, and U.S. Department of Health and Human Services OIG in investigating this matter. Assistant United States Attorneys Shirin Hakimzadeh and Myles Ranier are in charge of the prosecution.
LATAM Airlines Group Resolves Foreign Corrupt Practices Act Investigation and Agrees to Pay $12.75 Million Criminal PenaltyRead the Press Release
LATAM Airlines Group S.A. (LATAM), a commercial airline company based in Chile, has agreed to pay a $12.75 million criminal penalty in connection with a scheme to pay bribes to Argentine union officials via a false consulting contract with a third-party intermediary in violation of the accounting provisions of the Foreign Corrupt Practices Act (FCPA).
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
According to admissions made in the resolution documents, executives at LATAM’s predecessor-in-interest, LAN Airlines S.A. (LAN), executed a fictitious $1.15 million consulting agreement with an advisor to the Secretary of Argentina’s Ministry of Transportation in October 2006. Although the agreement purportedly required the consultant to undertake a study of Argentine airline routes, the consultant never provided any such services. Instead, the purported consultant funneled the monies he received pursuant to the contract to Argentine labor union officials in exchange for the union agreeing to accept lower wages and to not enforce what would have been a costly labor rule. In total, LAN profited by more than $6.7 million as a result of the bribes paid to the union officials.
LATAM entered into a three-year deferred prosecution agreement (DPA) to resolve the case. As part of the DPA, LATAM agreed to pay a $12.75 million criminal penalty, continue to cooperate with the department’s investigation, enhance its compliance program and retain an independent corporate compliance monitor for a term of at least 27 months. The department reached this resolution based on a number of factors, including the fact that LATAM did not voluntarily disclose the FCPA violations, but did cooperate with the department’s investigation after the press in Argentina uncovered and reported the conduct approximately four years after it had occurred. After LATAM began cooperating, it did so fully and provided all relevant facts known to it, including about individuals involved in the misconduct. LATAM did not, however, remediate adequately. LATAM failed to discipline in any way the employees responsible for the criminal conduct, including at least one high-level company executive, and thus the ability of the compliance program to be effective in practice is compromised. As a result, the company paid a penalty within the U.S. Sentencing Guidelines range instead of receiving a discount off the bottom of the range.
In a related matter, LATAM reached a settlement today with the U.S. Securities and Exchange Commission (SEC) under which it agreed to pay $6.74 million in disgorgement and $2.7 million in prejudgment interest. Thus, the approximately $22.2 million in combined penalty, disgorgement and prejudgment interest far exceeds the $6.7 million in savings the company had received from its improper payments.
The FBI’s Miami Field Office investigated the case. Senior Trial Attorney Jason Linder of the Criminal Division’s Fraud Section prosecuted the case. The SEC also provided assistance during the investigation.
Justice Department Settles with Colorado Apartment Complex for Discriminating Against Families with ChildrenRead the Press Release
The Justice Department announced today that the owners and manager of the Westland Apartments, a 28-unit apartment complex in Lakewood, Colorado, have agreed to pay $75,000 to settle a lawsuit alleging discrimination against families with children in violation of the Fair Housing Act. The settlement must still be approved by the U.S. District Court of the District of Colorado.
The department’s lawsuit, which was handled jointly by the department’s Civil Rights Division and the U.S. Attorney’s Office of the District of Colorado, was filed on Nov. 9, 2015. The lawsuit alleges that Roger and Eileen Loecher, the owners of the Westland Apartments, and Miriam Yehudah, the resident property manager, implemented a policy of generally excluding families with children from living in the front building at Westland and generally restricting them to apartments in the rear building.
The lawsuit arose from a complaint filed with the U.S. Department of Housing and Urban Development (HUD) by the Denver Metro Fair Housing Center (DMFHC), a non-profit organization that works to promote equal housing opportunities in the Denver metropolitan area. DMFHC sent testers posing as prospective renters to Westland to determine whether they were engaging in discriminatory practices in violation of the Fair Housing Act. As alleged in the complaint, DMFHC’s testing revealed that Westland’s property manager told prospective renters that families with children were generally placed in apartments in the rear building and did not offer prospective renters with children the opportunity to consider available apartments in the front building. DMFHC also filed a lawsuit against the defendants on Dec. 22, 2015. The cases were consolidated on March 3, 2016.
“Steering families with children to a certain part of an apartment complex limits their housing choices, perpetuates housing segregation and clearly violates federal law,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue its vigorous enforcement of the Fair Housing Act to ensure equal access to housing for all families.”
“The U.S. Attorney’s Office is committed to enforcing federal civil rights laws in Colorado,” said U.S. Attorney John F. Walsh of the District of Colorado. “Discrimination against families with children hurts Colorado children and is not only unjustified, it is illegal.”
Under the terms of the proposed settlement, the defendants must pay $25,000 to establish a settlement fund to compensate victims who were harmed by their conduct, $45,000 in monetary damages to DFMHC and $5,000 to the United States as a civil penalty. In addition, the proposed settlement prohibits the defendants from engaging in discrimination against families with children in the future. It also requires that they implement a nondiscrimination policy, establish new nondiscriminatory application and rental procedures, receive training on the Fair Housing Act and conduct monitoring and reporting to the department for three years.
Individuals who believe they may have been discriminated against at Westland because they resided with or intended to reside with children should contact the department toll-free at 1-800-896-7743, mailbox 92, or e-mail [email protected]. Westland is located at 9905 West 21st Avenue in Lakewood.
The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe that they have experienced unlawful housing discrimination elsewhere can contact the department at 1-800-896-7743, e-mail [email protected] or contact HUD at 1-800-669-9777.
Loecher Consent Order
Jefferson County Man Sentenced to 50 Years for Sexual Exploitation of a ChildRead the Press Release
SYRACUSE, NEW YORK – Brok Chase, age 29, of Fort Drum, New York, was sentenced today to serve a total of 50 years in prison as a result of his guilty plea to four counts of sexually exploiting a young child for the purpose of producing images of the abuse.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
United States District Judge Brenda K. Sannes also sentenced Chase to lifetime supervised release, to begin after his release from prison. Chase would also be required to register as a sex offender upon his release from prison.
As part of his March 2016 guilty plea, Chase admitted that he sexually abused a child in Jefferson County beginning in 2014, when the child was 6 years old, and into 2015. Chase also admitted that he began exploiting the child even earlier, before moving to New York. Chase’s abuse of the child, and his visual depictions of the abuse, were discovered following the FBI’s execution of a search warrant at his Jefferson County home in September 2015. The search warrant was authorized based on evidence gathered by the FBI in Louisville, Kentucky, indicating that Chase had been trading child pornography on the Internet. Following execution of the search warrant, forensic analysis of Chase’s electronic devices found that, in addition to the images of his abuse of the child in Jefferson County, Chase possessed more than 9,000 images and 98 video files containing child pornography that he obtained from others through the Internet.
Chase was investigated by the Federal Bureau of Investigation Syracuse Resident Agency, Albany Division, and the FBI’s Louisville, Kentucky Child Exploitation Task Force, with assistance from the U.S. Army Criminal Investigations Command and New York State Police. He was prosecuted by Assistant United States Attorney Lisa Fletcher.
The joint effort is a 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/.
Jacobina Carter, of Brattleboro, Sentenced to 42 Months’ Imprisonment for Heroin TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on July 25, 2016, Jacobina Carter, a.k.a. “Peaches,” 41, of Brattleboro, Vermont, was sentenced to 42 months in prison, having pled guilty to the charge of distribution of heroin. Senior United States District Judge William K. Sessions III, sitting in Burlington, also sentenced Carter to 3 years of supervised release.
Court records show that Carter was arrested in September 2015 in Brattleboro after selling heroin on several occasions to individuals cooperating with law enforcement. She pled guilty on December 21, 2015. Carter was initially released on conditions, including orders that she refrain from using drugs or committing new criminal offenses. In June 2016, however, Judge Sessions incarcerated Carter for positive drug tests and her involvement in assisting an individual selling heroin and crack cocaine in Keene, New Hampshire.
Court records further show that Carter began selling narcotics in Vermont in 2006. She started trafficking heroin in 2011 and continued to do so until her arrest in September 2015. Carter’s son, Lamar Carter, age 25, also of Brattleboro, has pled guilty in a separate case to participation in a large-scale, St. Johnsbury-based heroin trafficking conspiracy. He is set to be sentenced tomorrow in Rutland by The Honorable Geoffrey W. Crawford.
For her crime, Jacobina Carter faced a maximum penalty of 20 years in prison. In sentencing Carter, Judge Sessions noted her violations of Court conditions – including her participation in new drug trafficking activity while on release – as well as the long-term nature of her drug dealing. On the other hand, he observed that Carter was a street-level dealer who did not operate as part of a larger network or exercise control over others.
The investigation was a collaborative effort of the Vermont State Police Drug Task Force; the Brattleboro, Vermont Police Department; Homeland Security Investigations; and the Federal Bureau of Investigation
Assistant United States Attorney Christina Nolan prosecuted the case. Carter is represented by Mark Oettinger, Esq., of Burlington, Vermont.
Iowa’s Untapped Workforce: A Roadmap for Second Chance HiringRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office is hosting three half day workshops across the Northern District entitled, “Iowa’s Untapped Workforce: A Roadmap for Second Chance Hiring.” The first of these free workshops begins tomorrow in Cedar Rapids, followed by Fort Dodge on July 27th and Sioux City the next day.
Literally thousands of justice-involved individuals are released from America’s state and federal prisons every week and arrive on the doorsteps of our nation’s communities. Studies show that approximately two-thirds of all those released will likely be rearrested within three years of release. For the communities to which most former prisoners return (communities which are often impoverished and disenfranchised neighborhoods with few social supports and persistently high crime rates), the release of ex-offenders represents a variety of challenges.
What can be done to help people who are released from prison keep from being rearrested? With no job, no money, and no place to live, returnees often find themselves facing the same pressures and temptations that landed them in prison in the first place.
The goal of the workshops is to assist ex-prisoners in finding and keeping employment, identifying transitional housing, and receiving mentoring which are three key elements of successful re-entry back into their communities. This goal will be achieved by providing employers, business students, human resource professionals, and community members informative “takeaways” about the benefits of hiring individuals with a criminal history and to dispel many myths.
Earlier this year the Department of Justice designated one week in April as National Reentry Week. United States Attorney General Loretta E. Lynch participated in several events around the country. She noted during one of those visits that, “Too often, justice-involved individuals who have paid their debt to society confront daunting obstacles to good jobs, decent housing, adequate health care, quality education, and even the right to vote. National Reentry is working to tear down the barriers that stand between returning citizens and a meaningful second chance – leading to brighter futures and stronger communities.”
United States Attorney Kevin W. Techau also offered his thoughts on the initiative, “Employment is one of the largest indicators of whether an individual who has been released from prison will re-offend. It is undisputed that employment decreases the risk of an individual committing a new crime. Increasing public safety is a goal we all should share.” He also noted that the workshops will help employers better understand the significant role they can play, which will benefit the communities in which they live.
The Untapped Workforce events will highlight the reasons why employers should consider hiring someone with a felony or criminal record. Participants will learn about the tax credits and federal bonding programs that help protect employers who engage in “second chance” hiring. Information will be presented detailing how employers can work with corrections staff and probation officers to find potential employees who have the relevant vocational training and skills to become an asset to their company. Participants will also hear from the EEOC regarding Best Practices and employment guidance, helping employers understand what they can ask potential employees about their criminal history and how to shape a hiring policy that will protect their company and be legally compliant.
The keynote speaker will be Arte Nathan, the now retired Director of Human Resources and Senior Vice President for Wynn Resorts and Casinos. Mr. Nathan was responsible for opening and staffing numerous Wynn resorts and casinos around the world, including the Bellagio in Las Vegas. He hired over 100,000 employees in his career. Nathan will share his story, including his decision to take a chance on hiring ex-gang members and ex-felons and how that decision positively impacted the lives of those individuals and their families, while also benefiting his company and the communities in which they lived. He will share advice on how local employers can likewise make a positive impact in the community without jeopardizing their business.
All participants will be able to participate in a "reentry simulation" activity during which they will assume the fictional identity of someone being released from prison. They will be required to navigate through probation and parole requirements, obtain a job, and avoid going back to prison. The one hour exercise has been a highlight of similar events around the country, and helps participants understand the barriers that are often encountered by people coming out of prison.
A number of agencies and organizations assisted the United States Attorney’s Office in organizing these events. The primary co-sponsors include Iowa Workforce Development, IowaWORKS, The Siouxland Initiative, the Iowa Department of Corrections, the Employers’ Councils of Iowa, and the nonprofit America’s Job Honor Awards.
To learn more about the Department of Justice’s Reentry initiative, visit: https://www.justice.gov/archive/fbci/progmenu_reentry.html.
Follow us on Twitter @USAO_NDIA.
Georgia Real Estate Investor Pleads Guilty to Bid Rigging and Bank Fraud at Public Home Foreclosure AuctionsRead the Press Release
A Georgia real estate investor pleaded guilty today for his role in bid-rigging and fraud conspiracies committed at public real estate foreclosure auctions in Georgia, the Department of Justice announced.
James R. Patterson Jr. admitted that he agreed with other real estate investors to rig auctions of foreclosed homes in Gwinnett County from May 2007 until at least November 2011. According to court documents filed in the U.S. District Court for the Northern District of Georgia, Patterson and his co-conspirators agreed not to compete for the purchase of selected foreclosed homes so that they could win the auctions for those homes with artificially low bids. The winning bidders then paid off the conspirators who had refrained from bidding against them. As a result, conspirators profited from money that otherwise would have gone to mortgage holders and other secured debt holders and in some cases, to the people who owned the foreclosed homes.
Including the individual pleading today, twenty-two defendants have been charged in connection with the Justice Department’s ongoing investigation into bid rigging and fraudulent schemes involving real estate foreclosure auctions in the Atlanta area. Twenty of those have either pleaded guilty or agreed to plead guilty.
These charges have been filed as a result of the ongoing investigation being conducted by the Antitrust Division’s Washington Criminal II Section, the FBI’s Atlanta Division and the U.S. Attorney’s Office of the Northern District of Georgia, in connection with the president’s Financial Fraud Enforcement Task Force. The president established the task force 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 is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.
For more information about the task force, please visit www.StopFraud.gov. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Washington Criminal II Section of the Antitrust Division at 202-598-4000, call the Antitrust Division’s Citizen Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Former Morgan City housing authority executive director, employees sentenced for theft of half a million dollarsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that the former executive director of the Morgan City Housing Authority and three former employees were sentenced for a conspiracy related to theft of half a million dollars.
Charles E. Spann, 78, of Kingsport, Tenn., was sentenced to 36 months in prison, three years of supervised release and ordered to pay $111,657.47 restitution on one count of conspiracy to defraud the United States. Tori D. Johnson, 38, of Morgan City, La., was sentenced to 12 months and one day in prison, three years of supervised release and ordered to pay $100,040.23 restitution on one count of conspiracy to defraud the United States. Diana L. Pace, 64, of Morgan City was sentenced to 18 months in prison, three years of supervised release and ordered to pay $137,660.72 restitution on one count of theft of government money. Sandra L. Greene, 59, of Morgan City, was sentenced to five years of probation and ordered to pay $165,405.46 restitution on one count of misprision of a felony. United States District Judge Donald E. Walter presided over the hearings.
According to the April 22, 2016 guilty pleas, the defendants received a total of $514,764.14 in bonus payments to which they were not entitled from 2007 to 2013. In 2007, a one-time bonus for work performed in the wake of hurricanes Katrina and Rita was granted. After the one-time bonuses were sent to all employees of the housing authority, Johnson requested from Spann, who was executive director, that she, Spann and the other two employees, continue to receive bonuses. Johnson wrote false justifications for the bonuses and Spann signed off on them. The bonuses were not approved by the civil service board or the Morgan City Housing Authority Board of Directors. Span received $111,657.47, Johnson received $100,040.23, Greene received $165.405.46 and Pace received $137,660.72 to which they were not entitled.
The U.S. Office of Housing and Urban Development, Office of Investigations, conducted the investigation. Assistant U.S. Attorneys Kelly P. Uebinger and Robert F. Moore prosecuted the case.
Former Citibank Employee Sentenced to 21 Months in Federal Prison for Causing Intentional Damage to a Protected ComputerRead the Press Release
DALLAS — A Dallas man who worked at Citibank Regents Campus in Irving, Texas, in 2012 and 2013, Lennon Ray Brown, and who admitted causing damage to a protected Citibank computer, was sentenced today by U.S. District C. Godbey to 21 months in federal prison and ordered to pay $77,200 in restitution, announced U.S. Attorney John Parker of the Northern District of Texas.
Brown, 38, who worked for Citibank first as a contract employee and then, beginning in February 2013 as a full-time employee, pleaded guilty in February 2016 to an indictment charging one count of intentional damage to a protected computer. According to documents filed in his case, on December 23, 2013, after having a discussion with his supervisor earlier in the day about his work performance, Brown caused the transmission of a program, information, code and command, causing damage without authorization to a protected computer.
Specifically, at approximately 6:03 p.m. that evening, Brown knowingly transmitted a code and command to 10 core Citibank Global Control Center routers, and by transmitting that code, erased the running configuration files in nine of the routers, resulting in a loss of connectivity to approximately 90% of all Citibank networks across North America. At 6:05 p.m. that evening, Brown scanned his employee identification badge to exit the Citibank Regents Campus.
At today’s sentencing hearing, where the Court referred to Brown’s conduct as “criminal vandalism,” the government read a text that Brown sent to a coworker shortly after he shut down Citibank’s system that read, “They was firing me. I just beat them to it. Nothing personal, the upper management need to see what they guys on the floor is capable of doing when they keep getting mistreated. I took one for the team. Sorry if I made my peers look bad, but sometimes it take something like what I did to wake the upper management up.”
The case was investigated by the U.S. Secret Service. Assistant U.S. Attorney C.S. Heath was in charge of the prosecution.
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Florida Man Pleads Guilty to Helping Disguise Foreign Contribution during 2012 Presidential Election and Making False Declaration before Grand JuryRead the Press Release
A Tampa, Florida, man pleaded guilty today to helping funnel $80,000 in campaign contributions from a foreign source to the joint fundraising committee of the President of the United States during the 2012 presidential election and to making a false declaration before the grand jury, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman of the District of New Jersey.
William Argeros, 57, pleaded guilty before U.S. District Judge Madeline Cox Arleo of the District of New Jersey to an information charging him with knowingly and willfully making foreign contributions and donations in connection with the 2012 presidential election and to a fundraising and political campaign committee of the president, aggregating $25,000 or more during a calendar year, and to knowingly making a false declaration before the grand jury concerning his role in facilitating and concealing the foreign contribution. Sentencing has been scheduled for Nov. 9, 2016, before Judge Arleo.
According to his plea agreement, Argeros admitted that in September 2012, he facilitated the transfer of $80,000 from a foreign source to Bilal Shehu, a U.S. citizen residing in New Jersey. Shehu, in turn, provided it to a joint fundraising committee – including the authorized campaign committee of the president – in an effort to disguise the true origin of the money and so that a foreign national could attend a campaign event on Oct. 8, 2012, in San Francisco, according to Argeros’s plea. Argeros also admitted to providing instructions to foreign individuals on how to transfer the money and provide payment to the joint fundraising committee. Federal law prohibits foreign nationals from making contributions to federal candidates or fundraising committees.
Argeros also admitted that on Feb. 18, 2015, he falsely testified under oath that he did not participate in arranging the transfer of money to the joint fundraising committee before a grand jury in the District of New Jersey.
On June 29, 2016, Shehu pleaded guilty to helping to funnel $80,000 in campaign contributions from a foreign source to the joint fundraising committee.
No one on the joint fundraising committee has been accused of any wrongdoing and the committee has fully cooperated in the investigation leading to today’s guilty plea.
The FBI investigated the case. Trial Attorneys Charles R. Walsh and Peter N. Halpern of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Mark J. McCarren of the District of New Jersey’s Special Prosecutions Division are prosecuting the case.
Florida Man Admits Helping Disguise Foreign Contribution During 2012 Presidential Election, Lying to Grand JuryRead the Press Release
NEWARK, N.J. – A Tampa, Florida, man pleaded guilty today to helping funnel $80,000 in campaign contributions from a foreign source to the joint fundraising committee of the President of the United States during the 2012 presidential election and lying about it to a federal grand jury, U.S. Attorney Paul J. Fishman and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced.
William Argeros, 57, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with knowingly and willfully making foreign contributions and donations in connection with the 2012 presidential election and to a fundraising and political campaign committee of the president, aggregating $25,000 or more during a calendar year. Argeros also pleaded guilty to knowingly making a false declaration before a federal grand jury concerning his role in facilitating and concealing the foreign contribution.
According to documents filed in this case and statements made in court:
Argeros admitted that in September 2012, he facilitated the transfer of $80,000 from a foreign source to Bilal Shehu, a U.S. citizen residing in New Jersey, who, in turn, provided it to a joint fundraising committee – including the authorized campaign committee of the president – in an effort to disguise the true origin of the money and so that a foreign national could attend a campaign event on Oct. 8, 2012, in San Francisco. Argeros also admitted to providing instructions to foreign individuals on how to transfer the money and provide payment to the joint fundraising committee.
In addition, Argeros admitted providing false testimony before a grand jury sitting in the District of New Jersey. On Feb. 18, 2015, Argeros falsely testified under oath that he did not participate in arranging the transfer of money to the joint fundraising committee.
Federal law prohibits foreign nationals from making contributions to federal candidates or fundraising committees. Shehu pleaded guilty to the same charge on June 29, 2016.
Both charges to which Argeros pleaded guilty carry a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 9, 2016.
No one on the joint fundraising committee has been accused of any wrongdoing, and the committee has fully cooperated in the investigation leading to today’s guilty plea.
U.S. Attorney Fishman and Assistant Attorney General Caldwell credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s plea. The government is represented by Assistant U.S. Attorney Mark J. McCarren of the District of New Jersey’s Special Prosecutions Division and Trial Attorneys Charles Walsh and Peter Halpern of the Criminal Division’s Public Integrity Section.
Defense counsel: John A. Azzarello Esq.
Employer Summit Educates Tallahassee on Benefits of Hiring Former InmatesRead the Press Release
TALLAHASSEE, FLORIDA – Tomorrow, the United States Attorney’s Office for the Northern District of Florida and the Big Bend “A Fight to End Recidivism” (AFTER) Reentry Coalition are co-hosting the Big Bend Second Chance Employer Summit.
Event: Big Bend Second Chance Employer Summit
Location: FSU Law School, Lecture Hall (Room 101)
425 W. Jefferson Street, Tallahassee, FL 32301
Parking at Donald L. Tucker Civic CenterDate: Tuesday, July 26, 2016, 9:00 a.m.-1:30 p.m.
Description: Turn someone’s life around with a second chance at a job. Learn about the benefits of hiring a formerly incarcerated individual from employers, law enforcement, and community partners.
Keynote Speaker: Former FSU Coach Bobby Bowden
Lunch: Provided at no cost.
RSVP: All participants, including media, should RSVP at https://usaoflntraining.org/employersummit if they wish to attend any portion of the event. The target audience is employers, human resource directors, nonprofit and faith-based organizations, and reentry providers. Available space for 200 participants to attend.
Press: A brief media availability will take place after the event concludes. Reporters are asked to set up camera equipment prior to the beginning of the event or during scheduled breaks.
This half-day summit will offer employers, human resource directors, nonprofit and faith-based organizations, and reentry providers an opportunity to learn from leaders who gave a previously incarcerated person a second chance. Former FSU Football Coach Bobby Bowden will give the keynote address, and two panels will discuss benefits and challenges of hiring formerly incarcerated individuals. Former inmates who now have successful careers will also share their reentry experiences.
“Nearly a quarter of Americans may face obstacles to achieving productive, law-abiding lives due to previous encounters with the criminal justice system,” said United States Attorney Christopher P. Canova. “The most important challenge for these individuals is finding a job. Employment helps reduce crime and makes neighborhoods across our district and nation better places to live.”
“We need to hear the voices of business leaders to address this economic and public safety challenge,” said Lauren Walker, Chair of the Big Bend AFTER Reentry Coalition. “To keep our economy growing, we need all hands on deck.”
The United States Attorney’s Office and the Big Bend AFTER Reentry Coalition thank the following organizations for their assistance in planning the employer summit:
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Federal Bureau of Prisons
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Florida Department of Corrections
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Florida Department of Economic Opportunity
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FSU Project on Accountable Justice
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United States Probation Office
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The Living Harvest
Reentry Resources
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Attorney General Loretta Lynch’s message on National Reentry Week
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Big Bend “A Fight to End Recidivism” (AFTER) Reentry Coalition
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DOJ Roadmap to Reentry
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Employer Tax Credit
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Federal Bonding Program
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Kearney Center Reentry Services
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]-
El Reno Woman Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that MICHELLE LEA DAVIS, age 38, of El Reno, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
The Indictment alleged that on or about April 30, 2016, in the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute 5 grams or more of methamphetamine (actual), a Schedule II controlled substance.
The charges arose from an investigation by the McAlester Police Department, the Pittsburg County Sheriff’s Office, the District 18 Drug and Violent Crimes Task Force and the Drug Enforcement Administration.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
The statutory range of punishment is not less than 5 years and not more than 40 years imprisonment up to a $5,000,000.00 fine or both.
Assistant United States Attorney Kristin Harrington represented the United States.
Cypress Man Heads to Prison for Distributing Child PornographyRead the Press Release
HOUSTON - A 25-year-old Cypress man has been ordered to prison for more than 11 years following his conviction of distribution of child pornography, announced U.S. Attorney Kenneth Magidson. Jimmy Ortiz pleaded guilty Aug. 21, 2014.
Today, U.S. District Judge Keith P. Ellison, took into consideration type and number of images, his criminal history and handed Ortiz a total sentence of 135 months in federal prison. Ortiz was further ordered to pay $102,500 in restitution to two known victims and will serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
Indicted Jan. 30, 2014, Ortiz later appeared for a detention hearing before U.S. Magistrate Judge George C. Hanks Jr. who found Ortiz to be a danger to the community and ordered he be detained.
The investigation revealed Ortiz was making child pornography available to others through the use of peer-to-peer software over the Internet. An FBI agent downloaded a video of child pornography from the files Ortiz was making available online. The video included two minor female children under the age of 12 performing oral sex on each other. Additionally, a FBI agent in Oklahoma also downloaded videos that contained child pornography from Ortiz.
A search warrant was executed Sept. 27, 2013. At that time, agents seized computer media including external hard drives which led to the discovery of more than 1500 digital images and approximately 49 videos containing child pornography.
Ortiz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI Innocent Images Task Force conducted the investigation.
This case, prosecuted by Assistant United States Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Colombian Narcotics Kingpin Sentenced in Manhattan Federal Court to 35 Years in Prison for Massive Cocaine ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Robert L. Capers, the United States Attorney for the Eastern District of New York, and Wifredo A. Ferrer, the United States Attorney for the Southern District of Florida, announced that DANIEL BARRERA BARRERA, also known as “Loco Barrera,” a citizen of Colombia, was sentenced today in Manhattan federal court to 35 years in prison and ordered to forfeit $10,000,000 by U.S. District Judge Gregory H. Woods for his role in conspiring to distribute and manufacture cocaine knowing that it would be imported into the United States. BARRERA was also sentenced by Judge Woods on one count of conspiring to launder money, as charged in a Superseding Indictment filed in the Eastern District of New York, and on one count of conspiring to import cocaine into the United States and one count of conspiring to manufacture and distribute cocaine knowing that it would be unlawfully imported into the United States, as charged in a Superseding Indictment filed in the Southern District of Florida.
For decades, BARRERA manufactured hundreds of tons of cocaine annually in Colombia and trafficked it to various parts of the world, including the United States, and laundered tens of millions of dollars in proceeds from that narcotics trafficking activity. In March 2010, the U.S. Department of the Treasury’s Office of Foreign Assets Control designated BARRERA as a “Special Designated Narcotics Trafficker,” pursuant to the Foreign Narcotics Kingpin Designation Act. BARRERA was arrested in Venezuela on September 18, 2012. Thereafter, he was sent to Colombia, from where the United States sought and obtained BARRERA’s extradition. BARRERA was extradited from Colombia to the Southern District of New York on July 9, 2013.
U.S. Attorney Preet Bharara said: “The man Colombian authorities have called ‘the last of the great kingpins,’ now stands convicted and sentenced in an American court of law. For his decades-long trafficking of more than 720 tons of cocaine, creating a narcotics pipeline from Colombia to four different continents, Daniel Barrera Barrera will spend the next 35 years in federal custody. Thanks to the outstanding agents of the DEA and HSI, this international drug kingpin’s reign is over.”
U.S. Attorney Robert L. Capers said: “The sentencing of Daniel ‘Loco’ Barrera Barrera ends his reign as the leader of a violent and ruthless organization who partnered with powerful cartels and terrorist organizations. The dedicated efforts of our law enforcement partners have destroyed Barrera’s empire and today’s sentence sends a powerful message to narcotics traffickers around the world and domestically that we are committed to prosecuting to the fullest extent of the law.”
U.S. Attorney Wifredo A. Ferrer said: “Today’s sentencing closes the chapter on Barrerra’s reign as of one of the largest cocaine traffickers in history. Barrera’s violent drug trafficking organization infected the international community. By joining forces, law enforcement authorities successfully removed Barrera from power and gave communities back to their law abiding citizens.”
As alleged in the indictments filed in the Southern District of New York, the Eastern District of New York, and the Southern District of Florida, statements made at court proceedings including today’s sentencing, and other information in the public record:
From 1998 until 2010, BARRERA ran a cocaine manufacturing and trafficking syndicate out of Colombia. BARRERA purchased the raw cocaine base or paste from the designated terrorist group Fuerzas Armadas Revolucionarias de Colombia (the “FARC”). The FARC, which has been dedicated to the violent overthrow of the democratically elected Government of Colombia, has been the world’s largest supplier of cocaine and has engaged in bombings, massacres, kidnappings, and other acts of violence within Colombia.
After purchasing the raw cocaine base from the FARC, BARRERA converted the raw cocaine into powder at laboratories he owned and operated in an area of Colombia controlled by the since demobilized terrorist group, Autodefensas Unidas de Colombia (the “AUC”). For years, the AUC’s main political objective was to defeat the FARC in armed conflict, and it financed its terrorist activities through the proceeds of cocaine trafficking in AUC-controlled regions of Colombia. At the time of BARRERA’s criminal conduct, the FARC and the AUC were both designated by the U.S. Department of State as Foreign Terrorist Organizations.
After processing the cocaine powder in his laboratories, BARRERA arranged for the shipment and transportation of the cocaine powder to locations on four continents, including the United States. Although BARRERA purchased raw materials for cocaine production from the FARC, he was able to maintain his network of cocaine-processing laboratories in AUC-controlled territory, in part by paying monthly “taxes” to the AUC. The fees BARRERA paid to the AUC also allowed him to move the processed cocaine safely through and out of Colombia.
BARRERA additionally protected his massive cocaine shipments by regularly directing acts of violence and intimidation, including ordering many murders. In order to support this violent protection of his drug trafficking, BARRERA traded cocaine for hundreds of AK-47 rifles to arm his security forces and take control of the rural areas of Colombia where his drug laboratories were located.
Each month, BARRERA processed approximately 5,000 kilograms of raw cocaine base into about the same amount of cocaine powder, resulting in approximately 60,000 kilograms of cocaine annually and approximately 720,000 kilograms during the course of the conspiracy. In total, BARRERA reaped tens of millions of dollars of profits from cocaine trafficking, which he laundered through illicit means.
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In addition to the prison sentence, BARRERA, 48, was sentenced to five years of supervised release. The Court further ordered BARRERA to pay a $10,000,000 fine.
The sentencing of BARRERA is the result of an ongoing Organized Crime Drug Enforcement Task Force (“OCDETF”) investigation led by the Drug Enforcement Administration (“DEA”) and Homeland Security Investigations (“HSI”). The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Bharara, Mr. Capers, and Mr. Ferrer praised the outstanding work of the OCDETF, working in cooperation with HSI New York’s El Dorado Task Force, the DEA’s Bogota Country Office, the DEA’s Caracas Country Office, the DEA’s Miami Field Division, the DEA’s New York Drug Enforcement Task Force – which comprises agents and officers of the DEA, the New York City Police Department, and the New York State Police – and HSI Bogota. Mr. Bharara, Mr. Capers, and Mr. Ferrer also thanked the Colombian National Police, the U.S. Marshals Service, and the U.S. Department of Justice’s Office of International Affairs for their assistance in this prosecution.
The Southern District of New York case is being handled by that office’s Terrorism and International Narcotics Unit, with Assistant United States Attorney Andrea Surratt in charge of the prosecution. The Eastern District of New York case is being handled by that office’s International Narcotics and Money Laundering Unit, with Assistant United States Attorney Soumya Dayananda in charge of the prosecution. The Southern District of Florida case is being handled by that office’s Narcotics Unit, with Assistant United States Attorney Adam Fels in charge of the prosecution.
Clermont Woman Pleads Guilty to Theft of over $650,000Read the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Robin C. Briere (53, Clermont) has pleaded guilty to wire fraud for her theft of more than $650,000 from the American Legion Auxiliary Department of Florida. She faces up to 20 years in federal prison. A sentencing date has not yet been set.
According to court documents, Briere used her position as Secretary-Treasurer of the American Legion Auxiliary to steal approximately $657,441 from the organization over a seven-year period from 2007 to 2014. Briere accomplished her scheme by creating more than 200 fraudulent transactions, most of which involved Briere writing checks to herself on the American Legion Auxiliary account and then inputting false entries to the organization’s accounting system. She also wrote checks from the American Legion Auxiliary account to pay her personal credit card bills. In some instances, Briere used the American Legion Auxiliary credit card to pay her personal expenses.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Roger B. Handberg and Nathan W. Hill.
Buddhist monk sentenced to 30 months in prison for defrauding temple of more than $263,000Read the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a Lafayette Buddhist monk was sentenced to 30 months in prison for wrongfully taking more than $263,000 from his own temple.
Khang Nguyen Le, 36, a Vietnamese citizen who is living in Lafayette, was sentenced by U.S. District Judge Donald E. Walter on one count of wire fraud. He was also ordered to pay $263,463.36 in restitution and may face deportation to Vietnam after release from prison. According to the March 17, 2016 guilty plea, Le was the president, presiding monk and resident of the temple of the Vietnamese Buddhist Association of Southwest Louisiana in Lafayette from 2010 to October of 2014. From January of 2013 until August of 2014, Le wrongfully withdrew $263,463.36 in temple funds from the temple’s bank accounts to gamble at a Lake Charles casino. Le would drive to Lake Charles and withdraw the money from temple bank accounts using automated teller machines and casino tellers. To hide his unlawful activity from temple members, Le would misrepresent the temple’s financial situation at meetings and gambled in lower-populated areas of the casino to avoid being seen. Le was at no time authorized by the temple to use its money for gambling purposes.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys David C. Joseph and Myers P. Namie prosecuted the case.
Brothers who Conspired to Smuggle 29 Kilos of Cocaine into Canada Convicted Following Jury TrialRead the Press Release
Two Bellingham brothers were convicted today in U.S. District Court in Seattle of federal felonies related to their attempt to smuggle more than 29 kilos of cocaine across the border between the U.S. and/Canada, announced U.S. Attorney Annette L. Hayes. Brothers JOHN EMMETT BROWN, JR., 46, and DERRICK LOUIS CARTER, 38, were each convicted of conspiracy to distribute cocaine and possession of cocaine with intent to distribute. The jury deliberated about 10 hours following an eleven-day trial. U.S. District Judge Marsha J. Pechman scheduled sentencing for October 28, 2016.
According to records filed in the case and testimony at trial, BROWN drove to Los Angeles in November 2014 where he picked up 29 or 30 bricks of cocaine with a value in excess of $2 million. While in California, BROWN asked his brother, CARTER, to drive down I-5 to meet up with him and serve as a decoy car while he drove north. Once back in Bellingham, the men recruited other co-conspirators to carry the cocaine over the border in backpacks. Three men, BROWN and two others, crossed the border dressed in dark or camouflage clothing, and carrying smoke bombs and bear spray. Each had a backpack with multiple kilos of cocaine.
The smuggling run on November 8, 2014, was interrupted when CARTER was stopped speeding near the border by a Whatcom County Sheriff’s Deputy. The car smelled of pepper spray. U.S. Border Patrol agents, who had arrived to provide backup to the Whatcom County Sheriff’s Deputy, knew that BROWN and CARTER were long-time smugglers who used bear spray to cover their tracks. The two men were known to frequent the area where CARTER was contacted by law enforcement. Other U.S. Border Patrol personnel went to the border, and those agents spotted three figures running north from the border in that area. They alerted RCMP about the apparent smuggling operation. Two of the border-crossers were later arrested by RCMP in the vicinity of three backpacks filled with cocaine, bear spray, mobile phones, camouflage gear, a Kevlar helmet, and a firearm. The third smuggler -- BROWN -- got away.
The various items left abandoned at the border were linked to BROWN via information on the recovered mobile phones as well as the assistance of witnesses who were present before and during the smuggling operation. In June 2015, BROWN and CARTER were arrested on federal charges.
Due to the large amount of cocaine, the men face mandatory minimum sentences of 10 years to life in prison.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI) with critical assistance from the Whatcom County Sheriff’s Office, Bellingham Police Department, U.S. Border Patrol, the Drug Enforcement Administration (DEA), Health Canada and the Royal Canadian Mounted Police.
The case was prosecuted by Assistant United States Attorneys Erin H. Becker and S. Kate Vaughan.
Brooke County man sentenced for manufacturing methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – Harold L. Midcap, III, 40, of Follansbee, West Virginia, was sentenced to 37 months in prison for manufacturing methamphetamine, United States Attorney William J. Ihlenfeld, II, announced.Midcap manufactured methamphetamine in early to mid-2015 in Brooke County, WV. He pled guilty in February 2016 to one count of “Methamphetamine Conspiracy.”
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Drug Enforcement Administration, the West Virginia State Police, the Hancock Brooke Weirton Drug Task Force, the Brooke County Sheriff’s Office, and the Follansbee Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Bakersfield Man Sentenced to over 7 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — Jorge Chavez, 30, of Bakersfield, was sentenced today by United States District Judge Dale A. Drozd to seven years and eight months in prison for being a felon in possession of a firearm and ammunition, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, when officers encountered him in 2012, Chavez had a Glock, Model 23, .40-caliber semi-automatic pistol in his possession. Prior to his arrest, he had been convicted in 2005 and 2007 in Kern County Superior Court of drug trafficking felonies.
This case was the product of an investigation by the Federal Bureau of Investigation and the Bakersfield Police Department. Assistant United States Attorney Melanie L. Alsworth prosecuted the case.
Allen Man Pleads Guilty to Assault in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that WILLIAM CONLEY BOAZ II, age 27, of Allen, Oklahoma, pled guilty to an Information charging him with ASSAULT IN INDIAN COUNTRY (MISDEMEANOR), in violation of Title 18, United States Code, Sections 1152 and 113(a)(4).
The Information alleges that on or about February 18, 2016, in the Eastern District of Oklahoma and elsewhere, while present within Indian Country in the special maritime and territorial jurisdiction of the United States, the Defendant, WILLIAM CONLEY BOAZ II, a non-Indian, did commit an assault against an Indian, who was a spouse or intimate partner, by striking said person on the face.
The charges arose from an investigation by the Chickasaw Nation Lighthorse Police and the Bureau of Indian Affairs.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
The statutory range of punishment is not more than 1 year imprisonment, a fine up to $100,000.00 or both.
Assistant United States Attorney Dean Burris represented the United States.
23 July 2016
Former City of Bettendorf Employee Admits Taking BribesRead the Press Release
DAVENPORT, IA – On July 22, 2016, Robert W. Webster, 66, of Davenport, Iowa, after three days of trial, pleaded guilty before Chief United States District Court Judge John A. Jarvey to three counts of an Indictment charging one count of conspiracy to commit bribery involving governments receiving federal funds in violation of 18 U.S.C. §§ 666(a)(2) & (b) and 371 and two counts of bribery concerning governments receiving federal funds in violation of 18 U.S.C. § 666(a)(1)(B), announced United States Attorney Kevin E. VanderSchel. Webster, the former City Electrician for the City of Bettendorf, Iowa, admitted that from 2004 or earlier, until around July of 2010, he conspired with persons at Brown Traffic Products, Inc. (BTP) of Davenport to accept all-expenses-paid trips including airfare, lodging, meals, drinks, and entertainment intending to be rewarded or influenced in connection with business transactions with the City of Bettendorf.
Webster admitted in March of 2009, he accepted $2,700 from an employee of BTP in the form of a check issued to Webster’s wife and deposited into her credit union account. The March 2009 payment was accepted by Webster with the intent that he rewarded and influenced in connection with business transactions, past and future, between BTP and the City of Bettendorf. He further admitted that in September of 2009, he accepted payment for golf at the Kokopelli golf course in Gilbert, Arizona, from an employee of BTP as a reward or as influence for transactions with the City of Bettendorf.
For the bribery charges, on each of the two counts, Webster faces a potential statutory sentence of up to ten years (10) years in prison, a fine of up to $250,000, and a term of up to two (2) years of supervised release to follow any term of imprisonment. For the conspiracy charge, Webster faces a potential statutory sentence of up to five years (5) years in prison, a fine of up to $250,000, and a term of up to one (1) year of supervised release to follow any term of imprisonment. Sentencing is scheduled before Chief United States District Court Judge John A. Jarvey on December 14, 2016, at 10:00 a.m. at the United States Courthouse in Davenport, Iowa.
Other persons who have pled guilty in this investigation are Robert L. Budd, Jr., Daniel O. Fuchs, and David Schiltz, all former employees of Brown Traffic Products, Inc.
This matter was investigated by the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
22 July 2016
Wasilla Man Sentenced for Bank RobberyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Wasilla man was sentenced by U.S. District Judge Sharon L. Gleason to 95 months in prison for bank robbery.
Wayne Michael Sexton, 45, of Wasilla, Alaska, was indicted by the grand jury in November 2015 for robbing Credit Union 1 located in the Midtown region of Anchorage, on Aug. 7, 2015. Sexton, who has been in custody for the robbery since Nov. 9, 2015, has been detained in the Anchorage jail without bail. Sexton has a prior conviction for two bank robberies which he committed in 1999.
According to Assistant U.S. Attorney Steven Skrocki, Sexton carried and pointed a revolver at bank personnel, took over the entire bank lobby area, threatened and intimidated bank personnel and pilfered each teller station one at a time. During the robbery, Sexton obtained more than $17,000 in cash.
In sentencing Sexton to a term of 95 months, the court noted the impact of the crime on the victim tellers, Sexton’s display of a pistol during the robbery, the threat to the public and Sexton’s inability to avoid a life of crime. Sexton told the court the robbery was “an act of a coward.” Sexton was also ordered by the court to pay $17,730 to Credit Union 1 in restitution.
U.S. Attorney Loeffler commends the Federal Bureau of Investigation and the Alaska State Troopers for the investigation of this case.
U.S. Attorney's Office Announces Civil Rights SectionRead the Press Release
United States Attorney Randolph J. Seiler announced that Alison Ramsdell has been selected to head up the newly created Civil Rights Section in the U.S. Attorney’s Office, District of South Dakota. As leader of the Civil Rights Section, Ramsdell will serve as the contact person on all civil rights matters for the District.
Ramsdell joined the U. S. Attorney’s office in 2014, as an Assistant U.S. Attorney in the Sioux Falls office. In that capacity, her primary focus has been civil litigation.
The Civil Rights Section enforces federal civil rights statutes prohibiting discrimination on the basis of race, color, sex, disability, religion, familial status and national origin. Among those statutes are the Americans with Disabilities Act, Title VII of the Civil Rights Act, the Voting Rights Act, and the Fair Housing Act. The Section also works closely with the Criminal Division to prosecute criminal civil rights cases, such as those involving police misconduct, hate crimes, and human trafficking.
In addition to enforcing federal civil rights statutes, the Civil Rights Sections strives to educate community members about their rights under federal law by engaging in outreach programs throughout the District.
Ramsdell was born and raised in Flandreau, South Dakota. She received her undergraduate degree in International Economics, Spanish and Public Relations, with a minor in Business Administration, from Valparaiso University in 2008, and her Juris Doctor degree from the University of Iowa College of Law in 2011. While attending law school, Ramsdell wrote and edited for the Iowa Law Review, worked for the Citizens’ Lawyer Program, and volunteered at the Iowa Coalition Against Domestic Violence/MUNA Legal Clinic.
Upon graduating, Ramsdell practiced at Murphy, Goldammer & Prendergast in Sioux Falls. She then served as a law clerk for the Honorable Karen E. Schreier and the United States District Court for the District of South Dakota, where she primarily handled pro se matters.
“With societal changes and threats to the fundamental rights of certain segments of our society, such as the LGBT community, it has become increasingly necessary to have a dedicated attorney to handle civil rights matters in South Dakota,” said U.S. Attorney Seiler. “Alison Ramsdell brings an abundance of talent, energy, and compassion to her new position. The protection of every citizen’s civil rights has historically been a priority of the U.S. Attorney’s Office, but we are ramping up those efforts and Alison will play a significant role in enforcing those laws.”
For further information, or to schedule a training or outreach program, please email [email protected].
U.S. Attorney Invited to Attend White House Briefing on "Combating Religious Discrimination Today" InitiativeRead the Press Release
DALLAS — A White House briefing was held today on “Combating Religious Discrimination Today,” a federal interagency community engagement initiative designed to promote religious freedom, challenge religious discrimination, and enhance enforcement of religion-based hate crimes. The initiative was launched earlier this year by the Department of Justice.
The White House briefing, as well as the Justice Department’s release today of its final report on the “Combating Religious Discrimination Today” initiative, follow an April 2016 community roundtable held in Dallas as a major part of that initiative. Hosted by U.S. Attorney John Parker of the Northern District of Texas and the Justice Department’s Civil Rights Division, in partnership with other federal agencies, the Dallas roundtable focused on religiously-motivated hate violence and hate crimes, protecting places of worship, and exploring ideas for the federal government to improve its efforts in those areas. Approximately 35 leaders from the Dallas - Fort Worth area faith-based community, civil rights organizations, and government agencies participated in April’s roundtable that was facilitated by U.S. Attorney Parker. Enthusiastic dialogue during the roundtable guided stakeholders in identifying next steps and formulating short and long-term goals.
In addition to the roundtable in Dallas, other roundtables were held throughout the U.S., and they focused on related topics, such as combatting religious discrimination, including bullying, in education and employment, and addressing unlawful barriers that interfere with the construction of places of worship. The final report issued today by the Justice Department provides an overview of what was heard at these roundtables.
“The diversity and tolerance of the north Texas area can be seen reflected in our many and varied faith-based communities,” said U.S. Attorney Parker. “The one thing we cannot, must not, tolerate, however, is hate directed at someone solely because they are different. It is particularly repugnant to our core values as Americans to victimize a person or group because of their faith. In fact, it is our shared duty to ensure that everyone, not just those who think like us, is free to worship as they choose and do so in peace.”
The “Combating Religious Discrimination Today” initiative supplements the Department’s continuing, long-standing criminal and civil enforcement efforts to prevent religious discrimination and religion-motivated hate crimes.
For more information, please refer to this White House blog post that discusses the report as well as other federal agencies’ efforts to address and combat religious discrimination.
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Two People Arrested Based on Facilitating Drug Distribution in Burlington, VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont today announced federal criminal charges against Peggy Marcelino, 55, and William St. George, 57, both from Burlington. Marcelino is charged with conspiring with Arden Cadle, from New York City, to distribute heroin, cocaine, and crack and to engage in money laundering. St. George is charged with making his apartment on Elmwood Avenue in Burlington available for drug trafficking by Cadle. Cadle was arrested on March 17, 2016. Cadle has been charged with conspiracy, distribution of heroin and crack, possession with intent to distribute heroin and crack, as well as being a felon in possession of a firearm.
Cadle pleaded not guilty to those charges on July 1, 2016. Marcelino and St. George pleaded not guilty today. All three defendants face a maximum sentence of twenty years in jail on the most serious charges. Cadle has been released pending trial. Marcelino and St. George have been detained pending a further hearing next week. The sentences for each of the defendants will be advised by the federal sentencing guidelines. The pending charges against these defendants are merely accusations, and they are presumed innocent until and unless they are proven guilty.
This case was investigated by the Drug Enforcement Administration. The United States is represented in these cases by Assistant United States Attorney Timothy Doherty. Cadle is represented by Assistant Federal Defender Steven Barth.
Three Individuals Charged in $1 Billion Medicare Fraud and Money Laundering SchemeRead the Press Release
The owner of more than 30 Miami-area skilled nursing and assisted living facilities, a hospital administrator and a physician’s assistant were charged with conspiracy, obstruction, money laundering and health care fraud in connection with a $1 billion scheme involving numerous Miami-based health care providers.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Miami Regional Office made the announcement.
“Medicare fraud has infected every facet of our health care system,” said U.S. Attorney Ferrer. “As a result of our unrelenting efforts to combat these pernicious schemes, the Criminal Division, the U.S. Attorney’s Office and our law enforcement partners continue to identify and prosecute the criminals who, driven by greed, steal from a program meant for our aged and infirmed to increase their personal wealth.”
“This is the largest single criminal health care fraud case ever brought against individuals by the Department of Justice, and this is further evidence of how successful data-driven law enforcement has been as a tool in the ongoing fight against health care fraud,” said Assistant Attorney General Caldwell.
“Esformes is alleged to have been at the top of a complex and profitable health care fraud scheme that resulted in staggering losses – in excess of $1 billion,” said Special Agent in Charge Piro. “The investigators who unraveled this intricate scam are to be commended for their diligence and commitment to root out fraud within our health care system.”
“Health care executives who exploit patients through medically unnecessary services and conspire to obstruct justice in order to boost their own profits – as alleged in this case – have no place in our health care system,” said Special Agent in Charge Richmond. “Such actions only strengthen our resolve to protect patients and the U.S. taxpayers.”
Philip Esformes, 47, Odette Barcha, 49, and Arnaldo Carmouze, 56, all of Miami-Dade County, Florida, were each charged in an indictment unsealed today. According to the indictment, Esformes operated a network of over 30 skilled nursing homes and assisted living facilities (the Esformes Network), which gave him access to thousands of Medicare and Medicaid beneficiaries. Many of these beneficiaries did not qualify for skilled nursing home care or for placement in an assisted living facility; however, Esformes and his co-conspirators nevertheless admitted them to Esformes Network facilities where the beneficiaries received medically unnecessary services that were billed to Medicare and Medicaid. Esformes and his co-conspirators are also alleged to have further enriched themselves by receiving kickbacks in order to steer these beneficiaries to other health care providers – including community mental health centers and home health care providers – who also performed medically unnecessary treatments that were billed to Medicare and Medicaid. In order to hide the kickbacks from law enforcement, these kickbacks were often paid in cash, or were disguised as payments to charitable donations, payments for services and sham lease payments, court documents allege.
Esformes and Barcha were also charged with obstructing justice. According to the indictment, following the 2014 arrest of co-conspirators Guillermo and Gabriel Delgado, Esformes attempted to fund Guillermo Delgado’s flight from the United States to avoid trial in Miami. The indictment further alleges that Barcha created sham medical director contracts following receipt of a grand jury subpoena in June 20, 2016, in order to conceal and disguise the payment of kickbacks she made in exchange for patient referrals for admission to Esformes Network facilities and another Miami-area hospital.
According to court documents, in 2006, Esformes paid $15.4 million to resolve civil federal health care fraud claims for essentially identical conduct, namely unnecessarily admitting patients from his assisted living facilities into a Miami-area hospital. However, Esformes and his co-conspirators allegedly continued this criminal activity-adapting their scheme to prevent detection and continue their fraud after the civil settlement. The indictment alleges that the co-conspirators accomplished this by employing sophisticated money laundering techniques in order to hide the scheme and Esformes’ identify from investigators. The FBI and HHS-OIG ultimately employed advanced data analysis and forensic accounting techniques and were able to identify the full scope of the fraud scheme.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. Deputy Chief Joseph Beemsterboer, Assistant Chief Allan J. Medina and Trial Attorney Elizabeth Young of the Criminal Division’s Fraud Section, and Assistant U.S. Attorneys Alison Lehr, Daren Grove and Susan Torres of the Southern District of Florida are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine locations across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Three Individuals Charged in $1 Billion Medicare Fraud and Money Laundering SchemeRead the Press Release
The owner of more than 30 Miami-area skilled nursing and assisted living facilities, a hospital administrator and a physician’s assistant were charged with conspiracy, obstruction, money laundering and health care fraud in connection with a $1 billion scheme involving numerous Miami-based health care providers.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Miami Regional Office made the announcement.
“This is the largest single criminal health care fraud case ever brought against individuals by the Department of Justice, and this is further evidence of how successful data-driven law enforcement has been as a tool in the ongoing fight against health care fraud,” said Assistant Attorney General Caldwell.
“Medicare fraud has infected every facet of our health care system,” said U.S. Attorney Ferrer. “As a result of our unrelenting efforts to combat these pernicious schemes, the Criminal Division, the U.S. Attorney’s Office and our law enforcement partners continue to identify and prosecute the criminals who, driven by greed, steal from a program meant for our aged and infirmed to increase their personal wealth.”
“Esformes is alleged to have been at the top of a complex and profitable health care fraud scheme that resulted in staggering losses – in excess of $1 billion,” said Special Agent in Charge Piro. “The investigators who unraveled this intricate scam are to be commended for their diligence and commitment to root out fraud within our health care system.”
“Health care executives who exploit patients through medically unnecessary services and conspire to obstruct justice in order to boost their own profits – as alleged in this case – have no place in our health care system,” said Special Agent in Charge Richmond. “Such actions only strengthen our resolve to protect patients and the U.S. taxpayers.”
Philip Esformes, 47, Odette Barcha, 49, and Arnaldo Carmouze, 56, all of Miami-Dade County, Florida, were each charged in an indictment unsealed today. According to the indictment, Esformes operated a network of over 30 skilled nursing homes and assisted living facilities (the Esformes Network), which gave him access to thousands of Medicare and Medicaid beneficiaries. Many of these beneficiaries did not qualify for skilled nursing home care or for placement in an assisted living facility; however, Esformes and his co-conspirators nevertheless admitted them to Esformes Network facilities where the beneficiaries received medically unnecessary services that were billed to Medicare and Medicaid. Esformes and his co-conspirators are also alleged to have further enriched themselves by receiving kickbacks in order to steer these beneficiaries to other health care providers – including community mental health centers and home health care providers – who also performed medically unnecessary treatments that were billed to Medicare and Medicaid. In order to hide the kickbacks from law enforcement, these kickbacks were often paid in cash, or were disguised as payments to charitable donations, payments for services and sham lease payments, court documents allege.
Esformes and Barcha were also charged with obstructing justice. According to the indictment, following the 2014 arrest of co-conspirators Guillermo and Gabriel Delgado, Esformes attempted to fund Guillermo Delgado’s flight from the United States to avoid trial in Miami. The indictment further alleges that Barcha created sham medical director contracts following receipt of a grand jury subpoena in June 20, 2016, in order to conceal and disguise the payment of kickbacks she made in exchange for patient referrals for admission to Esformes Network facilities and another Miami-area hospital.
According to court documents, in 2006, Esformes paid $15.4 million to resolve civil federal health care fraud claims for essentially identical conduct, namely unnecessarily admitting patients from his assisted living facilities into a Miami-area hospital. However, Esformes and his co-conspirators allegedly continued this criminal activity-adapting their scheme to prevent detection and continue their fraud after the civil settlement. The indictment alleges that the co-conspirators accomplished this by employing sophisticated money laundering techniques in order to hide the scheme and Esformes’ identify from investigators. The FBI and HHS-OIG ultimately employed advanced data analysis and forensic accounting techniques and were able to identify the full scope of the fraud scheme.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. Deputy Chief Joseph Beemsterboer, Assistant Chief Allan J. Medina and Trial Attorney Elizabeth Young of the Criminal Division’s Fraud Section, and Assistant U.S. Attorneys Alison Lehr, Daren Grove and Susan Torres of the Southern District of Florida are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine locations across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Three Florida Men Charged with Conspiring and Attempting to Provide Material Support to ISILRead the Press Release
Three Palm Beach County, Florida, residents were charged with conspiring and attempting to support the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General for National Security John P. Carlin, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and members of the South Florida Joint Terrorism Task Force (JTTF) made the announcement.
Gregory Hubbard, aka Jibreel, 52, of West Palm Beach, Florida; Darren Arness Jackson, aka Daoud, 50, also of West Palm Beach; and Dayne Atani Christian, aka Shakur, 31, of Lake Park, Florida, were charged by a criminal complaint with knowingly conspiring and attempting to provide material support and resources to ISIL. Christian was also charged with being a felon in possession of a firearm. The detention hearing will take place on July 27, 2016, and the defendants will be arraigned on Aug. 5, 2016.
“Individuals seeking to travel and take up arms with ISIL pose a threat to the United States and humanity across the globe,” said U.S. Attorney Ferrer. “The U.S. Attorney’s Office, the FBI and the Joint Terrorism Task Force continue to work proactively in order to stifle and disrupt any potential danger posed by the terrorist organizations and their supporters.”
“According to the complaint, these defendants conspired and attempted to provide material support to ISIL and one of the defendants was arrested attempting to travel overseas to join and fight for the deadly terrorist organization,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is countering terrorist threats, and we will continue to work to stem the flow of foreign fighters abroad and bring to justice those who conspire and attempt to provide material support to designated foreign terrorist organizations.”
“Terrorism-related arrests such as this serve to remind us of the importance of being vigilant,” said Special Agent in Charge Piro. “When you see something that doesn't seem right, report it to law enforcement. Fighting terrorism is the FBI’s number one priority. Any information that can put us on the trail of individuals intent on terrorist acts is valuable.”
According to the allegations contained in the complaint, Hubbard expressed support for ISIL and told an FBI confidential human source (CHS) that he wanted to travel to Syria and join ISIL for the purpose of engaging in violent jihad. Hubbard introduced the CHS to Christian and Jackson, both of whom provided weapons and firearms instruction to Hubbard and the CHS, whom they understood were preparing to travel overseas to join and fight for ISIL.
The complaint further alleges that Jackson and Christian also expressed a desire to join ISIL. Hubbard purchased an airplane ticket to Germany, where he planned to board a train to Turkey and then head to Syria. Hubbard was arrested on July 21, 2016, at Miami International Airport prior to the first leg of his overseas trip. Jackson, who had driven Hubbard to the airport, was arrested after he left the airport premises. Christian was arrested at his place of work.
A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, the defendants face a statutory maximum sentence of 20 years in prison for the material support charge. Christian faces a statutory maximum sentence of 10 years in prison if convicted on the charge of being a felon in possession of a firearm. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The FBI and JTTF investigated the case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives; Transportation Security Administration; Miami International Airport Police Department; Boca Raton, Florida, Police Department; Palm Beach Sheriff’s Office; and City of West Palm Beach Police Department. This case is being prosecuted by Assistant U.S. Attorneys Karen E. Gilbert, Brian K. Frazier and Edward C. Nucci and Trial Attorneys Larry Schneider and David Cora of the National Security Division’s Counterterrorism Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Florida Men Charged with Conspiring and Attempting to Provide Material Support to ISILRead the Press Release
Three Palm Beach County, Florida, residents were charged with conspiring and attempting to support the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and members of the South Florida Joint Terrorism Task Force (JTTF) made the announcement.
Gregory Hubbard, aka Jibreel, 52, of West Palm Beach, Florida; Darren Arness Jackson, aka Daoud, 50, also of West Palm Beach; and Dayne Atani Christian, aka Shakur, 31, of Lake Park, Florida, were charged by a criminal complaint with knowingly conspiring and attempting to provide material support and resources to ISIL. Christian was also charged with being a felon in possession of a firearm. The detention hearing will take place on July 27, 2016, and the defendants will be arraigned on Aug. 5, 2016.
“According to the complaint, these defendants conspired and attempted to provide material support to ISIL and one of the defendants was arrested attempting to travel overseas to join and fight for the deadly terrorist organization,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is countering terrorist threats, and we will continue to work to stem the flow of foreign fighters abroad and bring to justice those who conspire and attempt to provide material support to designated foreign terrorist organizations.”
“Individuals seeking to travel and take up arms with ISIL pose a threat to the United States and humanity across the globe,” said U.S. Attorney Ferrer. “The U.S. Attorney’s Office, the FBI and the Joint Terrorism Task Force continue to work proactively in order to stifle and disrupt any potential danger posed by the terrorist organizations and their supporters.”
“Terrorism-related arrests such as this serve to remind us of the importance of being vigilant,” said Special Agent in Charge Piro. “When you see something that doesn't seem right, report it to law enforcement. Fighting terrorism is the FBI’s number one priority. Any information that can put us on the trail of individuals intent on terrorist acts is valuable.”
According to the allegations contained in the complaint, Hubbard expressed support for ISIL and told an FBI confidential human source (CHS) that he wanted to travel to Syria and join ISIL for the purpose of engaging in violent jihad. Hubbard introduced the CHS to Christian and Jackson, both of whom provided weapons and firearms instruction to Hubbard and the CHS, whom they understood were preparing to travel overseas to join and fight for ISIL.
The complaint further alleges that Jackson and Christian also expressed a desire to join ISIL. Hubbard purchased an airplane ticket to Germany, where he planned to board a train to Turkey and then head to Syria. Hubbard was arrested on July 21, 2016, at Miami International Airport prior to the first leg of his overseas trip. Jackson, who had driven Hubbard to the airport, was arrested after he left the airport premises. Christian was arrested at his place of work.
A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, the defendants face a statutory maximum sentence of 20 years in prison for the material support charge. Christian faces a statutory maximum sentence of 10 years in prison if convicted on the charge of being a felon in possession of a firearm. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The FBI and JTTF investigated the case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives; Transportation Security Administration; Miami International Airport Police Department; Boca Raton, Florida, Police Department; Palm Beach Sheriff’s Office; and City of West Palm Beach Police Department. This case is being prosecuted by Assistant U.S. Attorneys Karen E. Gilbert, Brian K. Frazier and Edward C. Nucci and Trial Attorneys Larry Schneider and David Cora of the National Security Division’s Counterterrorism Section.
Three Additional Defendants Indicted in Multimillion-Dollar Text Messaging Consumer Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the unsealing of a superseding indictment (the “Indictment”) charging three additional defendants, FRASER THOMPSON, EUGENI TSVETNENKO, a/k/a “Zhenya,” and FRANCIS ASSIFUAH, a/k/a “Francis Assif,” for their participation in a scheme to charge mobile phone customers millions of dollars in monthly fees for unsolicited, recurring text messages without the customers’ knowledge or consent – a practice known as “auto-subscribing.” THOMPSON, who was the Executive Vice President of Operations at a mobile aggregation company based in the United States (the “U.S. Mobile Aggregator”), was arrested this morning in California, and is expected to be presented today in federal court in Los Angeles before United States Magistrate Judge Jean P. Rosenbluth. TSVETNENKO, who ran at least two different digital content providers based in Australia (collectively, the “Australia Content Providers”), resides in Australia and has not yet been arrested. ASSIFUAH, who ran a digital content provider based in the United States (“U.S. Content Provider-2”), was previously charged in a criminal complaint and was arrested on April 28, 2016. Also named in the Indictment were DARCY WEDD, CHRISTOPHER GOFF, MICHAEL PEARSE, YONGCHAO LIU, a/k/a “Kevin Liu,” and YONG JASON LEE, a/k/a “Jason Lee,” all of whom were previously charged for their respective roles in the scheme.
According to the allegations contained in the Indictment unsealed today in Manhattan federal court:[1]
The Auto-Subscription Scheme
From 2011 through 2013, WEDD, THOMPSON, GOFF, PEARSE, LIU, LEE, TSVETNENKO, ASSIFUAH and other co-conspirators engaged in a multimillion-dollar scheme to defraud consumers by placing unauthorized charges for premium text messaging services on consumers’ cellular phone bills, without the consumers’ knowledge or consent, through a practice known as “auto-subscribing.”
During the relevant time period, LEE and two other co-conspirators (“CC-1” and “CC-2”) worked for a digital content provider based in the United States that offered premium text messaging services to mobile phone customers (“U.S. Content Provider-1”). WEDD, THOMPSON, GOFF, and two other co-conspirators (“CC-3” and “CC-4”) worked for the U.S. Mobile Aggregator. PEARSE and LIU worked for a mobile aggregator based in Australia (the “Australian Mobile Aggregator”). TSVETNENKO ran the Australia Content Providers, and ASSIFUAH ran U.S. Content Provider-2. Mobile aggregators compile, or “aggregate,” charges for premium text messaging services – such as monthly horoscopes, celebrity gossip, and trivia facts – on consumers’ mobile phone bills.
In 2011, CC-1 decided to begin auto-subscribing mobile phone users to U.S. Content Provider-1’s premium text messaging services in order to boost U.S. Content Provider-1’s sagging revenues. CC-1 approached PEARSE and LIU and asked them to build a computer program that could spoof the required consumer authorizations for premium text messaging services – i.e., a program that could generate the text message correspondence that one would ordinarily see if a consumer was genuinely signing up to receive the services. PEARSE and LIU agreed to build the program (the “Auto-Subscription Platform”), which was operational by in or about the middle of 2011. In July 2011, CC-1 approached GOFF, who was the account manager for U.S. Content Provider-1 at the U.S. Mobile Aggregator, in order to obtain a large volume of mobile phone numbers to run through the Auto-Subscription Platform. GOFF sent CC-1 hundreds of thousands of phone numbers, in exchange for payment, for the purpose of auto-subscribing consumers.
In October 2011, CC-1 met with WEDD and told him, in sum and substance, that CC-1 wanted to auto-subscribe consumers through the U.S. Mobile Aggregator’s billing platform and needed additional phone numbers to do so. WEDD agreed to assist CC-1 in exchange for an up-front payment of approximately $100,000 and a percentage of the auto-subscription proceeds. WEDD further told CC-1, in sum and substance, that CC-3, who was the Vice President of Compliance and Consumer Protection for the U.S. Mobile Aggregator, would provide phone numbers to CC-1 and that all payments needed to go through CC-3. WEDD later received his portion of the payments from CC-1 via CC-3.
After CC-1 received phone numbers from WEDD and CC-3, CC-1 passed them on to LEE, the Chief Technology Officer of U.S. Content Provider-1, who was responsible for verifying that the numbers were still valid and active, and for sorting and filtering the numbers to make it easier to run them through the Auto-Subscription Platform. After LEE performed these functions, CC-1 sent the numbers to PEARSE and LIU to be run through the Auto-Subscription Platform.
In early 2012, CC-4 approached CC-3 and asked to participate in the auto-subscription scheme. CC-4 told CC-3, in sum and substance, that CC-4 was friends with ASSIFUAH, and proposed that CC-4 and CC-3 begin auto-subscribing customers with ASSIFUAH and U.S. Content Provider-2. Shortly thereafter, ASSIFUAH began auto-subscribing consumers to phone numbers he had been given by CC-3 and CC-4 through the U.S. Mobile Aggregator. In total, ASSIFUAH received over $600,000 in gross payments from the U.S. Mobile Aggregator, a significant portion of which came from auto-subscription proceeds.
Also in early 2012, WEDD, THOMPSON, CC-3, and CC-4 had discussions about how to increase revenues at the U.S. Mobile Aggregator, which were flagging because premium text-messaging services had become less profitable. Among other things, WEDD, THOMPSON, CC-3, and CC-4 agreed to allow TSVETNENKO to begin auto-subscribing consumers through the U.S. Mobile Aggregator. By no later than April 2012, TSVETNENKO had started auto-subscribing consumers. Over the course of the next several months through mid-2013, TSVETNENKO and the Australian Content Providers auto-subscribed hundreds of thousands of phone numbers through the U.S. Mobile Aggregator, and generated millions of dollars of revenue, which the defendants apportioned among themselves and were used to fund a lavish lifestyle of expensive vacations and gambling.
* * *
WEDD, THOMPSON, GOFF, PEARSE, LIU, LEE, TSVETNENKO, and ASSIFUAH are each charged with one count of conspiracy to commit wire fraud and mail fraud, and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison. WEDD, THOMPSON, GOFF, PEARSE, TSVETNENKO, and ASSIFUAH are also each charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of the Internal Revenue Service, Criminal Investigation Division and the Federal Bureau of Investigation, and expressed his sincere gratitude to the Federal Trade Commission for their support and assistance with the investigation. He also thanked the U.S. Attorney’s Office for the Central District of California and U.S. Attorney’s Office for the District of Nevada for their help in coordinating the arrests of the defendants.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit.Assistant U.S. Attorneys Christian R. Everdell and Sarah E. Paul are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
St. Francis Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man convicted of Assaulting, Resisting, Opposing, and Impeding a Federal Officer was sentenced on July 19, 2016, by U.S. District Judge Roberto A. Lange.
James Two Charger, Jr., age 24, was sentenced to 15 months in custody, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Two Charger was indicted by a federal grand jury on March 15, 2016. He pled guilty on April 26, 2016.
The conviction stemmed from an incident on March 1, 2016, when law enforcement was notified of a domestic dispute between Two Charger and his girlfriend. An officer with the Rosebud Sioux Tribe Law Enforcement Services (RSTLES) located Two Charger driving a vehicle near St. Francis, and attempted to pull Two Charger’s vehicle over. Two Charger began driving evasively and fled the area. A car chase ensued and Two Charger drove at speeds of up to 100 miles per hour. He eventually lost control of the vehicle on a gravel road and crashed into a ditch.
Two Charger exited the vehicle and ran into a tree belt, where the officer followed on foot. When the officer attempted to arrest Two Charger, he grabbed for the officer’s gun holster. The officer was able to deploy pepper spray at Two Charger’s face. Two Charger then began to punch the officer in the side and abdomen.
Two other officers from RSTLES responded and assisted in arresting Two Charger. Two Chargers became aggressive with the officers and began yelling and kicking at the officers, spitting at one of the officers’ face. The officers transported Two Charger to the Adult Correctional Facility in Rosebud.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Two Charger was immediately turned over to the custody of the U.S. Marshals Service.
Southwest Harbor Man Sentenced to Six Months in Prison for Felony OUIRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Justin Bent, 29, of Southwest Harbor, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to six months in prison as well as three years of supervised release and ordered to pay a total of $2,520 in fines, special assessments and court costs for operating under the influence of alcohol and causing serious bodily injury in Acadia National Park. He was also convicted of operating a vehicle without due care and destroying trees and other natural resources. Bent previously pled guilty to these offenses on February 22, 2016.
Court records reveal Bent drove off of a roadway and crashed a van into trees at the Park in May of 2014, seriously injuring a passenger in his vehicle. Court records also indicated the passenger was transported by life flight to Eastern Maine Medical Center in Bangor where he underwent emergency surgery for a bone fracture.
The investigation was conducted by National Park Service Rangers as well as the police departments of Southwest Harbor and Mount Desert Island.
Sioux Falls Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on July 19, 2016, by U.S. District Judge Roberto A. Lange.
Michael Lovejoy, Jr., age 33, was sentenced to 12 months and one day in custody, followed by 5 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Lovejoy was indicted by a federal grand jury on March 15, 2016. He pled guilty on April 26, 2016.
Lovejoy was convicted in state court in 2003 for Third Degree Rape. He was sentenced to a suspended sentenced and placed on five years of probation. Lovejoy violated, and his original five-year sentence was imposed. He is required to register as a sex offender for 25 years following his conviction and to update his registration within three business days of relocating or changing employment.
The current conviction stemmed from Lovejoy’s failure to update his registration when he moved out of his residence in Sioux Falls, and moved to the Cherry Creek Community on the Cheyenne River Reservation. Lovejoy did not update his sex offender registration between November 2015 and February 2016.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
Lovejoy was immediately turned over to the custody of the U.S. Marshals Service.
Schenectady Heroin Dealer Sentenced to 60 MonthsRead the Press Release
ALBANY, NEW YORK – Jorge Rivas-Rivera, age 47, of Schenectady, New York, was sentenced today to serve 60 months in prison after being convicted of distributing heroin.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
U.S. District Judge Mae A. D’Agostino also sentenced Rivas-Rivera to serve 6 years of supervised release, to begin upon his release from prison.
On March 24, Rivas-Rivera pled guilty to selling heroin in Schenectady in May and July 2014.
This case was investigated by the DEA and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Rockwall, Texas, Man Sentenced to 50 Years in Federal Prison for Producing, Transporting and Possessing Child PornographyRead the Press Release
DALLAS — Christian C. Winchel, 49, of Rockwall, Texas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to serve a total of 50 years in federal prison, and pay more than $1.4 million in restitution, following his guilty plea to multiple child pornography offenses involving prepubescent child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Winchel has been in custody since his arrest on a related federal criminal complaint in early February 2015. He pleaded guilty in September 2015 to one count of production of child pornography, one count of transporting and shipping child pornography, and one count of possession of prepubescent child pornography
According to the factual resume filed in the case, Winchel began downloading child pornography in approximately 1994. He admitted that he thought he would be able to trade child pornography with others if he produced his own material. Winchel had access to an 18-month-old child, and he took sexually explicit photos of himself with the child. He also admitted using a spy cam to capture minor girls using the bathroom when they were in his home and a nanny cam to capture minor girls in various stages of undress in his home.
Winchel moved to Rockwall from Indiana in 2013, transporting the videos he had recorded of minor girls from Indiana to Texas. He admitted that when children visited for sleepovers at his home in Rockwall, he filmed himself engaging in sexually explicit activity while in proximity of the minor children who were asleep.
Law enforcement executed a search warrant at Winchel’s residence in February 2015 and seized several media items. An IT specialist, Winchel had used his computer skills to try to mask his computer from law enforcement.
The forensic analysis, however, revealed that Winchel’s collection of child pornography, which he had categorized and organized, was approximately two terabytes in size. Law enforcement further determined that some of the images and a video Winchel had involving an eight-year-old minor victim were produced in late July 2014. Law enforcement found evidence that Winchel produced child pornography and images and videos of five minor victims.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
The FBI’s Dallas Child Exploitation Task Force conducted the investigation. Assistant U.S. Attorney Camille Sparks prosecuted the case.
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