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22 July 2016
Redlands Gang Member Found Guilty in Federal Court of Methamphetamine Trafficking and Illegal Gun Possession ChargesRead the Press Release
LOS ANGELES — A federal jury has returned guilty verdicts against a previously convicted felon from Redlands who attempted to distribute over three pounds of methamphetamine and illegally possessed various firearms, including a sawed-off shotgun and an AK-47-type rifle without a serial number.
Daniel Chavez Jr, 40, was found guilty late yesterday afternoon of six felony offenses, including distributing methamphetamine, possession with the intent to distribute methamphetamine, possession of a firearm with an obliterated serial number, possessing an unregistered firearm, and being a felon in possession of firearms and ammunition. Chavez had previously been convicted in state court of felony of possession of methamphetamine for sale, which made him ineligible to possess firearms or ammunition.
“Those trafficking illegally in narcotics and firearms pose a serious danger to the community, and those doing so after being convicted of the same conduct deserve the special attention of law enforcement,” said United States Attorney Eileen M. Decker. “Mr. Chavez did not hesitate to agree to sell a significant quantity of methamphetamine and firearms to someone he barely knew. These convictions should ensure that Mr. Chavez will not be able to threaten our neighborhoods again for at least two decades.”
According to the evidence presented at trial, Chavez sold a pound of methamphetamine and the AK-47-type rifle in a mall in Riverside in June 2015 to a confidential informant working with the Bureau of Alcohol, Tobacco, Firearms, and Explosives. In a second transaction in Redlands in July 2015, Chavez sold four more firearms and more than 100 rounds of assorted ammunition The jury also heard evidence that Chavez agreed to sell 1,051.3 grams (about 2⅓ pounds) of methamphetamine to the informant, but he was arrested before the transaction could take place.
When Chavez was arrested on August 21, 2015 in a parking lot in San Bernardino, law enforcement executed a search warrant at his residence and recovered six firearms, including an unregistered sawed-off shotgun, and a collection of ammunition that weighed approximately 150 pounds.
“Prioritizing investigations like this ensures repeat offenders are taken off our streets,” said ATF Special Agent in Charge Eric D. Harden. “ATF’s focus is protecting the public by removing the most dangerous felons from our communities and seeking the highest sentence possible.”
The jury convicted Chavez after a three-day trial in United States District Court.
After the jury returned its verdicts yesterday, United States District Judge Virginia A. Phillips scheduled a sentencing hearing on November 7. At sentencing, Chavez will face a 20-year mandatory minimum sentence due to his prior drug trafficking conviction, and he will face a statutory maximum sentence of life in federal prison.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Scott Paetty and Special Assistant United States Attorney Stephen Merrill.
Queens Father and Son Convicted at Trial for Their Participation in A Transnational Cocaine Trafficking OperationRead the Press Release
This afternoon, following a two week trial, a federal jury in Brooklyn, New York, returned a guilty verdict against Gregorio and Angelo Gigliotti for their operation of a transnational cocaine trafficking operation that stretched from Italy, to Queens and to Costa Rica. Gregorio Gigliotti was also convicted of possessing a stash of firearms in connection with the operation. When sentenced by United States District Judge Raymond J. Dearie, the defendants face a maximum sentence of life imprisonment. Gregorio Gigliotti faces a mandatory minimum sentence of 15 years in prison, and Angelo Gigliotti faces a mandatory minimum sentence of 20 years in prison.
The verdict was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York; and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
“This case serves as a powerful example of the impact of international cooperation in combatting criminal organizations whose activities transcend national borders,” stated United States Attorney Capers. Mr. Capers thanked our law enforcement partners in Italy, including the Prosecutor of the Republic of Reggio Calabria; the Italian National Police (INP), and in particular, the Squadra Mobile of Reggio Calabria and the Servizio Centrale Operativo; the Direzione Centrale per i Servizi Antidroga; and the Direzione Nazionale Antimafia, as well as our law enforcement partners in Costa Rica, including the Organismo de Investigacion Judicial. Mr. Capers also expressed his gratitude to the U.S. Department of Justice Attaché and the Offices of the HSI and FBI Legal Attaché at the U.S. Embassy in Rome, as well as the FBI Legal Attaché at the U.S. Embassy in Panama City, who coordinated extensive evidence-sharing and coordinated operations. Mr. Capers also thanked the New York City Police Department and the Drug Enforcement Administration for their assistance in this matter.
“This family run business served more than just pizza to its customers, using store fronts like a pizzeria to import large amounts of cocaine,” said HSI New York Special Agent-in-Charge Melendez. “Like father like son, both of these defendants will likely be spending the next several years in jail.”
“This case has sentiments of the famous Pizza Connection case- an organized crime family running a narcotics trafficking ring fronted from a family restaurant in New York. Today’s guilty verdict matches the past. We are pleased to say that another organized crime enterprise’s attempt at evading law enforcement has been disrupted. We thank our law enforcement partners here, in Italy and Costa Rica for their continued cooperation,” stated FBI Assistant Director-in-Charge Rodriguez.
Evidence presented at trial - including court-authorized wiretaps and physical surveillance - revealed that Gregorio Gigliotti, together with his wife, owned and operated several businesses in New York City that were used to facilitate their narcotics-trafficking operation, including Cucino Amodo Mio, an Italian restaurant and pizzeria in Corona, Queens, and Fresh Farm Produce Export Corp., an import company. Their son, Angelo Gigliotti, played the role of Gregorio’s trusted assistant, including handling the drug trafficking operation when Gregorio was out of the country. In October 2014, law enforcement intercepted a shipment of cassava (a starchy root also referred to as yucca) that was shipped to the United States from Costa Rica and bound for Fresh Farm Produce Export Corp. in New York. The shipment was found to contain approximately 40 kilograms of cocaine secreted inside cardboard boxes of cassava. Earlier, Gigliotti’s wife traveled to Costa Rica with more than $360,000 in cash that she delivered to the sources of supply. In September 2014, Franco Fazio, a relative and Italian national, traveled from Italy to New York and then to Costa Rica to deliver another $170,000 in cash to the sources of supply.
In December 2014, law enforcement intercepted a second shipment of cassava bound for Fresh Farm Produce Export Corp. in New York that had also been shipped from Costa Rica and seized approximately 15 kilograms of cocaine secreted within the cardboard boxes of the produce. Prior to the arrival of this shipment of cocaine, Fazio had made two additional trips to Costa Rica to meet with the sources of supply.
The Gigliotti defendants were arrested on March 11, 2015, in New York. That same day, law enforcement searched Cucino Amodo Mio as well as Gregorio and his wife’s residence. In the restaurant they seized one 12 gauge shotgun, one loaded .357 magnum Trooper revolver, one loaded .22 caliber Colt pistol, one.38 caliber Charter Arms revolver, one 9 mm Keltec pistol, one .762 Czech pistol, one .38 caliber Derringer that had a defaced serial number, ammunition magazines, loose ammunition, two handgun holsters, brass knuckles, more than $100,000 in cash, and a drug ledger detailing the disbursement of money made on the sale of narcotics. In the Gigliotti residence, agents recovered a loaded handgun and more than $18,000 in cash.
The charges in the indictment against co-defendants Eleonora Gigliotti and Franco Fazio remain pending. These charges are merely allegations, and these defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Margaret E. Gandy and Keith D. Edelman are in charge of the prosecution.
The Defendants:
GREGORIO GIGLIOTTI
Age: 60
Queens, New YorkANGELO GIGLIOTTI
Age: 36
Queens, New York
E.D.N.Y. Docket No. 15-CR-204 (S-2) (RJD)Prefered Imaging, LLC to Pay $3,510,000 to Resolve False Claims Act AllegationsRead the Press Release
DALLAS — Preferred Imaging, LLC, (Preferred Imaging), a provider of diagnostic imaging services, has agreed to pay $3,510,000 to resolve allegations that it improperly billed Medicare and Medicaid for services performed without proper medical supervision in violation of the False Claims Act and the Texas Medicaid Fraud Prevention Act. Preferred Imaging cooperated with the investigation and, by settling, did not admit any wrongdoing or liability. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Preferred Imaging operates independent diagnostic facilities (IDTFs) in Texas, Illinois, and Kansas. Certain procedures performed by IDTFs, such as procedures involving the administration of contrast dye, must be supervised by an on-site physician. The settlement resolves allegations that Preferred Imaging submitted claims to Medicare, Medicaid, and TRICARE for procedures that were performed between January 2009 and February 2015 without a supervising physician on-site.
“The requirement that certain services are supervised by a physician is in place to protect Medicare and Medicaid patients,” said U.S. Attorney Parker. “This settlement clearly reflects our commitment to hold facilities responsible for failing to ensure that those requirements are satisfied.”
The settlement resolves allegations filed by relator Tracy Sifuentes, a former employee of Preferred Imaging, under the qui tam or whistleblower provisions of the FCA and TMFPA, which authorize private parties to sue for fraud on behalf of the United States and State of Texas and share in the recovery. The relator will receive $596,700.
The investigation was conducted by Health and Human Services Office of Inspector General, Defense Criminal Investigative Services, and the Texas Attorney General's Civil Medicaid Fraud Division. The case was handled by Assistant U.S. Attorney Lisa-Beth C. Meletta.
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Pittsburgh-area Woman Admits Setting House Fire then Defrauding Insurance CompanyRead the Press Release
PITTSBURGH - An Allegheny County resident pleaded guilty in federal court to charges of malicious destruction of property by fire and wire fraud, United States Attorney David J. Hickton announced today.
Andrea Forsythe, 27, of Oakdale, Pa. pleaded guilty to two counts before Senior United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the Court was advised that Forsythe set fire to a residential structure located in Sturgeon, Pa., which structure was a rental home where she had been residing, so that she could obtain money from the insurance company which provided coverage on that structure. The wire fraud charge states Forsythe engaged in a scheme to defraud Nationwide Insurance company in connection with the claim she made for the fire loss on or about June 20, 2014.
Judge McVerry scheduled sentencing for Oct. 21, 2016. The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Forsythe will remain in custody pending sentencing.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation that led to the prosecution of Forsythe.
Pittsburgh Man Sentenced to 21 Months in Prison for Role in Drug ConspiracyRead the Press Release
PITTSBURGH – Marquese Underwood, 21 of Pittsburgh, was sentenced to 21 months in federal prison for conspiring to distribute heroin while under court supervision for a prior offense, United States Attorney David J. Hickton announced today.
United States District Court Judge Nora Barry Fischer imposed the sentence. Underwood was ordered to serve three years of supervised release following the prison term.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration and the Pittsburgh Bureau of Police led the multi-agency investigation of this case that also included the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security/Homeland Security Investigations, the United States Marshals Service, the Pennsylvania State Police, the Scott Township Police Department, the Munhall Police Department, the Baldwin Police Department, and the Pleasant Hills Police Department. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pike County Man Sentenced to 210 Months in Federal Prison for Receipt of Child PornographyRead the Press Release
Montgomery, Alabama – Douglas Edward Hale ,39, a resident of Troy, Alabama, was sentenced Thursday, July 21, 2016, to 210 months (17 ½ years) in federal prison for receipt of child pornography, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
Hale had previously pleaded guilty to one count of receipt of child pornography on March 11, 2016. A receipt of child pornography charge carries a 240 month maximum sentence.
The charge stemmed from Hale’s collection of child pornography that contained images of child sexual abuse. Images on Hale’s computer were sent to him by a victim that the he knew was under the age of 18. Evidence further showed that Hale requested the images from the victim despite the knowledge of the victim’s age.
In addition to the 210 months, Chief United States District Judge Joel F. Dubina ordered that Hale be supervised for life following his release from federal prison. Hale remains in the custody of the United States Marshals Service pending placement by the Federal Bureau of Prisons.
This case was investigated by Troy Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Hollie Worley prosecuted the case.
Pierre Man Sentenced for Falsification of Financial RecordsRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pierre, South Dakota, man charged with Falsification of Financial Records Required to Be Kept by Labor Unions pled guilty and was sentenced on July 14, 2016, by U.S. Magistrate Judge Mark A. Moreno.
Kenneth Potter, age 49, was sentenced to one year of probation, and $25 to the Federal Crime Victims Fund.
The conviction stemmed from an incident that took place between July 1, 2013, and September 30, 2014, in Pierre, when Potter, who was an employee of the South Dakota Education Association and was a member of the National Staff organization, South Dakota Staff Organization (SDSO), which have collective bargaining agreements with the U.S. Department of Labor, issued 13 unauthorized checks, and made 3 unauthorized cash withdrawals, for a total of $4,130.
At the time of the offense, Potter was the Treasurer of the SDSO. As treasurer, Potter’s duties included making true and accurate entries in the unions records, and filing reports with the U.S. Department of Labor.
These unauthorized expenses created a loss in the SDSO accounts, which were reported to the National Staff Organization. The SDSO had an audit preformed of the books, which confirmed the theft by Potter.
The investigation was conducted by the Department of Labor. The case was prosecuted by Assistant U.S. Attorney Meghan N. Dilges.
Philadelphia Man Charged with Wire FraudRead the Press Release
Andrew Heineman, 30, of Philadelphia, PA, was charged yesterday by Information1 with multiple counts of wire fraud, announced United States Attorney Zane David Memeger. The indictment alleges that in April 2015 through August 2015, Heineman stole money from his employer, Genji Sushi, by issuing unauthorized checks to himself and depositing them into his personal bank account. Some of these ill-gotten funds purchased a Chevrolet Tahoe, which has since been seized by the government.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Denise S. Wolf.
1An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Payette Man Sentenced to Seven Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
BOISE – John Vernon McLeod, 36, of Payette, Idaho, was sentenced yesterday to 87 months in prison and four years of supervised release for conspiracy to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered McLeod to forfeit $1,600 in drug proceeds. McLeod pleaded guilty on April 26, 2016.
According to evidence presented in court, McLeod and co-defendant Ross Eugene Miller, 30, of Fruitland, Idaho, conspired to distribute methamphetamine in the state of Idaho between May 28, 2015, and June 18, 2015. McLeod and Miller arranged for two separate deliveries of methamphetamine in the Payette and Fruitland, Idaho, area. Investigating officers discovered the conspiracy and were able to intervene. Miller was sentenced on March 7, 2016, to 36 months in prison for his role in the conspiracy.
The case was investigated by the High Desert Task Force, a collaboration of law enforcement agencies from Payette County Sheriff’s Office, Payette Police Department, Fruitland Police Department, Washington County Sheriff’s Office, Weiser Police Department, Malheur County Sheriff’s Office, Ontario Police Department, and the Nyssa Police Department.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
New Orleans Man Pleads Guilty to Mail Fraud in Aftermath of BP Oil SpillRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KEVIN RICHARD, age 26, of New Orleans, pleaded guilty yesterday to engaging in mail fraud for his role in submitting a fraudulent application for disaster assistance money in the aftermath of the Deepwater Horizon oil spill.
According to court documents, the Gulf Coast Claims Facility (GCCF) made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion that occurred on April 20, 2010. The GCCF offered multiple types of claims related to the Deepwater Horizon incident for which it would issue payment. One of the types of claims offered by the GCCF was a “Quick Payment Final Claim,” which provided that a claimant who had received a prior EAP or Interim Payment from GCCF could receive, without further documentation of losses caused by the BP oil spill, a one-time final payment of $5,000 for individuals and $25,000 for businesses. Claimants seeking a Quick Payment were required to submit with their claim form a “Release and Covenant Not to Sue.” To be eligible to receive funds via a Quick Payment Final Claim, an applicant had to previously submit a successful (i.e., paid) initial claim containing proof of costs, damages, and other losses incurred as a result of the oil discharges due to the Deepwater Horizon incident.
On November 3, 2010, RICHARD applied for disaster assistance funds, representing that he worked as a cook for New Orleans Paddlewheels, Inc. at the time of the oil spill. In fact, RICHARD was not employed by New Orleans Paddlewheels, Inc. at all. As a result of this, and other, fraudulent representations, the GCCF sent a check in the amount of $21,000.00 to RICHARD, which he cashed at a Whitney National Bank branch in New Orleans. Subsequently, on January 3, 2011, RICHARD completed, signed, and mailed to the GCCF a Quick Payment Final Claim Form seeking an additional payment of $5,000, which the GCCF issued on January 14, 2011. RICHARD cashed this check on January 18, 2011.
RICHARD faces a maximum term of imprisonment of not more than twenty years, followed by up to three years of supervised release, and a $250,000 fine. U.S. District Judge Eldon E. Fallon set sentencing for October 27, 2016. RICHARD was remanded to the custody of U.S. Marshals following a recent bond revocation.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
United States Attorney Polite praised the work of the United States Secret Service in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
New Orleans Man Pleads Guilty to Drug and Gun ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARION TINSON, age 34, of New Orleans, pleaded guilty today to two counts of an Indictment charging violations of the Federal Controlled Substances Act and the Federal Gun Control Act.
According to court documents, during a search of a residence where TINSON was living, agents located approximately two ounces of heroin in a bedroom, as well as a stolen Taurus .45 semi-automatic pistol in close proximity to the suspected heroin. Additionally, agents seized a scale, suspected marijuana, and approximately $2,000.00 in U.S. currency in the nightstand of the master bedroom. TINSON admitted that the heroin and gun were his during post arrest interviews. TINSON pled guilty to possession with the intent to distribute a mixture or substance containing a detectable amount of heroin, a Schedule I controlled substance, and possession a firearm in furtherance of his drug trafficking.
TINSON faces up to 20 years in prison on the drug trafficking charge, a fine of up to $1,000,000, and at least three years of supervised release following any term of imprisonment. The gun charge carries a mandatory minimum additional 5 years in prison that must run consecutive to any other sentence. U.S. District Judge Kurt D. Engelhardt set sentencing for October 26, 2016.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
New Castle Man Sentenced to 5 Years in Prison for Conspiring to Distribute Crack CocaineRead the Press Release
PITTSBURGH – A Lawrence County resident has been sentenced in federal court to five years’ imprisonment on his conviction of conspiracy to distribute 28 grams or more of crack cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Melvin Dorsey-Pace, 23, of New Castle, Pa.
According to information presented to the Court, in 2015, the Bureau of Alcohol, Tobacco Firearms and Explosives, the Drug Enforcement Administration, and other agencies joined forces in a long-term wiretap investigation of drug trafficking in New Castle. The investigation revealed that Melvin Dorsey-Pace conspired with others to possess with intent to distribute and distribute crack cocaine which was transported from Buffalo, NY, to the New Castle area for further distribution.
Prior to imposing sentence, Judge Fischer stated that the sentence was not greater than necessary to fulfill the purposes of sentencing.
Assistant United States Attorneys Jonathan B. Ortiz and Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the New Castle Police Department, and the Lawrence County Drug Task Force for the investigation leading to the successful prosecution of Dorsey-Pace.
New Britain Man Sentenced to 5 Years in Federal Prison for Role in Cocaine Trafficking RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HECTOR ROMAN, 30, of New Britain, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 60 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, ROMAN participated in a drug trafficking organization that shipped kilogram quantities of cocaine in the mail from Puerto Rico for distribution in central Connecticut and western Massachusetts. ROMAN retrieved multiple shipments of cocaine from the addresses to which they were sent and provided a storage location for those narcotics at his residence. Over the course of approximately one year, he was responsible for the receipt and storage of approximately 10 kilograms of cocaine.
ROMAN and a co-defendant, Melvin Rivera-Lopez, were arrested on January 15, 2015, after they traveled to the U.S. Post Office on Weston Street in Hartford to pick up a package that contained approximately 300 grams of cocaine.
The investigation revealed that Rivera-Lopez was the liaison with the cocaine source of supply in Puerto Rico.
On March 28, 2016, ROMAN pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 500 grams or more of cocaine.
Rivera-Lopez, 28, of Hartford, pleaded guilty to the same charge and, on June 27, 2016, was sentenced to 65 months of imprisonment.
This matter is being investigated by the Drug Enforcement Administration’s Hartford Task Force, U.S. Postal Inspection Service, Connecticut State Police and New Britain Police Department. The Task Force includes personnel from the Bristol, Hartford, East Hartford, Manchester, New Britain, Wethersfield and Willimantic Police Departments. This case is being prosecuted by Assistant U.S. Attorney S. Dave Vatti.
Natchitoches man sentenced to more than 17 years in prison for methamphetamine, firearm possessionRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that a Natchitoches man was sentenced Wednesday to 211 months in prison for possessing methamphetamine and a firearm.
Harold Jumale Anderson, 42, of Natchitoches, La., was sentenced by U.S. District Judge Dee D. Drell to 151 months in prison on one count of possession of methamphetamine with intent to distribute and 60 months on one count of possession of a firearm in furtherance of drug trafficking. He was also sentenced to five years of supervised release. According to the April 26, 2016 guilty plea, law enforcement agents conducted a controlled buy of methamphetamine using a confidential informant on August 18, 2015, in Alexandria. After his arrest, Anderson’s residence was searched, and agents found more than 500 grams of methamphetamine, a loaded Ruger 9 mm handgun and additional ammunition in his bedroom.
The FBI and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney Allison D. Bushnell prosecuted the case.
Moreno Valley Man Found Guilty of Advertising Pornographic Images of Toddlers and Infants in Online ChatroomRead the Press Release
LOS ANGELES – A federal judge has convicted a Moreno Valley man of advertising child pornography in a members-only online chatroom for people with a sexual interest in infants and toddlers.
Angelo Harper Jr., 21, was found guilty yesterday afternoon of advertising child pornography, a crime that carries a mandatory minimum sentence of 15 years in federal prison.
Harper was found guilty by United States District Judge R. Gary Klausner, who presided over a two-day bench trial. After issuing his verdict, Judge Klausner scheduled a sentencing hearing for October 17.
On July 12, Harper pleaded guilty to distributing child pornography and possession of child pornography. On that same day, he waived his right to a jury trial on the remaining advertising charge, which led to this week’s bench trial before Judge Klausner.
The evidence presented at trial showed that Harper used the Kik Messenger social media platform to access a chatroom for those interested in nepiophilia, which is a sexual interest in infants and toddlers. Last year, an agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations entered the chatroom using an undercover Kik account, and accessed several postings about child pornography – made by an individual later identified as Harper – which included images depicting child pornography and a link to an explicit video. At one point, Harper wrote: “I have tons of pics and vids of little boys and girls. Pm me for chat and trade of kids under 6 [winking face emoji].”
“Pedophiles continue to develop ways to exploit online technology so they can have a forum to share their deviant interests,” said United States Attorney Eileen M. Decker. “Law enforcement will continue to respond to the increased use of online platforms by vigorously investigating the dark corners of the Internet where criminals attempt to hide offenses like the trafficking and promotion of child pornography. Defendants like Harper endanger children by perpetuating a market for their victimization.”
As a result of the investigation, HSI agents obtained a search warrant for Harper’s residence. During the execution of the warrant on October 13, 2015, agents seized various digital devices that contained child pornography and Harper admitted to using Kik to transmit child pornography.
“Child pornography, when it’s released on the Internet, lives on forever,” said Joseph Macias, special agent in charge for HSI Los Angeles. “It haunts the innocent children whose abuse is depicted in the images, and brings unspeakable pain to their parents and families, knowing that untold strangers are exploiting their worst experiences for their own perverse pleasure. HSI will continue to work closely with its law enforcement partners across the country and around the globe to ensure that those who sexually exploit our children are brought to justice.”
When Harper is sentenced, he faces a mandatory minimum sentence of 15 years in federal prison and a statutory maximum penalty of 30 years for the advertising count.
In relation to the two counts to which he pleaded guilty, Harper faces a mandatory minimum sentence of five years, and a maximum sentence of 40 years in prison.
Therefore, for all three counts, Judge Klausner could sentence Harper to as much as 70 years in federal prison.
The investigation into Harper was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
This case was prosecuted by Assistant United States Attorneys George E. Pence and A. Carley Palmer of the General Crimes Section.
Mississippi Woman Sentenced to Prison for Possession of Unregistered ShotgunRead the Press Release
Jackson, Miss – Monica Vaughn, 42, of Lauderdale County, Mississippi, was sentenced by Senior U.S. District Judge William H. Barbour to 21 months in prison followed by three years of supervised release for possessing an unregistered short-barreled shotgun, U.S. Attorney Gregory K. Davis announced today. Vaughn was also ordered to pay a $1000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lauderdale County Sheriff’s office. It was prosecuted by Assistant United States Attorney Darren J. LaMarca.
Mission Man Sentenced for Possession of Pure MethRead the Press Release
CORPUS CHRISTI, Texas - A 38-year-old resident of Mission has been ordered to prison for 120 months following his conviction of possession with intent to distribute methamphetamine, announced U.S. Attorney Kenneth Magidson. Jose Manuel Ochoa pleaded guilty April 7, 2016.
Today, U.S. District Judge Nelva Gonzalez Ramos sentenced Ochoa to 10 years in federal prison to be immediately followed by five years of supervised release.
On Dec. 18, 2105, Ochoa drove a motor vehicle into the Falfurrias checkpoint for a primary inspection, after which a service K9 alerted to the presence of contraband coming from the vehicle. Authorities performed an x-ray examination and soon identified anomalies in the rear quarter panel. Eight bundles of methamphetamine were found inside, wrapped in foil and cellophane. Laboratory analysis determined the drugs weighed 2.8 kilograms and had a purity level of 99%.
Ochoa will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
The Drug Enforcement Administration and Border Patrol conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Mission Man Sentenced for Child Abuse and Distribution of Methamphetamine; Mission Woman Sentenced for Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of two counts of Child Abuse and one count of Distribution of Methamphetamine was sentenced on July 18, 2016, by U.S. District Judge Roberto A. Lange. Thereafter, Judge Lange also sentenced a Mission, South Dakota, woman for her role in the offense of Child Abuse.
Tyler Erickson, Sr., also known as TJ Erickson, age 33, was sentenced to a total of 20 years in prison, followed by 5 years of supervised release, and a special assessment of $300 to the Federal Crime Victims Fund.
Rae Dawn Lunderman, age 28, was separately sentenced to 10 months and 15 days in prison, followed by 3 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
On December 9, 2014, Erickson and Lunderman were indicted by a federal grand jury for second degree murder, assault resulting in serious bodily injury, and two child abuse offenses. Lunderman was accused of being an aider and abettor to the offenses. Lunderman pled guilty to a Superseding Information charging Child Abuse on September 28, 2015. Erickson pled guilty to a three-count Superseding Information charging two counts of Child Abuse and one count of Distribution of Methamphetamine on March 30, 2016.
Between at least January 2013 and December 2014, Erickson was using and abusing drugs, including marijuana, methamphetamine and prescription pills. He was also involved in selling methamphetamine on the Rosebud Sioux Indian Reservation to support his drug habit, as well as for profit. He was using methamphetamine on a daily basis and was often under the influence of methamphetamine. He was not sleeping regularly, staying up for days, and then crashing for long periods of time. Erickson was also acting aggressively towards those in his family. In the early summer of 2013, he was living with his girlfriend, Lunderman, and four of their children, but the family did not have consistently reliable housing. The family depended on various relatives for places to stay. By early July 2013, Erickson was reunited with two more biological children, five-year-old twins, who joined Erickson and Lunderman’s family.
As the summer progressed, Erickson’s behavior became more stressed and mean. He continued to act aggressively towards Lunderman, the children, and others, at times attempting to strike the children, and also threatening to harm Lunderman and the children. At some point between August 1 and August 10, 2013, Erickson admitted he slapped or hit one of his twin sons, who later died.
On August 10, 2013, that child was at his grandmother’s residence near Mission with his family, including Erickson, and the child had a large bruise on his abdomen and was ill. The child displayed increased irritability, progressive loss of activity, increased fussiness, and he had a bowel obstruction. Erickson did not take the child immediately to medical care, which increased the risk to the child. Eventually, at around 4:30 a.m. on August 11, 2013, the child vomited and collapsed, at which point Erickson attempted CPR and paramedics were summoned. Despite life-saving measures by ambulance personnel and medical professionals at the Rosebud I.H.S. Hospital, the child died.
The initial diagnosis was that a blood infection, or sepsis, had caused the death. An autopsy later revealed the child had died from blunt force trauma. The child had sustained trauma to his chest and abdomen, which included two lacerations of the liver, hemorrhaging around his kidney, and laceration of a portion of his intestine, along with other external bruising. As a result of the injuries, the child suffered blood accumulating in the space between the inner lining of the abdominal wall and the internal abdominal organs.
Based upon other circumstantial evidence, including other actions and threats to harm Lunderman and their children, the Government argued at sentencing that Erickson caused the death after stomping upon or kicking the child during a fit of anger. Erickson admitted he abused the child, but maintained he did not cause the fatal stomach injury, arguing the injuries were incurred as part of a fall off a vehicle.
Lunderman said that on August 12, 2013, the day after the child’s death, Erickson was at the same residence with his family when he physically intimidated and menaced the surviving twin child. She caught Erickson in the act of nearly stomping upon the surviving twin son, whom she shooed away from the area. Lunderman admitted she exposed all of the children to abuse by not alerting law enforcement authorities to the danger the children faced, as well as subjecting the children to danger by allowing them to be reared in an environment where drugs were rampant. Not until September 2014 did she properly intervene and remove the children from the situation. During their time together, Lunderman was also a victim of Erickson’s repeat domestic abuse.
The district court sentenced Erickson to 15 years in prison for child abuse of the deceased child, 2 years for child abuse of the surviving child, and 3 years for distributing methamphetamine. The Court ordered the sentences all served consecutively, for a total of 20 years.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. The Clinical Laboratory of the Black Hills conducted the autopsy. The FBI sought assistance and review of the investigation by a Pennsylvania biomechanical engineer. The Minnehaha County Coroner/Medical Examiner at Sanford Health Pathology in Sioux Falls also provided consultation services in review of the investigation. Supervisory Assistant U.S. Attorney Tim Maher and Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Erickson was immediately turned over to the custody of the U.S. Marshals Service to serve his sentence. Lunderman was given credit for time served and was released on court-ordered supervision.
Medical Device Manufacturer Acclarent Inc. to Pay $18 Million to Settle False Claims Act AllegationsRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that California-based medical device manufacturer Acclarent Inc., a subsidiary of Ethicon, a Johnson & Johnson company, has agreed to pay $18 million to resolve allegations that it caused health care providers to submit false claims to Medicare and other federal health care programs by marketing and distributing one of its products, the Relieva Stratus, for use as a drug delivery device without U.S. Food and Drug Administration (FDA) approval of that use.
“The FDA plays a fundamental role in ensuring the safety and efficacy of medical devices and drugs in this country,” said United States Attorney Carmen M. Ortiz. “Every time that patients receive a medical device or fill a prescription they should be able to take for granted that the FDA’s requirements have been met. We will vigorously pursue those who ignore or seek to circumvent these important patient protections.”
“The FDA approval process serves an important role in ensuring that federal health care participants receive devices that are safe, effective and medically appropriate,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will not permit companies to circumvent that process and put profits over patient safety.”
“The FDA's requirement for premarket approval of medical devices is designed to ensure the health and safety of patients,” said George M. Karavetsos, Director of the FDA Office of Criminal Investigations. “The FDA will continue to aggressively pursue those who place the public health at risk and compromise the integrity of the regulatory system.”
“Companies cannot ignore the regulatory process to boost their bottom line,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation's Boston Division. “The FBI hopes this sends a clear message to those who disregard the laws and protections the public relies on for their safety.”
“Marketing medical devices for other than FDA approved uses can expose patients to questionable medical treatments while asking taxpayers to pick up the Medicare cost," said Special Agent in Charge Phillip M. Coyne of the Department of Health and Human Services Office of Inspector General. "Our investigators, working closely with our law enforcement partners, will continue to pursue allegations of such misconduct and deter those tempted to launch such illegal scams.”
“We are pleased to have contributed to this outstanding multi-agency investigation,” said Jeffrey G. Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office. “The VA makes every attempt to ensure pharmaceutical and medical devices have gone through the necessary FDA approval processes and have been determined to be safe and effective. When individuals and companies circumvent that process, patients and our veterans suffer.”
Acclarent sold a variety of medical devices used in sinus surgeries, including a device known as the Relieva Stratus MicroFlow Spacer (Stratus). In 2006, Acclarent received FDA clearance to market the Stratus as a spacer to be used only with saline to maintain sinus openings following surgery. The government alleged that Acclarent intended for the Stratus to be used instead as a drug-delivery device for prescription corticosteroids, including Kenalog-40, and that the device was specifically designed and engineered for this use.
The government further alleged that Acclarent marketed the Stratus as a drug delivery device even after the FDA rejected the company’s 2007 request to expand the approved uses for the Stratus. For example, Acclarent employees trained physicians using a video that demonstrated the Stratus being used with prescription corticosteroid Kenalog-40 and also used a white, milky substance resembling Kenalog-40 when demonstrating the Stratus.
In 2010, after the acquisition by Ethicon, Acclarent added a warning to its label regarding use of active drug substances in the Stratus. By May 2013, Acclarent discontinued all sales of the Stratus and the company agreed to withdraw all FDA marketing clearances for the device, which is no longer commercially available in the United States. Ethicon also cooperated with the government’s investigation.
On Wednesday, July 20th, Acclarent’s former Chief Executive Officer, William Facteau, 47, of Atherton, California and former Vice President of Sales, Patrick Fabian, 49, of Lake Elmo, Minnesota were convicted following a six-week jury trial of 10 misdemeanor counts of introducing adulterated and misbranded medical devices into interstate commerce.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30 billion through False Claims Act cases, with more than $18.3 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was investigated by the Commercial Litigation Branch of the Justice Department’s Civil Division; the Food and Drug Administration, Office of Chief Counsel; the Federal Bureau of Investigation, Boston Field Division; the Department of Health and Human Services, Office of Inspector General; the Defense Health Agency; the Food and Drug Administration, Office of Criminal Investigations; Department of Defense, Office of Inspector General, Defense Criminal Investigative Service; the Department of Veterans Affairs, Office of Inspector General. The matter was handled by District of Massachusetts Assistant U.S. Attorneys Sara Miron Bloom, Patrick Callahan and Department of Justice Trial Attorneys Colin Huntley and Ross Goldstein.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Media Advisory: Iowa’s Untapped WorkforceRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office is hosting three workshops entitled, “Iowa’s Untapped Workforce: A Roadmap for Second Chance Hiring,” for employers, business students, human resource professionals, and community members across the District next week. The workshops will help participants better understand the significant role they can play in assisting ex-offenders reenter society. It is undisputed that employment decreases the risk of an individual committing a new crime. The workshops will provide “takeaways” about the benefits of hiring individuals with a criminal history and to dispel many myths.
U.S. Attorney Kevin W. Techau will be present at the workshops. Key state officials from Iowa Workforce Development and the Department of Corrections will be attending. A keynote speaker from the casino industry will share his story of hiring ex-gang members and ex-felons and how that decision positively impacted their lives, while benefiting his company and the communities in which they lived.
Event Details
When: July 26th (Cedar Rapids), 27th (Ft. Dodge), and 28th (Sioux City)
Where: Clarion Hotel (Cedar Rapids), Best Western Starlight Village (Ft. Dodge), and Bev’s on the River (Sioux City)
Time: 8:30 a.m. to 12:30 p.m.
Interview opportunities will be available.
Local 17 Member Sentenced for Racketeering ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - The United States Attorney’s Office announced today that James L. Minter III, 44, of Buffalo, NY, who was convicted of racketeering conspiracy, was sentenced by Senior U.S. District Judge William M. Skretny to time-served and two years of supervised release to include six months home detention subject to electronic monitoring. The defendant also was ordered to pay $12,000 in restitution to victims.
According to Assistant U.S. Attorney Edward H. White, who handled the case with retired Assistant U.S. Attorney Anthony M. Bruce, Minter was a member of Local 17 of the International Union of Operating Engineers. The defendant was part of a conspiracy from approximately 2002 through 2005 to force several construction and contracting companies, including Zoladz Construction, Environmental Strategies, Ontario Specialty Contracting, Ecology and Environment, and Earth Tech, to sign collective bargaining agreements with Local 17 and agree to hire Local 17 members for various projects throughout Western New York. Minter, along with other Local 17 members, carried out a campaign of violence, vandalism, and intimidation against such companies, which included damaging construction equipment of the targeted construction companies and directing verbal and written threats to company employees and their family members.
Minter was one of 12 officers and members of Local 17 arrested and charged in this case. Seven defendants pleaded guilty, President Mark Kirsch was convicted at trial, and four others were acquitted at trial.
The investigation of this case was handled by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Shannon Woolard, Acting Special Agent in Charge of the New York Regional Office, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, and the New York State Police, under the direction of Major Steven Nigrelli.
Leader of Violent Gang Sentenced to Life in Prison for Racketeering and MurderRead the Press Release
Anthony Christian was sentenced today to life in prison by United States District Judge Eric N. Vitaliano at the federal courthouse in Brooklyn. Christian was convicted at trial in October 2014 on charges of racketeering – including the murder of Jerome Estella and three murder conspiracies as racketeering acts – as well as firearms possession and multiple counts based on his trafficking in crack cocaine. The defendant faced a mandatory life sentence for his role in the Estella murder. The charges arose out of the defendant’s long-time dominance of a drug crew that operated in the Park Hill housing complex in the Clifton neighborhood of Staten Island.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
As proven at trial, Anthony Christian, also known as “Nitty,” and his brother Harvey Christian led a violent narcotics distribution ring in Park Hill from 1991 to 2011. In the mid-1990s, the Christian brothers and their associates sought to take control of more drug territory within Park Hill. To achieve this, they engaged in massive gun battles for months. During one of the battles, in May 1995, law enforcement recovered 77 shell casings inside a residential building, outside on the street, and on the roof. In 1999, Anthony Christian ordered another member of the enterprise to murder a rival drug dealer named Corey Brooker. In the course of looking for Brooker, the enterprise member had a dispute with Brooker’s associate, Jerome Estella. Anthony Christian then authorized the other enterprise member to murder Estella, and provided him with the 9 millimeter handgun he used to carry out the murder.
In the year before the Christian brothers’ arrests in 2011, multiple search warrants and arrests related to members of the organization and their associates were executed in and around Park Hill and elsewhere in New York. These searches and arrests resulted in the seizure of firearms and ammunition, including a Mac-11 pistol, as well as large quantities of crack and powder cocaine. During a search of the Christian brothers’ apartment in the Park Hill housing complex in February 2010, the New York City Police Department (NYPD) recovered multiple bullet-proof vests, crack-cocaine, and marijuana.
Harvey Christian, who was also convicted of all counts at trial in October 2014, faces a mandatory minimum 40-year prison term and is awaiting sentencing.
Mr. Capers extended his grateful appreciation to the FBI, the NYPD, and the Richmond County District Attorney’s Office.
The government’s case is being prosecuted by Assistant United States Attorneys Allon Lifshitz, Richard M. Tucker, and Kevin Trowel.
The Defendant:
ANTHONY CHRISTIAN
Age: 43
Staten Island, New YorkE.D.N.Y. Docket No. 11-CR-425
Labor Union Officers Charged with Embezzlement and Theft of Union FundsRead the Press Release
United States Attorney Andrew M. Luger announced a federal indictment charging SCOT MCNAMARA, 56, for embezzlement and theft of labor union assets.[1] MCNAMARA is expected to appear before Magistrate Judge Steven E. Rau in United States District Court in St. Paul, Minn.
According to the indictment and documents filed in court, MCNAMARA is a member of the International Association of Heat and Frost Insulators and Allied Workers, Local 34 (“Local 34”), a labor union representing 458 Minnesota members. Beginning in December 2007, MCNAMARA served as financial secretary of the union, until December 2012 when he lost his bid for re-election.
According to the indictment, as financial secretary, MCNAMARA had a Visa rewards credit card for use on behalf of Local 34. Use of the card resulted in earned credit card reward points, which Local 34 owned. However, before leaving office as financial secretary, MCNAMARA cashed in the reward points in exchange for other items, including $1,900 in gas cards, which were sent to MCNAMARA’s home.
According to the indictment and documents filed in court, MCNAMARA also used the Visa rewards card to pay personal expenses, including more than $2,800 in airline tickets for a family vacation to the Grand Cayman Islands.
According to the indictment and documents filed in court, from October 30, 2011, through November 2, 2011, MCNAMARA attended a training in New Orleans, La., regarding his role as trustee for Local 34’s health and welfare and pension funds. Local 34 paid a total of $3,054.84 for costs associated with MCNAMARA’s attendance at the training yet MCNAMARA personally requested and received a $3,087.84 reimbursement. Nearly all of the expenses MCNAMARA claimed in his reimbursement request had already been paid by Local 34. Instead of turning over the reimbursement funds to Local 34, MCNAMARA used the money to cover personal expenses, including payments associated with a December 2012 trip for his family to the Grand Cayman Islands.
A related felony information has also been filed charging KEITH CHRISTOPHERSON, 53, for embezzlement and theft of labor union assets.[2]
This case is the result of an investigation conducted by the U.S. Department of Labor.
Assistant U.S. Attorney Lola Velazquez-Aguilu is prosecuting the case.
Defendant Information:SCOT MCNAMARA, 56
Cottage Grove, Minn.Charges: • Embezzlement and theft of labor union assets, 4 counts
KEITH CHRISTOPHERSON, 53
Coon Rapids, Minn.Charges: • Embezzlement and theft of labor union assets, 1 count
[1] The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
[2] The charges contained in the information are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Jury Convicts Former Bakersfield Marijuana Store OwnerRead the Press Release
FRESNO, Calif. — After a four–day trial, a federal jury found Raymond Arthur Gentile, 55, currently a resident of Las Vegas, Nevada, guilty today of conspiring to manufacture, distribute and possess with intent to distribute marijuana, manufacturing marijuana, possessing marijuana with intent to distribute, and two counts of making false statements during firearms transactions, Acting United States Attorney Phillip A. Talbert announced. The trial was held before United States District Judge Dale A. Drozd.
According to evidence presented at trial, Gentile was the owner and operator of ANP, a marijuana storefront, in Bakersfield. During the execution of a federal search warrant, agents seized 170 marijuana plants, over 24 pounds of processed marijuana, over $68,000 in cash, and a shotgun. The testimony at trial established that Gentile made $25,000 to $30,000 a month in gross proceeds. Agents found the marijuana plants growing in two separate grow rooms within the store and sales receipts indicated 40 to 50 sales to customers each day. In addition, the evidence showed that Gentile made false statements on a Firearms Transaction Record, ATF Form 4473, in order to purchase two Glock firearms. One of the firearms was seized from ANP during the investigation of this case.
This case is the product of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the California Highway Patrol, and the Bakersfield Police Department. Assistant United States Attorneys Karen A. Escobar and Melanie L. Alsworth are prosecuting the case.
After the jury returned its verdict, Gentile was taken into custody by the U.S. Marshal Service. He is scheduled to be sentenced by Judge Drozd on October 17, 2016. Gentile faces a mandatory minimum statutory penalty of five years in prison, a maximum statutory penalty of 40 years in prison and a $5 million fine, as to each of the three drug counts. He faces a maximum statutory penalty of five years and a $250,000 fine for each of the false statement convictions. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Judge Sentences Former Pittsburgh-area Drug Dealer to 12 Years in Federal PrisonRead the Press Release
PITTSBURGH - A former resident of Penn Hills, Pennsylvania, more recently a resident of Tucker, Georgia, has been sentenced in federal court to 144 months (12 years) imprisonment followed by five years supervised release on his conviction of violating federal narcotics and money laundering laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Terrence F. McVerry imposed the sentence on Randee Gilliam, 50, of Tucker, Georgia.
According to information presented to the court, the investigation, which began in the fall of 2011 and concluded in mid-March 2012, involved Title III wiretaps on cell phones utilized by Lamont Wright, John Saban, and Dorian Gilliam.
The investigation revealed that Randee Gilliam obtained multi-kilogram quantities of cocaine from a source of supply in Tucson, Arizona, on a regular basis. Randee Gilliam then supplied those kilograms of cocaine to John Saban, a resident of Pittsburgh, on a weekly basis. Randee Gilliam arranged for the kilograms of cocaine to be transported from Tucson, Arizona, to Las Vegas, Nevada, where they were divided up into numerous parcels, hidden inside computer monitors or leather binders, and shipped via UPS or FedEX to several different shipping facilities in the Pittsburgh area. The parcels were then picked up in Pittsburgh by John Saban and his associates.
Saban would then supply nearly all of that cocaine to Lamont Wright, the primary distributor for the organization. Wright, in turn, supplied quantities of this cocaine to countless individuals to include Eric Campbell, Genaro Coleman, and Frederick Ellis.
The drug proceeds collected by Saban from Wright were concealed in protein powder containers and provided to Dorian Gilliam or, on numerous occasions, to Myrene Gilliam. Dorian and Myrene Gilliam then hid the containers in their luggage and flew via commercial airline to Randee Gilliam in Las Vegas to deliver the money. The money was then used by Randee Gilliam to purchase additional quantities of cocaine from the sources of supply in Tucson.
On March 10, 2012, in the midst of the investigation, federal agents, with the assistance of the Monroeville Police, seized $150,000 in drug trafficking proceeds from Randee Gilliam. The cash was seized shortly after it had been provided to Mr. Gilliam by John Saban as payment for multiple kilograms of cocaine that had been supplied to Saban in the days prior.
Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) headed by the Drug Enforcement Administration (DEA), which is comprised of members drawn from the Internal Revenue Service Criminal Investigation Division, the Allegheny County District Attorney's Office, and the Pittsburgh Bureau of Police, for the investigation leading to the successful prosecution of Randee Gilliam and his co-conspirators referenced herein. Also assisting in the investigation were the United States Marshals Service, the Penn Hills Police, the Monroeville Police, the Pennsylvania State Police, and the McKees Rocks Police.
Johnson & Johnson Subsidiary Acclarent Inc. Pays Government $18 Million to Settle False Claims Act AllegationsRead the Press Release
California-based medical device manufacturer Acclarent Inc., a subsidiary of Johnson & Johnson, has agreed to pay $18 million to resolve allegations that the company caused health care providers to submit false claims to Medicare and other federal health care programs by marketing and distributing its sinus spacer product for use as a drug delivery device without U.S. Food and Drug Administration (FDA) approval of that use, the Justice Department announced today.
“The FDA approval process serves an important role in ensuring that federal health care participants receive devices that are safe, effective and medically appropriate,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will not permit companies to circumvent that process and put profits over patient safety.”
“The FDA plays a fundamental role in ensuring the safety and efficacy of medical devices and drugs in this country,” said U.S. Attorney Carmen M. Ortiz. “Every time that patients receive a medical device or fill a prescription they should be able to take for granted that the FDA’s requirements have been met. We will vigorously pursue those who ignore or seek to circumvent these important patient protections.”
“It is imperative that medical device companies adhere to FDA approval requirements so that patients are not subject to questionable medical treatments at taxpayer expense,” said Special Agent in Charge Phillip M. Coyne of the Department of Health and Human Services Office of Inspector General. “Our investigators, working closely with our law enforcement partners, will continue to pursue allegations of such misconduct to hold fraudsters accountable and deter those tempted to launch such illegal scams.”
Acclarent sold a variety of medical devices used in sinus surgeries, including a device known as the Relieva Stratus MicroFlow Spacer (Stratus). In 2006, Acclarent received FDA clearance to market the Stratus as a spacer to be used only with saline to maintain sinus openings following surgery. The government alleged that Acclarent intended for the Stratus to be used instead as a drug-delivery device for prescription corticosteroids, including Kenalog-40, and that the device was specifically designed and engineered for this use.
The government further alleged that Acclarent marketed the Stratus as a drug delivery device even after the FDA rejected the company’s 2007 request to expand the approved uses for the Stratus. For example, Acclarent employees trained physicians using a video that demonstrated the Stratus being used with prescription corticosteroid Kenalog-40 and also used a white, milky substance resembling Kenalog-40 when demonstrating the Stratus.
In 2010, Acclarent added a warning to its label regarding use of active drug substances in the Stratus; however, the government alleged that Acclarent nonetheless continued to market the Stratus for drug delivery. By May 2013, Acclarent discontinued all sales of the Stratus and the company agreed to withdraw all FDA marketing clearances for the device, which is no longer commercially available in the United States.
On Wednesday, July 20th, Acclarent’s former Chief Executive Officer, William Facteau, 47, of Atherton, California and former Vice President of Sales, Patrick Fabian, 49, of Lake Elmo, Minnesota were convicted following a six-week jury trial of 10 misdemeanor counts of introducing adulterated and misbranded medical devices into interstate commerce.
The civil settlement with Acclarent resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in the District of Massachusetts and is captioned United States ex rel. Melayna Lokosky v. Acclarent, Inc. As part of today’s resolution, Lokosky will receive approximately $3.5 million from the settlement.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30 billion through False Claims Act cases, with more than $18.3 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement with Acclarent was the result of a coordinated effort among the U.S. Attorney’s Office for the District of Massachusetts and the Civil Division’s Commercial Litigation Branch, with assistance from the FDA’s Office of Chief Counsel and HHS’ Office of Counsel to the Inspector General. The investigation was conducted by the FBI’s Boston Field Office, HHS-OIG, the Defense Health Agency, FDA’s Office of Criminal Investigations, the Department of Veterans Affairs Office of Inspector General and the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Johnson in Great Falls on July 21, 2016 and entering pleas of Not Guilty were:
- MITCHELL LAWRENCE LAMERE, a 22-year-old resident of Box Elder, appeared on charges of first degree murder, second degree murder, and arson. If convicted of the most serious charges contained in the indictment, LAMERE faces life in prison, $250,000 in fines, and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-52
Appearing before U.S. Magistrate Ostby in Billings on July 19, 2016 and entering pleas of Not Guilty were:
- DEVAN GREGORY SANCHEZ, a 24-year-old resident of Lame Deer, appeared on charges of assault with intent to commit murder, assault resulting in serious bodily injury, assault with a dangerous weapon, and use of a firearm during and in relation to a crime of violence. If convicted of the most serious charges contained in the indictment, SANCHEZ faces life in prison, $250,000 in fines, and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-67
Appearing before U.S. Magistrate Lynch in Missoula on July 19, 2016 and entering pleas of Not Guilty were:
- CHARISE LOUISE DUNN, a 51-year-old resident of Hamilton, appeared on charges of supplemental security income fraud, and false statements. If convicted of the most serious charge contained in the indictment, DUNN faces 5 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Social Security Administration Office of Inspector General. PACER Case Reference. 16-21
Appearing before U.S. Magistrate Johnston in Great Falls on July 7, 2016 and entering pleas of Not Guilty were:
- JOHN MARVIN OLD CHIEF, a 24-year-old resident of Browning, appeared on charges of conspiracy to commit arson of a dwelling, and attempted arson of a dwelling. If convicted of the most serious charge contained in the indictment, OLD CHIEF faces life in prison, $250,000 in fines, and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-48
- JOHN MARVIN OLD CHIEF, a 24-year-old resident of Browning, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 16-38
Appearing before U.S. Magistrate Ostby in Billings on July 6, 2016 and entering pleas of Not Guilty were:
- ANTHONY MICHAEL McGARRY, a 29-year-old transient, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, McGARRY faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 16-61
Appearing before U.S. Magistrate Ostby in Billings on July 5, 2016 and entering pleas of Not Guilty were:
- PAUL MICHAEL LABRIE, a 22-year-old resident of Big Timber, appeared on charges of uttering counterfeit obligations. If convicted of the charge contained in the indictment, LABRIE faces 20 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the United States Secret Service. PACER Case Reference. 16-45
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
ICYEAGLE, a Dark Web Vendor of Stolen Information, Charged in AtlantaRead the Press Release
ATLANTA - Aaron James Glende has been arraigned on federal charges of bank fraud, access device fraud, and aggravated identity theft. The indictment alleges he advertised criminal services on AlphaBay Market, a hidden services marketplace.
“Glende allegedly sold stolen bank account information on a website designed to traffic criminal goods and services, including weapons, stolen credit cards, and illegal narcotics,” said U. S. Attorney John Horn. “As cyber criminals increasingly trade financial information for cash, citizens must be vigilant with their account information.”
“The threat posed by cyber criminals is a persistently increasing problem for everyday citizens here in the U.S. and abroad. This investigation and resulting arrest clearly illustrates that the FBI, however, will not cease in its effort to identify, locate, arrest and seek prosecution of these criminals regardless of how deep in the digital underground they reside,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: From about November 5, 2015, Aaron Glende, a.k.a. IcyEagle, began advertising criminal services on a TOR hidden services marketplace known as AlphaBay Market (“AlphaBay”). The AlphaBay website contained a number of features designed to assist prospective buyers who wished to purchase criminal services.
For example, the AlphaBay sales listings contained categories corresponding to various types of criminal services; those categories included “Fraud,” “Drugs & Chemicals,” “Counterfeit Items,” “Weapons,” and “Carded Items.” Moreover, the website had a search functionality that allowed users to search for items by name. Much like Amazon or eBay, users of the website could rate sellers and search for certain sellers by name, but purchases were made using Bitcoin.
On May 4, 2016, Glende, using the online nickname “IcyEagle,” allegedly advertised the sale of stolen bank account information on the AlphaBay Market under the “Fraud” category. In a listing entitled “High Balance SunTrust Logins 30K-150K Available,” using his online nickname, IcyEagle, Glende wrote that “I bring you freshly hacked Sun Trust Bank Account Logins. The accounts are notorious for having weak security.” The listing identified the sales price as $66.99 USD and indicated that IcyEagle had sold 11 of the high-balance account logins since November 11, 2015.
On March 19, 2016, Glende allegedly advertised the sale of “Hacked SunTrust Bank Account Logins $100-$500 Balances.” The listing indicated that the sales price was $9.99 USD, that he had sold 32 since November 5, 2015, and noted that “this listing is for active SunTrust bank account balances of $100-$500.”
On multiple dates in March and April 2016, an FBI agent, acting in an undercover capacity, accessed the AlphaBay website. While on the website, the agent purchased SunTrust account information from Glende using Bitcoin. A review of the information purchased from Glende confirmed that it contained usernames, passwords, physical addresses, email addresses, telephone numbers, and bank account numbers that belonged to five different SunTrust Bank customers.
Aaron James Glende, 35, of Winona, Minnesota, was arraigned before U.S. Magistrate Judge Janet F. King. Glende was indicted by a federal grand jury on June 28, 2016.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation. Assistance was provided by Homeland Security Investigations, the U.S. Postal Investigation Service, and the Winona, Minnesota Police Department.
Assistant United States Attorneys Samir Kaushal and Kamal Ghali are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Four Individuals Found Guilty of Drug TraffickingRead the Press Release
SAN JUAN, P.R. – After a nine-day jury trial, Jovanni Varestin-Cruz, a.k.a. “Jova,” Rocky Martínez-Negrón, Edgar Collazo-Rivera, and Carlos Raymundi-Hernández were found guilty of conspiracy to possess with intent to distribute cocaine and heroin, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Judge Juan Pérez-Giménez presided over the trial. Twenty-five other co-conspirators had already pled guilty and are awaiting sentence. Defendants Anthony Declet- Rivera and Antonio Rivera-Rodríguez remain fugitives.
These defendants were part of the drug trafficking organization lead by José D. Figueroa-Agosto, a.k.a. “Junior Capsula;” Elvin Torres Estrada, a.k.a. “Muñecón;” Ángel Ayala-Vázquez, a.k.a. “Angelo Millones;” and Samuel Negrón-Hernández, a.k.a. “Samy Tostón.” According to the indictment, from in or about March 2005, to in or about June 2010, the defendants, along with others, intentionally combined, conspired and agreed to import and to possess with intent to distribute more than ten thousand (10,000) kilograms of cocaine and heroin.
During trial, the government presented witness’ testimony that narrated the criminal conduct that these individuals participated in a drug trafficking organization that imported the kilograms of cocaine and heroin from the Dominican Republic, to Puerto Rico and further transshipment to the Continental United States for distribution and sale. The complex conspiracy involved numerous players with various roles, bags filled with U.S. currency, maritime coordination, and firearms. A jury heard lay and expert testimony at trial that proved the defendants’ willful participation and knowing involvement in the conspiracy.
Defendant Edgar Collazo-Rivera was found guilty of conspiracy to commit money laundering and conspiracy to commit international money laundering. He arranged the transportation of narcotics proceeds, approximately eight million dollars, to the Dominican Republicusing privately owned yachts to transport the U.S. currency. Carlos Raymundi-Hernández was also found guilty of conspiracy to import controlled substances.
“These convictions mark yet another victory in our fight against narcotics in Puerto Rico. Our team of prosecutors and case agents set an excellent example of teamwork during the investigation which led to the conviction of these defendants at trial,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
The case was prosecuted by Assistant United States Attorneys Olga B. Castellón-Miranda and John Andre Mathews II. The defendants face a maximum penalty of up to life imprisonment. The sentencing is scheduled for November 18, 2016, and the defendants were remanded to the custody of the U.S. Marshals.
Four Indicted for Marijuana Cultivation Operations in Sequoia National ForestRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment on Thursday against four individuals for their involvement in large-scale marijuana cultivation operations on National Forest land, Acting U.S. Attorney Phillip A. Talbert announced.
The indictment charges the following individuals with conspiring to cultivate marijuana at two sites in Kern County in the Sequoia National Forest: Sair Eduardo Maldonado-Soto, 21, Coral Herrera, 19, both of Perris; Abel Toledo-Villa, 34, of Michoacán, Mexico; and Alfredo Cardenas-Suastegui, 55, of Mexico, residing in Parlier. The defendants were also charged with damaging public land and natural resources as a result of the marijuana cultivation activities.
According to court documents, between March 1, 2016, and July 8, 2016, the defendants were involved with marijuana grow sites in the Lucas Creek drainage and an area known as the Box 6 site. The investigation revealed Maldonado-Soto and Herrera were supplying material, equipment, and personnel to the grow sites, which consisted of over 10,000 marijuana plants, and that they were also responsible for transporting Toledo-Villa and Cardenas-Suastegui away from the Box 6 grow site after it was raided. The marijuana cultivation operations caused extensive damage to the land and natural resources. Harmful pesticides and large amounts of trash were found at both sites. Native trees and vegetation were also removed to make room for the marijuana plants.
This case is the product of an investigation by the U.S. Forest Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, California Department of Justice’s Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, Kern County Sheriff’s Office, Riverside County Sheriff’s Department, Fontana Police Department, and Victorville Police Department. Assistant United States Attorney Karen Escobar is prosecuting the case.
The defendants are scheduled for arraignment on the indictment on July 25 in federal court in Fresno. If convicted of counts one and two, Maldonado-Soto, Toledo-Villa, and Cardenas-Suastegui face a mandatory minimum statutory penalty of five years in prison, a maximum of 40 years in prison, and a $5 million fine. Herrera faces a maximum prison term of 20 years and a $1 million fine. If convicted of the environmental crime, the defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former South Street Headhouse District Board Chairman Charged with Illegally Using District FundsRead the Press Release
Daniel Christensen, 42, of Philadelphia, PA was charged today by Information1 with one count of wire fraud in connection with a scheme that defrauded the South Street Headhouse District (“SSHD”) while he was Chairman of the Board, announced United States Attorney Zane David Memeger.
Daniel Christensen, who owned and operated Copabanana and Redwood, illegally withdrew funds from various SSHD accounts to use to float his own business accounts. During the course of the scheme, from approximately November 2014 to June 2015, Christensen withdrew approximately $1.4 million from SSHD accounts which were subsequently replaced.
If convicted, the defendant faces a statutory maximum sentence of 20 years in prison, restitution, a period of supervised release, a $100 special assessment, and a possible fine.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jennifer Chun Barry.
1An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Psychologist Sentenced to 6+ Years for Seeking Sex with 12-Year-OldRead the Press Release
A Seattle psychologist was sentenced today in U.S. District Court in Seattle to 78 months in prison and five years of supervised release for attempted travel to engage in illicit sexual conduct and attempted receipt of child pornography, announced U.S. Attorney Annette L. Hayes. JONATHAN BRENT WULF, 62, of Seattle posted an ad on Craigslist beginning a conversation with what turned out to be an undercover agent working for U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI). Through various communications by phone and internet, WULF said he wanted to have sex with the agent’s fictional 12-year-old stepdaughter. WULF was arrested in September 2015 when he arrived at the hotel selected as the meeting place for the sexual encounter. At the sentencing hearing U.S. District Judge Richard A. Jones noted WULF’s career as a clinical psychologist saying “You’ve been able to see the kind of damage this activity can cause.”
“Predators use social media and the internet to prey on children,” said U.S. Attorney Annette L. Hayes. “Even where there is careful oversight by parents, children are vulnerable to sexual predators through their online activities. This defendant, a child psychologist, thought he could hide in the shadow of the internet. He was wrong. Law enforcement and a prison sentence is what awaited him instead.”
According to records filed in the case, over a two week period in September 2015, WULF repeatedly communicated with the undercover agent about his wanting to have sex with the agent’s fictional 12-year-old stepdaughter. WULF repeatedly suggested that all text messages or other internet communications regarding his interest in underage sex should be deleted. WULF also repeatedly acknowledged that pursuing sex with a minor was illegal. WULF was a trained psychologist who had specialized in children and adolescents. The Washington State Department of Health has suspended WULF’s license.
“We entrust teachers and counselors to serve as role models for our children and safeguard their welfare, said Steve Cagen, acting special agent in charge for HSI Seattle. “This sentence should serve as a stern warning to anyone who mistakenly believes cyberspace affords them anonymity and they can use the Internet to sexually exploit children with impunity. HSI will use all of its law enforcement authorities to combat this heinous behavior -- we owe it to the children who are the victims in these cases, many of whom will bear the emotional scars of this trauma for the rest of their lives.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Matthew Hampton.
Former Owner of Rooftop Building Across from Wrigley Field Convicted of Defrauding Chicago Cubs and Municipal Taxing AgenciesRead the Press Release
CHICAGO — A federal jury today convicted the former owner of a rooftop building overlooking Wrigley Field of defrauding the Chicago Cubs and municipal taxing agencies by underreporting attendance figures and gross revenues.
After a nine-day trial in U.S. District Court in Chicago, R. MARC HAMID, 47, of Lincolnwood, was convicted on four counts of mail fraud and five counts of illegally structuring financial transactions. The conviction carries a maximum sentence of 105 years in prison.
U.S. District Judge Thomas M. Durkin scheduled a sentencing hearing for Dec. 6, 2016.
Hamid is a licensed Illinois attorney and an owner and operator of Right Field Rooftops LLC, which did business as Skybox on Sheffield, a rooftop entertainment venue located across the street from Wrigley Field’s right field wall. Hamid also owned and operated JustGreatTickets.com Inc. and Just Great Seats LLC, companies that purchased and re-sold tickets to entertainment and sporting events.
Skybox on Sheffield and other rooftop venues surrounding Wrigley Field had an agreement with the Cubs that required, among other things, that each rooftop pay the Cubs a royalty of 17% of their gross annual revenues. In addition, Cook County and the city of Chicago required the rooftops to pay an amusement tax on admission fees, and to report its amusement tax returns to the municipalities. The state of Illinois also required Skybox on Sheffield to file sales tax returns and to pay the state a certain dollar amount per ticket sold.
Evidence at trial revealed that for the years 2008 through 2011, Hamid caused Skybox on Sheffield to submit false annual royalty statements to the Cubs that under-reported attendance figures by thousands of paid attendees, and under-reported gross revenues by at least $1.5 million. At Hamid’s direction, sales from Skybox on Sheffield were diverted to the two ticket companies, thus concealing from the Cubs, Cook County and the city of Chicago Skybox on Sheffield’s true revenue. Hamid’s accountant, JOSEPH GURDAK, further reduced the attendance and revenue figures reported to the Cubs.
Gurdak, 73, pleaded guilty prior to trial to one count of mail fraud and one count of willfully filing a false income tax return. Gurdak faces a maximum sentence of 23 years in prison. Gurdak’s sentencing hearing before Judge Durkin has not yet been scheduled.
Hamid’s conviction was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; James D. Robnett, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation in Chicago; and Antonio Gómez, Postal Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
The government is represented by Assistant U.S. Attorneys Barry Jonas, Sean Driscoll and Katherine Welsh.
Former Headmaster Is Charged with Wire Fraud for Stealing Nearly $9 Million from Huntersville Area School and Affiliated ChurchRead the Press Release
CHARLOTTE, N.C. – Wayne C. Parker, Jr., the former headmaster of a Huntersville area parochial school is facing federal charges for embezzling nearly $9 million from the school and its affiliated church, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. A criminal bill of information was filed (today) in federal court, charging Parker with one count of wire fraud.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Cleveland L. Spruill of the Huntersville Police Department.
“For more than a decade, church members, parents, teachers, students and generous donors put their trust in Parker t lead their school and fulfill its goals and mission. Instead, Parker misused his access to the school and church’s finances, treating their bank accounts as an endless cookie jar, dipping in repeatedly to fund his lavish lifestyle. Parker then went to great lengths to conceal his fraud and to prevent law enforcement and others from uncovering the truth,” said U.S. Attorney Rose. “If Parker’s moral compass was not enough to stop him from breaking the law and ripping off those who put their faith in him, a good dose of American justice will.”
“It takes an especially ruthless person to steal money intended to educate children and promote religion and use it to bankroll an extravagant lifestyle you’d otherwise never be able to afford. Wayne Parker forced pay cuts for teachers during the great recession to fund building a million dollar lake home, bought multiple properties, a boat, even gold, all using the funds that rightfully belonged to a school and its affiliated church. The FBI will work tirelessly to uncover and expose these types of crimes, no matter what lengths offenders take to try and hide their fraudulent schemes,” said FBI’s Special Agent in Charge Strong.
“I am pleased that we were able to work with the FBI to put an end to more than a decade of thievery by Parker and that this investigation has resulted in charges being brought against him,” said Huntersville Police Chief Spruill. “His selfish actions violated the faith and trust of the church, the parents, the students and the community that he was entrusted with serving.”
According to allegations contained in filed court documents, from about January 2000 to in or about August 2014, Parker executed a scheme to defraud his employer, a parochial school (School) and its affiliated church (Church), both located in Huntersville, of at least $9 million, by embezzling Church and School bank funds to pay for his personal expenses and the personal expenses of an unnamed co-conspirator.
Parker, 59, of Mooresville, N.C., joined the Church in 1991. Court documents allege that sometime after joining the Church, Parker became volunteer treasurer, giving him access to and control over the Church bank accounts. In 1996, Parker was hired as Headmaster of the School, which was founded in 1994 by members of the Church. As headmaster, Parker was responsible for the administration of the School and its finances and had control over its bank accounts.
As alleged in filed court documents, beginning in at least 2000, Parker began stealing money from the Church and School and used it to pay for personal expenses. For example, in 2000, when he needed extra money to build a house for his family in Mooresville, Parker stole approximately $100,000 from the School and Church to complete the project. Over the next 14 years, court documents allege that Parker used School and Church funds to pay for numerous expenses, including, among other things, the purchase of multiple plots of real estate; the building of two homes, one costing over a million dollars; vacations around the world; luxury vehicles; luxury dining; Carolina Panthers preferred seats licenses; credit card bills; a boat and jet skis; gold and silver coins; and gifts for family and friends.
According to court records, as part of the scheme to siphon School and Church funds, and to hide his theft, Parker opened approximately 29 checking accounts, obtained 26 credit cards, seven loans, and created nine limited liability companies.
As alleged in filed court documents, in addition to embezzling funds for his own use, Parker also embezzled School and Church funds at the direction of an unnamed co-conspirator. Court documents allege that beginning in 2000, Parker issued additional paychecks to the co-conspirator above and beyond what he was entitled to by the terms of the co-conspirator’s employment. As the scheme progressed overtime, in addition to extra salary checks, Parker used Church and School funds to pay for the co-conspirator’s personal expenses, including college tuition, medical bills, taxes, cars, and credit card bills.
As part of his scheme, and to hide his embezzlement activities from the School’s governing board, Parker created a false, fraudulent and fictitious document from an accounting firm purporting to be the results of an audit, court documents allege. The document falsely stated that the School had been through a full audit and received an unqualified opinion letter giving the School a clean financial bill of health.
According to allegations contained in court documents, in the summer of 2014, after the Church leadership became suspicious of Parker’s activities and called for an independent audit, Parker intentionally stole and destroyed school financial records in an attempt to prevent law enforcement and others from discovering the nature and extent of his embezzlement activities. Additionally, Parker sold one of the houses that he had constructed with embezzled funds to one of his children, for a significantly undervalued price, to hide his crimes and prevent law enforcement from seizing that property. In total Parker’s scheme resulted in a loss of at least $9 million dollars to the Church and School.
A plea agreement was also filed today, and Parker is expected to appear before a U.S. Magistrate Judge to formally enter his guilty plea when the court schedules the plea hearing. The wire fraud charge carries maximum prison term of 20 years and a $250,000 fine. As part of his plea agreement, Parker has agreed to pay restitution, the amount of which will be determined by the Court at sentencing.
The investigation was handled by the FBI and the Huntersville Police Department. The prosecution for the government is being handled by Assistant United States Attorney Kevin Zolot of the U.S. Attorney’s Office in Charlotte.
Former Deputy at Bullitt County, Kentucky, Sheriff’s Office Convicted of Civil Rights ViolationsRead the Press Release
Jury Found Defendant Guilty of Abusing his Authority by Retaliating Against a Civilian
A former deputy with the Bullitt County, Kentucky, Sheriff’s Office was convicted today by a federal jury of two counts of willfully depriving a Bullitt County resident of his constitutional rights under color of law, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U.S. Attorney John E. Kuhn Jr. of the Western District of Kentucky.
The evidence presented at trial established that Matthew Corder, of Louisville, Kentucky, abused his authority as a sworn law enforcement officer by retaliating against a Bullitt County resident who insulted him. Corder unlawfully entered the man’s home, tased him in the back, arrested him without probable cause and charged him with crimes that he did not commit, causing the man sit in jail for weeks and lose his job. The charges against the victim, disorderly conduct and fleeing and evading, were eventually dismissed.
“This deputy abused his authority, neglected the law and harmed a resident he swore an oath to protect,” said Principal Deputy Assistant Attorney General Gupta. “No insult justifies depriving the victim of his constitutional rights, and anytime law enforcement officers act like Corder did here, they do a disservice to the vast majority of their colleagues who safeguard our communities with fidelity, professionalism and distinction. The Justice Department will work tirelessly to bring to justice any member of law enforcement who breaks the law by using excessive force.”
“Every day, thousands of law enforcement officials have thousands of respectful, appropriate, lawful interactions with individuals,” said U.S. Attorney Kuhn. “We all appreciate these dedicated guardians for keeping us safe in our homes and in our communities. But in those rare instances when a police officer violates his foremost duty to obey the law and adhere to the limits imposed by our Constitution, the Department of Justice will vigorously work to hold that officer accountable. Today our efforts culminated in a unanimous jury verdict finding that former Deputy Sheriff Corder victimized an individual by making an unconstitutional arrest and bringing unconstitutional charges. The Department of Justice and the U.S. Attorney’s Office will continue to protect all individuals and communities from unlawful police conduct wherever and whenever it occurs.”
The four-day trial included testimony from the victim, the victim’s sister and the other officer on scene, which corroborated the victim’s account. The instructors from the police academy who trained Corder also testified to the fact that he knew what the law permits and knew that his conduct violated the victim’s constitutional rights. Evidence included Corder’s false arrest report as well as body-camera footage of the arrest.
Corder faces a maximum sentence of 10 years in prison on the first charge and one year of imprisonment on the second charge. His sentencing is scheduled for Oct. 17, 2016, before U.S. District Judge David J. Hale of the Western District of Kentucky.
This case was investigated by the FBI’s Louisville Division, and was prosecuted by Assistant U.S. Attorney Amanda Gregory of the Western District of Kentucky and Trial Attorney Christopher Perras of the Civil Rights Division’s Criminal Section.
Former Deputy at Bullitt County, Kentucky, Sheriff’s Office Convicted of Civil Rights ViolationsRead the Press Release
Jury Found Defendant Guilty of Abusing his Authority by Retaliating Against a Civilian
WASHINGTON – A former deputy with the Bullitt County, Kentucky, Sheriff’s Office was convicted today by a federal jury of two counts of willfully depriving a Bullitt County resident of his constitutional rights under color of law, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U.S. Attorney John E. Kuhn Jr. of the Western District of Kentucky.
The evidence presented at trial established that Matthew Corder, of Louisville, Kentucky, abused his authority as a sworn law enforcement officer by retaliating against a Bullitt County resident who insulted him. Corder unlawfully entered the man’s home, tased him in the back, arrested him without probable cause and charged him with crimes that he did not commit, causing the man sit in jail for weeks and lose his job. The charges against the victim, disorderly conduct and fleeing and evading, were eventually dismissed.
“This deputy abused his authority, neglected the law and harmed a resident he swore an oath to protect,” said Principal Deputy Assistant Attorney General Gupta. “No insult justifies depriving the victim of his constitutional rights, and anytime law enforcement officers act like Corder did here, they do a disservice to the vast majority of their colleagues who safeguard our communities with fidelity, professionalism and distinction. The Justice Department will work tirelessly to bring to justice any member of law enforcement who breaks the law by using excessive force.”
“Every day, thousands of law enforcement officials have thousands of respectful, appropriate, lawful interactions with individuals,” said U.S. Attorney Kuhn. “We all appreciate these dedicated guardians for keeping us safe in our homes and in our communities. But in those rare instances when a police officer violates his foremost duty to obey the law and adhere to the limits imposed by our Constitution, the Department of Justice will vigorously work to hold that officer accountable. Today our efforts culminated in a unanimous jury verdict finding that former Deputy Sheriff Corder victimized an individual by making an unconstitutional arrest and bringing unconstitutional charges. The Department of Justice and the U.S. Attorney’s Office will continue to protect all individuals and communities from unlawful police conduct wherever and whenever it occurs.”
The four-day trial included testimony from the victim, the victim’s sister and the other officer on scene, which corroborated the victim’s account. The instructors from the police academy who trained Corder also testified to the fact that he knew what the law permits and knew that his conduct violated the victim’s constitutional rights. Evidence included Corder’s false arrest report as well as body-camera footage of the arrest.
Corder faces a maximum sentence of 10 years in prison on the first charge and one year of imprisonment on the second charge. His sentencing is scheduled for Oct. 17, 2016, before U.S. District Judge David J. Hale of the Western District of Kentucky.
This case was investigated by the FBI’s Louisville Division, and was prosecuted by Assistant U.S. Attorney Amanda Gregory of the Western District of Kentucky and Trial Attorney Christopher Perras of the Civil Rights Division’s Criminal Section.
Former Airman Sentenced for Child Pornography CrimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that Ryan Lannen, 34, resident of Anchorage, Alaska, was sentenced yesterday by U.S. District Judge Sharon L. Gleason to 78 months in prison, to be followed by a 15-year term of supervised release, for two counts of distribution of child pornography.
According to court documents and arguments made during the sentencing hearing, in March 2015, Twitter, Inc. reported to the National Center for Missing and Exploited Children (NCMEC) that an individual located in Anchorage, Alaska, had sent child pornography through the Internet on four occasions between January and March 2015. Anchorage Police Department (APD) identified the owner of the Twitter account as Lannen, an Airman at Joint Base Elmendorf Richardson (JBER), residing off post. APD obtained a state search warrant for Lannen and his residence. Located on Lannen’s phone were 29 images of child pornography.
Also located on the phone were multiple chats Lannen engaged in through the Kik Messenger application. Many of these chats involved the discussion of sexual acts with minors, or child pornography. During several of these chats, Lannen traded images of child pornography, including images of prepubescent minors as young as eight years old.
On at least five other Kik instances, Lannen chatted with individuals who identified themselves as minors. In four of these chats, Lannen said he was a 16-year-old girl, and attempted to obtain images from these other users.
Judge Gleason based her sentence in numerous factors, including the nature and circumstances of the defendant’s conduct, especially the impact the defendant’s crimes had on the minors depicted in the images that he traded. Judge Gleason noted particularly the harm caused to victims by not only their initial abuse, but also the recurring harm caused because of the fact that “photos [of their abuse] are getting passed around all over the Internet and discussed[.]” With her sentence of more than six years in prison , Judge Gleason also sought to “deter others from this criminal conduct.”
This case was investigated and prosecuted by the FBI Safe Streets Task Force, and the Alaska Internet Crimes Against Children (ICAC) Task Force. The Alaska ICAC is a federally and state funded task force managed by the APD, comprised of agents from federal, military, state, and local agencies. The purpose of the Alaska ICAC is to investigate online child exploitation crimes, including child pornography, enticement, and sex trafficking.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov, or contact the District of Alaska’s Project Safe Childhood Coordinator at (907) 271-5071.
Etna Man Convicted After Jury Trial on Child Pornography ChargesRead the Press Release
BINGHAMTON, NEW YORK – A federal jury today convicted Robert Snyder, 67, of Etna, New York, of receipt, possession, and accessing with intent to view child pornography following a four day long trial, said United States Attorney Richard S. Hartunian, Inspector in Charge Shelly Binkowski, United States Postal Inspection Service, and the Toronto (Canada) Police Service.
Snyder faces a minimum of 5 years and up to 20 years in prison when he is sentenced on November 22, 2016, by Senior United States District Judge Thomas J. McAvoy. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The evidence at trial showed that in 2010 and 2011 Snyder purchased seven (7) DVD disks containing child pornography videos from Azovfilms, a company located in Toronto, Canada. A search warrant executed at the offices of Azovfilms resulted in the seizure of records and documents which showed that Snyder and others purchased child pornography videos. Additionally, a search of Snyder’s residence in October of 2014 resulted in the seizure of computers and other digital storage media which contained numerous additional images of child pornography.
This case was investigated by the United States Postal Inspection Service with assistance from the Toronto (Canada) Police Service and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Employee Guilty of Wire Fraud Causing His Employer A Loss of over $565,000.00Read the Press Release
Contact Person: David Stephens (864) 282-2100
Greenville, South Carolina ----Acting United States Attorney Beth Drake announced today that on July 20, 2016, Mark Nigel Wilkins, age 49, formerly of Lexington, South Carolina entered a plea of guilty in Federal Court in Greenville, South Carolina before the Honorable Bruce H. Hendricks. Mr. Wilkins pled guilty to Wire Fraud in violation of Title 18, United States Code, Section 1343. He faces a possible sentence of up to 20 years imprisonment and a fine of up to $250,000.00.
Assistant United States Attorney David C. Stephens, who is in charge the prosecution, advised Judge Hendricks of the following facts during the guilty plea hearing. Mr. Wilkins was employed by Michelin North America as a Technical Service Manager. Part of his duties was the purchase of millions of dollars’ worth of items for Michelin’s use each year. Mr. Wilkins paid for these items using a company issued credit card or with his own funds for which he was reimbursed. Beginning in January, 2009 Mr. Wilkins began using the company issued credit card for non-authorized items which he converted to his own use. Additionally, Mr. Wilkins turned in false expense account vouchers claiming that he had made company purchases, which he had not, and received monetary reimbursements for such vouchers. This pattern of theft continued until December, 2014.
Mr. Wilkins will be sentenced at a later date after completion of a Presentence Investigative report.
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Eighth Circuit Court of Appeals Affirms Conviction and Sentence for Sexual Abuse of a Minor and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announces that the Eighth Circuit Court of Appeals has affirmed the district court in appeal no. 15-2150, United States of America, appellee, v. Stoney End of Horn, appellant.
End of Horn was convicted by a jury of four counts of sexual abuse of a minor and one count of assault resulting in serious bodily injury. The district court sentenced End of Horn to concurrent sentences of 293 months’ imprisonment for each count of sexual abuse and another concurrent sentence of 120 months’ imprisonment for the assault.
In September 2008, End of Horn was out drinking with his girlfriend, Pauline Brave Crow, in Mobridge, South Dakota. Towards the end of the evening he agreed to give his cousin and two of his cousin’s friends a ride to Wakpala, South Dakota, in Brave Crow’s car.
During the drive, End of Horn and Brave Crow began to argue. End of Horn stopped the car and continued to argue with Brave Crow. End of Horn struck Brave Crow in the face with his open palm, and the two got out of the car, continuing to argue. As the argument began to escalate, the other passengers decided to walk into Wakpala. They left Brave Crow and End of Horn at the side of the road.
Sometime later, a passing motorist encountered Brave Crow’s vehicle on the side of the road to Wakpala. At trial, that witness testified that when she stopped behind the parked car, she saw End of Horn hitting Brave Crow repeatedly.
Brave Crow suffered a serious fracture, known as a LeFort III fracture, in the bones of her face. She sustained broken bones in her upper jaw and face, facial swelling and bruising on the left side of her face, and bruising under both eyes. End of Horn blamed the assault on a group of hitchhikers he encountered while driving to Wakpala. No hitchhikers were ever identified, and End of Horn himself sustained no injuries.
Brave Crow was “very, very quiet” when interviewed, and she did not identify her assailant when hospitalized. Brave Crow’s injuries required multiple surgeries. Her health deteriorated, and she eventually died on June 25, 2010, as a result of complications from injuries caused by the assault.
The evidence concerning sexual abuse centered on the testimony of a young victim, who was 12 years old when the abuse occurred. The victim lived with End of Horn and Brave Crow in McLaughlin. She testified that End of Horn’s sexual abuse happened once a month from April through July 2010. The sexual abuse happened while she was staying at the house of End of Horn’s father in Wakpala.
A grand jury charged End of Horn with second-degree murder and assault resulting in serious bodily injury based on the attack on Brave Crow. A separate grand jury charged him with multiple counts of sexual abuse of a minor. By agreement of the parties, the cases were consolidated for trial. A jury convicted End of Horn of assault, murder, and four counts of sexual abuse. The district court concluded that the second-degree murder charge required proof that Brave Crow’s death occurred within a year and one day of the assault. Because the interval between assault and death was 21 months, the court set aside the verdict on the murder count. The court then sentenced End of Horn on the remaining counts to four concurrent terms of imprisonment of 293 months for the sexual abuse and 120 months for the assault.
End of Horn appealed to the United States Court of Appeals for the Eighth Circuit, challenging the evidence supporting his conviction, some trial evidentiary rulings, and the length of his sentence. The appellate court found that the evidence supported the charges for which End of Horn was convicted, that any erroneous evidentiary rulings were harmless given the other uncontested evidence, and that the district court acted within its discretion in imposing its sentence.
This case was investigated by the United States National Park Service, the Bureau of Indian Affairs, and the Federal Bureau of Investigation. Assistant United States Attorney Troy R. Morley prosecuted the case at trial and handled the appeal for the government.
Eight People Charged with Making Their Homes Available for Drug Distribution in Winooski, VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont today announced federal criminal charges against eight individuals accused of making six different residences on a three-block stretch of Malletts Bay Avenue in Winooski, Vermont available for drug activity. These charges resulted from a long-term investigation into the distribution of heroin and crack cocaine in Winooski. The individuals charged today are alleged to have facilitated drug dealers who distributed over a kilogram of heroin and significant amounts of crack cocaine in 2014 and 2015.
The charges announced today involve the following individuals:
• Aja Trieb, age 33, for controlling an apartment at 12 Malletts Bay Avenue in Winooski, VT, and making it available for drug activity.
• Cory Barnier, age 27, and Takorian Hackney, age 31, for controlling an apartment at 33 Malletts Bay Avenue in Winooski, VT, and making it available for drug activity.
• Kerry Rivard, age 36, for controlling an apartment at 37 ½ Malletts Bay Avenue in Winooski, VT, and making it available for drug activity.
• Rachel Gentes, age 37, and Sarah Little, age 47, for controlling an apartment at 74 Malletts Bay Avenue in Winooski, VT, and making it available for drug activity.
• Anne Weber, age 32, for controlling an apartment at 94 Malletts Bay Avenue in Winooski, VT, and making it available for drug activity.
• Tracy Korf, age 53, for controlling an apartment at 98 Malletts Bay Avenue in Winooski, VT, and making it available for drug activity.
In announcing these charges, United States Attorney Eric Miller focused on the multi-layered law enforcement approach necessary to combat the trafficking of heroin and other drugs in Vermont, stating, “Individuals who make their homes available for the purpose of drug distribution play an indispensable role in drug trafficking by giving drug dealers a safe haven from which to operate and peddle their poison. As this lengthy investigation demonstrates, we are committed to going after not only those traffickers who bring drugs to Vermont, but also those facilitators who allow drug dealers to operate and thrive within our communities.”
The Drug Enforcement Agency (DEA) led the investigation resulting in this morning’s arrests. “DEA is committed to investigating and dismantling drug trafficking organizations and those who facilitate their operations,” said Special Agent in Charge Michael J. Ferguson. “DEA will aggressively pursue organizations or individuals who facilitate heroin and crack cocaine trafficking by allowing out of state dealers to utilize their residences and provide customers to the dealers in order to profit and destroy people’s lives, and wreak havoc in Vermont. This investigation demonstrates the strength and continued commitment of our local, state, and federal law enforcement partners."
The charges announced today are the latest in a series brought by federal prosecutors arising out of the DEA’s investigation into a drug distribution ring operating in Vermont under the direction of Michael Villanueva, whose nickname is “Unc.” Between 2014 and 2015, Villanueva and his associates trafficked a significant amount of heroin, crack cocaine, and other drugs in Vermont. For much of this time, Villanueva lived at an apartment in St. Albans, but most of the group’s drug distribution occurred in Winooski, with Villanueva and his co-conspirators operating out of the residences on Malletts Bay Avenue listed in today’s indictments. At a press conference discussing his decision to charge the facilitators federally, Miller pointed to the “cumulative and concentrated impact of drug distribution activity at so many homes along one street in the heart of Winooski.”
The ongoing investigation into drug trafficking by Villanueva and his associates has already resulted in multiple federal convictions:
• On June 10, 2016, Michael Villanueva a.k.a. “Unc” pled guilty to a conspiracy to distribute over a kilogram of heroin and over 280 grams of crack cocaine between July 2014 and September 2015.
• On June 2, 2015, Tyrone Dixon pled guilty to possessing crack cocaine with intent to distribute. Dixon was arrested in January 2015 after agents found 80 grams of crack cocaine hidden inside a loaf of bread within the car he was driving. Dixon admitted in Court to working with “Unc.” Dixon was sentenced to 18-months imprisonment.
• On November 16, 2015, Robert Young pled guilty to conspiracy to distribute heroin. Young was sentenced to 33-months imprisonment.
• On January 6, 2016, Emily Lasell pled guilty to conspiring with Dixon and others to distribute crack cocaine.
• On February 2, 2016, Angela Hoffman pled guilty to a conspiracy to distribute heroin and crack cocaine. Angela Hoffman was arrested in July 2015 after agents seized a significant amount of heroin and crack cocaine from a hotel room in Williston. She admitted to working with and at the direction of “Unc.”
• On May 12, 2016, John Hoffman pled guilty to a conspiracy to distribute heroin and crack cocaine. John Hoffman was also arrested in July 2015 and admitted to distributing heroin and crack cocaine at various locations in Vermont at the direction of “Unc.”
• On July 19, 2016, Sarah Ellwood pled guilty to making her residence in St. Albans available for Villanueva and others to engage in drug activity.
The sentences for each of the defendants who are yet to be sentenced will be advised by the federal sentencing guidelines. Villanueva faces a maximum sentence of life imprisonment with a mandatory minimum of 10-years imprisonment. The defendants charged for making their homes available for drug distribution face a maximum sentence of 20-years imprisonment.
In addition, earlier this week, a federal grand jury returned an indictment charging Dorsey Hunt and Felicia Livingston with conspiring with Villanueva and others to distribute heroin and crack cocaine. The pending charges against Hunt and Livingston are merely accusations and they are presumed innocent until and unless they are proven guilty. Similarly, the charges announced today against the individuals on Malletts Bay Avenue are merely accusations and they are also presumed innocent until and unless they are proven guilty.
In announcing the charges against the individuals who facilitated drug distribution in Winooski, U.S. Attorney Miller praised the agencies that participate in the DEA’s Drug Task force and assisted in the ongoing investigation and resulting arrests, which included the Vermont State Police, the Winooski Police, the Burlington Police, the Essex Police, the Chittenden County Sheriff’s Office, the United States Marshals Service, and the United States Border Patrol.
The United States is represented in these cases by Assistant United States Attorneys Kunal Pasricha and Michael Drescher.
Eagle Butte Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assaulting, Resisting, Opposing, and Impeding a Federal Officer was sentenced on July 18, 2016, by U.S. District Judge Roberto A. Lange.
Norman Blue Coat, age 33, was sentenced to 27 months in custody, followed by 2 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Blue Coat was indicted by a federal grand jury on February 17, 2016. He pled guilty on April 18, 2016.
The conviction stems from a November 11, 2015, incident when a Cheyenne River Sioux Tribe Police Officer drove alongside Blue Coat and a female that were arguing and asked them if all was okay. Both said yes. The female appeared to be crying. The officer then asked Blue Coat if he had been drinking, and he denied it. The officer told the couple to stop walking several times, but they ignored him. When the officer told the couple to walk to his patrol car, Blue Coat became uncooperative. The officer grabbed Blue Coat’s left arm and began escorting him to the patrol car. Blue Coat used his arm to shrug off the officer and push away from him. The officer again told him to walk to the patrol car. Once the three of them were at the patrol car, the officer called for assistance. He told Blue Coat he could smell alcohol on his breath and asked him to perform a PBT. Blue Coat began arguing with the officer. The officer told Blue Coat he was going to handcuff/arrest him, and Blue Coat took three to four steps back. The officer grabbed hold of him, Blue Coat struggled, and the officer took him to the ground. He continued to struggle, grabbing the officer’s shirt and pulling the officer as close to him as possible. Blue Coat bit the officer on the right bicep. Other officers had arrived and they turned Blue Coat onto his stomach and handcuffed him.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Blue Coat was immediately turned over to the custody of the U.S. Marshals Service.
Drug Trafficker who Tortured Co-Conspirator over ‘Stolen’ Drugs Sentenced to 15 Years in PrisonRead the Press Release
A leader of a large drug trafficking group who tortured a co-conspirator to get information about a missing shipment of drugs, was sentenced today in U.S. District Court in Seattle to 15 years in prison for three federal felonies related to the drug enterprise, announced U.S. Attorney Annette L. Hayes. RAMON ZAVALA-ZAZUETA, 44, of Kent, Washington was arrested in August 2015 hiding in a closet of his residence with a loaded semi-automatic pistol. In the residence were heroin and drug trafficking materials. During the course of the investigation law enforcement seized more than 29 pounds of meth, more than 18 pounds of heroin, six pounds of cocaine, approximately $178,000 in cash and 16 firearms, including five assault rifles. At the sentencing hearing U.S. District Judge Marsha J. Pechman said, “What you’ve done is extraordinarily serious. It is blight on the United States and on your home country of Mexico…. After you are released, go back to Mexico and do not return.”
“No one wants to live in a community impacted by the drugs and violence that this defendant is responsible for,” said U.S. Attorney Annette L. Hayes. “I commend the federal, state and local law enforcement agencies that worked together to eliminate this threat from our midst. Western Washington is a better place because of their hard work.”
The investigation involved court authorized wire-taps and extensive surveillance of members of the criminal group who trafficked large amounts of heroin and methamphetamine to the Northwest from California and Mexico. When law enforcement moved in to make arrests they served search warrants on seventeen residences, three storage facilities and more than a dozen vehicles tied to the criminal group. Search warrants were executed in: Auburn, Bellevue, SeaTac, Seattle, Tukwila, Renton, Kent, Port Orchard, and Everett, Washington. In all 22 defendants were charged in the case.
The investigation revealed that ZAVALA-ZAZUETA was not only bringing multiple pound loads of meth and heroin into Western Washington, he was obtaining firearms and sending them south to Mexico where drug cartels use them in their drug trafficking activities. ZAVALA-ZAZUETA was at times trading drugs for stolen guns. Some of the firearms recovered were two AR-15 style rifles, and two handguns.
ZAVALA-ZAZUETA used one of the handguns to threaten a co-conspirator who he thought had information about a lost load of methamphetamine. ZAVALA-ZAZUETA brought the co-conspirator and later the co-conspirator’s wife to his residence, tied the man up with duct tape, beat him, put a gun to his head, and used a red-hot knife to burn him. ZAVALA-ZAZUETA tortured the man in an attempt to get information about the load of drugs he thought had been stolen.
Those sentenced to date in this case include:
Ediberto Asevez Santillano, 36, of Renton, Washington – ten years in prison
Brian Christensen, 40, of Port Orchard, Washington – seven years in prison;
Will Edward Brambila, 27, of Kent, Washington – four years in prison;
Sendhy Amairany Felix Acevez, 22, of SeaTac, Washington – three years in prison;
Francisco Flores Penuelas, 44, of Kent, Washington – three years in prison;
Hanzel Knight, 43, of Auburn, Washington – five years in prison;
Heriberto Pacheco Juarez, 23, of Kent, Washington – five years in prison;
Alfonso Leos Villasenor, 21, of Kent, Washington – five years in prison;
Steven James Montgomery, 53, of Edmonds, Washington – four years in prison;
Ricardo Topete, 25, of Seattle – four years in prison.
Clarence Daniels, 36, of Kent, Washington – seven years in prison.
Joseph Moore, 49, Kent, Washington – five years in prison.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The investigation was led by the Drug Enforcement Administration, the FBI and the Seattle Police Department. The searches and arrests involved agents and officers from: Homeland Security Investigations – Seattle, Port of Seattle Police Department, Washington State Patrol, Snohomish County Sheriff’s Office, Snohomish Regional Drug And Gang Task Force, King County Sheriff’s Office, Kitsap County Sheriff’s Office, Lynnwood Police Department, Kent Police Department, Renton Police Department, Auburn Police Department, Tukwila Police Department, Federal Way Police Department, and the Pierce County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Thomas Woods.
District Man Pleads Guilty to Murder Charge in Broad Daylight Slaying of Man Near Public LibraryRead the Press Release
WASHINGTON – Alphonso Roberts, 32, of Washington, D.C., pled guilty today to a charge of second-degree murder while armed for killing a man earlier this year outside a public library, announced U.S. Attorney Channing D. Phillips, Michael Boxler, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
In another case, Roberts pled guilty earlier this week to a federal firearms offense.
Today’s plea, in the Superior Court of the District of Columbia, involved the Feb. 10, 2016 slaying of Maurico Walker. It followed a guilty plea on July 18, 2016, in the U.S. District Court for the District of Columbia, to a federal charge of illegal possession of a firearm.
The pleas, subject to approval in their respective courts, call for Roberts to serve a total of 20 years in prison. The plea agreements call for Roberts to be sentenced to 20 years in prison in the murder case and 15 years in the firearms case, to run concurrently. The Honorable Robert E. Morin scheduled sentencing in the murder case for Sept. 16, 2016. The Honorable Reggie B. Walton scheduled sentencing in the firearms case for Oct. 14, 2016.
According to the government’s evidence, the murder took place on Feb. 10, 2016, outside the Anacostia Library, in the 1800 block of Good Hope Road SE. The chain of events began at 4 p.m. in the 2100 block of R Street SE, nearby. The victim, Maurico Walker, 23, and another person had been checking for unlocked car doors in the area. Roberts, who resided nearby, spotted the second person taking items from his Volvo. Roberts confronted the two, and they walked away. Moments later, as Mr. Walker and the second person were walking over the grass lot adjacent to the library Roberts came by in his Volvo. He pulled to the curb, got out of the vehicle, pulled out a handgun and began shooting. Mr. Walker ran back through the lot, but was shot in the back and head and collapsed. He later died from these injuries.
The firearms charge stems from a search conducted on Feb. 25, 2016, at Roberts’s apartment. During the search, officers recovered, among other items, a loaded Glock 9-millimeter semi-automatic handgun from the top shelf of a bedroom closet. The gun was not the murder weapon. Roberts, who had an earlier felony conviction, was legally barred from possessing any firearm. He was arrested following the search and has been in custody ever since.
In announcing the plea, U.S. Attorney Phillips, Special Agent in Charge Boxler, and Chief Lanier commended the work of those who investigated the case from the Metropolitan Police Department and ATF’s Firearms Technology Branch. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S Attorney Natalia Medina, who is prosecuting the firearms case, and Assistant U.S. Attorney Lindsey Merikas, who is prosecuting the murder case.
District Man Pleads Guilty to Charges in Recent Shoot-Out in Northeast WashingtonRead the Press Release
WASHINGTON – Leroy Robinson, 32, of Washington, D.C., has pled guilty to charges stemming from a recent shoot-out that took place in broad daylight in Northeast Washington, U.S. Attorney Channing D. Phillips announced today.
Robinson pled guilty on July 20, 2016, in the Superior Court of the District of Columbia, to charges of assault with a dangerous weapon and unlawful possession of a firearm. He is to be sentenced on Sept. 23, 2016 by the Honorable Neil E. Kravitz. Robinson faces a statutory maximum of 10 years in prison on the assault with a dangerous weapon charge and 15 years on the unlawful possession of a firearm charge. Because he has a prior conviction for a crime of violence, he faces a statutory minimum of three years in prison. Under the District of Columbia Voluntary Sentencing Guidelines, he faces a likely range of 36 to 72 months in prison.
In entering his guilty plea, Robinson admitted to being an initial aggressor in a shoot-out that occurred in broad daylight on the morning of June 1, 2016. According to the evidence, at approximately 9:45 a.m., Robinson and an unknown suspect exchanged gunfire with a group of individuals in the 1300 block of Brentwood Road NE. Surveillance video shows Robinson and the unknown suspect firing gunshots in the direction of two parked cars. The video further shows the muzzle flash of Robinson’s firearm moments after an innocent civilian entered into one of these cars. As a result of the gunshots, the side and rear windows of the civilian’s car were destroyed. Numerous gunshots also struck the front driver’s side and rear of the civilian’s vehicle, which was riddled with bullets. Amazingly, none of these bullets struck the civilian.
Robinson was struck by a bullet and crawled away from the scene. When law enforcement arrived, they saw him in a grassy area across from the area of the shooting, suffering from a gunshot wound. Law enforcement also found an empty gun holster on his waistband.
In announcing the plea, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the work of Assistant U.S. Attorneys Tamika Griffin and Richard Barker, who investigated and prosecuted the case.
Dickinson Man Gets Significant Sentence for Distributing Child Pornography via Social MediaRead the Press Release
GALVESTON, Texas – A 51-year-old resident of Dickinson has been ordered to prison for nearly 20 years following his conviction of distribution, receipt and possession of child pornography, announced U.S. Attorney Kenneth Magidson. Richard Wayne Barton pleaded guilty Feb. 8, 2016.
Today, U.S. District Judge George C. Hanks Jr. took into consideration the fact that Barton created and administered a social media website where child pornography was made available, including images containing bondage, bestiality and children under the age of 12 engaged in sex acts. Barton received a sentence of 235 months in federal prison and was ordered to pay restitution to known victims. He was further ordered to serve 10 years of supervised release following completion of his prison term, during which time he will have 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.
The investigation revealed Barton was making child pornography available to others through the website he created and administered. Law enforcement executed a search warrant Feb. 19, 2015, at which time agents seized computer media including external hard drives which led to the discovery of more than 16,500 digital images and approximately 1,100 videos containing minors engaged in sexual activity.
A grand jury indicted Barton Sept. 17, 2015. He later appeared for a detention hearing and was found to be a danger to the community and ordered into custody. He has been and will remain there pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was initiated based on a cyber-tip from a web domain hosting company. Homeland Security Investigations 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."
Defendants Charged with Participating in Sophisticated International Cell Phone Fraud SchemeRead the Press Release
Criminal charges were unsealed against multiple defendants relating to their participation in a sophisticated global cell phone fraud scheme, involving the takeover or compromise of cell phone customers’ accounts and the “cloning” of their phones to make fraudulent international calls.
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 and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Ramon Batista, aka Porfirio, 49, of Orlando, Florida; Edwin Fana, 36, of Miami Gardens, Florida; and Jose Santana, aka Octavio Perez, 52, of Royal Palm Beach, Florida, made their initial appearances in court this week after being arrested or self-surrendering. Batista, Fana and Santana were each charged in U.S. District Court for the Southern District of Florida with one count of conspiracy to commit wire fraud; access device fraud; the use, production or possession of modified telecommunications instruments; and the use or possession of hardware or software configured to obtain telecommunications services, as well as additional counts of wire fraud and aggravated identity theft.
According to the indictment, the defendants and their co-conspirators participated in a scheme to steal access to and fraudulently open new cell phone accounts using the personal information of individuals around the United States. The conspirators then trafficked in the cell phone customers’ telecommunication identifying information, using that data as well as other software and hardware to reprogram cell phones that they controlled to transmit thousands of international calls to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the victims’ compromised accounts.
Moreover, according to allegations in the indictment, as part of the scheme, the conspirators used the reprogrammed cell phones and additional telecommunications equipment to run illegal call-termination businesses—contracting with calling card companies, Voice over Internet Protocol providers and other telecommunications companies nationwide—in which the defendants routed international calls for payment and then transmitted those calls through the reprogrammed phones without paying for access to the phone companies’ networks. In so doing, they pushed costs from themselves to cell phone customers around the country and those customers’ cell phone providers, which typically absorbed the costs for the fraudulent international calls, according to the indictment.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the bureau’s ongoing effort to combat large-scale telecommunications fraud. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
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.
Defendants Charged with Participating in Sophisticated International Cell Phone Fraud SchemeRead the Press Release
Criminal charges were unsealed against multiple defendants relating to their participation in a sophisticated global cell phone fraud scheme, involving the takeover or compromise of cell phone customers’ accounts and the “cloning” of their phones to make fraudulent international calls.
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 and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Ramon Batista, aka Porfirio, 49, of Orlando, Florida; Edwin Fana, 36, of Miami Gardens, Florida; and Jose Santana, aka Octavio Perez, 52, of Royal Palm Beach, Florida, made their initial appearances in court this week after being arrested or self-surrendering. Batista, Fana and Santana were each charged in U.S. District Court for the Southern District of Florida with one count of conspiracy to commit wire fraud; access device fraud; the use, production or possession of modified telecommunications instruments; and the use or possession of hardware or software configured to obtain telecommunications services, as well as additional counts of wire fraud and aggravated identity theft.
According to the indictment, the defendants and their co-conspirators participated in a scheme to steal access to and fraudulently open new cell phone accounts using the personal information of individuals around the United States. The conspirators then trafficked in the cell phone customers’ telecommunication identifying information, using that data as well as other software and hardware to reprogram cell phones that they controlled to transmit thousands of international calls to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the victims’ compromised accounts.
Moreover, according to allegations in the indictment, as part of the scheme, the conspirators used the reprogrammed cell phones and additional telecommunications equipment to run illegal call-termination businesses—contracting with calling card companies, Voice over Internet Protocol providers and other telecommunications companies nationwide—in which the defendants routed international calls for payment and then transmitted those calls through the reprogrammed phones without paying for access to the phone companies’ networks. In so doing, they pushed costs from themselves to cell phone customers around the country and those customers’ cell phone providers, which typically absorbed the costs for the fraudulent international calls, according to the indictment.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the bureau’s ongoing effort to combat large-scale telecommunications fraud. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
Court Shuts Down Dallas Tax Return PreparerRead the Press Release
A Dallas-area tax return preparer continually and repeatedly prepared federal income tax returns that contained false or inflated deductions and credits, according to a 2015 lawsuit filed by the Justice Department. Now a federal court has permanently barred the defendants in that case from preparing federal tax returns for others.
According to the 2015 complaint, Allan Ukiru Kadagi, Akay Tax Services, Akay Express Tax Services, Akay Express Tax Services Inc. and Cleanshine Tax Services prepared returns for their customers that claimed false, improper, or inflated business expense deductions and false, improper, or inflated education expenses and credits. As a result, their customers repeatedly reported and paid less tax than they owed, according to the complaint. The returns also claimed the earned income tax credit beyond what the customers were eligible to receive, the complaint alleged. The complaint further alleges that Kadagi and the companies misused Preparer Tax Identification Numbers and Kadagi did not provide true copies of tax returns filed with the Internal Revenue Service (IRS) to his clients.
The court order requires the defendants to turn over to the United States a list of all persons for whom they prepared federal tax returns since Jan. 1, 2014. It also authorizes the United States to monitor the defendants’ compliance with the terms of the injunction.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Colorado Man Charged with Conspiracy to Distribute Methamphetamine and Possession of FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Colorado man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance, Possession of a Controlled Substance, and Possession of a Firearm by a Prohibited Person.
James Andrew Boswell, age 29, was indicted on June 14, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 20, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, 3 years and up to life of supervised release, $100 to the Federal Crime Victims Fund, and the potential forfeiture of two firearms and U.S. currency seized as part of the investigation. Restitution may also be ordered.
The Indictment alleges that between April 1, 2016, and June 14, 2016, Boswell conspired and agreed with other persons to knowingly and intentionally distribute and possess with intent to distribute methamphetamine in South Dakota. The Indictment also alleges that on or about May 9, 2016, at Lower Brule, South Dakota, Boswell possessed a firearm, even though he was prohibited from doing so because he was a fugitive from justice and an unlawful user of and addicted to a controlled substance.
The charges are merely an accusation and Boswell is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Bureau of Indian Affairs, Lower Brule Agency, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Boswell was released pending trial. A trial date has not been set.