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Wednesday 1 June 2016

• The Leader in the Largest Methamphetamine Distribution Organization in Okeechobee County History Sentenced to 25 Years in Prison

  Southern District of Florida

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  Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, Paul C. May, Sheriff, Okeechobee County Sheriff’s Office (OSO), and John J. Burke, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), Fort Myers Regional Operation Center-Sebring Field Office, announce the sentencing of Steven Lee Oakes, a/k/a “Wildman,” 59, of Davenport, the leader in a methamphetamine distribution network involving fifteen co-conspirators that operated in and around Okeechobee and Highlands Counties.  Each of the fifteen defendants pled guilty to various narcotics trafficking offenses, in the matter of United States v. Steven Lee Oakes, et al., 15-CR-14046. 

  United States District Judge Jose E. Martinez sentenced Oakes to 300 months in prison, to be followed by five years of supervised release.  Oakes was the last of the defendants to be sentenced, as part of a coordinated law enforcement effort to combat the methamphetamine epidemic.  The co-conspirators were previously sentenced to the following terms of imprisonment:

  • Steven Lee Oakes300 months

  • Jetta Lyn Frake 70 months

  • Lacy Junior Locklear188 months

  • Stephen Patrick Hall, Jr.190 months

  • Daniel John Alsdorf96 months

  • James “Buddy” Carter87 months

  • Teresa Lee Green90 months

  • Tanner Lynn Carter48 months

  • Felisha Michelle Leitner70 months

  • David Allen Sparks60 months

  • Jamie Lea Hewitt121 months

  • Jessica Marie Bell65 months

  • Vickie Lynn Johnson90 months

  • Travis Wayne Carr70 months

  • Timothy Dale Reid70 months

  United States Attorney Wifredo A. Ferrer stated, “Steven Lee Oakes and his organization poisoned our communities with illicit drugs.  Mr. Oakes was held accountable in a court of law for infecting our local neighborhoods with his narcotics trafficking enterprise.  However, the prosecution of Oakes and his conspirators has not put an end to this problem.  The unlawful distribution of methamphetamines continues to pose a risk to our communities at alarming rates.  The U.S. Attorney’s Office and our federal, state and local law enforcement partners are committed to identifying for prosecution those who place the public’s safety and quality-of-life in jeopardy.”

  DEA Special Agent in Charge A.D. Wright stated, “These convicted drug traffickers rightfully deserved the sentences they received.  Justice was served for the residents of Okeechobee County.  Methamphetamine is a poison.  Those who were selling this poison in their neighborhoods can no longer continue to do so.  The DEA is proud to work with our law enforcement partners in achieving such outstanding results.  Our partnership is a strong and unstoppable force to be reckoned with.”

  Sheriff Paul C. May, Okeechobee County, stated, “The defendants brought large amounts of methamphetamines into Okeechobee County and surrounding areas.  With the help of our federal, state and local law enforcement partners, the defendants were brought to justice and a dent was placed in the illegal trafficking of methamphetamines, in and around our county.  We will continue to work with our allies to identify for prosecution those who bring illicit narcotics into our communities.”

  FDLE Special Agent in Charge John J. Burke stated “FDLE remains committed to combatting the problem of illicit narcotics throughout our state. We welcome the opportunity to partner with federal and local agencies to ensure that those who seek to poison our population to feed their own greed find no safe haven in Florida. This operation is a credit to the agencies who investigated as well as the prosecutors who guided the case to this successful conclusion.”

  The federal indictment was prosecuted by Assistant U.S. Attorney Courtney L. Coker and Special Assistant United States Attorney Ryan L. Butler.   

  This case was the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies.  The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.

  Mr. Ferrer commended the collaborative efforts of the U.S. Attorney’s Office for the Middle District of Florida and the Okeechobee County Office of the State Attorney.   Mr. Ferrer thanked the OCDETF law enforcement agencies that assisted with this multi-faceted investigation, including the DEA, Okeechobee County Sheriff’s Office Narcotics Task Force, FDLE’s Fort Myers Regional Operations Center Sebring Field Office, Highlands County Sheriff’s Office, the Okeechobee Police Department, Glades County Sheriff’s Office, Saint Lucie County Sheriff’s Office, Fort Pierce Police Department, the Fort Pierce Offices of the United States Marshals Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HIS), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Port Saint Lucie Police Department, Martin County Sheriff’s Office, United States Border Patrol, and Indian River County Sheriff’s Office

  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

  View the Original Release on justice.gov

• State Prison Inmate Sentenced to 21 Months in Federal Prison for Mailing Threatening Letter to the President

  Western District of Pennsylvania

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  PITTSBURGH – An inmate of SCI Somerset, in Somerset, Pennsylvania, pleaded guilty and was sentenced in federal court on a charge of making threats against the President, United States Attorney David J. Hickton announced today.

  Julio Segura, Jr., 22, pleaded guilty to one count and was sentenced to 21 months of imprisonment by United States District Judge Nora Barry Fischer.

  In connection with the guilty plea, the court was advised that while housed at SCI Somerset, Segura mailed a letter to the White House threatening President Obama.

  Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.

  The United States Secret Service conducted the investigation that led to the prosecution of Julio Segura, Jr.

  View the Original Release on justice.gov

• South Carolina Club Owners Sentenced to More Than Three Years in Prison for Money Laundering and Drug Conspiracy

  Northern District of California

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  SAN FRANCISCO – South Carolina businessmen Vladimir Handl and Michael Rose each were sentenced to more than three years in prison for their respective roles in a racketeering, money-laundering, and drug trafficking scheme, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. Pursuant to the sentences handed down yesterday by United States District Judge William Alsup, Handl was sentenced to 44 months in prison, and Rose was sentenced to 40 months in prison.

  Handl, 38, and Rose, 45, both operated clubs and restaurants in Myrtle Beach, South Carolina at the time of their involvement in the charged scheme.  Handl owned and operated a night club called Heat Lounge in Myrtle Beach, and Rose operated several strip clubs in South Carolina, Delaware, and New Hampshire under the name “The Gold Club.”   

  Handl and Rose are two of the eleven defendants charged in a superseding indictment filed on March 24, 2015, for their alleged participation in a conspiracy to conduct a criminal enterprise through a pattern of racketeering.  According to the indictment, between 2011 and 2015, the defendants knowingly accepted more than $2.3 million that they believed either had been fraudulently diverted from a bankruptcy court proceeding or were the proceeds of drug trafficking.  After they each received cash from undercover FBI agents, the defendants laundered the money through fake business entities.  As part of the scheme, the defendants created fraudulent invoices, contracts, and other business records to make it appear that the cash they received and then returned as “cleaned” funds was for legitimate business transactions.  During the scheme, Handl also sought to purchase kilograms of cocaine, and Rose agreed to assist with the drug transaction.  Handl and Rose, among others, where charged with racketeering conspiracy, in violation of 18 U.S.C. § 1962(d).  Handl and Rose also were charged with substantive racketeering, in violation of 18 U.S.C. § 1962(c), and conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h).  In addition, Handl was charged with 118 counts of money laundering, in violation of 18 U.S.C. § 1956(a)(3); and conspiring to distribute cocaine, in violation of 21 U.S.C. § 846.  Rose was charged with 105 counts of substantive money laundering and conspiring to distribute cocaine. Rose pleaded guilty to all the charges.  Handl was found guilty after a bench trial before Judge Alsup in which Handl acknowledged he would not contest any of the facts alleged in the superseding indictment.

  In addition to the prison terms, Judge Alsup also imposed a term of three years of supervised release on each defendant.  Rose also was ordered to pay a fine of $15,000.  Both defendants remain free on bond.  The defendants have been ordered to surrender and begin serving their sentence no later than August 1, 2016, for Handl and August 2, 2016, for Rose.

  Assistant United States Attorneys Lloyd Farnham and Andrew Dawson are prosecuting the case with the assistance of Michelle Alter, Yanira Osorio, and Marina Ponomarchuk.  The prosecution is the result of an investigation by the Federal Bureau of Investigation.  

  View the Original Release on justice.gov

• San Diego’s Harper Construction Pays $5.4 Million to Resolve Allegations of Defrauding the United States

  Southern District of California

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  Assistant U.S. Attorney Dylan M. Aste (619) 546-7621

  NEWS RELEASE SUMMARY – June 1, 2016

  SAN DIEGO – Harper Construction Company, Inc. has paid $5.4 million to the United States to resolve allegations that it fraudulently billed the government for work on multiple projects on military bases.  It was alleged that Harper knowingly used sham small disadvantaged businesses and then falsely certified to the government that it used legitimate small disadvantaged businesses.

  Harper is a large, privately-held general contractor headquartered in San Diego.  Harper earns a substantial portion of its revenue through government contracting on construction projects across the country.

  The settlement involves four government contracts to construct facilities at Camp Pendleton and Camp Lejeune.  The contracts required Harper to subcontract a certain percentage of work to small disadvantaged businesses.  Such requirements arise from measures intended to ensure that a fair proportion of federal contract and subcontract dollars are awarded to small businesses.  It was alleged that Harper claimed it met this requirement when, in fact, it subcontracted with sham small disadvantaged businesses.  Also, Harper allegedly required the sham small businesses to pass through all of their work to an affiliated large business, Frazier Masonry Corporation.

  This settlement resolves a False Claims Act lawsuit filed by Rickey Howard, a former employee of Harper subcontractor Frazier Masonry Corporation.  The whistleblower, or qui tam, provisions of the False Claims Act permit the whistleblower (or relator) to recover a portion of the proceeds obtained by the government.  As part of today’s resolution, Mr. Howard will receive $1,485,000. 

  “This type of fraud siphons taxpayer dollars and takes away opportunities for legitimate small businesses for which this money was set aside,” said U.S. Attorney Duffy.  “Whistleblowers are essential in our efforts to recover taxpayer dollars and combat fraud.  We commend the whistleblower for coming forward and making the United States aware of this alleged fraud, and we welcome others who are aware of fraudulent conduct to also blow the whistle on fraudsters.”

  “DCIS and its investigative partners work diligently to expose corrupt contractors that manipulate or circumvent Federal contracting requirements,” stated Special Agent in Charge John F. Khin, Defense Criminal Investigative Service (DCIS), Southeast Field Office.  “DCIS’ earlier investigation of the subcontractors involved in this matter resulted in both criminal and civil actions.  We applaud efforts by concerned citizens and relators to assist our investigative efforts, and help the Government hold companies accountable for undermining the integrity of our contracting system.”

  This case is captioned United States ex rel. Howard v. Harper Constr. Co. Inc., et al., Case No. 3:15-CV-02910-H (KSC) (S.D. Cal.).  In conjunction with an earlier settlement with co-defendants FMC; F-Y, Inc.; CTI Concrete & Masonry, Inc.; Masonry Technology, Inc.; Masonry Works, Inc.; Russell Frazier; and Robert Yowell (United States ex rel. Howard v. Harper Constr. Co. Inc., et al., Case No. 7:12-CV-215-D (E.D.N.C.)), the United States has recovered over $7,000,000 in this matter.

  This matter was handled by Assistant U.S. Attorney Dylan M. Aste of the Affirmative Civil Enforcement Unit of the U.S. Attorney’s Office for the Southern District of California, along with the Commercial Litigation Branch, Fraud Section, Department of Justice and the Defense Criminal Investigative Service.

   

  View the Original Release on justice.gov

• SDTX Employees Honored by Department of Justice at Executive Office for U.S. Attorneys Director’s Awards Ceremony

  Southern District of Texas

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  WASHINGTON – Six current and one former employee of the U.S. Attorney’s Office for the Southern District of Texas (SDTX) were some of the 160 recipients recognized by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony today in Washington D.C. 

  The SDTX was one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building. 

  In her prepared remarks, Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges. From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes and international terrorism, these awardees have taken on our toughest cases. And the citizens of our country are safer because of their work.”  

  “We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people and work to ensure the fair and impartial administration of justice,” said Wilkinson.  

  “These awards demonstrate the significance of the matters we handle every day,” said U.S. Attorney Magidson. “The Assistant U.S. Attorneys (AUSAs) recognized today worked on complex and noteworthy cases, conducting themselves in a truly remarkable fashion that brought national honor to the work we do. They are a great credit to this district and to our community.” 

  Three employees received commendations for superior performance as a criminal Assistant U.S. Attorney (AUSA). 

  AUSA James H. Sturgis was recognized for the prosecution of members of the Panama Unit, an elite counter-drug task force in Hidalgo County. Instead of capturing drug dealers, the Panama Unit’s law enforcement officers stole from those dealers and selling the drugs for a profit. Sturgis ultimately obtained indictments against more than a dozen people, including the Hidalgo County Sheriff, his top commander and several deputies, local police officers, the local CrimeStoppers coordinator and others on drug, money laundering and conspiracy charges. The corrupt officers pleaded guilty and were sentenced to a combined total of 114 years in prison. Thanks to Sturgis’ diligence, the citizens of Hidalgo County and South Texas are reassured that no law enforcement officer is above the law, and that those who violate the laws, especially those in positions of public trust, will be prosecuted and punished. 

  AUSAs Martha A. Minnis and Katherine L. Haden were recognized for their successful criminal prosecution of a family-run fraud business. The Jariv family operated a telemarketing timeshare scheme out of Las Vegas, Chicago, Los Angeles and Houston.  Using nearly a dozen company names, the Jariv family and their employees targeted nearly 1,000 timeshare owners, many retired and elderly, in a $13 million advance fee fraud which lasted from 2007 until 2012. The prosecution resulted in the conviction of seven defendants and the immediate restitution of $2.25 million for the victims.   

  Also honored today was AUSA Andrew A. Bobb for superior performance as a civil AUSA.  

  Bobb reached remarkable civil fraud settlements in eight separate matters, recovering nearly $115 million that had been defrauded from the nation’s taxpayers. Assembling and leading teams of investigators from various federal agencies, Bobb overcame determined opposition from physicians, hospitals, diagnostic testing facilities and corporations, and achieved unparalleled positive results in the fight against fraud. Through his outstanding professionalism, acumen and diligence, he achieved the largest short-stay settlement - $98.15 million - against a single health care provider in our nation’s history, as well as the largest settlement - $4.3 million - against a solo physician in the history of the SDTX. Bobb’s accomplishments are truly exceptional, distinguish him among his peers and reflect great credit upon himself and the Department of Justice. 

  Three others – AUSAs Renata A. Gowie and Lauretta D. Bahry and former AUSA  Jason S. Varnado – were recognized for superior performance as appellate AUSAs.  

  They were honored for their outstanding efforts in United States v. Kuhrt, an appeal of a complex international investment fraud scheme perpetrated by Stanford Financial Group. Corporate officers Mark Kuhrt and Gilbert Lopez Jr. helped Robert Allen Stanford commit one of the largest investment fraud schemes in U.S. history. The scheme involved a certificate of deposit program at Antigua-based Stanford International Bank, Limited. The investment fraud occurred over decades and involved tens of thousands of victims from many countries and multi-billion dollar losses. The Fifth Circuit affirmed the wire fraud convictions and 20-year prison sentences for Kuhrt and Lopez in a published opinion.

  EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.

  View the Original Release on justice.gov

• R.I. Resident Admits to Manufacture, Detonation of a Pipe Bomb

  District of Rhode Island

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  PROVIDENCE, R.I. – Vincent A. Fasano, 26, of Cranston, pleaded guilty in U.S. District Court in Providence today to manufacturing an explosive device, admitting to the court that in October 2015, he manufactured and detonated a pipe bomb which he had placed inside a refrigerator and left in a gravel pit in West Greenwich. The explosion destroyed the appliance.

  Appearing before U.S. District Court Judge John J. McConnell, Jr., Fasano admitted to the court that on October 18, 2015, using items he purchased at a home improvement store in Warwick, including a steel pipe, end caps for the pipe, gun powder, and a cannon fuse, he assembled an explosive device with the intent to detonate it and cause damage.

  Fasano’s guilty plea is announced by United States Attorney Peter F. Neronha, Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police, West Greenwich Police Chief Richard Ramsay, and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of ATF. 

  According to court records, an investigation by West Greenwich Police, the State Fire Marhsal’s Office and agents from ATF led investigators to a home improvement store in Warwick. A check for purchases of items used to build a pipe bomb, as well as scrutiny of store video surveillance, led investigators, with the assistance of the retailer, to determine that Fasano purchased some of those items at the Warwick store. Fasano is seen on story security video making the purchase.

  According to court records, during an interview with investigators on November 10, 2015, Fasano admitted that on October 18, 2015, he manufactured and transported an explosive device, along with a refrigerator, to a remote area of West Greenwich. He admitted that he ignited the explosive device inside the refrigerator and drove away. Fasano told investigators that as he drove away he heard, but did not see the explosion.

  According to court records, Fasano also admitted to investigators that he  previously built and detonated pipe bombs, causing significant damage to mailboxes, a portable latrine outside a pizza shop, and to a toilet.

  Fasano, who has been free on unsecured bond since his arrest on November 17, 2015, is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on August 23, 2016.

  The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.

  ###

  View the Original Release on justice.gov

• Providence Man Pleads Guilty to Trafficking Heroin and Fentanyl

  District of Rhode Island

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  PROVIDENCE, R.I. – Wilson Garcia, 33, of, Providence, pleaded guilty in federal court in Providence today to trafficking heroin and fentanyl. Garcia admitted to the court that on multiple occasions he sold heroin and fentanyl in Rhode Island while on bail and awaiting trial in Massachusetts for allegedly trafficking heroin.

  Wilson, appearing before U.S. District Court Judge John J. McConnell, Jr., pleaded guilty as charged in a federal indictment returned on February 16, 2016, to five counts of distribution heroin, one count of distribution of fentanyl, and one count of distribution of heroin aiding and abetting.

  Garcia’s guilty plea is announced by United States Attorney Peter F. Neronha and Michael J. Ferguson, Special Agent in Charge of DEA in New England.

  According to information presented to the court, on April 9, 2014, Wilson Garcia was arrested on a heroin trafficking charge brought in Wrentham District Court for the Commonwealth of Massachusetts as a result of an investigation conducted by the Norfolk County Police Anti-Crime Task Force.  When it was determined that Garcia was continuing to sell heroin while on bail and awaiting trial in Massachusetts, a subsequent investigation was launched by the DEA Task Force 1 in Boston.

  During the course of the subsequent investigation, between December 2014 and September 2015, an undercover DEA Task Force agent arranged for the purchase of heroin from Garcia on at least six occasions and the purchase of fentanyl on at least one occasion. Six of the deliveries were made to the agent by Garcia at Twin River Casino in Lincoln. One delivery was made to the agent at Garcia’s Providence residence. The transactions resulted in the purchase from Garcia of a total of 20.7 grams of heroin for $2,200 in cash and 2.1 grams of fentanyl for $280 in cash.

  Garcia, who was detained in federal custody at the time of his arrest on September 23, 2015, and subsequently released on $5,000 bond with surety, remains free on $5,000 bond pending sentencing by U.S. District Court Judge John J. McConnell, Jr., on August 23, 2016.

  The case in U.S. District Court in Providence is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.

  ###

  Contact:

  Jim Martin (401) 709-5357

  email: [email protected]

  on Twitter @USAO_RI

  View the Original Release on justice.gov

• Private Equity Fund Manager Indicted in $54 Million Embezzlement Scheme

  District of Massachusetts

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  BOSTON – A Greenwich, Conn. man was indicted today in U.S. District Court in Boston in connection embezzling $54 million from the private equity firm for which he worked.

  Iftikar Ali Ahmed, aka Ifty, 44, was indicted on four counts of wire fraud and three counts of making false statements on income tax returns.  Ahmed is currently a fugitive from justice.  He was charged in a separate scheme in April 2015, and fled the county while on pre-trial release. 

  The indictment alleges that between 2004 and April 2015, Ahmed embezzled more than $54 million from the private equity firm for which he worked as a general partner and fund manager.  Ahmed embezzled the money through an elaborate scheme to defraud in which he submitted false invoices, substantially overstated the prices of international business deals he orchestrated on behalf of his employer, and by setting up fraudulent bank accounts in the name of the private equity firm for which he worked and the companies in which his employer invested. The indictment further alleges that Ahmed used the proceeds of his fraud to purchase a $9.6 million residence in Greenwich, Conn. and a luxury condominium in New York for approximately $8.6 million. 

  On one occasion in November 2014, it is alleged that Ahmed recommended to his private equity firm that it invest $20 million in an international company and justified the price by submitting fraudulent financial documents.  At the same time, Ahmed informed the international company that his employer had agreed to purchase shares for $2 million. The indictment alleges that Ahmed then directed the private equity firm to wire $2 million to another company and the remaining $18 million to an account that Ahmed falsely claimed was the company’s account, but actually belonged to Ahmed.  The indictment further alleges that on Jan. 12, 2015, Ahmed transferred the $18 million in fraud proceeds to his spouse and a portion of these funds was used to purchase a luxury condominium in New York City.

  The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 on each count.  The charge of making false statements in income tax returns provides for a sentence of no greater than three years in prison, one year of supervised release, and a fine of $1 million on each count.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

  United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division in Boston, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney Neil J. Gallagher, Jr. of Ortiz’s Economic Crimes Unit.

  The details contained in the Indictment are allegations.  The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

  View the Original Release on justice.gov

• Peabody Man Pleads Guilty to Child Pornography Charges

  District of Massachusetts

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  BOSTON – A Peabody man pleaded guilty today in U.S. District Court in Boston to receipt and possession of child pornography.

  Patrick Lynch, 24, pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography.  U.S. District Court Judge Richard G. Stearns scheduled sentencing for Sept. 14, 2016. 

  Beginning in May 2013, Lynch began receiving emails containing images and videos of children as young as one year old being sexually exploited.  On Dec. 12, 2014, during the execution of a search warrant at his residence, Lynch admitted to law enforcement officers that he received emails containing pictures of elementary school-aged children naked, posing, and engaging in sexual acts.  He admitted to viewing images of child pornography on a website and to viewing child pornography on his laptop while at a Boy Scout camp in New Mexico.  Lynch also communicated online with children and exchanged sexually explicit images.  Prior to law enforcement executing the search warrant, Lynch deleted the application and cleared his phone’s Internet history. 

  A further investigation revealed that Lynch had been employed at the Greater Beverly YMCA, and had recently begun employment with Beanstalk Adventure Ropes Course in Reading, Mass. 

  The charge of receipt of child pornography provides for a mandatory minimum term of five years and no greater than 20 years in prison.  The charge of possession of child pornography provides for no greater than 20 years in prison.  Both statutes provide for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

  United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today.  Assistance was also provided by the Massachusetts State Police and the Peabody Police Department.  The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz’s Major Crimes Unit.

  The case is brought as part of Project Safe Childhood.  In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse.  Led by the U.S. Attorneys’ Offices and the DOJ’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, as well as identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.      

  View the Original Release on justice.gov

• Pair Pleads Guilty to Methamphetamine Charges

  Western District of Virginia

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  ABINGDON, VIRGINIA – A pair of Southwest Virginia residents pled guilty today in Federal Court to charges related to the manufacturing of methamphetamine, United States Attorney John P. Fishwick Jr. and Virginia Attorney General Mark R. Herring announced.

  Travis Michael Felty, 34, of Wytheville, Virginia, pled guilty today to one count of conspiring to manufacturing methamphetamine, one count of creating a substantial risk of harm to human life while illegally manufacturing or attempting to manufacture methamphetamine, and one count of manufacturing or attempting to manufacture methamphetamine where a minor resided or was present.

  Shanna Ariz Castillo, 31, of Marion, Virginia, pled guilty to one count of conspiring to manufacturing methamphetamine, one count of creating a substantial risk of harm to human life while illegally manufacturing or attempting to manufacture methamphetamine, and one count of manufacturing or attempting to manufacture methamphetamine where a minor resided or was present.

  “We must be vigilant in prosecuting  individuals that manufacture this highly dangerous and addictive substance, especially where children are present or reside,” United States Attorney John P. Fishwick Jr. said today. “We will continue to work with our partners in law enforcement to slow the spread of this deadly drug throughout Virginia.”

  “In recent years, so many families and communities in Southwest Virginia have been hit hard by addiction and by methamphetamine, in particular,” said Attorney General Herring. “Not only can distribution and use of these dangerous drugs put Virginians at risk, but just manufacturing these drugs is an inherently dangerous process that poses significant risk to the public and the community.  My team and I take these cases very seriously and we will continue to work with our federal and local partners to keep Southwest Virginia safe.”

  Agencies involved in this investigation included the Washington County Sheriff’s Office, Town of Abingdon Police Department, Bristol Virginia Police Department, and the Drug Enforcement Administration.  Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States.

  View the Original Release on justice.gov

• Owners of Home Health Care Agency Sentenced to Prison for Taking Part in $80 Million Medicaid Fraud

  District of Columbia

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  Defendants Used Money to Finance a Lavish Lifestyle

  Florence Bikundi, 53, and her husband, Michael D. Bikundi Sr. 63, of Mitchellville, Maryland, and the owners of Global Healthcare Inc., a home care agency, were sentenced today to prison terms for health care fraud, money laundering, and other charges stemming from a scheme in which they and others defrauded the District of Columbia Medicaid program of over $80 million.

  The sentences were announced by U.S. Attorney Channing D. Phillips for the District of Columbia; Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office; Special Agent in Charge Nicholas DiGiulio of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.; Special Agent in Charge Brian J. Ebert of the U.S. Secret Service’s Washington Field Office, and Inspector General Daniel W. Lucas for the District of Columbia (D.C. OIG).

  The two defendants were found guilty on Nov. 12, 2015 in the U.S. District Court for the District of Columbia.  The Honorable Chief Judge Beryl A. Howell sentenced Florence Bikundi to 10 years in prison.  She sentenced Michael D. Bikundi Sr. to seven years in prison.  Following their prison terms, the Bikundis will be placed on three years of supervised release.  Judge Howell earlier ordered them to forfeit over $11 million seized from 76 bank accounts; their residence, worth approximately $1 million; $73,000 in cash seized from their residence and five luxury vehicles with a total purchase price of more than $400,000.  She also imposed a forfeiture money judgment of $39,989,956 on both defendants.  Finally, Judge Howell ordered the defendants to pay $80,620,929 in restitution to D.C. Medicaid.

  “The investigation of this case exposed a massive health care fraud that cheated the District of Columbia Medicaid program of more than $80 million that could have been spent on people who needed services,” said U.S. Attorney Phillips.  “Florence and Michael Bikundi enriched themselves for years by operating a rogue home care agency.  Hopefully the sentences today will serve as a deterrent to other unscrupulous health care providers who aim to steal the taxpayers’ money.”

  “The Bikundis funded their lavish lifestyle by defrauding the District of Columbia’s Medicaid program designed to provide for those in need,” said Assistant Director in Charge Abbate.  “The FBI will continue to pursue criminals who target our health care system in order to protect its integrity and to prevent fraud.  I commend the dedicated agents, analysts and prosecutors who worked to bring this case to justice.”

  “It’s outrageous that fraudster couple Florence and Michael Bikundi stole millions of Medicaid funds meant to provide home health services to vulnerable patients just to fuel their own lavish lifestyle,” said Special Agent in Charge DiGiulio. “But today’s prison sentences show the results of our continued work with other law enforcement agencies to crack down on greedy individuals who rip off government health care programs.”

  “Health care fraud and other similar elaborate fraudulent schemes are not victimless crimes,” said Special Agent in Charge Ebert.  “This type of fraud can have a significant detrimental effect on our nation’s financial infrastructure and our local community’s economy.  The Secret Service will continue to tirelessly pursue justice by investigating and dismantling these types of fraudulent schemes.”

  “I hope this sentence sends a clear message that we will continue to investigate and propose prosecution for anyone who engages in corruption or fraudulent activities against the District government,” said Inspector General Lucas.  “I applaud the hard work of my D.C. OIG Medicaid Fraud Control Unit (MFCU) staff for bringing this case to its rightful close.”

  Florence Bikundi aka Florence Ngwe and Florence Igwacho, has been in custody since her arrest in February 2014.  She was found guilty by the jury of 12 charges: one count of conspiracy to commit health care fraud; one count of conspiracy to commit money laundering, two counts of health care fraud; one count of Medicaid fraud; and seven counts of money laundering.  Michael D. Bikundi Sr. was found guilty of 10 charges: one count of conspiracy to commit health care fraud; one count of conspiracy to commit money laundering, one count of health care fraud; and seven counts of money laundering.

  According to evidence presented at trial, Florence Bikundi, a former nurse and her husband owned Global Healthcare Inc.  According to the government’s evidence, Florence Bikundi was not entitled to take part in the Medicaid program and fraudulently got approval as a provider.  Then, the government’s evidence showed, she and her husband led a scheme to bill Medicaid for services that were not fully provided – recruiting others, including family members, into the scam and creating fraudulent paperwork to hide the illegal activity.

  The D.C. Medicaid program is funded jointly by District of Columbia tax dollars and federal tax dollars.  Medicaid provides for home care services to be performed by personal care aides, working for eligible home care agencies.  Doctors or advanced practice registered nurses must examine beneficiaries and authorize them to receive these services.  The aides are to follow a plan of care and assist Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, keeping track of medication and so forth.

  In 1999, Florence Bikundi went by her maiden name of Florence Igwacho.  In August 1999, the Virginia Board of Nursing revoked the nursing license of Florence Igwacho.  In March 2000, the U.S. Department of Health and Human Services, Office of Inspector General notified Florence Igwacho in writing that she was excluded from participation in Medicare, Medicaid, and all federal health care programs due to the revocation.

  Florence Bikundi subsequently concealed her past – namely, the Medicaid exclusion and the revocation of her nursing license - when she applied for a Medicaid provider number for Global Healthcare in June 2009 using the name of Florence Bikundi.  She also used three forged signatures on her Medicaid provider application.  Florence Bikundi married Michael Bikundi in September 2009. 

  From August 2009 through February 2014, Florence and Michael Bikundi used Global HealthCare to carry out a massive fraud, the government’s evidence showed.  Year after year, the D.C. Medicaid program was billed for personal home health aide services that were not fully provided to Medicaid beneficiaries.  Phony time sheets, patient files and employment files were created.  Global Healthcare generated increasing amounts of payments as the years continued, going from roughly $1.35 million in 2009 to $14.27 million in 2011 to $27.16 million in 2013.

  According to the government’s evidence, the Bikundis used the proceeds to finance a lavish lifestyle.  In just over three years, they spent $1.3 million to purchase and renovate a newly built home.  They also used the proceeds for a $140,000 Land Rover, a $120,000 Porsche, a $75,000 Mercedes Benz, a $70,000 Cadillac and a $36,000 BMW.

  Seven others earlier pleaded guilty to charges in the investigation.  They include Florence Bikundi’s son, Carlson M. Igwacho, 35, of Bowie, Maryland; Florence Bikundi’s two sisters, Irene M. Igwacho, 50, of Bowie, and Berenice W. Igwacho, 31, of Bowie, James Mbide, 55, of Laurel, Maryland; Nicola C. White, 34, of Laurel; Elvis N. Atabe, 57, of Adelphia Maryland, and Melissa A. Williams, 33, of Silver Spring, Maryland.

  Two others were indicted on charges in the investigation but remain fugitives: Christian S. Asongcha, 39, formerly of Lanham, Maryland, and Atawan Mundu John, 39, formerly of Washington, D.C.

  In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate, Special Agent in Charge DiGiulio, Special Agent in Charge Ebert and Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office, the U.S. Department of Health and Human Services, Office of Inspector General and the U.S. Secret Service, as well as a team from the Medicaid Fraud Control Unit of the District of Columbia’s Office of the Inspector General that included Director Brent Wolfingbarger; Special Agents Mike Kellam, Sandra Adams, Victor Richardson and Senior Auditor LaShawn Brooks.  They also expressed appreciation for the assistance of the District of Columbia’s Department of Health Care Finance and other agencies.

  They commended the work of those who prosecuted the case, including Assistant U.S. Attorneys Lionel A. André, Anthony Saler and Michelle Bradford, of the Office’s Fraud and Public Corruption Section.  They acknowledged the efforts of Assistant U.S. Attorney Christopher B. Brown of the Asset Forfeiture and Money Laundering Section, who assisted during the forfeiture proceedings and Criminal Investigator Nicole Hinson, also of the U.S. Attorney’s Office, who was the prosecution’s law enforcement representative during the trial.

  Finally, they expressed appreciation for the assistance in this case and related investigations that was provided by Chief Arvind K. Lal of the Asset Forfeiture and Money Laundering Section; Assistant U.S. Attorneys Zia Faruqui, Ted Radway, Michael Friedman, Chrisellen Kolb and Michelle Zamarin; Financial Analyst Bryan J. Snitselaar; Deputy U.S. Marshal Wayne Rollock of the U.S. Marshals Service; Paralegal Specialists Toni Donato, Donna Galindo, Krishawn Graham, Tasha Harris,  Corinne Kleinman and Kristy Penny; Legal Assistants Angela Lawrence, Jessica McCormick and Christopher Samson; Litigation Support Specialist Ron Royal, and former Forensic Accountant Maria Boodoo.

  View the Original Release on justice.gov

• Owners of Home Health Care Agency Sentenced to Prison for Taking Part in $80 Million Medicaid Fraud

  District of Columbia

  Read the Press Release

              WASHINGTON –Florence Bikundi and her husband, Michael D. Bikundi, Sr., the owners of Global Healthcare, Inc., a home care agency, were sentenced today to prison terms for health care fraud, money laundering, and other charges stemming from a scheme in which they and others defrauded the District of Columbia Medicaid program of over $80 million.

              The sentences were announced by Channing D. Phillips, U.S. Attorney for the District of Columbia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.; Brian J. Ebert, Special Agent in Charge, Washington Field Office, U.S. Secret Service, and Daniel W. Lucas, Inspector General for the District of Columbia (D.C. OIG).

              The two defendants, of Mitchellville, Md., were found guilty on Nov. 12, 2015 in the U.S. District Court for the District of Columbia. The Honorable Chief Judge Beryl A. Howell sentenced Florence Bikundi to 10 years in prison. She sentenced Michael D. Bikundi, Sr. to seven years in prison. Following their prison terms, the Bikundis will be placed on three years of supervised release. Judge Howell earlier ordered them to forfeit over $11 million seized from 76 bank accounts; their residence, worth approximately $1 million; $73,000 in cash seized from their residence, and five luxury vehicles with a total purchase price of more than $400,000.  She also imposed a forfeiture money judgment of $39,989,956 on both defendants. Finally, Judge Howell ordered the defendants to pay $80,620,929 in restitution to D.C. Medicaid.

              “The investigation of this case exposed a massive health care fraud that cheated the District of Columbia Medicaid program of more than $80 million that could have been spent on people who needed services,” said U.S. Attorney Phillips. “Florence and Michael Bikundi enriched themselves for years by operating a rogue home care agency. Hopefully the sentences today will serve as a deterrent to other unscrupulous health care providers who aim to steal the taxpayers’ money.”

              “The Bikundis funded their lavish lifestyle by defrauding the District of Columbia’s Medicaid program designed to provide for those in need,” said Assistant Director in Charge Abbate of the FBI’s Washington Field Office.  “The FBI will continue to pursue criminals who target our health care system in order to protect its integrity and to prevent fraud. I commend the dedicated agents, analysts, and prosecutors who worked to bring this case to justice.”

              “It’s outrageous that fraudster couple Florence and Michael Bikundi stole millions of Medicaid funds meant to provide home health services to vulnerable patients just to fuel their own lavish lifestyle,” said Special Agent in Charge DiGiulio of the HHS Office of Inspector General. “But today’s prison sentences show the results of our continued work with other law enforcement agencies to crack down on greedy individuals who rip off government health care programs.”

              “Health care fraud and other similar elaborate fraudulent schemes are not victimless crimes,” said Special Agent in Charge Ebert of the U.S. Secret Service’s Washington Field Office.  “This type of fraud can have a significant detrimental effect on our nation’s financial infrastructure and our local community’s economy. The Secret Service will continue to tirelessly pursue justice by investigating and dismantling these types of fraudulent schemes.”

              “I hope this sentence sends a clear message that we will continue to investigate and propose prosecution for anyone who engages in corruption or fraudulent activities against the District government,” said Inspector General Lucas. “I applaud the hard work of my D.C.  OIG Medicaid Fraud Control Unit (MFCU) staff for bringing this case to its rightful close.”

  **

              Florence Bikundi, 53, also known as Florence Ngwe and Florence Igwacho, has been in custody since her arrest in February 2014. She was found guilty by the jury of 12 charges: one count of conspiracy to commit health care fraud; one count of conspiracy to commit money laundering, two counts of health care fraud; one count of Medicaid fraud; and seven counts of money laundering. Michael D. Bikundi, Sr., 63, was found guilty of 10 charges: one count of conspiracy to commit health care fraud; one count of conspiracy to commit money laundering, one count of health care fraud; and seven counts of money laundering.

              According to evidence presented at trial, Florence Bikundi, a former nurse, and her husband owned Global Healthcare, Inc. According to the government’s evidence, Florence Bikundi was not entitled to take part in the Medicaid program and fraudulently got approval as a provider. Then, the government’s evidence showed, she and her husband led a scheme to bill Medicaid for services that were not fully provided – recruiting others, including family members, into the scam, and creating fraudulent paperwork to hide the illegal activity.

              The D.C. Medicaid program is funded jointly by District of Columbia tax dollars and federal tax dollars. Medicaid provides for home care services to be performed by personal care aides, working for eligible home care agencies. Doctors or advanced practice registered nurses must examine beneficiaries and authorize them to receive these services. The aides are to follow a plan of care and assist Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, keeping track of medication, and so forth.

              In 1999, Florence Bikundi went by her maiden name of Florence Igwacho.  In August 1999, the Virginia Board of Nursing revoked the nursing license of Florence Igwacho.  In March 2000, the U.S. Department of Health and Human Services, Office of Inspector General notified Florence Igwacho in writing that she was excluded from participation in Medicare, Medicaid, and all federal health care programs due to the revocation.

              Florence Bikundi subsequently concealed her past – namely, the Medicaid exclusion and the revocation of her nursing license - when she applied for a Medicaid provider number for Global Healthcare in June 2009 using the name of Florence Bikundi.  She also used three forged signatures on her Medicaid provider application.  Florence Bikundi married Michael Bikundi in September 2009.

              From August 2009 through February 2014, Florence and Michael Bikundi used Global HealthCare to carry out a massive fraud, the government’s evidence showed. Year after year, the D.C. Medicaid program was billed for personal home health aide services that were not fully provided to Medicaid beneficiaries. Phony time sheets, patient files and employment files were created. Global Healthcare generated increasing amounts of payments as the years continued, going from roughly $1.35 million in 2009 to $14.27 million in 2011 to $27.16 million in 2013.

              According to the government’s evidence, the Bikundis used the proceeds to finance a lavish lifestyle. In just over three years, they spent $1.3 million to purchase and renovate a newly built home. They also used the proceeds for a $140,000 Land Rover, a $120,000 Porsche, a $75,000 Mercedes Benz, a $70,000 Cadillac and a $36,000 BMW.

              Seven others earlier pled guilty to charges in the investigation. They include Florence Bikundi’s son, Carlson M. Igwacho, 35, of Bowie, Md.; Florence Bikundi’s two sisters, Irene M. Igwacho, 50, of Bowie, Md., and Berenice W. Igwacho, 31, of Bowie, Md.; James Mbide, 55, of Laurel, Md; Nicola C. White, 34, of Laurel, Md.; Elvis N. Atabe, 57, of Adelphia Md., and Melissa A. Williams, 33, of Silver Spring, Md.

              Two others were indicted on charges in the investigation but remain fugitives: Christian S. Asongcha, 39, formerly of Lanham, Md., and Atawan Mundu John, 39, formerly of Washington, DC.

              In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate, Special Agent in Charge DiGiulio, Special Agent in Charge Ebert, and Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office, the U.S. Department of Health and Human Services, Office of Inspector General, and the U.S. Secret Service, as well as a team from the Medicaid Fraud Control Unit of the District of Columbia’s Office of the Inspector General that included Director Brent Wolfingbarger; Special Agents Mike Kellam, Sandra Adams, Victor Richardson, and Senior Auditor LaShawn Brooks. They also expressed appreciation for the assistance of the District of Columbia’s Department of Health Care Finance and other agencies.

              They commended the work of those who prosecuted the case, including Assistant U.S. Attorneys Lionel A. André, Anthony Saler, and Michelle Bradford, of the Office’s Fraud and Public Corruption Section. They acknowledged the efforts of Assistant U.S. Attorney Christopher B. Brown, of the Asset Forfeiture and Money Laundering Section, who assisted during the forfeiture proceedings, and Criminal Investigator Nicole Hinson, also of the U.S. Attorney’s Office, who was the prosecution’s law enforcement representative during the trial.

              Finally, they expressed appreciation for the assistance in this case and related investigations that was provided by Arvind K. Lal, Chief of the Asset Forfeiture and Money Laundering Section; Assistant U.S. Attorneys Zia Faruqui, Ted Radway, Michael Friedman, Chrisellen Kolb, and Michelle Zamarin; Financial Analyst Bryan J. Snitselaar; Deputy U.S. Marshal Wayne Rollock of the U.S. Marshals Service; Paralegal Specialists Toni Donato, Donna Galindo, Krishawn Graham, Tasha Harris,  Corinne Kleinman, and Kristy Penny; Legal Assistants Angela Lawrence, Jessica McCormick, and Christopher Samson; Litigation Support Specialist Ron Royal, and former Forensic Accountant Maria Boodoo.

  View the Original Release on justice.gov

• Owner of Real Estate Investment Firm Pleads Guilty to $17 Million Securities Fraud

  Southern District of New York

  Read the Press Release

  Preet Bharara, the United States Attorney for the Southern District of New York, announced that CARLTON P. CABOT, the former owner and chief executive officer of Cabot Investment Properties LLC (“CIP”), pled guilty yesterday to one count of securities fraud for participating in a scheme to defraud investors in numerous CIP-sponsored real estate investments.  As part of the fraud, CABOT and his co-defendant misappropriated over $17 million of investor funds to pay for personal and business expenses, and concealed the fraud from the investors with manipulated financial statements.  CABOT pled guilty before U.S. District Judge Jesse M. Furman.

  U.S. Attorney Preet Bharara said:  “Yesterday, Carlton Cabot, CEO of Cabot Investment Properties LLC, admitted to taking over $17 million in investor funds and spending it on himself, including for private school tuition for his family and a luxury vacation apartment.  Cabot camouflaged his fraud by doctoring financial statements and lying to his investors.”

  According to the allegations contained in the criminal complaint against CABOT, the indictment to which CABOT pled guilty, and statements made during CABOT’S plea proceeding:

  From 2003 through 2012, CIP – which was controlled by CABOT – sponsored and oversaw approximately 18 so-called tenants-in-common (“TIC”) securities offerings to investors located all over the United States (collectively, the “TIC Investments” and the “TIC Investors”). A TIC investment is a real estate investment in which investors collectively own a piece of commercial real estate and are entitled to receive a portion of the rental income from the property.

  From 2008 through 2012, CABOT engaged in a scheme to defraud the TIC Investors by misappropriating funds belonging to the TIC Investments and concealing his misappropriations by knowingly providing false and misleading financial reports and other information to the TIC Investors.

  According to the representations in the offering prospectuses for the TIC Investments, CIP was only allowed to collect “excess” rental income from the TIC Investments – i.e., any additional money left over after the TIC Investments had paid the operating expenses for the properties and the disbursements due to the TIC Investors.  Despite these representations, CABOT repeatedly transferred money out of bank accounts belonging to the TIC Investments and into CIP bank accounts that he controlled (the “CIP Operating Accounts”) before these funds could be used to pay for operating expenses and disbursements to the TIC Investors. 

  CABOT then used these funds to pay for unauthorized purposes without the knowledge or authorization of the TIC Investors, including: (1) to cover the operating expenses and investor distributions of other TIC Investments that had no available funds; (2) to pay for millions of dollars of personal expenses, including expensive cars, rental apartments, and private school tuition; and (3) to pay for CIP business expenses, including an approximately $1,125,651 civil settlement to certain TIC Investors who had sued CABOT and others.

  To conceal the misappropriation of TIC Investment funds from the TIC Investors, CABOT and his co-defendant, Timothy J. Kroll, CIP’s chief operating officer, provided false and misleading financial reports to the TIC Investors that intentionally hid the fact that CIP owed large sums of money to the TIC Investments. 

  By in or about the end of 2012, when CIP ceased its day-to-day operations, CIP and its principals, CABOT and Kroll, owed approximately $17 million to the TIC Investments, which has never been repaid.

  *                *                *

  CABOT, 53, of Stamford, Connecticut, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison and three years of supervised release.  According to the agreement with the Government to which he pled guilty, CABOT owes $17 million in restitution and forfeiture.  CABOT is scheduled to be sentenced on September 15, 2016, before Judge Furman.

  On October 7, 2015, Kroll pled guilty for his role in the scheme.  Kroll is scheduled to be sentenced on July 19, 2016, before Judge Furman.

  The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

  Mr. Bharara praised the outstanding efforts of the U.S. Postal Inspection Service and Internal Revenue Service’s Criminal Investigation Division.

  The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Christian R. Everdell and Edward A. Imperatore are in charge of the prosecution.

  ###

   

  View the Original Release on justice.gov

• Northern District of California Litigative Team and Paralegal Specialist Honored by Department of Justice at Executive Office for United States Attorneys Director’s Awards Ceremony

  Northern District of California

  Read the Press Release

  WASHINGTON – Former and current Assistant United States Attorneys Wilson Leung, Stephen J. Meyer, Andrew M. Scoble, Benjamin P. Tolkoff, Acadia Leigh Senese, along with Kevin Costello, Maureen French, Ponly J. Tu, Daniel Charlier-Smith and Maryam Beros of the Northern District of California U.S. Attorney’s office; in addition to Anthony R. Tillett, Travis Jones, Jill Brenny, Paul Viglienzone, Anthony L. Bordigon, and Michael Carlos Garcia were among the 160 recipients recognized by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony today in Washington D.C.
   
  The Northern District of California was one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
   
  In her prepared remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges.   From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes, and international terrorism, these awardees have taken on our toughest cases.  And the citizens of our country are safer because of their work.”
   
  “We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice,” said Director Wilkinson.
   
  The Northern District of California litigative team was recognized for their exceptional contributions to the investigation and prosecution of the 500 Block/C Street Gang.  After an 18-month investigation by Homeland Security Investigations and the South San Francisco and Daly City Police Departments, a three-month trial resulted in the convictions of 18 members and associates of the gang on various charges including racketeering conspiracy, racketeering murder and attempted murder, Hobbs Act robbery, obstruction of justice, and attempted murder of federal agents.  The 500 Block/C Street Gang terrorized the streets of South San Francisco and was responsible for one of the most violent episodes in the city’s history – a shooting that killed three young men and wounded three federal agents. 
   
  Paralegal Specialist Maryam Beros was honored with an individual award for providing more than 20 years of innovative and exceptional leadership in her development of policies, procedures, and systems for the management of health care fraud cases in the United States Attorney’s.  Ms. Beros received the Director’s Award for Superior Performance in a Litigative Support Role.  Her efforts have assisted law enforcement with developing leads and uncovering evidence of potential health care fraud violations, and allowed her office to track health care fraud cases from the moment of referral through sentencing and appeal.  She has also developed processes for organizing, managing, and producing in discovery the voluminous, yet highly-sensitive records acquired in the course of large-scale health care fraud investigations.  Ms. Beros has shared her knowledge and techniques within this district and nationwide by training Assistant United States Attorneys and paralegals in annual discovery and orientation courses, and by leading classes at the National Advocacy Center on issues unique to health care fraud cases.
   
  “I congratulate all the recipients of the Director’s Awards and I am especially proud of the 16 exceptional employees of the Northern District of California who have received this well-deserved recognition,” said U.S. Attorney Brian J. Stretch.  “The contributions made by these public servants reflect not only the deep well of talent that resides in this district but also the hard work, dedication, and sacrifice it takes to serve so honorably in the law enforcement profession.”  
   
  EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
   

  View the Original Release on justice.gov

• Non-Indian Man from Vanderwagon Facing Federal Sexual Abuse and Kidnapping Charges Involving Navajo Child

  District of New Mexico

  Read the Press Release

  ALBUQUERQUE – William Detwiler, 67, a non-Indian who resides in Vanderwagon, N.M., made his initial appearance today in federal court in Albuquerque, N.M., on an indictment charging him with child sexual abuse and kidnapping charges.  Detwiler remains in federal custody pending an arraignment and detention hearing, which are scheduled for tomorrow.

  The charges against Detwiler were announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and New Mexico State Police Chief Pete N. Kassetas.

  The four-count indictment, filed by a grand jury on May 24, 2016, charges Detwiler with two counts of aggravated child sexual assault and two counts of kidnapping.  According to the indictment, Detwiler kidnapped an Indian child under the age of 16 years and sexually abused the victim in Nov. 2013.  It alleges that Detwiler kidnapped and sexually abused the victim again on a date between Nov. 2013 and June 2014.  Detwiler allegedly committed the four crimes on the Navajo Indian Reservation in McKinley County, N.M.

  If convicted, Detwiler faces a penalty of a statutory mandatory minimum 30 years to a maximum of life in prison on each of the aggravated sexual assault charges and a statutory mandatory minimum of 20 years to a maximum of life in prison on each of the kidnapping charges.  Detwiler’s penalty on the aggravated sexual assaults charges may be enhanced to a mandatory term of life imprisonment based on his prior conviction for criminal sexual contact with a minor. Charges in indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.

  This case was investigated by the Gallup office of the FBI and the New Mexico State Police.  It is being prosecuted by Assistant U.S. Attorney Nicholas Marshall as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse.  Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.

  The case also is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution.  Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.  Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates under this initiative.

  View the Original Release on justice.gov

• Nine People Charged in Multi-State Dog Fighting Conspiracy

  District not recorded

  Read the Press Release

  Six New Jersey residents were among nine individuals charged today in four states for their alleged roles in an interstate dog-fighting network spanning from New Mexico to New Jersey, announced Assistant Attorney General John Cruden for the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Paul Fishman for the District of New Jersey.

  The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to fight dogs or to possess, train, sell, buy, deliver, receive or transport dogs intended for use in dog fighting. 

  Criminal complaints filed in New Jersey named the following individuals, eight of whom were arrested:  

  • Anthony “Monte” Gaines, 35, of Vineland, New Jersey (already in state custody on unrelated charges)
  • Justin Love, 36, of Westville, New Jersey
  • Lydell Harris, 30, of Vineland
  • Mario Atkinson, 40, of Asbury Park, New Jersey
  • Frank Nichols, 39, of Millville, New Jersey
  • Tiffany Burt, 34, of Vineland
  • Dajwan Ware, 43, of Fort Wayne, Indiana
  • Pedro Cuellar, 46, of Willow Springs, Illinois
  • Robert Arellano, 62, of Albuquerque, New Mexico

  According to documents filed in this case and statements made in court:

  The three criminal complaints charge residents of New Jersey and out-of-state residents for their alleged involvement in a multi-state dog fighting network.  The charges include alleged criminal acts related to transporting, delivering, buying, selling, receiving and possessing pit bull-type dogs for dog fighting ventures and conspiring to commit these acts in New Jersey and elsewhere throughout the United States.

  From October 2015 through the present, the defendants and their associates participated in dog-fighting ventures in which pit bull-type dogs were set up for matches to maul and attack each other and fight – often until one or both dogs die – and facilitated these ventures by transporting and delivering dogs between dog fighters in various states.  The federal undercover investigation revealed that the defendants discussed graphic accounts of prior dog fights they and their associates staged and furthered their dog-fighting ventures through the exchange of information concerning dog-fighting bloodlines, training methods, fighting techniques and the market for buying and selling dogs.

  Federal agents found and saw evidence of the dog-fighting ventures on some of the defendants’ properties.  This included scarred dogs and dogs stacked in crates; dog fighting paraphernalia, such as dog treadmills, “flirt” poles used to build jaw strength and increase aggression and animal pelts.  Also found and seen were surgical instruments, syringes and other tools used to mend dogs in lieu of seeking veterinary attention.

  This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting.  The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog-fighting “victories.”

  “Dog fighting is truly an organized criminal activity, as well as a deplorable trade in the suffering of animals,” said Assistant Attorney General Cruden.  “This case marks the beginning of a coordinated effort at the Department of Justice to meet organized dog fighting head-on with a strategic, aggressive federal response.”

  “There is no place in New Jersey – or anywhere else, for that matter – for a vicious blood sport like dog fighting,” said U.S. Attorney Fishman.  “Not only is it unspeakably cruel to the animals that are raised to participate in dog fighting, but animals trained in this way can be extremely dangerous to the public.”

  Operation Grand Champion is a continuing investigation by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge William G. Squires; Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, in coordination with the Department of Justice.

  The government is represented by Justice Department’s Environmental Crimes Section Trial Attorneys Ethan Eddy and Shennie Patel  and Assistant U.S. Attorneys Jihee Suh and Kathleen O’Leary of the District of New Jersey and the, with the assistance of the U.S. Attorney’s Offices in the District of New Mexico, Northern District of Illinois and Northern District of Indiana.

  The Humane Society of the United States is assisting with the care of the dogs seized by federal law enforcement.

  A criminal complaint is an allegation based upon a finding of probable cause by a magistrate judge.  A defendant is presumed innocent unless and until convicted.  If convicted, each defendant faces up to five years in prison and a $250,000 fine per count of animal fighting charges.  The investigation is ongoing.

  View the Original Release on justice.gov

• Nine People Charged in Multi-State Dog Fighting Conspiracy

  Northern District of Indiana

  Read the Press Release

  WASHINGTON – Six New Jersey residents were among nine individuals charged today in four states for their alleged roles in an interstate dog-fighting network spanning from New Mexico to New Jersey, announced Assistant Attorney General John Cruden for the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Paul Fishman for the District of New Jersey.

  The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to fight dogs or to possess, train, sell, buy, deliver, receive or transport dogs intended for use in dog fighting. 

  Criminal complaints filed in New Jersey named the following individuals, eight of whom were arrested:  

  • Anthony “Monte” Gaines, 35, of Vineland, New Jersey (already in state custody on unrelated charges)

  • Justin Love, 36, of Westville, New Jersey

  • Lydell Harris, 30, of Vineland

  • Mario Atkinson, 40, of Asbury Park, New Jersey

  • Frank Nichols, 39, of Millville, New Jersey

  • Tiffany Burt, 34, of Vineland

  • Dajwan Ware, 43, of Fort Wayne, Indiana

  • Pedro Cuellar, 46, of Willow Springs, Illinois

  • Robert Arellano, 62, of Albuquerque, New Mexico

  According to documents filed in this case and statements made in court:

  The three criminal complaints charge residents of New Jersey and out-of-state residents for their alleged involvement in a multi-state dog fighting network.  The charges include alleged criminal acts related to transporting, delivering, buying, selling, receiving and possessing pit bull-type dogs for dog fighting ventures and conspiring to commit these acts in New Jersey and elsewhere throughout the United States.

  From October 2015 through the present, the defendants and their associates participated in dog-fighting ventures in which pit bull-type dogs were set up for matches to maul and attack each other and fight – often until one or both dogs die – and facilitated these ventures by transporting and delivering dogs between dog fighters in various states.  The federal undercover investigation revealed that the defendants discussed graphic accounts of prior dog fights they and their associates staged and furthered their dog-fighting ventures through the exchange of information concerning dog-fighting bloodlines, training methods, fighting techniques and the market for buying and selling dogs.

  Federal agents found and saw evidence of the dog-fighting ventures on some of the defendants’ properties.  This included scarred dogs and dogs stacked in crates; dog fighting paraphernalia, such as dog treadmills, “flirt” poles used to build jaw strength and increase aggression and animal pelts.  Also found and seen were surgical instruments, syringes and other tools used to mend dogs in lieu of seeking veterinary attention.

  This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting.  The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog-fighting “victories.”

  “Dog fighting is truly an organized criminal activity, as well as a deplorable trade in the suffering of animals,” said Assistant Attorney General Cruden.  “This case marks the beginning of a coordinated effort at the Department of Justice to meet organized dog fighting head-on with a strategic, aggressive federal response.”

  “There is no place in New Jersey – or anywhere else, for that matter – for a vicious blood sport like dog fighting,” said U.S. Attorney Fishman.  “Not only is it unspeakably cruel to the animals that are raised to participate in dog fighting, but animals trained in this way can be extremely dangerous to the public.”

  Operation Grand Champion is a continuing investigation by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge William G. Squires; Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, in coordination with the Department of Justice.

  The government is represented by Justice Department’s Environmental Crimes Section Trial Attorneys Ethan Eddy and Shennie Patel  and Assistant U.S. Attorneys Jihee Suh and Kathleen O’Leary of the District of New Jersey and the, with the assistance of the U.S. Attorney’s Offices in the District of New Mexico, Northern District of Illinois and Northern District of Indiana.

  The Humane Society of the Unites States is assisting with the care of the dogs seized by federal law enforcement.

  A criminal complaint is an allegation based upon a finding of probable cause by a magistrate judge.  A defendant is presumed innocent unless and until convicted.  If convicted, each defendant faces up to five years in prison and a $250,000 fine per count of animal fighting charges.  The investigation is ongoing.

  # # #

  16-635

  DO NOT REPLY TO THIS MESSAGE.  IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007

  View the Original Release on justice.gov

• Nine People Charged in Multi-State Dog Fighting Conspiracy

  District of New Jersey

  Read the Press Release

  Approximately 66 Dogs Rescued

  NEWARK, N.J. – Six New Jersey residents were among nine individuals charged today in four states for their alleged roles in an interstate dog-fighting network spanning from New Mexico to New Jersey, U.S. Attorney Paul Fishman for the District of New Jersey and Assistant Attorney General John Cruden for the Environment and Natural Resources Division of the Department of Justice announced.

  The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to fight dogs or to possess, train, sell, buy, deliver, receive, or transport dogs intended for use in dog fighting. 

  Criminal complaints filed in New Jersey named the following individuals, eight of whom were arrested:  

  • Anthony “Monte” Gaines, 35, of Vineland, New Jersey (already in state custody on unrelated charges)

  • Justin Love, 36, of Westville, New Jersey

  • Lydell Harris, 30, of Vineland, New Jersey

  • Mario Atkinson, 40, of Asbury Park, New Jersey

  • Frank Nichols, 39, of Millville, New Jersey

  • Tiffany Burt, 34, of Vineland, New Jersey

  • Dajwan Ware, 43, of Fort Wayne, Indiana

  • Pedro Cuellar, 46, of Willow Springs, Illinois

  • Robert Arellano, 62, of Albuquerque, New Mexico

  According to documents filed in this case and statements made in court:

  The three criminal complaints charge residents of New Jersey and out-of-state residents for their alleged involvement in a multi-state dog fighting network. The charges include alleged criminal acts related to transporting, delivering, buying, selling, receiving, and possessing pit bull-type dogs for dog fighting ventures and conspiring to commit these acts in New Jersey and elsewhere throughout the United States.

  From October 2015 through the present, the defendants and their associates participated in dog-fighting ventures in which pit bull-type dogs were set up for matches to maul and attack each other and fight – often until one or both dogs die – and facilitated these ventures by transporting and delivering dogs between dog fighters in various states. The federal undercover investigation revealed that the defendants discussed graphic accounts of prior dog fights they and their associates staged and furthered their dog-fighting ventures through the exchange of information concerning dog-fighting bloodlines, training methods, fighting techniques and the market for buying and selling dogs.

  During the investigation, various indications of the dog-fighting ventures were found and seen on some of the defendants’ properties. These included scarred dogs and dogs stacked in crates; dog fighting paraphernalia, such as dog treadmills, “flirt” poles used to build jaw strength and increase aggression, and animal pelts. Also found and seen were surgical instruments, syringes and other tools used to mend dogs in lieu of seeking veterinary attention.

  This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog-fighting “victories.”

  “There is no place in New Jersey – or anywhere else, for that matter – for a vicious blood sport like dog fighting,” U.S. Attorney Fishman said. “Not only is it unspeakably cruel to the animals that are raised to participate in dog fighting, but animals trained in this way can be extremely dangerous to the public.”

  “Dog fighting is truly an organized criminal activity, as well as a deplorable trade in the suffering of animals.” Assistant Attorney General Cruden said.  “This case marks the beginning of a coordinated effort at the Department of Justice to meet organized dog fighting head-on with a strategic, aggressive federal response.”

  Operation Grand Champion is a continuing investigation by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge William G. Squires; Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, in coordination with the Department of Justice.

  The government is represented by Assistant U.S. Attorneys Jihee Suh and Kathleen O’Leary of the District of New Jersey, and the Justice Department’s Environmental Crimes Section Trial Attorneys Ethan Eddy and Shennie Patel, with the assistance of the U.S. Attorney’s Offices in the District of New Mexico, Northern District of Illinois and Northern District of Indiana.

  A criminal complaint is an allegation based upon a finding of probable cause by a magistrate judge. A defendant is presumed innocent unless and until convicted.  If convicted, each defendant faces up to five years in prison and a $250,000 fine per count of animal fighting charges. The investigation is ongoing.

  The Humane Society of the Unites States is assisting with the care of the dogs seized by federal law enforcement.

  View the Original Release on justice.gov

• Nine Defendants Charged with Social Security Fraud

  Northern District of New York

  Read the Press Release

  SYRACUSE, NEW YORK – Indictments charging eight defendants from the Syracuse area and one defendant from St. Lawrence County were unsealed today in federal court. The indictments charge each defendant with fraud against the Social Security Administration, announced United States Attorney Richard S. Hartunian and Social Security Administration, Office of Inspector General, NY Field Division Special Agent-in-Charge Edward J. Ryan. Seven of the defendants were arrested today and appeared before the Hon. David E. Peebles, United States Magistrate Judge. St. Lawrence County resident Pauline House will make her court appearance pursuant to a summons on June 15, 2016. Defendant Janysha Richardson’s court date is not yet scheduled. Each of the nine defendants, identified below, is charged with one count of fraud on the Social Security Administration, in violation of 42 U.S.C. § 408(a)(3).

  DEFENDANT

  Age

  City

  Antoine Jenkins

  32

  Syracuse

  Janysha Richardson

  25

  Syracuse

  Jikia Jones

  31

  Syracuse

  Lakena Gamble

  39

  Syracuse

  Lily Brown

  58

  Syracuse

  Lori Caputo

  47

  Manlius

  Monique Starkey

  45

  Syracuse

  Pauline House

  62

  De Peyster

  The indictments allege each defendant caused the Social Security Administration to record self-employment income that they had not actually earned. Such false claims of employment affect current and future payments made by the Social Security Administration.

  If convicted, each defendant faces up to five years imprisonment, a fine of up to $250,000, court ordered restitution, and up to 3 years supervised release on the charges.

  The case was investigated by the Social Security Administration Office of the Inspector General. The case is being prosecuted by Assistant U.S. United States Attorney Carl Eurenius.

  The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.

  View the Original Release on justice.gov

• Nine Defendants Charged in White Plains Federal Court with Narcotics and Firearms Offenses as Part of the Yellow Tape Money Gang in Newburgh

  Southern District of New York

  Read the Press Release

  Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), Delano Reid, the New York Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), Joseph A. D’Amico, the Superintendent of the New York State Police (“NYSP”), Daniel C. Cameron, the Chief of the City of Newburgh Police Department, and Bruce Campbell, the Chief of the Town of Newburgh Police Department, today announced the unsealing of an Indictment charging a total of nine defendants with committing various narcotics and firearms offenses as part of an organization known as the “Yellow Tape Money Gang”  in Newburgh, New York.

  Manhattan U.S. Attorney Preet Bharara stated: “These defendants allegedly sought to invoke the violence of a crime scene by calling themselves the ‘Yellow Tape Money Gang,’ and using this vivid imagery, they allegedly pumped large quantities of crack cocaine into the streets of Newburgh.  Those who deal in these dangerous drugs destroy communities and fuel a cycle of drug-induced violence.  Working with our partners at the FBI, ATF, the New York State police, and the Newburgh Police Department, we seek to stamp out this type of drug trade in Newburgh.”

  FBI Assistant Director-in-Charge Diego Rodriguez stated: “We believe the arrests today will make a significant dent in the violent crime that has been escalating recently in the City of Newburgh.  Our actions should also serve as a warning to others that the FBI Hudson Valley Safe Streets Task Force and the City of Newburgh Police Department are not going away.  If gang members and drug pushers choose to fill the void left behind today, we will be there tomorrow, and the next day and the next, to protect the law abiding citizens in the City of Newburgh.”

  ATF New York Special Agent in Charge Delano Reid stated: “ATF’s mission to combat gun violence in our community remains our highest priority.  The crimes committed by this organization will not be tolerated by the ATF or our law enforcement partners.  We will continue to work tirelessly until gangs like the Yellow Tape Money Gang, and others that would follow their destructive patterns, no longer terrorize the citizens of Newburgh.”

  City of Newburgh Police Chief Daniel C. Cameron stated: “We operate under the national Group Violence Intervention model wherein we tirelessly target those individuals who cause the majority of the violence in our City.  Today’s operation is an example of how our law enforcement partnership is strong and that violence will not be accepted in our community.  The individuals arrested today are charged with narcotics offenses of the kind that often bring violence in our City.  Those causing violence are on notice.  Our collaborative efforts will continue as we move Newburgh forward.”

  As alleged in the Indictment unsealed today in White Plains federal court[1]:

  From at least October 2015 through May 2016, TYRIN GAYLE, a/k/a “Spazzo,” LAQUAN FALLS, a/k/a “Greedy,” GABRIEL WARREN, a/k/a “Stackz,” DAVID BROWN, a/k/a “Baby Thot,” BRENDAN GERMAINE, a/k/a “Brandan Germain,” RASHUN EVANS, LAQUAVIOUS BOYKIN, BRITTANY HALL, and CHRISTOPHER JOHNSON, conspired to sell crack cocaine in and around Newburgh, New York, referring to themselves as the “Yellow Tape Money Gang,” or “YTMG” for short.  The conspiracy was led, at different times, by GAYLE, FALLS, and WARREN. 

  In May 2016, EVANS used, carried, and possessed a firearm in furtherance of the crack cocaine conspiracy in which he was a member.

  According to statements made during bail hearings this afternoon, YTMG members advertised their affiliation with their drug trafficking organization through posts on social media websites such as Facebook.  Based on these posts, law enforcement learned that the “Yellow Tape Money Gang” name referred to the yellow caution tape that law enforcement uses to cordon off dead bodies following a murder.  The reference was apparently meant as a warning to rival gang members that they would need yellow tape if they crossed YTMG.  These Facebook posts included photographs and videos of YTMG members with what appear to be guns, large amounts of cash, and narcotics.  At least three firearms were seized during the execution of search warrants this morning in connection with the arrests.

  *                      *                     *

  Nine defendants were taken into federal custody this morning.  These defendants were presented in White Plains federal court today before U.S. Magistrate Judge Paul E. Davison.                                   

  Charts containing the names of the defendants who were charged today, and the charges and maximum penalties they face, are attached.  The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.

  Mr. Bharara praised the outstanding investigative work of the FBI, ATF, the New York State Police, the City of Newburgh Police Department, the Town of Newburgh Police Department, and the Orange County Sheriff’s Department.

  The case is being handled by the Office’s White Plains Division.  Assistant United States Attorneys Maurene Comey, Jacqueline Kelly, and Lauren Schorr are in charge of the prosecutions.

  The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.                                                     

  United States v. Tyrin Gayle, et al., 16 Cr. 361

  CHARGE(S)

  DEFENDANT(S)

  MAXIMUM PENALTIES

  Narcotics conspiracy

  (Conspiracy to distribute and possess with intent to distribute 28 grams or more of crack cocaine.)

  TYRIN GAYLE,

      a/k/a “Spazzo,”

  LAQUAN FALLS,

      a/k/a “Greedy,”

  GABRIEL WARREN,

      a/k/a “Stackz”

  DAVID BROWN,

      a/k/a “Baby Thot,”

  BRENDAN GERMAINE,

      a/k/a “Brandan Germain,”

  RASHUN EVANS,

  LAQUAVIOUS BOYKIN,

  BRITTANY HALL, and

  CHRISTOPHER JOHNSON

  40 years in prison

   

  Mandatory minimum:
  five years in prison

  Possession of a firearm in furtherance of a drug trafficking crime

   

  RASHUN EVANS

  Life in prison

   

  Mandatory minimum:
  five years in prison, to be imposed consecutively to any other sentence

   

   

  ---

  [1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.

  View the Original Release on justice.gov

• New Jersey Leaders and Members of Violent, International Street Gang Convicted of Racketeering-Related Charges

  District of New Jersey

  Read the Press Release

  NEWARK, N.J. – Eight members of the New Jersey branch of the international street gang “La Mara Salvatrucha,” or “MS-13” – including the branch’s founding member – were convicted by a federal jury today of racketeering-related crimes, including multiple acts of violence, U.S. Attorney Paul J. Fishman and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced.

  Santos Reyes-Villatoro, a/k/a “Mousey,” 43, of Bound Brook, New Jersey; Mario Oliva, a/k/a “Zorro,” 29, of Plainfield, New Jersey; Roberto Contreras, a/k/a “Demonio,” 27, of Bound Brook; Julian Moz-Aguilar, a/k/a “Humilde,” 28, of Plainfield; Hugo Palencia, a/k/a “Taliban,” 24, of Plainfield; Jose Garcia, a/k/a “Chucky” and “Diabolico,” 24, of Plainfield; Esau Ramirez, a/k/a “Panda,” 25, of Plainfield; and Cruz Flores, a/k/a “Bruja,” 30, of Bound Brook, were convicted following a 16-week trial before U.S. District Judge Stanley R. Chesler in Newark federal court. The jury deliberated for approximately four days before returning the verdicts. Sentencing is set for Sept. 7, 2016. A chart outlining the counts of which each defendant was found guilty and the maximum potential penalties associated with each of those counts is attached.

  According to the documents filed in this case and the evidence presented at trial:

  MS-13 is a national and transnational gang with branches or “cliques” operating throughout the United States, including in Plainfield. All of the defendants were members of the “Plainfield Locos Salvatruchas” (PLS) clique of MS-13 that was founded by Reyes-Villatoro and operated in Union, Somerset, and Middlesex Counties. Reyes-Villatoro, Oliva and Contreras all served as “First Word,” or leader, of the PLS.

  From 2007 through September 2013, MS-13 members from the PLS committed five murders in furtherance of MS-13’s objectives. On Feb. 9, 2009, Reyes-Villatoro, acting as the leader of the PLS, drove Moz-Aguilar and other MS-13 members through the streets of Plainfield searching for rival gang members, eventually stopping at the Plainfield train station. There, Moz-Aguilar used a firearm previously provided by Reyes-Villatoro to murder a victim who was believed to be a member of the Latin Kings, a rival gang.

  On Feb. 27, 2010, Oliva drove a female member of MS-13 to an empty parking lot in Piscataway, New Jersey, and murdered her because she was suspected of working with law enforcement. Oliva then fled New Jersey with the assistance of Contreras and hid from law enforcement with the MS-13 Pinos clique in Oxon Hill, Maryland.

  On Nov. 11, 2010, Palencia drove another MS-13 member to the area around Barack Obama Academy in Plainfield, where they encountered students challenging MS-13. Palencia pulled over, handed a firearm to another MS-13 member and instructed him to shoot at one of the individuals. The MS-13 member shot into the crowd, killing a bystander.

  On Jan. 10, 2011, Moz-Aguilar, Roberto Contreras and other MS-13 members were in a car when they spotted a suspected 18th Street gang member in front of a restaurant. Contreras stopped the vehicle and an MS-13 member exited, approached the suspected rival gang member and shot him in the head.

  On May 8, 2011, Flores murdered a victim who was caught socializing with 18th Street gang members. Flores and another MS-13 member cut his throat, beat him with a bat and stabbed him in the back 17 times. An MS-13 member involved in this murder fled New Jersey and was driven to Maryland soon after law enforcement began searching for him.  

  Garcia also recruited and hired MS-13 members from the Maryland-based Pinos clique to come to New Jersey and murder a woman in exchange for $40,000. The Pinos clique members were arrested by authorities as they pulled into Plainfield. 

  After several MS-13 members were arrested in July 2011, Ramirez and Garcia used phones from inside the Union County, New Jersey, jail to order the murder of three witnesses believed to be cooperating with police and responsible for their arrests. According to evidence presented at trial, members of the PLS also were responsible for an attempted murder of suspected Latin King members near a car wash in Plainfield; the attempted murder of suspected Latin King members in January 2009; a machete attack in May 2011 and another in June 2011 on the train tracks passing through Plainfield; an attempted murder shooting in Plainfield in May 2011; and several other violent crimes, including extortion, robbery and several weapons offenses.

  The defendants were originally charged in a 26-count indictment returned by a federal grand jury in September 2013. After today’s verdicts, 13 of the 14 individuals charged in that indictment have been convicted. One defendant remains a fugitive.

  U.S. Attorney Fishman and Assistant Attorney General Caldwell credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris; and Homeland Security Investigations (ICE-HSI), under the direction of Special Agent in Charge Terence S. Opiola, with the investigation. They also thanked the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace H. Park, for long, close collaboration on the case.

  They also thanked the Somerset County Prosecutor’s Office, under the direction of Acting Prosecutor Michael H. Robertson, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew C. Carey, for their roles. They also acknowledged the U.S. Attorney’s Offices for the Eastern District of Virginia and the District of Maryland, as well as the Plainfield Police Department, Union County Police Department, Union County Sheriff’s Office, Elizabeth Police Department, North Plainfield Police Department, Union County Department of Corrections, Prince George’s County, Maryland, Police Department and the U.S. Marshal’s Service for their assistance.

  The government is represented by Assistant U.S. Attorneys James M. Donnelly and      J. Jamari Buxton of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark and by Kevin L. Rosenberg of the Organized Crime and Gangs Section of the Department of Justice.
   

  Defendant

  Found Guilty/Max Penalties

  Reyes-Villatoro

  Count 1: Racketeering Conspiracy- Life in Prison;

  Count 2: Murder in Aid of Racketeering (Victim 5)- Mandatory life sentence

  Count 3: Use of Firearm in Violent Federal Crime (Victim 5)- Life in prison; 10-year mandatory minimum

  Count 4: Murder Resulting from Federal Firearm Crime (Victim 5)- Life in Prison

  Oliva

  Count 1: Racketeering Conspiracy- Life in Prison

  Count 8: Murder in Aid of Racketeering (Victim 10)- Mandatory life sentence

  Count 9: Use of Firearm in Violent Federal Crime (Victim 10)- Life in prison; 10-year mandatory minimum

  Count 10: Murder Resulting from Federal Firearm Crime (Victim 10)- Life in Prison

  Contreras

  Count 1: Racketeering Conspiracy- 20 years in prison

  Count 11: Accessory After the Fact to Murder in Aid of Racketeering (Victim 10)- 15 years

  Moz-Aguilar

  Count 1: Racketeering Conspiracy- Life in Prison

  Count 2: Murder in Aid of Racketeering (Victim 5)- Mandatory life sentence

  Count 3: Use of Firearm in Violent Federal Crime (Victim 5)- Life in prison; 10-year mandatory minimum

  Count 4: Murder Resulting from Federal Firearm Crime (Victim 5)- Life in Prison

   

  Palencia

  Count 1: Racketeering Conspiracy- Life in Prison

  Count 12: Murder in Aid of Racketeering (Victim 11)- Mandatory life sentence

  Count 13: Use of Firearm in Violent Federal Crime (Victim 11)- Life in prison; 10-year mandatory minimum

  Count 14: Murder Resulting from Federal Firearm Crime (Victim 11)- Life in Prison

   

  Garcia

  Count 1: Racketeering Conspiracy- 20 years

  Count 15: Murder-for-Hire Conspiracy- 10 years

  Count 16: Interstate Travel with Intent to Commit Murder-for-Hire- 10 years

  Count 20: Conspiracy to Commit Murder in Aid of Racketeering- 10 years

  Count 26: Conspiracy to Commit Murder in Aid of Racketeering (Victim 16, Victim 22, Victim 23)- 10 years

  Ramirez

  Count 1: Racketeering Conspiracy- 20 years

  Count 26: Conspiracy to Commit Murder in Aid of Racketeering (Victim 16, Victim 22, Victim 23)- 10 years

  Flores

  Count 18: Conspiracy to Commit Murder in Aid of Racketeering (Victim 15)- 10 years

  Count 19: Murder in Aid of Racketeering (Victim 15)- Mandatory life sentence

   

  Defense counsel:

  Reyes-Villatoro: Anthony Iacullo Esq. and David Glazer Esq.

  Oliva: Henry Klingeman Esq. and Kenneth Kayser Esq.

  Contreras: Marc Liebman Esq.

  Moz-Aguilar: John Whipple Esq.

  Palencia: Joseph Rubino Esq. and Kelley Sharkey Esq.

  Garcia: Charles Alvarez Esq.

  Ramirez: Michael Koribanics Esq..

  Flores: David Ruhnke Esq. and Linwood Jones Esq.

  View the Original Release on justice.gov

• Navajo Man Pleads Guilty to Federal Assault Charges

  District of New Mexico

  Read the Press Release

  ALBUQUERQUE – Patrick Yazzie-Tso, 28, an enrolled member of the Navajo Nation who resides in Santa Fe, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to assault charges.

  Yazzie-Tso was arrested in Jan. 2016, on a criminal complaint charging him with assault.  According to the complaint, on Dec. 13, 2015, the Pojoaque Pueblo Tribal Police Department responded to a report regarding a domestic violence situation occurring on Pojoaque Pueblo in Santa Fe County, N.M.  The complaint alleged that Yazzie-Tso assaulted the victim, a non-Indian, by punching her repeatedly on the head and face, slamming a large painting canvas on her, and strangling her by wrapping his hands around her neck and throat. 

  Yazzie-Tso was subsequently indicted on Feb. 9, 2016, and charged with assault resulting in serious bodily injury and strangling an intimate partner.  During today’s proceedings, Yazzie-Tso pled guilty to the indictment without the benefit of a plea agreement.

  Yazzie-Tso was remanded into federal custody after entering his guilty plea.  He will remain detained pending his sentencing hearing, which has yet to be scheduled.  At sentencing, Yazzie-Tso faces a statutory maximum penalty of ten years in federal prison.

   This case was investigated by Northern Pueblos Agency of the BIA’s Office of Justice Services and the Pojoaque Pueblo Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney Joseph Spindle.

  View the Original Release on justice.gov

• Mohamed Fadiga Found Guilty After Two-Day Jury Trial

  Northern District of Indiana

  Read the Press Release

  HAMMOND – United States Attorney for the Northern District of Indiana, David A. Capp, announced that Mohamed L. Fadiga, 42, of Indianapolis, Indiana, was found guilty, after a two- day jury trial, of possession of 15 or more counterfeit or unauthorized debit gift cards.

  The defendant will be sentenced in September and is currently on bond.

  This case was prosecuted as a result of an investigation by the U.S. Department of Homeland Security, Homeland Security Investigations.  This case was prosecuted by Assistant United States Attorneys Toi Denise Houston and Maria N. Lerner.

  # # #

  View the Original Release on justice.gov

• Middle District of Georgia Employees Honored by Department of Justice at Executive Office for United States Attorneys Director's Awards Ceremony

  Middle District of Georgia

  Read the Press Release

  WASHINGTON – Alan Dasher, Erika Antonio, Patrick H. Hearn, Mary M. Englehart, Lashanda Freeman, Cynthia L. Allard, Marc B. Imes and Richard Hartline were recognized for “Superior Performance by a Litigation Team” by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony today in Washington D.C.

  The Middle District of Georgia was one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

  In her prepared remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges. From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes, and international terrorism, these awardees have taken on our toughest cases.  And the citizens of our country are safer because of their work.”

  “We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice,” said Director Wilkinson. 

  Mr. Dasher, Ms. Antonio, Mr. Hearn, Ms. Englehart, Ms. Freeman, Ms. Allard, Mr. Imes and Mr. Hartline are recognized for their efforts in the investigation and prosecution of the corporate officials of Peanut Corporation of America, involving the knowing sale of Salmonella contaminated peanut butter and products to commercial food vendors, resulting in nine deaths and thousands of victims of illness.  This case demonstrated the Department’s focus on personal responsibility of corporate officers for corporate misdeeds and resulted in the longest sentences ever given in a food products case.  The lengthy trial followed nearly 7 years of investigation and preparation, and netted sentences of 28 years for the Peanut Corporation of America’s president, 20 years for the food broker, and 5 years for the office manager.  This case serves as an outstanding example of interagency cooperation between the United States Attorney’s Office, the Civil Division, the Federal Bureau of Investigation, and the Food and Drug Administration.

  Acting United States Attorney G.F. Peterman, III stated, “This case was extraordinarily difficult from a legal, factual, logistical and emotional standpoint.  The prosecutorial/investigative team worked tirelessly and with great dedication to bring this matter to a successful and just conclusion.  They are extremely deserving of this accolade.”

  EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.

  View the Original Release on justice.gov

• Miami-Dade County Resident Sentenced to 10 Years in Prison for Attempting to Coerce and Entice a Minor in Sexual Activity

  Southern District of Florida

  Read the Press Release

  A Miami-Dade County resident was sentenced to prison today for attempting to coerce and entice a minor to engage in sexual activity and for attempting to transfer obscene material to a minor.

  Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement. 

  Gerald D. Jenkins, 59, of Homestead, Florida, was sentenced to 120 months’ imprisonment, to be followed by 20 years of supervised release.  Jenkins previously pled guilty to one count of attempting to coerce and entice a minor to engage in sexual activity, in violation of Title 18, United States Code, Section 2422(b), and two counts of attempting to transfer obscene material to a minor, in violation of Title 18, United States Code, Section 1470.

  According to court documents, on September 29, 2015, law enforcement, while acting in an undercover capacity, responded to Jenkins’ advertisement on an online chat, soliciting sexual contact.  Law enforcement, posing as the father of a thirteen-year-old female (identified as “Mia”) responded to the defendant’s online advertisement via email.  During the conversation between the defendant and law enforcement, Jenkins professed his interest in having sexual contact with the thirteen-year-old.

  During communications on November 2, 2015, Jenkins stated that he was willing to purchase intimate clothing for “Mia” and to pay $1,000 in exchange for being able to have sexual contact with the minor.  

  On November 4, 2015, Jenkins requested the minor’s email address so that he could contact her directly.  Later that day, Jenkins sent an email to the account he believed belonged to the thirteen-year-old and expressed his desire to have sexual contact with the minor.  Jenkins also sent the minor a sexually explicit photograph. 

  On November 11, 2015, Jenkins emailed “Mia,” who was actually an undercover law enforcement officer posing as the thirteen-year-old, and provided graphic detail of his sexual desires and sent additional sexually explicit photographs. 

  Thereafter, Jenkins continued to have contact with the individuals he believed were the minor and her father, regarding his interest in engaging in sexual contact with the thirteen-year-old.

  Mr. Ferrer commended the investigative efforts of ICE-HSI.  The case was prosecuted by Assistant United States Attorney Joshua S. Rothstein.

  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

  View the Original Release on justice.gov

• Mexican National Charged with Possessing 15 Kilograms of Cocaine

  Western District of Missouri

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  KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national was charged in federal court today after law enforcement officers seized his suitcase containing more than 15 kilograms of cocaine from a Greyhound bus.

   

  Jose Manual Gomez-Monzon, 21, of Sinoloa, Mexico, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo.

   

  Today’s federal criminal complaint charges Gomez-Monzon with possessing cocaine with the intent to distribute.

   

  According to an affidavit filed in support of the complaint, law enforcement officers noticed a suspicious suitcase in the passenger compartment of a Greyhound bus that originated in Los Angeles, Calif., and was stopped at the Greyhound Bus Station at 1101 Troost, Kansas City, Mo., on Tuesday, May 31, 2016. The suitcase had a strong order of a chemical smell, the affidavit says, and no identifiers or tags. When passengers re-loaded the bus, officers asked who the bag belonged to, the affidavit says, but none of the passengers claimed ownership.

   

  Officers removed the suitcase and opened it. Beneath a thin layer of women’s clothing items, the affidavit says, they found 15 bundles of cocaine with a total weight of 15.69 kilograms (34.6 pounds).

   

  According to the affidavit, Gomez-Monzon, who was traveling with a woman who appeared to match the clothing size that was located in the suitcase, had been questioned earlier by officers and had been acting visibly nervous. Officers questioned Gomez-Monzon and his girlfriend and asked to search the girlfriend’s duffel bag. She told the officer there was clothing missing from her bag, and identified the clothing found in the suitcase with the cocaine as her missing clothing. Gomez-Monzon and his girlfriend were placed under arrest. Gomez-Monzon told officers that he had traveled from Mexico to Los Angeles in order to pick up a suitcase and transport it to Philadelphia, Penn.

   

  Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

   

  This case is being prosecuted by Assistant U.S. Attorney Adam Caine. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.

  View the Original Release on justice.gov

• Member of U.S. Attorney’s Office Receives Director’s Award

  District of New Jersey

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  NEWARK, N.J. – Executive Assistant U.S. Attorney Sabrina G. Comizzoli of the U.S. Attorney’s Office in the District of New Jersey was one of 160 recipients recognized by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony today in Washington D.C.

  The District of New Jersey one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

  In her prepared remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges.   From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes, and international terrorism, these awardees have taken on our toughest cases.  And the citizens of our country are safer because of their work.”

  “We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice,” said Director Wilkinson.

  Comizzoli was honored with the Director’s Award for Superior Performance in a Managerial or Supervisory Role.  Since joining the U.S. Attorney’s Office in 2002, Comizzoli served with distinction in the Office’s Appeals Division, Criminal Division, and as Counsel to the U.S. Attorney before becoming the Executive Assistant U.S. Attorney and Chief of Staff to U.S. Attorney Paul J. Fishman in 2013. Comizzoli is being recognized for her contributions to the U.S. Attorney's Office for the District of New Jersey over the past several years.

  “I am proud to celebrate this extremely talented member of our staff,” U.S. Attorney Fishman said. “And I’m delighted that the Department of Justice recognizes the important contributions our Office makes to law enforcement nationwide.”

  View the Original Release on justice.gov

• MEDIA ADVISORY -- New Mexico HOPE Initiative Partners to Meet with Silver Barelas Downtown Neighborhood Association

  District of New Mexico

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  ALBUQUERQUE – U.S. Attorney Damon P. Martinez and Dr. Cristina V. Beato, Executive Director for Health Policy and International Medicine, UNM Health Sciences Center, will participate in the June 2, 2016 meeting of the Silver Barelas Downtown Neighborhood Association as part of the prevention and education efforts of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. U.S. Attorney Martinez and Dr. Beato will be joined by representatives of the U.S. Attorney’s Office, Drug Enforcement Administration and UNM College of Pharmacy-Generation Rx. 

  WHO:            

  U.S. Attorney Damon P. Martinez

  Cristina V. Beato, M.D., FFAFP, Executive Director for Health Policy and International Medicine, UNM Health Sciences Center

  Representatives of the U.S. Attorney’s Office, Drug Enforcement Administration and UNM College of Pharmacy-Generation Rx

  WHAT:         

  HOPE Initiative Prevention and Education Presentation

  WHEN:         

  THURSDAY, JUNE 2, 2016, 5:30 p.m.

   WHERE:      

  Greater Albuquerque Chamber of Commerce

  115 Gold Street SW, Suite 201

  Albuquerque, NM 87102

  The HOPE Initiative was launched in Jan. 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national heroin and opioid epidemic, which has had a disproportionately devastating impact on New Mexico.  Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities.  Working in partnership with the DEA, Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC) and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.  The Initiative is comprised of five components:  (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning.  The new community education program is part of the prevention and education component of the HOPE Initiative.  Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.

  View the Original Release on justice.gov

• Lynchburg Woman Sentenced on Fraud Charges

  Western District of Virginia

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  LYNCHBURG, VIRGINIA – United States Attorney John P. Fishwick Jr. announced the sentencing of a Lynchburg woman on a variety of fraud charges.

  Catherine Pankey, 62, of Lynchburg, Va., who previously pled guilty in the United States District Court for the Western District of Virginia in Lynchburg to one count of conspiracy to commit mail and wire fraud and two counts of student loan fraud. Yesterday in District Court, Pankey was sentenced to 24 months in prison and ordered to pay approximately $120,000 in restitution.  

  “This sentence holds accountable a number of individuals who committed a variety of frauds,” United States Attorney John P. Fishwick Jr. said today. “The United States Attorney’s Office will continue to work with our partners in law enforcement to pursue federal charges in cases involving financial fraud.”

  The investigation of the case was conducted by The investigation of the case was conducted by the United States Department of Education- Office of the Inspector General, the United States Secret Service, the Virginia State Police, the Campbell County Sheriff’s Office and the Lynchburg Police Department. Assistant United States Attorney Jennifer R. Bockhorst will prosecute the case for the United States. Assistant United States Attorney Jennifer Bockhorst is prosecuting the case for the United States.

  View the Original Release on justice.gov

• Las Cruces Residents Plead Guilty to Federal Methamphetamine Trafficking Charges

  District of New Mexico

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  ALBUQUERQUE – Two residents of Las Cruces, N.M., pleaded guilty this afternoon in federal court to methamphetamine trafficking charges. 

  Chayanne Armando Nino, 25, and Michael Angelo Strubhar, 47, were arrested in Jan. 2016, on a criminal complaint charging them with methamphetamine trafficking offenses.    According to the criminal complaint, Nino and Strubhar sold methamphetamine to an undercover agent on July 13, 2015.

  Nino and Strubhar were subsequently indicted on Feb. 17, 2016, and charged with conspiracy to distribute methamphetamine and distribution of methamphetamine on July 13, 2015, in Doña Ana County. N.M. 

  During today’s proceedings, Nino and Strubhar each pled guilty to a felony information charging them with conspiracy to distribute methamphetamine and distribution of methamphetamine.  Each admitted that on July 13, 2015, Nino distributed methamphetamine to Strubhar who then distributed the methamphetamine to a law enforcement agent who was acting in an undercover capacity.  The weight of the methamphetamine distributed was 12.2 grams.

  Under the terms of his plea agreement, Nino will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court.  At sentencing, Strubhar faces a maximum penalty of 20 years in federal prison.  Both men remain in custody pending sentencing hearings which have yet to be scheduled.

  This case was investigated by the Las Cruces office of the DEA and is being prosecuted by Assistant U.S. Attorney John Balla of the U.S. Attorney’s Las Cruces Branch Office.

  View the Original Release on justice.gov

• Justice Department Reaches Agreement to Protect the Rights of Spanish-Speaking Voters in Napa County, California

  District not recorded

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  The Justice Department announced today that it has reached an agreement with Napa County, California, to ensure compliance with provisions of the Voting Rights Act that require the county to provide bilingual election materials and information in Spanish to voters.

  The Voting Rights Act requires that jurisdictions determined by the Census Bureau to have a substantial population of minority-language citizens with limited English proficiency, such as Napa County, provide voting materials and assistance in the minority language as well as in English.

  “The right to vote forms the foundation of our democracy, and language barriers should never keep eligible voters from accessing that right,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “This agreement ensures that Napa County’s eligible Spanish-speaking voters can access the election process and participate in our democracy by casting effective ballots.  The Justice Department commends Napa County for resolving the issue quickly and cooperatively.”              

  The agreement with Napa County requires implementation of a comprehensive Spanish language elections program for the county’s Spanish-speaking limited English proficient voters.  Under the terms of the agreement, the county will disseminate bilingual election-related information, materials and announcements.  Napa County will also ensure that Spanish-language assistance is available at all locations where election-related transactions are conducted, including polling places and voter assistance centers.

  Napa County already has hired a bilingual elections coordinator to assist in implementing the Spanish language elections program.  The county has also established an advisory group of interested community members and organizations to assist the county in determining how to most effectively provide election information and assistance to Spanish-speaking voters.  To assist in ensuring the effectiveness of the agreement’s bilingual assistance procedures, the agreement provides that Justice Department election monitors may monitor during training and early voting as well as on Election Day.

  To file complaints about discriminatory voting practices, voters may contact the Voting Section of the Civil Rights Division at 1-800-253-3931 or at [email protected].  Complaints can also be filed online here.

  More information about the Voting Rights Act and other federal voting rights laws are available on the Justice Department’s website at www.justice.gov/crt/about/vot/.

  Napa County Memorandum of Agreement

  View the Original Release on justice.gov

• Jury Convicts Albany Man of Stealing Government Property

  Northern District of New York

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  ALBANY, NEW YORK – A jury today voted to convict John E. Szumigata, age 69, of Albany, of theft of government property, for stealing Social Security benefits deposited into his deceased mother’s bank account.

  The announcement was made by United States Attorney Richard S. Hartunian and Edward J. Ryan, Special Agent-In-Charge of the Social Security Administration (SSA) Office of the Inspector General. 

  The jury reached a verdict after a two-day trial.  Szumigata faces a maximum of 10 years of imprisonment and up to 3 years of post-imprisonment supervised release.  He may also be ordered to pay restitution to the SSA.  Senior United States District Judge Gary L. Sharpe is scheduled to sentence Szumigata on September 26, 2016.  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. 

  Szumigata’s mother died in October 1999, but Szumigata continued to withdraw more than $76,000 in Social Security benefits deposited in her account from the time of her death until September 2012.  Szumigata used the Social Security benefits to write checks to himself, pay personal expenses, and transfer money to businesses that he owned. 

  This case was investigated by the SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Jason W. White.

  View the Original Release on justice.gov

• Judge Sentences Felon Convicted of Illegal Gun Possession to 70 Months in Prison

  Western District of Pennsylvania

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  PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 70 months imprisonment followed by three years supervised release on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.

  Senior United States District Judge Gustave Diamond imposed the sentence on Brandon Moorefield, 26, of Pittsburgh, Pennsylvania.

  Mr. Moorefield was convicted after a jury trial in November, 2015. According to information presented during trial, on Nov. 13, 2014, Wilkinsburg police officers on patrol near Swissvale Avenue observed the defendant, Brandon Moorefield, who was previously convicted of felony drug and gun offenses, carrying what appeared to be a firearm with an extended clip protruding from beneath his clothing. The officers approached Moorefield, who then fled with the firearm in hand and briefly hid near a building located on Stoner Way. Moorefield was arrested minutes later, and when the officers returned to the area on Stoner Way where Moorefield had been seen hiding, officers discovered a loaded Sturm, Ruger and Co. model P-95, 9 mm firearm with an extended clip. The clip was loaded with 30 rounds of ammunition, and one round was chambered.

  Assistant United States Attorney Katherine A. King prosecuted this case on behalf of the government.

  U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Wilkinsburg Police Department for the investigation leading to the successful prosecution of Brandon Moorefield.

  View the Original Release on justice.gov

• Judge Sentences Counterfeiter to 41 Months in Prison

  Western District of Pennsylvania

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  PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 41 months incarceration and three years of supervised release on his conviction of conspiracy and making counterfeit currency, United States Attorney David J. Hickton announced today.

  Senior United States District Judge Gustave Diamond imposed the sentence on William Perry Bagley, 32, of Pittsburgh, Pa.

  According to information presented to the court, from in and around May 2013 to June 20, 2013, Bagley made counterfeit currency and Bagley had others pass counterfeit currency on his behalf.

  Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.

  U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Bagley.

  View the Original Release on justice.gov

• Honduran National Sentenced for Illegal Rentry

  Eastern District of Louisiana

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  U.S. Attorney Kenneth A. Polite announced that JORGE MALDONADO-RIOS, age 29, a citizen of Honduras, was sentenced today after previously pleading guilty to illegal reentry of a removed alien and conspiracy to transfer identification documents.

  U.S. District Judge Sarah S. Vance sentenced MALDONADO-RIOS time served to be followed by one year of supervised release.  MALDONADO-RIOS will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

  According to court documents, MALDONADO-RIOS illegally reentered the United States after he was deported on August 16, 2012.  The court documents also indicated that MALDONADO-RIOS conspired with two other individuals to sell a social security card and birth certificate to a confidential informant working with special agents of the Department of Homeland Security. 

  U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Homeland Security Investigations, in investigating this matter.  Assistant U.S. Attorney Spiro G. Latsis was in charge of the prosecution.

  View the Original Release on justice.gov

• Harrison County, WV woman pleads guilty to unlawful possession of firearms

  Northern District of West Virginia

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  CLARKSBURG, WEST VIRGINIA – Tiffany Renee Taylor, 26, of Clarksburg, pled guilty today to unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.

  Taylor, who is addicted to heroin, was discovered in unlawful possession of a .45 caliber firearm in April 2015 in Harrison County, West Virginia.

  Taylor pled guilty today to one count of “Possession of a Firearm While Being an Unlawful User and Addicted to a Controlled Substance.” She faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

  Assistant U.S. Attorney Shawn Adkins prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.

  U.S. District Judge Irene M. Keeley presided.

  View the Original Release on justice.gov

• Guilford Man Pleads Guilty to Distributing Heroin and Oxycodone

  District of Maine

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  Contact: Jody Mullis
  Assistant United States Attorney
  Tel: (207) 945-0373

  Bangor, Maine:  United States Attorney Thomas E. Delahanty II announced that Willie Harper, 47, of Guilford, Maine, pleaded guilty today in U.S. District Court to one count of distribution of heroin and one count of distribution of oxycodone. 

  According to court records, on August 13, 2015, Harper met with an undercover law enforcement officer at a grocery store parking lot.  Harper provided the undercover officer with heroin in exchange for $500.   On August 27, 2015, Harper met with the undercover officer at a Rite-Aid parking lot.  Harper provided the undercover officer with ten oxycodone pills in exchange for $500. 

  Harper faces up to 20 years in prison for each count, a $1,000,000 fine, and between three years and a lifetime of supervised release.  He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.

  The investigation was conducted by the Drug Enforcement Administration and the Greenville, Maine, Police Department.

  View the Original Release on justice.gov

• Greenbrier County heroin dealer pleads guilty to Federal drug crime

  Southern District of West Virginia

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  BECKLEY, W.Va. – A Greenbrier County man pleaded guilty today to a federal drug crime, announced Acting United States Attorney Carol Casto. James Michael Payne, 63, of Frankford, entered his guilty plea to distribution of heroin.   

  Payne admitted that on August 21, 2015, he distributed six stamps, or packets, of heroin to a confidential informant cooperating with law enforcement authorities. The drug deal took place in the Fairlea area of Greenbrier County. Payne also admitted that he distributed a total of approximately 100 stamps of heroin during August and September of 2015. 

  Payne faces up to 20 years in federal prison when he is sentenced on August 31, 2016. 

  This case was investigated by the Greenbrier County Drug and Violent Crime Task Force. Assistant United States Attorney John File is handling the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.

  This prosecution was brought as part of the Greenbrier Heroin and Pill Initiative, an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.

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  View the Original Release on justice.gov

• Glassport Woman Sentenced to Prison for Defrauding Finney Funeral Home

  Western District of Pennsylvania

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  PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 18 months imprisonment followed by three years supervised release and ordered to pay $249,664.80 in restitution on her conviction of issuing forged checks, theft of government money and access device fraud, United States Attorney David J. Hickton announced today.

  United States District Judge Gustave Diamond imposed the sentence on Deborah A. Mattie, 48, of Glassport, Pennsylvania.

  According to information presented to the Court at the guilty plea, Mattie defrauded the Finney Funeral Home.

  Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.

  The Federal Bureau of Investigation, the Office of Inspector General of the U.S. Department of Housing and Urban Development and the Allegheny County Police Department conducted the investigation leading to the Information in this case.

  View the Original Release on justice.gov

• Geneseo Man Indicted on Charges of Theft of Government Funds and Making False Statements Related to Military Service

  Central District of Illinois

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  Rock Island, Ill. –A Geneseo, Ill., man, William R. Jones, appeared in federal court this afternoon charged with theft of government funds and making false statements to the U.S. Department of Veterans Affairs to support payment of disability benefits. U.S. District Judge Sara Darrow set the case for trial on Aug. 1, 2016. The indictment, returned in May by the grand jury, remained sealed pending Jones’ surrender for today’s scheduled court appearance. Judge Darrow ordered that Jones be released on bond with conditions of release, including surrender of Jones’ gun safe key.  

  The indictment alleges that Jones, 66, of the 700 block of Willow Drive, made false statements claiming that he served in Vietnam in the 1970s when in fact, Jones never served in Vietnam. According to the indictment, in July 2013, Jones submitted a form containing false information to the office of U.S. Senator Richard J. Durbin to support his claim for veterans disability benefits. The form indicated that Jones had served in combat in Vietnam in 1972; that he was assigned to Special Operations in Vietnam; and that he was shot down in enemy territory and rescued three weeks later by U.S. Marines. In fact, according to the indictment, Jones never served in Vietnam.

  In May 2015, on two occasions, to support his request to start veterans disability benefits on an earlier date, Jones allegedly made false statements to employees of Veterans Affairs as follows:  that he had an updated military form, a fabricated document Jones allegedly drafted and procured to deceive the Department of Veterans Affairs, that reflected his combat medals; that he was assigned to 10th Special Operations in Vietnam; that he was assigned to conduct drug interdiction missions in the Golden Triangle area of Southeast Asia, and that he was wounded by shrapnel caused by a mortar round while he was a crewman on a Spectre Gunship.  In fact, as Jones knew, he was never assigned to any military unit in Vietnam and never served in Vietnam.    

  If convicted for theft of government funds from December 2014 to December 2015 (one count), the maximum statutory penalty is 10 years in prison; for each count of making false statements (three counts), the maximum penalty is five years in prison. Both offenses carry fines of up to $250,000.

  The case is being prosecuted by Assistant U.S. Attorney Don Allegro of the Rock Island Division of the Central District of Illinois. The U.S. Veterans Affairs Office of Inspector General investigated the charges.

  Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.

  View the Original Release on justice.gov

• Fraudster Pleads Guilty to Offense That Targeted Former Victims of Ponzi Scheme

  District of New Hampshire

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            CONCORD, N.H. – Ronald Mason, age 47, has pleaded guilty to a mail fraud scheme that involved the theft of more than $625,000 from five New Hampshire residents, announced United States Attorney Emily Gray Rice.

            In October 2004, Mason was sentenced by a United States District Court in Texas to 33 months in prison and three years of supervised release.  While Mason was serving that sentence, Scott Farrar, and Farrar’s business associate, Donald Dodge, who operated under the name Financial Resources Management (FRM), pled guilty in U.S. District Court in New Hampshire to a Ponzi scheme that involved the theft of more than $30 million from FRM’s customers.  Farrar and Dodge falsely promised some of FRM’s investors that their money would be used to finance the construction of a condominium complex in Concord, New Hampshire. 

              After being released from prison, Mason absconded from supervision and a warrant was issued for his arrest.  Mason used a false last name, Budalucci, and moved to Concord, New Hampshire.

              Mason caused letters to be delivered by the United States Postal Service to more than 100 people whom Farrar and Dodge defrauded by falsely promising to invest their money in the same condominium project in Concord.  The letter invited these victims to participate in a plan by which additional condominiums would be constructed and sold.  Three former victims responded to the letter and met with Mason.  Unaware that Mason was a fugitive from justice, the victims provided more than $475,000 to Mason over a 30-month period because he falsely promised that their money would be used to build and sell condominiums and for other income-producing real estate projects in New Hampshire.

              During the same period, Mason borrowed more than $150,000 from two other residents of New Hampshire by concealing his status as a fugitive and falsely promising that he would repay the loans with money he would receive from incoming-producing real estate projects in New Hampshire.

              A sentencing hearing  is scheduled for September 13, 2016.

              The case was investigated by the United States Secret Service and the United States Postal Inspection Service.  The case was prosecuted by AUSA Robert Kinsella.

  ###

  View the Original Release on justice.gov

• Franklin, Kentucky, Physician Guilty of Illegal Distribution of Controlled Substances

  Western District of Kentucky

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  Prescribed opiate pain medications outside the course of professional medical practice and without a legitimate medical purpose.

  Two patients died while under his care.

  BOWLING GREEN, Ky. – A Franklin, Kentucky, physician pleaded guilty today in U.S. District Court before Magistrate Judge H. Brent Brennenstuhl to charges of the illegal distribution of controlled substances by way of prescribing opiate pain medications outside of the course of professional medical practice and without a legitimate medial purpose, announced U.S. Attorney John E. Kuhn, Jr.

  According to the plea agreement, Roy D. Reynolds, age 66, was a doctor practicing in Franklin, Kentucky, in Simpson County during the time of the illegal activity. Dr. Reynolds was the treating physician to patients known as J.H. and J.R. at the time of their deaths. According to autopsies, both patients died from pharmaceutical overdoses.

  According to information in the plea agreement, J.H. had a history of illegal drug usage and psychiatric issues which were documented in his patient charts.  Further, this patient had a KASPER report also suggesting opiate abuse and diversion.  Although J.H. made various somatic complaints, Dr. Reynolds never objectively documented a legitimate source of pain. Also, an opiate centric treatment plan was contraindicated because of risk factors inherent with a history of drug abuse.

  Nonetheless, Dr. Reynolds admitted to placing J.H. on a regimen of chronic opiate therapy, and did not monitor or enforce patient accountability, (did not perform urine screens or pill counts), and did not attempt to wean J.H. off opiates.  Between February 2009 and April 2011, Dr. Reynolds repeatedly prescribed oxycodone, a Schedule II controlled substance, and Xanax, a Schedule IV controlled substance, to J.H. outside the course of professional medical practice and without a legitimate medical purpose. 

  On April 3, 2011, J.H. died at age 46 of a pharmaceutical overdose, and an autopsy revealed oxycodone at five (5) times the upper therapeutic concentration.  Two days prior to his death, Dr. Reynolds prescribed J.H. 180 oxycodone pills and 90 Xanax pills.

  J.R. was Dr. Reynolds’s patient between July 2010 and December 2011.  J.R. presented vague complaints of knee, neck and shoulder pain, but MRI’s and physical examinations failed to identify any significant pathologies.  A legitimate pain diagnosis was never established, and J.R.’s patient records reflect a history of alcohol abuse, doctor shopping, drug dependency, and non-compliance.  Controlled substances were contraindicated, but Dr. Reynolds repeatedly prescribed hydrocodone, a Schedule III controlled substance at the time, and Xanax and clonazepam, Schedule IV controlled substances, outside the course of professional medical practice and without a legitimate medical purpose.  On December 30, 2011, J.R. died at age 41 of a pharmaceutical overdose, and an autopsy revealed hydrocodone at thirty (30) times the upper therapeutic concentration. 

  If convicted at trial, Reynolds could have been sentenced to no more than 30 years in prison, followed by a three year period of supervised release and fined $1.5 million. Reynolds will be sentenced by U.S. District Judge Greg Stivers in Bowling Green.

  This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Federal Bureau of Investigation (FBI) and Kentucky State Police.

  View the Original Release on justice.gov

• Fort Wayne Man Sentenced to 77 Months’ Imprisonment

  Northern District of Indiana

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  FORT WAYNE – United States Attorney for the Northern District of Indiana, David Capp, announced that Corey Stewart Eaves, 35, of Fort Wayne, Indiana, was sentenced before District Court Judge Theresa L. Springmann for being a felon in possession of a firearm. 

  Eaves was sentenced to 77 months imprisonment and 1 year supervised release. 

  According to documents filed in the case, on July 12, 2015, the Fort Wayne Police Department was called to a home in Fort Wayne for a domestic disturbance.  During the investigation, the police found multiple firearms and ammunition that was in the possession of Eaves.  Due to Eaves prior felony criminal convictions, the Fort Wayne Police Department turned the case over to the Bureau of Alcohol, Tobacco, Firearms and Explosives for a federal charge of being a felon in possession. 

  This investigation was conducted by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department.  This case was prosecuted by Assistant United States Attorney Lovita Morris-King.

  # # #

  View the Original Release on justice.gov

• Fort Hall Man Sentenced to 78 Months for Manslaughter

  District of Idaho

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  POCATELLO – Joaquin Broncho, 19, of Fort Hall, Idaho, was sentenced today to 78 months in prison for voluntary manslaughter, U.S. Attorney Wendy J. Olson announced.  Chief U.S. District Judge B. Lynn Winmill also ordered Broncho to serve three years of supervised release.  Broncho pleaded guilty on February 9, 2016.  Broncho was previously charged as a juvenile in this case, but his case was later transferred to adult court.

  According to the plea agreement, on August 29, 2014, Broncho and others were involved in a fight outside of a residence on the Fort Hall Indian Reservation.  Broncho went into the house, obtained a knife and went back outside and stabbed the victim, Joey Runninghorse.   Runninghorse was taken to the hospital where he was pronounced dead as a result of the stabbing.

  The case was investigated by the Federal Bureau of Investigation (FBI), and the Fort Hall Police Department.

  View the Original Release on justice.gov

• Former Winnebago County Purchasing Director Sally Claassen Pleads Guilty to Federal Charges of Stealing over $400,000

  Northern District of Illinois

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  ROCKFORD — The former Winnebago County Purchasing Director pleaded guilty today before U.S. District Judge Frederick J. Kapala to two counts of theft from a program receiving federal funds.  SALLY A. CLAASSEN, 57, of Roscoe, Ill., was an employee of Winnebago County from March 3, 1997, until she resigned on Sept. 11, 2015.  Claassen’s job title prior to her resignation was Purchasing Director.

  According to the written plea agreement, as Purchasing Director for Winnebago County, Claassen was responsible for receiving and reviewing invoices submitted by vendors and submitting payment to vendors.  As stated in the plea agreement, from Feb. 25, 2014 through April 27, 2015, Claassen used her position as the approver for payments from Winnebago County to vendors to steal approximately $368,137 from the County.  Claassen admitted that she accomplished this theft by asking two Winnebago County vendors to submit false invoices to Winnebago County for work that was not performed, which Claassen then paid with County funds.  Claassen then directed the two vendors to provide her with checks made out to “Cash” or to “JP Morgan Chase” for the full amounts that the vendors were paid.  As Claassen further admitted, she told the two vendors that she needed them to submit the false invoices and then provide her with the checks for the full amount of the payments to help her allocate Winnebago County money to a project being funded by a charitable organization.  In reality, Claassen stole the money by depositing the checks into her personal bank accounts.  One of the vendors provided Claassen with 5 checks that totaled $45,000.  The other vendor provided Claassen with 7 checks that totaled $323,137.  No money given to Claassen by either vendor was ever used for the purpose for which she told the vendors that it was to be used. 

  As further stated in the plea agreement, in her position as Purchasing Director, Claassen  held a Winnebago County-issued credit card that she was authorized to use to make purchases for official County business.  Claassen was required to submit invoices and supporting documentation to the County to demonstrate that items purchased were for County business.  Claassen also had the ability to purchase items for Winnebago County by requesting that Winnebago County issue a check to a particular vendor.  Claassen was required to submit invoices and supporting documentation to Winnebago County to demonstrate that the requested check was to be used to purchase items for Winnebago County business.  Claassen admitted in the plea agreement that from April 15, 2014 to July 1, 2015, she used her Winnebago County-issued credit card and checks from Winnebago County to purchase items for her personal use, including home remodeling items and personal vacations.  Claassen admitted she primarily accomplished this by either using her Winnebago County-issued credit card to make personal purchases and then submitting false or altered supporting documentation so the County would pay for the charges, or modifying or creating false invoices and submitting them to Winnebago County so the County would issue a check for the purchase. 

  According to the plea agreement, as an example of using the Winnebago County-issued credit card to accomplish the theft, on Jan. 29, 2015, Claassen used the credit card at a local vendor to purchase granite countertops for her kitchen in the amount of $6,109.  While the sales order for this purchase listed the customer as Claassen at her home address, on Feb. 12, 2015, Claassen submitted an altered version of the sales order to the County listing Winnebago County as the customer with an altered description of the items purchased.

  Another example in the plea agreement was that on May 20, 2014, Claassen ordered approximately $13,214 worth of furniture for her home and gift cards from a vendor.  The sales order provided to Claassen noted that the customer was Claassen at her home address and listed various items of furniture that had been ordered.  On the same date, Claassen caused an employee in her department to submit a request for Winnebago County to issue a payment by check to that vendor in the amount of $13,125.  In the plea agreement, Claassen admitted that with the request she submitted an altered sales order from that vendor that listed Winnebago County as the customer with an altered description of the items purchased. 

  In total, using these methods, it is the government’s position in the plea agreement that Claassen stole approximately $451,353 from Winnebago County in 2014 and 2015.  In the plea agreement, Claassen reserved the right to dispute this amount.  Claassen also agreed in the plea agreement to the entry of a forfeiture judgment to the United States all right, title, and interest that she has in any property constituting or derived from proceeds obtained, directly or indirectly and further agreed not to contest forfeiture of approximately $292,525 already seized by the United States. 

  On each count Claassen faces a maximum sentence of up to 10 years’ imprisonment, a fine of up to $250,000, or twice the gross gain or gross loss resulting from that offense, whichever is greater, and full restitution.  In addition, Claassen faces a term of supervised release of up to 5 years following imprisonment.  Claassen remains free on her own recognizance pending sentencing, which U.S. District Judge Frederick J. Kapala set for September 13, 2016, at 9:30 a.m.

  The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.

  The government is represented by Assistant U.S. Attorney Margaret J. Schneider.

  Plea Agreement

  View the Original Release on justice.gov

• Former Terrebonne Sheriff’s Officer Pleads Guilty to Theft of Federal Funds

  Eastern District of Louisiana

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  U.S. Attorney Kenneth A. Polite announced that DARRYL B. STEWART, age 49, of Houma, pled guilty today to one count of theft of government funds.

  According to court records, STEWART was the Narcotics Unit Supervisor for the Terrebonne Parish Sheriff’s Office (TPSO) during a time period when the TPSO applied for a received two separate federal grants from the Department of Justice. The two grants were for personnel overtime and equipment to support a Multi-Jurisdictional Narcotics Task Force. From 2009 through 2012, STEWART claimed and approved his own overtime from the two grants. The Federal Bureau of Investigation began to look into the billing and discovered through documents and interviews that STEWART occasionally claimed overtime for the two federal grants at the same time that he was working private security details. There were other instances where STEWART claimed federal overtime hours from the grants but he did not actually participate in the narcotics enforcement work. The amount that was improperly billed totals $15,925.

  STEWART, who resigned from the TPSO on or about April 12, 2016, faces a sentence of up to ten (10) years in prison, up to $250,000 in fines, and up to three (3) years of supervised release.  U.S. District Judge Ivan L.R. Lemelle set sentencing on September 7, 2016.

  U.S. Attorney Polite praised the work of the Federal Bureau of Investigation for its handling of the matter.  Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.

  View the Original Release on justice.gov

• Former McDowell County Assistant Prosecutor sentenced to prison for Federal tax crime

  Southern District of West Virginia

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  BECKLEY, W.Va. – A former McDowell County Assistant Prosecuting Attorney was sentenced today to a year and a half in federal prison for his conduct related to a federal tax crime, announced Acting United States Attorney Carol Casto. Jason Ray Grubb, 38, of Beaver, previously pleaded guilty for failing to collect, account for, and pay employment taxes.

  Grubb admitted that while working as a lawyer in private practice he withheld payroll taxes from the paychecks of an employee. Instead of withholding and paying those taxes as required under federal law, he kept the money and did not pay the Internal Revenue Service. Grubb also admitted that he failed to pay personal income taxes for a number of years, and that he falsified vouchers sent to West Virginia Public Defender Services, including 51 days on which he billed for over 24 hours of work.                

  The Court further required Grubb to pay restitution for his failure to pay over $247,000 in federal taxes, overbilling Public Defender Services more than $126,000, and not paying a financing company, Daniels Capital Corporation, for more than $27,000 in advances.

  This case was investigated by the Internal Revenue Service’s Criminal Investigation division and the West Virginia Commission on Special Investigations. Assistant United States Attorneys Meredith George Thomas and Eric Bacaj handled the prosecution. United States District Judge Irene C. Berger imposed the sentence.

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  View the Original Release on justice.gov

• Former LAPD Officer Pleads Guilty, Admits Trying to Smuggle Mexican Citizen in Spare Tire Well of his Car

  Southern District of California

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  Assistant U.S. Attorney Michael Lasater (619) 546-7462 or Benjamin Katz (619) 546-9604

  NEWS RELEASE SUMMARY – June 1, 2016

  SAN DIEGO – Former Los Angeles police Officer Carlos Curiel Quezada, Jr., pleaded guilty in federal court today on charges that he attempted to smuggle a Mexican citizen into the United States in the spare tire well of his car at the Otay Mesa border crossing in March of 2015.

  His girlfriend, Angelica Godinez, pleaded guilty to lying on an application for court appointed counsel. Both are scheduled to be sentenced on August 26, 2016, at 8:30 a.m. before U.S. District Judge Gonzalo Curiel.

  According to court documents, Quezada drove his 2014 Nissan Juke, with Godinez as the front seat passenger, into the United States through the Otay Mesa Port of Entry on March 14, 2015, at about 6:30 p.m. They presented their U.S. passports and told a Customs and Border Protection Officer they had nothing to declare. The officer decided to refer them aside for a more intensive inspection.

  During the inspection, officers examined the car with the Z-Portal, a non-intrusive imaging device similar to an X-ray, and detected something unusual in the rear cargo area of the vehicle. Antanasio Perez Avalos, a 26-year-old Mexican national, was found in a compartment in the spare-tire area.

  DEFENDANTS                                            Criminal Case Number 15cr1205GPC                  

  Carlos Curiel Quezada Jr.                               Age: 34                       Los Angeles, CA

  Angelica Godinez                                           Age: 31                       Los Angeles, CA

  SUMMARY OF CHARGES

  Bringing in Illegal Aliens without Presentation – Title 8 United States Code Sec. 1324(a)(2)(B)(iii)

  Maximum penalty: 10 years’ imprisonment and $250,000 fine

  AGENCY

  U.S. Customs and Border Protection

   

   

  View the Original Release on justice.gov

• Former Independence, Missouri, Police Officer Sentenced to 48 Months in Prison for Violating Civil Rights of Minor in his Custody

  Western District of Missouri

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  Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Tammy Dickinson of the Western District of Missouri announced that former Independence, Missouri, Police Officer Timothy Runnels was sentenced to 4 years in prison for violating the constitutional rights of a minor who was in his custody.

  As part of his guilty plea, Runnels admitted that while he was employed as an officer of the Independence Police Department, he deprived the minor of his civil rights by deliberately dropping the minor face first onto the ground while the minor was restrained and not posing a threat to Runnels or others.  According to the court filings, Runnels also admitted that his actions resulted in bodily injury to the minor.

  During a sentencing hearing before Senior U.S. District Court Judge Dean Whipple of the Western District of Missouri, the government provided evidence that Runnels deployed his taser into the minor’s chest during a traffic stop and then caused the electric current to run for approximately 20 seconds, four times longer than officers are trained to deploy a taser.  Evidence at the hearing revealed that as a result of the tasing, the minor went into cardiac arrest and became unresponsive.  Dash camera video of the incident depicts Runnels handcuffing the minor after the taser deployment and then picking him up.  The video and other evidence presented at the sentencing demonstrates that Runnels then deliberately dropped the handcuffed victim face-first into the pavement.  Although the minor suffered cardiac arrest and facial injuries, he survived the incident due to timely medical treatment by medical personnel at the scene and at the hospital.

  Judge Whipple issued the sentence, which will be followed by two years of supervised release. 

  “The defendant abused his authority as a law enforcement officer by depriving a minor of his constitutional rights and causing bodily harm,” said Principal Deputy Assistant Attorney General Gupta.  “While the majority of law enforcement safeguards our communities with fidelity, the department will continue to vigorously investigate and prosecute officers who violate their oath by using excessive force.”

  “This former police officer was trained and entrusted to enforce the law impartially,” said U.S. Attorney Dickinson.  “His use of excessive force violated both the public’s trust and his oath to uphold the law.  Police officers are not above the law and will be held accountable when they violate the civil rights of the citizens they are sworn to protect and serve.”

  This case was investigated by the FBI’s Kansas City Division and is being prosecuted by Trial Attorney Shan Patel of the Civil Rights Division’s Criminal Section and First Assistant U.S. Attorney David Ketchmark of the Western District of Missouri.

  View the Original Release on justice.gov

• Former EAA Principal Sentenced for Conspiracy to Commit Bribery

  Eastern District of Michigan

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  Kenyetta Wilbourn Snapp, 41, a former Educational Achievement Authority (“EAA”) principal of Denby High School and later of Mumford High School, was sentenced today to twelve months in prison as a result of her pleading guilty earlier this year to conspiracy to commit federal program bribery and federal income tax evasion charges, United States Attorney Barbara L. McQuade announced. In addition, Snapp was ordered to pay restitution in the amount of $58,050 to EAA as well as $26,233 to the Internal Revenue Service.

  Joining McQuade in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Jarod J. Koopman, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation.

  At the time of the plea, Snapp admitted to selecting Making a Difference Everyday (“M.A.D.E.”), a company owned by co-defendant Glynis Thornton , as the after-school tutoring vendor for Denby High School and then Mumford High School. In exchange, Thornton paid Snapp monetary kickbacks totaling approximately $58,000, as a reward for Snapp selecting and retaining M.A.D.E. as the after-school tutoring vendor. Thornton admitted that she disguised payments to Snapp by causing checks to be issued payable to a M.A.D.E. employee’s company, rather than paying Snapp directly. The M.A.D.E. employee would then deposit and withdraw the money and give it to Snapp. Snapp also admitted to failing to report the kickback payments as income during taxable year 2012.

  "Ms. Snapp deserves to spend time in prison for her betrayal of public trust, but this sentence demonstrates the value of early cooperation to provide information about the criminal acts of others”, stated United States Attorney McQuade.

  "Ms. Snapp and Ms. Thornton's efforts to divert funds from the struggling Detroit Public School District and students trying to better themselves is particularly disturbing," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "These convictions represent the commitment of the FBI and our partners to expose and shut down schemes that would rob our communities of the education and services that they count on and deserve."

  IRS-CI Special Agent in Charge Koopman stated, "When public officials commitcrimes, whether as part of their official duties or in their private lives, they are violating the trust of the people they serve. IRS-CI will continue to hold them accountable for their actions".

  This case was investigated by agents of the FBI and IRS-CI. This case is being prosecuted by Assistant United States Attorneys J. Michael Buckley and Frances Carlson.

  View the Original Release on justice.gov