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15 July 2016
Third Conspirator Pleads Guilty to Armed Craigslist Robberies, Shooting Two VictimsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has pleaded guilty in federal court to his role in a conspiracy to commit a series of armed robberies against victims who were contacted via craigslist, which culminated in the shooting of two victims.
Thomas Thorpe, 26, of Kansas City, pleaded guilty before U.S. District Judge Roseann Ketchmark on Thursday, July 14, 2015, to one count of conspiracy, six counts of aiding and abetting a robbery and one count of aiding and abetting the discharge of a firearm during a crime of violence.
By pleading guilty, Thorpe admitted that he participated in a conspiracy between May 1 and Sept. 19, 2014, to rob several individuals at gunpoint. Thorpe participated in six armed robberies that occurred after conspirators posted false advertisements to buy or sell items on craigslist.org in order to entice their victims to meet so that conspirators could steal money and electronics. Thorpe also admitted that he was involved in the shooting of two of their victims during their final armed robbery on July 16, 2013.
Co-defendants Troy Wright, 23, of Grandview, Mo., and Debvon Buckner, 25, of Kansas City, Mo., have also pleaded guilty. In addition to the conspiracy and firearm charges, Wright pleaded guilty to six counts of aiding and abetting a robbery and Buckner pleaded guilty to five counts of aiding and abetting a robbery.
July 16, 2014, Armed Robbery and Shooting
On the evening of July 16, 2014, Thorpe and his co-defendants robbed and shot two victims (identified as M.N. and M.K.N.) near 5500 E. 84th Terrace, Kansas City, Mo. The two victims, along with their minor son, identified as D.N., had agreed to look at a Hyundai Sonata that was listed for sale in a craigslist advertisement. M.N. and D.N. took a test drive in the vehicle with Buckner and M.N. made a purchase offer. Buckner stated that he needed to call his wife about the purchase and walked away. As he walked away, Thorpe and Wright appeared and each pointed a firearm at the victims and demanded money.
The victims tried to return to their car, but Thorpe and Wright began shooting M.N. and M.K.N. multiple times. Conspirators took money and personal property (including a purse that contained $500) from the victims then shot one of the victims again, striking him an additional time. One of the victims was transported to a local hospital for life-threatening injuries from multiple gunshot wounds.
July 16, 2014, Armed Robbery
Earlier on the same day, on the afternoon of July 16, 2014, Thorpe and his co-conspirators robbed a victim who had listed an XBOX One for sale on craigslist. The victim arranged to meet Buckner at Ridge Pointe Apartments in Kansas City, Mo. When he arrived, Buckner approached him and asked to see the XBOX. When the victim handed him the XBOX, Thorpe and Wright appeared and each pointed a firearm at the victim and demanded the XBOX One, XBOX games, and the accessories. They took those items then fled to their vehicle.
July 3, 2014, Armed Robbery
On July 3, 2014, another victim was robbed while trying to buy an XBOX from a craigslist advertisement. The victim met Buckner at Ridge Pointe Apartments after he had agreed to give him $160 and a Samsung Galaxy watch to buy the XBOX. Buckner refused to make the trade after examining the watch. When the victim began walking back to his car, Wright approached, pointed a gun at him and demanded the cash and watch. After taking the cash and watch from the victim, Wright and Buckner fled frmothe aera and met up with Thorpe.
June 30, 2014, Armed Robbery
Wright and co-conspirators posted an advertisement for a phone for sale and made arrangements to meet the victim, identified as “D.B.,” after she responded to the advertisement. When the victim met with Buckner, she decided not to purchase the phone and began to walk away. Thorpe and Wright approached her, pointed guns at her and demanded money. After she gave the men $100 they demanded her car keys, cellphone and purse. She pressed the panic button on her car keys and when alarm sounded all three of the conspirators ran away.
June 30, 2014, Armed Robbery #2
Another victim met Buckner later that night on the same date. She had been contacted about purchasing an XBOX One that she posted for sale on Craigslist. When she arrived (with two minor children in her vehicle) at Ridge Pointe Apartments in Kansas City, Mo., Buckner told her that he wanted to see the XBOX. She got out of the vehicle, opened the trunk, and put the XBOX on the vehicle. Buckner grabbed the XBOX One and fled on foot. Thorpe and Wright, armed with handguns, approached and pointed the guns at the victims in the vehicle. They demanded all of their money, purses, and XBOX games and controllers. One of the victims asked for her purse back and one of the conspirators said, “Get back in the car or I’ll shoot you” and racked the slide on his gun.
June 26, 2014, Armed Robbery
Wright posted a Samsung plasma TV for sale on craigslist and, the same day, conspirators communicated with a victim for its purchase. The victims, including their infant child, were led to an apartment on E. 42nd Street, Kansas City, Mo. When they pulled out $170 to pay for the television, Thorpe came out from the bedroom armed with two handguns, pointed the guns in their face and demanded all their money. The victims gave them all their money and fled from the apartment.
Under the terms of today’s plea agreement, Thorpe is subject to a sentence of at least 20 years in federal prison without parole, up to a sentence of 27 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Matthew P. Wolesky and Jess E. Michaelsen. It was investigated by the FBI and the Kansas City, Mo., Police Department.
The United States and the Navajo Nation Agree to Second Phase of Work to Address Abandoned Uranium MinesRead the Press Release
Today, in a settlement agreement with the Navajo Nation, the United States agreed to provide funding necessary to continue clean-up work at abandoned uranium mines on the Navajo Nation. Specifically, the United States will fund environmental response trusts to clean up 16 priority abandoned uranium mines located across the Navajo Nation. The agreement also provides for evaluations of 30 more abandoned uranium mines, and for studies of two abandoned uranium mines to determine if groundwater or surface waters have been affected by those mines.
The work to be conducted is subject to the joint oversight and approval of the Navajo Nation Environmental Protection Agency and the United States Environmental Protection Agency (EPA). The United States previously provided funding for evaluations at the 16 priority mines in a “Phase 1” settlement executed in 2015.
“This second phase agreement takes the next step in ensuring the cleanup of abandoned mines that pose the most significant risks to people’s health and initiates the evaluations of additional mines for future cleanup,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “Addressing the legacy of uranium mining on Navajo lands reflects the commitment of the Justice Department and the Obama Administration to fairly and honorably resolve the historic grievances of American Indian tribes and build a healthier future for their people.”
“We’re very pleased to continue this vital work to address the legacy of uranium mining on the Navajo Nation,” said Acting Regional Administrator Alexis Strauss for the EPA’s Pacific Southwest office. “In the last decade, the EPA has remediated 47 homes, provided safe drinking water to 3,013 families in partnership with the Indian Health Service and conducted field screening at all 523 mines.”
The Navajo Nation encompasses more than 27,000 square miles within Utah, New Mexico and Arizona in the Four Corners area. The unique geology of the region makes the Navajo Nation rich in uranium, a radioactive ore in high demand after the development of atomic power and weapons at the close of World War II. Approximately four million tons of uranium ore were extracted during mining operations within the Navajo Nation from 1944 to 1986. The federal government, through the Atomic Energy Commission (AEC), was the sole purchaser of uranium until 1966, when commercial sales of uranium began. The AEC continued to purchase ore until 1970. The last uranium mine on the Navajo Nation shut down in 1986.
Many Navajo people worked in and near the mines, often living and raising families in close proximity to the mines and mills. Since 2008, federal agencies including EPA, the Department of Energy, the Bureau of Indian Affairs, the Department of the Interior, the Nuclear Regulatory Commission and the Indian Health Service have collaborated to address uranium contamination on the Navajo Nation. The federal government has invested more than $100 million to address abandoned uranium mines on Navajo lands. EPA has also compiled a list of 46 “priority mines” for cleanup and performed stabilization or cleanup work at 9 mines. Further, EPA work cleaning up mines has generated 94 jobs for Navajo workers.
This settlement agreement resolves the claims of the Navajo Nation pertaining to costs of engineering evaluations and cost analyses, and cleanups, at the 16 priority mines for which no viable responsible private party has been identified, as well as the costs of evaluations at another 30 such mines, two water studies, and modest costs for pre-assessment of natural resources damages. In April 2014, the Justice Department and EPA announced in a separate matter that approximately $985 million of a multi-billion dollar settlement of litigation against subsidiaries of Anadarko Petroleum Corp. will be paid to EPA to fund the clean-up of approximately 50 abandoned uranium mines in and around the Navajo Nation, where radioactive waste remains from Kerr-McGee mining operations. EPA commenced field work with the proceeds from this settlement earlier this year.
Tampa Man Pleads Guilty to Tax EvasionRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Steven Headden Young has pleaded guilty to tax evasion. He faces a maximum penalty of five years in federal prison and has agreed to pay full restitution, penalties, and taxes owed to the Internal Revenue Service.
According to court documents, Young evaded a substantial portion of his personal federal income taxes for the years 2007 through 2011 by falsifying expenses to negate his income. Young, who prepared and filed his own tax returns, created bogus business expenditures and deducted them from his Schedule C income. He also falsely filed as head-of-household (HOH) to take advantage of the tax benefits of HOH filing status when he was married. This status provides for lower taxes and higher credits than filing single, married filing jointly, or married filing separately. Taking into account payments made by and tax refunds paid to Young, he owes more than $250,000, but less than $550,000, in taxes for the years 2007 through 2011.
Young also made false statements to the IRS about his marital status, claiming that he was single, when he was married and living with his wife. Further, Young interfered with the IRS audit and tax assessment of his personal federal income taxes in an attempt to intercept third party records the IRS had subpoenaed by the IRS from Bank of America (BOA) by fabricating a letter from the IRS to BOA in an attempt to redirect these bank records.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA). It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Stevenson, Alabama, Police Chief Convicted of Civil Rights Offenses for Assaulting and Failing to Protect ArresteeRead the Press Release
WASHINGTON – The Justice Department announced today that a federal jury convicted the Chief of Police of Stevenson, Alabama, Daniel Winters, 56, of two counts of deprivation of civil rights under color of law: one count for beating an arrestee, identified as D.F., and one count for failing to protect the victim from harm.
According to evidence presented at trial, on March 22, 2015, Winters and a civilian friend went to a residence to investigate suspicions that property had been stolen from the friend’s business and was located at the residence. Upon arrival, Winters and his friend entered the residence without a search warrant and encountered the victim, D.F. Winters and his friend then began to beat D.F. The beating moved outside where Winters and his friend continued to strike and kick the victim in front of the residence. Over the course of approximately five minutes, Winters not only participated in the beating, but stood by watching his friend beat D.F. and did nothing to stop it. A passing motorist called 911 to report the beating. D.F. was left bloody with wounds to his face, chest and back and was taken to the jail at the Stevenson Police Department. While at the jail, D.F. began to spit up blood. A jailor requested Winters’ permission to call an ambulance, but Winters refused the request. Eventually, the jailor received permission from another supervisor and D.F. was transported to a hospital where he received medical attention.
“This police chief abused his authority, broke the law and violated the public trust,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “When law enforcement leaders engage in egregious, unlawful conduct – as this defendant did here – they do a disservice to the thousands of hard-working officers who perform their difficult, demanding jobs each day with integrity and distinction.”
“Civil rights enforcement is a priority of our office and the trial team on this case did an excellent job of putting the evidence together and presenting it to the jury,” said U.S. Attorney Joyce White Vance of the Northern District of Alabama.
Winters faces a statutory maximum sentence of 20 years in prison for the civil rights charges. Sentencing is scheduled for Oct. 27, 2016, before U.S. District Judge Madeline H. Haikala of the Northern District of Alabama.
This case is being investigated by the FBI and Alabama’s State Bureau of Investigation. The matter is being prosecuted by Deputy Chief Laura Hodge of the Northern District of Alabama and Trial Attorney Samantha Trepel of the Civil Rights Division’s Criminal Section.
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St. Landry woman pleads guilty to stealing more than $116,000 from an Opelousas businessRead the Press Release
LAFAYETTE – United States Attorney Stephanie A. Finley announced that a St. Landry woman pleaded guilty Tuesday to stealing more than $116,000 from an Opelousas-based medical imaging business.
Misty Johnson, 40, of St. Landry, La., pleaded guilty before U.S. Magistrate Judge Patrick Hanna to one count each of wire fraud, aggravated identity theft and theft of mail. The plea will become final when accepted by U.S. District Judge Patricia Minaldi. According to the guilty plea, Johnson worked as an office manager for an Opelousas medical imaging services business from January 2009 to July 2014. She was responsible for day-to-day financial operations including billing, payroll and managing of accounts payable and receivable. Her responsibilities included access to the company’s financial information and mail. She also had signatory authority on business accounts and was provided a company credit card for making purchases. In order to further the scheme, she would write checks to herself or to cash, issue herself additional paychecks and make unauthorized purchases on the company credit card. She would then alter the company’s account records to look as though she was properly paying the company’s bills. Johnson also stole company mail including past-due bills and brought them to her home. Johnson’s theft totaled $116,106.50.
Johnson faces a maximum of 20 years in prison for the wire fraud count and five years for the theft of mail count. She also faces a mandatory minimum of two years in prison for the aggravated identity theft count. Additionally, she faces five years of supervised release, a $250,000 fine and restitution. A sentencing date was not set.
The U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorneys Dominic Rossetti and John Luke Walker are prosecuting the case.
Roswell Woman Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Destiny Stephenson, 35, of Roswell, N.M., pled guilty today in federal court in Las Cruces, N.M., to methamphetamine trafficking charges.
Stephenson is one of 41 individuals charged in Sept. 2015, with drug trafficking offenses as a result of an eight-month multi-agency investigation by the FBI, the DEA, Chaves County Metro Narcotics Task Force, Roswell Police Department, Chaves County Sheriff’s Office and New Mexico State Police. Twenty-one of the defendants were charged with federal offenses and the remaining 20 with state crimes.
The investigation, which was designated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, initially targeted a drug trafficking organization (DTO) allegedly led by Joseph Ray Mendiola, 34, of Roswell, that allegedly distributed methamphetamine in Chaves County. It later expanded to include drug traffickers who allegedly supplied methamphetamine to the Mendiola DTO and other drug traffickers operating in Chaves County. The OCDETF program combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Sixteen of the 21 defendants facing federal charges were charged in a 24-count indictment filed on Sept. 22, 2015. The remaining five federal defendants were charged in criminal complaints. The 20 state defendants were charged by criminal complaints.
Count 1 of the Indictment charged 15 of the 16 defendants with conspiracy to distribute methamphetamine between June 2015 and July 2015. Count 2 charged three defendants with conspiracy to distribute cocaine in July 2015. Counts 3, 4, 5, 6 and 7 charged certain defendants with possession of methamphetamine with intent to distribute in July 2015. Counts 8 through 24 charged certain defendants with using communications devices (telephones) to facilitate drug trafficking crimes. All crimes charged in the federal indictment occurred in Chaves County.
During the course of the investigation, law enforcement officers executed 14 federal search warrants for 10 residences in Roswell, one residence in Dexter, N.M., and three vehicles. During the execution of those search warrants, the officers seized approximately 5600 grams of methamphetamine, $35,960.00 in cash, and multiple firearms including two assault rifles. Five of the federal defendants, including Mendiola, were arrested on July 31, 2015, the date on which the officers executed the 14 federal search warrants.
During today’s proceedings, Stephenson pleaded guilty to conspiracy and possession of methamphetamine with intent to distribute. In entering the guilty plea, Stephenson admitted that between June 2015 and July 31, 2015, she conspired to distribute methamphetamine in Chaves County. Stephenson further admitted that on July 17, 2015, Chaves County Drug Task Force officers discovered 58.5 grams of methamphetamine in her vehicle which she intended to distribute. At sentencing Stephenson faces a maximum of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
On Feb. 24, 2016, co-defendant Susan Ceballos, 35, of Roswell, pled guilty to conspiracy and use of a communication device to facilitate a drug trafficking crime. At sentencing, Ceballos faces a maximum of 20 years in federal prison. A sentencing hearing has yet has yet to be scheduled.
The remaining 19 defendants facing federal charges have entered not guilty pleas to the indictment. Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The federal cases were investigated by the Roswell office of FBI’s Albuquerque Division, the Las Cruces office of DEA, Roswell Police Department, Chaves County Sheriff’s Office, the Chaves County Metro Narcotics Task Force, the New Mexico State Police and the U.S. Marshals Service. The state cases were investigated by the New Mexico State Police. Assistant U.S. Attorney Randy M. Castellano is prosecuting the federal cases, and the Fifth Judicial District Attorney’s Office is prosecuting the state cases.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Rochester Man Sentenced for Trafficking Fentanyl and Firearms CrimesRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Anthony Elton Cook was sentenced to 78 months in federal prison based upon his plea of guilty to charges arising from possession of fentanyl with intent to distribute and his unlawful possession of a firearm in connection with his drug trafficking activity. Cook previously had pleaded guilty to one count of Possession of Fentanyl with Intent to Distribute, Possession of a Firearm in Connection with a Drug Trafficking Offense and Unlawful Possession of a Firearm. Cook, 26 years old, lived in Rochester, New Hampshire before he was taken into custody on related charges in January.
According to court documents, testimony and statements Cook made in earlier proceedings, a Rochester, N.H., police patrol officer pulled Cook over for a suspected motor vehicle violation on July 12, 2015. An ensuing search of Cook’s car and person yielded, among other things, a distribution quantity of fentanyl, a hand gun and ammunition. Cook previously had been convicted of a felony and therefore was prohibited under federal firearms laws from possessing a gun. The police also recovered from Cook $1900 in small cash denominations.
U.S. District Judge Paul J. Barbadoro sentenced Cook. In addition to the term of incarceration, Judge Barbadoro ordered Cook to serve, upon his release from prison, a term of supervised release of 5 years. While on supervised release, Cook will be required to abide by certain rules and conditions established by the court. If he fails to abide by those rules and conditions, he could be returned to prison to serve additional time. Finally, Judge Barbadoro forfeited Cook’s interest in the $1900 cash and ordered Cook to pay an additional $300 in administrative court fees.
This matter was investigated by the Rochester (N.H.) Police Department with support from the Bedford, N.H., field office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Bill Morse.
Roanoke Man Sentenced on Federal Gun ChargeRead the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced the sentencing today of a Roanoke man who previously pled guilty to a federal gun charge.
Clifton Deron Campbell, 38, of Roanoke, Va., pled guilty in March to one count of being a previously convicted felon illegally in possession of a firearm. Today in the United States District Court for the Western District of Virginia in Roanoke, Campbell was sentenced to 180 months in federal prison.
“We will continue to work with our local, state and federal law enforcement partners to get illegal guns off the streets of our communities,” United States Attorney John P. Fishwick Jr. said today. “We know a key in keeping our communities safe is keeping illegal guns out of the hands of those who mean harm and this sentence shows how serious we take that mission.”
The investigation of the case was conducted by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roanoke City Police Department. Assistant United States Attorney Donald R. Wolthuis prosecuted the case for the United States.
Pine Ridge Man Acquitted of AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, man was acquitted of Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury as a result of a federal jury trial in Rapid City on July 12, 2016.
Franklin Long Black Cat, a/k/a Franklin Long, age 22, was indicted by a federal grand jury on March 22, 2016.
The charges related to an incident which occurred on February 14, 2016, when Long Black Cat allegedly assaulted his brother with a screwdriver.
The investigation was conducted by the Bureau of Indian Affairs, Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. The U.S. Attorney's Office prosecuted the case.
Philadelphia Trio Charged by Superseding Indictment in 30 Illegal Gun SalesRead the Press Release
PHILADELPHIA – A superseding indictment was filed yesterday charging three men with dealing in firearms without a license, announced United States Attorney Zane David Memeger. Darien Montae Thompson, 22, Omar Tarik Davenport, 24, and Sekou Maliek Davenport, 21, all of Philadelphia, are charged with selling guns that were previously reported stolen from homes and vehicles. Thompson and Omar Davenport are also charged with conspiracy, interstate travel in furtherance of dealing in firearms without a license, and possession of a short-barreled rifle; Omar and Sekou Davenport are also charged with possession of a firearm by a convicted felon.
According to the indictment, the defendants illegally acquired firearms in the state of Georgia and transported the firearms to Pennsylvania for illegal sale. Guns that the defendants allegedly sold had been reported stolen from homes in Georgia, Pennsylvania, and South Carolina. Omar Davenport was on state parole, following a felony conviction, during the time of the alleged conspiracy.
If convicted of all charges, Thompson faces a maximum statutory sentence of 55 years in prison and a $700 special assessment; Omar Davenport faces a maximum statutory sentence of 80 years in prison and a $800 special assessment; Sekou Davenport faces a maximum statutory sentence of 50 years in prison and a $500 special assessment. Each defendant also faces supervised release and a possible fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Mark Miller.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.
Palm Beach County Resident Found Guilty of Defrauding Federal AgenciesRead the Press Release
Alexander Robert Xavier, 51, of Jensen Beach, Florida, was found guilty on July 14, 2016, of defrauding federal agencies by issuing fraudulent bonds to insure government construction projects.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Florida, Jerry Polk, Special Agent in Charge, United States Environmental Protection Agency, Office of the Inspector General (EPA-OIG), Atlanta Field Office and Monty Stokes, Special Agent in Charge, United States Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division (VA-OIG), Southeast Field Office, made the announcement.
A jury convicted Xavier of mail fraud, in violation of Title 18, United States Code, Section 1341, major fraud, in violation of Title 18, United States Code, Section 1031, and making a false statement to the United States Department of the Army, in violation of Title 18, United States Code, Section 1001. A sentencing hearing has been set before U.S. District Judge Kenneth A. Marra on September 30, 2016. Xavier faces a statutory maximum sentence of 35 years’ imprisonment.
According to court documents and evidence introduced at trial, from approximately May 2008 to October 2010, Xavier devised a scheme to unlawfully enrich himself by representing that he was an “individual surety” on various performance and payment bonds – a type of insurance required on major government construction contracts. During the course of the fraud, Xavier pledged millions of dollars in assets to agencies of the United States. In truth, and as Xavier well knew, there were no such assets.
The evidence at trial showed that Xavier issued a large number of bonds and dealt with various contractors and government agencies. Often, the construction contracts had “modifications,” that is, contract expansions, that led to more bonds being issued.
During the course of the scheme, Xavier pledged over $25 million in collateral for the bonds. Xavier was paid over $400,000 in bond fees as a result. The defrauded federal agencies included, among others, the United States Department of the Army and the United States Department of Labor.
Mr. Ferrer commended the investigative efforts of the EPA-OIG, VA-OIG. Mr. Ferrer also thanked the U.S. Army Criminal Investigation Command; U.S. Department of Defense-OIG, Defense Criminal Investigative Services; U.S. General Services Administration-OIG; U.S. Department of Housing and Urban Development-OIG; and Department of State-OIG.
This case is being prosecuted by Assistant U.S. Attorneys Christopher Browne and Wilfredo Fernandez.
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.
Orange County Man Pleads Guilty to Production of Child PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Thomas Samborski, II (39, Orange County) has pleaded guilty to enticement of a minor to produce child pornography. He faces up to 20 years in federal prison and a life term of supervision. In addition, Samborski has agreed to pay restitution to the minor victim. The sentencing hearing has been scheduled for October 6, 2016, before United States District Judge Carlos E. Mendoza.
According to court records, Samborski made sexually suggestive advertisements regarding photographs of three minor children, including “minor victim 1,” on a file sharing website. As a result, a preliminary investigation eventually resulted in a federal search warrant being executed at his residence. During the execution of the warrant, Samborski’s cell phone was searched and found to contain child pornography depicting “minor victim 1,” which had been produced at his apartment on March 1, 2015, and March 3, 2015. The Internet history on the cell phone included searches and websites pertaining to rape; making chloroform; how to have sex with a virgin; spy and hidden cameras; and other similarly offensive searches. Samborski held a position of custody, care, or supervisory control over “minor victim 1,” a 9-year-old child.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ohio Man Sentenced to Life in Prison for Engaging in Child Exploitation EnterpriseRead the Press Release
WASHINGTON – A Hamilton, Ohio, man was sentenced today to life in prison for engaging in a child exploitation enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney James A. Lewis of the Central District of Illinois and Special Agent in Charge Sean Cox of the FBI’s Springfield, Illinois, Division.
Jason Gmoser, 36, was sentenced by U.S. District Judge Colin S. Bruce of the Central District of Illinois, who also sentenced him to 30 years and 20 years in prison to be served concurrent to the life sentence for conspiring to advertise and conspiring to distribute child pornography, respectively, and ordered him to serve a lifetime term of supervised release. Gmoser was convicted by a federal jury in Urbana, Illinois, on Feb. 12, 2016.
Gmoser was arrested on Oct. 16, 2014, following a court-authorized search of his home in Hamilton. Forensic examination of computers and devices seized pursuant to that search found that he was in possession of millions of files depicting the sexual exploitation of children. Evidence at trial established that Gmoser acted as a member and co-administrator of a highly-sophisticated global enterprise dedicated to the sexual exploitation of children, organized via a members-only website that operated on the Tor anonymity network, through which he and others posted thousands of messages containing images of sexual exploitation involving pre-pubescent children. According to sentencing documents, as of July 2014, the website hosted nearly 30,000 members, who were required to share illicit child pornography images in order to gain and keep membership and included numerous child pornography producers who were actively abusing children. Site members employed advanced technological means in order to undermine law enforcement’s attempts to identify them, including the use of a hidden service on the Tor network and elaborate file encryption, according to the sentencing papers.
The FBI’s Springfield Field Office and the FBI’s Violent Crimes Against Children Section, Major Case Coordination Unit and Digital Analysis and Research Center led the investigation of this case. Acting Assistant Deputy Chief Keith Becker and Trial Attorney Elly Peirson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ohio Man Sentenced to Life in Prison for Engaging in Child Exploitation EnterpriseRead the Press Release
A Hamilton, Ohio, man was sentenced today to life in prison for engaging in a child exploitation enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney James A. Lewis of the Central District of Illinois and Special Agent in Charge Sean Cox of the FBI’s Springfield, Illinois, Division.
Jason Gmoser, 36, was sentenced by U.S. District Judge Colin S. Bruce of the Central District of Illinois, who also sentenced him to 30 years and 20 years in prison to be served concurrent to the life sentence for conspiring to advertise and conspiring to distribute child pornography, respectively, and ordered him to serve a lifetime term of supervised release. Gmoser was convicted by a federal jury in Urbana, Illinois, on Feb. 12, 2016.
Gmoser was arrested on Oct. 16, 2014, following a court-authorized search of his home in Hamilton. Forensic examination of computers and devices seized pursuant to that search found that he was in possession of millions of files depicting the sexual exploitation of children. Evidence at trial established that Gmoser acted as a member and co-administrator of a highly-sophisticated global enterprise dedicated to the sexual exploitation of children, organized via a members-only website that operated on the Tor anonymity network, through which he and others posted thousands of messages containing images of sexual exploitation involving pre-pubescent children. According to sentencing documents, as of July 2014, the website hosted nearly 30,000 members, who were required to share illicit child pornography images in order to gain and keep membership and included numerous child pornography producers who were actively abusing children. Site members employed advanced technological means in order to undermine law enforcement’s attempts to identify them, including the use of a hidden service on the Tor network and elaborate file encryption, according to the sentencing papers.
The FBI’s Springfield Field Office and the FBI’s Violent Crimes Against Children Section, Major Case Coordination Unit and Digital Analysis and Research Center led the investigation of this case. Acting Assistant Deputy Chief Keith Becker and Trial Attorney Elly Peirson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Newtown Square Owner of Mortgage and Title Comapnies Charged with Defrauding Lenders of Almost $13,000,000Read the Press Release
An Indictment1 was unsealed today charging George Barnard, 45, of Newtown Square, with 24 counts of wire fraud, four counts of bank fraud, and three counts of filing a false tax return, announced United States Attorney Zane David Memeger.
The indictment alleges that Barnard, who from 2005 to March 2013 was one of the two owners of Capital Financial Mortgage Corporation ("CFMC"), based in Delaware County, Pennsylvania, and also was the owner of several title companies, defrauded banks out of almost $13 million dollars and instead of using the money to fund mortgage loans for borrowers and pay off the borrowers’ existing mortgages, he took the money for his personal benefit, including buying yachts, luxury cars, multi-million dollar beach homes in Avalon, New Jersey, and paying the salary of a yacht captain. The indictment further alleges that in order to continue to have access to a large pool of money to fund his extravagant lifestyle, Barnard orchestrated a massive fraud scheme, which included selling other banks the mortgages that CFMC had written and representing to the lenders who purchasing those mortgages that they were first mortgages, when in reality they were worthless second mortgages.
The indictment alleges that while the tax returns Barnard filed with the IRS showed hundreds of thousands of dollars in losses, in reality Barnard had more than $2,300,000 in unreported income, and in order to convince other banks to issue mortgage loans to him so he could purchase yachts and multi-million dollar beach homes, Barnard gave false tax returns to
the banks with inflated income figures, and on at least one occasion, told the bank that he was buying the beach home for more than $3,000,000 when in reality the sales price was $2,000,000. The indictment alleges that Barnard was able to conceal this deception by using his own title company to handle the closing of that loan and falsifying closing documents.
The indictment alleged that as a result of Barnard’s actions, lenders suffered losses of more than $12,700,000, and more than 25 borrowers who obtained refinance loans from CFMC were stuck with two mortgages on their homes after Barnard’s companies failed to pay off the borrowers’ existing first mortgages.
Barnard faces a maximum sentence of 669 years’ imprisonment, a five-year period of supervised release, a $12,300,000 fine, a $3,300 special assessment, and a likely advisory sentencing guideline range of 135 – 168 months’ imprisonment.
The case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development, Office of Inspector General, and the Internal Revenue Service, Criminal Investigative Division, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
1 An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty
Miami Resident Sentenced for Smuggling Birds from CubaRead the Press Release
Hovary Muniz, 39, of Miami, was sentenced today in Fort Lauderdale, for his involvement in an attempt to import undeclared wildlife from Cuba, in violation of the federal anti-smuggling statute, Title 18, United States Code, Section 545.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Resident Agent in Charge David Pharo, United States Fish & Wildlife Service, Major Alfredo Escanio, Florida Fish & Wildlife Conservation Commission, South Region Bravo, and Christopher D. Maston, Port Director for Miami International Airport, Customs and Border Protection (CBP), made the announcement.
U.S. District Judge James I. Cohn sentenced Muniz to four months of home confinement with electronic monitoring and a term of three years’ probation, with the special condition that he perform 200 hours of community service.
According to the charges, statements in court, and an agreed upon factual statement Muniz was intercepted at Miami International Airport on January 9, 2016, returning to the United States aboard a flight originating in Havana, Cuba. In a CBP Entry Declaration, Muniz claimed he was not carrying any birds or other wildlife. When specifically questioned by CBP Officers, Muniz verbally repeated that he had no birds to declare.
In a subsequent pat-down, CBP officers found that MUNIZ was carrying plastic tubes concealed in his underwear and in a fanny pack hidden beneath his shirt, containing live birds. Muniz was found to be transporting nine live birds, including five Cuban Melodious Finches (Tiaris canora), one Cuban Bullfinch (Melopyrrha nigra), one Yellow-faced Grassquit (Tiaris olivaceus), one Indigo Bunting (Passerina cyanea), and one Blue Grosbeak (Passerina caerulea).
Under federal law, all wildlife, including birds, being imported into the United States must, be made available for inspection and properly declared to the United States Fish and Wildlife Service and CBP, pursuant to Title 50, Code of Federal Regulations, Sections 14.52 and 14.61. Some wildlife is also subject to quarantine before they can be released into the country. The purpose of the quarantine regulations are, in part, to protect both commercial and wild species of avians in the United States from possible exposure to diseases such as Exotic Newcastle’s and other maladies against which they would have no natural immunity. According to the U.S. Department of Agriculture, Cuba is considered a high-risk source country for high pathogenic avian influenza and Exotic Newcastle’s disease.
During the continuing investigation, utilizing aircraft provided by the CBP Air & Marine Branch, agents detected the presence of active bird-traps at Muniz’s residence and executed a search warrant which located additional Cuba-origin specimens and various domestic species of birds protected under the Migratory Bird Treaty Act.
Mr. Ferrer commended the investigative efforts of the Special Agents of the Fish & Wildlife Service, the Customs & Border Protection Officers at Miami International Airport, U.S. Customs & Border Protection Air & Marine Branch, and the Florida Fish & Wildlife Conservation Commission, who investigated this matter. The case is being prosecuted by Assistant United States Attorney Thomas Watts-FitzGerald of the Economic & Environmental Crimes section of the U.S. Attorney’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.
Meriden Construction Company Pleads Guilty to Federal Tax ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SRC CONSTRUCTION, INC., of Meriden, waived its right to indictment and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of filing a false tax return.
According to court documents and statements made in court, SRC CONSTRUCTION, a real estate development and construction management firm, employed an internal accounting department that handled the general ledger, journal entries and bank accounts for the business, including the receipt and payment of invoices. At least one individual employed by the company was responsible for overseeing and coordinating the business and financial matters for the company’s owner. That individual and others under the individual’s control reviewed payments made by the company to employees, vendors and others, and directed how the items should be expensed. The individual instructed others that most, if not all, invoices be paid out of company funds, including a series of expenses that the individual knew were not deductible business expenses. The individual, who also was responsible for providing to the company’s outside accountants all information to prepare audited financial statements and tax returns, knowingly provided to the accountants a substantial number of non-deductible expenses knowing that they were non-business expenses.
In February 2006, SRC CONSTRUCTION willfully made and subscribed a false corporate tax return, a 2004 Form 1120 for the fiscal year ending April 30, 2005, that overstated expenses. As a result, for the 2004 tax year, the company failed to report corporate income totaling $296,642, resulting in tax loss of $112,609.
Judge Underhill scheduled sentencing for October 21, 2016, at which time SRC CONTRUCTION faces a maximum term of probation of five years and a fine of up to $500,000.
In addition to paying all back taxes, interest and penalties, SRC has agreed to pay a fine in the amount of $250,000.
This case has been investigated by the Internal Revenue Service – Criminal Investigation Division and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Christopher Schmeisser and Jennifer Laraia.
McLaughlin Woman Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, woman convicted of Assault Resulting in Serious Bodily Injury was sentenced on July 11, 2016, by U.S. District Judge Charles B. Kornmann.
Makayla Kills In Water, a/k/a Makayla Iron Cloud, age 22, was sentenced to 120 months in custody, followed by 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Kills In Water was indicted by a federal grand jury on October 15, 2014. She pled guilty on April 25, 2016.
The conviction stemmed from an incident on September 20, 2014, when Kills In Water’s two-year old stepdaughter was brought to the Mobridge Regional Hospital by ambulance. The young victim was drifting in and out of consciousness and was not breathing on her own. Kills In Water was caring for the young victim at the time the injuries were sustained.
Kills In Water initially informed hospital staff and law enforcement that she was under an extreme amount of stress and had been for the past several days. After dropping her husband off at work, Kills In Water drove to their residence with the children, including the victim. The children were growing restless and fussing, which further agitated Kills In Water.
When she arrived at the residence, Kills In Water went to the door and turned on the light. When she turned around, she claimed to have seen the victim fall out of the vehicle and began crying, so Kills In Water went and helped her into the house. Once inside the residence, the victim continued to cry. The victim became non-responsive and began struggling with her breathing so Kills In Water called 911 to dispatch an ambulance. Paramedics arrived and found the victim was in medical distress and transported her immediately to the Mobridge Regional Hospital. Upon arriving at the Hospital, it was determined that the victim was in need of a higher level of medical care and she was airlifted to the Sanford Children’s Hospital in Sioux Falls, South Dakota.
Upon arrival in Sioux Falls, the medical staff was apprised of Kills In Water’s initial version of how the injury was sustained, namely that the victim had fallen out of a vehicle which led to her current injuries and medical condition. However, the victim’s treating physician stated that the injuries sustained were inconsistent with a simple fall from a vehicle. It was noted that the victim had bilateral hemorrhages of the retina and both retinas were also detached. The treating physician also advised this type of injury is almost 100% specific to “shaken baby” injuries. The force of the act had to be significant enough to cause the victim’s brain to shift, resulting in the brain tissue shearing and/or tearing, thus causing extensive bleeding. A “brain bolt” was placed in the victim’s skull to relieve the pressure in her head. Kills In Water ultimately admitted to violently shaking the victim against a wall, causing the injuries. To date the victim remains partially paralyzed on the left side of her body, which necessitates the use of a wheel chair, with severe visual and speech deficits. It is unknown if the victim will ever fully recover from the injuries she sustained.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Kills In Water was immediately turned over to the custody of the U.S. Marshals Service.
Little Eagle Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Little Eagle, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to a Spouse, Intimate Partner, or Dating Partner was sentenced on July 11, 2016, by U.S. District Judge Charles B. Kornmann.
Patrick Demarrias, age 31, was sentenced to 14 months in custody, followed by 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Demarrias was indicted by a federal grand jury on March 10, 2015. He pled guilty on April 14, 2016.
The conviction stemmed from an incident on February 4, 2015, when Demarrias came home intoxicated, following an evening of drinking with his ex-girlfriend. The victim became angry that Demarrias was out drinking with another woman, while the couple’s child was in need of diapers and formula. Demarrias and the victim began to argue, which escalated into Demarrias physically assaulting her, in the presence of the couple’s young child. As a result of the assault, the victim sustained multiple cuts, bruises, scrapes, and abrasions.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Demarrias was immediately turned over to the custody of the U.S. Marshals Service.
Liberian Ship Management Company, Corporate Vessel Owner, and Three Engineering Officers Indicted for Environmental Crimes and ConspiracyRead the Press Release
A federal grand jury in Charleston, South Carolina, returned an indictment today charging Aegean Shipping Management S.A. and Aegeansun Gamma Inc. with obstruction of an agency proceeding, conspiracy and failing to keep accurate pollution control records, the Justice Department announced. Three engineering officers were charged with related offenses.
The charges stem from the 2015 falsification of records and obstruction designed to cover up overboard discharges of oily mixtures and machinery space bilge water from the Liberian-flagged chemical tanker, T/V Green Sky. The vessel’s management company, Aegean Shipping Management of Liberia and the vessel’s owner, Aegeansun Gamma of the Republic of the Marshall Islands, are charged with failing to maintain an accurate oil record book as required by the Act to Prevent Pollution from Ships (APPS), a U.S. law which implements the International Convention for the Prevention of Pollution from Ships, commonly known as “MARPOL.” The companies were also charged with falsification of records, obstruction and conspiracy.
The individuals, Panagiotis Koutoukakis and Herbert Julian, both former Chief Engineers of the T/V Green Sky and Nikolaos Bounovas, the former Second Engineer onboard the vessel, were charged with aiding and abetting the failure to maintain an accurate oil record book, falsification of federal records and conspiracy. Julian is facing an additional obstruction charge.
The investigation into illegal activity onboard the vessel began in late August 2015 when the vessel arrived in the Port of North Charleston, South Carolina and members of the engine room staff told the U.S. Coast Guard that they had been ordered to bypass the ship’s oil water separator on multiple occasions. In a related case, on Feb. 18, the former captain of the T/V Green Sky, Genaro Anciano, pleaded guilty to one count of obstruction for knowingly making false and misleading oral and written statements in an effort to impede the Coast Guard’s investigation of the bypass allegations.
The defendants are scheduled to be arraigned in Charleston on July 26. An indictment is merely an accusation and defendants are presumed innocent unless and until proven guilty in a court of law.
The case was investigated by agents of the Coast Guard Investigative Service. The case is being prosecuted by Christopher Hale of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Matt Austin of the U.S. Attorney’s Office for the District of South Carolina.
Liberian Ship Management Company, Corporate Vessel Owner, and Three Engineering Officers Indicted for Environmental Crimes and ConspiracyRead the Press Release
Contact: Office of Public Affairs (202) 514-2007
Note: The indictment is attached as a pdf file.
WASHINGTON - A federal grand jury in Charleston, South Carolina, returned an indictment today charging Aegean Shipping Management S.A. and Aegeansun Gamma Inc. with obstruction of an agency proceeding, conspiracy and failing to keep accurate pollution control records, the Justice Department announced. Three engineering officers were charged with related offenses.
The charges stem from the 2015 falsification of records and obstruction designed to cover up overboard discharges of oily mixtures and machinery space bilge water from the Liberian-flagged chemical tanker, T/V Green Sky. The vessel’s management company, Aegean Shipping Management of Liberia and the vessel’s owner, Aegeansun Gamma of the Republic of the Marshall Islands, are charged with failing to maintain an accurate oil record book as required by the Act to Prevent Pollution from Ships (APPS), a U.S. law which implements the International Convention for the Prevention of Pollution from Ships, commonly known as “MARPOL.” The companies were also charged with falsification of records, obstruction and conspiracy.
The individuals, Panagiotis Koutoukakis and Herbert Julian, both former Chief Engineers of the T/V Green Sky and Nikolaos Bounovas, the former Second Engineer onboard the vessel, were charged with aiding and abetting the failure to maintain an accurate oil record book, falsification of federal records and conspiracy. Julian is facing an additional obstruction charge.
The investigation into illegal activity onboard the vessel began in late August 2015 when the vessel arrived in the Port of North Charleston, South Carolina and members of the engine room staff told the U.S. Coast Guard that they had been ordered to bypass the ship’s oil water separator on multiple occasions. In a related case, on Feb. 18, the former captain of the T/V Green Sky, Genaro Anciano, pleaded guilty to one count of obstruction for knowingly making false and misleading oral and written statements in an effort to impede the Coast Guard’s investigation of the bypass allegations.
The defendants are scheduled to be arraigned in Charleston on July 26. An indictment is merely an accusation and defendants are presumed innocent unless and until proven guilty in a court of law.
The case was investigated by agents of the Coast Guard Investigative Service. The case is being prosecuted by Christopher Hale of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Matt Austin of the U.S. Attorney’s Office for the District of South Carolina.
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Letcher Man Convicted of Unlawful Taking of a Bald Eagle and Unlawful Use of PesticideRead the Press Release
United States Attorney Randolph J. Seiler announced that Theodore Nelson, Jr., a/k/a Ted Nelson, age 69, of Letcher, South Dakota, was found guilty of Unlawful Taking of Bald Eagle and Unlawful Use of Pesticide as a result of a federal jury trial in Sioux Falls, South Dakota.
The charges carry a maximum penalty of 13 months in custody and/or a $26,000 fine, one year of supervised release, restitution, and a $30 special assessment to the Federal Crime Victims Fund.
Nelson was indicted by a federal grand jury on September 9, 2015.
Nelson is a landowner in Sanborn County. The convictions stemmed from incidents between approximately January 1, 2015, and May 12, 2015, when Nelson, without being permitted to do so, knowingly and with wanton disregard for the consequences of his actions, injected a poison, Carbofuran, also known as Furadan 4F, into the carcasses of cows in order to kill predators, including coyotes. Carbofuran is a restricted use pesticide that is extremely toxic to wildlife, including birds. Use of this pesticide for baiting purposes is strictly prohibited, and the container is labeled accordingly.
As a result of Nelson’s actions, area animals, including coyotes and an adult Bald eagle, died of Carbofuran poisoning. Laboratory results from the National Fish & Wildlife Forensic Laboratory in Ashland, Oregon, confirmed that the eagle died of Carbofuran poisoning, after eating coyote carcasses with poisoning in its system.
“The verdict in this case signifies the public’s interest in ensuring laws are enforced that protect our natural resources,” said Assistant U.S. Attorney Meghan Dilges. “This case is a stark reminder that the illegal use of pesticides that ultimately kills protected wildlife is a crime that we take very seriously in the U.S. Attorney’s office. The wildlife and environmental laws on the books are not just collecting dust. We are prosecuting offenders to the full extent of the law.”
Jeffrey Martinez, Special Agent in Charge of the Environment Protection Agency’s criminal enforcement program in South Dakota, issued the following statement on July 12, 2016: “The defendant’s actions caused the taking of a Bald eagle and several other species. Product labels are designed to ensure the safe use and application of pesticides. Using pesticides for purposes other than their registered use is illegal and puts people, animals and the environment at risk of exposure. Today’s action shows that individuals who misuse these products and kill protected wildlife will be prosecuted.”
This case was investigated by the U.S. Fish & Wildlife Service, the Environmental Protection Agency, and the South Dakota Department of Game, Fish and Parks. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Nelson is in custody with the U.S. Marshals Service. A sentencing date has not been set.
Lexington Man Sentenced to 40 Years for Child Exploitation OffensesRead the Press Release
LEXINGTON, Ky. – A Lexington man has been sentenced to 40 years in federal prison, for possessing and distributing child pornography.
On Thursday, Chief U.S. District Judge Karen Caldwell formally sentenced 64 year-old Kevin Labona for his offenses. Labona, who has a criminal history of illegal sexual contact with minors that dates back to 1986, received an enhanced sentence. Under Federal law, he must serve at least 85 percent of his sentence.
Labona was convicted in a bench trial, on March 2, 2016. At trial, the evidence established that, beginning in 2013, Labona distributed images of child pornography that were violent, sadistic, and masochistic in nature. The evidence further established that he distributed images, by showing them on his phone to four minors, as a way to entice minors into having sexual contact with him. Labona sexually exploited more than one of these minors in 2014.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky; Howard S. Marshall, Special Agent in Charge, FBI (Louisville Division); Angela L. Byers, Special Agent in Charge, FBI (Cincinnati Division); and Andrew J. Smith, Sheriff, Logan County, Ohio, jointly announced the sentence.
The investigation was conducted by the FBI and the Logan County, Ohio Sheriff’s Office. Assistant U.S. Attorneys David Marye and Neeraj Gupta prosecuted the case on behalf of the federal government.
Kentucky Man Charged with Robbing Shawneetown BankRead the Press Release
Marcus Howard Householder, 32, of Reed, Kentucky, has been charged in United States District Court in Benton with robbing the Grand Rivers Community Bank in Shawneetown, Illinois, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. A Federal Grand Jury returned an indictment earlier this week charging Householder with committing the June 14th robbery during which $6,349 was taken.
Householder appeared for arraignment on the charge this morning at the United States District Courthouse in Benton. He was ordered held without bond and remanded to the custody of the United States Marshal pending further proceedings. Householder is next scheduled to be in court on August 24th at 9:30 a.m. for a final pretrial conference.
Investigation into the robbery was conducted by the Carmi office of the Illinois State Police Zone 7 Investigations Unit with the assistance of the Gallatin County Sheriff’s Department, the Shawneetown Police Department, the Kentucky State Police, the Webster County (Kentucky) Sheriff’s Department, the Union County (Kentucky) Sheriff’s Department, and the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Note: An Indictment is simply a formal charge brought against a defendant. A defendant is presumed innocent of the charge until proven guilty beyond a reasonable doubt.
Jury Finds Rosebud Man Guilty of Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that Adam Bordeaux, age 32, of Rosebud, South Dakota, was found guilty of Domestic Assault by an Habitual Offender and Simple Assault following a two-day jury trial in Pierre, South Dakota. The verdict was returned on July 13, 2016.
The charges carry a maximum sentence of up to five years in prison, a $250,000 fine, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Bordeaux was indicted by a federal grand jury on December 8, 2015. The charges stem from an incident that occurred on November 17, 2015, wherein Bordeaux assaulted his girlfriend at their home in Rosebud. Bordeaux and the victim got into an argument in their bedroom and Bordeaux pushed the victim onto the bed. He then got on top of her, pulled her hair, pushed her face into the blanket, and tried to bite her on the back of her head. The victim was eventually able to push Bordeaux off of her and she fled the house. She called the police from a nearby convenience store.
Bordeaux was subsequently questioned by a Rosebud Sioux Tribe Law Enforcement Officer and he claimed the victim attacked him and bit him on the forearm while he was defending himself. The bite mark he showed the officer was inconsistent with Bordeaux’s description of the incident, however, and Bordeaux was arrested.
The crime of Domestic Assault by an Habitual Offender requires proof that the Defendant had at least two prior convictions for domestic assault. At the time of this incident, Bordeaux had three prior convictions in Rosebud Sioux Tribal Court for Domestic Abuse. He also had a prior conviction in federal court for Domestic Assault by an Habitual Offender, and was on federal supervised release when he committed the assault on November 17, 2015.
Bordeaux was acquitted of other assault charges, including charges that stemmed from an incident that occurred in January 2015 involving the same victim.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for September 26, 2016.
Bordeaux was remanded to the custody of the U.S. Marshals Service pending sentencing.
Jury Convicts Portsmouth Man of Child Pornography CrimesRead the Press Release
NORFOLK, Va. – Ronald Miltier, 54, of Portsmouth, was convicted late yesterday by a federal jury on charges related to child pornography.
According to court records and evidence presented at trial, Miltier was discovered by an undercover FBI agent to have been downloading and possessing files containing child pornography through a peer-to-peer software program. Miltier routinely deleted such files, so there were only 11 movie files found during the agent’s search of Miltier’s laptop computer and hard drive. Forensic analysis revealed, however, that Miltier routinely searched for child pornography and downloaded hundreds, if not thousands, of files with names associated with child pornography.
Miltier faces a maximum penalty of 20 years in prison on each count of conviction when sentenced on October 18. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the verdict was accepted by U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Joseph L. Kosky prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-151.
Jamaican Native Sentenced for Attack on Federal OfficerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Seymour Ellis, 43, most recently of Queens, N.Y., who was convicted after plea of Assault of a Federal Officer, was sentenced to imprisonment of 68 months by United States District Judge Frank P. Geraci, Jr.
Special Assistant United States Attorney Brian J. Counihan, who handled the case, statedthat in April of 2015, the defendant was in immigration custody at the BuffaloFederal Detention Facility in Batavia, N.Y. The defendant was awaiting removal from the United States to Jamaica after having been stripped of his lawful permanent resident status and ordered removed by an immigration judge. The immigration judge ordered the defendant removed from the United States because of the defendant’s New York State narcotics trafficking, robbery, and theft convictions. While in the detention facility, the defendant attacked and assaulted a detention officer using a radio and his fists and causing bodily injury.
The sentencing is the result of an investigation by Officers of the Enforcement and Removal Operations of U.S. Immigration and Customs Enforcement under the direction of Field Office Director Michael Phillips.Jacksonville Man Pleads Guilty to Enticement of A Minor to Engage in Sexual ActivityRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Gernain Jackson (33, Duval County) has pleaded guilty to enticement of a minor to engage in sexual activity. He faces a mandatory minimum sentence of 10 years, up to life, in federal prison. The sentencing hearing is scheduled for September 28, 2016, before United States District Judge Paul G. Byron.
According to court records, from August 2015 to September 2015, Jackson engaged a 13-year-old boy from Orlando in chats over Facebook, KIK messenger, Skype, and the telephone, through which Jackson enticed the minor to produce child pornography. Through the online contact, Jackson enticed the minor to send him sexually explicit images. On or about September 6th and 13th, 2015, Jackson met the minor in person while attending church functions in Jacksonville. During that time, Jackson met the minor in the bathroom several times throughout the day and fondled him.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jacksonville Man Arrested and Charged with Receiving and Possessing Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that William Marion Patterson, III (47, Jacksonville) has been charged with receiving child pornography over the Internet and possessing it on his computer media. If convicted of any one of the three receipt counts, he faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison, and a life term of supervised release. If convicted of either of the two possession charges, he faces up to 10 years’ imprisonment, and a potential life term of supervision. Patterson was arrested on July 15, 2016. His arraignment and detention hearing is scheduled for July 19, 2016, at 2:30 p.m.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Naval Criminal Investigative Service, the Jacksonville Sheriff’s Office, the Columbia County Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Independent Producer Charged with Stealing Money Generated by Feature Film that Should Have Gone to Partner CompanyRead the Press Release
LOS ANGELES – An independent film producer has been charged with interstate transportation of stolen property related to the theft of nearly $1.5 million that should have gone to his partner in a film production deal.
Julio Caro, 56, of Calabasas, was charged on Tuesday with moving money to New Jersey that had been stolen from an investment company called Yucaipa Corporate Initiatives Fund I, LP.
When he was charged, prosecutors also filed a plea agreement in which Caro agreed to plead guilty to the felony offense and admitted that he stole a total of $1,487,529 from Yucaipa over five years.
“This defendant exploited his position of trust by stealing money from a business he had been partners with for years,” said United States Attorney Eileen M. Decker. “Mr. Caro then engaged in another crime by moving the pilfered money across the country.”
Caro has agreed to surrender to federal authorities and make his first appearance in United States District Court on July 27.
Caro, through his company, Broken Rose Productions, Inc. entered into a limited liability agreement with Yucaipa in early 2005. The resulting LLC, which was called R-Caro Productions, LLC produced two films, including “Homie Spumoni,” which was distributed by Warner Brothers Entertainment. When Warner Brothers sent distribution proceeds to R-Caro, the money should have gone to Yucaipa, which had provided much of the financing for the film. Instead, “Caro stole these funds and used these funds to pay for his personal expenses, including, but not limited to, his mortgage and car lease payments,” according to the plea agreement.
“Mr. Caro violated both the law and his partner’s trust when he embezzled royalty payments and transferred the stolen funds to the East Coast,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This case should serve as a warning to those who evade detection by crossing state lines.”
The charge of interstate transportation of stolen property carries a statutory maximum penalty of 10 years in federal prison.
The case against Caro was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Poonam G. Kumar of the Major Frauds Section.
Independence Man Charged with Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was charged in federal court today with illegally possessing a firearm after a witness called the police to report him burglarizing a neighbor’s home using a stolen car.
Randy R. Smith, 33, of Independence, was charged with being a felon in possession of a firearm in a federal criminal complaint filed in the U.S. District Court in Kansas City, Mo.
According to an affidavit filed in support of today’s criminal complaint, an Independence resident called police at approximately 12:16 p.m. Thursday, July 14, 2016, to report a burglary in progress in the 1100 block of South Claremont. The witness reported that two men arrived at a neighbor’s residence in a red Honda Fit, which had been previously reported as stolen by a subject armed with a firearm. The witness reported that the two men moved from the vehicle to the read of the neighbor’s residence, then returned to the vehicle, carrying items from the residence to the vehicle.
The suspects left before officers arrived at the residence, but within a few minutes, an officer located the Honda Fit in the parking lot of Sunfresh Grocery, 18001 E. US 24 Hwy., Independence. Smith, who was driving the vehicle, was arrested. According to the affidavit, Smith was in possession of a loaded Omega .32-caliber revolver, which he was carrying in a shoulder holster. The trigger guard of the firearm was missing and appeared to have been cut off or removed by unknown means. The firearm had been painted purple and yellow, the affidavit says, in such a manner as if to disguise the weapon as a toy. Officers also found a variety of ammunition in the vehicle.
A passenger in the vehicle was also arrested but was not charged in federal court.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Smith has prior felony convictions for burglary, receiving stolen property, forgery and being a felon in possession of a firearm.
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 Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Housekeeper Pleads Guilty to Stealing $550,000 from Elderly EmployerRead the Press Release
NEWPORT NEWS, Va. – Dana Morris, 42, of Williamsburg, pleaded guilty yesterday to charges of engaging in a monetary transaction involving proceeds of unlawful activity and tax evasion.
In a statement of facts filed with the plea agreement, Morris acknowledged stealing $558,595.26 from her former employer, an elderly resident of Williamsburg. Through her work as a housekeeper and a personal assistant, Morris gained access to the victim’s home and personal effects. Between 2012 and 2014, Morris altered and completely forged 117 checks drawn on her employer’s personal checking account. Morris deposited all of these checks into her personal checking account and spent all of the stolen money on, among other things, over $445,000 in retail and entertainment items. In March 2014, Morris and another individual used $27,000 of the stolen money to purchase a new car. Morris falsely stated her income on her 2012 tax return, failing to report the majority of the stolen money. Morris evaded the assessment of personal income tax in 2013 and 2014 by failing to file tax returns and filing extensions in which she falsely stated she would owe no tax for each year.
Morris was indicted by a federal grand jury on January 11, and faces a maximum penalty of 10 years in prison when sentenced on November 10. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The parties agreed, subject to the approval of the District Court Judge, that her sentence will not exceed 37 months.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after the plea was accepted by U.S. Magistrate Judge Lawrence R. Leonard. Assistant U.S. Attorneys Howard J. Zlotnick and Kaitlin C. Gratton are prosecuting the case. This case was adopted for prosecution through the United States Postal Inspection Service’s Financial Crimes Task Force.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16cr4.
Heroin Dealer Convicted by Jury of Sex Trafficking and Drug-Related OffensesRead the Press Release
Defendant Sold Heroin and Used Violence, Threats and Coercion to Compel Three Young Heroin-Addicted Women to Prostitute for His Profit in Wisconsin and Minnesota
Monta Groce, 30, of Sparta, Wisconsin, was convicted by a federal jury of three counts of sex trafficking by force, threats of force or coercion; one count of conspiracy to engage in interstate transportation for prostitution; one count of interstate transportation for prostitution; one count of maintaining a property for drug trafficking; one count of using a firearm in furtherance of drug trafficking and one count of witness retaliation. The verdict was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; U.S. Attorney John W. Vaudreuil of the Western District of Wisconsin and FBI Special Agent in Charge Robert J. Shields of the FBI’s Milwaukee Division.
After deliberating for 10 hours, the jury found the defendant guilty on all counts, with the exception of one count of attempted sex trafficking. Sentencing is scheduled for Oct. 19, 2016. The defendant faces a minimum sentence of 20 years in prison and a maximum sentence of life in prison.
“Groce supported the heroin epidemic impacting our country and exploited vulnerable young women by forcing them to engage in prostitution,” said Principal Deputy Assistant Attorney General Gupta. “I commend the trial team, investigators and victim advocates for their incredible work in this case. The Civil Rights Division will continue our vigorous efforts to work with our federal and state partners to hold human traffickers accountable and vindicate the rights of victims.”
“These cases are about horrible violence against women – Groce violently forced vulnerable victims into commercial sex,” said U.S. Attorney Vaudreuil. “The Department of Justice will not tolerate the exploitation of sex-trafficked women and children and we will continue to bring traffickers to justice on their behalf. These crimes, which took place in a small city, demonstrate that sex trafficking is not just a big city issue; it is happening in rural America too.”
“Human traffickers like Monta Groce, who prey on vulnerable women and children, will be aggressively investigated by the FBI from major cities to rural communities such as Sparta, Wisconsin, so the victims may be rescued and the perpetrators brought to justice,” said FBI Special Agent in Charge Shields.
Evidence presented during the four-day trial, including the testimony of the three victims identified in the indictment as Jane Does 1 through 3, revealed that the defendant sold heroin in Sparta between December 2012 and April 2013. During that time, he enticed the victims to begin prostituting for his profit by providing them with heroin and pretending to be in love with them. As their dependency on him increased, he turned to violence and threatened to cut off their heroin supply if they disobeyed him, withheld money earned from prostitution or otherwise refused to prostitute. Groce further kept some of the victims in perpetual debt by fronting them heroin and charging fines as punishment. He advertised the victims on Backpage.com and paid other addicts to drive them from Wisconsin to Minnesota to prostitute. On one occasion, he gave heroin to a male heroin-addict to sell and then accused the man of stealing some of the heroin when he returned after the sale fell through. Groce beat the man in front of two of the victims, pointed a gun at him and threatened to kill him unless he paid Groce for the purportedly missing drugs.
According to her testimony, Jane Doe 1 began using heroin when she was 15 and met the defendant when she was 19, around January 2013. She testified that Groce was initially kind to her, called her beautiful and offered her a place to stay when she had nowhere else to go. He started selling her heroin, and shortly after, he manipulated her emotions to convince her to start prostituting for him. Groce required her to prostitute before giving her heroin, and if she disobeyed him, he punished her by cutting her off, causing her to suffer intense and painful withdrawal symptoms. On one occasion, he burned her face with a cigarette because she withheld money from him. She escaped with the help of Jane Doe 2. Later on in April 2014, the defendant beat, punched and kicked her while calling her a snake and a snitch because she had previously cooperated with law enforcement. After the beating, she was covered in blood and bruises.
Jane Doe 2 testified that she met the defendant when she was 21, around December 2012, after her mother died from a drug overdose. Her mother’s death caused her to start using heroin and the defendant became her dealer. She helped Jane Doe 1 escape from the defendant and then was forced herself to prostitute because, as the defendant put it, she caused him to lose money. On one occasion, when Jane Doe 2 refused to answer a prostitution call, Groce told her that she had to do the call to get her heroin. When she told him that he was not giving her a choice, he pointed to his gun and responded that she always has a choice. On another occasion, the defendant beat Jane Doe 2, throwing her into a bathtub because she had sex with a prostitution customer in his bed, rather than the designated bed for prostitution, which was occupied by another victim and customer.
Jane Doe 3 testified that on one occasion she misplaced a debit card containing money belonging to Groce. In response, Groce ordered her to do a prostitution call to pay him back. Jane Doe 3 had to work that evening at her regular job and told Groce that she did not want to do the call. Groce insisted and told her that if she refused then he would cut off her entire supply of heroin. Jane Doe 3 testified concerning the debilitating symptoms of heroin withdrawal and stated that she did the call for Groce because she feared suffering those symptoms.
The case was investigated by FBI’s Milwaukee Division with assistance from the Sparta Police Department and Monroe County, Wisconsin, Joint Investigative Task Force. The case is being prosecuted by Assistant U.S. Attorney Julie S. Pfluger of the Western District of Wisconsin and Trial Attorney Shan Patel of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Guilty Plea Entered in Drug ConspiracyRead the Press Release
Timothy Edwards, 36, of New Memphis, Illinois, pled guilty on Monday, July 11, 2016, to a three-count Second Superseding Indictment charging him with Conspiracy to Distribute, and Possess with Intent to Distribute, Cocaine and Marihuana, Making a False Statement to a Federal Law Enforcement Officer, and Maintaining Drug-Involved Premises, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today. Edwards’ sentencing hearing has been set for October 21, 2016. Edwards faces penalties for Count 1 of no less than 5 years, no more than 40 years in federal prison, a $5,000,000 fine, or both, 4 years supervised release and a $100 special assessment; for Count 2 no more than 5 years in prison and/or a $250,000 fine, 3 years supervised release and a $100 special assessment; and Count 3 no more than 20 years in prison, a fine of no more than $500,000, or both, 3 years supervised release and a $100 special assessment.
The case was investigated by the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI) and the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Deirdre A. Durborow.
Former West Haven Housing Authority Director Sentenced to Prison for Receiving $1.5 Million in BribesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL SIWEK, 56, of North Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 48 months of imprisonment, followed by three years of supervised release, for receiving approximately $1.5 million in bribes while serving as the executive director of the West Haven Housing Authority, and for failing to pay taxes on the illegal income.
According to court documents and statements made in court, SIWEK was the executive director of the West Haven Housing Authority (“WHHA”), an agency that received federal funding. As parties of his duties, SIWEK had substantial discretion over awarding WHHA business and contracts. From approximately February 2007 through February 2012, SIWEK received approximately $1.5 million in payments from individuals in exchange for the awarding of business and contracts with the WHHA and entities that the WHHA controlled. SIWEK received these bribes through wire transfers and check payments to himself individually, and to Four Star Development Company LLC, a limited liability corporation that he controlled. SIWEK also received payments that were characterized as “loans,” but which were not subject to any terms or conditions typically associated with commercial loans.
In addition, SIWEK did not report these payments to the IRS, and filed false tax returns that underreported his income and tax liability.
Judge Shea ordered SIWEK to pay restitution in the amount of $1,503,096.91, and back taxes, penalties and interest totaling more than $363,000.
On September 4, 2014, SIWEK pleaded guilty to one count of conspiracy to commit bribery in connection with a program receiving federal funds, one count of bribery and one count of tax evasion.
This matter was investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Sarah Karwan.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Former St. Bernard Parish Deputy Pleads Guilty in Darren Sharper MatterRead the Press Release
U.S. Attorney Kenneth A. Polite and Orleans Parish District Attorney Leon A. Cannizzaro, Jr. announced that BRANDON LICCIARDI, age 31, of Mereaux, Louisiana, pleaded guilty today to conspiracy to distribute Schedule IV controlled substances with the intent to commit crimes of violence, including rape, before the Honorable Jane Triche Milazzo, United States District Court Judge, Eastern District of Louisiana.
Pursuant to a plea agreement, the parties stipulated that LICCIARDI would be sentenced to a term of imprisonment of 17 years, to be served concurrently and co-terminously with any sentence he may receive in the Criminal District Court for the Parish of Orleans. The statutory maximum punishment for the offense is twenty years imprisonment and a fine of $250,000. LICCIARDI’s plea today was part of a global resolution of the charges against him in federal court and the Criminal District Court for the Parish of Orleans. Sentencing is set for October 13, 2016.
LICCIARDI, a former St. Bernard Parish deputy sheriff admitted that he, along with former New Orleans Saint DARREB SHARPER and ERIK NUNEZ, a former waiter at Morton’s Steak House, distributed controlled substances to unsuspecting women and then had sexual relations with them while they were incapacitated.
Most recently, on July 11, 2016, co-defendant ERIC J. NUNEZ pleaded guilty to conspiracy to distribute controlled substances to victims without their knowledge, and with the intent to commit a crime of violent, to wit: sexual battery. Sentencing for NUNEZ is scheduled for October 13, 2016 at 9:30 am.
Previously, on March 22, 2016, co-defendant DARREN SHARPER pleaded guilty to Conspiracy to Distribute a Schedule IV Controlled Substance with the intent to commit rape and two counts of Distribution of a Schedule IV Controlled Substance with intent to commit rape; Sentencing for SHARPER is set for August 18, 2016 at 9:30 am.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter and thanked District Attorney Cannizzaro and the Orleans Parish District Attorney’s Office for their invaluable cooperation. Assistant United States Attorneys Michael E. McMahon, Theodore R. Carter, III, and Brandon Long are in charge of the prosecution.
Former Broker and Bookkeeper in Agape Ponzi Scheme Sentenced to 78 Months’ ImprisonmentRead the Press Release
Earlier today, at the United States District Court in Central Islip, New York, the Hon. Denis R. Hurley sentenced Diane Kaylor, a former broker and bookkeeper of Agape World, Inc. (Agape), to 78 months’ imprisonment and ordered that she pay approximately $179 million in restitution following her convictions on April 21, 2015, after a four-week jury trial, for securities fraud, conspiracy, mail fraud, and wire fraud. These convictions arose out of the Kaylor’s participation in a Ponzi scheme, in which she took $3.6 million in commission payouts for herself, which she spent on home improvements, luxury automobiles, exotic vacations, and other items.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service (USPIS).
“For more than three years, Diane Kaylor and her co-defendants sold lies to thousands of unsuspecting investors,” stated United States Attorney Capers. “Victim investors have been saddled with huge debts, some lost their life’s savings, their retirements have been delayed, and their children have been saddled with unforeseen student loan payments. Kaylor has now been held to account for her role in these crimes.” Mr. Capers expressed his grateful appreciation to the FBI and USPIS, the agencies that led the government’s investigation, and thanked the United States Securities and Exchange Commission for its assistance in the case.
Nicholas Cosmo founded Agape in August 2000, following 21 months in a federal prison for defrauding investors. Between October 2005 and January 2009, Kaylor played a critical role in the scheme, soliciting and obtaining tens of millions of dollars from investors. To induce investments and discourage withdrawals, she misled investors by assuring them that their money would only be used to fund specific, short-term secured bridge loans to commercial borrowers, or to make short-term loans to small businesses, promising to pay investors unusually high rates of returns and representing that investing in Agape carried little or no risk of loss. As a result of these inducements, Kaylor actually raised significantly more money than was needed for the loans, and for her efforts she made approximately $3.6 million.
Kaylor and her co-conspirators paid returns to Agape investors, not from any profits earned on investments, but rather from existing investors’ deposits or money paid by new investors. They then took more than $370 million – approximately $55 million of which came from investors that Kaylor or her sub-brokers convinced to invest in the Ponzi scheme – from approximately 5,000 investors. Of that $370 million, only $22 million actually went to fund bridge loans. Approximately $113 million of investors’ money was used to trade high risk futures and commodities, over $80 million of which was lost in these markets.
As the fraudulent scheme began to unravel, Kaylor continued to deceive investors about Agape’s financial health. On November 3, 2008, Kaylor learned that all of Agape’s 2007 bridge loans were in default or on extension, but did not disclose this information to existing or new investors. Instead, she continued to solicit money from investors. Ultimately, approximately 3,800 investors sustained actual losses totaling more than $150 million.
On October 14, 2011, Cosmo, following his guilty plea, was sentenced to a term of imprisonment of 25 years for his role in the scheme; on February 24, 2016, following his convictions after the same four-week jury trial as Kaylor, Jason Keryc, a broker at Agape, was sentenced to a term of imprisonment of nine years for his role in the scheme; and on April 22, 2016, following his guilty plea, Anthony Ciccone, who was also a broker at Agape, was sentenced to a term of imprisonment of seven years for his role in the scheme. In addition to the convictions of Cosmo, Kaylor, Keryc, and Ciccone, the government’s investigation led to the conviction of five other defendants in the scheme, who are awaiting sentencing before Judge Hurley.
The government’s case is being handled by the Office’s Long Island Criminal and Civil Sections. Assistant United States Attorneys Christopher C. Caffarone, Bradley T. King, Grace M. Cucchissi, and Vincent Lipari are in charge of the prosecution.
The Defendant:
DIANE KAYLOR
Age: 40
Bethpage, New YorkE.D.N.Y. Docket No. 12-CR-357 (S-4)(DRH)
Five Arrested on Federal Charges Related to Two Large New Haven-Area Fencing OperationsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that five men were arrested today on federal charges related to two separate, large-scale fencing operations in the New Haven area.
On June 23, 2016, a grand jury sitting in New Haven returned an indictment charging GEORGE J. CONNELLY, JR., 45, of New Haven, PAUL WILLIAM MUZYKA, 46, of North Haven, and WILLIAM REIDELL, 40, of Branford, with one count of conspiracy and multiple counts of interstate transportation of stolen property. On July 7, 2016, a grand jury sitting in Hartford returned an indictment charging ANDREW SACCO, 43, of East Haven and formerly of Durham, and MATTHEW HARWOOD, 42, of Stratford and formerly of Durham, with one count of conspiracy and multiple counts of interstate transportation of stolen property.
Both indictments were unsealed today, after CONNELLY, MUZYKA, REIDELL, SACCO, and HARWOOD were arrested. They each appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford and all were released on $100,000 bonds.
The first indictment alleges that CONNELLY and MUZYKA operated a licensed secondhand store, Ace Amusements, located at 42 Kimberly Avenue in New Haven. CONNELLY and MUZYKA are alleged to have knowingly purchased stolen property from “boosters,” who typically were shoplifters with opioid addictions. The boosters stole the goods from retail stores such as Walmart, Home Depot and Kohl’s. CONNELLY and MUZYKA then resold the stolen goods at Ace Amusements and online at websites such as eBay and Amazon. CONNELLY and MUZYKA also sold property to resellers, including REIDELL, who then resold the property online using online websites.
The second indictment alleges that SACCO and HARWOOD knowingly purchased stolen property from boosters and then resold the property at online websites, including, eBay and Amazon, usually in the names of family members and associates. SACCO and HARWOOD are alleged to have rented cars for boosters for trips to steal items for them. SACCO and HARWOOD met with boosters to purchase the stolen property at various locations, including at MVP Auto, an auto body shop located at 23 Bernhard Road in North Haven.
The charge of interstate transport of stolen property carries a maximum term of imprisonment of 10 years, and the charge of conspiracy carries a maximum term of imprisonment of five years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Federal Bureau of Investigation, with assistance from the Connecticut State Police, United States Marshals Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation Division, Connecticut Department of Correction, Connecticut Chief State’s Attorney’s Office, and the New Haven, North Haven, Milford, West Haven, Wallingford, Hamden and Orange Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys David T. Huang and John T. Pierpont, Jr.
Final Members of Portsmouth-Based “Corna Sto Boys” Sentenced for Crack Cocaine ConspiracyRead the Press Release
NORFOLK, Va. – Charles Battle, aka C.J., 38, of Portsmouth, was sentenced to 240 months in prison followed by 10 years of supervised released for his role in a conspiracy to distribute crack cocaine. Battle was one of five members or affiliates of the “Corna Sto Boys,” a Portsmouth-based group of crack dealers sentenced to prison this year here in Norfolk. On Monday, Lacharles Hodges, aka Boogie, 29, also of Portsmouth, was sentenced to 151 months in prison for the same crime.
According to court documents, both men, along with other members of the “Corna Sto Boys,” sold crack cocaine across the street from the schoolyard of a Portsmouth elementary school. This was Battle’s third conviction for selling drugs near school property in Portsmouth.
Three other members or affiliates of the same group, Norman Stephenson, aka Bree; Jawanza Johnson, aka Wanza; and Samuel Gray, aka Pig, were sentenced earlier this year:
Name
Age, Hometown
Charges
Status
Charles Battle
38, Portsmouth
Conspiracy to Distribute and Possess with Intent to Distribute 280 Grams or More of Crack Cocaine
Pleaded guilty March 15. Sentenced to 240 months on July 15.
Lacharles Hodges
29, Portsmouth
Conspiracy to Distribute and Possess with Intent to Distribute 280 Grams or More of Crack Cocaine and 5 Kilograms or More of Cocaine
Pleaded guilty March 17. Sentenced to 151 months on July 11.
Norman Stephenson
35, Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Manufacture and Distribute 280 Grams or More of Crack Cocaine
Pleaded guilty February 3. Sentenced to 264 months on June 16.
Jawanza Johnson
36, Portsmouth
Conspiracy to Distribute and Possess with Intent to Distribute 28 Grams or More of Crack Cocaine
Pleaded guilty March 22. Sentenced to 120 months on June 23.
Samuel Gray
36, Portsmouth
Conspiracy to Distribute and Possess with Intent to Distribute 280 Grams or More of Crack Cocaine
Pleaded guilty March 17. Sentenced to 120 months on June 16.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s (DEA) Washington Office; and Tonya D. Chapman, Chief of the Portsmouth Police Department, made the announcement after Battle was sentenced by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorneys Andrew Bosse and Joseph E. DePadilla, and Special Assistant U.S. Attorney John F. Butler, prosecuted the cases.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 2:16cr3 (Battle), 2:16cr18 (Hodges), 2:16cr16 (Stephenson), 2:16cr5 (Johnson), and 2:16cr19 (Gray).
Federal Jury in New Mexico Finds Two Men Guilty of Cocaine and Heroin Trafficking ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., returned a verdict today finding Jose Remberto Guzman-Dominguez, 33, and Miguel Angel Rodriguez-Flores, 47, guilty of narcotics trafficking charges after a five-day trial. U.S. Attorney Damon P. Martinez, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, New Mexico State Police Chief Pete N. Kassetas, and Deputy Chief Jimmy Glascock of the New Mexico Motor Transportation Police announced the verdict.
Guzman-Dominguez, a legal permanent resident from El Salvador who was residing in Las Vegas, Nev., and Rodriguez-Flores, of Hawthorne, Calif., were arrested on Nov. 14, 2015, on a criminal complaint after officers of the New Mexico Motor Transportation Police found approximately 117.15 pounds (53.14 kilograms) of narcotics in their commercial tractor-trailer during a routine inspection at the port of entry on Interstate 10 near Lordsburg, N.M. The two men subsequently were indicted on Feb. 17, 2016, on charges that they conspired to distribute cocaine and heroin and possessed cocaine and heroin with intent to distribute. According to the indictment, defendants committed the three offenses in Hidalgo County, N.M., on the evening of Nov. 13, 2014 and the early morning of Nov. 14, 2015.
Trial on the three-count indictment began July 11, 2016, and concluded this afternoon when the jury returned a verdict of guilty on all counts of the indictment. The evidence at trial established that late on Nov. 13, 2015, and into the early hours of Nov. 14, 2015, the defendants were traveling in a commercial tractor-trailer from Phoenix, Ariz., to Lordsburg. When they entered the port of entry on Interstate 10 in Hidalgo County, the New Mexico Motor Transportation Police stopped their commercial tractor-trailer to conduct a safety inspection. After identifying several safety violations, the inspector continued with a cargo inspection and found that the trailer was fully loaded with large containers of industrial cleaning solution. While inspecting the cargo, the inspector found four cardboard boxes that were different from the industrial cleaning solution containers. One of the boxes was open and contained several cellophane wrapped bundles. Because of Guzman-Dominguez’s nervous behavior and his interest in the contents of the four boxes, the inspector requested assistance from the New Mexico State Police. The officers opened one of the cellophane bundles and found that it contained white powder that tested positive for cocaine. The four boxes contained 51 bundles with a gross weight of 53.14 kilograms.
The jury learned that laboratory tests later performed on the contents of the 51 bundles determined that 46 of the packages contained an aggregate of 105.6 pounds (47.9 kilograms) of cocaine and five packages contained an aggregate of 11.55 pounds (5.24 kilograms) of heroin.
The jury returned its guilty verdict after deliberating approximately four-and-a-half hours.
At sentencing, Guzman-Dominguez and Rodriguez-Flores each face a statutory penalty of a mandatory minimum of ten years and a maximum of life in federal prison. Guzman-Dominguez will be deported after completing his prison sentence. Both remain in custody pending sentencing hearings, which have yet to be scheduled.
The Border Enforcement Security Taskforce of the Las Cruces office of Homeland Security Investigations, New Mexico State Police, and New Mexico Motor Transportation Police investigated this case. Assistant U.S. Attorneys Brock Taylor and Richard Williams of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national 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, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools 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 HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
District Court Enters Permanent Injunction Against Minnesota Food Manufacturer and Company’s Managers to Prevent Distribution of Adulterated Food ProductsRead the Press Release
The U.S. District Court for the District of Minnesota entered a consent decree of permanent injunction against Kwong Tung Foods Inc. (Kwong Tung Foods) doing business as Canton Foods; the firm’s president and owner, Vieta C. Wang; and vice president, Juney H. Wang, to prevent the distribution of adulterated noodles and sprouts, the Department of Justice announced today.
The Department filed a complaint on July 14, in the U.S. District Court for Minnesota at the request of the U.S. Food and Drug Administration (FDA). The complaint alleged that Kwong Tung Foods violated the federal Food, Drug and Cosmetic Act by causing noodles and sprouts to be adulterated in that they have been prepared, packed and/or held under insanitary conditions whereby the food may have become contaminated with filth or have been rendered injurious to health. According to the complaint, the insanitary conditions included failure to exclude pests and rodents from the facility, failure to maintain equipment and failure to ensure adequate employee sanitation.
“Kwong Tung Foods was repeatedly warned about the insanitary conditions at its Minneapolis food facility,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work aggressively to protect consumers from adulterated food and enforce our nation’s food safety laws.”
In conjunction with the filing of the complaint, the defendants agreed to be bound by a permanent injunction. As part of the settlement, the defendants represented that they have ceased receiving, preparing, processing, packing, holding, or distributing any type of food at or from any location. Under the permanent injunction, if the defendants seek to resume such activity, they must take specific steps to improve the firm’s manufacturing practices, and then receive written approval from FDA.
According to the complaint, in October 2015, FDA inspected Kwong Tung Foods’ facility, located at 1840 E. 38th Street in Minneapolis, and observed numerous insanitary practices, including the defendants’ failure to take necessary precautions to protect against contamination and maintain buildings in good repair. Specifically, according to the complaint, FDA observed evidence of live and dead pests and rodents in production rooms, a black mold-like substance and debris on production equipment, inadequate employee sanitation practices, and potential cross-contamination with major allergens. In addition, FDA observed condensate dripping onto finished bean sprouts, according to the complaint.
FDA inspected Kwong Tung Foods’ facility twice in 2014. As alleged in the complaint, FDA also observed failures to exclude pests from the facility and to adequately maintain equipment and employee sanitation practices.
Under federal law, food processors are required to comply with current good manufacturing practices provided by FDA regulation. The complaint alleged that the defendants violated the law by causing food to become adulterated while it was held for sale after shipment of one or more of its components in interstate commerce.
The government is represented by Trial Attorney Alistair Reader of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Bahram Samie of the U.S. Attorney’s Office for the District of Minnesota, with the assistance of Associate Chief Counsel for Enforcement Jennifer Kang of the Food and Drug Division, Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Minnesota, visit its website at http://www.justice.gov/usao-mn.
Department of Justice to Conduct After-Action Review of Police Response to Orlando Nightclub Mass ShootingRead the Press Release
The Department of Justice, Office of Community Oriented Policing Services (COPS Office) today announced it will conduct a comprehensive after-action assessment of the Orlando Police Department’s (OPD) response to the mass shooting that took place on June 12 at the Pulse nightclub in Orlando, Florida.
“I commend Orlando Police Chief John Mina for his leadership in asking for this assessment,” said COPS Office Director Ronald Davis. “The lessons learned from this independent, objective and critical review of such a high-profile incident will benefit not only the Orlando Police Department and its community; it will also serve to provide all law enforcement critical guidance and recommendations for responding to future such incidents.”
“Chief Mina has proven to be a tremendous leader of the Orlando Police Department,” said U.S. Attorney A. Lee Bentley, III of the Middle District of Florida. “His decision to seek an independent review of the law enforcement response to the Pulse nightclub shootings is another example of his effective leadership. The results of this review should help not only the Orlando Police Department, but also other law enforcement agencies forced to deal with terrorist attacks.”
Through its Critical Response Technical Assistance program, the COPS Office will bring in a technical assistance provider and use subject matter experts to assess OPD’s preparation and response to the mass shooting, strategies and tactics used during the incident, and how the department is managing the aftermath of the mass casualty event.
The Critical Response Technical Assistance program was designed to provide targeted technical assistance to law enforcement agencies dealing with high-profile events, major incidents or sensitive issues of varying need. The program has been used in a number of other cities, including Minneapolis, Minnesota; San Bernardino, California; Ferguson, Missouri; Tampa, Florida; and Pasco, Washington. Previous after-action assessments have provided valuable guidance on lessons learned and serve as an important tool to help the law enforcement profession advance and grow.
The COPS Office, headed by Director Ronald Davis, is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of more than 127,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance. For additional information about COPS, please visit www.cops.usdoj.gov.
Defendant Receives Lengthy Sentence for Cell Phone Insurance FraudRead the Press Release
ATLANTA - Laquitta S. Brackins has been sentenced to federal prison for conspiracy to commit mail and wire fraud by defrauding a cell phone insurance provider. Brackins, along with a co-conspirator, filed thousands of false insurance claims on cell phones that did not belong to them and received over $1.6 million worth of cell phones from those claims.
“Cell phone insurance fraud drives up costs for all cell phone consumers,” said U.S. Attorney John Horn. “These defendants submitted thousands of fraudulent claims in the hope they could profit before anyone noticed.”
According to U.S. Attorney Horn, the charges and other information presented in court: Brackins and co-conspirator Nicholas L. Johnson defrauded Asurion Protection Services, LLC, and its cellular service provider clients, by submitting fraudulent cell phone insurance claims. Together, they obtained over $1.6 million worth of cell phones.
As part of the conspiracy, Brackins recruited cell phone subscribers from the Atlanta area and also traveled out of state to find individuals willing to allow her to use their cell phone contracts in her scheme. The defendants also used false identification documents and forged cell phone bills to file fraudulent claims with Asurion. Under Asurion’s insurance program, subscribers receive replacement phones to replace lost or stolen phones covered by the insurance. Brackins was linked with over 3,600 fraudulent submissions and she received over 2,900 phones as a result. After the defendants received the fraudulent phones, they and others involved in the scheme sold the phones to electronic wholesalers in the Atlanta area. Once she was indicted, Brackins fled and lived under false names at various hotels. She continued the scheme, having fraudulently obtained phones sent to her at the hotels.
Laquitta S. Brackins, 35, of Atlanta, Georgia, was sentenced by U.S. District Judge Steve C. Jones to seven years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,617,629. Brackins was convicted on these charges on April 19, 2016, after she pleaded guilty to conspiracy to commit mail and wire fraud, as well as to substantive mail and wire fraud counts.
Judge Jones previously sentenced Nicholas L. Johnson, 33, of Atlanta, Georgia, on March 29, 2016, to one year, nine months in prison to be followed by three years of supervised release, and he was ordered to pay restitution in the amount of $191,093. Johnson was convicted of these charges on January 4, 2016, after he pleaded guilty to conspiracy to commit mail and wire fraud, as well as to substantive mail and wire fraud counts.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Christopher J. Huber and Special Assistant United States Attorney Diane C. Schulman prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Court Shuts Down Alabama Tax Return PreparerRead the Press Release
Washington—According to a lawsuit the United States filed in April, a Birmingham, Alabama, tax return preparer continually and repeatedly prepared federal income tax returns that understated her clients’ liabilities or overstated their refunds. Now a federal court in Birmingham has permanently barred her from preparing tax returns for others and it has ordered her to give the United States a list of her customers since 2014.
Jessica Leverett aka Jessica Harris, owns and operates a number of different tax return preparation businesses in and around Birmingham, including Tax Money Now, Dynamic Tax Services, Dynamic Tax Solutions and Express Money Tax, the civil complaint alleged. Leverett’s businesses prepared returns that fabricate Schedule C businesses and business losses to offset their customers’ taxable income from other sources or to increase the customers’ Earned Income Tax Credit, according to the complaint. The complaint also alleged that Leverett’s businesses prepare returns that claim education credits that Leverett’s customers are not entitled to receive and that misreport self-employment income as household employee wages in order to avoid the self-employment tax.
The Internal Revenue Service (IRS) examined 264 returns prepared by Leverett’s businesses and found that 206 understated the customer’s tax due, the complaint alleges. Altogether, Leverett’s activities may have caused the United States to lose over $2.5 million in understated taxes and/or fraudulent refunds, according to the complaint. Leverett did not file a response challenging the government’s allegations.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
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Complaint Unsealed Charging 19 Gang Members and Associates with Conspiracy to Possess with Intent to Distribute and Conspiracy to Distribute Methamphetamine and HeroinRead the Press Release
Oklahoma City, Oklahoma – A 16-month joint investigation has resulted in a criminal complaint unsealed yesterday afternoon charging 19 gang members and associates with conspiracy to possess and distribute methamphetamine and heroin, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
On Thursday, July 14, 2016, law enforcement officers from the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), Bureau of Alcohol Tobacco Firearms and Explosives (ATF), Oklahoma City Police Department (OCPD), Oklahoma State Bureau of Narcotics and Dangerous Drugs (OBN), Internal Revenue Service Criminal Investigation (IRS), and the Oklahoma Department of Corrections (ODOC) executed multiple federal arrest warrants related to this investigation. The charged individuals are:
# Name Age Address1
Richard Joseph Coker
33
Oklahoma State Penitentiary
2
Richard Lee Potts
38
Oklahoma State Penitentiary
3
David Dean Cagle
34
Oklahoma State Penitentiary
4
Chad Nathen Hudson
36
Oklahoma State Penitentiary
5
Christopher Paul Brown
28
Oklahoma State Penitentiary
6
Gary Holden Schneider
29
OKC, OK
7
Angela Renee Harlan
38
Tulsa, OK
8
Robinson Rene Garcia-Aguirre
28
Oklahoma County Jail
9
Eyner Mora Esparza
23
Oklahoma County Jail
10
Tenesia Diane Rodriguez
36
OKC, OK
11
Aisha Bliss Donaldson
27
OKC, OK
12
Zane P. Yargee
22
Oklahoma County Jail
13
Daryl Lloyd Ivey
28
Oklahoma County Jail
14
Nika Deandre Davis
24
OKC, OK
15
Devon Alan Herron
23
OKC, OK
16
Margie Lee Barnhill
28
Newcastle, OK
17
Ricky Lynn Wolfe
37
Tulsa, OK
18
Amanda Heather Holland
43
Oklahoma County Jail
19
Jeremy Antowaine Taylor
34
Oklahoma County Jail
According to the criminal complaint affidavit, agents and task force officers conducted a joint investigation of the leadership of a gang that utilizes contraband cell phones within the prison and the cooperation of outside associates to operate a drug-trafficking operation. According to the complaint affidavit, a number of investigative techniques were used in this investigation, ranging from the use of cooperating defendants and sources, to controlled buys, consensually recorded telephone calls, court-authorized wire and electronic interceptions, and the execution of search warrants. It is alleged that these techniques consistently showed the existence of an extensive conspiracy to distribute large amounts of controlled substances across Oklahoma City and other parts of the state. It is alleged that more than 100 pounds of methamphetamine, firearms, and large amounts of U.S. currency have been seized during this investigation.
If convicted, the defendants each face a maximum penalty of life in federal prison.
This case is the result of a joint investigation by the FBI, DEA, ATF, OBN, OCPD, IRS, and the ODOC. The case is being prosecuted by Assistant U.S. Attorneys David McCrary and Kerry Blackburn.
The public is reminded that a criminal complaint is merely an accusation and that the defendants are presumed innocent unless proven guilty beyond a reasonable doubt. Reference is made to court filings for further information.
Cherry Hill Gang Member Sentenced to Almost 23 Years in Federal Prison for Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Asim Benns, a/k/a Seem, age 33, of Baltimore, today to 275 months in federal prison, followed by five years of supervise release, for conspiracy to participate in a racketeering enterprise in connection with his gang activities. Benns was a member of the UDH organization, as well as being a high-ranking member of the Black Guerilla Family gang, overseeing the “up the hill” area of Cherry Hill.
Also today, Judge Russell sentenced UDH gang members Donte Thornton, a/k/a Tay, age 30, of Baltimore to 15 years in federal prison, and James Scott, a/k/a Mook Day, age 24, of Essex, Maryland to 10 years in federal prison, each followed by five years of supervised release, for their participation in the racketeering conspiracy.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
From at least 2007 to 2013, the UDH organization operated in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” or “Down da Hill,” (DDH), and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the DDH section of Cherry Hill. The defendants admitted that as members of UDH they were part of a racketeering enterprise and protected their power, territory and profits through the use of violence, threats of violence, intimidation, robbery, and narcotics trafficking.
According to his plea agreement, Benns admitted that he planned and/or participated in the murders of two rival gang members, and two other shootings. Benns ran a heroin shop in the UDH area, as well as distributing other drugs. In July and August of 2011, Benns and other UDH members robbed two banks, stealing a total of $11,100, which he and the other robbers used to buy drugs that they could sell.
According to Thornton’s plea agreement, he participated in a bank robbery committed on July 19, 2011 with Benns and other UDH members. In addition, Thornton admitted his participation in a 2003 shooting and a 2007 murder of a rival gang member.
Scott, Thornton and Benns all admitted to their participation in the gang’s narcotics trafficking activities. Scott and Thornton admitted that they conspired with other UDH members to distribute at least one kilogram of heroin, five kilograms of powder cocaine, 280 grams of crack cocaine and marijuana. Benns admitted that he conspired with others to distribute between three and 10 kilograms of heroin, and between 840 grams and 2.8 kilograms of crack cocaine.
A total of 35 Cherry Hill gang members have pleaded guilty and 26 of those defendants, including the three sentenced today, have been sentenced to up to 35 years in prison.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Charlotte Jury Delivers Guilty Verdicts Against Leader of Healthcare Fraud Scheme and Co-ConspiratorRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte has convicted the leader and co-conspirator of a health care fraud scheme that fraudulently billed Medicaid for more than $10 million in false claims, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Cynthia Teresa Harlan, 48, of Charlotte, and Claude Bernard McCrae, 38, of Hamlet, N.C., were convicted of one count of health care fraud conspiracy following a four-day trial. Co-defendant Tyree Craig Jones, 38, of Charlotte, pleaded guilty to one count of health care fraud conspiracy on the fourth day of trial. Harlan was also convicted of three counts of making false statements relating to heath care matters, three counts of aggravated identity theft, and one count of obstruction of a health care fraud investigation. Chief U.S. District Judge Frank D. Whitney presided over the trial.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Rose in making today’s announcement.
According to evidence admitted at trial, witness testimony and other information contained in filed court documents:
Between October 2012 and August 2013, Harlan used a network of accomplices, including Jones and McCrae, to carry out an extensive health care fraud scheme involving the fraudulent submission of fake reimbursement claims to Medicaid for services that were never actually provided to beneficiaries. Harlan owned and operated Heartland Consulting and Marketing, Inc., a Charlotte-area company, purportedly specializing in the operation of mental health companies and Medicaid reimbursement. Harlan recruited a team of individuals that included mental health practitioners, note writers, patient recruiters, mental and behavioral health services providers and medical billers, and directed them to fabricate the necessary paperwork used to support the fraudulent claims billed to Medicaid. The fabricated paperwork included the names and beneficiary information of Medicaid recipients, fabricated intake packets, non-existent mental health diagnoses and made-up treatment plans and fake dates of service. It also included fake notes describing therapy services that never occurred. All of this information was organized in a manner to make it appear that the companies and clinicians involved in the scheme had provided legitimate therapy beneficiaries, contrary to the truth. The patient files were intended to deceive Medicaid auditors in case there was an inquiry about the accuracy of the fake claims.
Jones and McCrae were the co-owners of two outpatient mental and behavioral health services companies, Kings of Carolina Care 1, Inc. (Carolina Care 1), and Esteem Family Life Center, LLC (Esteem), both located in Rockingham, N.C. The two men partnered with Harlan and others to submit false reimbursement claims to Medicaid, claiming that the two entities provided mental and behavioral health services to the Medicaid recipients, when, in reality no services were provided at all. According to court records, Jones and McCrae, through Carolina Care 1, attempted to obtain from Medicaid over $5 million in fraudulent reimbursement claims and received over $1.3 million from Medicaid for the fraudulent claims.
Evidence at trial demonstrated that Harlan, Jones and McRae accomplished some of the fraud by misappropriating the Medicaid identification number of doctor. This doctor had never agreed to be part of Carolina Care 1, yet the group claimed that this doctor had provided over $2.3 million in therapy services to Medicaid recipients in just one year. Additionally, evidence presented at trial demonstrated that the false claims submitted by Carolina Care 1 indicated that Carolina Care 1 allegedly serviced over 500 clients in a single day.
Trial evidence also established that Harlan misused the names and Medicaid identification numbers of hundreds of Medicaid beneficiaries, including A.H., B.H. and M.H., in order to accomplish the scheme. According to the mothers of A.H. and M.H., who testified at trial, their children did not have mental health issues and never received any therapy services from any company. Harlan received over $400,000 for her role in the scheme. When Harlan became aware that she was being investigated for Medicaid fraud, Harlan directed some of her co-conspirators to destroy records as well as incriminating emails and text messages relevant to the scheme for the purpose of obstructing the investigation.
“Harlan and her extensive network of fraudsters and cheats repeatedly cheated North Carolina’s Medicaid program of money intended to pay for medical services of those in real need. The U.S. Attorney’s Office will continue to ferret out health care fraud and hold accountable those who cheat important government programs and steal taxpayers’ dollars,” said U.S. Attorney Rose.
“Medicaid fraud deprives much-needed services to poor and disabled North Carolinians and increases health care costs for everyone. The people trusted with the resources to care for others should not use that access to defraud the healthcare system. The FBI will work tirelessly to ensure federal funding is spent in an appropriate and legal manner,” said FBI’s Special Agent in Charge Strong.
To date, the following individuals have been prosecuted federally in connection with this health care fraud conspiracy:
-
Aliya Boss was previously sentenced to 44 months in prison, three years supervised release and was ordered to pay $ 1,135,302.27 in restitution. Boss filed reimbursement claims to Medicaid fraudulently claiming that she had provided mental health and behavioral health services to beneficiaries.
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Alexander Bass and Torrey Darnell Moton were previously sentenced to 32 and 25 months in prison, respectively, three years of supervised release and were ordered to pay $370,372.37 as restitution.Bass and Moton owned United Rehabilitation Services (URS), in Erwin, N.C., and filed reimbursement claims to Medicaid fraudulently claiming that URS provided mental health and behavioral health services to beneficiaries.
-
Sakeenah Davis and Kino Williams were previously sentenced to 42 and 35 months in prison, respectively, three years supervised release and were ordered to pay $ 506,124.00 in restition. Davis and Williams owned New Choices Youth and Family Services, in Charlotte, North Carolina, and filed reimbursement claims to Medicaid fraudulently claiming that URS provided mental health and behavioral health services to beneficiaries.
-
Jacqueline Ford was previously sentenced to 21 months in prison and three years supervised release and was ordered to pay $442,679.92 restitution. Ford fabricated notes to support the false claims submitted by Carolina Care 1, URS and other companies.
-
Zaria Humphries was previously sentenced to 24 months in prison and three years supervised release and was ordered to pay $222,037 in restitution. Humphries submitted false claims through her company Life Impact Solutions.
-
Tanisha Melvin was sentenced to 33 months in prison, three years of supervised release and was ordered to pay $392,159.81 in restitution.Melvin was responsible for creating fake patient records for the conspiracy.
-
LaChanda Clotiel Parks, also responsible for generating fake patient paperwork, was sentenced to 28 months in prison followed by three years of supervised release, and was ordered to pay $352,565.69 in restitution for her role in the conspiracy.
-
Dr. Wanda Webb was sentenced two years probation and ordered to pay $79,338.74 in restitution. Webb also submitted fraudulent claims through her company, Cornerstone Counseling and Consulting.
-
D’Marcus White, also responsible for generating fake patient paperwork, was previously sentenced to two years probation and ordered to pay $543,366.64 in restitution.
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Jason Adam Townsend is also facing health care fraud conspiracy and aggravated identity theft charges, for submitting fraudulent claims through his medical billing services company, Townhall Enterprises, LLC, located in Raeford, N.C.
McCrae is currently released on bond. Jones was remanded to federal custody on July 14, 2016, and Harlan remains in federal custody. A sentencing date for the defendants has not been set yet.
The health care fraud conspiracy charge carries a maximum prison term of 10 years. The maximum prison term for making false statements relating to health care matters is five years per count. The maximum penalty for obstruction of a health care fraud investigation offense carries a maximum prison term of five years and the aggravated identity theft charge carries a mandatory prison term of two years per count, consecutive to any other term of imprisonment.
The investigation was handled by the FBI with assistance from the North Carolina Medicaid Investigations Division. In making today’s announcement, U.S. Attorney Rose also thanked the Rockingham Police Department and the Richmond County Sheriff’s Office for their assistance at trial. The United States is being represented by Assistant U.S. Attorneys Kelli Ferry and Daniel Ryan, of the U.S. Attorney’s Office in Charlotte.
The investigation is the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
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Charleston Felon in Possession Sentenced to Seven Years in Prison in Federal CourtRead the Press Release
Contact Person: Emily Limehouse (843) 727-4381
Columbia, South Carolina---- Acting United States Attorney Beth Drake stated today that Junnie Lavon Williams, age 29, of Charleston, South Carolina was sentenced in federal court in Charleston, South Carolina, for Felon in Possession of Firearm and Ammunition in violation of 18 U.S.C. § 922(g)(1), facing a sentence of up to ten years in prison. Williams was previously convicted of possession with intent to distribute a controlled substance in 2004 and burglary in 2011, making him a prohibited person under the law. United States District Judge David C. Norton of Charleston sentenced Williams to seven years in prison. The term of imprisonment is to be followed by three years of supervised release. Williams pled guilty on January 15, 2016. Facts incorporated into the record at sentencing established that on January 31, 2015, a City of Charleston Police Department officer approached Williams because he fit the description of a person reportedly smoking marijuana on the sidewalk of North Market Street. Williams fled as the officer approached. Williams fell entering a construction site and attempted to discard an object from his front waist band. The officer detained Williams and discovered a black Smith and Wesson .380 caliber pistol loaded with six rounds of ammunition within arm's reach of Williams. Williams was also carrying a second loaded magazine in his pocket. The pistol's serial number had been filed off and black marker covered the scratch marks. Officers conducted an NCIC query and determined that Williams was a convicted felon prohibited from possessing a firearm. The conviction was a result of an investigation conducted by the City of Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorneys Nathan Williams and Emily Limehouse of the Charleston office prosecuted the case.
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Carole S. Rendon sworn in as U.S. Attorney for the Northern District of OhioRead the Press Release
Carole S. Rendon was sworn in as United States Attorney for the Northern District of Ohio this morning.
In that role, she is the chief federal law enforcement officer in Ohio’s northern 40 counties. The office is tasked with enforcing a wide range of criminal and civil statutes, including the prosecution of crimes including public corruption, civil rights, drug trafficking, fraud, human trafficking, firearms crimes and other violations.
“I am humbled by this honor,” Rendon said. “I look forward to continuing to work on our region’s most pressing challenges, including the opioid epidemic and police/community relations.”
U.S. District Judge Solomon Oliver delivered the oath to Rendon. A formal investiture ceremony will take place next month.
Rendon served from 2009 through 2016 as the First Assistant United States Attorney. In that role, she was responsible for the daily operation of the United States Attorney’s Office, including oversight of significant civil and criminal matters, litigation, strategic planning, community outreach, agency coordination, and office policies and procedures.
During that time, she was lead counsel on U.S. v. City of Cleveland, an exhaustive investigation of the Cleveland Division of Police which resulted in significant changes to areas including use of force, crisis intervention with the mentally ill, community engagement, bias-free policing, search and seizure, accountability, training, equipment and staffing. It is viewed as a national model for police reform.
She was also instrumental in developing the U.S. Attorney’s Task Force on Heroin and Opioids, which seeks to find comprehensive solutions to Northern Ohio’s heroin and opioid epidemic. She also was a driving force behind the Northeast Ohio Cyber Consortium, a cross-sector public-private partnership designed to reduce the region’s vulnerability to cyber attacks.
Rendon is a 1987 graduate of Northwestern University School of Law. She began her career as a law clerk to the Honorable Joel Flaum on the Seventh Circuit Court of Appeals. Carole then entered the Attorney General’s Honors Program in the Criminal Division of the Department of Justice and was assigned to the Organized Crime Strike Force Unit in Boston, Massachusetts, which later was merged into the United States Attorney’s Office.
In the Strike Force, she handled a series of investigations and prosecutions of corruption in the Boston Police Department and international Asian organized crime. In April 1994, Rendon became Chief of the Organized Crime Drug Enforcement Task Force, where she oversaw all of the major federal narcotics prosecutions.
In 1998, Rendon returned home to Cleveland and joined Messerman & Messerman. She later started the firm of Kushner & Rendon. In 2007, Carole seized the opportunity to join the women-owned litigation firm of Giffen & Kaminski. In each of those firms, Carole had both an active civil and criminal practice in federal and state court.
COPS Office to Conduct After-Action Review of Police Response to Orlando Nightclub Mass ShootingRead the Press Release
The Department of Justice, Office of Community Oriented Policing Services (COPS Office) today announced it will conduct a comprehensive after-action assessment of the Orlando Police Department’s (OPD) response to the mass shooting that took place on June 12 at the Pulse nightclub in Orlando, Florida.
Statement from U.S. Attorney Bentley:
“Chief Mina has proven to be a tremendous leader of the Orlando Police Department. His decision to seek an independent review of the law enforcement response to the Pulse nightclub shootings is another example of his effective leadership. The results of this review should help not only the Orlando Police Department, but also other law enforcement agencies forced to deal with terrorist attacks.”
Click this link to view the COPS Office press release in its entirety.