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13 July 2016
Temple Hills Man Sentenced to 14 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Arthur Charles Clements, age 57, of Temple Hills, Maryland, today to 14 years in federal prison, followed by lifetime supervised release, for receipt of child pornography. Judge Hazel also ordered that upon his release from prison Clements must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to Clements’ plea agreement, on April 8, 2015, the National Center for Missing and Exploited Children (NCMEC) received a report of suspected child pornography from Microsoft after Clements uploaded an image depicting children engaged in sexually explicit conduct to his One Drive account. NCMEC referred the report to the Maryland State Police and on July 24, 2015, Maryland State Police Troopers and Special Agents from HSI executed a search warrant at Clements’ residence. Law enforcement seized a laptop computer that contained from than 1,900 videos and 1,100 images of child pornography, including images and videos depicting sadistic or masochistic conduct and other depictions of violence performed on prepubescent children. Forensic analysis of Clements’ digital media revealed that Clements received child pornography via Skype, including a video received on March 25, 2015.
Clements waived his rights and agreed to be interviewed by law enforcement. During the interview Clements admitted that he downloaded and distributed child pornography and had been watching child pornography for approximately seventeen years. Clements also admitted chatting via Skype for at least six months with an adult male living in another state who was sexually abusing a nine year old girl. Clements admitted to watching live sexual conduct between the adult male and girl. Clements had at least 34 videos and 25 images documenting the sexual abuse of the minor female saved on his laptop computer, including the video received on March 25, 2015, described above.
Within 12 days, Special Agents with HSI identified and arrested the individual with whom Clements chatted via Skype, Joshua Logan Thornton, age 31, of Wynne, Arkansas. The child was rescued. Thornton pleaded guilty to one count of production of child pornography in the Eastern District of Arkansas on November 28, 2015, and was sentenced to 30 years in prison on February 18, 2016, in U.S. District Court in Little Rock, Arkansas.
In 2007, Clements was convicted of indecent exposure in St. Mary’s County Circuit Court stemming from images and videos he sent to teenaged girl.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Sumon Dantiki, who prosecuted the case.
Tax Return Preparer Pleads GuiltyRead the Press Release
DALLAS — A man who owned a tax preparation business located in Dallas, Texas, Kevin Troy Jernigan, appeared in federal court Tuesday and pleaded guilty to one count of aiding or assisting in the preparation or presentation of a false or fraudulent individual income tax return, announced U.S. Attorney John Parker of the Northern District of Texas.
Jernigan, faces a maximum statutory penalty of three years in federal prison and a $250,000 fine. Sentencing will be set at a later date. Following the plea, Jernigan was taken into custody following multiple violations of his pretrial release.
According to the factual resume filed in the case, since 2007, Jernigan was the owner and a return preparer at The Parks 11 located in Dallas, Texas. During tax years 2007 through 2012, Jernigan prepared and filed more than 1,300 tax returns that contained false and inflated deductions and credits which were intended to produce a fraudulently inflated refund to be paid by the IRS. The fraudulently income tax returns caused a tax loss of approximately $2,250,780 to the United States Treasury.
The factual resume further states that in January 2010, Jernigan prepared and filed with the IRS a 2009 tax return on behalf of taxpayer, “CJ.” In preparing and electronically filing that tax return, Jernigan included $27,019 as a Schedule C business loss. Jernigan knew CJ had not incurred the business loss reflected. As a result of the false deduction inserted by Jernigan, the refund was fraudulently inflated to $5,819 and resulted in a tax loss in the amount of $6,432.
IRS Criminal Investigation is investigating. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
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St. Croix Man Sentenced to 50 Months in Prison for Being a Felon in Possession of a FirearmRead the Press Release
St. Croix, USVI – Chief District Court Judge Wilma A. Lewis on Tuesday sentenced Misael Melendez, a/k/a Salao, 50, to 50 months’ imprisonment and three years of supervised release for being a felon in possession of a firearm, United States Attorney Ronald W. Sharpe announced. Chief Judge Lewis also ordered Melendez to pay a $100 special assessment and a $2,000 fine.
On January 28, 2016, Melendez pleaded guilty to being a felon in possession of a firearm. According to the plea agreement filed with the court, on February 11, 2015, Melendez sold a stolen .22 caliber rifle to an undercover informant. In 2009, Melendez had been convicted of a felony, possession with intent to distribute cocaine, in the District Court of the Virgin Islands.
This case was investigated by the U.S. Drug Enforcement Administration, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives and Virgin Islands Police Department. It was prosecuted by Assistant U.S. Attorney Sigrid Tejo-Sprotte.
Springfield Man Pleads Guilty to Bank Robbery, KidnappingRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man pleaded guilty in federal court today to robbing Bank of America and kidnapping the bank manager by forcing him to leave the bank with him.
Timothy Polodna, 53, of Springfield, pleaded guilty before U.S. District Judge Stephen R. Bough to bank robbery and kidnapping.
By pleading guilty today, Polodna admitted that he stole $26,536 from Bank of America, 633 W. Kearney St., Springfield, on July 9, 2014. Polodna entered the bank at approximately 10:30 a.m., wearing a ball cap, sunglasses and a large piece of white gauze over his chin. Polodna told a bank employee he needed to talk to someone about getting a loan and was directed to the bank manager’s office. The bank manager, who was already on alert due to Polodna’s apparent disguise, asked him to remove his hat and sunglasses. Polodna then told the bank manager, “You know why I’m here.” He then said that he had an “explosive device with a remote.” Polodna ordered the bank manager to stand up, turn around and lift his pant legs to check him for weapons. Polodna then ordered the bank manager to take him to the vault.
The bank manager, who had already activated the alarm, attempted to stall Polodna and suggested that Polodna wait in the office while he went to the vault alone. Polodna refused and demanded that he be taken to the vault. He took Polodna behind the teller counter to the drive up window where he told a teller to give Polodna cash from her teller drawer. She placed the money in a bag Polodna was carrying and he told her in a low voice, “Don’t push the alarm. I have an explosive device. I’ll set it off.”
After receiving the money, Polodna ordered the bank manager to open the doors for his exit from the bank. The bank manager opened the doors as instructed, exiting each of the two doors while holding them open for Polodna, who was behind him, to walk through the doors. Once outside, the bank manager then walked in front of Polodna, across the bank parking lot, toward the Rice House restaurant. Polodna’s gestures, actions and instruction to open the doors, coupled with the representation that he had a bomb, reasonably caused the bank manager to believe he was being ordered to leave the bank with Polodna. After crossing the street, Polodna told the bank manager to continue to walk three blocks north before calling the police. The bank manager initially complied and began to walk away, but after observing that Polodna had gone around the corner of the Rice House, the bank manager returned to the bank.
On July 14, 2014, the FBI received an anonymous tip that the vehicle in surveillance photos looked very similar to a vehicle owned by Polodna’s father. FBI agents were told that the rear window of the vehicle had been broken out a few days earlier, shortly after police reports highlighting distinctive stickers were noted in a news report about the bank robbery. The anonymous source also said the Polodna closely resembled the individual in the surveillance photos.
Agents contacted Polodna’s father, who confirmed that the rear window of his truck had been broken. Polodna’s father told agents that he believed his truck window was damaged because his son had used his truck when he committed the bank robbery and wanted to remove the incriminating stickers observed in pictures and by witnesses noted in press reports.
Agents searched the basement of Polodna’s parents’ home, where he was living, on July 16, 2014. They found a portion of the money taken during the bank robbery hidden in the area above the drop ceiling of the basement and Polodna was arrested.
Under federal statutes, Polodna is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, for bank robbery, plus a mandatory consecutive sentence of seven years in federal prison without parole for kidnapping. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Springfield, Mo., Police Department and the FBI.
South Carolina Attorney Pleads Guilty to Bank Fraud in UA Sorority House Furnishing SchemeRead the Press Release
HUNTSVILLE – A South Carolina attorney pleaded guilty Tuesday in federal court to bank fraud as part of a scheme that involved submitting false invoices for furnishings and equipment for a University of Alabama sorority house and receiving payment without providing the items, announced U.S. Attorney Joyce White Vance, U.S. Secret Service Special Agent in Charge Craig Caldwell, and U.S. Postal Inspection Service Inspector in Charge Adrian Gonzalez.
JENNIFER ELIZABETH MEEHAN, 39, pleaded guilty to bank fraud before U.S. District Judge Madeline H. Haikala. As part of a plea agreement with the government, Meehan also agreed to forfeit, as proceeds of illegal activity, $234,648 provided to the government in April, and to pay additional restitution of $34,815 to Greek Resource Services. In exchange, the government agreed to drop seven other fraud and money laundering counts brought against Meehan in the 2015 indictment. The government also agreed to recommend a 20-month prison sentence.
Meehan, a former member of Gamma Phi Beta at Alabama, was acting in her position as president of the House Corporation Board of The Epsilon Lambda Chapter of Gamma Phi Beta Sorority in an unpaid, volunteer capacity when she carried out the fraud.
According to Meehan’s plea agreement, Gamma Phi Beta was building a $14 million sorority house and Meehan was responsible for coordinating and purchasing all furniture and associated implements for the house between September 2013 and March 2015.
Meehan executed a bank fraud scheme to illegally obtain money from First Citizens Bank & Trust Company and the Bank of Tuscaloosa, according to her plea agreement. Gamma Phi Beta Sorority’s account was at the Bank of Tuscaloosa. Meehan opened an account at First Citizens Bank under a fraudulent business name.
In September and November of 2014, Meehan submitted fraudulent furniture invoices totaling about $375,000 to Greek Resource Services, a contract company that handles the finances for fraternities and sororities at UA. GRS drew money from Gamma Phi Beta’s account at Bank of Tuscaloosa and gave Meehan two checks totaling about $375,000. She deposited that money into the newly opened First Citizens account.
In January 2015, Meehan entered a First Citizens Bank & Trust branch in Anderson, S.C., and wired $175,000 from the fraudulent business account into her personal business account at Bank of America for her personal use, according to her plea agreement.
The U.S. Secret Service and the U.S. Postal Inspection Service investigated the case, which Assistant U.S. Attorney David H. Estes is prosecuting.
Souderton Man Sentenced to 15 years for Child PornographyRead the Press Release
PHILADELPHIA- Ian Ranberg, 50, of Souderton, PA, was sentenced today to 15 years in prison for distribution, receipt and possession of child pornography. On August 21, 2013, Homeland Security Investigations agents executed search warrants on Ranberg’s email account and at his home in Souderton, PA and recovered hundreds of thousands of images and videos of child pornography on various electronic devices. On September 23, 2014, Ranberg pleaded guilty to distribution, receipt and possession of child pornography. In addition to the prison term, U.S. District Court Judge Gene E.K. Pratter ordered 10 years of supervised release, restitution of $25,000, and a $400 special assessment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by Homeland Security Investigations and was prosecuted by Assistant United States Attorney Jessica Natali.
Scranton Man Sentenced to 5 Years in Prison for Federal Heroin Trafficking OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Scranton man was sentenced today in Wilkes-Barre by Senior United States District Court Judge A. Richard Caputo to serve 5 years in prison for heroin trafficking.
According to United States Attorney Peter Smith, Camilo Andujar, aka “Melo,” age 24, previously pleaded guilty to the charge of conspiracy to distribute heroin. Andujar was indicted by a grand jury in October 2015.
The charges stem from an investigation in which police made a purchase of heroin from Andujar and then obtained a search warrant for a residence, located on Electric Street in Scranton, where Andujar was residing. From the residence, police seized approximately 91 grams of heroin, which is equivalent to more than 3,100 individual retail bags of heroin. Police also seized a coffee bean grinder filled with heroin, $5,950 in cash, heroin packaging materials and drug paraphernalia.
The investigation was conducted by the Scranton Police Department, Special Investigations Division, Lackawanna County District Attorney’s Office and the Drug Enforcement Administration (DEA).
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
Judge Caputo also ordered that Andujar be supervised by a probation officer for a period of four years following his release from prison.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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Ryan Arcara Sentenced to 2 Years for Possessing Child PornographyRead 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 Ryan Arcara, 27, of West Seneca, N.Y., who was convicted of possessing child pornography, was sentenced to two years in prison and ten years supervised release by U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that the defendant possessed 8 image files and 59 video files containing child pornography stored on that computer and hard drive. Some of the child pornography possessed by the defendant depicted prepubescent minors or minors less than 12 years of age.
The sentencing is the result of/culmination of an investigation by the Department of Homeland Security/Homeland Security Investigations.Rockville Man Sentenced to Federal Prison for Drug Trafficking and Laundering over $2.5 Million of Drug ProceedsRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Issa Haddad, age 24, of Rockville, Maryland today to a year and a day in federal prison, followed by four years of supervised release, for drug and money laundering conspiracies involving over 400 kilograms of marijuana, and more than $2.5 million in drug proceeds. Judge Motz also entered an order requiring Haddad to forfeit $2.5 million.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, from March 2010 to April 10, 2014, Haddad provided addresses in Montgomery County, Maryland and elsewhere to which co-conspirators in California would ship marijuana. Haddad and others received packages of marijuana in Maryland, and Haddad was responsible for sending, receiving, and preparing for distribution. Ultimately, Haddad admitted that he conspired with others to distribute between 400 and 700 kilograms of marijuana in Maryland.
Members of the conspiracy provided Haddad with bank account numbers into which the proceeds from the sale of the marijuana were deposited. Haddad and others deposited cash in amounts less than $10,000 into the provided banks accounts which were controlled by co-conspirators. These deposits of less than $10,000 were structured to evade IRS reporting requirements and conceal from the government large cash transactions by narcotics dealers.
Haddad admitted that he conspired to launder of between $2.5 million and $7 million of drug proceeds.
Seven co-defendants pleaded guilty to their participation in the drug and/or money laundering conspiracies, and were sentenced to up to seven years in prison.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kelly O. Hayes, who is prosecuting the case.
Roanoke Man Sentenced on Drug ChargeRead the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentencing of a Roanoke man on federal drug charges.
Rahmyene Shreef Jones, 32, of Roanoke, Va., pled guilty in March to one count of possessing with the intent to distribute a substance containing a detectable amount of heroin. Today in the United States District Court for the Western District of Virginia in Roanoke, Jones was sentenced to 126 months in federal prison.
“The United States Attorney’s Office continues to work with our local, state and federal law enforcement partners to investigate and prosecute cases involving heroin,” United States Attorney John P. Fishwick Jr. said today. “The abuse of this drug is a serious health epidemic and must be dealt with as such.”
According to evidence presented at previous hearings by Assistant United States Attorney Ashley B. Neese, Jones was found to be in possession of heroin during two traffic stops conducted by the Roanoke City Police Department and agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, one on September 2, 2015 and one on May 27, 2015.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roanoke City Police Department. Assistant United States Attorney Ashely B. Neese prosecuted the case for the United States.
Richfield man sentenced to two years in prison for illegally selling firearmsRead the Press Release
A Richfield Township man was sentenced to two years in prison for illegally dealing firearms after he sold approximately 300 firearms over a three-year period, said Acting U.S. Attorney Carole S. Rendon and ATF Acting Special Agent in Charge Brad Earman.
Timothy J. Cassinger, 49, was not a licensed firearms dealer but sold approximately 300 firearms for profit between June 2012 and October 2015. He was given a warning letter by ATF to cease and desist or get a license to sell firearms. In response to the letter, he continued to buy and sell firearms. Many of the weapons were purchased from federal firearms licensees and then resold by Cassinger at gun shows or online, according to court documents.
Eleven firearms originally purchased by Cassinger were intercepted by Spanish authorities in September 2014, on a ship destined for Beirut, Lebanon . Other firearms purchased by Cassinger were later recovered in Cleveland, Columbus, East Cleveland, New York City and other cities, according to court documents.
“The firearms sold by this defendant eventually made their way around the state, around the country and around the world,” Rendon said. “Those who engage in the business of selling firearms need to be licensed.”
“ATF’s core mission is reducing violent crime in our country,” said ATF Acting Special Agent in Charge Brad Earman. “When individuals illegally sell firearms, they compromise the ability of law enforcement to trace firearms and solve crimes.”
This case is being prosecuted by Assistant U.S. Attorney Kelly L. Galvin following an investigation by the ATF.
Repeat Sex Offender Sentenced to 15 Years in Prison for Receiving Child PornographyRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of TERRANCE MICHAEL PICK, 68, for receiving child pornography. PICK, who pleaded guilty on March 23, 2016, was sentenced today before Senior U.S. District Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn.
“We are grateful to our partners at the Internet Crimes Against Children Task Force for helping us investigate this case,” said Assistant United States Attorney Laura M. Provinzino. “Child pornography is a crime that has profound repercussions for the victims throughout their lifetimes. This is a just sentence for a man with a troubling history of harming children.”
“This disturbing case is an example of why investigators must continue to uncover and bring to justice those who would prey on children,” said Minnesota Bureau of Criminal Apprehension Superintendent Drew Evans. “The Internet Crimes Against Children Task Force will continue to identify and investigate predators who would conduct such criminal acts with such vulnerable victims.”
According to the defendant’s guilty plea and documents filed in court, PICK had several thousand electronic images and almost 200 videos of child pornography. The search history on PICK’s web browser also included nefarious phrases such as “training them young.”
According to the defendant’s guilty plea and documents filed in court, PICK was convicted of second-degree manslaughter in 1974 in Stearns County when he killed a two-year-old child. The child bled to death from internal injuries caused by PICK. On January 20, 1988 PICK was convicted of first-degree criminal sexual conduct in Wright County for sexually assaulting his 7-year-old niece and her 8-year-old friend.
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.
In addition, if you know of any child who may have been a victim of exploitation, please contact the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case is the result of an investigation led by the Minnesota Bureau of Criminal Apprehension, with assistance from the Meeker County Sheriff’s Office, the Eden Valley Police Department and the Federal Bureau of Investigation.
This case was prosecuted by Assistant U.S. Attorney Laura M. Provinzino.
Defendant Information:
TERRANCE MICHAEL PICK, 68
Eden Valley, Minn.Convicted: • Receipt of child pornography, 1 count
Sentenced:
• 15 years in prison
• 15 years of supervised releaseRemaining Defendants Sentenced for Roles in Sex Trafficking SchemeRead the Press Release
WASHINGTON – The Justice Department announced today that Christopher Williams, 31, and Laquentin Brown, 34, both of Memphis, Tennessee, were sentenced to 180 months and 99 months in prison, respectively, for their roles in a sex trafficking scheme that operated out of the Riviera Motel in New Orleans. The sentencing was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana.
Williams and Brown pleaded guilty on April 20, 2015, and March 4, 2015, respectively, to one count of conspiracy to engage in sex trafficking by force, fraud and coercion. Brown also pleaded guilty to one count of interstate transportation for prostitution.
Five additional defendants have pleaded guilty and been sentenced for their roles in the sex trafficking scheme. On May 4, 2016, Granville Robinson, 28, was sentenced to over 24 years in prison after pleading guilty to one count of conspiracy to commit sex trafficking and one count of sex trafficking. On June 8, 2016, Duane Phillips, 31, was sentenced to over 21 years in prison; Anthony Ellis, 27, was sentenced to 15 years in prison and Zacchaeus Taylor, 23, was sentenced to 99 months in prison. Phillips, Ellis and Taylor pleaded guilty to one count of conspiracy to commit sex trafficking. Ellis and Taylor also pleaded guilty to one count of interstate transportation for prostitution. Also on June 8, 2016, Kanubhai Patel, 75, the former owner of the Rivera Motel, was sentenced to five years probation and ordered to pay a $10,000 fine after pleading guilty to benefitting financially from sex trafficking. U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana scheduled a hearing for July 20, 2016, to determine the amount of restitution owed to the victims.
“The defendants orchestrated an extensive and violent sex trafficking scheme that forever impacted the lives of many young women,” said Principal Deputy Assistant Attorney General Gupta. “The Civil Rights Division is unwavering in our commitment to seek justice on behalf of vulnerable victims and hold human traffickers accountable.”
“Today’s sentences culminate one of the most successful human trafficking investigations in our district,” said U.S. Attorney Polite. “However, this case represents just the tip of the iceberg. We will remain vigilant in our efforts to combat modern-day slavery in our area.”
“Human trafficking has become an increasing problem both in Louisiana and across the nation,” said Special Agent in Charge Jeff Sallet of the FBI’s New Orleans Division. “Collectively, the FBI New Orleans Division is working in partnership with federal, state and local law enforcement agencies to combat this problem. Human traffickers like these defendants, who continue to prey on vulnerable women and children, will be aggressively investigated by the FBI so the victims may be rescued and the perpetrators brought to justice.”
“Human trafficking is a form of modern-day slavery that ICE Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with the FBI and our state and local law enforcement partners,” said Special Agent in Charge Raymond R. Parmer Jr. of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New Orleans. “The results speak for themselves: over the past two years, HSI has doubled its number of human trafficking arrests. HSI will continue to investigate and seek prosecution of these criminals while also ensuring the victims of this terrible crime are rescued and get the care they need.”
During their respective plea hearings and in their respective court filings, Williams and Brown admitted that they, along with their co-defendants Robinson, Phillips and Ellis, conspired to recruit, groom, force, compel and coerce adult women to engage in prostitution, enforcing rules and means of control that included requiring the women to earn a certain amount of money each day, requiring them to turn over the proceeds and prohibiting them from speaking to or looking at other pimps. Williams admitted to intentionally trying to impregnate his victims to make it harder for them to leave him, while some of the other defendants took the victims’ identification cards and documents. Williams also noted that he attempted to avoid visible bruising so that the victims would not draw the attention of the police or scare off prospective customers. Williams, Brown and the other co-conspirators frequently stayed at the Riviera Motel because they knew that the hotel staff would not stop them from pimping women.
The case was investigated jointly by agents from the FBI and HSI New Orleans Field Offices, with assistance from the FBI’s Memphis Field Office. The case was prosecuted by Trial Attorney Christine M. Siscaretti of the Civil Right Division’s Criminal Section and Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.
Remaining Defendants Sentenced for Roles in Sex Trafficking SchemeRead the Press Release
Sex Trafficking Scheme Used Threats, Violence and Coercion to Compel Women into Prostitution in New Orleans and Elsewhere
The Justice Department announced today that Christopher Williams, 31, and Laquentin Brown, 34, both of Memphis, Tennessee, were sentenced to 180 months and 99 months in prison, respectively, for their roles in a sex trafficking scheme that operated out of the Riviera Motel in New Orleans. The sentencing was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana.
Williams and Brown pleaded guilty on April 20, 2015, and March 4, 2015, respectively, to one count of conspiracy to engage in sex trafficking by force, fraud and coercion. Brown also pleaded guilty to one count of interstate transportation for prostitution.
Five additional defendants have pleaded guilty and been sentenced for their roles in the sex trafficking scheme. On May 4, 2016, Granville Robinson, 28, was sentenced to over 24 years in prison after pleading guilty to one count of conspiracy to commit sex trafficking and one count of sex trafficking. On June 8, 2016, Duane Phillips, 31, was sentenced to over 21 years in prison; Anthony Ellis, 27, was sentenced to 15 years in prison and Zacchaeus Taylor, 23, was sentenced to 99 months in prison. Phillips, Ellis and Taylor pleaded guilty to one count of conspiracy to commit sex trafficking. Ellis and Taylor also pleaded guilty to one count of interstate transportation for prostitution. Also on June 8, 2016, Kanubhai Patel, 75, the former owner of the Rivera Motel, was sentenced to five years probation and ordered to pay a $10,000 fine after pleading guilty to benefitting financially from sex trafficking. U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana scheduled a hearing for July 20, 2016, to determine the amount of restitution owed to the victims.
“The defendants orchestrated an extensive and violent sex trafficking scheme that forever impacted the lives of many young women,” said Principal Deputy Assistant Attorney General Gupta. “The Civil Rights Division is unwavering in our commitment to seek justice on behalf of vulnerable victims and hold human traffickers accountable.”
“Today’s sentences culminate one of the most successful human trafficking investigations in our district,” said U.S. Attorney Polite. “However, this case represents just the tip of the iceberg. We will remain vigilant in our efforts to combat modern-day slavery in our area.”
“Human trafficking has become an increasing problem both in Louisiana and across the nation,” said Special Agent in Charge Jeff Sallet of the FBI’s New Orleans Division. “Collectively, the FBI New Orleans Division is working in partnership with federal, state and local law enforcement agencies to combat this problem. Human traffickers like these defendants, who continue to prey on vulnerable women and children, will be aggressively investigated by the FBI so the victims may be rescued and the perpetrators brought to justice.”
“Human trafficking is a form of modern-day slavery that ICE Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with the FBI and our state and local law enforcement partners,” said Special Agent in Charge Raymond R. Parmer Jr. of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New Orleans. “The results speak for themselves: over the past two years, HSI has doubled its number of human trafficking arrests. HSI will continue to investigate and seek prosecution of these criminals while also ensuring the victims of this terrible crime are rescued and get the care they need.”
During their respective plea hearings and in their respective court filings, Williams and Brown admitted that they, along with their co-defendants Robinson, Phillips and Ellis, conspired to recruit, groom, force, compel and coerce adult women to engage in prostitution, enforcing rules and means of control that included requiring the women to earn a certain amount of money each day, requiring them to turn over the proceeds and prohibiting them from speaking to or looking at other pimps. Williams admitted to intentionally trying to impregnate his victims to make it harder for them to leave him, while some of the other defendants took the victims’ identification cards and documents. Williams also noted that he attempted to avoid visible bruising so that the victims would not draw the attention of the police or scare off prospective customers. Williams, Brown and the other co-conspirators frequently stayed at the Riviera Motel because they knew that the hotel staff would not stop them from pimping women.
The case was investigated jointly by agents from the FBI and HSI New Orleans Field Offices, with assistance from the FBI’s Memphis Field Office. The case was prosecuted by Trial Attorney Christine M. Siscaretti of the Civil Right Division’s Criminal Section and Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.
Pennsylvania Woman Sentenced to Five Years in Prison for Selling Millions of Dollars in Fraudulent Telecom EquipmentRead the Press Release
TRENTON, N.J. – A Pennsylvania woman was sentenced today to 60 months in prison for her role in a long-running, large-scale scheme involving the fraudulent sale of telecommunications equipment belonging to a company she worked for as a consultant, U.S. Attorney Paul J. Fishman announced.
Following an 11-day trial before U.S. District Judge Peter G. Sheridan in Trenton federal court, Juanita L. Berry, 48, of Phoenixville, Pennsylvania, was convicted in December 2015 of four counts of wire fraud, which caused more than $3.5 million in losses, and two counts of tax evasion for evading taxes in 2010 and 2011. The jury deliberated for 75 minutes before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
From 2008 to 2011, Berry worked as a consultant for an Indiana company that installed and removed telecommunications systems, first as a sales representative and later as the company’s vice president for major accounts. Initially, Berry worked out of the company’s Levittown, Pennsylvania, facility and, later, out of its Dayton, New Jersey, facility. The “brains” of the telecommunications systems the company installed and removed were the electronic circuit boards of varying complexity that range in price between several hundred to tens of thousands of dollars.
Berry owned a company named J. Starr Communications Inc., (J. Starr) through which she arranged her consulting agreement and allegedly operated her fraudulent scheme.
Without the knowledge or authorization of the telecommunications company’s management, Berry sold both used cards and new cards with other telecommunications equipment owned by the company as though such equipment belonged to her or J. Starr. She then pocketed the proceeds from such fraudulent sales. Berry deceived employees at the Levittown and Dayton facilities into thinking that the shipments of used cards were part of the telecommunications company’s normal course of business. Between 2008 and 2011, the Florida company that purchased the cards from Berry or J. Starr wired in excess of $3.5 million in payment to J. Starr’s bank account.
In addition to the prison term, Judge Sheridan sentenced Berry to three years of supervised release and ordered her to pay restitution of $3.4 million.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel Andrew Leven and Assistant U.S. Attorney Lucy Muzzy of the U.S. Attorney’s Office in Newark.
Owner of Union County, New Jersey, Home Health Care Agency Gets 54 Months in Prison for Bilking Medicaid Out of $7 MillionRead the Press Release
NEWARK, N.J. - A Springfield, New Jersey, man was sentenced today to more than four years in prison for his role in a scheme that used bogus records and unqualified home health aides to defraud Medicare out of $7 million, U.S. Attorney Paul J. Fishman announced.
Paul Mil, 67, previously pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with conspiracy to commit health care fraud, money laundering and tax evasion. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Mil was the owner of People Choice Home Care Inc., a home health care agency located in Elizabeth, New Jersey, that provided home health aides and health care services to New Jersey residents. Mil was also the registered agent for HHCH Health Care Inc. in Linden, New Jersey, a home health care agency owned by Irina Krutoyarsky, 62, of Springfield, New Jersey. Home health aides visit patients at their homes and provide a variety of services, such as assistance with eating, dressing and grooming. These services were subsidized under the New Jersey Medical Assistance Program (Medicaid).
Mil, Krutoyarsky and others defrauded Medicaid through a variety of ways. First, they submitted false documents to the New Jersey Board of Nursing, the state agency responsible for issuing home health aide certifications. Krutoyarsky falsely represented that prospective home health aides had attended and satisfactorily completed required training and testing. In truth, Krutoyarsky charged prospective home health aides hundreds of dollars for fraudulently obtaining their certifications.
Second, Mil, Krutoyarsky and others fraudulently billed Medicaid for services not actually rendered to patients. Numerous HHCH home health aides routinely falsified records that claimed they had visited patients and provided them health care services. In truth, these home health aides had other jobs, were on vacations overseas, or were in other parts of the state during the times they claimed they were with patients. In certain instances, home health aides gave cash kickbacks to patients who were also participating in the scheme.
Third, Mil, Krutoyarsky and others hired individuals with no home health certifications and no status in the country and then sent them to patients’ homes. They then billed Medicaid, fraudulently claiming that the services had been provided by duly certified home health aides.
In total, Mil and others defrauded Medicaid out of $7 million. After Medicaid paid the claims and transferred the funds into bank accounts controlled by Mil, he used the proceeds to purchase real estate and personal property.
Additionally, between 2007 and 2011, Mil cheated the IRS out of approximately $918,000 in taxes due and owing. As part of the scheme, home health aides were sent to the homes of patients who were not eligible for Medicaid. These patients wrote checks payable to HHCH and People Choice. Mil then cashed these checks at check cashing businesses and equally divided the cash with Krutoyarsky. On his corporate tax returns, he falsely characterized these payments as legitimate business deductions, thus reducing his business’ corporate taxes. He then filed federal individual income tax returns that concealed this income.
In addition to the prison term, Judge Hayden sentenced Mil to serve three years of supervised release and ordered him to pay forfeiture of $7 million. As part of his plea agreement, Mil also had to forfeit six homes and properties in New Jersey and New York.
U.S. Attorney Fishman credited agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; U.S. Citizenship and Immigration Services; New Jersey Office of the State Comptroller, Medicaid Fraud Division under the direction of Director Josh Lichtblau; The Enforcement Bureau of the New Jersey Attorney General’s Office on behalf of the Board of Nursing, Acting Attorney General Christopher S. Porrino; the New Jersey Department of Labor under the direction of Commissioner Harold J. Wirths; the Marlboro Police Department, under the direction of Chief Bruce Hall; and the U.S. Department of State-Diplomatic Security with the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorneys Peter Gaeta and Anthony Moscato of the New Jersey U.S. Attorney’s Office Criminal Division in Newark.
Defense Counsel: Nicholas G. Kaizer Esq., New York
Nigerian Immigrant Indicted for Day Care Fraud Linked to International SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the Nigerian owner of a day care center in Kansas City, Mo., was arrested today as part of a nationwide sweep that targeted childcare center fraud schemes.
Today’s arrest was part of a national law enforcement operation that included arrests and search warrants executed in Missouri and six other states. The operation was the result of separate, but related, federal investigations into Nigerian and Somalian childcare center fraud that resulted in a loss of more than $1 million to the government.
Hauwa Al-Hassan, 47, of Raymore, Mo., was charged with the theft of government property in an indictment returned under seal by a federal grand jury in Kansas City, Mo., on June 29, 2016. That indictment was unsealed and made public today following Al-Hassan’s arrest and initial court appearance.
Al-Hassan, a Nigerian immigrant, is the owner and CEO of Guidance Child Care Center, LLC, a child day care center at 8101 E. Bannister Rd., Kansas City, Mo. Al-Hassan is also the vice president of Guidance Academy of Science, Technology, Engineering and Math.
The federal indictment alleges that, from June 2011 to June 2016, Al-Hassan engaged in a pattern of fraudulent billing in order to receive funding to which she was not entitled under the federal Child Care and Development Fund grant program. Al-Hassan allegedly filed claims that reported more hours and children than actually attended her daycare center.
The Child Care and Development Fund provides daycare subsidies for low-income families where the parents are employed or engaged in job training. Providers, such as Guidance, contract with the Children’s Division of the Missouri Department of Health and Senior Services and submit claims electronically.
Based on a review of childcare claims between 2011 and 2016, the indictment says, at least $100,000 has been fraudulently billed by Guidance in connection with this scheme.
The indictment also alleges that Al-Hassan is involved in a fraud scheme with international implications. Al-Hassan allegedly has traveled to Nigeria to teach others who plan to return to the United States how to run similar daycare fraud schemes.
Once a fraud scheme is successfully executed in the United States, the indictment says, the money is either wired by traditional means, or hawala (an Islamic informal system used to transfer currency from one individual to another individual who lives overseas), or hand carried from the United States back to the country where the immigrant was born. For example, the indictment says that on Dec. 20, 2015, $23,000 in cash was hand-carried out of the United States to Nigeria by an unnamed individual on a visa using Al-Hassan’s residential address, which is also the Guidance Childcare Center’s main office address.
According to the indictment, Al-Hassan signed a contract with the Missouri Department of Social Services on May 3, 2010, to operate Guidance Child Care Center as a licensed childcare center providing childcare services to low-income families. Since 2013, Guidance has been audited by the state on four occasions. Each audit, the indictment says, found many hours fraudulently billed for childcare services.
Auditors found, for example, that Guidance Child Care and another provider allegedly billed the state for the childcare of the same child, at overlapping times. Auditors also found a large discrepancy between the timesheets (attendance records initialed by the parents) submitted and the billings made to the state. Other billing discrepancies, such as billing the state for children who were not receiving childcare services, allegedly also occurred. On May 1, 2015, the Department of Social Services mailed Guidance Child Care Center a letter of non-compliance.
Investigators installed two pole cameras near Guidance from Feb. 11 to March 20, 2016. One camera focused on the front doors of Guidance; the second camera showed the parking lot and rear doors. All doors in and out were covered by a pole camera. Timesheets submitted with the billing were compared with children seen on the pole cameras being dropped off and picked up from Guidance during that time. There were significant discrepancies between the timesheets submitted and the pole camera footage.
The indictment also contains a forfeiture allegation, which would require Al-Hassan to forfeit to the government any property obtained from the proceeds of the alleged fraud scheme, including approximately $100,000 received in connection with the scheme.
Dickinson cautioned that the charge contained in this indictment 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 Jane Pansing Brown. It was investigated by the U.S. Department of Health and Human Services – Office of Inspector General, Office of Investigations, the FBI, the Missouri Department of Social Services – Division of Legal Services Investigations, the Kansas City, Mo., Police Department and the Raymore, Mo., Police Department.
New York Man Sentenced in Counterfeit Traveler's Check CaseRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Sherman C. Bolling was sentenced to 36 months in federal prison based upon his plea of guilty to charges arising from his role in a counterfeit traveler’s check scheme. Bolling previously had pleaded guilty to one count of Possessing Counterfeit Traveler’s Checks. Bolling, 68 years old, lived in Hempstead, New York, before he was taken into custody on related charges in January.
According to court documents, testimony and statements Bolling and an accomplice made in earlier proceedings, Bolling was caught by police fleeing in his car from the parking lot of a retail box store in Tilton, N.H. Bolling began fleeing when police arrived at the store to investigate a report from the store’s loss prevention staff that a woman was attempting to purchase high value merchandise with counterfeit traveler’s checks. After they intercepted Bolling, the police discovered in his possession 96 counterfeit traveler’s checks – 12 in $200 denominations and 84 in $100 denominations. When Bolling fled, he left the woman, later identified as Kadejdra Marda, at the store to deal with the police on her own. Marda eventually admitted that she was an accomplice of Bolling, that he had driven her to the store and that, before he left her behind, Bolling had been waiting for her in his car while she was in the store trying to pass the bad traveler’s checks.
Bolling was sentenced by U.S. District Judge Paul J. Barbadoro. In addition to the term of incarceration, Judge Barbadoro ordered Bolling to serve, upon his release from prison, a term of supervised release of 3 years. While on supervised release, Bolling 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.
Judge Barbadoro previously sentenced Marda, who also pleaded guilty, to time served (which had been approximately three months). Like Bolling, Marda also will be required to serve a three-year term of supervised release. Among the conditions of Marda’s supervised release are that she be detained in her home, and be subject to electronic monitoring, for three months.
This matter was investigated by the Tilton (N.H.) Police Department with support from the Manchester, N.H., Field Office of the United States Secret Service. The case was prosecuted by Assistant United States Attorney Bill Morse.
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Minnesota-Based Hospice Provider to Pay $18 Million for Alleged False Claims to Medicare for Patients Who Were Not Terminally IllRead the Press Release
Evercare Hospice and Palliative Care will pay $18 million to resolve False Claims Act allegations that it claimed Medicare reimbursement for hospice care for patients who were not eligible for such care because they were not terminally ill, the Justice Department announced today. Evercare, now known as Optum Palliative and Hospice Care, is a Minnesota-based provider of hospice care in Arizona, Colorado and other states across the United States.
Hospice care is special end-of-life care for terminally ill patients intended to comfort the dying. When a terminally ill Medicare patient elects hospice, Medicare no longer covers traditional medical care designed to improve or heal the patient. Only Medicare patients who have a life expectancy of six months or less are considered terminally ill and eligible for the Medicare hospice benefit.
“Today’s settlement reflects the Justice Department’s continuing efforts to combat health care fraud and protect the nation’s elderly and most vulnerable citizens,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Our seniors rely on the hospice program to provide them with quality care, dignity and respect when they are terminally ill and need end-of-life care. It is, therefore, critically important that we hold accountable those hospice providers that bill for medically unnecessary services in order to get higher reimbursements from the Medicare program. Such abuses threaten a vulnerable population and jeopardize this important benefit for others under the program. The Justice Department will continue to protect taxpayer dollars and ensure that this critical benefit is available for Medicare patients who truly need it.”
This settlement resolves a lawsuit brought by the government alleging that Evercare knowingly submitted or caused to be submitted false claims to Medicare for hospice care from Jan. 1, 2007, through Dec. 31, 2013, for Medicare patients who were not eligible for the Medicare hospice benefit because Evercare’s medical records did not support that they were terminally ill. The government’s complaint alleged that Evercare’s business practices were designed to maximize the number of patients for whom it could bill Medicare without regard to whether the patients were eligible for and needed hospice. These business practices allegedly included discouraging doctors from recommending that ineligible patients be discharged from hospice and failing to ensure that nurses accurately and completely documented patients’ conditions in the medical records.
The allegations resolved by this settlement arose from whistleblower lawsuits initially filed by former employees of Evercare under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The Act allows the United States to intervene in the lawsuits, which it did in this case. The share to be awarded in this case has not yet been determined.
“The decision to put someone into hospice care is an emotionally wrenching one for the patient and the patient’s family,” said U.S. Attorney John Walsh for the District of Colorado. “When hospice companies exploit and overbill Medicare by having people in hospice when they do not belong there, it jeopardizes this important benefit for others. We will not tolerate such conduct. The District of Colorado and the Department of Justice’s Civil Fraud Section deserve substantial credit for achieving this result in this Evercare Hospice case.”
“Hospice care is only medically necessary and reimbursable by Medicare for terminally ill patients with a life expectancy of six months or less,” said Special Agent in Charge Steven Hanson of the Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “We will continue to vigorously investigate health care companies that put their own profits above the medical needs of patients to ensure that companies bill Medicare only for reimbursable health care services.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30 billion through False Claims Act cases, with more than $18.3 billion of that amount recovered in cases involving fraud against federal health care programs.
This settlement is the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Colorado and HHS-OIG.
The lawsuits resolved by this settlement, which were consolidated in the District of Colorado, are captioned United States ex rel. Fowler and Towl v. Evercare Hospice, Inc., et al., No. 11-cv-00642 (D. Colo.) and United States ex rel. Rice v. Evercare Hospice, Inc., No. 14-cv-01647 (D. Colo.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Mexican National Sentenced for Unlawful Transfer of Identification DocumentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MEINARDO ALONSO-CASTILLO, age 30, a citizen of Mexico, was sentenced today after previously pleading guilty to a one-count Bill of Information for the unlawful transfer of identification documents.
U.S. District Judge Martin L.C. Feldman sentenced ALONSO-CASTILLO to 10 months imprisonment followed by 1 year of supervised release, a $5,000 fine, and a $100 special assessment.
According to court documents, from on or about September 10, 2015, through December 9, 2015, ALONSO-CASTILLO sold altered identification documents, including Social Security cards, with the intent that the recipient could use the documents to gain employment unlawfully.
U.S. Attorney Polite praised the work of the Department of Homeland Security Investigations and Immigration and Customs Enforcement Agencies in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Mexican National Pleads Guilty to Federal Heroin Trafficking ChargeRead the Press Release
ALBUQUERQUE – Diego Mauricio Curiel-Cervantes, 22, a Mexican national, entered a guilty plea today to a heroin trafficking charge in federal court in Albuquerque, N.M.
Curiel-Cervantes was arrested on April 8, 2016, after DEA agents found 1.30 gross kilograms (2.6 pounds) of heroin and 3.45 gross kilograms (7.59 pounds) of cocaine concealed in his luggage at the Greyhound Bus Station in Albuquerque. Curiel-Cervantes subsequently was indicted and charged with possession of heroin and cocaine with intent to distribute.
During today’s change of plea hearing, Curiel-Cervantes entered a guilty plea to a felony information charging him with possession of heroin with intent to distribute. In his plea agreement, Curiel-Cervantes admitted that he unlawfully possessed heroin in Bernalillo County, N.M., on April 8, 2016. Law enforcement officers found the heroin, which was concealed in Curiel-Cervantes’ suitcase in a luggage compartment of a Greyhound Bus, during a consensual search.
Curiel-Cervantes has been in federal custody since his arrest and remains detained pending a sentencing hearing, which has yet to be scheduled. At sentencing, he faces a statutory maximum sentence of 20 years in prison. He will be deported after completing his prison sentence.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers 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 DEA, Bernalillo County, 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. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. 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.
Mexican National Found Guilty of Drug TraffickingRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces that Telesforo Lozano, 60, of Torreon, Mexico, was found guilty today of two federal drug charges. Following a two-day trial, Lozano was found guilty by a federal jury of one count of conspiring to distribute cocaine and one count of possession with intent to distribute cocaine. Senior U.S. District Judge Callie V. S. Granade presided over the trial. The jury heard evidence that Lozano was acting as a drug courier for a Mexican drug cartel and was hired to transport drugs from Mexico to Atlanta, Georgia. On August 21, 2015, Lozano drove across the border from Juarez, Mexico into El Paso, Texas with 4.34 kilograms of cocaine concealed in a hidden compartment inside a black Ford F-150 truck. On August 23, 2015, Lozano was pulled over for a routine traffic violation on I-10 East in Mobile County, Alabama by an Alabama State Trooper. A subsequent search of Lozano’s truck led to law enforcement’s seizure of the concealed cocaine, which had a retail value of approximately $500,000.
Lozano’s sentencing date is October 12, 2016. He faces up to 40 years of imprisonment as to each count of conviction.
The case was investigated by the Drug Enforcement Administration, the U.S. Customs and Border Protection, and the Alabama Law Enforcement Agency. The case was prosecuted by Assistant United States Attorneys George May and Sinan Kalayoglu.
Memphis Man Sentenced for Distributing Child PornographyRead the Press Release
Memphis, TN – A Memphis man has been sentenced to federal prison for distributing multiple images and videos of child pornography. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, Julius Ford, 26, of Memphis, Tennessee, sent images and videos of children engaged in sexual conduct to others.
On September 4, 2014, Homeland Security Investigations (HSI) agents in Memphis received an investigative lead about an individual in the Memphis area using a flagged email account to send and receive emails containing child exploitation material. The investigation revealed that the IP address and login activity associated with the email account was registered to Ford at a residence in the Frayser area of Memphis.
On September 22, a covert investigator with the Memphis Child Exploitation Task Force contacted the flagged email account, which resulted in a series of emails sent from the account to the covert investigator. The emails contained child exploitation material, including videos depicting prepubescent children engaged in sexual acts with other minors and adults.
Law enforcement executed a search warrant at Ford’s residence on February 2, 2015. Agents seized a hard drive, two laptops, an iPhone, and a thumb drive. In total, forensic examinations conducted on these devices revealed that Ford possessed approximately 555 video files and 2,865 image files depicting sexually explicit conduct involving minors. Ford later admitted to being the user of the mail account and that he had used the account to trade child pornography. The defendant also admitted to sending emails from the account containing videos of child pornography to the covert investigator.
Ford served in the United States Army from 2008 to 2012. During the time of his criminal activity, Ford was active in the Army Reserves.
In March 2016, Ford pleaded guilty before U.S. District Judge John T. Fowlkes Jr. to one count of distribution of child pornography.
On Wednesday, July 13, 2016, Ford was sentenced by Judge Fowlkes to 97 months in prison and 10 years of supervised release.
The case was investigated by the Memphis Child Exploitation Task Force. The collective is comprised of federal and local law enforcement agencies, including the Federal Bureau of Investigation; HSI; Shelby County Sheriff’s Department; Memphis Police Department; U.S. Postal Investigation Service; U.S. Marshals Service; and the U.S. Secret Service.
Assistant U.S. Attorney Kasey Weiland prosecuted this case on the government’s behalf.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Member of the Rompe Onu Sentenced to Life in Prison for Violating the Rico Act in Puerto Rico, Drug Charges and Violent ActsRead the Press Release
SAN JUAN, Puerto Rico– Pedro Vigio-Aponte, a/k/a “Pedrito/Pedrito He-Man/Pello/Pedrito Trauma” was sentenced to be in prison for the remainder of his natural life by the Honorable Judge Francisco A. Besosa for his participation in drug trafficking and violent acts, including a drive-by shooting murder, announced United States Attorney, Rosa Emilia Rodríguez-Vélez. After a nine-day jury trial that concluded on December 18, 2016, Vigio-Aponte was found guilty of a RICO conspiracy, a drug conspiracy, possession of a firearm in furtherance of drug trafficking, a drive-by shooting murder, and using and carrying a firearm during and in relation to a crime of violence to cause the death of three persons.
At trial, the United States presented numerous witnesses to establish Vigio-Aponte’s participation in drug trafficking and murder in furtherance of a criminal organization known as “La Rompe ONU.” Through its criminal activities “La Rompe ONU” enriched its members and maintained and increased the power of the organization. Members of “La Rompe ONU” would sell crack, cocaine, heroin, and marihuana in public housing projects, including: Jardines del Paraíso, Villa Andalucía, Alturas de Cupey, Jardines de Cupey, Brisas de Cupey, Los Claveles, Nuestra Señora de Covodonga, Los Lirios, Jardines de Monte Hatillo, Jardines de Campo Rico, Jardines de Berwind, San Martín, Monte Park, and Villa Lomas Verdes Public Housing Projects; as well as El Polvorín Ward, Mango Sector and other surrounding areas within the municipalities of San Juan, Trujillo Alto and Carolina, PR. Moreover, members of the organization used violence and intimidation, including murder, to increase the power, territory, and profits of “La Rompe ONU.” At trial, the United States presented evidence of Vigio-Aponte and other member’s participation in various murders, including the Los Paseos Massacre for which the jury found Vigio-Aponte guilty.
In the Los Paseos Massacre, members of La Rompe ONU murdered Santos Diaz-Camacho, a/k/a “Joel Bazooka” and his two body guards, Kevin Soto-Roman, a/k/a “El Gordo” and Juan Rosario-Mercado, a/k/a “Toñito” because Diaz-Camacho, who was a leader of La Rompe ONU, had allied himself with a rival drug trafficking organization. Because of this, the main leader of La Rompe ONU ordered his murder. On July 20, 2011, Vigio-Aponte and other members of La Rompe ONU drove in three separate vehicles to commit this murder. A member of La Rompe ONU provided the group with the location of Diaz-Camacho and informed them that he was driving a car and had an escort following him in another vehicle. When Diaz-Camacho stopped at a red light near Los Paseos Shopping Center in San Juan, Puerto Rico, Members of La Rompe ONU were ordered to take the lead and shoot Diaz-Camacho. Members of La Rompe ONU then fired at Diaz-Camacho’s vehicle and killed him. Vigio-Aponte and other members of La Rompe ONU shot and killed Diaz-Camacho’s bodyguards, Soto-Roman and Rosario-Mercado, who were escorting Diaz-Camacho using another vehicle.
Assistant U.S. Attorneys Alberto López-Rocafort and Victor O. Acevedo-Hernández were in charge of the prosecution of the case.
McComb Doctor Pleads Guilty to Federal IndictmentRead the Press Release
Natchez, Miss - Dr. Lawrence Edsel Stewart, 59, of McComb, Mississippi, pled guilty today, before Senior U.S. District Judge David C. Bramlette III, to distributing and dispensing a schedule IV controlled substance outside the scope of professional practice, announced U.S. Attorney Gregory K. Davis and Assistant Special Agent in Charge Daniel Comeaux with the Drug Enforcement Administration - New Orleans Field Division.
Stewart will be sentenced by Senior U.S. District Judge David C. Bramlette III on September 27, 2016 and faces a maximum sentence of five years in federal prison and a $250,000 fine.
This case was investigated by the Drug Enforcement Administration, Mississippi Bureau of Narcotics, Mississippi Medical Board, and Mississippi Board of Nursing. Assistant U.S. Attorney Erin Chalk is prosecuting the case.
Manhattan U.S. Attorney Settles Civil Fraud Lawsuit Against Clothing Importer and Manufacturers for Evading Customs DutiesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), and Robert E. Perez, Director of the New York Field Operations for U.S. Customs and Border Protection (“CBP”), announced a $13.375 million settlement of a civil fraud lawsuit against MOTIVES, INCORPORATED, an importer of clothing, and MOTIVES FAR EAST and MOTIVES CHINA LIMITED, foreign manufacturers of clothing (collectively “MOTIVES”), for engaging in a double invoicing scheme to defraud the United States out of millions of dollars in customs duties. In the settlement, approved yesterday in Manhattan federal court by U.S. District Judge George B. Daniels, MOTIVES admitted to and accepted responsibility for under-reporting the value of its imported merchandise and agreed to pay $13.375 million to the United States under the False Claims Act.
Manhattan U.S. Attorney Preet Bharara said: “Motives evaded millions in customs duties by presenting false invoices to U.S. Customs and Border Protection. With this lawsuit and the accompanying resolution, which involves admissions and the payment of over $13 million, Motives is being held to account for its unlawful evasion of customs duties.”
ICE HSI Special Agent-in-Charge Angel M. Melendez said: “Motives disguised the true value of goods imported into the United States to cheat the government out of millions of dollars in customs duties. This scheme backfired, now Motives will pay millions for trying to skirt America’s customs laws. Trade fraud threatens the U.S. economy and restricts competitiveness of U.S. industry in the world markets. HSI and CBP maintain a zero-tolerance policy when it comes to these types of predatory and unfair trade practices.”
CBP Director of New York Field Operations Robert E. Perez said: “CBP takes trade fraud, such as undervaluation, very seriously. We are proud to partner with HSI and the Southern District to level the playing field for legitimate traders by steadfastly enforcing US trade laws.”
The Government’s complaint, filed in Manhattan federal court, alleges that from approximately 2009 through 2013, MOTIVES, which regularly manufactured and/or imported apparel into the United States, conspired with clothing wholesalers fraudulently to underpay customs duties owed to the Government by making false representations in entry documents filed with CBP about the value of the imported merchandise. Pursuant to the scheme, MOTIVES created and/or used two sets of invoices: one that undervalued the garments and was presented to the Government for calculation of the appropriate duty, and the second that reflected the actual value of the garments. MOTIVES presented to the Government invoices with the lower value on the entry forms, thereby defrauding the Government of millions of dollars in customs duties.
As part of the settlement, MOTIVES admitted, acknowledged, and accepted responsibility for engaging in the following conduct from 2009-2013:
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repeatedly preparing and presenting to the Government commercial invoices for apparel being imported into the United States that reported less than the total value of the goods imported;
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repeatedly representing to the Government that its documentation contained, to the best of MOTIVES’ knowledge, correct and true information such as prices, values, and quantities;
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repeatedly receiving from apparel wholesalers an amount in excess of that recorded on the commercial invoices; and
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repeatedly failing to disclose to the Government the separate invoices reflecting the true value of the apparel, and instead reporting only the lesser amounts listed in the commercial invoices, which the Government then used to assess customs duties.
The allegations of fraud stated in the Complaint were first brought to the attention of federal law enforcement by a whistle-blower who filed a lawsuit under the False Claims Act.
Mr. Bharara praised the investigative work of the ICE HSI on this case. He also thanked U.S. Customs and Border Protection for their assistance.
This case is being handled by the Office’s Civil Frauds Unit. Assistant United States Attorneys Jamie L. Nawaday and Kirti Vaidya Reddy are in charge of the case.
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Longtime fugitive Eric Bartoli pleads guilty to stealing $65 million from hundreds of peopleRead the Press Release
Eric V. Bartoli, who was indicted in 2003 and was a fugitive for more than a decade, pleaded guilty to defrauding hundreds of investors out of millions of dollars in the 1990s, law enforcement officials said.
Bartoli, 61, is scheduled to be sentenced Nov. 9 after pleading guilty to eight counts, including conspiracy, securities fraud, sale of unregistered securities, wire fraud, mail fraud and attempted income tax evasion.
The guilty plea was announced by Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the FBI, and Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Bartoli operated a large-scale Ponzi scheme from 1995 through 1999. He created and operated a company by the name of Cyprus Funds, Inc., which was based in Doylestown, Ohio and incorporated in Central America. Bartoli and his co-conspirators operated Cyprus to sell certificates of deposit and unregistered mutual funds. Cyprus raised approximately $65 million from an estimated 800 investors in Latin America and the United States. Some of Cyprus’s victims included retirees, according to court records.
Bartoli was sued in 1999 by the Securities and Exchange Commission on charges involving the Cyprus Funds, Inc. Bartoli did not appear at a scheduled hearing regarding the SEC charges. He was subsequently found in contempt of court and a civil arrest warrant was issued. Bartoli had fled Ohio and was arrested in New Hampshire. Bartoli was not detained at that time and became a fugitive.
An indictment was filed against Bartoli in the U.S. District Court for the Northern District of Ohio in October 2003.
Bartoli was taken into custody by the Peruvian National Police in Lima, Peru, in 2013. The operation was a joint effort between the FBI, Diplomatic Security Service, and the Peruvian National Police. He was returned to the United States last year.
“Mr. Bartoli is finally being held accountable for his crimes, more than two decades after he started stealing millions of dollars,” Rendon said. “The fact that he will finally be sentenced for his actions is a tribute to all who have worked on this case, who never stopped pursuing justice for the victims.”
“After years of living on the run, Mr. Bartoli is accepting responsibility for swindling individuals out of large sums of money - some their entire life savings,” Anthony said. “The FBI will continue to investigate fraudsters, like Eric Bartoli, and will hold them accountable for their criminal behavior, no matter how long it takes.”
“The investigation of Mr. Bartoli uncovered a multi-million dollar Ponzi scheme laced with a web of financial lies that left 800 investors in financial peril,” Entstrom said. “When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime. Combining the financial investigative expertise of the IRS with the skills and resources of the FBI and the U.S. Attorney’s Office makes a formidable team for combating major, greed-driven crimes.”
This case is being prosecuted by Assistant U.S. Attorneys Antoinette T. Bacon and Christos M. Georgalis following an investigation by the Federal Bureau of Investigation, Internal Revenue Service and the Securities and Exchange Commission.
Logan man charged with defrauding people through investment scheme involving racehorsesRead the Press Release
A Logan man was charged in federal court with stealing more than $308,000 from investors through a fraudulent horseracing venture and using the money to buy expensive clothes, vehicles and pay for gambling expenses, law enforcement officials said.
The charges were announced by U.S. Attorney Carole Rendon, Kathy Enstrom, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Cincinnati Field office, and Craig Wisniewsky, Special Agent in Charge of the Secret Service’s Cleveland office.
Jonathan Pippin, 29, was charged via criminal information with two counts of wire fraud and one count of money laundering.
Pippin created PJH Horse Racing, Inc. in 2011. The company was headquartered in Cleveland and purported to be in the business of purchasing race horses. Pippin had sole control over the company and its various bank accounts, according to the information.
Pippin solicited investors to his company under false pretenses. He told potential investors that they were investing in a venture with a wealthy businessman and widely-known horse racing figure – identified in the charges only as M.R. – when in reality Pippin did not know M.R.
Pippin falsely represented to investors that they would receive a percentage of the winnings of M.R.’s horses when he knew it was not true. He also told investors that he had stud rights to M.R.’s horses when he did not, according to the information.
Pippin used the investors’ money to enrich himself and pay personal expenses, such as the purchase of a Cadillac Escalade, tickets to sporting events, gambling expenses, rent and expensive clothing, according to the information.
Four investors lost a combined $308,305, according to the information.
“This defendant created a web of lies to pay for fancy cars, expensive clothes and gambling expenses,” Rendon said. “He defrauded investors to pay for a lifestyle he couldn’t afford. Now he’ll be held accountable for his actions.”
“Investment fraud schemes are often described as a house of cards,” Enstrom said. “In this case, when the dust settled, the underlying structure fell apart and exposed the individual responsible."
“This case is another example of the success of the task force concept where multiple federal agencies bring expertise to an investigation resulting in a successful conviction,” Wisniewsky said.
This case is being prosecuted by Assistant U.S. Attorney Christos M. Georgalis following an investigation by the IRS-CI and United States Secret Service.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Lincoln County man pleads guilty to obtaining pain pills by fraudRead the Press Release
CHARLESTON, W.Va. – A Lincoln County man pleaded guilty today to a federal drug crime, announced Acting United States Attorney Carol Casto. Aaron Hatfield, 37, of Harts, entered his guilty plea to obtaining controlled substances by fraud and misrepresentation.
Hatfield admitted that on January 6, 2016, he acquired a family member’s key to Chapmanville Pharmacy through misrepresentation and entered the building after normal business hours. Once inside, he obtained oxycodone, Xanax, and morphine pills. Hatfield moved pill bottles around in an effort to avoid detection, though he was recorded by the pharmacy’s video surveillance. He further admitted to obtaining 130 oxycodone pills, 50 Xanax pills, and eight 100 mg morphine pills. He also admitted that he did not have a valid prescription nor the authority to enter the pharmacy and obtain the pills.
Hatfield faces up to four years in federal prison when he is sentenced on October 11, 2016.
The Drug Enforcement Administration and the Logan County Sheriff’s Office conducted the investigation. Assistant United States Attorney John J. Frail is responsible for the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Justice Department Requires Divestitures in Huntington Bancshares Incorporated’s Acquisition of FirstMerit CorporationRead the Press Release
Thirteen Branches in Northeast Ohio to Be Divested
The Department of Justice announced today that Huntington Bancshares Incorporated and FirstMerit Corporation have agreed to sell 13 branches in Northeast Ohio, with approximately $737.8 million in deposits, to resolve antitrust concerns that arose from Huntington’s planned acquisition of FirstMerit. As a result of the acquisition, Huntington will become the largest bank in Ohio based on deposits.
Under their agreement with the department, the companies have agreed to divest two branches in Ashtabula County and 11 branches in Stark County, Ohio. The divested assets will include the deposits and loans associated with the divested branches. The companies have also agreed to suspend existing, and not to enter into new, non-compete agreements with their branch managers and loan officers located in Ashtabula County and Stark County, Ohio, for a period of 180 days following the consummation of their merger. Further, the companies have agreed to sell or lease branches closed within two years of the consummation of the merger in Ashtabula County or Stark County, Ohio, to FDIC-insured depository institutions offering deposit and credit services to small businesses.
“Families and small businesses rely on banks in their communities to keep their money safe and provide them credit for important purchases and investments,” said Principal Deputy Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “Today’s settlement protects banking customers in Ashtabula County and the Greater Canton area by ensuring that they continue to have access to competitively priced banking products.”
The proposed merger is subject to the final approval of the Board of Governors of the Federal Reserve System. The department said that it will advise the Federal Reserve Board that it will not challenge the merger provided that: the parties divest the branch offices, associated loans and deposits and the entire customer relationships associated with the divestiture branches; the parties commit to the Federal Reserve Board that they will comply with the agreement with the department; and the parties’ commitments to the department are included as a condition to any order the Federal Reserve Board enters allowing the transaction.
Huntington is the holding company of The Huntington National Bank, Columbus, Ohio, with approximately $73 billion in assets. Huntington operates more than 750 branches and 1,500 ATMs in Ohio, Indiana, Kentucky, Michigan, Pennsylvania and West Virginia. Huntington specializes in full-service commercial, small business, and consumer banking services, as well as services ranging from mortgage banking to equipment leasing.
FirstMerit is the holding company of FirstMerit Bank, N.A., Akron, Ohio, with approximately $26.1 billion in assets. With about 370 branches and 400 ATMs in Ohio, Illinois, Michigan, Pennsylvania and Wisconsin, FirstMerit provides a large range of banking and other financial services to consumers and businesses.
A list of the branches to be divested is attached.
Attachment A - Huntington FirstMerit Branches to be Divested
Jury Convicts Jefferson City Man of Child PornRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Jefferson City, Mo., man has been convicted at trial of possessing and receiving child pornography over the Internet.
Ryan Michael Moberg, 37, of Jefferson City, was found guilty on Tuesday, July 12, 2016, of the charges contained in a June 15, 2015, federal indictment.
Evidence introduced during the trial indicated that Moberg utilized a peer-to-peer file-sharing program to access child pornography over the Internet. In November 2012, a Boone County, Mo., Sheriff’s Department detective identified Moberg’s computer as sharing files online. One of the video files on Moberg’s computer depicted a young girl engaged in sexual activity with a dog.
Law enforcement officers executed a search warrant at Moberg’s residence in April 2013 and seized an Acer tower computer. Moberg was not home at the time the warrant was executed; investigators went to his workplace and interviewed him. Moberg admitted to investigators that he searched for child pornography online and downloaded it to his computer.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for about two and a half hours before returning the guilty verdicts to U.S. District Judge Stephen R. Bough, ending a trial that began Monday, July 11, 2016.
Under federal statutes, Moberg is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Boone County, Mo., Sheriff’s Department and the Jefferson City, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Investment Advisor Pleads Guilty to Defrauding Investors of More Than $1.2 MillionRead the Press Release
The United States Attorney’s Office for the District of Minnesota announced the guilty plea of DAVID BLAINE WELLIVER, 56, for defrauding investors in the Dblaine Fund, a mutual fund for which WELLIVER acted as investment adviser, of at least $1.2 million. WELLIVER pleaded guilty to one count of securities fraud today before Senior U.S. District Judge Paul A. Magnuson.in U.S. District Court in St. Paul, Minn.
“Today's guilty plea demonstrates how federal law enforcement works together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain,” said Special Agent in Charge Shea Jones of IRS Criminal Investigation. “IRS Criminal investigators will continue to use their financial expertise to identify these types of investor fraud schemes.”
According to the defendant’s guilty plea, WELLIVER was the CEO and CIO of Dblaine Capital, LLC, an investment advisory company he founded in Buffalo, Minn. In September 2010, WELLIVER negotiated an agreement with Lazy Deuce Capital Company, LLC (Lazy Deuce), to purportedly finance the merger between Dblaine Capital and other mutual funds.
According to the defendant’s guilty plea, WELLIVER, in 27 separate transactions between October 2010 and May 2011, borrowed a total of $4 million from Lazy Deuce. Aside from a $95,000 payment to acquire the assets of a mutual fund, WELLIVER did not use any of the other proceeds of the Lazy Deuce loans to acquire mutual funds as he had represented to Lazy Deuce. Instead, WELLIVER diverted over $500,000 in proceeds from the Lazy Deuce loans to his own personal use, including for landscaping and interior decorating at his personal residence, to purchase land adjacent to his personal residence, to buy a personal vehicle, and to pay for his son’s college tuition.
According to the defendant’s guilty plea, between December 16, 2010, and April 15, 2011, WELLIVER caused $1.725 million in Dblaine Fund investors’ money to be invested in a shell company formed by several Lazy Deuce principals, called Semita Partners LLC (Semita). At the time WELLIVER made the investments in Semita, he knew that Semita was a shell company formed by principals of Lazy Deuce – the same company from which Dblaine Capital had borrowed money – and that Semita had no operations. On December 31, 2010, in order to meet a series of redemptions in the Dblaine Fund, WELLIVER liquidated nearly all of the stocks held by the Dblaine Fund. Following this liquidation, the Dblaine Fund’s only holdings consisted of worthless Semita shares and cash held in a money market account.
As a result of WELLIVER’s fraud scheme, Dblaine Fund investors lost more than $1.2 million.
This case is the result of an investigation conducted by the United States Postal Inspection Service, the Federal Bureau of Investigation, and the Internal Revenue Service – Criminal Investigation.
This case is being prosecuted by Assistant United States Attorneys Kimberly A. Svendsen and Benjamin F. Langner.
Defendant Information:DAVID BLAINE WELLIVER, 56
Buffalo, Minn.Convicted: • Securities fraud, 1 count
High-Frequency Trader Sentenced to Three Years in Prison for Disrupting Futures Market in First Federal Prosecution of "Spoofing"Read the Press Release
CHICAGO — In the first federal prosecution of its kind, a high-frequency trader was sentenced today to three years in prison for disrupting commodity futures prices in a $1.4 million fraud scheme.
MICHAEL COSCIA, 54, used an automated trading technique known as “spoofing” to earn illegal profits from orders he placed through Chicago-based CME Group and London-based ICE Futures Europe. Coscia commissioned the design of computer programs, known as algorithms, to implement the fraudulent strategy at his New Jersey trading firm.
A federal jury in Chicago last year convicted Coscia, of Rumson, N.J., on six counts of commodities fraud and six counts of spoofing. U.S. District Judge Harry D. Leinenweber imposed the 36-month sentence in federal court in Chicago.
“Traders contemplating sophisticated scams will think twice if they know that there are more significant consequences than a civil lawsuit or a regulatory action,” Assistant U.S. Attorney Sunil Harjani argued in recommending a term of imprisonment in the government’s sentencing memorandum. “Hedge funds and proprietary trading firms will closely review their trades, and strike down get-rich-quick manipulation trading schemes because the cost is not worth the benefit.”
The indictment against Coscia marked the first federal prosecution under the anti-spoofing provision enacted in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. The case was prosecuted by the Securities and Commodities Fraud Section of the U.S. Attorney’s Office in Chicago. The section, which was created in 2014 by United States Attorney Zachary T. Fardon, is dedicated to protecting markets and preserving investors’ confidence.
Mr. Fardon announced the sentence along with Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
High-frequency trading is a form of automated trading that uses algorithms for placing a high volume of orders in milliseconds. It is illegal for traders to engage in spoofing, which involves placing “bids” to buy or “offers” to sell a futures contract with the intent to cancel the bid or the offer before execution.
Evidence at Coscia’s seven-day trial in November 2015 showed that he engaged in spoofing in the markets of various commodities, including gold, soybean meal, soybean oil, high-grade copper, Euro FX and Pounds FX currency futures. In less than three months in 2011, Coscia illegally profited nearly $1.4 million.
Hell’s Angels Member Sentenced to 25 Years in Prison for Methamphetamine TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Rochester, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced that JAMES HENRY McAULEY, JR., 67, of Oakfield, New York, who previously pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of methamphetamine, was sentenced to 300 months in prison by U.S. District Judge Charles J. Siragusa. McAuley was also prohibited by Judge Siragusa from being a member of or associating with the Hell’s Angels for five years after his release from prison.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that from 2002 through July 9, 2010, McAuley – at the time, a member and Vice President of the Rochester Hell’s Angels – was the leader of a methamphetamine trafficking network operating in the Western District of New York. In 2002, McAuley located a source of methamphetamine supply in the Monterey, California area. McAuley and other members of the conspiracy traveled to California on numerous occasions to obtain pound-size quantities of methamphetamine from the supplier. The methamphetamine would then be transported or shipped from California to the Rochester area, where another member of the conspiracy would sell it to their customers.
In April 2007, McAuley was arrested on federal racketeering charges from the Northern District of New York. After his arrest and incarceration, McAuley continued to direct the methamphetamine trafficking operation. McAuley used another co-conspirator to arrange for obtaining quantities of methamphetamine from the Monterey, California- based source of supply. Other members of the conspiracy sold the methamphetamine to individuals in the Rochester area, Genesee County, and other locales. The conspiracy continued until July 2010. McAuley admitted to trafficking up to 15 kilograms (more than 30 pounds) of methamphetamine.
This case is part of a larger investigation that resulted in the indictment and arrest of members and associates of the Rochester and Monterey (California) Hell's Angels for drug trafficking and racketeering-related offenses in February 2012. Seven defendants were charged with conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of methamphetamine. All of the defendants – McAuley, Richard W. Mar, 64, the President of the Monterey Hell’s Angels in California; Donna Boon, 50, McAuley’s wife, of Oakfield, New York; Rochester Hell’s Angels member Richard E. Riedman, 42, of Webster, New York; Gordon Montgomery, 57, of Batavia, New York; Rochester Hell’s Angels member Jeffrey A. Tyler, 51, of Rochester, New York; and Paul Griffin, 62, of Blasdell, New York – have pleaded guilty to drug trafficking offenses based on their roles in the methamphetamine conspiracy. Judge Siragusa sentenced Griffin to probation, Riedman to 37 months in prison, Montgomery to 60 months in prison, Tyler to 18 months in prison, and Boon to 3 years probation and 12 months of home incarceration. Mar is scheduled to be sentenced on August 16, 2016, in front of Judge Siragusa.
Rochester Hell's Angels member Robert W. Moran, Jr. a/k/a Bugsy, 61, of Rochester, New York, pleaded guilty to conspiracy to commit assault with a dangerous weapon in aid of racketeering activity on February 24, 2016, and was sentenced to 18 months in prison. Gina Tata, 52, of Rochester, New York, pleaded guilty to being an accessory after the fact to the conspiracy to commit assault with a dangerous weapon in aid of racketeering activity, on February 24, 2016, and was sentenced to 3 years probation. Another defendant, Timothy M. Stone (age 36), of Gates, New York, pleaded guilty to being an accessory after the fact to the assault, and was sentenced on February 5, 2016, by Judge Siragusa to 12 months in prison.
The plea was the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special-Agent-In-Charge Adam Cohen, the Genesee County Sheriff's Office, under the direction of Sheriff Gary T. Maha, the Drug Enforcement Administration, under the direction of James Hunt, the New York State Police, under the direction of Superintendent Joseph D’Amico, the City of Batavia Police Department, under the direction of Chief Shawn Heubusch, and the Village of LeRoy Police Department, under the direction of Chief Christopher Hayward.
Glen Carbon Man Sentenced for Armed RobberyRead the Press Release
The United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today that Jonathan Michael Malone, 53, of Glen Carbon, Illinois, was sentenced in the United States District Court in East Saint Louis, Illinois for armed robbery. Malone was charged with Interference of Commerce by Robbery, with Brandishing a Firearm During and In Relation to a Crime of Violence, and with Unlawful Possession of a Firearm by a Convicted Felon.
Malone admitted in open court, that on January 14, 2016, Malone robbed the One Stop Shop Gas Station in Maryville, Illinois. During the robbery, Malone brandished a handgun at the owner. Furthermore, Malone possessed the handgun unlawfully after having been previously convicted of armed robbery.
On July 12, 2016, the district court sentenced Malone to a total of 108 months in federal prison. The court also ordered Malone to serve three years of supervised release, to pay to fine of $300, and pay restitution to the shop owner in the amount of $102.25.
The case was investigated by the Glen Carbon Police Department, the Maryville Police Department, the Illinois State Police, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney William E. Coonan.
Georgia Resident Convicted in the Southern District of Florida of Threatening Several Palm Beach County LocationsRead the Press Release
Preston Alexander McWaters, 25 of Athens, Georgia, pled guilty today before United States District Judge James I. Cohn, in Fort Lauderdale, Florida, to four counts of transmitting a threat in interstate commerce to injure another person, in violation of Title 18, United States Code, Section 875(c), and two counts of conveying false and misleading information indicating that a bombing of a place of public use would take place, in violation of Title 18, United States Code, Section 1038(a)(1)(A) and (c).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Lawrence Leon, Chief, Palm Beach County School District Police Department, made the announcement.
McWaters faces a statutory maximum of five years’ imprisonment on each count to which he pled guilty. He is scheduled to be sentenced before Judge Cohn on September 23, 2016.
According to the factual proffer accompanying his plea, McWaters, over the course of several months in late 2015 and early 2016, sent numerous e-mails and other communications threatening to bomb various locations in Palm Beach County, including schools, a hospital, a business and the Palm Beach International Airport. McWaters also posted a number of threats to injure a woman who had previously obtained a protective order against him as well as to injure the family of a high school principal in Palm Beach County. McWaters used tools to prevent law enforcement from tracing the online threats back to him, and exerted substantial effort to implicate a romantic rival and, later, his rival’s then-girlfriend in an attempt to conceal his identity. The FBI ultimately was able to trace the threats back to McWaters, who was arrested in March 2016.
“Bomb threats present significant safety and security issues to both law enforcement and the general public,” said U.S. Attorney Wifredo A. Ferrer. “The U.S. Attorney’s Office and our law enforcement allies will take all necessary steps to ensure that people who use the internet or other means to threaten the physical structure of buildings or well-being of the American people will face serious consequences.”
“Threats like these bomb scares by Mr. McWater are serious crimes and warrant a serious response,” said George L. Piro, Special Agent in Charge, FBI Miami. "They frighten innocent people and waste valuable law enforcement resources, which could be better spent responding to actual crimes. These type of threats will be investigated thoroughly and vigorously by the FBI and our partners.”
Palm Beach County School District Police Chief Lawrence Leon stated, “I am truly appreciative of the partnership and assistance given to the Palm Beach County School District Police by the Federal Bureau of Investigations and the U.S Attorney’s Office in this successful prosecution of this case. All threats to our schools, students, and staff are taken seriously and the Palm Beach County School District Police will take the appropriate actions to ensure that we are safe.”
Mr. Ferrer commended the outstanding investigative efforts of the FBI, Palm Beach County School District Police Department and the Jupiter Police Department. Mr. Ferrer also thanked the myriad of law enforcement partners in Florida and Georgia, including the Palm Beach County Sheriff's Office, the Palm Beach County State Attorney's Office, the Jupiter Police Department, the West Palm Beach Police Department, the University of Georgia Police Department, the Clarke County Georgia Police Department, and the United States Attorney's Office for the Middle District of Georgia, for their assistance. The case is being prosecuted by Assistant U.S. Attorneys Edward Nucci, Karen Gilbert, and Adam Fels.
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
Fort Worth Man Admits to Kidnapping and Enticing Two Teenage Girls to Engage in Sexual ActivityRead the Press Release
ABILENE — A Fort Worth, Texas, man, Robert Harris, 50, appeared this morning before U.S. Magistrate Judge E. Scott Frost and pleaded guilty to an indictment charging one count of enticement of a minor and aiding and abetting, announced John Parker, United States Attorney for the Northern District of Texas.
Harris faces a statutory penalty of not less than 10 years and not more than life in federal prison. Each count also carries up to a $250,000 fine and up to a lifetime of supervised release. Harris has been in custody since his arrest in January 2016. Sentencing will be set at a later date.
According to documents filed in the case, beginning in December 2015, Harris engaged in a relationship with a minor, Jane Doe 1 using Skout, an online dating application. Harris persuaded, induced, and enticed Jane Doe 1 and another 13-year-old female, Jane Doe 2 to engage in sexual activity.
On January 2, 2016 Harris acknowledged in a message that he knew both girls were “underage and I could get in really big trouble and that would ruin my life.” In the early morning hours of January 2, 2016 Harris traveled to Abilene and picked up the two 13-year-old females and transported them to his residence in Fort Worth to engage in sexual activity. The two juvenile females were recovered by law enforcement at Harris’ residence on January 9, 2016 after Harris had called the Fort Worth police.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), San Angelo Police Department, Abilene Police Department and Fort Worth Police Department are conducting the investigation. Assistant U.S. Attorney Juanita Fielden is in charge of the prosecution.
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Former Springfield Man Pleads Guilty, Sentenced for Defacing Islamic CenterRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Springfield, Mo., man has pleaded guilty and been sentenced in federal court for defacing The Islamic Center of Springfield with graffiti.
Joshua Daniel Lobsien, 24, of Orland, Calif., formerly of Springfield, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Tuesday, July 12, 2016, to a federal information that charges him with defacing religious property.
The court sentenced Lobsien to five years of probation, including 20 hours of community service, and ordered him to pay $5,220 in restitution. If the Islamic Center of Springfield, or an Islamic Center located near Lobsien’s residence, is willing to have him perform his community service on its premises, then that is the location where Lobsien should perform his community service. Lobsien has personally apologized to the leadership of the Islamic Center of Springfield for his crime.
By pleading guilty, Lobsien admitted that he and Adam David Smock, 24, of Edgewater, Calif., formerly of Springfield, and a minor who was 14 years of age, spray painted graffiti on the exterior walls of the Islamic Center of Springfield on Jan. 7, 2011. The graffiti included explicit and offensive language in addition to such statements as “Queer insurrection,” “It’s okay to be gay!” “Bash Back,” “Now is our time!” and “You bash us in Pakistan we bash here.” Both Lobsien and Smock were 18 years old at the time of the offense.
The Islamic Center of Springfield, 2151 E. Division St., provides services common to most religious establishments, including regular prayer service, a venue for individuals to pray on their own, community activities and a forum for charitable fund-raising.
Lobsien also admitted that on April 10, 2011, they partially burned two copies of the Qur’an (the Muslim holy book) and transported the Qur’ans to the Islamic Center of Springfield. Smock left the burned Qur’ans directly in front of the main doors to the Islamic Center, approximately 30 feet away from the building. Lobsien left a computer-printed note on the mat in front of the main doors. The note contained the image of a goat’s or ram’s head, and the following text:
“To: Sincere Followers of Allah,
“Today, we show the Muslim Nation that its oppressive religion won't go without a fight, not from soldiers, but from average citizens willing to fight for America – for there are three (sic) burned Qur'ans that lay spread in the driveway. For we grow tired of Anti-Zionism. The Islamification of Europe. Terroristic regimes. And worst of all, the membership of 1.5 billion Muslims that stain the earth. And we vow one thing: Islam will not survive.
“Death to Islam!”
Smock pleaded guilty on Dec. 29, 2015, to participating in a conspiracy to oppress, threaten, and intimidate worshippers at the Islamic Center of Springfield in the free exercise and enjoyment of their Constitutional right to the free exercise of their religious beliefs. A sentencing hearing is scheduled on Aug. 18, 2016.
Smock admitted that it was his idea to commit the acts and that he persuaded his co-conspirators to participate. Smock admitted that he selected the Islamic Center of Springfield for vandalism because of the religious nature of the property, in order to threaten and intimidate worshippers, so as to hinder and interfere with the worshippers’ enjoyment of their Constitutional right to the free exercise of religion.
The total cost of restoration and repair of the damage to the Islamic Center of Springfield, including sandblasting and applying anti-graffiti paint, is $15,662
Under the terms of Smock’s plea agreement, a joint recommendation will be made to the court that Smock be incarcerated for 14 days, followed by a five-year term of supervised release; that Smock must pay $10,440 in restitution; and that Smock must perform 40 hours of community service. If the Islamic Center of Springfield, or an Islamic Center located near Smock’s residence, is willing to have him perform his community service on its premises, then that is the location where Smock should perform his community service. Smock must meet with and personally apologize to the leadership of the Islamic Center of Springfield for his crime.
These cases are being prosecuted by Assistant U.S. Attorney Randall D. Eggert. They were investigated by the FBI and the Springfield, Mo., Police Department.
Former Pike County Man Pleads Guilty to False Bankruptcy DeclarationsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Pike County resident has pleaded guilty to making false declarations and false oaths in bankruptcy proceedings.
According to United States Attorney Peter Smith, Daniel Wise, age 55, formerly of Tafton, Pennsylvania, currently residing in New York, NY, was indicted by a federal grand jury in October 2015 for concealing bankruptcy assets, false bankruptcy declarations, and false bankruptcy oaths.
Wise filed three bankruptcy petitions in the Middle District of Pennsylvania between August 14 and November 21, 2012. The October 14, 2015 Indictment alleged that Wise intentionally failed to reveal his ownership of a $2.4 million promissory note and that he was actively engaged in litigation over the note in New York, on disclosures that he was required to make in his bankruptcy petitions.
In a proceeding before U.S. District Court Judge James M. Munley in Scranton, Wise pleaded guilty today to making false bankruptcy declarations in connection with the bankruptcy petition Wise filed on November 21, 2012, and making false sworn declarations during a January 14, 2013, creditors’ meeting, pursuant to a plea agreement with the government.
At the time of Wise’s first bankruptcy filing, foreclosure proceedings had been initiated against Wise’s Tafton residence in the Pike County Court of Common Pleas. Wise’s bankruptcy filings resulted in automatic stays of all debt collection proceedings, including the mortgage foreclosure action. Wise’s bankruptcy petitions were eventually dismissed on March 13, 2013.
Wise could be sentenced to 5 years imprisonment and a $100,000 fine on each count. No date has been set for sentencing pending preparation of a pre-sentence report
The case was investigated by the Scranton Office of the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Philadelphia Police Officer Pleads Guilty to ExtortionRead the Press Release
PHILADELPHIA - Thomas Vitanovitz, 32, of Philadelphia, PA, plead guilty today to extortion of an alleged drug dealer while working as a Philadelphia Police Officer, announced United States Attorney Zane David Memeger.
Vitanovotz while employed as a Philadelphia Police Officer assigned to the 24th District, seized 50 pills that Vitanovitz believed to be a controlled substance from an individual identified in the indictment as Person 1, under the color of official right.
Vitanovitz faces a statutory maximum sentence of 20 years in prison, a possible fine, supervised release, and a $100 special assessment. The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police
Department and is being prosecuted by Assistant United States Attorney Arlene Fisk.
Former Letter Carrier Sentenced to Federal Prison for Heroin Distribution ConspiracyRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced former U.S. Postal Service employee Linwood R. Nelson, Jr., age 32, of Baltimore, today to 30 months in prison, followed by three years of supervised release, for federal charges related to a conspiracy to possess with the intent to distribute heroin, and to diverting packages of drugs sent through the U.S. mail and delivering them to co-conspirators
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to Nelson’s plea agreement, he was a letter carrier employed by the United States Postal Service and assigned a delivery route in Woodstock, Maryland. From July 2014, through September 11, 2014, Nelson agreed to divert U.S. mail parcels containing drugs, including heroin, from his regular delivery route and deliver those packages directly to various co-conspirators.
Nelson provided co-conspirators with an address along his route and instructed them to send parcels to this address, but to use false addressee names on each parcel. Co-conspirators regularly communicated with Nelson via telephone and text message to provide descriptions of the parcels sent, including the colors of the mailed boxes and the false addressee names used. Nelson then used the information to remove the parcels from his delivery batches, falsely scan them as “delivered” in the U.S. Postal Service computer tracking system, and then bring them to co-conspirators at an agreed-upon location. Nelson received cash in exchange for delivering the parcels, typically $500 per parcel.
On September 11, 2014, Nelson was arrested in possession of a package containing approximately two kilograms of heroin. When arrested, he was on his way to meet with a co-conspirator at a pre-determined location, where Nelson was to provide the parcel containing heroin to the co-conspirator in exchange for cash.
Nelson admitted that during the course of the conspiracy the conspirators distributed more than one kilogram of heroin.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Inspection Service, DEA, and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick and Joshua T. Ferrentino, who prosecuted the case.
Former Fultonville Resident Sentenced to 18 Months for Environmental Fraud SchemeRead the Press Release
SYRACUSE, NEW YORK - David L. Frisby, age 65, of Kiln, Mississippi, was sentenced today to 18 months in prison for defrauding scrap metal brokerage firms out of more than $144,000.
The announcement was made by United States Attorney Richard S. Hartunian; Vernesa Jones-Allen, Special Agent in Charge of the Environmental Protection Agency (EPA) Criminal Investigations Division, and EPA Office of Inspector General Special Agent in Charge Thomas Muskett.
The sentence was imposed by Chief United States District Judge Glenn T. Suddaby. In addition to the term of imprisonment, Frisby was ordered to pay $144,216 in restitution to his victims.
Frisby, formerly of Fultonville, New York, pled guilty on December 10, 2015 to one count of conspiracy to commit wire fraud in connection with a scheme in which he and others entered into contracts for the disposal of batteries and other metal waste under false pretenses. As part of his plea agreement, Frisby admitted that he and his co-conspirators falsely held themselves out to be representatives of a scrap metal recycling firm that was authorized by the EPA to dispose of metal waste by shipping it to Korea, and that they defrauded businesses and individuals by charging them for recycling services that were never provided. In reality, Frisby and his co-conspirators were not authorized by the EPA to provide scrap metal recycling services and never intended to provide such services.
To further the scheme, Frisby, who formerly served as the Chief Executive Officer of D & L Heritage Enterprises, Inc., provided his co-conspirators with D & L Heritage incorporation documents that were fraudulently altered and e-mailed to victims. Victims transferred money to bank accounts maintained by Frisby, who retained a portion of the funds for his personal benefit and transferred the remainder to his co-conspirators overseas.
The case was investigated by the EPA Criminal Investigations Division and the EPA Office of the Inspector General. The case was prosecuted by Assistant United States Attorney Sean O’Dowd.
Former Employee of Health Insurance Company Sentenced for Possessing More Than 50 Customers’ Identities that she Stole from her EmployerRead the Press Release
Some of the victims’ information was used to file false tax returns with the IRS
A former health insurance company employee was sentenced to 32 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $16,264 for possessing more than 50 customers’ identities that she stole from her employer.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Tony Pustizzi, Chief, Coral Springs Police Department (CSPD), made the announcement.
Quinzella J. Romer, 39, previously pled guilty to one count of possession of fifteen or more unauthorized access devices (social security numbers) issued to other persons, in violation of Title 18, United States Code, Sections 1029(a)(3) and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, on April 8, 2014, CSPD officers conducted a traffic stop of a vehicle that Romer was driving. During this traffic stop, officers determined that Romer had an outstanding arrest warrant for petit theft. A pat down was conducted of Romer’s person, and law enforcement found a Florida driver’s license in another person’s name and a cellular phone. After obtaining a search warrant, law enforcement searched Romer's cellular phone where they found over 20 screenshots containing more than 50 names, Social Security numbers, and dates of birth of health insurance customers.
Romer was employed as a Short-Term Disability Benefit Manager at a health insurance company from June 18, 2007 until August 23, 2013, and it was determined that the screenshots were taken from her work station at the company.
Further investigation revealed that 12 of the names and social security numbers found in Romer's phone were victims of tax-related identity theft for tax year 2013. The tax returns claimed refunds of $38,196, and the IRS actually paid $16,264.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Coral Springs Police Department. The case is being prosecuted by Assistant U.S. Attorney Cary O. Aronovitz.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. 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.
Former Colfax County Sheriff’s Deputy Pleads Guilty to Federal Drug Trafficking and Theft of Government Property ChargesRead the Press Release
ALBUQUERQUE – Vidal Sandoval, 46, of Cimarron, N.M., pleaded guilty this morning to a superseding indictment charging him with drug trafficking and theft of government property charges. Sandoval was a Deputy of the Colfax County Sheriff’s Department at the time he committed the crimes. The guilty plea was entered without the benefit of a plea agreement.
In announcing the guilty plea, U.S. Attorney Damon P. Martinez said, “The people of New Mexico must be able to have trust in their law enforcement officials. This case sends a powerful message to the people of Colfax County and all New Mexico residents that the FBI, New Mexico State Police and U.S. Attorney’s Office are vigilant about aggressively rooting out law enforcement corruption and giving New Mexicans confidence that those in uniform will serve them with honesty and integrity.”
“The vast majority of law enforcement officers perform their jobs with integrity and sometimes even heroically, as recent headlines have shown. But when one of them turns bad and endangers the public safety he swore to protect, the FBI and our partners will make sure he is brought to justice,” said Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division. “I would like to thank the FBI Special Agents and professional support staff who worked on this case, as well as the New Mexico State Police and Colfax County Sheriff's Office for their assistance.”
“This case reinforces to those that choose to break the law, that they will suffer the consequences,” said Chief Pete Kassetas of the New Mexico State Police. “When an officer is the one committing crimes, it reflects negatively on all law enforcement officers and it is unacceptable. The cooperation was outstanding and I cannot express my gratitude enough to all the agencies involved. Together, we have made a difference in our state.”
The FBI and the New Mexico State Police arrested Sandoval on March 13, 2015, on an indictment charging him with aiding and abetting an attempt to possess cocaine with intent to distribute in Colfax County, N.M., on Feb. 28, 2015. The indictment included forfeiture provisions seeking a money judgment in the amount of $17,500, the proceeds Sandoval obtained through his unlawful conduct. The indictment was superseded on April 14, 2015, to add two theft of government property offenses charging Sandoval with stealing money belonging to the FBI on Dec. 15, 2014, and Jan. 25, 2015.
During today’s change of plea hearing, the United States made the following proffer regarding the evidence it would have presented if the case had proceeded to trial:
Sandoval was employed as a deputy sheriff by the Colfax County Sheriff’s Department between Dec. 2014 and Feb. 2015, during which time he received training on how to properly handle evidence. Sandoval knew that he was forbidden to keep money and other property he seized while executing his official duties.
While on duty on Dec. 15, 2014, Sandoval stole money from two motorists whom he believed to be drug traffickers transporting the proceeds from the sale of illegal drugs. After Sandoval found $8,000 in cash in the motorists’ vehicle during a traffic stop, he called Leon Herrera and enlisted him to tell the motorists that he (Herrera) was a law enforcement officer. At the conclusion of the traffic stop, Sandoval retained $7,500 for his personal use and did not turn it into the Colfax County Sheriff’s Department; he returned $500 to the motorists. Sandoval later learned that the cash belonged to the FBI and that the two motorists whom he suspected of being drug traffickers were actually undercover officers.
On Feb. 28, 2015, Sandoval accepted $10,000 in cash to escort a load of illegal drugs through Colfax County into Colorado. Sandoval traveled to Wagon Mound, N.M., in his patrol car and while wearing his uniform, where he met a motorist whom he believed to be a drug trafficker. Sandoval accepted $5,000 from the motorist. During their conversation, the motorist displayed a box containing cocaine and Sandoval understood that the motorist was going to Colorado with the intention of selling the cocaine. After instructing the motorist to drive a few car lengths behind him, Sandoval drove through Colfax County and into Colorado, where he again met with the motorist and received another $5,000. Sandoval retained the $10,000 for his personal use instead of turning it into the Colfax County Sheriff’s Department. Sandoval later learned that the $10,000 belonged to the FBI and that the motorist whom he suspected of being a drug trafficker was actually an undercover officer. Sandoval also learned that the box displayed by the undercover officer contained two kilograms of cocaine and three kilograms of “sham” cocaine
At sentencing, Sandoval faces a statutory mandatory minimum of five years and a maximum of 40 years in prison on the drug trafficking charge and a statutory maximum penalty of ten years in prison on each of the two theft of government property charges. His sentencing hearing has not been scheduled.
Herrera, Sandoval’s cohort, was charged in a separate case with falsely impersonating a federal officer. Herrera entered a guilty plea to that charge on Oct. 16, 2015 and was sentenced on Feb. 4, 2016 to a year of probation and was ordered to perform 250 hours of community service.
The two cases were investigated by the Santa Fe and Albuquerque offices of the FBI and the New Mexico State Police with assistance from the Colfax County Sheriff’s Department. Assistant U.S. Attorney Sean J. Sullivan is the prosecutor for both cases.
Former Atkinson Man Sentenced for Tax Evasion Stemming from Wire Fraud SchemeRead the Press Release
CONCORD, N.H. – William M. Richmond, 60, formerly of Atkinson, New Hampshire, was sentenced to 24 months in prison for tax evasion, reports United States Attorney Emily Gray Rice.
In 2006 through 2008 Richmond failed to report and pay taxes on more than $743,000 he stole through a wire fraud scheme. From about May 18, 2005, through about April 2009, Richmond held a durable power of attorney for Richard Piller. The power of attorney gave Richmond unrestricted access to Piller’s finances. Richmond was supposed to manage Piller’s personal and business affairs while Piller and his then-wife, Joan Ettelson, were out of the country for extended periods. Richmond used the power of attorney to commit a wire fraud scheme through which he stole more than $743,000 from Piller and Ettelson. Richmond failed to disclose that criminally derived income on his tax returns for 2006, 2007, and 2008, and he failed to list the substantial additional taxes he owed for each year based on that income. Instead, Richmond falsely claimed that his only income was taxable interest and that he owed no taxes for each of the three years.
Richmond pleaded guilty to three counts of tax evasion on July 17, 2015.
In addition to a two-year prison sentence, Richmond was ordered to pay $743,171.59 in restitution to Piller and Ettelson.
This case was investigated by special agents of the FBI and the IRS – Criminal Investigation. It was prosecuted by Assistant United States Attorney Mark S. Zuckerman.
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Former Army Official and Contractor Indicted for Bribery Scheme Involving Contracts at Aberdeen Proving GroundRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted John Kays, age 42, of Bel Air, Maryland, and Matthew Barrow, age 42, of Toledo, Ohio, on conspiracy and bribery charges related to contracting at the U.S. Army Communications-Electronics Command headquartered at Aberdeen Proving Ground (APG), in Harford County, Maryland. The indictment was returned on June 21, 2016, and unsealed on June 24, 2016. Kays and Barrow had initial appearances last week in U.S. District Court in Baltimore, and were each released under the supervision of U.S. Pretrial Services. No trial date has been set.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge L. Scott Moreland, Mid-Atlantic Fraud Field Office, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command.
In March 2006, the U.S. Army Contracting Command at APG awarded a 10-year, $19.2 billion contract to seven prime contractors to provide technology services to support the integrated engineering, business operations, and logistics needs for the Army. Kays had a number of leadership positions related to this contract. In April 2011, a task order for services pursuant to the contract was placed.
According to the three count indictment, Kays was a civilian employee of the Army, who represented the Army on these types of multi-year contracts. From January 2011 until his resignation from government service in July 2014, Kays held the position of Deputy Project Manager for Mission Command, in effect the number two position for Mission Command. Barrow was the President and owner of MJ-6, LLC, a company which he and his wife formed in Ohio in 2008 to obtain military subcontracts.
The indictment alleges that from December 2010 to June 2014, Kays agreed to take official actions favorable to Barrow and MJ-6 in return for Barrow paying Kays a total of approximately $157,000. Specifically, Kays used his official position to add MJ–6 as a subcontractor acceptable to the Army and suggested to prime contractors that MJ-6 be added as a subcontractor on the TO. Barrow allegedly withdrew cash from his personal accounts and from MJ-6 accounts, then traveled from his home in Toledo to Maryland, to deliver cash payments to Kays. To conceal their relationship, Barrow made all the payments to Kays in cash, withdrawing the money in amounts less than $10,000 to avoid bank reporting requirements, and Kays did not report the receipt of the cash on the government ethics forms that he was required to file. Kays used the cash for his personal benefit, including: purchasing two new vehicles; and to pay credit card bills.
Kays and Barrow each face a maximum sentence of five years in prison for conspiracy, and a maximum of 15 years in prison for bribery, $250,000 per count in criminal fines or three times the value of whatever Kays was illegally paid, plus forfeiture of the proceeds of the offense. The court has entered an order restraining assets of Kays in Harford County including real estate, a Nissan Armada, a 2012 BMW, a 2012 Yamaha power boat and a pair of diamond earrings. An order has also been entered restraining the assets of Barrow in Toledo, including, two pieces of real estate, a 2016 GMC Yukon, 2015 Buick Enclave, a 2011 GMC Yukon Denali, a power boat, a Wave Runner and funds in three bank accounts.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys= Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein thanked the FBI, DCIS, and Army Criminal Investigation Command for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Joyce K. McDonald, who is prosecuting the case.
Florida Keys Residents Plead Guilty to Illegally Trafficking in Marine LifeRead the Press Release
On July 11, 2016, two residents of the Florida Keys pled guilty to illegally trafficking in marine life.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tracey Dunn, Assistant Director, NOAA Fisheries Office of Law Enforcement, and David Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service, Office of Law Enforcement, Miami Area, made the announcement.
Leah Gould, 51, and Phillip Gould, 57, of Big Pine Key, Florida, pled guilty to conspiring with others to commit certain offenses against the United States, that is conspiracy to transport, sell, receive, acquire, and purchase any fish and wildlife, that is juvenile bonnethead sharks (Sphyrna tiburo), with a fair market value in excess of $350.00, and attempt to do the same, knowing that said fish were taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida, in violation of Title 16, United States Code, Sections 3372(a)(2)(A), 3372(a)(4)and 3373(d)(1) and (2), all in violation of Title 18, United States Code, Section 371. The defendants each face possible sentences of up to 5 years’ imprisonment, a term of supervised release of up to three years, and a criminal fine of up to $250,000. United States District Judge Jose E. Martinez, who accepted the guilty pleas, set sentencing for the defendants for October 3, 2016 at 2:30 p.m., in the Sidney M. Aronovitz Federal Courthouse in Key West.
According to the court record, including the indictment, a joint factual statement, and the defendants’ admissions during court hearings, at the relevant times, Leah Gould and Phillip Gould were residents of Monroe County, Florida and owned and operated Florida Keys Marine Life, LLC. (FKML), a Florida corporation with its principal place of business on Big Pine Key, Florida. FKML was engaged in the wholesale marketing of ornamental fish and live rock. Over the period extending from at May 2012 through August 2012, the Goulds engaged in the purchase and sale of bonnethead sharks (Sphyrna tiburo) through FKML. The Goulds negotiated for and received the sharks from an unlicensed harvester in the Florida Keys. At no time did the harvester, directly or as a third party contractor, possess or hold any State of Florida special activities license to collect, harvest, or transport any shark species, nor did he possess and hold a valid federal annual vessel permit for sharks issued pursuant to 50 C.F.R. 635.4 to harvest, collect, or take shark species as required by the laws of the State of Florida.
The Indictment also charged that the harvested bonnethead sharks were taken from the waters of the Key Deer National Wildlife Refuge, and subsequently shipped by the Goulds in interstate commerce by a variety of means, including rental truck and as commercial air cargo.
The Indictment and joint factual statement, in a series of “overt acts”, describes multiple instances when specific numbers of sharks were harvested, the transfer of the sharks from the harvester to the FKML commercial marine life facility on Big Pine Key, and specific payments received by the harvested for sharks sold in interstate commerce. The Goulds also admitted that in August 2012, Phillip Gould personally transported four bonnethead sharks by rental truck to St. Louis, Missouri where they were transferred to the St. Louis Zoo, in a sale set up by a middle-man located in Las Vegas, Nevada, and that in November 2012, Leah Gould negotiated the sale of four bonnethead sharks in interstate commerce to a customer located in Atlanta, Georgia. In Court, the government revealed that the transaction had been recorded by government agents.
Mr. Ferrer commended the joint investigative efforts of NOAA Office of Law Enforcement and the local and Atlanta-area Fish & Wildlife Service Office of Law Enforcement who participated in the long-term investigation into the illegal harvesting and sale of marine life resources from the Florida Keys known as Operation Rock Bottom, and noted the assistance of Refuge Officers from the Florida Keys National Wildlife Refuges and the U.S. Customs and Border Protection Air Marine Branch in the development of the case. This matter is being prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes.
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
Federal and State Authorities Arrest Sureños Gang Member and AssociateRead the Press Release
This morning, federal, state and local authorities arrested a Sureños gang member and an associate charged in connection with methamphetamine trafficking in El Paso announced United States Attorney Richard L. Durbin, Jr., 34th Judicial District Attorney Jaime Esparza, Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, and El Paso Police Chief Greg Allen.
A federal grand jury indictment unsealed this afternoon in El Paso charges 29–year-old Sureños member Carlos Dorado (aka “Chapo”) of Anthony, NM, and 37–year-old Sureños associate Melissa Alonso (aka “Poison Ivy”) of El Paso. with one count of conspiracy to distribute methamphetamine and two counts of possession with intent to distribute methamphetamine. According to the indictment, the defendants conspired to distribute methamphetamine throughout the El Paso area from October 2014 through June 2015.
Upon conviction, Dorado faces between ten years and life in federal prison; Alonso, up to 20 years in prison.
In addition to Dorado and Alonso, state authorities have filed charges against Sureños members Terry Alvarado (aka “Smokey”), age 25, of El Paso, and Mario Ramiro Rodriguez (aka “Rukus”), age 33, of El Paso, in connection with this investigation. Alvarado and Rodriguez are both charged with engaging in organized criminal activity; and, manufacture and delivery of a controlled substance. Engaging in organized criminal activity and manufacture and delivery of a controlled substance are both 1st degree felonies which call for between five and 99 years imprisonment upon conviction. Rodriguez is currently in state custody on an unrelated charge; Alvarado is considered a fugitive.
Today’s arrests mark the end of a two-year-investigation into drug trafficking by Sureños gang members in the El Paso area. To date, this investigation has resulted in the convictions of more than 25 defendants and the seizure of more than ten pounds of “crystal” methamphetamine; over four gallons of liquid methamphetamine; and, approximately 19 firearms.
This investigation was conducted by the Safe Streets Task Force in El Paso comprised of FBI, DEA, El Paso Police Department, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Marshals Service, U.S. Customs and Border Protections, Texas Department of Public Safety, El Paso County Sheriff’s Office, Texas Alcohol Beverage Commission and the El Paso Independent School District Police Department.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Eunice man pleads guilty to sexually exploiting a minorRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Eunice man pleaded guilty Tuesday to convincing a minor girl to send him sexually explicit pictures.
Adam Shilow, 35, of Eunice, La., pleaded guilty before U.S. Magistrate Judge Patrick Hanna to one count of receiving material involving the sexual exploitation of a minor. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to the guilty plea, starting in October of 2013, Shilow contacted a 12-year-old female using an internet-based communication application. He portrayed his identity as a juvenile male with his same name. They exchanged sexually explicit pictures of each other in November of 2013. The juvenile’s mother notified law enforcement of Shilow’s activities after noticing an inappropriate message on her daughter’s phone on November 15, 2013.
Shilow faces 15 to 40 years in prison, five years to life of supervised release and a $250,000 fine. He is also required to register as a sex offender. A sentencing date was not set.
Homeland Security Investigations, the Louisiana Attorney General’s Office and the Nassau County of New York Police Department investigated the case. Assistant U.S. Attorney Myers P. Namie is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be submitted anonymously.
District Man Sentenced to More Than 10 Years in Prison for Broad Daylight Armed Robbery of Barber ShopRead the Press Release
WASHINGTON – Jarred Thomas, 19, of Washington, D.C., was sentenced today to a prison term of 121 months on charges stemming from a broad daylight armed robbery last year at a barber shop in Southeast Washington, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Thomas pled guilty in May 2016, in the U.S. District Court for the District of Columbia, to one count of interference with interstate commerce by robbery, one count of using, carrying, and possessing a firearm in furtherance of a crime of violence, and one count of unauthorized use of a vehicle. He was sentenced by the Honorable Rosemary M. Collyer. Upon completion of his prison term, Thomas will be placed on four years of supervised release.
According to the government’s evidence, on Sept. 23, 2015, at approximately noontime, Thomas and his accomplice entered the “Like That 2” barbershop in the 3300 block of Stanton Road SE, while wearing masks and brandishing loaded firearms. At gunpoint, Thomas ordered everyone to the ground and demanded that they hand over their money. Numerous victims were robbed at gunpoint of cash and their possessions, including four barbers and four customers. A four-year-old child also was in the shop at the time of the robbery.
After the robbery, Thomas was observed leaving the area in a black Infinity SUV. Thomas was subsequently apprehended by the Metropolitan Police Department three blocks from the barber shop and a firearm was recovered in his flight path. The black Infinity SUV used by Thomas was located and identified as having been stolen in a separate armed robbery eight days earlier.
At the time of his arrest, Thomas was on probation following a 2015 conviction in the Superior Court of the District of Columbia for attempted robbery.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Chief Lanier commended the work of those who investigated the case from the Violent Crime Task Force of the FBI’s Washington Field Office and from the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Candace Battle, and Assistant U.S. Attorney Christopher Macchiaroli, of the Violent Crimes and Narcotics Trafficking Section, who prosecuted the matter.