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Wednesday 18 May 2016
Athol Man Indicted for False Claim and StatementRead the Press Release
United States Attorney Randolph J. Seiler announced that an Athol, South Dakota, man has been indicted by a federal grand jury for False Claim and False Statement.
Jason Sparling, age 42, was indicted on April 19, 2016, and appeared before U.S. Magistrate Judge Daneta Wollmann on May 13, 2016. He pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 5 years of imprisonment, a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Sparling submitting a false claim to the Livestock Forage Disaster Program for the loss of grazing land.
The charges are merely an accusation and Sparling is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Office of Inspector General, U.S. Department of Agriculture. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Sparling was released pending trial. A trial date has not been set.
Ashland Man Sentenced to 15 Years for MethRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Ashland, Mo., man was sentenced in federal court today for possessing methamphetamine with the intent to distribute.
Jeremy Michael Traxler, 35, of Ashland, was sentenced by U.S. District Judge Brian C. Wimes to 15 years and eight months in federal prison without parole. Traxler was sentenced as a career offender.
On April 27, 2015, Traxler pleaded guilty to possessing methamphetamine with the intent to distribute.
According to court documents, law enforcement officers encountered Traxler while executing a search warrant at a residence in New Bloomfield, Mo. Traxler had brought a safe containing 49.5 grams of pure methamphetamine into the residence.
Traxler has been convicted of multiple drug possession and drug trafficking offenses. Traxler has also been convicted of multiple instances of driving while revoked (felony), receiving stolen property (felony), unlawful use of a weapon, tampering (felony), resisting arrest (felony) and driving while intoxicated. At no time over the past 13 years has Traxler been free from either pre-trial or probation supervision when not serving a prison sentence.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration and the MUSTANG Task Force.
Alton Man Indicted for Distribution and Receipt of Child PornographyRead the Press Release
A federal grand jury sitting in East St. Louis has indicted Michael E. Myers, 60, of Alton, Illinois, for Distribution of Child Pornography and Receipt of Child Pornography, James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today. After a detention hearing, Myers was held without bond pending trial.
The two offenses charged in the indictment allege that between March 24, 2016, and March 29, 2016, Myers knowingly distributed and received videos and images containing child pornography using a facility of interstate commerce.
A trial date has not yet been set. If convicted of Distribution and/or Receipt of Child Pornography, Myers faces a term of imprisonment of not less than fifteen (15) years up to forty (40) years, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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."
This investigation was conducted by the Madison County Sheriff’s Department. The case is assigned to Assistant United States Attorney Christopher Hoell.
An Indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Alcoholic Beverage Rebate Scam Shut DownRead the Press Release
Retired Ironwood Area School District Employee Convicted of Mail Fraud
MARQUETTE, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr., announced today the conviction and sentencing of Ms. Carol Rae Vitton, age 59, and a resident of Ironwood, Michigan, on charges of mail fraud.
Ms. Vitton, now a retired employee of the Ironwood Area School District with no prior criminal history, came to the attention of U.S. Postal Inspectors when employees at the Ironwood Post Office noticed that she was receiving an inordinate number of rebate checks through the mail, and that these checks were addressed to variants of Ms. Vitton’s name and address. Upon investigation, Postal Inspectors determined that Ms. Vitton picked up rebate coupons at liquor stores throughout the Ironwood area, and then manufactured counterfeit sales receipts that falsely and fraudulently indicated that she had made beer, wine and liquor purchases. She would then mail those counterfeit sales receipts along with the rebate applications to beer, wine and liquor companies, and associated rebate processing companies throughout the country.
During 2010 and 2011, Ms. Vitton manufactured and mailed more than 700 counterfeit sales receipts for beer, wine and liquor purchases that had not actually taken place. She was still an employee of the Ironwood Area School District at that time. Ms. Vitton received through the mail over $8,000 in the form of rebate payments that she was not entitled to receive. Inspectors discovered that some of these rebate checks were addressed to Ms. Vitton at the Ironwood Area School District Offices. At least 26 beer, wine, liquor and rebate processing companies were victimized and defrauded in this manner. Ms. Vitton’s rebate scheme constituted mail fraud, which is a felony violation of federal law and punishable by up to 20 years in prison.
U.S. District Judge R. Allan Edgar sentenced Ms. Vitton to: one year Probation, with four months of home detention; electronic monitoring while on home detention; restitution in the amount of $8,339.50; a $10,000.00 fine payable within 60 days and; a special assessment of $100.00.The U.S. Postal Inspection Service, which was founded by Benjamin Franklin, is tasked with enforcing the laws that defend the nation’s mail system from illegal or dangerous use, and ensuring public trust in the mail. U.S. Postal Inspectors routinely investigate a variety of frauds that are perpetrated through the use of the mails. In recent years, Inspectors have seen an increasing number of rebate fraud schemes, like the scheme carried out by Ms. Vitton, throughout the country.
END
Albuquerque Residents Arrested on Federal Heroin and Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Two residents of Albuquerque, N.M., made their initial appearances today in federal court on a criminal complaint charging them with heroin and methamphetamine trafficking offenses. Joshua Greene, 18, and Kayleb Reyos, 21, remain in custody pending preliminary hearings and detention hearings scheduled for May 19, 2016.
Greene and Reyos were arrested yesterday as the result of a DEA investigation into heroin and methamphetamine trafficking in northwest Albuquerque. The complaint alleges that Greene and Reyos sold an aggregate of 36 ounces (2.25 pounds) of heroin and 3 ounces (.18 pounds) of methamphetamine to undercover law enforcement agents during a series of transactions occurring between Feb. 4, 2016 and May 4, 2016. The two men were arrested when the DEA executed a federal search warrant at their residence in northwest Albuquerque. During the search, the DEA allegedly seized an additional pound of heroin, bulk amounts of cash, a handgun, and drug paraphernalia.
If convicted of the charges in the criminal complaint, Greene and Reyos each face a statutory mandatory minimum of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Kristopher Houghton is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, Bernalillo County Commissioner Maggie Hart Stebbins, Albuquerque City Councilor Diane Gibson, 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.
Albuquerque Felon Facing New Federal Firearms ChargeRead the Press Release
ALBUQUERQUE – Nathan Jensen, 33, of Albuquerque, N.M., made his initial appearance today in federal court in Albuquerque, N.M., on a criminal complaint charging him with being a felon in possession of a firearm and ammunition. Court records indicate that Jensen allegedly committed the offense while on supervised release from a prior federal conviction for being a felon in possession of a firearm. Jensen remains in custody pending a preliminary and detention hearing, both of which are scheduled for Friday.
Court records reflect that the court issued a warrant for Jensen’s arrest on May 4, 2016, based on a petition filed by the U.S. Probation Office to revoke his supervised release. The petition alleges that Jensen had been released from the custody of the U.S. Bureau of Prison on April 25, 2016, after completing an 84-month prison sentence, with directions to report to his probation officer and a half-way house at which he was to reside for up to six-months. Jensen allegedly failed to report either to his probation officer or to the halfway house. The U.S. Marshals Service’s Southwest Investigative Fugitive Team (USMS-SWIFT) arrested Jensen on the warrant on May 16, 2016, and Jensen made his initial appearance in federal court on the supervised release petition yesterday.
Yesterday the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) arrested Jensen on a criminal complaint charging Jensen with unlawfully possessing a firearm and ammunition in Bernalillo County, N.M., on May 16, 2016, when he was arrested by the USMS-SWIFT. According to the criminal complaint, Jensen was prohibited from possessing firearms or ammunition because he previously had been convicted of several felony offenses in the state courts of New Mexico in addition to his federal conviction for being a felon in possession of a firearm.
If convicted of the crime charged in the criminal complaint, Jensen faces a statutory maximum penalty of ten years in federal prison. If the court determines that Jensen is an armed career criminal, he faces a statutory mandatory minimum penalty of 15 years in prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of ATF and the USMS-SWIFT. Assistant U.S. Attorney Jacob Wishard is prosecuting the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Jensen Complaint
7th Street Gang Member Sentenced for His Role in Murder of Rival Gang MemberRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Esteban Ramos-Cruz, 29, of Buffalo, NY, who was convicted of racketeering conspiracy (RICO), was sentenced to 30 years by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that between 2000 and 2012, Cruz was a member of the Cheko’s Crew/7th Street Gang which was responsible for drug trafficking and violent crime on Buffalo’s West Side. During this time, as a part of the rivalry with the 10th Street Gang, the defendant shot and killed 10th Street Gang associate Eric Morrow on August 11, 2009. Cruz and co-defendant Jordan Hidalgo both shot at Morrow with Morrow being killed by the .22 caliber rifle discharged by Cruz. The defendant also sold illegal narcotics on Buffalo’s West Side.Cruz was one of 18 7th Street Gang members and associates indicted in this case. All 18 defendants have been convicted.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen, the New York State Police, under the direction of Major Steven Nigrelli, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division. The task force includes representatives of the Amherst Police Department, the Buffalo Police Department the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Erie County Sheriff’s Department, the Hamburg Police Department, the Niagara Frontier Transportation Authority Police, the New York State Police, the Town of Tonawanda Police Department, U.S. Border Patrol, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and U.S. Immigration and Customs Enforcement, Office of Enforcement & Removal Operations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
Tuesday 17 May 2016
West Carrollton Woman Sentenced to 66 Months in Prison in Million Dollar Embezzlement SchemeRead the Press Release
DAYTON – Amy Scarpelli, 49, of West Carrollton was sentenced to 66 months in prison for embezzling more than $1 million from U.S. Bank between 2011 and 2014.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Mark Porter, Special Agent in Charge, U.S. Secret Service, Miamisburg Police Chief John Sedlak, and members of the Southern Ohio Electronic and Financial Crimes Task Force, announced the sentence imposed today by United States District Judge Walter H. Rice.
Scarpelli pleaded guilty on April 22, 2015 to a bill of information charging her with one count of embezzling more than $1 million from U.S. Bank while serving as manager of the Miamisburg branch. According to court documents, Scarpelli admitted to making fraudulent draws against a line of credit for a local business that previously held accounts at U.S. Bank. She wrote and cashed checks, covering her tracks by making false entries in the bank’s computer system. Scarpelli structured the transactions in amounts less than $50,000 to avoid the need for approval by a second bank employee, in further efforts to prevent detection of her scheme.
Court documents showed that Scarpelli used the stolen funds to purchase four cars, six motorcycles, three boats, two travel trailers, and a golf cart, in addition to several real estate purchases, all of which were forfeited as part of her plea agreement.
Scarpelli was ordered to pay $5.2 million in restitution and she must serve five years on supervised release following her prison term. She will also be required to pay back taxes on the unreported income from her embezzlement scheme.
Acting U.S. Attorney Glassman commended the investigation of this case by Secret Service agents and Miamisburg police investigators, and Assistant United States Attorneys Sheila Lafferty and Brent Tabacchi, who prosecuted the case.
Wayne County Sex Offender Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Brandon West, 39, of Lyons, NY, pleaded guilty to possession of child pornography involving prepubescent minors before U.S. District Court Judge Elizabeth Wolford. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of 20 years, a $250,000 fine or both.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the investigation began when a child disclosed sexual contact by the defendant. Wayne County Child Protective Services contacted the New York State Police who began a criminal investigation. Upon learning that the defendant had child pornography on a cellphone and an online email account, State Police requested assistance from Homeland Security Investigations Cyber Crimes Unit. Federal investigators conducted field interviews and matched a sexually explicit photo recovered from the defendant’s cell phone to a local five year old child known to the defendant. In addition to several sexually explicit images of the five year old child, West also possessed more than 1,500 images of other children, many of whom were under the age of 12, being raped.In 2005, West was convicted in Wayne County of Sexual Abuse, First Degree, related to having sexual contact with an eight year old child. West is a Level II Sex Offender.
The plea is the culmination of an investigation by Investigators from the New York State Police, under the direction of Major Craig Hanesworth, and Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
West is scheduled to be sentenced on September 8, 2016 at 2:00 p.m. before Judge Wolford.
Washington State Man Sentenced for Filing over 1000 False Tax ReturnsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Maung No, 27, of Seattle, Washington, who was convicted of filing over 1000 false tax returns, was sentenced to 24 months in prison by U.S. District Court Judge Richard J. Arcara. The defendant was also ordered to pay restitution to the IRS in the amount of $2,323, 122.
Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that No was employed as a tax return preparer for VPS Income Tax in 2011 and BTC Income Tax in 2012. The fee charged for an income tax preparation was 10% percent of the tax refund amount plus bank fees. For the 2011 tax year, the defendant prepared returns for approximately 565 clients and claimed an education credit of $1,358, an American Opportunity Credit of $2,000 and a Federal Fuel Tax Credit of $183 on each return without the knowledge of the clients. No knew that the credits were false and that the clients were not entitled to claim such credits. As a result, clients received a larger federal income tax refund than they were entitled to, resulting in a loss of $3,543 to the Internal Revenue Service. The defendant continued to conduct similar actions for approximately 574 additional taxpayers resulting in a loss to the Internal Revenue Service of $1,129,319.
No also prepared tax returns for the 2012 tax year in the same fashion which resulted in a loss to the Internal Revenue Service totaling $1,202,803. The total number of fraudulent tax returns prepared by No was approximately 1,138 for a total loss to the IRS of $2,332,122.
The sentencing is the result of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge.
Virginia Men Sentenced for MisbrandingRead the Press Release
ABINGDON, VIRGINIA – Two of ten defendants convicted as being part of a drug conspiracy that operated in Southwest Virginia were sentenced today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced today.
Cecil McConnell III, 44, of Coeburn, Va., previously pled guilty to one count of misbranding a drug. Today in District Court, McConnell III was sentenced to 18 months in federal prison.
Cecil McConnell Jr., 69, of Dungannon, Va., was convicted following a jury trial of one count of conspiracy to distribute a controlled substance, three counts of distributing a controlled substance and one count of misbranding a drug. Today in District Court, McConnell Jr. was sentenced to 27 months in federal prison.
“These defendants, and others, distributed dangerous substances,” United States Attorney John P. Fishwick Jr. said today. “This case shows that the United States Attorney’s Office will work with our law enforcement partners to seek justice even in the most difficult of cases.”
The investigation of the case was conducted by the Virginia State Police, the Southwest Virginia Drug Task Force in Big Stone Gap, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Alachua County, Florida, Sheriff’s Office, the Wise County Sheriff’s Office and the Scott County Sheriff’s Office. Assistant United States Attorney Zachary Lee is prosecuting the case for the United States.
Two Special Police Officers Indicted by Grand Jury for Involuntary Manslaughter in Death of Hospital PatientRead the Press Release
UPDATE
The defendants in this case were acquitted of the charge on Feb. 2, 2018, following a trial in the Superior Court of the District of Columbia.
WASHINGTON – Two Special Police Officers were indicted today on a charge of involuntary manslaughter stemming from the death last fall of James McBride, a 74-year-old patient at MedStar Washington Hospital Center, announced U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Clifton Montgomery, 30, of Bladensburg, Md., and Charles Brown, 43, of Fort Washington, Md., were indicted by a grand jury in the Superior Court of the District of Columbia. They will be arraigned on a date to be scheduled by the Court. The charge carries a statutory maximum of 30 years in prison.
The indictment followed an investigation by the U.S. Attorney’s Office and the Metropolitan Police Department into the death of Mr. McBride, who walked out of the hospital on Irving Street NW at approximately 4:45 p.m. on Sept. 29, 2015, without being discharged. Mr. McBride ultimately had a fatal encounter with Special Police Officers Montgomery and Brown at about 5 p.m. outside of the hospital.
Mr. McBride died on Oct. 1, 2015. The District of Columbia Office of the Medical Examiner determined that the cause of death was blunt force injuries of the neck with cervical spinal cord transection and vertebral artery compression.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the indictment, U.S. Attorney Phillips and Chief Lanier commended the work of those who are investigating the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the District of Columbia Office of the Medical Examiner. They acknowledged the work of those handling the case at the U.S. Attorney’s Office, including Assistant U.S. Attorney Jean Sexton, Paralegal Specialist Kristy Penny, Legal Assistant Kaitlyn Krueger and Christopher Toms, and Victim/Witness Advocates Yvonne Bryant and Tracey Hawkins. Finally, they commended the efforts of Assistant U.S. Attorney Bridgette Tillman and S. Vinét Bryant, who are prosecuting the matter.
Use-of-force investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law. The Metropolitan Police Department’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.
Two Brothers Sentenced to Prison for Filing Fraudulent Tax Returns Seeking Refunds of over $224 MillionRead the Press Release
Defendants Received $16 Million in Refunds After Filing Bogus Tax Returns
Two brothers were sentenced to prison today in the U.S. District Court for the District of Maryland after pleading guilty in January for perpetrating a scheme in which they filed 46 fraudulent income tax returns seeking refunds in excess of $224 million, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation (IRS-CI), Washington, D.C. Field Office.
Sean Aude Gallman, 39, of Upper Marlboro, Maryland, was sentenced to serve 132 months in prison, followed by three years of supervised release. His brother Eric Maurice Gallman, 42, of Huntersville, North Carolina, was sentenced to serve 48 months in prison, followed by three years of supervised release. The Gallmans pleaded guilty on Jan. 19 to conspiracy to commit mail and wire fraud, mail fraud and conspiracy to commit money laundering. Sean Gallman also pleaded guilty to aggravated identity theft and money laundering charges. Sean and Eric Gallman were each ordered to pay restitution to the IRS in the amount of $16,512,492.
“The Gallman brothers engaged in a willful and deliberate scheme to steal from the U.S. Treasury and in turn, U.S. taxpayers,” said Acting Assistant Attorney General Ciraolo. “The Department will continue to aggressively investigate and prosecute individuals and entities engaged in this criminal conduct, and will seek substantial prison terms, fines and full restitution to hold defendants accountable and send a strong message to potential offenders.”
“These two criminals filed bogus tax returns claiming ‘refunds’ that were not owed, and stole over $16 million from the IRS,” said U.S. Attorney Rosenstein. “Federal agents and prosecutors have a duty to pursue perpetrators of such fraud schemes and try to recover money stolen from the U.S. Treasury.”
“Using the U.S. Treasury as a personal piggy bank to obtain millions of dollars in fraudulent refunds, the Gallmans not only showed their blatant disregard of the law, but also for the American taxpayer,” said Special Agent in Charge Jankowski. “Today’s sentencings emphasize that such greed based criminal behavior comes with a cost.”
According to evidence presented by the government, the Gallmans established trusts and business entities and used mailboxes at numerous private commercial postal carrier stores in Maryland and North Carolina as the addresses for the trusts and business entities. The defendants, acting as trustees and agents, mailed fraudulent tax returns to the IRS in the names of the trusts and businesses requesting refunds.
For example, in January 2013, Sean Gallman mailed to the IRS a fraudulent 2012 tax return in the name of the Gallman Charitable Trust, requesting a refund of $8,218,930. Also around this time, the defendants mailed to the IRS a fraudulent 2012 tax return in the name of LEA Group Holdings Trust, requesting a refund of $8,293,562. The defendants knew that the trusts were not entitled to the tax refunds. After receiving refund checks in these amounts, on Feb. 15 and March 11, 2013, the defendants deposited the funds into bank accounts they controlled. To hide their receipt of these refunds, the defendants used cashier’s checks and other financial instruments to transfer a portion of the money to third parties and other bank accounts.
Altogether, the Gallman brothers filed a total of approximately 46 fraudulent tax returns seeking refunds totaling $224,676,998, for which the IRS paid two refunds totaling $16,512,492.
In addition to the prison terms, U.S. District Judge Paul W. Grimm of the District of Maryland ordered the Gallmans to forfeit the amount of the refunds paid by the IRS, including $11,529,954 seized from numerous bank accounts; foreign currency and gold and silver coins seized from a residence in Upper Marlboro; nine residential properties located in Upper Marlboro and Laurel, Maryland, North Carolina and South Carolina; and two Mercedes-Benz vehicles and a Hyundai vehicle.
Acting Assistant Attorney General Ciraolo, U.S. Attorney Rosenstein and Special Agent in Charge Jankowski thanked special agents of IRS-CI, who investigated the case and Assistant U.S. Attorney Thomas P. Windom of the District of Maryland and Trial Attorney Erin Pulice of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Two Brothers Sentenced for Filing 46 Fraudulent Tax Returns Seeking Refunds of over $224 MillionRead the Press Release
Greenbelt, Maryland - Two brothers were sentenced to prison today for filing 46 fraudulent tax returns seeking refunds of over $224 million. U.S. District Judge Paul W. Grimm sentenced Sean Aude Gallman, age 39, of Upper Marlboro, Maryland to 11 years in prison, and Eric Maurice Gallman, age 42, of Huntersville, North Carolina, to four years in prison, both followed by three years of supervised release. The Gallmans previously pleaded guilty to conspiring to commit mail and wire fraud, mail fraud, and conspiring to commit money laundering. Sean Gallman also pleaded guilty to money laundering and aggravated identity theft.
Judge Grimm also ordered Sean and Eric Gallman to pay restitution to the IRS of $16,512,492; and forfeit the amount of the refunds paid by the IRS, including $11,529,954 seized from numerous bank accounts; foreign currency and gold and silver coins seized from a residence in Upper Marlboro; nine residential properties located in Upper Marlboro and Laurel, Maryland, North Carolina and South Carolina; and two Mercedes-Benz vehicles and a Hyundai vehicle.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division of the Department of Justice; and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“These two criminals filed bogus tax returns claiming ‘refunds’ that were not owed, and stole over $16 million from the IRS,” said U.S. Attorney Rod J. Rosenstein. “Federal agents and prosecutors have a duty to pursue perpetrators of such fraud schemes and try to recover money stolen from the United States Treasury.”
“The Gallman brothers engaged in a willful and deliberate scheme to steal from the U.S. Treasury and in turn, U.S. taxpayers,” said Acting Assistant Attorney General Ciraolo. “The Department will continue to aggressively investigate and prosecute individuals and entities engaged in this criminal conduct, and will seek substantial prison terms, fines and full restitution to hold defendants accountable and send a strong message to potential offenders.”
"Using the U.S. Treasury as a personal piggy bank to obtain millions of dollars in fraudulent refunds, the Gallman’s not only showed their blatant disregard of the law, but also for the American taxpayer," said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s sentencing’s emphasize that such greed based criminal behavior comes with a cost.”
According to court documents and evidence presented at the sentencing hearing, Sean and Eric Gallman established trusts and business entities, and used mailboxes at numerous private commercial postal carrier stores in Maryland and North Carolina as the addresses for the trusts and business entities. The defendants, acting as trustees and agents, mailed fraudulent tax returns to the IRS in the names of the trusts and businesses requesting refunds.
For example, in January 2013, Sean Gallman mailed to the IRS a fraudulent 2012 tax return in the name of the Gallman Charitable Trust, requesting a refund of $8,218,930. Also around this time, the defendants mailed to the IRS a fraudulent 2012 tax return in the name of LEA Group Holdings Trust, requesting a refund of $8,293,562. The defendants knew that the trusts were not entitled to the tax refunds. After receiving refund checks in these amounts, on February 15 and March 11, 2013, the defendants deposited the two refunds in bank accounts they controlled. To hide their receipt of these refunds, the defendants used cashier’s checks and other financial instruments to transfer a portion of the money to third parties and other bank accounts.
Altogether, the Gallman brothers filed approximately 46 fraudulent tax returns seeking refunds totaling $224,676,998, for which the IRS paid two refunds totaling $16,512,492.
United States Attorney Rosenstein and Acting Assistant Attorney General Ciraolo praised IRS-Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney Thomas P. Windom and Trial Attorney Erin Pulice of the Department of Justice Tax Division, who prosecuted the case.
Twenty-One Defendants Charged in White Plains Federal Court with Committing Narcotics and Firearms Offenses in Sullivan CountyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James R. Farrell, the Sullivan County District Attorney, Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), Joseph A. D’Amico, the Superintendent of the New York State Police (“NYSP”), Michael A. Schiff, the Sullivan County Sheriff, Scott Kinne, the Chief of the Village of Liberty Police, and Robert Mir, the Chief of the Village of Monticello Police Department, today announced the unsealing of an Indictment charging a total of 21 defendants with committing various narcotics and firearms offenses in the Village of Liberty, Sullivan County, New York.
Manhattan U.S. Attorney Preet Bharara stated: “Drugs destroy lives, rip apart families, and fuel a cycle of addiction and violence in our communities. With the federal drug and gun charges brought today, we seek to incapacitate two different drug rings that have for years been selling heroin and crack cocaine, and protecting their business with guns, in Sullivan County and specifically, in the Village of Liberty.”
Sullivan County District Attorney James R. Farrell stated: “The investigation into the distribution of dangerous narcotics in Sullivan County by local, county, state and federal law enforcement continues to move forward, at full speed, with the twenty-one arrests made today. Those who traffic in dangerous narcotics in Sullivan County are on notice that all law enforcement agencies, at every level, are working together, every single day, to put you out of business and to hold you accountable for your actions through investigation, arrest and prosecution.”
FBI Assistant Director-in-Charge Diego Rodriguez stated: “Heroin is spreading through our communities like a cancer. It brings with it alleged pushers who use crime and weapons to defend their so called turf, in this case targeting people outside of a drug recovery treatment center of all places. The FBI’s Hudson Valley Safe Streets Task Force and our law enforcement partners won’t let the disease grow and infect neighborhoods and hamlets in Sullivan County and beyond.”
NYSP Superintendent Joseph A. D’Amico stated: “The combined efforts of federal, state and local law enforcement have put this operation out of business and disrupted the sale of heroin and cocaine in Sullivan County. This case continues our commitment and partnership to identify, arrest and prosecute anyone who tries to sell these dangerous drugs in our communities.”
Sullivan County Sheriff Michael A. Schiff stated: “Many of our residents have expressed concern over the apparent narcotics activity in their towns and villages. We have heard you loud and clear. Today’s joint law enforcement operation is an attempt to restore the quality of life that our citizens have come to expect and deserve. Make no mistake, we will use every resource available, whether it be Federal, State or local, to find those who are peddling poison to our children and bring them to justice.”
Village of Liberty Police Chief Scott Kinne stated: “Todays arrests are part of the ongoing commitment and cooperation of all of Sullivan County’s law enforcement agencies to investigate and arrest the dealers and distributers who sell heroin and other controlled substances on our streets. This investigation will have a significant impact on drug sales and other crimes in the Village of Liberty, these types of investigations and arrests make Liberty a safer community, I thank all the agencies who work with us to help rid our communities of drugs and violence.”
Village of Monticello Police Chief Robert Mir stated: “The village of Monticello police department will continue to work with our local, state and federal law enforcement partners in investigating, arresting and successfully prosecuting the indivuals that supply the dangerous drugs that are causing so much misery in our communities.”
As alleged in the Indictment unsealed today in White Plains federal court[1]:
In at least 2015 and 2016, KYLE JAMES, a/k/a “Killa,” 30, JAMAR SHAW, a/k/a “Double R,” 33, DANIEL FRANCO, a/k/a “Young Papi,” 26, RASHAWN PERRY, a/k/a “Cass,” 29, NORDIA TOMPKINS, a/k/a “Nadia,” 31, JUAN MONTERO, a/k/a “Chino,” 37, LOREN PERRY, a/k/a “Skip,” 41, HERBERT MURPHY, a/k/a “Superb,” a/k/a “Perb,” a/k/a “Alan,” a/k/a “Herbie,” 42, GRADY BLACKMON, 57, CANDICE BROOKINS, 29, ASHLEY EDWARDS, 19, DAVID GUZMAN, 18, PATRICK HILLIARD, 23, CHERYL JERNIGAN, 26, ARIK PERKINS, 22, KEVIN PRIMIANO, 41, MANUEL RIVERA, 20, and NICOLE SNEDEKER, 25, conspired to sell one kilogram or more of heroin. The conspiracy was led, at different times, by JAMES and SHAW. Members of the conspiracy distributed heroin in and around the Village of Liberty, New York and other locations in Sullivan County, New York. Members of the conspiracy regularly sold heroin in the parking lots of businesses, including a nursing home and a drug recovery center, in the Village of Liberty.
In April 2016, JAMES and LOREN PERRY used, carried, and possessed a firearm in furtherance of the heroin conspiracy in which they were both members.
In at least 2015 and 2016, RICHIERAY SUCCI, 35, MONTERO, JONATHAN PAGAN, a/k/a “JP,” 24, and JASON WOOD, 32, conspired to sell 28 grams or more of crack cocaine, and SUCCI, MONTERO, and WOOD conspired to sell 100 grams or more of heroin. Members of the conspiracy distributed crack and heroin in and around the Village of Liberty.
* * *
All 21 defendants were taken into federal custody this morning. These defendants will be presented in White Plains federal court today before U.S. Magistrate Judge Judith C. McCarthy.
Charts containing the names of the defendants who were charged today, and the charges and maximum penalties they face, are attached. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Bharara praised the outstanding investigative work of the FBI, the New York State Police, the Sullivan County Sheriff’s Department, the Village of Monticello Police Department, the Village of Liberty Police Department, the Town of Fallsburg Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Mr. Bharara also thanked the Sullivan County District Attorney’s Office for its ongoing assistance in the case.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Jennifer Beidel, Maurene Comey, Michael Gerber, and Won Shin are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Kyle James, et al., 16 Mag. 2293
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 1 kilogram or more of heroin.)
KYLE JAMES,
a/k/a “Killa,”
JAMAR SHAW,
a/k/a “Double R,” DANIEL FRANCO,
a/k/a “Young Papi,” RASHAWN PERRY,
a/k/a “Cass,”
NORDIA TOMPKINS,
a/k/a “Nadia,”
JUAN MONTERO,
a/k/a “Chino,”
LOREN PERRY,
a/k/a “Skip,”
HERBERT MURPHY,
a/k/a “Superb,”
a/k/a “Perb,”
a/k/a “Alan,”
a/k/a “Herbie,”
GRADY BLACKMON, CANDICE BROOKINS, ASHLEY EDWARDS, DAVID GUZMAN, PATRICK HILLIARD, CHERYL JERNIGAN,
ARIK PERKINS,
KEVIN PRIMIANO, MANUEL RIVERA, and NICOLE SNEDEKER
Life in prison
Mandatory minimum:
10 years in prisonPossession of a firearm in furtherance of a drug trafficking crime
LOREN PERRY,
a/k/a “Skip,” and
KYLE JAMES,
a/k/a “Killa”
Life in prison
Mandatory minimum:
five years in prison, to be imposed consecutively to any other sentenceNarcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 28 grams or more of crack cocaine and/or 100 grams or more of heroin.)
RICHIERAY SUCCI,
JUAN MONTERO,
a/k/a “Chino,”
JONATHAN PAGAN,
a/k/a “JP,” and
JASON WOOD
40 years in prison
Mandatory minimum:
5 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Tulsa Physician Sentenced to 15 Years for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Tulsa, Okla., physician was sentenced in federal court today for using a minor to produce child pornography.
Shelby J. Coleman, 38, of Tulsa, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years and eight months in federal prison without parole. The court also sentenced Coleman to serve 10 years on supervised release following incarceration.
On Jan. 12, 2016, Coleman pleaded guilty to the sexual exploitation of a child. Coleman, a medical doctor and partner of Tulsa Women’s Health Center, has been in federal custody since his arrest in September 2013.
Coleman admitted that he communicated with a 16-year-old minor in Laclede County, Mo., identified as John Doe, via cell phone texts. At Coleman’s request, John Doe sent him multiple sexually explicit images of himself.
When John Doe’s father discovered the text messages, he contacted the Missouri State Highway Patrol. A state trooper assumed the identity of John Doe for the purpose of the investigation.
On Sept. 28, 2013, Coleman was apprehended by investigators after he traveled to Springfield, Mo., in order to meet John Doe for a sexual liaison.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI, the Joplin, Mo., Police Department, the Southwest Missouri Cyber Crimes Task Force and the Missouri State Highway Patrol.
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."
Tonawanda Man Sentenced on Drug Importation ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Peter Viera, 23, of Tonawanda, NY, who was convicted of conspiracy to import methylone, a Schedule I controlled substance, was sentenced to 70 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that between December 1, 2011, and May 22, 2013, the defendant ordered approximately $60,000 worth of methylone from China as part of the conspiracy to import and sell methylone in Western New York. On May 31, 2013, Viera was parked in a car across from the LaSalle Post Office in Niagara Falls, N.Y. observing a co-conspirator pick up a package from the Post Office, which had been sent from China. Unbeknownst to Viera and his co-conspirators -- the package was intercepted two days prior by U.S. Postal inspectors and found to contain approximately one kilogram of methylone.
Following his arrest, Viera fled to Tijuana while his case was pending and was gone for about seven months before until he was taken back into custody by Immigration and Customs Enforcement in San Ysidro, CA and transported back to the Western District of New York.
The sentencing is the result of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the United States Postal Inspection Service, under the direction of U.S. Postal Inspection Service, Boston Division, under the direction of Inspector in Charge, Shelly A. Binkowski.
Three Men Sentenced for Armed Robbery of West Bloomfield Tappers JewelryRead the Press Release
The final three defendants were each sentenced to 33 years in prison today for their involvement in the violent armed robbery of Tapper’s Diamonds and Fine Jewelry in West Bloomfield and an attempted armed robbery of Medawar Jewelers in Grand Rapids in April 2014, United States Attorney Barbara L. McQuade announced.
Co-conspirator Nathaniel Pembrook was sentenced to 33 years last week.
David Briley, 47, Shaheed Calhoun, 36, and Orlando Johnson, 42, were convicted along with Pembrook of a variety of charges, including conspiracy to interfere with interstate commerce by force, interference with interstate commerce by force, use and carry of a firearm during and in relation to a crime of violence, and being felons in possession of firearms after a four week-long trial in November and December 2015. The evidence produced at trial showed that all four men lived in Philadelphia and traveled to Michigan on April 21 and 22, 2014, to commit armed robberies of jewelry stores, particularly targeting Rolex distributors, as part of a six-person robbery crew.
This armed robbery crew initially attempted to steal Rolex watches and other valuables from Medawar Jewelers in Grand Rapids, at approximately 12:28 pm on April 22, 2014. During that attempted robbery, one robber used a hammer to smash the Rolex watch display while three other robbers, one armed with a gun, rushed to the back area of the store looking for other valuables. The store owners, who are registered concealed pistol owners, shot the armed robber, and all of the robbers fled without any valuables.
About five hours later, three men, dressed in identical clothes as the robbers in Grand Rapids earlier that day, entered Tapper’s Diamonds and Fine Jewelry on Orchard Lake Road in West Bloomfield, and held employees and customers at gunpoint as they stole approximately $1.3 million worth of Rolex watches. The men then fled the store without being apprehended.
The Federal Bureau of Investigation, Kent County Sheriff Department, and West Bloomfield Police Department coordinated their investigative efforts and began to piece together various pieces of evidence to identify the armed robbers. Pembrook’s blood, containing DNA, were found at the Medawar Jewelers location. Investigators discovered that Pembrook checked himself into Pennsylvania Prysberatian Hospital in the early morning hours of April 23, 2014, complaining of a gunshot wound. The hospital removed the bullet from Pembrook’s arm and Michigan State Police laboratory personnel were able to match the fired bullet to the Medawars owner’s firearm. Additionally, investigators tracked down video and cell phone information that helped to place all of these men from Philadelphia at the robbery locations during the times of the robberies.
Court records show that these men had a long history of committing larcenies and armed robberies. Briley had been previously convicted on 17 prior occasions, Calhoun had eight prior convictions, and Johnson had 13 prior convictions.
“We are grateful for the outstanding coordination by law enforcement agencies across state lines to put this case together.” McQuade said. “Armed robbery creates an unacceptable risk of harm to the public, and we are pleased that these men will be off the streets for a long time.”
Law enforcement agencies are still attempting to identify the final two persons associated with this robbery crew. If anyone has any information about those person’s identities, they are asked to contact the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorneys Daniel Lemisch and Christopher Graveline.
Three Defendants enter Guilty Pleas in Drug Trafficking/Money Laundering ConspiraciesRead the Press Release
St. Thomas, USVI – On May 16, 2016, Clarence Griffin, 44, of Los Angeles, Robert Brown, 29, of St. Croix, and Jamila Felix, 29, of St. Thomas, pleaded guilty in federal c ourt on St. Thomas, United States Attorney Ronald W. Sharpe announced. Griffin and Brown pleaded guilty to conspiracy to possess marijuana with the intent to distribute, and Felix pleaded guilty to conspiracy to launder monetary instruments. Sentencing is scheduled for September 15, 2016.
According to the plea agreements filed with the court, between July 2012 and December 2013, Griffin and Brown shipped barrels containing at least 700 kilograms but less than 1,000 kilograms of marijuana concealed in “Chow Mein” cans from Los Angeles to St. Thomas utilizing a trucking service. Felix later deposited the proceeds from the marijuana sales into her bank accounts in St. Thomas, and subsequently wired the proceeds electronically to Griffin and other members of the conspiracy in the mainland United States. Griffin and Brown face a maximum sentence of life in prison and a $10,000,000 fine. Both defendants remain in custody pending sentencing. Felix faces a maximum sentence of 20 years in prison, and a fine of $500,000.00, or twice the value of the property involved in her transactions, whichever is greater. Felix remains on release pending sentencing.
This case is the result of a joint investigation by the U.S. Drug Enforcement Administration and the U.S. Internal Revenue Service, Criminal Investigation. It was prosecuted by Assistant United States Attorney Delia L. Smith.
The U.S. Attorney's Office for the Western District of North Carolina Honors and Remembers Fallen Law Enforcement Officers in Observance of 2016 "National Police Week"Read the Press Release
CHARLOTTE, N.C. – This week, communities across the United States gather during National Police Week to remember law enforcement officers who made the ultimate sacrifice in the line of duty to share their stories of courage and sacrifice and to honor their memory.
“Police week is a time of remembrance of fallen officers who gave their lives to protect ours,” said Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. “Together with our fallen heroes’ families, friends and comrades we come together to grieve for their tragic loss, to celebrate their lives and to carry on the legacy they left behind.”
In 1962, President Kennedy proclaimed May 15 as National Peace Officers Memorial Day and the calendar week in which May 15 falls as “National Police Week.” Established by a joint resolution of Congress in 1962, National Police Week pays special recognition to those law enforcement officers who have lost their lives in the line of duty for the safety and protection of others.
This year, the names of 252 U.S. law enforcement officers who have died in the line of duty will be added to the National Law Enforcement Officers Memorial in Washington, D.C., including the names of 123 officers who made the ultimate sacrifice during 2015, and 129 officers who died earlier in history but whose sacrifice had not been previously documented. With the addition of the 252 names this year, a total of 20,789 officers’ names are engraved on the Memorial. The names represent fallen law enforcement officers from all 50 states, the District of Columbia, U.S. territories, federal law enforcement, and military police agencies.
Among those added this year will be:
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Anthony E. Lossiah, of the Cherokee Indian Police Department, who died in October 2015.
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Robert James Bowling, of the North Carolina DMV – License & Theft Bureau, who died in May 2015.
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Keith Decarlo Smith, of the North Carolina Dept. of Public Safety, who died in December 2012.
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John William Knapp, Jr., of the Boone Police Department, who died in March 1999.
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Jesse James Styers, of the Forsyth County Sheriff’s Office, who died in January 1935.
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Jack William Sykes, Wilson Police Department, who died in November 1922.
U.S. Attorney Rose noted that along with remembering the officers who made the ultimate sacrifice, “Police Week is an opportunity to honor and recognize all law enforcement officers in our communities, who bravely stand on the front lines each day. These officers are part of a long line of courageous men and women who have taken an oath to protect our neighborhoods, our homes and our loved ones from harm. I am thankful for their service, their courage and their willingness to answer the ultimate call of duty.”
There are approximately 900,000 law enforcement officers currently serving in communities across the United States. Each year, nearly 60,000 assaults against law enforcement officers are reported, resulting in approximately 16,000 injuries.
The names of all 252 fallen officers nationwide were formally dedicated on the National Law Enforcement Officers Memorial during the 28th Annual Candlelight Vigil held at the National Mall on Friday, May 13, 2016.
The 35th Annual National Peach Officers’ Memorial Service was held on Sunday, May 15, 2016, in Washington, D.C., and Deputy Attorney General Sally Q. Yates delivered the keynote address.
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Texas Authorities Make Multiple Arrests and Warn Public of Dangers of Synthetic NarcoticsRead the Press Release
A total of 16 people have been charged following a multi-year, multi-agency federal investigation into one of the largest synthetic cannabinoid trafficking enterprises in the country.
U.S. Attorney Kenneth Magidson for the Southern District of Texas made the announcement today along with Special Agent in Charge Joseph Arabit of the Drug Enforcement Administration (DEA), Acting Chief Martha Montalvo of the Houston Police Department (HPD) as well as leaders and representatives from numerous other federal, state and local law enforcement agencies.
“Today, a major criminal organization that dealt in the large-scale manufacturing and distributing of synthetic cannabinoids was dismantled,” said U.S. Attorney Magidson. “The unsealed indictment and related arrests are the results of a significant federal, state and local effort that was international in scope. These drugs are extremely dangerous and are emerging into a serious public health threat in both our area and the nation as a whole.”
A federal grand jury returned a 13-count federal indictment April 28, alleging a conspiracy to possess with the intent to distribute a controlled substance, aiding and abetting possession with the intent to distribute a controlled substance, aiding and abetting the smuggling of goods into the U.S., conspiracy to commit money laundering, aiding and abetting a money transmitting business and conspiracy to commit mail fraud. With the exception of aiding and abetting a money transmitting business, which carries a possible five-year-prison term, the penalty on any of the other charges is up to 20 years in federal prison.
“The arrests made today as part of Operation ‘We Can Hear You Now’ conclude a comprehensive investigation by DEA, Houston Police Department and its law enforcement partners into the leadership structure and criminal activities of an international drug trafficking organization,” said Special Agent in Charge Arabit. “This operation highlights an intentional and deliberate effort to cut off and shut down the supply of synthetic cannabinoids trafficked by callous dealers and the corresponding negative impact that this horrific drug inflicts on our communities.”
“This is great example of the Houston Police Department's partnership and collaboration with law enforcement partners in the effort to take dangerous substances off the streets,” said Acting Chief Montalvo. “Synthetic cannabinoids have been a major issue in our city and this was a major step in getting this illegal substance off our streets.”
The indictment alleges several co-conspirators devised a scheme to defraud by marketing their products as though they were safe. Some of the products were allegedly labeled as “potpourri” or “incense,” with some including false information such as “100% legal,” “lab certified” or “not for human consumption.” According to the charges, these products were, in fact, dangerous drugs. Specifically, they were synthetic cannabinoids that were manufactured and sold for human consumption. The substances allegedly contained hazardous chemicals that, when smoked or ingested, could cause serious bodily harm.
The indictment indicates the drugs in question were all schedule I drugs – substances or chemicals with no currently accepted medical use, have a high potential for abuse, are the most dangerous drugs of all scheduled drugs and have potential for severe psychological or physical dependence.
As part of the announcement today, authorities provided detailed information to warn of the dangers of this emerging public health threat. The effects of these drugs were described as unpredictable, with wide-ranging physiological effects to include possible kidney damage and gastrointestinal distress to possible seizures and even psychosis. Leaders also described how these are made and the unsafe and often dirty environments in which they are created, to include inconsistent batches blended in cement mixers and similar equipment. According to the information provided, this can result in “hot spots” in which one sample could have a significantly greater amount of harmful chemical than another.
Authorities also detailed the marketing of these drugs, citing the colorful packaging that targets only drug abusers, but also children and adolescents.
The law enforcement effort today resulted in the arrest of 12 people in the Houston area - Salem Fahed Tannous, 55, Omar Maher Alnasser, 36, Ali Shaker Tafesh, 35, Khalil Munier Khalil, 40, Nagy Mahmoud Ali, 59, Mohammed Rafat Taha, 27, and Steve Shafiq Amira, 58, all of Houston; Muhammad Shariq Siddiqi, 45, Ayisha Khurram, 40, and Sayed Ali, 41, all of Sugar Land; Abdalnour Izz, 31, of Missouri City; and Hazim Hisham Qadus, 31, of South Houston.
Khader Fahed Tanous, 49, of Stephens City, Virginia, and Frank Muratalla, 23, of Hawthorne, California, are also charged.
Authorities are still seeking Ziad Mahmoud Alsalameh, 56, of Pearland, Texas, and Aqil Khader, 33, of Houston. They are considered fugitives and warrants remain outstanding for their arrests. Anyone with information about their whereabouts are asked to contact DEA at 713-693-3000.
The indictment includes a notice of forfeiture and seeks $35 million money judgment as alleged illegal proceeds from the crimes.
The charges are the result of a four-year investigation conducted by the DEA, HPD, Bureau of Alcohol, Tobacco, Firearms and Explosives and Internal Revenue Service – Criminal Investigation with the assistance of the U.S. Postal Inspection Service, Conroe Police Department, sheriff’s offices in Harris and Polk counties, Texas Alcoholic Beverage Commission and the Montgomery County District Attorney’s Office. Assistant U.S. Attorneys John Jocher and Nancy Herrera are prosecuting the case.
Texas Authorities Make Multiple Arrests and Warn Public of Dangers of Synthetic NarcoticsRead the Press Release
HOUSTON - A total of 16 people have been charged following a multi-year, multi-agency federal investigation into one of the largest synthetic cannabinoid trafficking enterprises in the country.
U.S. Attorney Kenneth Magidson made the announcement at a press conference in Houston today along with Special Agent in Charge Joseph M. Arabit of the Drug Enforcement Administration (DEA), Acting Chief Martha Montalvo of the Houston Police Department (HPD) as well as leaders and representatives from numerous other federal, state and local law enforcement agencies.
“Today, a major criminal organization that dealt in the large-scale manufacturing and distributing of synthetic cannabinoids was dismantled,” said Magidson. “The unsealed indictment and related arrests are the results of a significant federal, state and local effort that was international in scope. These drugs are extremely dangerous and are emerging into a serious public health threat in both our area and the nation as a whole.”
A federal grand jury returned a 13-count federal indictment April 28, 2016, alleging a conspiracy to possess with the intent to distribute a controlled substance, aiding and abetting possession with the intent to distribute a controlled substance, aiding and abetting the smuggling of goods into the U.S., conspiracy to commit money laundering, aiding and abetting a money transmitting business and conspiracy to commit mail fraud. With the exception of aiding and abetting a money transmitting business, which carries a possible five-year-prison term, the penalty on any of the other charges is up to 20 years in federal prison.
“The arrests made today as part of Operation ‘We Can Hear You Now’ conclude a comprehensive investigation by DEA, Houston Police Department and its law enforcement partners into the leadership structure and criminal activities of an international drug trafficking organization,” said Arabit. “This operation highlights an intentional and deliberate effort to cut off and shut down the supply of synthetic cannabinoids trafficked by callous dealers and the corresponding negative impact that this horrific drug inflicts on our communities.”
“This is great example of the Houston Police Department's partnership and collaboration with law enforcement partners in the effort to take dangerous substances off the streets,” said Acting Chief Martha Montalvo of the Houston Police Department. “Synthetic cannabinoids have been a major issue in our city and this was a major step in getting this illegal substance off our streets.”
The indictment alleges several co-conspirators devised a scheme to defraud by marketing their products as though they were safe. Some of the products were allegedly labeled as “potpourri” or “incense,” with some including false information such as “100% legal,” “lab certified” or “not for human consumption.” According to the charges, these products were, in fact, dangerous drugs. Specifically, synthetic cannabinoids that were manufactured and sold for human consumption. The substances allegedly contained hazardous chemicals that, when smoked or ingested, could cause serious bodily harm.
The indictment indicates the drugs in question were all schedule I drugs – substances or chemicals with no currently accepted medical use, have a high potential for abuse, are the most dangerous drugs of all scheduled drugs and have potential for severe psychological or physical dependence.
As part of the announcement today, authorities provided detailed information to warn of the dangers of this emerging public health threat. The effects of these drugs were described as unpredictable, with wide-ranging physiological effects to include possible kidney damage and gastrointestinal distress to possible seizures and even psychosis. Leaders also described how these are made and the unsafe and often dirty environments in which they are created, to include inconsistent batches blended in cement mixers and similar equipment. According to the information provided, this can result in “hot spots” in which one sample could have a significantly greater amount of harmful chemical than another.
Authorities also detailed the marketing of these drugs, citing the colorful packaging that targets only drug abusers, but also children and adolescents.
The law enforcement effort today resulted in the arrest of 12 people in the Houston area - Salem Fahed Tannous, 55, Omar Maher Alnasser, 36, Ali Shaker Tafesh, 35, Khalil Munier Khalil, 40, Nagy Mahmoud Ali, 59, Mohammed Rafat Taha, 27, and Steve Shafiq Amira, 58, all of Houston; Muhammad Shariq Siddiqi, 45, Ayisha Khurram, 40, and Sayed Ali, 41, all of Sugar Land; Abdalnour Izz, 31, of Missouri City; and Hazim Hisham Qadus, 31, of South Houston.
Khader Fahed Tanous, 49, of Stephens City, Virginia, and Frank Muratalla, 23, of Hawthorne, California, are also charged.
Authorities are still seeking Ziad Mahmoud Alsalameh, 56, of Pearland, and Aqil Khader, 33, of Houston. They are considered fugitives and warrants remain outstanding for their arrests. Anyone with information about their whereabouts are asked to contact DEA at 713-693-3000.
The indictment includes a notice of forfeiture and seeks $35 million money judgment as alleged illegal proceeds from the crimes.
The charges are the result of a four-year investigation conducted by the DEA, HPD, Bureau of Alcohol, Tobacco, Firearms and Explosives and Internal Revenue Service – Criminal Investigation with the assistance of the U.S. Postal Inspection Service, Conroe Police Department, sheriff’s offices in Harris and Polk counties, Texas Alcoholic Beverage Commission and the Montgomery County District Attorney’s Office. Assistant U.S. Attorneys John Jocher and Nancy Herrera are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.###
South Glens Falls Woman Pleads Guilty to Social Security FraudRead the Press Release
ALBANY, NEW YORK – Roberta L. Rivers, age 57, of South Glens Falls, New York pled guilty today to stealing $112,000 in benefits from the Social Security Administration (SSA).
The announcement was made by United States Attorney Richard S. Hartunian and Edward J. Ryan, Special Agent-In-Charge of the SSA Office of the Inspector General.
During her plea today before Senior United States District Judge Gary L. Sharpe, Rivers admitted to concealing and failing to disclose that she was married and resided with her husband from July 2002 through November 2013 while she collected Supplemental Security Income (SSI) and Social Security Survivors Insurance Benefits (SIB). She also admitted that she did not report the marriage because she knew it would make her ineligible to receive benefits. As a result of her failure to disclose her marriage and the fact that she was living with her husband, she received $83,274 in SSI and $28,798 in SIB which she was not entitled to receive.
Rivers faces up to ten years of imprisonment, a $250,000 fine, and a term of post-imprisonment supervised release of up to three years when she is sentenced on September 12, 2016 by Senior United States District Judge Gary L. Sharpe. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Jason W. White.
Sandra Marks Pleads Guilty to Mail Fraud, Money LaunderingRead the Press Release
CHARLOTTESVILLE, VIRGINIA – The former owner of a fortune teller business on Seminole Trail in Charlottesville pled guilty today in Federal court to committing mail fraud and laundering more than $1 million in money stolen from her victims, United States Attorney John P. Fishwick Jr. said today.
Sandra Stevenson Marks, a.k.a. “Catherine Marks,” 42, of Charlottesville, Va., pled guilty today in the United States District Court for the Western District of Virginia in Charlottesville to one count of mail fraud and one count of money laundering. In addition, the plea agreement signed today in District Court calls for Marks to repay at least $1.2 million in restitution to the victims of the defendant’s scheme.
“Ms. Marks took advantage of people who trusted her during some of the lowest points of their lives,” United States Attorney John P. Fishwick Jr. said today. “Greed drove this defendant to break federal law and steal over $1 million from her victims. We are grateful to those who investigated this case and helped begin the process of making these victims whole again.”
“A fortune teller cons clients out of more than one million dollars, then launders the proceeds and commits mail fraud. This sounds like the plotline for a Hollywood movie. Unfortunately, for Ms. Marks’ victims, this was reality,” said Clark E. Settles, Special Agent in Charge of Homeland Security Investigations Washington, D.C. “I hope everyone appreciates, as much as I do, the HSI special agents who worked alongside our federal partners and the Albemarle County Police Department to investigate Marks and provide relief to the victims in the form of $1.2 million in restitution.”
According to evidence presented today, and at previous hearings by Assistant United States Attorney Ronald M. Huber, Marks, and her husband, Donnie Marks, operated the business, “Readings by Catherine” on Seminole Trail in Charlottesville, which offered services such as palm readings, candle readings, tarot card readings, astrological readings and spiritual readings to clients.
Marks admitted today, through a statement of facts submitted to the court and signed by the defendant, that she enriched herself by telling her clients she was clairvoyant and able to see into the past and the future. Marks also said she told her clients she had a “gift from God” and was able to communicate with spirits and guides from God, including the “Prince of Illusion,” who relayed information to her about clients.
Marks further admitted that she would tell clients that she had learned from the spirits and guides that the client, and/or the client’s family, was suffering from a “curse” and a “dark cloud” that occurred in the past. Marks would tell clients they would need to make a sacrifice of large amounts of money and valuables, whereby she would bury the money and items in a box to be “cleansed.” Marks explained to her clients that the money and property would be returned once the “work” was complete. Additionally, Marks would tell the clients that the money and property would not be used for Marks’ own personal benefit.
Contrary to her representations to clients, Marks kept and used money and other valuables provided by her clients for her own personal use and enjoyment and that of her husband. When Marks had used all of her client’s money, Marks would find new clients to fund the scheme, or tell old clients that additional money was required to continue her “work.”
At sentencing, Marks faces a maximum possible penalty of up to 20 years in federal prison on both the mail fraud count and money laundering count. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
The investigation of the case was conducted by U.S. Immigration and Custom Enforcement’s Homeland Security Investigations, the United States Postal Inspection Service, the United States Secret Service, the Virginia Attorney General’s Office, the Albemarle County Commonwealth’s Attorney’s Office and the Albemarle County Police Department. Assistant United States Attorney Ronald M. Huber prosecuted the case for the United States.
Rochester Man Sentenced in Sex Trafficking ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. — U.S. Attorney William J. Hochul, Jr., announced today that Brandon McNeal, 24, of Rochester, NY, who was convicted of conspiracy to commit sex trafficking of a minor, was sentenced to 108 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that McNeal conspired with others to recruit a minor female, knowing she was under the age of 18, to engage in commercial sex acts. Between July and August of 2015, the defendant had the child work for him as a prostitute. McNeal posted ads for the girl on Backpage.com, an internet classified advertising website. The defendant also arranged for the child to meet customers at a Motel 6 and paid for the hotel room.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation's Child Exploitation Task Force, which includes the Rochester Police Department, the Monroe County Sheriff’s Office, and Immigration and Customs Enforcement, Homeland Security Investigations.Retired High School Teacher Sentenced for Attempting to Engage in Illicit Sex with a MinorRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a retired high school teacher living in Sedalia, Mo., was sentenced in federal court today for arranging to meet a woman and her 14-year-old daughter (actually an undercover law enforcement officer) for illicit sexual activity.
Paul Robert Cannon, 71, of Sedalia, Mo., was sentenced by U.S. District Judge Brian C. Wimes to 10 years in federal prison without parole. The court also sentenced Cannon to spend the rest of his life on supervised release following incarceration.
Cannon, an industrial arts teacher from 1976 to 1996, retired from the Gasconade County R2 School District. Cannon also served one term as a member of the Gasconade County R2 Board of Education after he retired from teaching.
On March 15, 2016, Cannon pleaded guilty to attempting to induce a minor to engage in illicit sexual activity. According to court documents, Cannon posted an advertisement on Craigslist on Jan. 18, 2016, entitled “Grandpa looking for a couple with kids.” The posting read, “Grandpa looking for a couple that would like to include their kids in sexual fun. White man, very discreet, very safe, retired teacher, and well endowed. Age and race are not an issue.”
On Jan. 21, 2016, a detective with the Boone County, Mo., Sheriff’s Department responded to the Craigslist advertisement, portraying himself as a single mother with a 14-year-old daughter. Over the next six days, the detective exchanged numerous e-mails with Cannon. In these exchanges, Cannon described various sex acts he intended to perform with the minor daughter. He also offered to have sex with both the mother and minor daughter together and said he was looking for “a continuing relationship.” The detective also exchanged numerous texts with Cannon in which Cannon described various sex acts he intended to perform with the minor daughter.
The undercover detective arranged to meet Cannon at a Columbia, Mo., restaurant this afternoon. Cannon offered to buy lunch for the mother and daughter before going to their residence for a sexual rendezvous. When Cannon arrived at the restaurant, he was redirected to another nearby restaurant, where he was arrested.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Boone County Cyber Crimes Task Force and the FBI.
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."
Parma Farmer Convicted of Conspiracy to Bait Ducks and Placing Bait for DucksRead the Press Release
BOISE – Gregory Obendorf, 60, of Parma, Idaho, was found guilty yesterday by a federal jury sitting in Boise of conspiracy to bait migratory birds and placing bait for migratory birds, both in violation of the Migratory Bird Treaty Act, U.S. Attorney Wendy J. Olson announced. Obendorf was indicted on November 10, 2015.
The jury found that Obendorf conspired with other persons from November 2007 to January 2014, to place bait for migratory birds, specifically ducks, for the purpose of allowing others to hunt over the bait on his farm located on the Boise River in Parma, Idaho. The jury also convicted Obendorf of directing the placement of bait for duck hunting in November 2013. The jury heard evidence over the seven day trial that at the beginning of duck hunting season each year of the conspiracy, the defendant instructed his combine operators to partially combine his corn field to intentionally discharge corn kernels onto the field. Agents from the U.S. Fish and Wildlife Service flew over the defendant’s property in November of 2013, and observed piles of corn near a duck blind from the air. Agents and officers from the Idaho Department of Fish and Game then entered Obendorf’s corn field and discovered that the entire corn field was baited. After baiting the field with corn, Obendorf would flood the corn field and allow hunters to shoot ducks over the baited field. The jury also heard evidence that Obendorf instructed another individual to use a tractor to knock down standing corn in the field at night before his guests would hunt the field the following day. Obendorf boasted in a recorded conversation with Idaho Fish and Game Officers that he had over 200,000 ducks in the baited field during the 2013 hunting season. Several hunters who had been invited by Obendorf testified at trial that they hunted the corn field during the course of the conspiracy and that they were able to take their limits of ducks in under an hour.
“We take our mission to support the Fish and Wildlife Service very seriously, especially when violations involve the unlawful baiting of thousands of migratory birds over a prolonged period of time,” said Olson. “Duck hunting is a time honored tradition for hunters in Idaho, and the defendant has undermined the proud tradition of fair chase for all hunters.”
“Migratory birds are a trust responsibility of the U.S. Fish and Wildlife Service,” said U.S. Fish and Wildlife Service Deputy Chief Edward Grace. “Because of this fiduciary responsibility, we will remain vigilant in investigating individuals who illegally bait migratory birds to give hunters an unfair advantage.” Grace stated that the U.S. Fish and Wildlife Service is thankful to the U.S. Attorney’s Office and the citizens of Idaho who served on the jury for upholding the laws designed to protect migratory birds.
The charges of conspiracy to bait migratory birds and placing bait for migratory game birds are each punishable by not more than one year in prison, a maximum fine of $100,000, and not more than one year of supervised release or up to five years of probation. Obendorf’s sentencing is scheduled for August 2, 2016.
The case was investigated by the U.S. Fish and Wildlife Service and the Idaho Department of Fish and Game.
Oakmont Man Pleads Guilty to Structuring Cash Withdrawls to Evade Reporting RequirementsRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to charges of structuring financial transactions, United States Attorney David J. Hickton announced today.
Louis Lammana, 49, of Oakmont, Pennsylvania, pleaded guilty to two counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Lamanna structured cash withdrawals in 2011 and 2013 in a manner designed to evade the reporting requirements of the various financial institutions. Lamanna structured over $157,000 during those two time periods with the bulk of the structuring occurring in 2013.
Judge Schwab scheduled sentencing for October 3, 2016. Pending sentencing, the court continued Lamanna on bond.
Assistant United States Attorneys Brendan T. Conway, Michael L. Ivory, and Michael A. Comber are prosecuting this case on behalf of the government.
The Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Louis Lammana.
North Carolina Man Pleads Guilty to Federal Drug ChargeRead the Press Release
CHARLOTTESVILLE, VIRGINIA – A North Carolina man pled guilty today to a federal drug conspiracy charge, United States Attorney John P. Fishwick Jr. announced.
Ramon Gabriel Jr. of North Carolina pled guilty today in the United States District Court for the Western District of Virginia in Charlottesville to one count of conspiring to distribute and possess with the intent to distribute methamphetamine.
“Methamphetamine trafficking continues to be a growing threat throughout the Western District of Virginia,” United States Attorney John P. Fishwick Jr. said today. “We will continue to work with our partners on the local, state and federal levels to slow the influx of this deadly and addictive substance into our communities.”
At sentencing, Gabriel faces a maximum statutory penalty of 20 years in prison and/or a fine of up to $1 million dollars. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
The investigation of the case was conducted by the Drug Enforcement Administration, the Jefferson Area Drug Enforcement Task Force and the Federal Bureau of Investigation. Assistant United States Attorney Ronald M. Huber prosecuted the case for the United States.
Newington Man Sentenced to Prison for Stealing Social Security Benefits Delivered to Deceased GrandmotherRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CEDRIC NEWMAN, 46, of Newington, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to six months of imprisonment, followed by three years of supervised release, for stealing more than $200,000 in Social Security benefits that had been deposited into his deceased grandmother’s bank account. NEWMAN must serve the first three months of his supervised release in home confinement.
According to court documents and statements made in court, NEWMAN’s grandmother was entitled to receive Social Security Administration (“SSA”) monthly benefit payments starting in 1980. The payments were made by direct deposit into a bank checking account. Although NEWMAN’s grandmother passed away in October 1996, the direct deposit payments continued until June 2014.
In March 2011, NEWMAN began accessing the funds in the account to make electronic payments on his credit card. From the time of his grandmother’s death until June 2014, approximately $220,729 of monthly benefit payments, net of Medicare premiums, were directly deposited into her bank account. NEWMAN used $218,079 of the funds for his own benefit.
Judge Hall ordered NEWMAN to make full restitution to the Social Security Administration.
On December 14, 2015, NEWMAN pleaded guilty to one count of theft of public funds.
This matter was investigated by the Social Security Administration Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Anastasia Enos King.
New York Man Pleads Guilty to Robbing Two BanksRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Robert Meader, age 31, of Liverpool, New York, pleaded guilty to a Criminal Information charging him with robbing two banks.
According to United States Attorney Peter Smith, on May 16, 2016, Meader appeared before United States District Court Judge Robert Mariani in Federal Court in Scranton and pleaded guilty to committing the following two bank robberies:
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$14,147 from the NBT Bank, Great Bend, Pennsylvania, on October 13, 2015; and
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$5,721 NBT Bank, Albany, New York, on January 6, 2016.
Special Agents of the Federal Bureau of Investigation and Pennsylvania State Police arrested Meader without incident in Liverpool, New York, on January 12, 2016. Since his arrest, he has been held at the Lackawanna County Jail in Scranton.
The case was jointly investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Onondaga County Sheriff’s Office, New York. Prosecution is assigned to Assistant United States Attorney John Gurganus.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for each offense under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New York Man Convicted of Production of Child Pornography, Interstate Travel to Engage in Illicit Sexual ConductRead the Press Release
NEWARK, N.J. – A Warwick, New York, man was convicted by a federal jury today of coercing a minor to engage in sexually explicit conduct and traveling from New York to Passaic County, New Jersey, to have sexual intercourse with another minor, U.S. Attorney Paul J. Fishman announced.
Clifford W. Wares, 43, was convicted of all six counts of an indictment charging him with one count of production of child pornography, one count of interstate travel to engage in illicit sexual conduct, two counts of online enticement of a minor to engage in criminal sexual conduct, and two counts of interstate extortionate threat. Wares was convicted following a six-day trial before U.S. District Judge Esther Salas in Newark federal court. The jury deliberated for less than three hours before returning the verdict.
According to the documents filed in this case and the evidence presented at trial:
From June 2011 through October 2011, Wares used email, telephone and Facebook to communicate with a 13-year-old girl in Passaic County (“Victim 1”). Wares used a fake Facebook account to pretend to be another minor who was known to Victim 1 and introduce himself as someone with whom Victim 1 should communicate. Afterwards, Wares sent Victim 1 pornographic images and engaged in sexually explicit communications, ultimately asking that she send him images and videos of herself nude or engaging in sex acts, which she did. On occasions when she did not comply, Wares threatened to distribute nude images of Victim 1 to her parents and friends.
In June 2011, Wares met a 14-year-old girl residing in Passaic County (“Victim 2”) via an online social network. From June 2011 through August 2011, Wares regularly engaged in sexually explicit communications with Victim 2, sent her pornographic images and told her that he was interested in “hanging out” with her. Wares then drove from his home in Warwick, New York, to Passaic County where he picked her up in his vehicle. Wares engaged in sex acts with Victim 2 in a nearby park. After a second encounter, Wares threatened to harm Victim 2’s reputation and property when she refused to meet him again.
Wares was ultimately apprehended after a search for him was conducted via land and helicopter in an Orange County, New York park. Among his possessions upon his arrest were a roll of duct tape, a pair of handcuffs, a knife, and a handwritten list of the names of other minors who were known to Victims 1 and 2.
The charge of production of child pornography carries a maximum potential penalty of 30 years in prison and a mandatory minimum penalty of 15 years in prison. The charge of interstate travel to engage in illicit sexual conduct carries a maximum potential penalty of 30 years in prison. The counts of online enticement of a minor to engage in criminal sexual conduct each carry a maximum potential penalty of life in prison and a mandatory minimum penalty of 10 years in prison. The interstate extortionate threat counts each carry a maximum potential penalty of two years in prison. Each of the above charges is also punishable by a potential $250,000 fine. Sentencing is scheduled for June 27, 2016.
U.S. Attorney Fishman credited Special Agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, the New Jersey Regional Computer Forensics Laboratory, the Passaic County Prosecutor’s Office, and the New York State Police with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Danielle Alfonzo Walsman and Meredith J. Williams of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Thomas Ambrosio Esq., Lyndhurst, New Jersey.New Jersey Man Charged with Conspiracy to Provide False Statements Related to Export of Prohibited Goods to IranRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a plea agreement and a felony Criminal Information charging a New Jersey man with conspiring to provide false statements related to illegally exporting goods to Iran have been filed in U.S. District Court in Scranton, Pennsylvania.
According to United States Attorney Peter Smith, Asim Fareed, age 51, of North Brunswick, New Jersey, has agreed to enter a guilty plea to conspiracy to provide false statements in connection to the illegal export of goods to Iran. According to the Information, Fareed operated an export business in Somerset, New Jersey and agreed to ship items purchased by customers in Iran and to provide false documentation to the U.S. Department of Commerce for export purposes. Communications concerning the shipments passed between New Jersey and a site in Lackawanna County, Pennsylvania. No actual shipments were, in fact, delivered to Iran.
The Information charges that in 2013 and 2014 Fareed conspired with others to export items from the United States, through third party countries to customers in Iran. According to the Information, Fareed prepared invoices which listed false information as to the identity and geographic location of the purchasers of the goods. The items were then to be shipped from the United States to the United Arab Emirates, and thereafter transshipped to Iran. The plea agreement is subject to the approval of the court.
"The Office of Export Enforcement vigorously pursues violators of our nation's export control laws, which are in place to further and protect our national security and foreign policy. As in this instance, we work closely with our colleagues at HSI and other law enforcement agencies in prosecuting this case," said Jonathan Carson, Special Agent in Charge, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office.
“This case demonstrates how far individuals will go to circumvent U.S. export laws to export goods to countries like the Islamic Republic of Iran,” said Angel M. Melendez, special agent in charge of HSI in New York. “The Iran Trade Embargo prohibits Americans from supplying goods, technology and services to Iran directly or indirectly. HSI is committed to aggressively pursuing those who conduct illegal business with Iran.”
The case was investigated by the Department of Commerce, Office of Export Enforcement and U.S. Immigration and Custom Enforcement’s (ICE), Homeland Security Investigations (HSI). Assistant U.S. Attorney Todd K. Hinkley is prosecuting the case.
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 guilty 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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New Hartford Man Admits Producing Child PornographyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DANIEL JESSE CONRAD, 31, of New Hartford, waived his right to indictment and pleaded guilty today before U.S. District Magistrate Judge Robert A. Richardson in Hartford to one count of production of child pornography.
According to court documents and statements made in court, between October 2013 and June 2014, CONRAD sexually exploited three different minor females. CONRAD met one of the minor females in February 2014 through Omegle, an internet video chatting service. The minor was 15 years old at the time and lived in Connecticut. After their initial conversation, CONRAD and the minor female began communicating regularly through the Kik text messaging and photo sharing application on their cell phones. On March 1, 2014, the two met in person, and CONRAD drove the minor to Massachusetts where they engaged in sexual activity. On five or six occasions between March and June 2014, CONRAD picked up the minor and drove her to his residence where they engaged in sexual intercourse. During some of the encounters, CONRAD used his iPhone to take videos and pictures of the minor engaged in sexual activity.
In addition to meeting the minor in person, CONRAD had several online video conversations with the minor over Skype and Omegle. During some of these video conversations, the minor engaged in sexually explicit conduct, which CONRAD recorded and saved on his computer. CONRAD also repeatedly persuaded the minor to take sexually explicit pictures of herself at her home and send them to him via Kik.
CONRAD similarly met the two other minors, who were also 15 years old at the time, over Omegle. One of the minors lived in New York and the other minor lived in Nebraska. As with the first victim, CONRAD had several online video conversations with the minors over Skype and Omegle. During several of the video conversations, CONRAD persuaded them to engage in sexually explicit conduct, which CONRAD recorded and saved on his computer. CONRAD also repeatedly persuaded the minors to take sexually explicit pictures of themselves at their homes and send them to him via Kik.
In total, CONRAD had saved on his computer and iPhone approximately 200 images and 52 videos of the three minors engaged in sexually explicit conduct.
CONRAD is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on August 17, 2016, at which time CONRAD faces a mandatory minimum term of imprisonment of 15 years, a maximum term of imprisonment of 30 years and a fine of up to $250,000.
Since his arrest on September 10, 2015, CONRAD has been released on bond and placed on electronic monitoring.
This matter is being investigated by the Homeland Security Investigations and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
New Britain Firearms Manufacturer, Former Owner, Sentenced for Violating Federal Firearms LawsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Daniel J. Kumor, Special Agent in Charge of the ATF Boston Field Division, announced that STAG ARMS LLC, a firearms manufacturer in New Britain, and its former owner and president, MARK MALKOWSKI of Farmington, were sentenced today in Hartford federal court. Senior U.S. District Judge Alfred V. Covello ordered STAG ARMS to pay a $500,000 fine and MALKOWSKI to serve two years of probation and pay a $100,000 fine.
In December 2015, STAG ARMS pleaded guilty to a felony charge of possession of a machine gun not registered to the company, and MALKOWSKI pleaded guilty in his individual capacity to a misdemeanor charge of failure to maintain proper firearm records.
“This is the first time nationwide that a major firearms manufacturer has been convicted of a felony and had its license revoked, effectively forcing the company to be sold to new owners,” said U.S. Attorney Daly. “Stag displayed a systemic and egregious disregard of federal firearms regulations. The company was unable to account for hundreds of semi-automatic rifles and possessed over sixty unregistered machine guns. This prosecution should serve as a warning to those in positions of leadership in the firearms manufacturing industry that failure to maintain strict compliance with firearms laws will have serious consequences. By properly marking and serializing firearms, accurately maintaining records in conformity with the Gun Control Act and properly registering firearms, gun manufacturers act as the first line of defense in ensuring that firearms are traceable and do not fall into the wrong hands.”
“ATF relies on individuals and corporations who are licensed to manufacture firearms to mark them in accordance with the law, keep thorough records of the manufacture and disposition of all firearms, and maintain their inventory in secure facilities to prevent their theft or loss,” said ATF Special Agent in Charge Kumor. “When firearms licensees fail to comply with these federal regulations and laws they open the door for untraceable firearms to wind up on the street in the hands of traffickers and criminals.”
The possession, by private citizens, of machine guns manufactured after 1986 is prohibited, and licensed manufacturers of machine guns are required to stamp a unique serial number on each machine gun and register it with ATF within one business day of manufacture. It is a violation of federal law for a licensed manufacturer to fail to mark a firearm with a serial number and for anyone to tamper with a firearm serial number or possess a firearm with an obliterated serial number. It is also against the law for anyone to possess a machine gun that is not registered to them.
According to court documents and statements made in court, STAG ARMS (“STAG”) obtained a federal firearms license (“FFL”) to manufacture firearms in 2003, and obtained a license for a second location in 2009.
In 2007, the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) cited STAG for a number of regulatory violations.
In July 2014, ATF Industry Operations Investigators performed another firearms compliance inspection at STAG. The investigation revealed that, in violation of the National Firearms Act, STAG had possession of a total of 62 machine guns and machine gun receivers that were registered to another entity, or were not registered at all.
A receiver is the key regulated part that is considered a machine gun. All other parts necessary to transform a receiver to a fully functional semi-automatic or automatic machine gun can be purchased over the Internet.
The investigation also discovered that, in violation of the Gun Control Act, STAG had failed in thousands of instances to adequately document the manufacture and disposition of firearms – machine guns as well as assault weapons – making them more susceptible to theft or loss. Many of the record-keeping violations that were uncovered were similar to violations for which STAG was cited in 2007. For example, inspectors discovered more than 3000 un-serialized receivers on the premises without any record of their manufacture or acquisition, and more than 3000 firearms that were transferred by STAG without properly being recorded. Inspectors were able to reconcile the majority of these transfers from other paperwork on site, but found more than 300 instances in which the disposition of the firearms could not be reconciled. To date, approximately 200 firearms are reported as lost or stolen.
In September 2014, ATF executed search warrants at STAG’s two facilities on John Downey Drive in New Britain and seized dozens of machine guns that had not been marked and/or registered, as well as three machine guns with serial numbers that had been intentionally obliterated, or scratched out.
In October 2014, ATF issued a Notice of Revocation to STAG, revoking both federal firearms licenses held by STAG at it two facilities. In the revocation notices, ATF alleged that STAG had knowledge of its recordkeeping and firearms marking responsibilities, but did not choose to comply. STAG was permitted to continue operations pending the results of a hearing where STAG was afforded the opportunity to contest the revocations with its own witnesses and evidence, and to cross examine government witnesses.
On November 16, 2015, after consideration of the evidence presented at the hearing, ATF issued a revocation of both of STAG’s federal firearms licenses.
Due its license revocation, on February 29, 2016, a sale of STAG was completed to an independent third party and the company is now under new ownership.
As part of the resolution of this case, STAG agreed not to challenge the license revocations in court, and to drop all ownership claims to the firearms seized by ATF. In addition, MALKOWSKI divested himself of his interest in STAG and has agreed never again to hold an ownership or management position with respect to a firearms business.
This matter is being prosecuted by Assistant U.S. Attorney S. Dave Vatti.
Nevada Police Officer Indicted for Using Excessive Force Against Student and School Staff MemberRead the Press Release
The Justice Department announced today that a federal grand jury in Las Vegas returned a five-count indictment charging Clark County School District Police Officer James Lescinsky, 45, with unlawfully assaulting two people at the Jeffrey Behavior School on May 21, 2015, and then attempting to cover it up.
Lescinsky allegedly violated the right of the school staff member, identified only as T.R., not to be deprived of liberty without due process of law and the right of the student, identified only as A.N., to be free from unreasonable seizure. The indictment alleges that Lescinsky unlawfully assaulted T.R. by striking her with a dangerous weapon, his police-issued baton, which caused bodily injury. Lescinsky also allegedly unlawfully assaulted A.N. by striking her with the baton and slamming her into a hallway wall and floor at the school.
Lescinsky is also charged with witness tampering for making false representations to a supervisor and with falsifying official reports. After the incident, Lescinsky informed his supervisor that the assault occurred because T.R. and A.N. were wrestling, when he knew that to be false. He similarly falsified an official incident report and use of force report.
The maximum sentence for deprivation of rights under color of law is 10 years in prison. The maximum sentence for witness tampering and false reporting is 20 years in prison. An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the FBI’s Las Vegas Division. It is being prosecuted by Trial Attorneys Adam Harris and Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Lescinsky Indictment
National Police Week: We Must Commit Ourselves to the Well-Being of Law Enforcement OfficersRead the Press Release
The hard truth is that every year more police officers take their own lives than are killed in the line of duty by criminals. And for every officer who commits suicide, there are many more officers who, whether they recognize it or not, are suffering from the symptoms of Post-Traumatic Stress Disorder.
But this is not surprising when one considers all that we ask of our officers. Day in and day out, we expect them to apprehend armed and violent criminals, engage in high speed chases, notify next of kin that a loved one has died unexpectedly, respond to turbulent domestic violence calls, render first aid to a shooting victim or a badly-injured child, process horrific motor vehicle accidents and crime scenes, make split-second decisions that literally can be a matter of life or death, resolve tough legal questions on the spot in emerging and uncertain situations, and find overdose victims dead in public places or their own childhood bedrooms. These relentless demands exact an undeniable toll.
Added to this burden are the times when a small percentage of officers abuse their positions of authority. This abuse is unconscionable and sometimes even criminal. It weighs heavily on the vast majority of officers who honorably serve their communities. No one in a position of trust – a teacher, a doctor, a lawyer, a politician, a member of the clergy or a police officer – should ever violate his or her oath to serve others. Society is appropriately outraged whenever that trust has been violated. But the repercussions for police misconduct are unique and can be devastating. Not only have we seen wholesale community uprisings, but innocent officers have been murdered for no other reason than they were an officer in uniform. The reality of such senseless violence also looms over all officers and their families.
Nor is it surprising that the law enforcement community rarely talks about officer suicides or PTSD. Police work attracts a special breed: People who will run toward gunfire and chase an armed felon. The culture of the profession is one that calls for exceptional courage delivered quietly and humbly. As a result, too many officers and agents suffer in silence, inhibited and unable to seek the help that others reach for in much less trying circumstances.
As Connecticut’s United States Attorney, I deeply admire and respect our law enforcement partners who put themselves at risk every day for our protection and safety. I am equally concerned for the well-being of these officers and their families. Officer wellness is a subject that our Office has championed. We are fortunate to have many forward thinking Chiefs of Police and leaders who are committed to ensuring that we meet the mental health needs of the men and women who serve us. This week, the Norwalk Police Department will hold a memorial honoring officers killed in the line of duty as well as those who took their own lives. And the Connecticut Police Chiefs Association will hold an Officer Wellness training, focused on managing the aftermath of trauma, which is open to all local, state and federal officers in the state.
We need to prioritize the well-being of our officers. The results will both improve relations with the public we serve, and provide personal and professional fulfillment for the men and women who keep us safe.
In 1962, President John F. Kennedy signed a proclamation that designated May 15 as Peace Officers Memorial Day and the week in which that date falls as Police Week. This week in particular, I salute all of law enforcement for your quiet courage and thank you for dedicating your lives to protecting us.
Deirdre M. Daly
U.S. Attorney, District of Connecticut
May 17, 2016Marion Man to Serve Ten Years on Crack Cocaine OffenseRead the Press Release
On May 16, 2016, Tommy T. Langston, a/k/a "G," 38, of Marion, was sentenced for a crack cocaine offense, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Langston, who had previously pled guilty to an indictment charging conspiracy to distribute 28 grams or more of crack cocaine, was sentenced to 120 months in federal prison, to be followed by 8 years of supervised release, and fined $400.00. The offense occurred between October 2014 and July 2015, in Williamson and Jackson Counties. Evidence at the plea and sentencing hearings established that Langston was involved with others in the distribution of crack cocaine in the Marion and Carbondale areas. During the investigation, Langston sold crack cocaine to confidential sources working for law enforcement. At sentencing, the judge found that Langston was responsible for the distribution of 154.2 grams of crack cocaine. Co-defendant Tammy R. Whitton has previously been sentenced to 120 months in prison for her role in the crack cocaine conspiracy. Two co-defendants have pled guilty to their roles in the crack cocaine conspiracy and are awaiting sentencing. One co-defendant has pled not guilty and is awaiting trial.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Drug Enforcement Administration, Jackson County Sheriff’s Office, and Carbondale Police Department. The Williamson and Jackson County State’s Attorney’s Offices also assisted in the investigation.
Man Pleads Guilty to Distributing Heroin and Crack CocaineRead the Press Release
A man who sold heroin and crack cocaine pled guilty today in federal court in Cedar Rapids.
Chanord Hawkins, age 23, from Cedar Rapids, was convicted of one count of distributing heroin and crack cocaine.
In a plea agreement, Hawkins admitted that, in July 2015, he sold heroin and crack cocaine to another person. Hawkins also admitted that he again sold heroin to another person in September 2015 and had previously sold heroin to other people in larger amounts. Overall, Hawkins admitted he was responsible for distributing at least 40 grams of heroin.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Hawkins remains in custody of the United States Marshal pending sentencing. Hawkins faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, a $100 special assessment, and at least 3 years of supervised release following any imprisonment.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Cedar Rapids Police Department and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and the Linn County Medical Examiner’s Office and is being prosecuted by Assistant United States Attorney Anthony Morfitt.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-00008-1.
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Littleton Man Sentenced for Shipping Heroin Through MailRead the Press Release
WILMINGTON – The United States Attorney’s Office announced that on Friday, May 13, 2016 in federal court, Senior United States District Judge James C. Fox sentenced JASON BRIAN BUNCH, 42, of Littleton, North Carolina to 81 months imprisonment, followed by 5 years of supervised release.
BUNCH was named in a Criminal Information filed on January 25, 2016 charging him with conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin and a quantity of marijuana. On February 16, 2016, BUNCH pleaded guilty to that charge.
Between September and October 2014, BUNCH shipped 117 grams of black tar heroin through the mail. BUNCH lived in Mendocino, California at the time and shipped the heroin to a confidential informant located in Nashville, North Carolina. While in North Carolina on January 30, 2015, BUNCH was arrested by the Drug Enforcement Administration and Nash County Sheriff’s Office. Agents executed a search warrant at BUNCH’s North Carolina home and seized cocaine, heroin, marijuana and money during the search.
Investigation of this case was conducted by the Drug Enforcement Administration, United States Postal Service, United States Marshals Service, Internal Revenue Service, and the Nash County Sheriff’s Office. Assistant United States Attorney Dena King represented the government.
Lincoln County man sentenced to over 11 years in Federal prison for trafficking pain pills from Florida to West VirginiaRead the Press Release
CHARLESTON, W.Va. – A Lincoln County man was sentenced to 11 years and seven months in federal prison for trafficking pain pills, announced Acting United States Attorney Carol Casto. William Harrison Meade, 46, of Branchland, previously pleaded guilty in September 2015 to conspiring to distribute oxycodone.
Meade admitted that in 2010 and 2011, he conspired with individuals in Florida and Lincoln County to distribute oxycodone. Meade also admitted that he laundered the proceeds of the drug sales through a West Virginia bank account for withdrawal in Florida in an effort to conceal the source of the cash and the pills.
Lester Taylor, of Daytona Beach, Florida, was one of Meade’s associates in the drug operation. Taylor acquired oxycodone pills in Florida and used various methods to transport the drugs to West Virginia for distribution by Meade. Taylor sent 15 priority overnight packages containing oxycodone pills to Meade at his home in Branchland. Law enforcement intercepted the last package on January 8, 2011, which contained 1,000 oxycodone pills. After Meade sold the oxycodone pills, he deposited the drug proceeds into bank accounts in Barboursville and Huntington. Following the deposits in West Virginia banks, Taylor and others withdrew the money in Florida. Meade deposited $149,500 in drug proceeds into Taylor’s Fifth Third Bank account at the Huntington branch.
Taylor admitted to obtaining prescriptions for oxycodone and hydromorphone from physicians in Florida and then having the prescriptions filled at pharmacies in West Virginia. The pharmacy primarily used for this unlawful activity, A+ Care Pharmacy, formerly located in Barboursville, has since been prosecuted in federal court by the U.S. Attorney’s Office for the Southern District of West Virginia, and is no longer in business.
In November 2015, Taylor was sentenced to 10 years in federal prison and a $10,000 fine for his role in the pain pill distribution and money laundering conspiracy.
The West Virginia State Police, the Internal Revenue Service’s Criminal Investigation division, and the Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Monica D. Coleman handled the prosecution. United States District Judge Thomas E. Johnston imposed Meade’s sentence.
These cases are 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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Limestone Man Sentenced to One Month in Prison for Making False StatementsRead the Press Release
Contact: James M. Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Mark Durinski, 64, of Limestone, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to one month in prison and three years of supervised release for making false statements and entries in annual reports filed with the U.S. Department of Labor. He was also ordered to pay $53,544.98 in restitution to the Local from which he stole money as well as $300.00 in special assessments. Durinski pleaded guilty in U.S. District Court to three felony counts of making the false statements on September 14, 2015 and subsequently paid $20,000 in restitution.
Court records reveal that Durinski was employed by the Defense Finance Accounting Service (“DFAS”) and was also a founding member and the president of the local American Federation of Government Employees (“AFGE”) union that represented DFAS employees in Limestone. In his capacity as local AFGE president, he signed and certified as true annual Labor Department reports that failed to disclose that he received over $50,000 from the local to reimburse him for travel and other expenditures for which he was also reimbursed by U.S. Department of Defense or another source. In imposing the prison sentence, Judge Woodcock stated it was “striking that [the defendant] would cheat the very organization that he had founded and take money from employees who trusted him.”The investigation was conducted by the U.S. Department of Labor Office of Labor-Management Standards.
KC Man Sentenced to 25 Years for Armed Restaurant RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for the armed robbery of Pancho’s Mexican Food.
Jamane J. Smith, 31, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to 25 years in federal prison without parole.
On Nov. 18, 2015, Smith pleaded guilty to one count of robbery and one count of using a firearm during a crime of violence. Smith admitted that he robbed Pancho’s Mexican Food, 3540 Main St., Kansas City, Mo., on Feb. 2, 2014. Smith admitted that he used and carried a handgun during the commission of the robbery.
According to court documents, Smith ordered a meal at Pancho’s and attempted to pay with a counterfeit $20 bill. When told the counterfeit bill would not be accepted, Smith pulled a gun hanging from his waist, pointed it at the Pancho’s employee and stated, “Give me the money.” The employee handed him $200 and Smith left the restaurant.
This case was prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Joplin Man Pleads Guilty to $5.6 Million Cooking Oil SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man pleaded guilty in federal court today to charges related to a scheme to sell more than $5.8 million worth of spent cooking oil – stolen from restaurants across five states – to a recycling facility in Oklahoma.
Jeffery Lynn Fleming, 60, of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to transporting stolen goods across state lines, money laundering and filing a false tax return.
Jeffery Fleming, who operated Fleming Recycling, LLC, in Carterville, Mo., sold approximately $5,831,567 worth of spent cooking oil that had been stolen from restaurants to Brooks Grease Service, a grease recycling business in Tulsa, Okla., between Nov. 1, 2010, and Sept. 30, 2011.
Spent cooking oil is the by-product of cooking oil that restaurants use for frying food. Restaurants had on-site collection tanks in which their spent cooking oil was stored. Many restaurants established contracts with various companies for the collection and removal of spent cooking oil. Brooks Grease Service sent a tanker truck to Fleming Recycling on an almost-daily basis, according to court documents. Each tanker truck held approximately 45,000 pounds of stolen spent cooking oil that was valued at approximately $20,000.
Jeffery Fleming was repeatedly told by undercover agents that the spent cooking oil he was purchasing, storing at his storage facility and selling to Brooks Grease Service was stolen. Undercover agents also negotiated a deal with Jeffery Fleming for the use of one of his trucks. Undercover agents told him they were using his truck to steal spent cooking oil; they charged him one-fourth the going price for the entire load of stolen spent cooking oil hauled by his employees in his collection truck.
Jeffery Fleming also admitted that he significantly underreported his gross receipts on his 2007 federal income tax return.
Fleming’s brother and co-defendant, Brian Dale Fleming, 49, of Mountain Grove, Mo., pleaded guilty on Nov. 19, 2015, to his role in the conspiracy to transport stolen property across state lines and to money laundering. Brian Fleming has also pleaded guilty to being a felon in possession of a firearm and ammunition. Brian Fleming admitted that he used his business, Tri-State Grease, to transport stolen spent cooking oil to Fleming Recycling. Brian Fleming admitted that he trained, encouraged and aided others to steal spent cooking oil from businesses in order to sell it to Fleming Recycling.
Under the terms of their plea agreements, Jeffery and Brian Fleming must forfeit to the government $595,429 that was seized by law enforcement officers, which was derived from the sale of stolen spent cooking oil.
Co-defendants Virgil Orin Bird, Jr., 53, and Neal Sawyer Robbins, 29, both of Joplin, were employees of Fleming Recycling. They each pleaded guilty to money laundering related to a payment for spent cooking oil they believed had been stolen and transported across state lines.
This case is being prosecuted by Assistant U.S. Attorneys Abram McGull, II and Patrick Carney. It was investigated by IRS-Criminal Investigation, the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jefferson County, WV man sentenced to 10 years in prison for methamphetamine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kearneysville, West Virginia resident Francisco Gaspar Sanchez, 57, originally of Mexico, was sentenced to 121 months in prison for methamphetamine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Evidence presented during a two day trail in February 2016 indicated that Sanchez conspired with another individual to sell crystal methamphetamine in Jefferson County, West Virginia. Specifically, Sanchez was discovered in possession of methamphetamine in Jefferson County in April 2014.
Following the trial, a jury found Sanchez guilty of one count of “Conspiracy to Distribute Methamphetamine,” and one count of “Possession with Intent to Distribute Methamphetamine.” He was sentenced to 121 months in prison on each count. The sentences will run concurrently for a total of 121 months in prison.
Assistant U.S. Attorneys Paul Camilletti and Anna Krasinski, along with Special Assistant U.S. Attorney Lara Omps-Botteicher, also of the West Virginia Attorney General’s Office, prosecuted the case on behalf of the government. The West Virginia State Police and the Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Illegal Interstate Marijuana Operation Results in Money Laundering ConvictionRead the Press Release
EUGENE, Ore. – A local marijuana proprietor, Eric Scully, 32, of Lane County, has pleaded guilty before U.S. District Judge Michael McShane in the District of Oregon for engaging in money laundering and using a fictitious name on a U.S. Postal Service shipping account.
According to the plea agreement, Scully admitted to engaging in a monetary transaction involving more than $10,000 of criminally derived proceeds, as well as creating a fictitious U.S.P.S. Click-N-Ship account for use in shipping packages of marijuana to multiple states. The Information sets forth the details of the underlying illegal marijuana distribution operation, which involved growing large quantities of marijuana in Eugene and then illegally distributing it through a covert mail operation, shipping packages to a number of states that have not passed state laws relating to medical and/or recreational marijuana use. It further details how Scully laundered the proceeds by operating behind the veil of a coffee kiosk purporting to be a legitimate business. Throughout the course of the operation, Scully used the unlawful proceeds gained from interstate marijuana sales to amass a variety of assets that will be criminally forfeited to the government as part of the plea agreement. Scully faces a statutory maximum sentence of 10 years in prison for the money laundering count, and up to five years for the fictitious name count.
Also charged in the case are Joan Scully, 62, and Krystin Livingston, 34, of Lane County. Joan Scully pleaded guilty to structuring deposits of drug proceeds to avoid financial reporting requirements, and Livingston pleaded guilty to using the fictitious U.S.P.S. shipping account. Sentencing for all three defendants will take place on September 8, 2016, at 2:30 p.m. in Eugene.
The Federal Bureau of Investigation and the Interagency Narcotics Enforcement Team (INET), along with assistance from the U.S. Postal Inspection Service, investigated this case. The case is being prosecuted by Assistant U.S. Attorney Nancy M. Olson.
Holden Woman Plead Guilty to Federal Drug Conspiracy ChargeRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Sara Monroe, 29, of Holden, Maine, pled guilty in U.S. District Court in Bangor, Maine to conspiracy to possess with the intent to distribute and distribute heroin. The charge carries a maximum potential penalty of 20 years imprisonment, a minimum of three years supervised release, and a maximum $1,000,000 fine.
According to court records, between February 2015 and September 2015, Monroe conspired with Mario Lee, a/k/a “Moe” and others known and unknown to distribute heroin in the Bangor area and elsewhere. The heroin was packaged in “bundles” consisting of ten small baggies containing heroin and bundled together with a rubber band. The bundles were supplied by Lee and distributed by Monroe. Monroe also provided transportation for Lee so that he could distribute heroin to others.
The case was investigated by the Maine Drug Enforcement Agency and the U.S. Drug Enforcement Administration.
Harford County Man Admits to Using a Computer to Attempt to Coerce a Minor to Engage in SexRead the Press Release
Baltimore, Maryland – William Ray Wagner, age 33, a resident of Harford County, pleaded guilty today to use of interstate facilities to coerce a minor to engage in sex.
The guilty plea 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; Harford County Sheriff Jeffrey R. Gahler; and Harford County State’s Attorney Joseph I. Cassilly.
According to his plea agreement, in the fall of 2014, Wagner was communicating on Facebook with an individual he believed was a 14 year old girl who lived with her parents. The individual was actually an undercover Harford County detective.
In early October 2014, Wagner attempted to meet the individual to engage in sex, and used his computer to initiate graphic discussions about sex. He ultimately arranged to meet the individual at a restaurant in Bel Air on October 13, and then walk to a nearby trail to engage in sex. On that date, Wagner arrived at the agreed upon meeting location with a blanket and two condoms. He was arrested.
Wagner had previously been convicted of unlawful contact with a minor in 2009 and as a result, was required to register as a sex offender in Maryland. In April 2014, Wagner was arrested in Harford County and charged with failure to register as a sex offender.
As part of his plea agreement, Wagner 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).
Wagner and the government have agreed that if the Court accepts the plea agreement Wagner will be sentenced to 10 years in prison followed by a lifetime of supervised release. U.S. District Judge George L. Russell III has scheduled sentencing for September 9, 2016 at 2:00 p.m.
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 the FBI, Harford County Sheriff‘s Office and Harford County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
Guilty Plea in International Internet Conspiracy CaseRead the Press Release
Gulfport, Miss – Genoveva Farfan one of twenty-one defendants indicted in a nine-count federal indictment filed in the Southern District of Mississippi against defendants in Nigeria, South Africa, Canada, Indiana, California, New York and Wisconsin, entered a guilty plea to conspiracy to commit offenses against the United States and aggravated identity theft, announced U.S. Attorney Gregory K. Davis.
Farfan, 46, of Los Angeles, California, entered the guilty pleas before United States District Judge Sul Ozerden Monday May 16, 2016. Farfan faces a maximum of five years in prison, $250,000 fine and three years of post-release supervision for the conspiracy and an additional 4 years for two counts of aggravated identity theft. Farfan admitted an on-line relationship led to mailing hundreds of counterfeit checks in an advance fee scheme and receiving and using the numerous victims’ personal identifying information and credit card information.
The indictment alleges a West African transnational organized crime enterprise involved in numerous complex financial fraud schemes over the internet. This mass marketing fraud includes romance scams, re-shipping scams, fraudulent check scams and work-at-home scams, along with bank, financial and credit card account take-overs. Potential victims can find information and a claim form on the website for the United States Attorney’s Office for the Southern District of Mississippi at: http://www.justice.gov/usao/mss/scams.
The investigation was initiated in October, 2011, by Homeland Security Investigations agents in Gulfport after U.S. law enforcement officers were contacted by a female victim in Mississippi who was the victim of a sweetheart scam. The victim received a package in the mail requesting that she reship cell phones to an address in Pretoria, South Africa. The investigation later revealed that the cell phones were purchased using stolen personal identity and credit card information of persons in the United States. Investigators have identified hundreds of victims of this scam in the United States, resulting in the loss of millions of U.S. dollars.
The indictment is the result of an investigation led by the HSI Gulfport office in partnership with the U.S. Postal Inspection Service, South African Police Service, Toronto Police, HSI Cyber Crimes Center, Treasury Executive Office of Asset Forfeiture, HSI Ontario, HSI Charleston, Interpol South Africa, HSI Pretoria and HSI Atlanta.
The Department of Justice Office of International Affairs assisted in the provisional arrests of ten defendants in Pretoria, South Africa. Another defendant was arrested in Toronto, Canada, the remaining defendants were arrested in the United States.
The case in Mississippi is prosecuted by Assistant U.S. Attorney Annette Williams and main Justice Trial Attorneys Peter V. Roman of the Computer Crimes Intellectual Property Section and Conor Mulroe of Organized Crime Gang Section.Fort Smith Man Arraigned on Charges of Defrauding Investors and the Department of Health and Human ServicesRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that William Jackson Moates, Jr., age 49, of Fort Smith, Arkansas, appeared before United States Magistrate Judge Mark Ford for arraignment on a 25 count Indictment charging him with Money Laundering, Wire Fraud, Theft Concerning a Program Receiving Federal Funds, Mail Fraud, Bank Fraud, and Theft or Embezzlement from Employee Benefit Plan.
The charges in an indictment are only allegations. A person is presumed innocent unless or until he or she is proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Federal Bureau of Investigation (FBI), Health and Human Services - Office of Inspector General, and the Department of Labor – Employee Benefits Security Administration. Assistant United States Attorney Aaron Jennen is prosecuting the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records Website at www.Pacer.gov