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Thursday 12 May 2016
Des Allemands Woman Pleads Guilty to Mail Fraud in Aftermath of BP Oil SpillRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MELISSA ANN DURAN, age 42, a resident of Des Allemands, pled guilty today before Judge Carl J. Barbier, to a one-count mail fraud indictment.
According to court documents, the Gulf Coast Claims Facility (GCCF) made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion that occurred on April 20, 2010. The GCCF required individuals to verify loss of income. On August 23, 2010, DURAN applied for disaster assistance funds, representing that she worked as seafood process for a commercial fisherman during for two years before the oil spill. However, DURAN had never worked as a seafood processor for the stated commercial fisherman, and she submitted or caused to be submitted false documentation to establish her false earnings. Based on her fraudulent application, DURAN received approximately $33,800 to which she was not entitled.
DURAN faces a maximum penalty of twenty years, a $250,000 fine, three years of supervised release following imprisonment, and a $100 special assessment. U.S. District Judge Carl J. Barbier set sentencing for August 18, 2016.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Department of Justice Files Amicus Brief in Idaho Right to Counsel CaseRead the Press Release
The Department of Justice filed an amicus curiae brief late yesterday in the Supreme Court of Idaho in Tracy Tucker et al. v. State of Idaho, et al. The brief articulates the United States’ position that criminal defendants who cannot afford an attorney may bring a prospective civil lawsuit to prevent violations of their constitutional right to counsel under the Sixth Amendment rather than waiting to bring claims following a conviction that resulted from inadequate representation.
The department’s brief focuses on the importance of such prospective civil claims to uphold the right to counsel and to ensure that states comply with the Supreme Court’s ruling in Gideon v. Wainwright, which held that all persons are entitled to a lawyer even if they are too poor to pay for one.
“This country is dedicated to the idea that every single person is entitled to equal justice under the law, regardless of wealth or prominence,” said Attorney General Loretta E. Lynch. “The right to adequate counsel is an essential safeguard of our commitment to equal justice – and it is the responsibility of the states to protect that right, to uphold that principle, and to ensure that every defendant has access to competent counsel.”
“Our country and our Constitution guarantee all people – regardless of their money or their means – equal access to justice,” said Deputy Assistant Attorney General Gregory Friel of the Civil Rights Division. “Even today in the 21st century, too many poor defendants find that, in reality, the promise of Gideon seems distant and out of reach as they try to navigate our legal system and secure their rights.”
“Indigent defendants must have the ability to bring prospective civil claims for the constructive denial of counsel,” said Director Lisa Foster of the Office for Access to Justice. “Foreclosing this type of claim would prevent courts from effectively remedying systemic violations of Gideon.”
“The criminal justice system works well only when indigent defendants are adequately represented,” said U.S. Attorney Wendy Olson of the District of Idaho. “The Constitution guarantees this right. The purpose of this brief is to ensure that indigent defendants in Idaho have a meaningful legal tool to effectuate that constitutional right when the provision of public defense is failing on a system-wide level.”
In Tucker, plaintiffs allege that their Sixth Amendment right to counsel has been violated by the state’s failure to provide adequate resources to support effective defense services for poor defendants. According to plaintiffs, due to insufficient oversight, training and funding, public defenders across the state are unable to engage in many of the basic functions of representation, including meeting with clients in a meaningful way prior to critical stages of their legal proceedings, conducting a significant investigation into their cases, filing substantive motions, retaining experts to challenge the prosecution’s allegations or devoting the time necessary to prepare for hearings and trials. The plaintiffs claim that the conditions are systemic and widespread such that defendants in Idaho who cannot afford an attorney are constructively denied their right to counsel.
In its amicus brief, the department clarifies the distinction between filing a civil suit prior to conviction based on a state-wide constructive denial of counsel under Gideon, and a civil suit filed after conviction based on ineffective counsel in a particular instance under Strickland v. Washington. The amicus brief explains that the plaintiffs’ complaint “is not with their individual lawyers’ competence” but with the state’s systemic failure to provide legal representation to defendants who cannot afford it, a fundamental right recognized by the court in Gideon. The department’s brief also notes that there is no legal barrier to bringing such a civil suit prior to conviction, and moreover, that seeking prospective injunctive relief is the only way a court can identify and remedy system-wide noncompliance with Gideon.
The trial court ruled that plaintiffs could not bring a prospective civil claim for constructive denial of counsel. The Idaho Supreme Court will now consider whether plaintiffs’ claim can proceed.
This brief represents the department’s second filing to address the right to counsel in a state’s highest court. In September 2015, the department filed a similar brief in the Supreme Court of Pennsylvania in Adam Kuren, et al. v. Luzerne County et al. The Pennsylvania Supreme Court has not yet ruled in that case.
Tucker v. Idaho Amicus Brief
Davenport Man Found Guilty of Felon in Possession of a FirearmRead the Press Release
DAVENPORT, IA – On May 11, 2016, Xavier Elfonsto Buckner, age 27, of Davenport, Iowa, was found guilty after a three day jury trial presided over by Chief District Court Judge John A. Jarvey, announced Acting United States Attorney Kevin E. VanderSchel.
The jury found that on August 11, 2015, Buckner knowingly possessed a .380 caliber Smith and Wesson Bodyguard handgun that was manufactured outside of the state of Iowa. Evidence presented at trial described that Buckner possessed this handgun after a vehicle, in which Buckner was a passenger, fled from the Davenport Police Department. An Iowa Division of Criminal Investigation Criminalist testified that based on ballistics testing, the firearm seized from Buckner on August 11 was the same firearm connected to spent shell casings seized after an earlier shooting that occurred in the 700 block of W. 14th Street on August 3, 2015. Buckner was found to have a conviction in 2006 for a crime punishable by imprisonment for a term exceeding of one year.
This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
Credit Union Lending Manager Pleads Guilty to Embezzling $840KRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that PAMELA MALLORY, 42, of Enfield, waived her right to indictment and pleaded guilty today in Hartford federal court to embezzling more than $840,000 from her employer, 360 Federal Credit Union.
According to court documents and statements made in court, MALLORY was employed as the lending manager of Windsor Locks-based 360 Federal Credit Union. In her position, MALLORY had access to loan files and authorized loans, including home equity lines of credit (“HELOCs”). From 2009 through 2016, MALLORY opened five different HELOCs in the name of a credit union member and increased the credit limit of those HELOCs on at least 15 occasions, all without the knowledge or consent of the credit union member. Initially, MALLORY perpetrated this scheme by opening subsequent HELOCs to pay off earlier, smaller HELOCs. Later in the scheme, rather than opening new HELOCs, she simply increased the credit limits on two of the fraudulent HELOCs to support her spending.
In order to evade detection, MALLORY made minimum, interest-only payments on the HELOCs from her own checking account.
When 360 Federal Credit Union discovered the scheme in January 2016, the credit union member’s property, which is worth less than $150,000, supported two HELOCs, each with credit limits of $417,000, that MALLORY had fully drawn down.
In total, MALLORY stole approximately $840,378.28 from 360 Federal Credit Union and used the proceeds of the scheme to pay her own creditors.
MALLORY pleaded guilty to one count of embezzlement by a credit union employee, a charge that carries a maximum term of imprisonment of 30 years. She is scheduled to be sentenced on August 17, 2016, and is released on a $100,000 bond.
This matter is being investigated by Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Concord Man Pleads Guilty to May 2015 Robbery of Bank of New HampshireRead the Press Release
Concord, N.H.—Emily Gray Rice, United States Attorney for the District of New Hampshire, today announced that Scott Lojko, 40, of Concord, New Hampshire, pleaded guilty to a federal indictment charging him with bank robbery in violation of Title 18, United States Code, Section 2113(a).
According to the indictment, statements made in court, and other public records in the case, Lojko robbed a Bank of New Hampshire branch location at 167 N. Main Street, Concord, New Hampshire on May 18, 2015. Lojko approached the teller with a demand note directing her to “relax and act normal” and to hand over “all the money.” The teller complied, providing Lojko approximately $6,090 in bank funds. Lojko fled the bank by foot before retrieving his parked vehicle on nearby Court Street. Concord Police detectives were able to identify Lojko from bank and other surveillance with the assistance of several civilian resources. A few days later, a search warrant executed at Lojko’s Concord residence led to the recovery of the clothes Lojko wore during the robbery as well as $4,510 in U.S. currency that constituted the remaining proceeds of the robbery. A federal indictment charging Lojko with bank robbery was returned by a grand jury sitting in Concord on August 21, 2015.
Lojko’s plea agreement includes a binding stipulated sentence of 48 months’ incarceration. A sentencing hearing has been scheduled for August 23, 2016, in front of U.S. District Judge Landya McCafferty. At that time, the Court will decide whether to accept the plea agreement and impose the agreed-upon period of incarceration, as well as any other conditions of Lojko’s sentence. Lojko also faces a mandatory restitution order to the Bank of New Hampshire.
The case was investigated by the Concord Police Department with assistance from the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Cocoa Man Charged with Sex Trafficking and Child EnticementRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Kennedy “KJ” Harris, Jr. (22, Cocoa) with sex trafficking of a minor and child enticement. If convicted, he faces a maximum penalty of life in federal prison.
According to court documents, in January 2016, Harris took in a 16-year old girl, after she ran away from home. He promised to keep her safe, and to clothe and feed her. Instead, Harris took sexually suggestive photographs of the girl and posted ads online advertising her for sex. He also enticed the teen to engage in sexually explicit conduct for the purpose of photographing her. Over the course of approximately two weeks, the victim had sex with four to five men per day, and gave the money she received to Harris. On February 10, 2016, the victim was recovered by the Cocoa Police Department.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation, the Brevard County Sheriff’s Office, and the Cocoa Police Department. It will be prosecuted by Assistant United States Attorney Tiffany L. Cummins.
Chambersburg Man Pleads Guilty to Heroin Conspiracy ChargeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Chambersburg man has pled guilty to conspiring to possess and distribute heroin.
According to United States Attorney Peter Smith, Rashawn Spriggs, age 28, of Chambersburg, pled guilty before United States District Court Chief Judge Christopher C. Conner to conspiring to distribute more than 1,000 grams of heroin from October 1, 2015 to January 7, 2016 in Franklin County and elsewhere.
Sentencing is deferred pending the preparation of a presentence report. Co-defendant Jerthione Bell has already pled guilty and is also awaiting sentencing. Co-defendants Addan Brito-Torres, Yovelin Mendez-Marte, Jose Perez-Delgado, Joshua Baker, Brandon Morant and Deajon Spriggs are all awaiting trial. All were indicted by a federal grand jury in January 2016.
The investigation is being conducted by the Harrisburg Office of the Drug Enforcement Administration, the Pennsylvania State Police and the Lancaster and Franklin County Drug Task Forces. The case is being prosecuted by Assistant United States Attorney William A. Behe.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment with a mandatory minimum 10 year term 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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Carbondale Man Sentenced to 78 Months in Prison for Receiving Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 27-year-old Carbondale man was sentenced today to 78 months in prison by Senior U.S. District Court Judge Richard P. Conaboy in Scranton, for using a computer to download child pornography from an internet website.
According to United States Attorney Peter Smith, the defendant, Edward Jeter, previously pleaded guilty to receiving child pornography between the dates of November 2014 and August 2015. Agents executed a search warrant and found more than 90 videos and more than 2100 images of child pornography on Jeter’s computer, including images of children between the ages of 3 and 14 being sexually molested by adults.
Jeter was charged in a criminal Information filed by the United States Attorney in November 2015, as a result of an investigation conducted by the Federal Bureau of Investigation.
Judge Conaboy also ordered Jeter to serve five years on supervised release after serving his prison sentence. Jeter must also register as a sex offender, receive sex offender treatment, and abide by restrictions on associating with minors.
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."
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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Buffalo Man Pleads Guilty to Drug 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 Jonathan Ortiz, 23, of Buffalo, NY, pleaded guilty to attempted possession with intent to distribute cocaine before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that law enforcement officers intercepted a package mailed from Puerto Rico to a residence on Hudson Street in Buffalo. The package contained a set of audio speakers, inside of which were four packets of cocaine weighing approximately one pound (one-half a kilogram). Ortiz and co-defendant Ivan Hernandez attempted to retrieve the package as it was delivered. The defendants were arrested after a sensor alerted that the package was opened.
Hernandez was convicted and sentenced to 30 months in prison.
Today’s plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division and the U.S. Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge of the Boston Division.
Sentencing is scheduled for August 24, 2016, at 11:00 a.m. before Judge Wolford.
Bristol Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
ABINGDON, VIRGINIA – A previously convicted sex offender, who moved from Georgia to Virginia without properly fulfilling the registration requirements for sex offenders, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon after previously pleading guilty.
Scott Stewart Cammorto, 36, of Bristol, Va., pled guilty in December 2015 to one count of knowingly failing to register as sex offender. Today in District Court, Cammorto was sentenced to 41 months’ imprisonment, to be followed by 8 years’ supervised release.
“The registration and monitoring of sex offenders is an important tool for protecting the community and keeping our citizens safe,” United States Attorney John P. Fishwick Jr. said today. “When individuals fail to fulfill their requirements under the rules of that ystem they must be held accountable.”
According to evidence presented by Special Assistant United States Attorney Kevin Jayne, in 1999 Cammorto was convicted in Georgia of rape and related offenses which required him to register as a sex offender. Upon his release from prison in 2013, Cammorto registered as a sex offender in Georgia. But in January 2014, Cammorto moved without updating his sex offender registration or otherwise notifying Georgia authorities. Georgia issued a warrant for his arrest.
In April 2015, Cammorto and his then-girlfriend moved from Georgia to Bristol, Virginia and established residency there. Again, Cammorto did not update his sex offender registration in Georgia and did not register as a sex offender in Virginia. Cammorto was arrested by Bristol, Virginia authorities in May 2015 after Cammorto was involved in a domestic dispute.
The investigation of the case was conducted by the United States Marshals Service. Special Assistant United States Attorney Kevin L. Jayne prosecuted the case for the United States.
Baton Rouge Attorney Charged with Distribution and Possession of Child PornographyRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment charging CHRISTOPHER G. YOUNG, age 53, of Baton Rouge, Louisiana, with distribution of child pornography and possession of child pornography.
According to the Indictment, YOUNG was the part-owner of a hotel in the country of Costa Rica, where he traveled frequently for business and leisure. YOUNG allegedly received two videos depicting prepubescent boys engaging in bestiality from an associate in Costa Rica. From 2013 through 2015, YOUNG allegedly distributed the child pornography videos to approximately 38 different individuals, on 33 separate occasions, through his smart phones.
The case is being investigated by the Federal Bureau of Investigation. This matter is being prosecuted by Assistant United States Attorneys Cam T. Le and René I. Salomon.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Barbour County Man Sentenced to 84 Months in Federal Prison for Receipt of Child PornographyRead the Press Release
Montgomery, Alabama – William Ray George (46), a resident of Clayton, Alabama, was sentenced to 84 months in federal prison for receipt of child pornography, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
In August of 2015, George pled guilty to receiving child pornography. The conviction stemmed from George’s collection of child pornography that contained images and videos of child sexual abuse. George received the child pornography through a peer-to-peer file sharing program, eMule. When interviewed by law enforcement, George admitted to viewing child pornography for the past thirteen years.
Chief United States District Judge W. Keith Watkins sentenced George to 84 months in federal prison to be followed by a life term of supervised release. George remains on bond and will turn himself into the Bureau of Prisons in June 2016.
“Receiving and viewing child pornography victimizes innocent children and cannot be tolerated,” stated U.S. Attorney Beck. “Child pornography poses a danger to the entire community because it exploits what should be our greatest treasure, our children.”
"ALEA is committed to teaming with our federal and local partners to investigate those who prey on our children," said Secretary of Law Enforcement, Stan Stabler.
This case was investigated by the Alabama State Bureau of Investigation. Assistant United States Attorneys Hollie Worley and Curtis Ivy prosecuted the case.
Avoca Man Sentenced to Two Years’ Imprisonment for Providing False Information to Firearms Dealers in Connection with Firearms PurchasesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kevin Barnes, age 27, of Avoca, Pennsylvania, was sentenced today to serve two years in federal prison by U.S. District Court Judge Robert D. Mariani for providing false information to federally licensed firearms dealers in connection with his purchase of 10 firearms.
According to U.S. Attorney Peter Smith, in February 2015, Barnes entered a guilty plea to a charge in an Indictment which alleged he made false statements in completing ATF forms between November 7, 2011, and May 14, 2013. The defendant admitted that on ten separate occasions between those dates, he falsely stated when buying firearms that he was not an unlawful user of controlled substances. Under federal law, unlawful users of controlled substances are prohibited from purchasing and possessing firearms.
In addition to the two-year imprisonment sentence, Judge Mariani ordered Barnes to be placed on two years of supervised release following service of his prison sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Todd Hinkley prosecuted the case.
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Armed Career Criminal from Albuquerque Pleads Guilty to Violating the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Jose Velasquez, 29, of Albuquerque, N.M., pleaded guilty today in federal court to violating the federal firearms laws. Under the terms of his plea agreement, Velasquez will be sentenced to 15 years in federal prison. The guilty plea was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
Velasquez, a career criminal whose prior felony convictions for armed robbery and aggravated battery on a peace officer, is being prosecuted 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.
Velasquez was arrested on state charges on Aug. 4, 2015, and subsequently was charged in a federal criminal complaint on Aug. 17, 2015, with being a felon in possession of a firearm and ammunition. The state charges were dismissed in favor of federal prosecution.
Court records reflect that on Aug. 4, 2015, APD officers went to the area of Sunshine Terrace SE and University Blvd. SE in Albuquerque in response to a report that an armed man was making statements about getting into a “shoot … out with cops” and claiming that “the feds were after [him].” They arrested Velasquez on state charges after observing him walking around with a firearm. The officers found a semiautomatic pistol, ammunition and a small quantity of heroin in Velasquez’s pants pocket during a search incident to arrest. Velasquez subsequently was indicted and charged with being a felon in possession of a firearm and ammunition.
During today’s proceedings, Velasquez pled guilty to the indictment and admitted that he unlawfully possessed a firearm on Aug. 4, 2015. Velasquez has been in custody since his arrest and remains detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the ATF’s Albuquerque office and APD with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorneys Paul Mysliwiec and George C. Kraehe are prosecuting the case.
Another Defendant Pleads Guilty to Methamphetamine Conspiracy ChargeRead the Press Release
ROANOKE, VIRGINIA – The third member of a conspiracy that distributed methamphetamine in the Western District of Virginia pled guilty yesterday in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick announced today.
Sandra Gail Rymer, 35, of Dallas, Georgia pled guilty yesterday in District Court to one count of conspiring to distribute 50 grams of a mixture containing methamphetamine.
“Members of this conspiracy contributed to the growing threat of methamphetamine abuse throughout Southwest Virginia,” United States Attorney John P. Fishwick Jr. said today. “We will continue to be vigilant in working with our partners in law enforcement to combat this growing threat.”
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, the Wythe County Sheriff’s Office, the Smyth County Sheriff’s Office and the United States Marshals Service. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Allen Man Indicted for Failure to RegisterRead the Press Release
United States Attorney Randolph J. Seiler announced that an Allen, South Dakota, man has been indicted by a federal grand jury for Failure to Register.
Charles Tallman, a/k/a Charles Lee Longman, age 31, was indicted on October 20, 2015. Tallman appeared before U.S. Magistrate Judge Daneta Wollmann on May 6, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Tallman failing to register and update his registration as a convicted sex offender between February 24, 2014, and October 20, 2015.
The charge is merely an accusation and Tallman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Tallman was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Alaska Man Sentenced to 6½ Years in Prison for Trafficking Oxycodone and MorphineRead the Press Release
SACRAMENTO, Calif. —Charles Connor, 35, of Anchorage, Alaska, was sentenced today by United States District Judge Troy L. Nunley to six years and six months in prison for conspiracy to distribute and to possess with intent to distribute oxycodone, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, on December 17, 2012, the United States Postal Service in Anchorage intercepted a package sent to Connor from co-defendant Stacy Mistler, a resident of Marysville, California. The package contained 300 oxycodone 30‑mg tablets. Law enforcement delivered the package to Connor and then arrested him.
Further investigation revealed that between November 7, 2011, and December 17, 2012, Mistler sent prescription drugs from Northern California to Connor in Alaska. Connor made deposits into Mistler’s bank account to pay for the pills. In total, Mistler shipped approximately 9,600 pills to Connor. About two-thirds of the pills were oxycodone and one‑third of the tablets were morphine. In exchange for the pills, Connor deposited approximately $125,000 into Mistler’s bank account.
On April 21, 2016, Judge Nunley sentenced Mistler to 35 months in prison.
This case was the product of an investigation by the Drug Enforcement Administration, the United States Postal Service, the Alaska State Troopers, the California Department of Justice Bureau of Medi-Cal Fraud & Elder Abuse, the U.S. Department of Health & Human Services, and the U.S. Marshals Service. Assistant United States Attorney Christiaan Highsmith prosecuted the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. OCDETF’s principal mission is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Wednesday 11 May 2016
York Resident Sentenced for Heroin TraffickingRead the Press Release
HARRISBURG - The United States Attorney's Office for the Middle District of Pennsylvania announced that Andrew Gonzalez, age 30, York, Pennsylvania, was sentenced today to 15 months in prison by U.S. District Court Judge Yvette Kane for his role in a heroin trafficking scheme operated out of a York City home.
According to United States Attorney Peter Smith, the charge arose from a search warrant executed in March 2013 by York City Police. During the search, police found 35 grams of crack cocaine, cocaine, and heroin. The majority of the heroin – 900 bags – were found floating in a toilet.
Andrew Gonzalez and co-defendant Veronica Rivera pled guilty to conspiracy to distribute drugs. A third defendant, Andrew Alexander, was convicted last month after a jury trial. Ms. Rivera was sentenced to two years in prison on May 4, 2016. Alexander is awaiting sentencing.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department. Assistant United States Attorneys Michael A. Consiglio and Scott Ford prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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Wheeling Park Speech and Debate Program recognized for winning legacyRead the Press Release
WHEELING, WEST VIRGINIA – During an awards ceremony held this week in Wheeling, United States Attorney William J. Ihlenfeld, II recognized the Wheeling Park High School Speech and Debate Program for its longstanding tradition of excellence in academic achievement and its dedication to the personal and professional development of local students.
Nearly four decades ago, Frances Schoolcraft, then a teacher at Triadelphia High School, cultivated a group of students that excelled in academics, leadership, and public speaking. That group would evolve to become the Wheeling Park High School Speech and Debate Program. Schoolcraft led the program for twenty-five years and sparked a tradition of excellence. The program has won 224 tournaments and earned the West Virginia State Speech and Debate Tournament championship every year since 1980.
The Wheeling Park High School Speech and Debate Program has developed into a true dynasty. This year’s team was undefeated, winning nine tournaments throughout West Virginia and Pennsylvania. As a crowning achievement to a dominant season, the program earned its thirty-seventh consecutive state championship. Under the visionary leadership of Frances Schoolcraft, the program claimed twenty-five consecutive state titles. Wheeling Park High School teacher William Cornforth has continued to build the program’s legacy, winning another twelve successive state championships.
Alumni of the program have gone on to take center stage under the bright lights of Broadway, pursue Ivy League educations, appear on nationally recognized television programs, and become exemplary leaders in communities across the country. Teams and individual competitors have also enjoyed success in national high school speech and debate competitions. Earning a spot on the Wheeling Park Speech and Debate Team has become such a coveted accomplishment that the program has implemented a competitive process to select students for the team. Forty-three students represented the program during the 2015-2016 academic year.
The United States Attorney’s Awards ceremony was held at the United States Courthouse in Wheeling on Monday. Wheeling Park High School Speech and Debate Program founder Frances Schoolcraft attended the ceremony and helped accept the award.
Pictured from left to right: William J. Ihlenfeld, II, United States Attorney; Dianna Vargo, Superintendent of Ohio County Schools; Amy Minch, Principal of Wheeling Park High School; Joshua Fromhart, Debate Coach and Teacher at Wheeling Park High School; Frances Schoolcraft, Founder and Former Coach of Speech and Debate Team at Wheeling Park High School; Philip Schwarz, Co-captain of Speech Team; Hannah Meredith, Co-captain of Speech Team; Danielle Kaminski, Co-captain of Debate Team; James Miller, III, Co-captain of Debate Team
Washington, Pa., Man Pleads Guilty to Drug OffenseRead the Press Release
PITTSBURGH – A Washington County man pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Kenneth Marcel Higgenbotham, age 50, formerly of Washington, PA, pleaded guilty yesterday to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that from in and around October 2013, and continuing until in and around April 2014, in the Western District of Pennsylvania, Higgenbotham conspired to distribute and possess with intent to distribute more than 28 grams, but less than 112 grams, of crack cocaine.
Judge Hornak scheduled sentencing for September 27, 2016, at 1:30 p.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Troy Rivetti is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the FBI Greater Pittsburgh Safe Street Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Police Department conducted the investigation leading to the prosecution of Higgenbotham.
Violent Gang Members Sentenced in Drug Conspiracy in Bladen and Columbus CountiesRead the Press Release
RALEIGH – The United States Attorney’s Office announced that in federal court today SHAWN SCHENCK, of Clarkton, North Carolina, was sentenced by Senior United States District Judge Malcolm J. Howard, to 276 months after having pled guilty to Continuing Criminal Enterprise, in violation of Title 21, United States Code Section 848. Schenck was subject to a mandatory minimum sentence of twenty (20) years for his crimes.
SCHENCK was the leader of the PIRU MOB gang operating within Columbus and Bladen Counties. He was charged along with seven other co-defendnats, who also pled guilty and were sentenced by Judge Howard. ANTHONY JEROME MCLEAN pled guilty to Continuing Criminal Enterprise, in violation of Title 21, United States Code, Section 848, and was sentenced to 168 months in federal prison; JAMES CALVIN QUINN, ORLANDO RASHAUD CHILDRESS and HASKELL TURER WILLIAMS all pled guilty to possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(a), and were sententeced to terms of imprisonment of eighty-four (84) months each; MALCOLM HARVEY pled guilty to conspiracy to distribute heroin, in violation of Title 21, United States Code, Section 846, distribution of heroin, in violation of Title 21, United States Code, Section 841(a)(1), and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(a), and was sentenced to a term of imprisonment of sixty-two (62) months; HARRY LANE HARDIE, JR., pled guilty to possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(a), and was sentenced to a term of imprisonment of sixty (60) months; and COREY SCOTT ALFORD pled guilty to conspiracy to distribute heroin, in violation of Title 21, United States Code, Section 841(a)(1), and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(a), and was sentenced to a term of imprisonment of forty-six (46) months imprisonment in federal prison.
The PIRU MOB, a set of the United Blood Nation operating in Columbus and Bladen Counties, had a large distribution operation, supplying heroin, cocaine, and and prescription opioids in the Clarkton, North Carolina area. This drug distribution was often accompanied by violent shootings and retaliatory acts against rival gang members. SCHENCK and MCLEAN both ordered multiple hits on individuals who affected their drug distribution operation. These orders resulted in the shooting of at least one individual and the attempted shooting of several others. Gang members were initially arrested after making a drug run to Kannapolis, North Carolina, when investigators learned that they were bringing back a gang enforcer to finish a hit on a local rival.
“This type of gang violence is intolerable,” said Acting U.S. Attorney John Stuart Bruce. “The United States Attorney’s Office is committed to dismantling drug trafficking organizations such as this one, and ensuring that their members cannot perpetrate violent acts that jeopardize the safety of our communities.”
Columbus County Sheriff’s Office greatly appreciates the assistance provided by Bladen County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation; and the United States Attorney’s Office in getting these gang members off of Columbus County streets. Utilizing mutual aid optimizes the results of any investigation. Sheriff Hatcher is committed to ensuring that Columbus County residents feel safe and secure in their own environment. Sheriff Hatcher added, “Gang violence will not be tolerated in Columbus County.”
“This is a perfect example of when multiple agenies work together to combat the gang and drug problems in our two counties. I would like to extend my greatest appreciation to the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Columbus County Sheriff’s Office,” stated Bladen County Sheriff Jim McVicker.
Investigation of this case was conducted by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Columbus County Sheriff’s Office, and the Bladen County Sheriff’s Office. Assistant United States Attorney Leslie K. Cooley prosecuted the case for the United States.
Uzbeki National Charged with Conspiring and Attempting to Provide Material Support to ISILRead the Press Release
Defendant Allegedly Contributed Funds to Send a Co-Conspirator Overseas to Join ISIL and to Finance the Purchase of a Firearm Once the Co-Conspirator Arrived in Syria
A superseding indictment was unsealed in the Eastern District of New York charging Azizjon Rakhmatov, 28, an Uzbeki national, with conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and conspiring to use a firearm.
The charges were announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Robert L. Capers of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office, Commissioner William J. Bratton of the New York City Police Department (NYPD) and Special Agent in Charge Angel M. Melendez of U.S. Immigration and Customs Enforcement-Homeland Security Investigations (HSI) New York.
Rakhmatov, who is charged with four others whose arrests and indictments have previously been announced, is scheduled to be arraigned at 2:00 p.m. today before U.S. Magistrate Judge James Orenstein of the Eastern District of New York at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
As alleged in the third superseding indictment and other court filings, the investigation began when Abdurasul Juraboev, one of Rakhmatov’s co-conspirators, came to the attention of law enforcement. On an Uzbek-language website that propagates ISIL’s ideology, Juraboev posted an offer to engage in an act of martyrdom on U.S. soil on behalf of ISIL, such as killing the President of the United States. The investigation subsequently revealed that Juraboev and another co-defendant, Akhror Saidakhmetov, planned to travel to Turkey and then to Syria for the purpose of waging violent jihad on behalf of ISIL. Saidakhmetov was arrested on Feb. 25, 2015, at John F. Kennedy International Airport, where he was attempting to board a flight to Istanbul. Juraboev previously purchased a plane ticket to travel from New York to Istanbul and was scheduled to leave the United States in March 2015. Rakhmatov and three other co-defendants – Abror Habibov, Dilkhayot Kasimov and Akmal Zakirov – are charged with funding Saidakhmetov’s efforts to join ISIL. Juraboev pleaded guilty on Aug. 14, 2015, to conspiring to provide material support to ISIL.
As alleged in the third superseding indictment and other court filings, Rakhmatov helped to fund Saidakhmetov’s efforts to join ISIL. Specifically, Rakhmatov and Habibov discussed providing their own money to cover Saidakhmetov’s travel expenses and to purchase a firearm for Saidakhmetov once he arrived in Syria. Rakhmatov also agreed to raise money from others to fund Saidakhmetov’s travel. In the week leading up to Saidakhmetov’s scheduled departure, Rakhmatov transferred money into Zakirov’s personal bank account, which was intended to facilitate Saidakhmetov’s travel to join ISIL.
If convicted, Rakhmatov faces a maximum sentence of 50 years in prison. The charges in the superseding indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Assistant Attorney General Carlin joined U.S. Attorney Capers in extending his grateful appreciation to the FBI’s Joint Terrorism Task Force, the FBI New Haven Division and the U.S. Attorney’s Office of the District of Connecticut.
The case is being prosecuted by Assistant U.S. Attorneys Alexander A. Solomon, Douglas M. Pravda and Peter W. Baldwin of the Eastern District of New York, with assistance provided by Assistant U.S. Attorney Stephen Reynolds of the District of Connecticut and Trial Attorney Danya Atiyeh of the National Security Division’s Counterterrorism Section.
Rakhmatov Indictment
Two defendants appear in Federal court on drug chargesRead the Press Release
CHARLESTON, W.Va. – Two defendants appeared in federal court today on drug charges, announced Acting United States Attorney Carol Casto. Sarah Elizabeth Myers, 28, of South Charleston was sentenced to two-and-a-half years in federal prison and fined $5,000 for possession with intent to distribute heroin. In a separate drug prosecution, Daniel Branden O’Dell, 35, of Winston, Georgia, pleaded guilty to possession with intent to distribute methamphetamine.
Myers previously pleaded guilty and admitted that on May 15, 2015, she traveled to Columbus to pick up a supply of heroin. When she returned to West Virginia, law enforcement stopped her for speeding. During the stop, officers found over 100 grams of heroin hidden in the rear passenger side door panel. Myers admitted it was her intent to distribute the heroin in the Charleston area.
On October 30, 2015, in a separate drug prosecution, members of the Nicholas County Sheriff’s Department and the Summersville Police Department arrested O’Dell at a hotel in Summersville as part of a stolen vehicle investigation. Upon searching the room, police found methamphetamine and a loaded .45 caliber pistol that had been reported as stolen. O’Dell admitted driving from Georgia to Pennsylvania, where he intended to sell the methamphetamine. He further admitted purchasing the stolen firearm in Georgia. O’Dell has a lengthy criminal record that includes three felony drug convictions. Pursuant to the plea agreement, O’Dell faces between 30 and 46 months when he is sentenced on August 11, 2016.
The Myers case was investigated by the South Charleston Police Department and the Drug Enforcement Agency Task Force. Assistant United States Attorney Timothy D. Boggess is responsible for the prosecution of Myers. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
The Nicholas County Sheriff’s Department and the Summersville Police Department investigated the O’Dell case. Assistant United States Attorney Joshua Hanks is in charge of the O’Dell prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
The O’Dell case was prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
Both cases were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities. 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 drugs in communities across the Southern District.
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Two Indicted for Making False Claims to the BP Oil Spill Settlement FundRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III the return of indictments charging Marque Amason (49) and William Soong (27, both of Fort Myers Beach, with fraud-related offenses in connection with their submission of false claims to British Petroleum (“BP”) Deepwater Horizon oil spill settlement fund. Amason is charged with one count of wire fraud, and Soong is charged with one count of mail fraud. If convicted, each faces a maximum penalty of 20 years in federal prison.
According to the indictment, Soong submitted a claim to the BP Deepwater Horizon oil spill settlement fund seeking payment for damages he allegedly had sustained as a boat captain. However, Soong was not, and had not been, a boat captain and was not entitled to the payment that he sought and received.
According to a second indictment, Amason submitted a claim to the BP Deepwater Horizon oil spill settlement fund seeking payment for damages he allegedly had received as a boat captain. To support his claim for damages, he falsely and fraudulently claimed that he had been a shrimp boat captain during a particular time period. However, Amason was actually incarcerated during a portion of that same time period.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. It will be prosecuted by Assistant United States Attorneys David G. Lazarus and Sara Sweeney.
Three Plead Guilty to Fraud of Nearly $4 Million from Lawrence County BankRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Special Agent in Charge Diane Upchurch, of the Little Rock Field Office for the Federal Bureau of Investigations (FBI) announced today that Brenda Montgomery, 57, of Walnut Ridge, Peggy Sutton, 61, of Biggers, and Cindy Tate, 57, of Walnut Ridge, have all pleaded guilty to a felony information charging them with conspiracy to commit bank fraud. The three admitted to stealing nearly $4 million from First National Bank of Lawrence County, Arkansas.
Montgomery and Tate pleaded guilty on Tuesday and Sutton on Wednesday before United States District Judge Kristine G. Baker, who will sentence them at a later date. Judge Baker conditionally accepted each defendant’s guilty plea subject to receiving the presentence reports for the defendants. Pursuant to a plea agreement with the United States, each defendant is responsible for $1,317,000 in restitution to the bank.
The felony information charged that the three conspired with each other from 2005 through in or about April 2015 to fraudulently obtain approximately $3,953,025 from the First National Bank of Lawrence County, Arkansas. According to the facts read at the hearings, Montgomery, Sutton, and Tate were long-time employees of the bank who, using their positions, acted together to conceal the theft of money from the vault of the bank’s main office in Walnut Ridge.
Tate had advance notice of internal audits and would arrange with Montgomery or Sutton to have cash transferred temporarily to the main vault from other branches of the bank, or from other corresponding banks, so that it would appear to the auditors that the count of cash on hand in the main vault was correct. Once the auditors had completed the count, Tate, Sutton, or Montgomery saw to it that cash which had been temporarily moved to the vault was then returned to the other branches or to the corresponding bank.
In April 2015, officials in management at First National became suspicious of the defendants’ conduct and arranged for a surprise cash count of the vault contents, at which time a shortage became apparent. A forensic audit confirmed that the three defendants had stolen bank funds by materially over representing the amount of cash on hand in the bank by $3,953,025.
The statutory penalties for conspiracy to commit bank fraud, in violation of 18 U.S.C. § 1349, include imprisonment of not more than 30 years, a $1,000,000 fine, five years supervised release, and a $100 special assessment. The defendants have been allowed to remain free on bond pending sentencing.
Three Doctors Indicted for Illegally Selling Prescriptions of Suboxone and KlonopinRead the Press Release
PHILADELPHIA – An indictment was filed today charging three doctors in a scheme to sell commonly abused prescription drugs in exchange for cash payments. Charged in the conspiracy are: Dr. Alan Summers, 78, of Ambler, PA; Dr. Azad Khan, 63, of Villanova, PA; and Dr. Keyhosrow Parsia, 79, of Ridley Park, PA. The indictment includes charges of conspiracy to distribute controlled substances, distribution of controlled substances, health care fraud, and money laundering and was announced by United States Attorney Zane David Memeger, Drug Enforcement Administration Special Agent-in-Charge Gary Tuggle, and Special Agent-in-Charge Nick DiGuilio with Health and Human Services Office of Inspector General.
The indictment alleges that Dr. Summers operated a medical clinic on South Broad Street in Philadelphia, and sometimes operated under the business name “NASAPT” (National Association for Substance Abuse-Prevention & Treatment). Dr. Summers employed numerous other doctors, including Dr. Azad Khan and Dr. Keyhosrow Parsia. The defendants sold prescriptions for Suboxone and Klonopin in exchange for cash payments. Suboxone is a brand name for a drug used to treat opiate addiction. None of the defendants conducted medical examinations or mental health examinations as required by law in order to legally prescribe these controlled substances. Dr. Summers also assisted his customers in obtaining health insurance benefits for these illegally prescribed controlled substances by providing false information to health insurance companies so that his customers could fill the prescriptions using their health insurance. Many of the customers who frequented this clinic were, in fact, drug dealers or drug addicts who sold the prescribed medications. During the duration of the conspiracy, Dr. Summers illegally sold over $5 million worth of controlled substances.
“We have a public health crisis in this county involving prescription drug abuse that is exacerbated by doctors like these defendants,” said Memeger. “Every doctor who abandons his or her ethics to engage in the prescription-for-pay culture is breaking the law. They need to ask themselves whether it is worth the money to put people in danger, to risk the loss of their medical licenses, and to lose their freedom. Our office will continue to investigate and prosecute those individuals whose unscrupulous and illegal conduct contributes to this deadly epidemic.”
“These doctors capitalized on the addiction epidemic that is typically responsible for numerous deaths across our region,” said Tuggle. “The DEA will remain vigilant in pursuing investigations in an effort to combat this serious public health crisis.”
“Doctors who enable addicts betray their profession,” said DiGiulio. “In this case it is alleged the defendants were illegally prescribing dangerous controlled drugs and causing government health care programs to pay for the unnecessary prescriptions, which is health care fraud. We will continue to work with our partners to dismantle dangerous pill mills, protect government funds, and keep the public safe.”
If convicted of all charges, each defendant faces a possible prison term, fines, restitution, special assessments, and a term of supervised release.
The case was investigated by the Drug Enforcement Administration, the Department of Health and Human Services Office of the Inspector General, and the Internal Revenue Service Criminal Investigations, with assistance from the Philadelphia Police Department and the Pennsylvania Bureau of Narcotics Investigations. It is being prosecuted by Assistant United States Attorney Robert Livermore.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Stoneham Trash Hauler Pleads Guilty to Tax EvasionRead the Press Release
BOSTON – A Stoneham businessman pleaded guilty today in U.S. District Court in Boston to tax evasion in connection with under-reporting more than $800,000 in gross receipts.
Robert Sinclair, 72, owner of Sinclair Trucking in Stoneham, Mass., pleaded guilty to attempting to evade taxes. U.S. District Judge Richard G. Stearns scheduled sentencing Aug. 10, 2016.
For many years, Sinclair owned and operated a waste management and trash hauling business in Stoneham. Some of his larger customers reported the payments they made to Sinclair on tax return form 1099 which they submitted to the IRS and to Sinclair, while smaller customers did not report the payments they made to Sinclair on Forms 1099. When Sinclair filed his tax returns, he generally reported only the amounts he had been paid by customers who provided Forms 1099, but not the payments from his customers who did not produce a Form 1099.
During audits of his tax returns in 2005, 2007, 2008, and 2009, IRS agents questioned Sinclair about discrepancies between the amounts he reported on his tax returns and the amounts he deposited into his business bank account. Sinclair falsely told the agents that the discrepancies were due to cash loans from a relative, when in fact, all of the deposits into the business bank account during these tax years were checks from customers. As a result, Sinclair evaded $239,446 in taxes.
The charge of tax evasion provides a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.
St. Joseph Man Sentenced to 15 Years for Large-Scale Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man was sentenced in federal court today for role in a large-scale conspiracy that distributed more than 15 kilograms of methamphetamine in St. Joseph and across a four-state region.
Shannon Wayne Martinez, also known as “Big Homie,” 39, of St. Joseph, was sentenced by U.S. Chief District Judge Greg Kays to 15 years in federal prison without parole. The court also ordered Martinez to pay a money judgment of $444,000, which reflects the amount of methamphetamine for which Martinez was responsible (6.8 kilograms, or 240 ounces) at a street price of $1,850 per ounce. In total, the conspiracy was responsible for distributing nearly $1 million worth of methamphetamine.
In 2010, the Buchanan County Drug Strike Force and the Drug Enforcement Administration initiated an investigation into a drug-trafficking organization distributing methamphetamine in northwest Missouri, northeast Kansas, southern Iowa and Nebraska.
On Nov. 17, 2015, Martinez pleaded guilty to participating in a conspiracy to distribute methamphetamine and to participating in a money-laundering conspiracy. Martinez admitted that he procured pound quantities of methamphetamine from sources in Kansas City, Mo., which he then distributed to co-conspirators.
Martinez was the head of a drug-trafficking organization that included co-defendants in the St. Joseph area. Martinez and others used Rick’s Upholstery Shop in St. Joseph, owned by co-defendant Ricky Alan Angst, 59, of Amazonia, Mo., as a front for drug trafficking. Angst has pleaded guilty to maintaining a drug premises and awaits sentencing.
Martinez is among 24 defendants charged in a Nov. 15, 2013, federal indictment, all of whom have either pleaded guilty or been convicted at trial.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Buchanan County Drug Strike Force, the Drug Enforcement Administration, the FBI, the Kansas City, Mo., Police Department, the St. Joseph, Mo., Police Department and the Buchanan County, Mo., Sheriff’s Department.
Spanish Fugitive Pleads Guilty in Connection with Prostitution Enterprise Operated Out of Florida HotelRead the Press Release
Miguel A. Hernandez, 50, of Miami Beach, Florida, pleaded guilty today to charges arising from his operation of an enterprise that profited from the prostitution of multiple women, including foreign nationals and Miami-area residents, for his financial gain.
Hernandez pleaded guilty before U.S. District Court Judge Marcia G. Cooke of the Southern District of Florida to four counts of using a facility of interstate commerce to promote an unlawful activity and four counts of importing and attempting to import an alien for prostitution purposes.
According to documents filed in the case and evidence presented in court during the plea hearing, Hernandez began operating a highly profitable prostitution enterprise known as “International Playmates” from a hotel in Fort Lauderdale, Florida, in 2010. Hernandez and others, including his brother and co-defendant, Eduardo Hernandez, recruited many of the women who worked for him from other countries, including Spain, Colombia, Venezuela and other Central and Latin American countries. To facilitate the operation, Hernandez and his associates reserved and paid for plane tickets for foreign nationals to enter the United States, completed immigration paperwork, coached foreign nationals on what to say to customs officials when entering the United States and picked foreign nationals up at the airport. Hernandez openly advertised his business on the Internet and deposited the cash proceeds into multiple bank accounts.
As part of Hernandez’s enterprise, he engaged numerous individuals, including overseas recruiters to identify more women; drivers to transport women to dates with prostitution clients; a website technician to advertise the enterprise’s services; various female associates to help manage the enterprise; and his brother and co-defendant, Eduardo Hernandez to aid in operation of the scheme. Eduardo Hernandez previously pleaded guilty for his role in the enterprise on May 3, 2016.
Miguel Hernandez had previously been convicted and sentenced to six years’ confinement in Spain for immigration fraud offenses in violation of Spanish law, but had fled to the United States before serving his sentence. According to documents filed in the case and evidence presented in court, Hernandez used physical force on at least two occasions against two different women, both Spanish nationals, and prostituted at least three minors for his profit.
“The ACTeam Initiative – including a Phase I Pilot Team in the Southern District of Florida – has worked to multiply the efforts of the federal government by convening various agencies and marshalling resources to more effectively combat human trafficking and related crimes,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This prosecution is one of many in which the ACTeam initiative has helped vindicate the rights of the vulnerable women and girls that Hernandez and his co-conspirators exploited for their profit.”
“The U.S. Attorney’s Office is committed to supporting the ACTeam Initiative, a multi-agency approach aimed at building human trafficking enforcement and investigate efforts, in order to combat the illicit enterprises and prosecute the traffickers,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.
“Human smuggling and trafficking are a top priority of ICE-HSI to disrupt and dismantle these transnational criminal organizations,” said Acting Special Agent in Charge Robert C. Hutchinson of the U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) Miami. “We work very closely with our law enforcement and non-governmental organization partners with great success to protect victims such as demonstrated in this investigation.”
“Diplomatic Security’s global presence enables our agency to serve as a liaison between U.S. and foreign law enforcement counterparts assisting both in their efforts to stop human trafficking,” said Director Bill A. Miller of the State Department’s Diplomatic Security Service. “Today’s conviction demonstrates how Diplomatic Security’s placement around the world can stem the tide of human trafficking and target the criminals who prey on these victims.”
At a sentencing hearing scheduled for July 13, 2016, Hernandez faces a maximum sentence of 60 years in prison and a fine of up to $2 million.
The case was investigated by HSI and the Diplomatic Security Service. The case is being prosecuted by Assistant U.S. Attorney Olivia S. Choe of the Southern District of Florida and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Southern District of Florida is one of six Phase I Pilot Anti-Trafficking Coordination Teams (ACTeams) convened through an interagency collaboration of the Departments of Justice, Homeland Security and Labor to develop high-impact federal human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking of adults by force, fraud and coercion.
Spanish Fugitive Pleads Guilty in Connection with Prostitution Enterprise Operated Out of Florida HotelRead the Press Release
Highly Profitable Scheme Prostituted Foreign Nationals and South Florida Residents
Miguel A. Hernandez, 50, of Miami Beach, Florida, pleaded guilty today to charges arising from his operation of an enterprise that profited from the prostitution of multiple women, including foreign nationals and Miami-area residents, for his financial gain.
Hernandez pleaded guilty before U.S. District Court Judge Marcia G. Cooke of the Southern District of Florida to four counts of using a facility of interstate commerce to promote an unlawful activity and four counts of importing and attempting to import an alien for prostitution purposes.
According to documents filed in the case and evidence presented in court during the plea hearing, Hernandez began operating a highly profitable prostitution enterprise known as “International Playmates” from a hotel in Fort Lauderdale, Florida, in 2010. Hernandez and others, including his brother and co-defendant, Eduardo Hernandez, recruited many of the women who worked for him from other countries, including Spain, Colombia, Venezuela and other Central and Latin American countries. To facilitate the operation, Hernandez and his associates reserved and paid for plane tickets for foreign nationals to enter the United States, completed immigration paperwork, coached foreign nationals on what to say to customs officials when entering the United States and picked foreign nationals up at the airport. Hernandez openly advertised his business on the Internet and deposited the cash proceeds into multiple bank accounts.
As part of Hernandez’s enterprise, he engaged numerous individuals, including overseas recruiters to identify more women; drivers to transport women to dates with prostitution clients; a website technician to advertise the enterprise’s services; various female associates to help manage the enterprise; and his brother and co-defendant, Eduardo Hernandez to aid in operation of the scheme. Eduardo Hernandez previously pleaded guilty for his role in the enterprise on May 3, 2016.
Miguel Hernandez had previously been convicted and sentenced to six years’ confinement in Spain for immigration fraud offenses in violation of Spanish law, but had fled to the United States before serving his sentence. According to documents filed in the case and evidence presented in court, Hernandez used physical force on at least two occasions against two different women, both Spanish nationals, and prostituted at least three minors for his profit.
“The ACTeam Initiative – including a Phase I Pilot Team in the Southern District of Florida – has worked to multiply the efforts of the federal government by convening various agencies and marshalling resources to more effectively combat human trafficking and related crimes,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This prosecution is one of many in which the ACTeam initiative has helped vindicate the rights of the vulnerable women and girls that Hernandez and his co-conspirators exploited for their profit.”
“The U.S. Attorney’s Office is committed to supporting the ACTeam Initiative, a multi-agency approach aimed at building human trafficking enforcement and investigate efforts, in order to combat the illicit enterprises and prosecute the traffickers,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.
“Human smuggling and trafficking are a top priority of ICE-HSI to disrupt and dismantle these transnational criminal organizations,” said Acting Special Agent in Charge Robert C. Hutchinson of the U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) Miami. “We work very closely with our law enforcement and non-governmental organization partners with great success to protect victims such as demonstrated in this investigation.”
“Diplomatic Security’s global presence enables our agency to serve as a liaison between U.S. and foreign law enforcement counterparts assisting both in their efforts to stop human trafficking,” said Director Bill A. Miller of the State Department’s Diplomatic Security Service. “Today’s conviction demonstrates how Diplomatic Security’s placement around the world can stem the tide of human trafficking and target the criminals who prey on these victims.”
At a sentencing hearing scheduled for July 13, 2016, Hernandez faces a maximum sentence of 60 years in prison and a fine of up to $2 million.
The case was investigated by HSI and the Diplomatic Security Service. The case is being prosecuted by Assistant U.S. Attorney Olivia S. Choe of the Southern District of Florida and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Southern District of Florida is one of six Phase I Pilot Anti-Trafficking Coordination Teams (ACTeams) convened through an interagency collaboration of the Departments of Justice, Homeland Security and Labor to develop high-impact federal human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking of adults by force, fraud and coercion.
Sioux Falls Man Sentenced to 210 Months for Drug OffenseRead the Press Release
United States Attorney Randolph J. Seiler announces that a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine was sentenced on May 6, 2016, by U.S. District Judge Karen E. Schreier.
Milton Lewis Poole III, age 28, was sentenced to 210 months in custody, to be followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
An indictment was issued against Poole for Conspiracy to Distribute Methamphetamine by a federal grand jury on August 4, 2015. He pled guilty to the charge on February 11, 2016.
In 2015, Poole was involved in a conspiracy to distribute methamphetamine in Sioux Falls. Poole distributed over 20 pounds of methamphetamine in Sioux Falls, and received several pounds of methamphetamine in the mail.
This case was investigated by the Drug Enforcement Administration, the United States Postal Inspection Service, and the Sioux Falls Area Drug Task Force. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Poole was immediately turned over to the custody of the U.S. Marshals Service.
Seven Defendants Charged in Manhattan Federal Court with Defrauding A Native American Tribe and Investors of over $60 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced that seven defendants were arrested today and charged with orchestrating a scheme to defraud investors and a Native American tribal entity of tens of millions of dollars.
JASON GALANIS and HUGH DUNKERLEY were arrested in the Central District of California. JASON GALANIS will be presented later today before a U.S. Magistrate Judge in Los Angeles and DUNKERLEY will be presented before a U.S. Magistrate Judge in Santa Ana, California. GARY HIRST was arrested in the Middle District of Florida and will be presented later today before a U.S. Magistrate Judge in Orlando. JOHN GALANIS, a/k/a “Yanni,” was arrested in the Southern District of California and will be presented later today before a U.S. Magistrate Judge in San Diego. BEVAN COONEY was arrested in the District of Nevada and will be presented later today before a U.S. Magistrate Judge in Reno. DEVON ARCHER was arrested in the Eastern District of New York. MICHELLE MORTON was arrested in New Jersey. ARCHER and MORTON will be presented later today before United States Magistrate Judge Ronald L. Ellis in Manhattan.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the defendants induced an Oglala Sioux Native American tribal entity to issue bonds through lies about how the bond proceeds would be invested. Instead of investing the proceeds in a way that would provide capital for development and help cover the interest payments, the defendants allegedly pocketed most of it to pay for their own personal expenses, homes, cars, travel, and jewelry. The defendants’ alleged fraud did not stop with the tribe. The defendants also allegedly duped unwitting investors into buying the bonds by hiding material facts about them, including their lack of liquidity. The defendants’ alleged fraud has left devastation in its wake: a tribe with tens of millions in bond obligations it cannot pay, and investors out tens of millions, left holding bonds they did not want.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “The alleged fraudsters named in this case didn’t just see an opportunity to steal money when they thought no one was looking, they allegedly hatched a plan to scam a municipal entity from the start. The most egregious fallout from this scheme is that the bondholders now hold worthless securities, and the tribe can’t make the interest payments due.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “These individuals allegedly took advantage of their clients, by luring them into creating bonds the defendants allegedly knew would never pay any returns to investors. White-collar criminals always believe their crimes and abilities are above the law, but Postal Inspectors and their law enforcement partners are very skilled at bringing these fraudsters to justice for their illegal financial schemes.”
According to the Complaint unsealed today in Manhattan federal court:[1]
From at least in or about March 2014 through in or about April 2016, JASON GALANIS, GARY HIRST, JOHN GALANIS, a/k/a “Yanni,” HUGH DUNKERLEY, MICHELLE MORTON, DEVON ARCHER, and BEVAN COONEY engaged in a fraudulent scheme to cause a Native American tribal entity to issue more than $60 million in municipal bonds and then misappropriate the proceeds from their sale. JASON GALANIS and JOHN GALANIS used the millions of dollars in illicit profits derived from the scheme to pay for a variety of personal and business expenses, including house payments, car payments and tax obligations, and to make food, travel and jewelry purchases. JASON GALANIS also used the proceeds to make millions of dollars of payments to other defendants, including to HIRST, DUNKERLEY, and COONEY, as well as to asset management firms run by MORTON.
To accomplish the scheme, JASON GALANIS and JOHN GALANIS first induced the Wakpamni Lake Community Corporation (“WLCC”), an Oglala Sioux tribal entity, to issue tens of millions of dollars in municipal bonds (the “Tribal Bonds”) based on false and misleading representations. MORTON and HIRST, at the direction of JASON GALANIS, used approximately $40 million of funds belonging to clients of two related investment advisers run by MORTON – Hughes Capital Management, Inc. (“Hughes”) and Atlantic Asset Management, LLC (“Atlantic”) – to purchase the Tribal Bonds, even though those defendants were well aware that material facts about the Tribal Bonds had been withheld from clients in whose accounts they were placed, including the fact that the Tribal Bond purchases fell outside the investment parameters of certain Hughes clients and of the Atlantic investment vehicle in which the Tribal Bonds were placed. In addition, those defendants failed to apprise the Hughes and Atlantic clients of substantial conflicts of interest relating to the defendants – including that HIRST and DUNKERLEY were on multiple sides of the deal with respect to the issuance and placement of the Tribal Bonds. When Hughes and Atlantic clients learned about the purchase of the Tribal Bonds, several of them demanded that the Tribal Bonds be sold. However, because there was no ready secondary market for the Tribal Bonds, the Tribal Bonds remain in their accounts.
Moreover, certain defendants, including JASON GALANIS and DUNKERLEY, falsely represented to the WLCC that proceeds from the sale of the Tribal Bonds would be placed with an investment manager who would invest the proceeds in investments that would generate annuity payments sufficient to pay the interest on the Tribal Bonds and provide additional funds to the WLCC to be used for tribal economic development purposes. In fact, none of the proceeds of the Tribal Bonds were turned over to the investment manager specified in the closing documents. Instead, the defendants misappropriated significant portions of the proceeds for their own personal use.
Some of the misappropriated proceeds were recycled and provided by JASON GALANIS to entities affiliated with ARCHER and COONEY in order to facilitate the purchase of additional Tribal Bonds issued by the WLCC in subsequent offerings induced by JOHN GALANIS. As with the first offering of Tribal Bonds, none of the proceeds of the Tribal Bonds were actually turned over to the investment manager specified in the closing documents. Instead, the defendants again misappropriated substantial portions of the proceeds for their own use. As a result of the defendants’ fraudulent scheme, the investors in whose accounts the Tribal Bonds were placed now hold worthless securities that cannot be sold, and the WLCC has no means of paying the interest payments due on the Tribal Bonds.
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JASON GALANIS, HIRST, JOHN GALANIS, DUNKERLEY, MORTON, ARCHER, and COONEY are each charged with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense; and one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. JASON GALANIS, HIRST, and MORTON are also charged with conspiracy to commit investment adviser fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense; and investment adviser fraud, which carries a maximum sentence of five years in prison and a maximum fine of $10,000. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and USPIS, and thanked the SEC, which has filed civil charges in a separate action.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian Blais, Aimee Hector, and Rebecca Mermelstein are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Schuele Boys Gang Member Sentenced on Drug 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 Fred Johnson, aka Macaroni, 23, of Buffalo, NY, who was convicted of conspiracy to distribute cocaine, was sentenced to time served (22 months) by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that as a member of the Schuele Boys Gang, the defendant purchased cocaine from co-defendant Michael Robertson. Johnson then repackaged the cocaine into smaller amounts for re-sale in the Buffalo area.
On July 23, 2014, law enforcement officers executed a search warrant at the defendant’s Fisher Street residence and recovered a .22 caliber pistol.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Johnson was arrested along with 15 other Schuele Boys Gang members and associates in July 2014. Thirteen defendants have been convicted. On March 24, 2015, an additional seven members and associates were indicted. Four other Schuele Boys members were indicted separately.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the culmination of an investigation on the part of the FBI's Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
Repeat Felon Sentenced to Federal Prison for Illegally Possessing Gun and MethamphetamineRead the Press Release
EUGENE, Ore. – Justin Longworth, 36, of Lane County, Oregon, was sentenced yesterday by U.S. District Judge Ann Aiken to 94 months in prison for the crimes of felon in possession of a firearm and possession with intent to distribute methamphetamine. Following his release from prison, Longworth will be on supervised release for three years.
On July 8, 2015, Eugene Police Department officers arrested Justin Longworth on a warrant. Officers found an unloaded 9mm pistol, approximately a half-ounce of methamphetamine, a scale, and drug packaging materials in Longworth’s backpack.
Longworth’s prior convictions include felon in possession of a firearm, unlawful use of a weapon, manufacture of a controlled substance, attempt to elude and unauthorized use of a motor vehicle.
The investigation of this case was conducted by the Federal Bureau of Investigation and the Eugene Police Department. The case was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.
Reno Doctor Robert Rand and Eight Others Indicted on Federal Prescription Drug Distribution ChargesRead the Press Release
RENO, Nev. – The federal grand jury in Reno today indicted Robert Rand M.D. and eight others on felony drug conspiracy and other charges, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. The indictment replaces the prior criminal complaint, and is required in order for the government to prosecute the defendants on the felony charges.
“We are using all legal tools at our disposal to discover, disrupt and dismantle illegal traffic in pharmaceutical controlled substances,” said U.S. Attorney Bogden. “We are making significant progress in Nevada, and have disrupted a number of so-called pill mills. Our efforts in this area continue, and I am optimistic that we can reverse the alarming upward trend of illegal trafficking of prescription drugs.”
Robert Gene Rand, 53, Richard Winston West II, aka Richie West, 40, Omar Ahsan Ahmad, 31, Joshua Ross Green, 34, Clint Mitchell Bloodworth, 40, Kathleen Griffin, 43, Alan Russel Martinez, 59, and Braden Kyle Riley, 40, all of Reno, and Ryan Daniel Smith, 40, of Carson City, are each charged with conspiracy to distribute and possess with intent to distribute controlled substances, such as oxycodone. Rand is also charged with one count of distribution of oxycodone resulting in death and one count of distribution of fentanyl. West is also charged with three counts of distribution of oxycodone, two counts of possession with intent to distribute oxycodone, two count of possession with intent to distribute fentanyl, two counts of possession with intent to distribute psilocyn, and two counts of possession of a firearm during and in relation to a drug trafficking crime.
If convicted, each defendant faces up to 20 years in prison on the conspiracy charge. Rand also faces a minimum mandatory 20 years in prison on the distribution count resulting in death. West also faces up to 20 years in prison on each of the other drug counts, a consecutive mandatory minimum five years in prison as to the first firearm count, and a consecutive mandatory minimum 25 years in prison as to the second firearm count.
At the time of the criminal conduct, defendant Rand was a Nevada-licensed physician who operates Rand Family Care in Reno and defendant West was the manager of the Jones-West Ford dealership. All of the other defendants were also employees at one time of the vehicle dealership. Rand allegedly prescribed narcotics, such as oxycodone, without a legitimate medical purpose and outside the usual course of his professional practice. Beginning on about Nov. 13, 2012, and continuing to about April 28, 2016, Rand allegedly issued prescriptions for substantial amounts of oxycodone to his co-defendants, who filled the prescriptions at local pharmacies and illicitly distributed them. On September 30, 2015, Rand allegedly issued an unlawful prescription for oxycodone, resulting in the death of an individual.
The indictment alleges that on April 28, the day that West was arrested, he possessed in his truck two pistols and a rifle during and in relation to drug trafficking crimes, and in his residence two pistols and a rifle during and in relation to drug trafficking crimes.
According to the Centers for Disease Control and Prevention (CDC), almost two million Americans abused or were dependent on prescription opioids in 2014. Overdose deaths from opioids, including prescription opioids and heroin, have nearly quadrupled since 1999. Overdoses involving opioids killed more than 28,000 people in 2014, more than any year on record, and over one-half of those deaths were from prescription opioids. For information on opioid overdose and how you can manage pain without prescription drugs, go to http://www.cdc.gov/drugoverdose/opioids/index.html.
This case is being investigated by the Northern Nevada Unified Drug and Gang Enforcement Task Force, which includes the DEA, FBI, IRS Criminal Investigation, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Enforcement, Reno Police Department, Washoe County Sheriff’s Office, Carson City Sheriff’s Office, Susanville, California Police Department, Nevada Department of Corrections, Nevada Gaming Control, Nevada Department of Public Safety, Lyon County Sheriff’s Office, and the State of Nevada Division of Welfare, Office of Investigations and Recovery.
The case is being prosecuted by Assistant U.S. Attorney James E. Keller.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Previously Convicted Felon Charged with Firearm and Drug OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an Edwardsville man was indicted yesterday by a federal grand jury in Scranton on firearm and drug possession offenses.
According to United States Attorney Peter Smith, the indictment charges Willie Garcia, age 47, with being a felon in possession of a firearm, using that firearm in furtherance of drug trafficking activities and possession with intent to distribute marijuana.
The charges stem from a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Edwardsville Police Department. The charge arose out of a police response to a 911 call concerning a shooting and resulted in the alleged recovery of marijuana and a loaded firearm from Garcia’s home.
Prosecution is assigned to Assistant United States Attorney Evan Gotlob.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes
Garcia faces a minimum of 5 years and up to a lifetime term of incarceration as well as fines totaling $1,500,000.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is 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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Piedmont Man Pleads Guilty to Concealing a FugitiveRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that David Roger Nelson, age 60, of Piedmont, pled guilty yesterday in federal court in Greenville, to harboring a fugitive and conspiracy to steal mail, violations of Title 18, United States Code, Sections 1071 and 371, respectively. United States District Judge Bruce Howe Hendricks, of Charleston accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that although Nelson knew that Emily Keller (who had earlier pled guilty to mail theft) was a federal fugitive who was wanted by the U.S. Marshals, he hid her in various hotel rooms in South Carolina and Georgia, and rented a vehicle that was used to transport her. In addition, Nelson was involved in the stealing of mail and the making of counterfeit checks to support himself and Keller while they were on the run. When captured in Easley, South Carolina, Nelson was found with stolen mail, check stock, and counterfeit checks and identification documents.
Mr. Nettles stated the maximum penalty Nelson can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.
The case was investigated by agents of the United States Postal Inspection Service and the United States Marshals. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Patient Care Coordinator Who Defrauded A Charity Pleads Guilty to Wire FraudRead the Press Release
CHARLOTTE, N.C. – A South Carolina woman appeared in federal court today and pleaded guilty to one count of wire fraud for defrauding a charitable organization providing prescription cost assistance to low-income individuals, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Nakeria Rougier Hanson, 31, of Rock Hill, S.C. entered her guilty plea before U.S. Magistrate Judge David Keesler.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to filed court documents and today’s plea hearing, from at least December 2014 to in or about July 2015, Hanson engaged in a scheme to defraud Company A, a national charitable organization providing prescription cost assistance to low-income individuals with chronic or life-threatening illnesses of at least $78,000, by fabricating pharmacy benefit claims for non-existent services. According to court records, from in or about July 2014 to in or about July 2015, Hanson was employed as a Patient Case Coordinator by Company B, which administered patient support and other services for various health care benefit companies, including Company A. In her capacity as a Patient Case Coordinator, Hanson processed claims for reimbursement, including claims submitted to Company A.
Hanson admitted in filed documents and in court today that she submitted false and fraudulent applications in the names of her friends and families to Company B in order have those individuals fraudulently approved to receive financial assistance for prescription drug costs from Company A. Hanson also admitted that she submitted the false applications for cost assistance through various methods, including internet, telephone and facsimile to Company B. Hanson further admitted that after the false applications were approved and the individuals enrolled, she fabricated high-cost prescriptions reimbursement claims for those individuals and submitted them to Company B for reimbursement with charitable organization Company A’s funds. Hanson intercepted those claims through her employment at the Company B and caused those claims to be paid to the individuals. In total, Hanson submitted fraudulent enrollment applications and subsequent false prescription claims for at least nine friends or relatives, resulting in fraudulent payments of at least $78,759 to those individuals, who then divided the proceeds with Hanson.
“Hanson stole from a charitable organization providing financial help to individuals suffering with chronic and critical life threatening illnesses and unable to afford costly prescriptions. For some of these individuals, getting that monetary assistance is critical. This prosecution should serve as a deterrent and a reminder that my office will prosecute employees or affiliates of charities who steal from organizations funded by generous individuals donating money to support worthy causes,” said U.S. Attorney Rose.
Hanson was released on bond following today’s plea hearing. The wire fraud charge carries a maximum prison term of 20 years and a $250,000 fine. A sentencing date for Hanson has not been set yet.
The FBI investigated the case. Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Owners of Worcester Payroll Company Sentenced for Tax Evasion and FraudRead the Press Release
BOSTON – The co-owners and former owner of a payroll company in Worcester were sentenced today in U.S. District Court in Worcester for defrauding the IRS and tax evasion. One of the co-owners was also sentenced for embezzling client and employee funds.
William McCullough, 73, of Westborough, Mass., was sentenced by U.S. District Court Judge Timothy S. Hillman to one year and one day in prison, three years of supervised release and restitution of $1,825,933. In September 2015, he pleaded guilty to two counts of conspiracy to defraud the IRS, four counts of making false statements in tax returns, four counts of tax evasion, and one count of wire fraud. Robert McCullough, 43, also of Westborough, the son of William McCullough, was sentenced by Judge Hillman to eight months in prison and three years of supervised release. He previously pleaded guilty to two counts of conspiracy to defraud the IRS and four counts of tax evasion. Gary Davis, 74, of Jupiter, Fla., was sentenced to six months in prison and three years of supervised release. He pleaded guilty to one count of conspiracy to defraud the IRS, and three counts of tax evasion.
The McCulloughs are co-owners of Harpers Data Services, a payroll company in Worcester. William McCullough was the treasurer and his son, Robert, is the president. Gary Davis was a former owner and president of Harpers until his retirement in 2010.
Beginning around 2006, William and Robert McCullough operated two corporate bank accounts at Webster Five Cents Savings Bank. From 2007 to 2012, they funneled approximately $11 million of taxable income into these accounts. The McCulloughs kept these accounts off of the corporation’s books and concealed their existence from the corporate accountant. Thus, the income deposited into these accounts was not reported to the IRS on the corporation’s annual tax returns. As a result, the corporation failed to pay approximately $3.78 million in taxes.
Also during that time, William McCullough wrote checks totaling approximately $4.7 million from one of the Webster Five corporate accounts to himself, Robert McCullough, and Gary Davis. In addition, from 2007 to 2011, William McCullough wrote bonus and dividend checks from Harpers totaling approximately $2.7 million to himself, Robert McCullough, and Gary Davis. William McCullough ensured that none of this income appeared on the appropriate tax reporting forms, and as a result, the defendants failed to pay approximately $1.7 million in taxes from 2007 through 2011.
In a separate case, William McCullough was sentenced for committing wire fraud. From 2009 through 2011, Harpers maintained client trust accounts and a client tax account. These accounts contained client funds, which were to be used to pay employees’ paychecks and employees’ federal and state taxes. From 2009 through 2011, William McCullough took approximately $1 million from the client trust accounts and deposited it into a Harpers account. In 2010, he took $750,000 from the client tax account and deposited it into a Harpers account. At the time William McCullough took this money, the funds belonged solely to the clients of Harpers Data Services. McCullough’s fraud resulted in a theft of approximately $1.8 million dollars.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Karin M. Bell, Chief of Ortiz’s Worcester Branch Office.
Operation Gun Dog Nets 18 FirearmsRead the Press Release
St. Thomas, USVI – Naeem Akil Smith, 24, of St. Thomas, was arrested and charged with the unlawful possession of 18 firearms, including two assault rifles, at the Cyril E. King Airport in St. Thomas, announced United States Attorney Ronald W. Sharpe. Smith’s arrest resulted from a joint law enforcement operation named “Operation Gun Dog” conducted by a U.S. Customs and Border Protection (CBP) led task force during the St. Thomas Carnival season. Smith made his initial appearance in court on May 5, 2016 before District Court Magistrate Judge Ruth Miller. A detention hearing was held on May 6, 2016 for Smith where he was ordered to post a $10,000 unsecured bond. Smith is also required to wear an electronic monitor.
According to the complaint, on April 27, 2016, at the Cyril E. King Airport, a law enforcement K-9 alerted to the presence of firearms inside of luggage checked in Smith’s name. CBP officers examined Smith’s luggage, which revealed one Taurus pistol, 15 Glock pistols, and two AK-47 assault rifles. His luggage also contained two AK-47 magazines, 36 other pistol magazines with capacities ranging from 9 to 15 rounds, 10 speed loaders, twenty .40 caliber Smith and Wesson rounds, and a storage box.
Under federal law if convicted of unlawful possession of firearms, Smith would face a maximum of 10 years in prison and a $250,000 fine.
Operation Gun Dog was formed by law enforcement officials from CBP, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Drug Enforcement Administration, U.S. Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Marshals Service, Transportation Security Administration, Virgin Islands Port Authority and Virgin Islands Police Department to interdict contraband travelling through the Cyril E. King Airport and deter criminal activity during the St. Thomas Carnival.
This case is being investigated by HSI and ATF. It is being prosecuted by Assistant United States Attorney Delia Smith.
United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Olney Man Sentenced on Social Security Fraud ChargeRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that David Mitchell Carter, 50, of Olney, Illinois, was sentenced on May 10, 2016, on the charge of Theft of Government Funds in the United States District Court in Benton, Illinois. The theft charge relates to fraud upon the Social Security benefit program. The district court sentenced Carter to six months in prison, to be followed by three years of supervised release, with the first six months to be served under home confinement. The court also ordered Carter to pay restitution to the Social Security Administration in the amount of $77,353.00.
Court proceedings indicated that from January 2008, continuing to January 2014, Carter stole money belonging to the Social Security Administration by concealing his employment status in order to receive benefits from the Social Security Administration’s Title II Disability Insurance Benefits program, to which he knew he was not entitled by failing to disclose income through employment.
The case was investigated by the U.S. Social Security Administration, Office of Inspector General, Office of Investigations. The case is being prosecuted by Assistant U.S. Attorney William E. Coonan.
Oklahoma City Woman Sentenced to 33 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that AMANDA LEEANN TIGER, age 26, of Oklahoma City, Oklahoma, was sentenced to 33 months imprisonment, followed by 3 years of supervised released for POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
The Indictment alleged that on or September 1, 2015, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The charges arose from an investigation by the Drug Enforcement Administration. The defendant pled guilty in October 2015.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which she will serve her nonparoleable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Ohio Man Sentenced to 30 Years in Federal Prison for Intersate Travel to Engage in a Sexual Act with a ChildRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Antoine Lebeux Michael, age 42, of New Boston, Ohio, was sentenced to 360 months in federal prison without the possibility of parole and lifetime supervised release for one count of Interstate Travel to Engage in A Sexual Act with a Child under the Age of 12 Years Aggravated Sexual Abuse with a Child. The sentencing hearing took place before the Honorable P. K. Holmes, III in the United States District Court in Fort Smith.
According to court records, in July, 2015, an undercover officer with the Fort Smith Police Department entered an internet chat room using an online persona of a single mother of two children under the age of 10. An individual in the chat room that identified himself as “Andy” made contact with the undercover officer stating that he liked young girls. During their chats, “Andy” detailed specific, graphic sexual acts that he wanted to engage in with the two children and the undercover officer, and even discussed his desire to impregnate the daughter once she was older so there would always be kids around. “Andy” talked about not having to hide his “pics” that he had stored on encrypted hard drives from the undercover officer, and sent pictures of himself and described his truck to the undercover officer. “Andy” and the undercover officer discussed him traveling from Ohio to meet the undercover officer and the two fictitious children, and they agreed to meet at a public place in Fort Smith. On August 10, 2015, “Andy” arrived at the agreed location, he made contact with the undercover officer, they made small talk, and he then asked if they could go pick up the children. Officers then moved in and arrested “Andy” who was subsequently identified as Antoine Michael. Officers recovered several phones, hard drives, a laptop, and a GPS from his vehicle. Michael later waived his Miranda rights and made a statement admitting to traveling from Ohio to Arkansas for the purpose of engaging in sex acts with what he thought was a single mother and her two children. Forensic analysis of the recovered GPS showed that Michael had traveled from Ohio to Arkansas. He was indicted by a federal grand jury on October 28, 2015, and pleaded guilty to the charge on January 21, 2016.
This case was investigated by the Fort Smith Police Department and the Sebastian County Prosecuting Attorney’s Office. Assistant United States Attorney Aaron Jennen prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
North Franklin Man Pleads Guilty to Failing to Pay Taxes on Money He Misappropriated from TrustRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JOSEPH SUDIK, 60, of North Franklin, waived his right to indictment and pleaded guilty yesterday in New Haven federal court to filing false tax returns.
According to court documents and statements made in court, SUDIK operated a dentistry practice, and also acted as a trustee of the Walter S. Sudik Trust, his uncle’s estate. In 2010 and 2011, SUDIK took more than $248,000 from the Trust without authorization and was paid $35,500 by the Trust for fiduciary fees for his services as trustee and reimbursement for closing his dental office to act as trustee. On his 2010 and 2011 federal tax returns, SUDIK willfully failed to report a total of $284,167 in unreported income and failed to pay $63,229 in income taxes.
With respect to his 2010 federal tax return, SUDIK falsely reported taxable income of $25,026 and a tax due of $1,419. In his 2011 federal tax return, SUDIK falsely reported only $1,230 in taxable income and a tax due of $1,171.
SUDIK pleaded guilty to one count of filing a false tax return, a charge that carries a maximum term of imprisonment of three years and a fine of up to $250,000. He is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on July 27, 2016.
SUDIK has agreed to pay back taxes, plus penalties and interest. In addition, he has agreed to pay full restitution to the four trust beneficiaries of the funds he took from the trust without authorization.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
New York Man Sentenced to 15 Years in Prison for Trafficking A Girl to Work as A ProstituteRead the Press Release
TRENTON, N.J. – A Spring Valley, New York, man was sentenced today to 15 years in prison for trafficking and forcing a minor into prostitution for profit, U.S. Attorney Paul J. Fishman announced.
Wilbur Senat, 26, aka “Wilby,” was convicted on Count Two and Count Four of a superseding indictment charging him with sex trafficking of children and transportation of a minor to engage in prostitution. He was convicted following an eight-day trial before U.S. District Judge Michael A. Shipp, who imposed the sentence today in Trenton federal court.
According to the documents filed in this case and the evidence at trial:
The minor victim met Senat in the summer of 2011 in Haverstraw, New York. Shortly after they met, Senat took her to a motel in Nyack, New York, where he provided her with marijuana and alcohol and then forced her to engage in commercial sex acts with various individuals for which they paid Senat. The next day, Senat purchased tickets for himself and the minor victim in the names of “Mr. Senat” and “Ms. Senat,” and boarded a bus with her, taking her from New York to Philadelphia, for the purpose of having her engage in further acts of prostitution.
In addition to the prison sentence, Judge Shipp sentenced Senat to a lifetime term of supervised release, the provisions of which restrict his contact with minors, and a $5,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. The New Jersey Division of Criminal Justice also provided assistance.
The government is represented by Assistant U.S. Attorneys Molly S. Lorber, R. Joseph Gribko, and Sarah M. Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense Counsel: Scott A. Krasney, Esq., West Trenton, New Jersey
New York Man Pleads Guilty to Credit Card FraudRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Donnell J. Slay, Jr., age 21, of Uniondale, New York, pled guilty yesterday in federal court in Greenville, to conspiracy to commit access device fraud, a violation of Title 18, United States Code, Section 1029. United States District Judge Bruce Howe Hendricks, of Charleston accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on January 17, 2016, the Gaffney Police Department was summoned to the Gaffney Premium Outlet to investigate reports of fraudulent transactions. The investigation led officers to Slay who had a total of fifty fraudulent credit cards on his person.
Officers located the vehicle driven by Slay and obtained a search warrant. During execution of this warrant, officers located an additional twenty-seven counterfeit credit cards embossed with Slay’s name.
Mr. Nettles stated the maximum penalty Slay can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.
The case was investigated by agents of the Gaffney Police Department and the Department of Homeland Security, Office of Investigations. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Nevada Dry Cleaner Owner Indicted for Filing False Tax Returns and Obstructing the Internal Revenue LawsRead the Press Release
A federal grand jury in the District of Nevada returned a superseding indictment on May 10 charging a Las Vegas woman with two counts of filing false tax returns with the Internal Revenue Service (IRS) and one count of corruptly endeavoring to impair and impede the due administration of the internal revenue laws, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Daniel Bogden of the District of Nevada.
According to the superseding indictment, from at least 2005 through at least 2009, Judith Woodward, then known as Judith Atwell, was the 99 percent owner and joint operator of a dry cleaning business, Canyon Gate Cleaners, in Las Vegas, Nevada, which she held in the name of a partnership called Canyon Enterprises LLC. Woodward is alleged to have underreported the gross receipts of Canyon Gate Cleaners on the partnership’s 2005 through 2009 tax returns. She is also alleged to have underreported her personal income on her 2005 through 2009 individual income tax returns.
According to the superseding indictment, between at least 2005 and 2009, Woodward concealed the true gross receipts of the business by depositing hundreds of thousands of dollars of cash receipts into personal bank accounts she controlled or by not depositing the cash receipts into any bank account. The superseding indictment alleges that Woodward fraudulently withheld information regarding the business’s gross receipts and her personal income from the individual who prepared the business’s partnership tax returns and her individual income tax returns for the years 2005 through 2009. Woodward is alleged to have used tens of thousands of dollars of unreported cash business receipts for personal expenditures, including the purchase of luxury vehicles. Woodward is also alleged to have made false and misleading statements to special agents of IRS-Criminal Investigation (IRS-CI) during an interview in June 2010.
If convicted, Atwell faces a statutory maximum sentence of three years in prison and a $250,000 fine on each count of the superseding indictment. She also faces supervised release and restitution.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Bogden thanked special agents of IRS-CI, who are investigating the case and Trial Attorneys Christopher S. Strauss and Eric C. Schmale of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
McKinney, Texas Man Sentenced to 108 Months for Money Laundering ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that NATHAN PHILLIP WEBSTER, age 40, of McKinney, Texas, was sentenced to 108 months imprisonment, followed by 36 months of supervised release for MONEY LAUNDERING CONSPIRACY, in violation of Title 18, United States Code, Section 1956(h).
Charges arose from an investigation by the Drug Enforcement Administration. The defendant was indicted in April 2015 and pled guilty in December 2015.
The Indictment alleged that beginning in or about August of 2011, the exact date being unknown and continuing until in or about January 2013, the defendant did willfully and knowingly combine, conspire, confederate, and agree together with others known and unknown, to knowingly conduct and attempt to conduct a financial transaction affecting interstate and foreign commerce, by purchasing a Green, 2001, Ford F150, truck, with the intent to promote the carrying on of specified unlawful activity, to wit: the acquisition, possession, and distribution of methamphetamine, and that while conducting and attempting to conduct such financial transaction knew that the property involved in the financial transaction represented the proceeds of some form of unlawful activity.
The charge further alleges that the defendant deposited large sums of United States Currency into bank accounts in Dallas, Texas, knowing that the transactions were designed in whole or in part to conceal and disguise the nature, location, source, ownership, and control of the proceeds from the distribution of methamphetamine.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Rob Wallace represented the United States.
Louisiana Woman Indicted for Preparing False Tax Returns, Contempt of Court, Forging a Federal Judge’s Signature and Bank Fraud Related to the BP Deepwater Horizon Oil SpillRead the Press Release
A federal grand jury sitting in New Orleans, Louisiana, returned an indictment on May 6, which was unsealed today, against a LaPlace, Louisiana, woman charging her with 37 counts of aiding and assisting in the preparation of false tax returns, eight counts of contempt of court, one count of bank fraud and one count of forgery of a judge’s signature, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana.
According to the indictment, Shawanda Nevers aka Shawanda Hawkins and Shawanda Bryant, operated a tax return preparation business under several names and at various locations in the LaPlace area. It is alleged that between 2011 and 2016, Nevers filed 37 false tax returns for clients that claimed a variety of fraudulent losses and deductions, including false Schedule C businesses and false unreimbursed employee expenses. In September 2014, a federal judge permanently enjoined Nevers from preparing federal tax returns. Nevers is charged with contempt of court for violating that injunction by preparing eight federal income tax returns in 2015 and 2016.
Nevers also is charged with forging the signature of a federal bankruptcy judge on a false document purporting to be an order reinstating a bankruptcy petition and with bank fraud for submitting a fraudulent claim for losses supposedly caused by the BP Deepwater Horizon oil spill in 2010.
If convicted, Nevers faces a statutory maximum sentence of three years in prison for each count of aiding and assisting in the preparation of false tax returns, 30 years in prison for the bank fraud charge and five years in prison for the charge of forging the signature of a federal judge. There is no statutory maximum sentence for the contempt of court charges. She also faces substantial monetary penalties, supervised release and restitution.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of Internal Revenue Service-Criminal Investigation, who investigated the case and Assistant U. S. Attorneys Hayden Brockett and Mimi Nguyen of the Eastern District of Louisiana, and Trial Attorney Grace Albinson of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Louisiana Woman Indicted for Preparing False Tax Returns, Contempt of Court, Forging a Federal Judge’s Signature and Bank Fraud Related to the BP Deepwater Horizon Oil SpillRead the Press Release
WASHINGTON – A federal grand jury sitting in New Orleans, Louisiana, returned an indictment on May 6, which was unsealed today, against a LaPlace, Louisiana, woman charging her with 37 counts of aiding and assisting in the preparation of false tax returns, eight counts of contempt of court, one count of bank fraud and one count of forgery of a judge’s signature, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana.
According to the indictment, Shawanda Nevers aka Shawanda Hawkins and Shawanda Bryant, operated a tax return preparation business under several names and at various locations in the LaPlace area. It is alleged that between 2011 and 2016, Nevers filed 37 false tax returns for clients that claimed a variety of fraudulent losses and deductions, including false Schedule C businesses and false unreimbursed employee expenses. In September 2014, a federal judge permanently enjoined Nevers from preparing federal tax returns. Nevers is charged with contempt of court for violating that injunction by preparing eight federal income tax returns in 2015 and 2016.
Nevers also is charged with forging the signature of a federal bankruptcy judge on a false document purporting to be an order reinstating a bankruptcy petition and with bank fraud for submitting a fraudulent claim for losses supposedly caused by the BP Deepwater Horizon oil spill in 2010.
If convicted, Nevers faces a statutory maximum sentence of three years in prison for each count of aiding and assisting in the preparation of false tax returns, 30 years in prison for the bank fraud charge and five years in prison for the charge of forging the signature of a federal judge. There is no statutory maximum sentence for the contempt of court charges. She also faces substantial monetary penalties, supervised release and restitution.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of the Internal Revenue Service-Criminal Investigation and the U.S. Secret Service, who investigated the case and Assistant U.S. Attorneys Hayden Brockett and Mimi Nguyen of the Eastern District of Louisiana, and Trial Attorney Grace Albinson of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.