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21 June 2016
Northern California Resident Convicted of Tax EvasionRead the Press Release
A federal jury sitting in Oakland, California, found a local business owner guilty of three counts of tax evasion after an eight-day trial, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Brian Stretch of the Northern District of California.
Richard T. Grant, 64, of Point Richmond, California, was a 50 percent owner of Grant Engineering and Manufacturing, a business that produces plastic injection molds. The evidence presented at trial showed that for the tax years 2005 to 2009, Grant earned substantial income from the business. Grant paid a certified public accountant to prepare tax returns for the business, but he did not file these returns with the Internal Revenue Service (IRS). Grant also failed to file tax returns for himself during this period.
“Mr. Grant ignored his tax return filing obligations and when faced with IRS efforts to collect tax due, took deliberate steps to conceal income and evade paying his fair share,” said Acting Assistant Attorney General Ciraolo. “The verdict in this case serves as a clear reminder that there is a heavy price to pay for tax crimes and the department is committed to holding those engaged in such criminal conduct accountable.”
“Mr. Grant cheated on his taxes and then tried to hide that fact from the IRS,” said U.S. Attorney Stretch. “As a consequence, he now faces the real possibility of spending years in prison. This office and our colleagues in the Department of Justice will pursue tax cheats wherever and whenever they intentionally short the public fisc.”
The evidence introduced at trial established that in 2005, close in time to the initiation of IRS’s collection efforts for his past due taxes, Grant significantly curbed the use of his two checking accounts and began moving his partnership distributions from Grant Engineering to a warehouse bank in Arkansas. A warehouse bank commingles or pools clients’ funds for the purpose of concealing a particular client’s ownership of the funds. Between April 2005 and October 2006, Grant funded multiple prepaid debit cards and wrote hundreds of checks out of the account toward his mortgage and other personal expenses. When the warehouse bank was shut down as a result of a federal criminal investigation, Grant began converting his partnership distributions to cashier’s checks and cash at a local bank, avoiding depositing the vast majority of the funds into any bank account which he controlled. He also used cash to purchase hundreds of U.S. Postal money orders to pay bills and expenses, including utilities, taxes and expenses for his classic aircraft.
A sentencing hearing is scheduled on Sept. 28. Grant faces a maximum sentence of five years in prison for each count, as well as a term of supervised release and monetary penalties.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Stretch commended special agents of IRS–Criminal Investigation who investigated the case and Trial Attorney Matt Kluge of the Tax Division and Assistant U.S. Attorney Colin Sampson of the Northern District of California, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New Jersey Stock Promoter Sentenced for his Role in Pump-And-Dump SchemesRead the Press Release
BOSTON – A New Jersey stock promoter was sentenced late yesterday afternoon in federal court in Boston for his involvement in the manipulation of the stock of two separate companies, Amogear, Inc. and Greenway Technology.
Mitchell Brown, 51, of Long Branch, NJ, was sentenced by U.S. District Court Judge William G. Young to 42 months in prison and ordered to pay a fine of $1 million. Brown had previously pleaded guilty to conspiracy, securities fraud and wire fraud.
In 2013 and 2014, a federal undercover operation monitored in real-time Brown’s participation in the scheme to manipulate the stock price of Amogear, Inc. In February 2014, the Securities and Exchange Commission (SEC) suspended trading in the securities of Amogear as the attempted manipulation of its stock was underway. Prior to the suspension, Brown and his co-conspirators, who were all stock promoters, carried out a scheme to create a false appearance of an active market in the stock, including a false media campaign designed to increase the price of the stock, knowing that Amogear was a shell company without any real operations. Brown and his co-conspirators planned to sell the stock into the market at artificially inflated prices from which they would profit. What Brown did not know was that Amogear was controlled by federal agents.
Previously, in 2012 and 2013, Brown had conspired with a number of individuals to manipulate the stock price of Greenway Technology (Greenway). As part of that scheme, Brown and his co-conspirators took various steps to conceal their control over the vast majority of Greenway stock, and subsequently orchestrated a promotional campaign which included blast e-mails to many potential investors, including those in Massachusetts, containing misleading information touting Greenway’s stock. As a result of the hype created by the false and misleading promotional campaign, Brown and his co-conspirators were able to sell their Greenway stock to unwitting investors at artificially high prices. In total, the scheme caused a loss to investors of approximately $855,586.
This case arises from a multi-year investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small, publicly-traded companies whose stock often trades at pennies per share. Fraud in the microcap stock markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the SEC.
United States Attorney Carmen M. Ortiz 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 Vassili Thomadakis of Ortiz’s Criminal Division and Eric Forni and Andrew Palid of the Securities and Exchange Commission who were appointed as Special Assistant U.S. Attorneys in this case.
Mission Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on June 14, 2016, by U.S. District Judge Roberto A. Lange.
Reuben One Star, age 26, was sentenced to 46 months in custody, followed by 3 years of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and restitution which will be determined at a later date.
One Star was indicted for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury by a federal grand jury on December 8, 2015. He pled guilty to Assault with a Dangerous Weapon on March 8, 2016.
On October 12, 2015, the victim was at his home in Mission. One Star, his girlfriend, and two other individuals came to the victim’s house. One Star was intoxicated when he arrived. One Star began to argue with his girlfriend and he became aggressive toward her. One of the other individuals at the victim's house intervened in the argument and began to fight with One Star. Eventually, One Star walked out of the back door of the home. The two individuals left and they took One Star’s girlfriend with them.
One Star came back into the home and hit the victim across the face with a crow bar. The victim was knocked unconscious. The victim had a broken nose, a fractured upper jaw, and substantial facial lacerations. The victim required reconstructive surgery for the injuries to his nose. There was also a contusion in the shape of a crow bar on the victim's abdomen.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
One Star was immediately turned over to the custody of the U.S. Marshals Service.
Meth mule pleads guilty for role in Los Angeles-to-Charleston drug conspiracyRead the Press Release
CHARLESTON, W.Va. – A Los Angeles woman caught transporting a load of crystal methamphetamine from California to West Virginia pleaded guilty today to a federal drug charge, announced Acting United States Attorney Carol Casto. Danielle Dessaray Estrada, 21, entered her guilty plea to interstate travel in furtherance of a drug crime.
Estrada admitted that in March 2016, she picked up approximately five pounds of crystal methamphetamine in California. Estrada also admitted that with the help of some of her codefendants, she repackaged the methamphetamine and concealed the drugs in the back seat of her car. Estrada further admitted that she and one of her codefendants drove from California to West Virginia and they were stopped by officers in South Charleston on March 26, 2016. Law enforcement discovered the drugs during the traffic stop. Estrada additionally admitted that she had previously driven to Charleston in December 2015 to deliver drugs.
Estrada faces up to five years in federal prison when she is sentenced on October 6, 2016.
This prosecution is the result of a multi-agency investigation which led to an eight-count indictment implicating 14 defendants, including Estrada. Estrada’s codefendants are presumed innocent unless and until proven guilty in a court of law.
The FBI, DHS Homeland Security Investigations, the United States Postal Inspection Service, the Charleston Police Department, and the Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Jenny Rada Herrald is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Melton Found Guilty in Kidnapping Case of Wake Forest ManRead the Press Release
RALEIGH – The United States Attorney’s Office announced that today, KELVIN MELTON, a/k/a Dizzy, Old Man, 51, was found guilty in a jury trial of Conspiracy to Commit Kidnapping, Attempted Kidnapping and Aiding and Abetting, Kidnapping and Aiding and Abetting, and Using, Carrying, and Brandishing a Firearm During and in Relation to, and Possessing a Firearm in Furtherance of, a Kidnapping and Aiding and Abetting.
Frank Janssen was taken from his home against his will on April 5, 2014. One Eight Trey Blood member MELTON, used a cell phone that he illegally possessed while serving a life sentence in North Carolina’s Polk Correctional Institution in Butner, North Carolina, to transmit instructions to co-conspirators in the plot who then sent threats to Janssen’s wife. Specifically, MELTON gave instructions on how to kill Mr. Janssen, dispose of his body and sanitize the crime scene.
Through a coordinated effort involving many federal, state, and local law enforcement agencies, the FBI’s Hostage Rescue Team rescued Mr. Janssen at 11:55 pm on April 9, 2014 at a residence in Southeast Atlanta.
Acting United States Attorney John Stuart Bruce stated, “This crime was monstrously cruel to the victim and his family, including a dedicated public servant who was being targeted for her public service. It was also an attack on our criminal justice system. We must do more to stop convicted prisoners from reaching out from their prison cells to harm witnesses and law enforcement officials, and to continue their criminal enterprises. The convictions in this case are a start.”
“The evidence at trial showed Kelvin Melton to be a violent and ruthless individual who used his gang affiliations to commit a heinous crime against an innocent man. Due to the incredible cooperation and coordination between the FBI and both our federal and local law enforcement partners, Melton will never again be able to reach beyond the prison bars to do others harm,” said John Strong, the Special Agent in Charge of the FBI in North Carolina.
At sentencing, MELTON faces a maximum penalty of life imprisonment and a $250,000 fine.
The case was investigated by the FBI Charlotte, FBI Atlanta, the Wake Forest Police Department, the North Carolina State Bureau of Investigation with assistance by the Durham County Sheriff’s Office, Raleigh Police Department, Durham Police Department, North Carolina Alcohol Law Enforcement, Garner Police Department, North Carolina Highway Patrol, RDU Police, City County Bureau of Investigation, the Cobb County Police Department, Alpharetta Police Department, Atlanta Police Department, and the Georgia Bureau of Investigation. The United States Attorney’s Office for the Eastern District of North Carolina is handling the prosecution of these cases.
Man Receives Prison Sentence for Exposing Himself on AirplaneRead the Press Release
PHOENIX – On June 20, 2016, Craig Dewalt, 61, of Cave Creek, Ariz., was sentenced by U.S. Magistrate Judge John Z. Boyle to serve two days in prison, given three years’ probation, and ordered to pay a $2,500 fine. Dewalt was previously found guilty at a bench trial of committing lewd, indecent, or obscene acts on an aircraft.
On Feb. 27, 2015, while on a Southwest Airlines flight from Burbank, Calif., Dewalt twice exposed his genitalia while seated in a window seat. This exposure was observed by the female seated next to him. The female passenger testified at trial and suffered emotional trauma from Dewalt’s conduct.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Phoenix Police Department. The prosecution was handled by Lisa E. Jennis and Abbie Broughton Marsh, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: MJ-15-08513-JZB-1
RELEASE NUMBER: 2016-053_Dewalt
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Man Convicted for Jewelry Store RobberiesRead the Press Release
Contact Person: Nathan Williams (843) 727-4381
Columbia, South Carolina ---- Acting United States Attorney Beth Drake announced today that Charles Eloys Johnson, 35, of San Leandro, California, was convicted following a four day jury trial in United States District Court in Charleston. The Honorable Richard M. Gergel presided over the case.
Testimony developed during trial showed that Johnson and others travelled from Atlanta to rob Sylvan Jewelers in Columbia, SC, on February 19, 2015, and MP Demetre Jewelers in Charleston, SC, on March 4, 2015. Johnson was convicted of five separate counts, one count of Conspiracy to Commit Robbery Affecting Interstate Commerce, two counts of Robbery Affecting Interstate Commerce, and two counts of Brandishing a Firearm During a Violent Crime. The conspiracy and robbery counts each carry up to twenty years imprisonment under 18 U.S.C. § 1951(a) and the gun charges carry a mandatory consecutive five years plus twenty-five years imprisonment under 18 U.S.C. § 924(c). Two other defendants are still awaiting trial.
The conviction is the result of an investigation conducted by the Federal Bureau of Investigations, City of Charleston Police Department and Columbia Police Department. Acting United States Attorney Beth Drake and Assistant United States Attorney Nathan Williams prosecuted the case.
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Lusby Man Pleads Guilty to Federal Charge of Production of Child PornographyRead the Press Release
Greenbelt, Maryland –Jose Antonio Jaramillo, age 54, of Lusby, Maryland, pleaded guilty today in federal court to production of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; Special Agent in Charge Clark E. Settles of HSI Washington D.C.; Calvert County Sheriff Mike Evans; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, from at least December 2014 through July 2015, Jaramillo, posing as teenaged male named, “Tommy James,” “Thomas James Jones,” or “Thomas James,” used email, applications on cellular phones and social media sites to induce, coerce and entice more than five minor female victims between the ages of 13 and 16 to send him sexually explicit images of themselves over the internet.
Jaramillo admitted that, using the “Tommy James” persona, he engaged in or attempted to engage in, sexually explicit conversations with at least 14 minor females and induced at least seven victims to produce sexually explicit images and videos of themselves and transmit those images to Jaramillo.
As part of his plea agreement, Jaramillo must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Jaramillo and the government have agreed that if the Court accepts the plea agreement Jaramillo will be sentenced to between 15 and 19 years in prison, followed by up to a lifetime of supervised release. U.S. District Judge Paul W. Grimm has scheduled sentencing for September 21, 2016 at 9:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and Washington, D.C, the Calvert County Sheriff’s Office, and the Maryland State Police Internet Crimes Against Children Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Ray D. McKenzie and Kristi N. O’Malley, who are prosecuting the case.
Louisville Daycare Owner/Operator Sentenced to 46 Months in Prison for Fraudulently Seeking Child Care Payments from Kentucky AgencyRead the Press Release
Lottie Carisa Burgos, former owner of ABC Village Daycare, falsified daycare attendance figures
and qualifications of daycare workers
Ordered to pay $1,424,929 in restitution
LOUISVILLE, Ky. –United States Attorney John E. Kuhn, Jr. announced today the sentencing of a former Louisville daycare owner by United States District Judge Greg N. Stivers, to 46 months in prison for committing wire fraud and money laundering and was ordered to pay $1,424,929.00 in restitution to the victim agency
In March of 2016, Lottie Carisa Burgos, the former owner and operator of ABC Village Daycare, pleaded guilty in United States District Court, to 18 counts of an indictment returned by a federal grand jury on July 16, 2014.
“In committing this fraud, Ms. Burgos not only took taxpayer money intended to assist economically disadvantaged parents with childcare costs, but also placed infants and toddlers in harm’s way,” stated United States Attorney John Kuhn. “With this prosecution, we are protecting children and recovering stolen taxpayer money. I thank the Kentucky Cabinet for Health and Family Services and the Federal Bureau of Investigation for their work on this case.”
Burgos operated ABC Village Daycare at two locations, 1801 West Market Street, Louisville, Kentucky, and 2823 7th Street Road, Louisville, Kentucky. According to the plea agreement, Burgos or others acting at her direction falsified a wide range of information which was a condition of payment for child care services from Kentucky’s Department for Community Based Services. The Department for Community Based Services provides child care benefits to low-income working parents and guardians.
Burgos, or others acting at her direction, falsified the following information: the number of children who attended the daycare centers including the number of days children attended the daycare centers and the employment status of the parents.
In addition, Burgos, or others acting at her direction, falsified records of the ABC Village Daycare employees. Those records included high school diplomas (which are a requirement of child care staff with supervisory authority over minors), tuberculosis tests, and CPR certificates. A false tuberculosis test and CPR certificate are requirements of child care employees for the business to receive payment from Kentucky’s Department of Community Based Services.
Burgos pleaded guilty to 12 counts of wire fraud and 6 counts of money laundering. The total loss was $1,424,929.00.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the Office of Inspector General for the Kentucky Cabinet for Health and Family Services and the Federal Bureau of Investigation (FBI).
Long Beach Fireman charged with Illegally Dumping Sewage from Recreational VehiclesRead the Press Release
Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – June 21, 2016
SAN DIEGO – A Long Beach fireman and his firm were charged today in an eight count indictment with the illegal disposal of sewage underground, in violation of the Safe Drinking Water Act.
Kyle Vestermark and his firm, Dunes Edge Storage, allegedly discharged sewage illegally from recreational vehicles (RVs) stored at Dunes Edge Storage location in Brawley, California, as well as another location known as Dunes Toy Storage in Holtville, California, without a permit during the period from October of 2011 through April of 2015.
According to the indictment, Vestermark obtained a permit in 2004 for a 10,000 gallon holding tank for the RV sewage at the Dunes Edge location from the Imperial County Public Health Department which specifically prohibited the installation of underground leach lines (an issue which Vestermark had raised during the permitting process). The indictment further alleges that Vestermark also obtained a Conditional Use Permit from the Imperial County Planning Department in 2005 from the Imperial County Planning Board for the Dunes Toy Storage location in Holtville, which also specifically prohibited the installation of underground leach lines for the disposal of the RV sewage.
The permits required Vestermark to hire a septage firm to pump out the RV sewage from the holding tanks and dispose of it at a wastewater treatment plant. In spite of the specific prohibitions, it is alleged that Vestermark used heavy equipment in 2005 and 2006 to install underground leach lines at both locations which would permit the RV sewage to leach out underground for disposal. According to the indictment, the leach lines were removed in 2015 after Vestermark’s actions were discovered by Imperial County authorities. The indictment also seeks the forfeiture of approximately $380,000, alleged to be the proceeds of the offenses.
*The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS
Dune Edge Storage, LLC Incorporated: 2006 Brawley, California
Kyle Vestermark Age: 46 Long Beach, California
SUMMARY OF CHARGES
Count 1
Conspiracy to Illegally Discharge Sewage – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fine ($500,000 for a corporation)
Counts 2-8
Unlawful Injection of Sewage – Title 42, U.S.C., Section 300h-2(b)(2)
Maximum Penalty – 3 years in prison and a $250,000 fine
AGENCY
U.S. Environmental Protection Agency, Criminal Investigation Division; Bureau of Land Management, Office of Law Enforcement
Lee County Men SentencedRead the Press Release
Greensboro, N.C. – Two Lee County men were recently sentenced in federal court, United States Attorney for the Middle District of North Carolina Ripley Rand announced today.
Rayshawn Donaldson was sentenced on May 10, 2016 by United States District Court Judge James A. Beaty, Jr., to 180 months’ imprisonment, a 5 year term of supervised release, and a $100 special assessment fee. Donaldson had pled guilty on December 29, 2015 to the charge of possession of a firearm by a felon. (Case Number 15CR381-1).
Ramese Augustus McKoy was sentenced on June 8, 2016 by United States District Court Judge James A. Beaty, Jr., to 172 months’ imprisonment, a 3 year term of supervised release, and a $100 special assessment fee. McKoy had pled guilty on March 9, 2016 to the charge of conspiracy to possess with intent to distribute heroin. (Case Number 1:15CR411-1).
The convictions referenced above are the result of close cooperation between the members of the Lee County Project Safe Neighborhoods ("PSN") coalition. PSN is a nationwide gun and violent crime strategy designed to protect communities. The Lee County PSN coalition is comprised of the Broadway Police Department, the Sanford Police Department, the Lee County Sheriff’s Office, the Department of Public Safety Division of Adult Correction and Juvenile Justice (probation), the State Bureau of Investigation, the Lee County District Attorney’s Office, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Attorney’s Office, and many other community members and agencies.
These cases were investigated by the Sanford Police Department, the Lee County Sheriffs’ Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration. These cases were prosecuted by Assistant United States Attorney JoAnna G. McFadden.
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Las Cruces Resident Sentenced to Ten Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Christopher J. Cleveland, 36, a resident of Las Cruces, N.M., was sentenced today in federal court to 120 months in prison followed by five years of supervised release for his conviction on methamphetamine trafficking charges. Cleveland’s conviction was based on his June 9, 2015, guilty plea.
Cleveland and his codefendant Eric G. Acosta, 29, also of Las Cruces, were arrested in July 2014, on a criminal complaint charging them with methamphetamine trafficking and firearms charges. According to the complaint, during a routine traffic stop on June 23, 2014, officers of the Las Cruces Police Department discovered 889.2 grams of methamphetamine, a firearm and drug paraphernalia inside a vehicle driven by Acosta and in which Cleveland was a passenger. The complaint stated that Cleveland and Acosta had traveled from Arizona, where they obtained the methamphetamine, to Las Cruces in Doña Ana County, N.M., where they intended to distribute the drugs.
In an indictment filed on Oct. 16, 2014, Acosta and Cleveland were charged with participation in a methamphetamine trafficking conspiracy and possession of methamphetamine with intent to distribute. The indictment also charged each of the two men with being felons in possession of firearms. The two men were charged with committing these crimes on June 23, 2014, in Doña Ana County. At the time, Acosta and Cleveland each was prohibited from possessing firearms or ammunition because each had previously been convicted a felony offense.
On May 14, 2015, Acosta pled guilty to the conspiracy charge, the substantive methamphetamine trafficking charge, and to being a felon in possession of a firearm. Acosta was sentenced on June 7, 2016, to ten years in federal prison followed by five years of supervised release.
This case was investigated by the Las Cruces office of the FBI and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force and was prosecuted by Assistant U.S. Attorneys Maria Y. Armijo and Selesia Lee Winston of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Justice Department Reaches Settlement to Ensure Independent Oversight and Operations of Orleans Parish JailRead the Press Release
WASHINGTON – Today, the Justice Department, prisoner class and city of New Orleans reached a settlement with Orleans Parish Sheriff Marlin Gusman to resolve the department’s motion for contempt alleging the sheriff’s non-compliance with a consent judgment governing conditions of confinement at the Orleans Parish Jail in New Orleans. In lieu of a receiver, the U.S. District Court for the Eastern District of Louisiana issued an order approving the parties’ agreement to have the court appoint an independent jail compliance director with the final authority to operate the jail so that it achieves timely and substantial compliance with the consent judgment.
“The appointment of an independent and experienced corrections professional as compliance director will enable the jail to implement long overdue reforms to protect the rights and safety of prisoners,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We will continue our steadfast efforts to ensure that all of the men and women serving prison sentences in Orleans Parish Jail receive the full protections that our Constitution guarantees.”
“The agreement to appoint a compliance director for the Orleans Parish Jail will facilitate the structural and systemic changes needed to achieve compliance with the consent judgment, while the sheriff’s continued participation in jail administration will ensure that improvements are sustainable at the end of the compliance director’s tenure,” said U.S. Attorney Kenneth Polite of the Eastern District of Louisiana.
In a motion filed on April 25, 2016, the department requested that the court appoint a receiver with full authority to administer operations of the jail. In today’s order, the court found the sheriff in non-compliance with the consent judgment’s provisions on prisoner supervision, suicide prevention, use of force, incident reporting and tracking, prisoner grievances, investigations, classification, youthful prisoners and sanitation and environmental health. The court will appoint an independent compliance director, who will be charged with administering the day-to-day operations of the jail and will work closely with Sheriff Gusman regarding decisions and operations that materially impact compliance with the consent judgment. The sheriff will select a candidate for independent compliance director from nominees proposed by the department, prisoner class and the city. The court has the ultimate authority for appointment of the director.
The compliance director’s responsibilities will include formulating a remedial action plan to produce sustainable compliance with the consent judgment within his or her first year at the jail. The compliance director will be tasked with developing strategies to decrease jail violence; implementing sustainable hiring measures; ensuring adequate staff training, supervision and discipline; reducing incidents of prisoner self-harm and suicide and decreasing reliance on prisoner lockdown or cell confinement. In order to address staffing problems and foster a professional culture, the compliance director will have the authority to hire, fire and reassign jail staff. In addition, the compliance director will be responsible for formulating and presenting the jail budget to the city council and for administering payments, authorizing procurement and entering into contracts for jail operations, with oversight by the city.
The compliance director’s authority will continue until the court determines that sustained and sustainable material progress with consent judgment compliance is achieved, including development and implementation of required policies, adequate staff training and development of a quality assurance system to effectively evaluate whether staff are implementing the policies in practice and correct their conduct when they do not. More information on the compliance director position can be found in the job posting attached and applications for the job can be sent to [email protected].
This settlement follows a six-day evidentiary hearing, which had not concluded, and avoids further delay from extended litigation and appeals.
This case was initiated as a private prisoner class action filed in 2012. The department intervened pursuant to the Civil Rights of Institutionalized Persons Act, which authorizes the department to seek a remedy for a pattern or practice of conduct that violates the constitutional rights of persons confined in a jail, prison or other correctional facility. The department’s motion was filed jointly with the plaintiff class, represented by the MacArthur Justice Center.
For more information on the Civil Rights Division, please visit www.justice.gov/crt.
Justice Department Reaches Settlement to Ensure Independent Oversight and Operations of Orleans Parish JailRead the Press Release
Today, the Justice Department, prisoner class and city of New Orleans reached a settlement with Orleans Parish Sheriff Marlin Gusman to resolve the department’s motion for contempt alleging the sheriff’s non-compliance with a consent judgment governing conditions of confinement at the Orleans Parish Jail in New Orleans. In lieu of a receiver, the U.S. District Court for the Eastern District of Louisiana issued an order approving the parties’ agreement to have the court appoint an independent jail compliance director with the final authority to operate the jail so that it achieves timely and substantial compliance with the consent judgment.
“The appointment of an independent and experienced corrections professional as compliance director will enable the jail to implement long overdue reforms to protect the rights and safety of prisoners,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We will continue our steadfast efforts to ensure that all of the men and women serving prison sentences in Orleans Parish Jail receive the full protections that our Constitution guarantees.”
“The agreement to appoint a compliance director for the Orleans Parish Jail will facilitate the structural and systemic changes needed to achieve compliance with the consent judgment, while the sheriff’s continued participation in jail administration will ensure that improvements are sustainable at the end of the compliance director’s tenure,” said U.S. Attorney Kenneth Polite of the Eastern District of Louisiana.
In a motion filed on April 25, 2016, the department requested that the court appoint a receiver with full authority to administer operations of the jail. In today’s order, the court found the sheriff in non-compliance with the consent judgment’s provisions on prisoner supervision, suicide prevention, use of force, incident reporting and tracking, prisoner grievances, investigations, classification, youthful prisoners and sanitation and environmental health. The court will appoint an independent compliance director, who will be charged with administering the day-to-day operations of the jail and will work closely with Sheriff Gusman regarding decisions and operations that materially impact compliance with the consent judgment. The sheriff will select a candidate for independent compliance director from nominees proposed by the department, prisoner class and the city. The court has the ultimate authority for appointment of the director.
The compliance director’s responsibilities will include formulating a remedial action plan to produce sustainable compliance with the consent judgment within his or her first year at the jail. The compliance director will be tasked with developing strategies to decrease jail violence; implementing sustainable hiring measures; ensuring adequate staff training, supervision and discipline; reducing incidents of prisoner self-harm and suicide and decreasing reliance on prisoner lockdown or cell confinement. In order to address staffing problems and foster a professional culture, the compliance director will have the authority to hire, fire and reassign jail staff. In addition, the compliance director will be responsible for formulating and presenting the jail budget to the city council and for administering payments, authorizing procurement and entering into contracts for jail operations, with oversight by the city.
The compliance director’s authority will continue until the court determines that sustained and sustainable material progress with consent judgment compliance is achieved, including development and implementation of required policies, adequate staff training and development of a quality assurance system to effectively evaluate whether staff are implementing the policies in practice and correct their conduct when they do not. More information on the compliance director position can be found in the job posting attached and applications for the job can be sent to [email protected].
This settlement follows a six-day evidentiary hearing, which had not concluded, and avoids further delay from extended litigation and appeals.
This case was initiated as a private prisoner class action filed in 2012. The department intervened pursuant to the Civil Rights of Institutionalized Persons Act, which authorizes the department to seek a remedy for a pattern or practice of conduct that violates the constitutional rights of persons confined in a jail, prison or other correctional facility. The department’s motion was filed jointly with the plaintiff class, represented by the MacArthur Justice Center.
For more information on the Civil Rights Division, please visit www.justice.gov/crt.
Order for Appointment of Compliance Director
Compliance Director Job Announcement
Justice Department Closes Case Following Colorado Judiciary Reforms Removing Language BarriersRead the Press Release
The Justice Department today announced the closure of its case concerning the provision of language assistance to individuals with limited English proficiency (LEP) in the state court system following the successful implementation of reforms by the Colorado Judicial Department.
The Justice Department and the Colorado Judicial Department successfully resolved an investigation of an administrative complaint filed under Title VI of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color or national origin in federally funded programs or activities.
“The Justice Department will continue to work tirelessly to ensure equal access to justice for all people, regardless of their language ability,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We commend State Court Administrator Gerald Marroney and his staff for their dedicated, collaborative efforts to transform the delivery of language access services for the benefit of all.”
The complaint alleged that courts in Colorado were requiring LEP civil parties to bring their own interpreters to court. In 2011, former Chief Justice Michael L. Bender and State Court Administrator Gerald Marroney signed a memorandum of agreement with the department. At the same time, Chief Justice Bender amended Chief Justice Directive 06-03 to mandate that, effective immediately, qualified interpreters and other approved language assistance would be provided at no charge for LEP individuals in all court proceedings, services and programs. Following further negotiations, the court’s Office of Language Access issued a comprehensive strategic plan in 2012 that defined 35 needed improvements to court policies, standards, infrastructure and training in order to support the court system’s ability to deliver timely and appropriate language assistance statewide.
Earlier this year, the Colorado Judicial Department completed the work required by the plan. It also successfully complied with the monitoring requirements set forth in the memorandum of agreement, including further amending the Chief Justice Directive. Today, after the court system completed the conditions for termination of the agreement, the department officially closed the case.
The department and the Colorado Judicial Department have worked cooperatively to improve communications between LEP court users and court personnel. In addition to adopting the comprehensive language access policy contained in the Chief Justice Directive, the judiciary’s accomplishments include:
- Revised standards for testing, classifying and disciplining court interpreters, and devised standards to promote hiring of bilingual customer service staff and determine their proficiency in other languages;
- Created a centralized state telephone interpreter center staffed by certified court interpreters trained to provide remote interpreter assistance in limited circumstances and to assist personnel statewide in providing counter assistance for LEP customers;
- Convened an advisory committee including judges, administrators, interpreters and attorneys that provide recommendations on policies, procedures and implementation issues;
- Improved software to assign interpreters to proceedings;
- Translated hundreds of state and local court forms and signs into Spanish, and this year began translations into six other languages regularly encountered;
- Designed and delivered trainings and reference materials for judges, staff and interpreters and acquired access to on-line staff training modules;
- Designed and distributed signs in different formats and languages advising court visitors of the availability of language services at no cost;
- Began to integrate into pleadings and case management orders notice of the availability of interpreter assistance;
- And, improved the system for discipline of contract interpreters for violation of professional standards and created a language access complaint system.
The case was handled by Senior Attorney Paul M. Uyehara of the Civil Rights Division’s Federal Coordination and Compliance (FCS) Section.
The complaint was resolved as part of the FCS initiative to ensure that state courts comply with the language access requirements of Title VI. To ensure that no LEP individual is denied justice due to a court’s failure to provide language services, the FCS courts team provides policy guidance and technical assistance to state court systems and undertakes enforcement actions across the country.
For further information about FCS and Title VI, please visit https://www.justice.gov/crt/fcs. For additional LEP-related resources, please visit http://www.lep.gov/index.htm.
Colorado Judicial Department Closing Letter
Colorado Courts Release Vietnamese Translation
Jefferson County, Kentucky, Dentist Guilty of Illegal Distribution of Controlled SubstancesRead the Press Release
21,866 Hydrocodone pills prescribed during 9 month period
LOUISVILLE, Ky. – A Jefferson County, Kentucky, dentist pleaded guilty in United States District Court today, before Magistrate Judge Colin H. Lindsay, to a charge of illegal distribution of controlled substances announced United States Attorney John E. Kuhn, Jr.
In court today, Rodney B. Fultz, 63, admitted to allowing an employee who was not authorized to write prescriptions for controlled substances to use his DEA registration number to prescribe 21,866 hydrocodone pills during a ten month period.
Specifically, according to the plea agreement, during calendar year 2012, Fultz owned Market Street Dental in Louisville, Kentucky. Between January 2012 and November 2012, D.C.K., also a dentist, performed dental work on patients at Market Street. At the time, D.C.K.’s DEA (Drug Enforcement Administration) registration number was voluntarily suspended, which precluded him from writing prescriptions for controlled substances. Nonetheless, Fultz knowingly gave D.C.K. his DEA registration number so that D.C.K. could prescribe controlled substances for his patients. Fultz was rarely at Market Street, and did not supervise, review, or approve any of these prescriptions when they were written.
Between January 2012 and November 2012, D.C.K. prescribed 21,866 hydrocodone pills to his patients, using Rodney B. Fultz’s DEA registration number. Hydrocodone is a highly addictive controlled substance used for the treatment of pain. Although now a Schedule II controlled substance, hydrocodone was a Schedule III controlled substance in 2012.
At the time of sentencing, the United States will agree to a sentence of two years of probation , a fine of $45,000 and require Fultz to permanently surrender both his DEA registration number and his license to practice dentistry in the Commonwealth of Kentucky.
Sentencing will be scheduled before Senior District Judge Thomas B. Russell.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the United States Drug Enforcement Administration (DEA) and Louisville Metro Police Department.
Indiana Man Arrested on Terrorism ChargeRead the Press Release
18 Year Old Attempted to Travel Overseas to Join ISIL
A Brownsburg, Indiana, man was arrested today for attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The arrest was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Josh J. Minkler of the Southern District of Indiana and Special Agent in Charge W. Jay Abbott of the FBI’s Indiana Division.
Akram Musleh, 18, was arrested by FBI agents while attempting to board a bus from Indianapolis to New York, where he was to fly to and transit through Morocco on his way to ISIL-controlled territory. The criminal complaint alleges that he planned to provide personnel (himself) to ISIL.
“According to the complaint, Musleh attempted to travel overseas to join ISIL and to provide material support to the designated terrorist organization,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is countering terrorist threats, and we will continue to work to stem the flow of foreign fighters abroad and bring to justice those who attempt to provide material support to designated foreign terrorist organizations.”
“The radicalization of American citizens by terrorist organizations like ISIL is a threat to our safety here and abroad,” said U.S. Attorney Minkler. “I am committed to using the full authority of the United States Attorney’s Office to identify, investigate and prosecute those that provide material support to terrorists. I would like to thank the Federal Bureau of Investigation and the Brownsburg Police Department for working with us during this investigation. We will continue to work closely with our law enforcement partners but as in this case, we rely heavily on the public’s assistance to help make our community safe.”
“Terrorism is the FBI’s number one priority and we work closely with our law enforcement partners to ensure the safety of our community,” said Special Agent in Charge Abbott. “This case demonstrates the value of law enforcement collaboration and community engagement.”
A criminal complaint is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court. If convicted, Musleh faces a maximum sentence of 20 years in prison, a lifetime of supervised release and a $250,000 fine.
This prosecution is being handled by Assistant U.S. Attorneys Bradley Shepard and Doris Pryor of the Southern District of Indiana and Trial Attorneys Paul Casey and Kiersten Korczynski of the National Security Division’s Counterterrorism Section.
Independence Woman Sentenced for $235,000 Arson, Insurance Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., woman was sentenced in federal court today for her role in a $235,000 arson and insurance fraud conspiracy.
Tina L. Shonk, 35, of Independence, was sentenced by U.S. District Judge Brian C. Wimes to three years and six months in federal prison without parole. The court also ordered Shonk to pay $242,717 in restitution to her victims and to forfeit to the government $62,364.
On Jan. 29, 2016, Shonk pleaded guilty to participating in a conspiracy to commit arson and wire fraud, and to one count of mail fraud. Shonk admitted that she led an arson and insurance fraud conspiracy in 2014. Shonk obtained renter’s insurance on a house she rented in the 3500 block of Garfield in Kansas City, Mo., then burned the house with the help of co-conspirators, and made false claims on the insured property.
Co-defendant Roy Thieman, 31, of Kansas City, also pleaded guilty to his role in the scheme and awaits sentencing.
In January 2014 Shonk obtained renter’s insurance, claiming personal property valued at $82,000, much more than the value of her personal property. At the time, Shonk owed approximately $7,929 in back due rent and the gas had been shut off due to non-payment. On April 2 and 3, 2014, Shonk and her co-conspirators moved any personal property of value to a storage unit. They also moved damaged and broken electronic equipment and appliances into the house so that it would appear that valuable appliances were destroyed. By this time, Shonk owed $10,356 in back due rent and her landlord had begun eviction proceedings.
On April 4, 2014, Shonk and her co-conspirators set fire to the house by covering a space heater with a blanket and setting fire to the blanket, and then leaving the house. The Kansas City Fire Department extinguished the fire but the house was a total loss.
After the fire, Shonk submitted fraudulent personal property claims totaling $112,789, although several witnesses and Shonk’s landlord estimated Shonk’s property to be valued at only approximately $500. The insurance company paid Shonk $57,364; she paid Thieman $2,500 and a third co-conspirator $4,000.
The owner of the house had an insurance policy that paid out a total of $173,100.
In May 2014, Shonk and Thieman moved into a house in the 3800 block of Pittman Road in Kansas City, Mo., a property managed by a fourth co-conspirator. On Oct. 18, 2014, police arrested this co-conspirator and found a letter from Thieman to Shonk outlining a plan to repeat the arson insurance fraud scheme at the house on Pittman Road. Thieman wrote a letter to Shonk outlining plans to insure their personal property and then burn the house, stating in part, “there can be no evidence, nor signs of foul play, or accelerant.”
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the Kansas City, Mo., Police Department and the U.S. Postal Inspection Service.
Illinois Couple Sentenced for Multiple Kidnappings and Transporting Minor with Intent to Engage in Sexual ActivityRead the Press Release
Nicole and Calvin Eason were sentenced today to each serve 40 years in prison for kidnapping and transporting a minor with intent to engage in sexual activity.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney James A. Lewis of the Central District of Illinois and Special Agent in Charge Sean Cox of the FBI’s Springfield, Illinois, Division made the announcement.
Nicole Eason, 37, and Calvin Eason, 47, both formerly of Danville and Westville, Illinois, were sentenced by Chief U.S. District Judge James E. Shadid of the Central District of Illinois, who also ordered each to serve a lifetime term of supervised release. On Dec. 18, 2015, a federal jury in Peoria, Illinois, found Nicole Eason guilty of two counts of kidnapping and one count of transportation with intent to engage in criminal sexual activity with a minor. On Nov. 6, 2015, Calvin Eason pleaded guilty to all three counts in the indictment.
Evidence at trial established that in 2006 through 2008, the Easons sought to adopt through an informal process sometimes referred to as private “re-homing,” in which the legal adoptive family can no longer care for a child and transfers the child to another’s custody. In 2007, the Easons communicated with a minor’s parents about rehoming and misrepresented material facts about their background to gain the parents’ trust, including, among other things, that they had a home study “waiver,” which was used to verify the Easons as fit caregivers. Based on these misrepresentations, one of the minor’s parents transported the child across state lines in 2007 to live with the Easons. The minor testified that while in the Easons’ custody for nearly a month, both Nicole and Calvin Eason repeatedly sexually and physically abused her.
Evidence at trial also established that in 2008, the Easons kidnapped a second minor in the same manner, who was with them for a few days. That child and a third identified minor victim testified that the Easons subjected the minors to inappropriate sexual behavior and “grooming” while in their custody. All three minors also testified about the deplorable living conditions in the Eason home.
The FBI’s Springfield Division investigated the case in cooperation with the Vermilion County, Illinois, Sheriff’s Department. Senior Trial Attorney Jennifer Toritto Leonardo of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Elly Peirson of the Central District of Illinois prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Husband, Wife Plead Guilty to Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Clark, Mo., couple have pleaded guilty in federal court to their roles in a conspiracy to distribute methamphetamine in Randolph and Boone Counties, Mo.
Miguel Flores-Ramirez, 33, of Clark, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth today to the charge contained in an Oct. 1, 2014, federal indictment. His wife, Kena Marie Flores-Ramirez, pleaded guilty on May 19, 2016, to her role in the conspiracy.
According to today’s plea agreement, law enforcement officers intercepted phone calls between Miguel Flores-Ramirez and another individual that indicated a shipment of methamphetamine was to be delivered to him in Columbia, Mo. He arranged for Kena Flores-Ramirez and a co-conspirator to pick up a vehicle in which the methamphetamine was hidden and drive the vehicle back to their residence in Clark.
Officers saw Kena Flores-Ramirez leave their residence at 5:21 a.m. on May 23, 2014. She and a co-conspirator drove to a parking lot on Vandiver Drive in Columbia, where they met a car carrier. Her co-conspirator drove out of the parking lot in a maroon 1999 Toyota Tacoma with no registration that had been on the car carrier.
Law enforcement officers made contact with the driver of the car carrier, who stated that he worked for a logistics company from Maryland. He showed the agent a bill of lading for a 1999 Toyota Tacoma that he had just delivered. He stated that he had obtained the vehicle on May 21, 2014, in Denver, Colo., and that it was the last vehicle he picked up before driving to Columbia. He stated that he just delivered the vehicle and was paid a $600 transport fee.
Officers conducted traffic stops of both Kena Flores-Ramirez and her co-conspirator. A narcotics dog alerted to the area of the rear bumper and the passenger side rear wheel well on the exterior of the Toyota Tacoma. They were released, but officers kept the Toyota Tacoma in order to conduct a more thorough search. After they left, officers intercepted a phone call in which Kena Flores-Ramirez called her husband and told him they had been stopped, the truck had been taken, and to clean out the house and dispose of everything. Later that day, officers intercepted a phone call from Miguel Flores-Ramirez to another individual in which he said “they will find something” (the methamphetamine) “if they tear it (the Tacoma) apart.”
Officers searched the Toyota Tacoma and found six large vacuum-sealed bags and four smaller bags of methamphetamine hidden in the gas tank. The large bags weighed approximately one pound each, and the smaller bags approximately a half-pound each, for a total of 3.492 kilograms of pure methamphetamine.
Under federal statutes, both Miguel and Kena Flores-Ramirez are subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department, the FBI, IRS-Criminal Investigation and the Missouri State Highway Patrol.
Homestead Resident Sentenced for Illegally Trafficking in Marine LifeRead the Press Release
A Homestead resident was sentenced to three years’ probation for illegally trafficking in marine life.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tracy Dunn, Assistant Director Southeast Region, National Oceanic and Atmospheric Administration (NOAA), Office of Law Enforcement, and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, announced that Dan Q. Lin, 43, of Homestead, Florida, was sentenced today in Key West to three years’ probation for conspiring to violate the federal Lacey Act by transporting, selling, receiving, acquiring, and purchasing a Florida spiny lobster, in violation of Title 16, United States Code, Sections 3372(a)(2)(A) and 3373(d)(1).
In a previous related matter, Eric Burman, 42, of Boca Raton was convicted of a similar charge and was ordered to serve a three year term of probation and to pay a fine of $250,000 in Case No. 14-10008-CR-KING. According to statements in Court, Burman was President and the sole Director of a Florida corporation with its principal place of business in Pompano Beach, FL. Burman, through the business entity, was engaged in the wholesale commercial seafood industry, including the export of live Florida spiny lobster to the seafood market in China. At the same time, Lin was the Director and owner of a Florida corporation also located in the Pompano Beach area.
According to court documents, both defendants admitted, that during August and September 2010, they purchased spiny lobster from harvesters in Monroe County, Florida without creating and providing to the harvesters and the Florida Fish & Wildlife Conservation Commission, trip tickets reflecting the transaction. Thereafter, Lin caused the lobster to be transported to Burman’s corporate business premises in Pompano Beach for packing and shipping. Burman agreed to allow Lin to package, mark, and ship the spiny lobster under his corporate entity’s name and through his shipping agent. The lobster was transported from Pompano Beach to a commercial airfreight carrier at Miami International Airport and exported to Hong Kong, China. The charge against Lin identified a specific shipping transaction in August 2010 involving approximately 446 kilograms of illegally trafficked spiny lobster.
Mr. Ferrer commended the investigative efforts of NOAA’s Office of Law Enforcement and ICE-HSI, who participated in the development of this case. This case was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Harper County Cattle Buyer Indicted on Federal Fraud ChargesRead the Press Release
WICHITA, KAN. - A cattle buyer from Harper County was indicted Tuesday on federal fraud charges, Acting U.S. Attorney Tom Beall said.
Randall D. Patterson, 62, Anthony, Kan., is charged with 14 counts of wire fraud. Patterson owned Anthony Livestock Co. (ALC), which was in the business of buying and selling cattle. He was the president of the National Livestock Marketing Association from 2004 to 2006.
The indictment alleges Patterson had an agreement to buy cattle at a “delivered price” from JBS Five Rivers Cattle Feeding. That price included the price paid for the cattle, the cost of freight, health costs for cattle and a commission of 50 cents per hundredweight. Five Rivers would notify Patterson of a maximum delivered price and Patterson would purchase cattle at sales barns in Kansas and Oklahoma. The sales barns would prepare invoices showing the price paid at auction.
The indictment alleges Patterson:
Caused sales barns to issue invoices falsely inflating the prices ALC agreed to pay at auction.
Caused ALC employees to fax invoices to Five Rivers falsely inflating the amount paid for cattle.
Caused at least 14 faxes to be sent to Five Rivers and other cattle feeding companies falsely inflating the amount paid ALC paid for cattle.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each fraud count. The FBI and the U.S. Department of Agriculture investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
OTHER GRAND JURY INDICTMENTS
Trayvon L. Williams, 21, Wichita, Kan., is charged in a superseding indictment with one count of unlawful possession of a firearm following a felony conviction, one count of unlawful possession of ammunition following a felony conviction, and one misdemeanor count of possession of marijuana. The crimes are alleged to have occurred Dec. 1, 2015 in Wichita, Kan.
If convicted he faces a penalty of up to 10 years in federal prison and a fine up to $250,000 on each of the firearm charges, and up to a year and a fine up to $1,000 on the marijuana charge. The Wichita Police Department investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Dat T. Huynh, 26, Wichita, Kan., is charged with one count of unlawful possession of a firearm by a user of controlled substances, one count of unlawful possession of ammunition by a user of controlled substances, one count of unlawful possession of a sawed off shotgun and one misdemeanor count of possession of marijuana. The crimes are alleged to have occurred March 25, 2016, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the first two firearms charges, a maximum penalty of 10 years and a fine up to $10,000 on the shotgun charge, and a maximum penalty of one year and a fine up to $1,000 on the marijuana charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Alexander S. Rivera, 22, Long Beach, Calif., and Destiney L. Metzger, 18, Long Beach, Calif., are charged with one count of possession with intent to distribute methamphetamine and one count of interstate travel in furtherance of drug trafficking. The crimes are alleged to have occurred June 11, 2016, in Sedgwick County, Kan.
If convicted, they face penalty of not less than 10 years and a fine up to $10 million on possession with intent to distribute charge, and a maximum penalty of five years and a fine up to $250,000 on the interstate travel charge. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Kevin M. Jones, 30, Wichita, Kan., and Treasure N. Jones, 28, Wichita, Kan., are charged with three counts of counterfeiting $20 and $50 bills. The crimes are alleged to have occurred April 9 and 10, 2016, in Sedgwick County, Kan.
If convicted, they face a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The Wichita Police Department investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Anthony Grant Oshel, 37, Wichita, Kan., is charged with three counts of counterfeiting $20 bills. The crimes are alleged to have occurred March 24 and 25, 2016, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The Wichita Police Department investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Gretna Man Found Guilty of Mail FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MELVIN LEWIS II, age 53, of Gretna, was convicted of thirty (30) counts of mail fraud (18 U.S.C. § 1341) today after a one-day bench trial before United States District Judge Carl J. Barbier.
According court records, during the course of and subsequent to his employment by an off-shore services company located in Harvey, LEWIS devised a scheme to defraud various employees of that company and other public servants and officials. As a part of his mail fraud scheme, LEWIS caused “demand for payment” letters to be mailed to victims. When his demands were ignored, LEWIS filed fraudulent liens against personal real property of the victims and sent additional demands for payment stating that the liens would not be removed until payment was received.
LEWIS faces a maximum penalty, as to each count, of twenty (20) years imprisonment, followed by a three (3) year term of supervised release, and a $250,000 fine. Judge Barbier set sentencing for October 13, 2016.
U.S. Attorney Polite praised the work of the Special Agents of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Gregory M. Kennedy and Jonathan L. Shih were in charge of the prosecution.
Greenbrier County man pleads guilty to Federal oxycodone crimeRead the Press Release
CHARLESTON, W.Va. – A Greenbrier County man pleaded guilty today to a federal drug crime, announced Acting United States Attorney Carol Casto. Edgar Crislip, 48, of Ronceverte, entered his guilty plea to distribution of oxycodone.
Crislip admitted that on November 30, 2015, he distributed oxycodone pills to a confidential informant in Ronceverte. He further admitted that he sold oxycodone pills on three other occasions.
Crislip faces up to 20 years in federal prison when he is sentenced on October 5, 2016.
The Greenbrier Valley Drug and Violent Crime Task Force conducted the investigation. Assistant United States Attorney John File is handling the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
This case was prosecuted under the Greenbrier Valley Heroin and Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Greenbelt Carjacker Sentenced to over 8 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Jeffrey Carl Franklin, age 29, of Greenbelt, Maryland, today to 102 months in prison, followed by three years of supervised release, for carjacking and being a felon in possession of a gun.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation’s Washington Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Montgomery County State’s Attorney John McCarthy; Maryland Attorney General Brian E. Frosh; Chief Alan Goldberg of the Takoma Park Police Department; Chief Ronald A. Pavlik, Jr. of the Metro Transit Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and Chief Earl L. Cook of the Alexandria (City) Police Department.
According to his plea agreement, on February 8, 2012, Franklin, David Peebles, and another co-conspirator drove to the Manchester Road area of Silver Spring, Maryland, where they spotted an individual parking a 2008 Infiniti. As the individual got out of the vehicle, two of the co-conspirators approached the individual. At gunpoint, the two co-conspirators demanded the keys to the car, took the victim’s keys, and then drove away in the Infiniti.
On March 2, 2012, law enforcement officers executed a search warrant at Franklin’s residence in Greenbelt, Maryland. Officers seized a .380 caliber pistol loaded with six rounds of ammunition in Franklin’s bedroom. Franklin knew that he was prohibited from possessing a firearm or ammunition as a result of a previous felony conviction.
David Nathaniel Peebles, age 32, of Washington, D.C., previously pleaded guilty to his role in the conspiracy and was sentenced to eight years in prison for carjacking and being a felon in possession of a gun. Another member of the conspiracy, Samuel Damien Bynum, age 26, of Washington, D.C., pleaded guilty and was sentenced to 207 months in prison for conspiring to use a gun during carjackings, using a gun during a carjacking, carjacking and being a felon in possession of a gun and ammunition.
United States Attorney Rod J. Rosenstein commended the FBI; the Prince George’s County, Montgomery County, Takoma Park, Metro Transit, Alexandria and Metropolitan Police Departments; the Prince George’s County and Montgomery County State’s Attorney’s Offices; and the Maryland Attorney General’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and William D. Moomau, and Special Assistant Matthew L. Paeffgen, who prosecuted the case.
Grants Pass Man Sentenced for Excavation and Removal of Archaeological ResourcesRead the Press Release
MEDFORD, Ore –Ronnie Lester Bishop, 44, of Grants Pass, Oregon, was sentenced today by U.S. District Judge Ann Aiken, in Medford, Oregon to five years of probation for violating the Archeological Resource Protection Act (ARPA). The sentence was imposed based on defendant’s guilty plea entered on February 8, 2016, to a felony charging him with violating ARPA by excavating, removing and damaging an archaeological resource located on federal land. In entering the guilty plea, Bishop admitted that between April 2013 and June 2014, he violated ARPA by digging on federal land managed by BLM and causing damage to a known archaeological resource. Bishop was documented excavating and removing items from the site on at least 21 different days between April 2013 and June of 2014.
While on probation, Bishop will be banned from lands managed by BLM, U.S. Forest Service, National Park Service, Bureau of Indian Affairs and the U.S. Fish & Wildlife Service. Bishop was ordered to pay $ 9,871.49 in restitution for costs associated with restoring the archaeological site he damaged and perform 150 hours of community service. Bishop also forfeited over 700 archaeological items seized from his residence during a search warrant executed in June 2014.
“These archeological resources are of particular significance to the tribal communities, and the looting of these resources has a harmful impact on those communities,” said U.S. Attorney Williams. “We will aggressively pursue those individuals who commit these violations of law.” ARPA protects archaeological resources on public and Indian lands. It provides felony-level penalties for unauthorized excavation, removal, damage, alteration, or defacement of any archaeological resource, which is defined as material remains of past human life or activities that are at least 100 years old. The archaeological resource at which Bishop committed his crime is located on federal land along the Rogue River which has served as several permanent Native American villages for over 8,000 years.
This case was investigated by the Bureau of Land Management, the Grants Pass Police Department, and the Southern Oregon High Tech Crimes Task Force. Assistant U.S. Attorneys Tim Simmons and Judi Harper prosecuted the case.
Georgia Man Pleads Guilty to Wire FraudRead 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 Robert Storey, 44, of Atlanta, Georgia, pleaded guilty before U.S. District Court Judge Richard J. Arcara, to wire fraud. The charge carries a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that the defendant defrauded a film production company located in England in an advance fee scheme which resulted in $300,000 dollars in financial losses. Storey represented to the victim film production company that he and a co-conspirator could obtain a standby letter of credit from banks outside the United States. The defendant assured company representatives that he could monetize the stand by letter of credit which would provide the company with millions of dollars in loans.
As part of the scheme, Storey required the company to provide him with $300,000 which would purportedly cover the costs associated with the financial transaction. The funds were provided but instead of using the money to obtain financing, the defendant and his co-conspirator used the funds for their own purposes.
Storey similarly defrauded two other film production companies. The total loss amount for all three film production companies was $780,000.
Three co-conspirators; Rhett Shepard, Nick Mussolini and Rodney Walker, have been convicted and are awaiting sentencing.
The plea was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Sentencing is scheduled for September 26, 2016 at 12:30 p.m. before Judge Arcara.
Four charged with illegal reentryRead the Press Release
ELKINS, WEST VIRGINIA – A federal grand jury returned indictments today charging four men found in Morgantown with illegal reentry into the United States, U.S. Attorney William J. Ihlenfeld, II, announced.
Selvin Garcia-Xitumul, 21, originally from Guatemala; Wilson Ariel Garcia-Guzman, 21, originally from Guatemala; Marco May-Cucil, 27, originally from Guatemala; and Javier Vargas-Zaldivar 32, originally from Honduras, were allegedly discovered in May 2016 in Monongalia County, West Virginia after previously having been deported from the country. They are each charged with one count of “Reentry of a Removed Alien.” They each face up to two years in prison and a fine up to $250,000.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah W. Montoro is prosecuting the cases on behalf of the government. The United States Department of Homeland Security Immigrations and Customs Enforcement is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Four Gibson County Men Indicted in Meth Distribution ConspiracyRead the Press Release
Jackson, TN – Four Gibson County residents have been indicted for conspiring to distribute large quantities of highly pure methamphetamine throughout West Tennessee. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee; and Johnie Carter, Special Agent in Charge of the West Tennessee Drug Task Force, announced the indictment today.
The following defendants have been indicted and arrested on a five-count drug conspiracy involving more than 50 grams of meth.
• Lonnie Edward George, 53, of Trenton, Tennessee
• Brian Mayo, 32, of Trenton, Tennessee
• Keith Sims, 44, of Trenton, Tennessee
• Thomas Vinson, 57, of Trenton, Tennessee
According to the indictment, between August 2015 and May 2016, the defendants conspired with each other to distribute and possess with the intent to distribute large quantities of "ice," which is meth with a purity level greater than 80 percent. The defendants also distributed multiple grams of meth.
During the course of the investigation, law enforcement officers seized more than two pounds of ice, two firearms, 14 vehicles, and approximately $15,000 in drug proceeds from the defendants.
All four defendants have been charged with one count of conspiring to distribute 50 grams or more of actual meth (ice); and one count of aiding and abetting each other to distribute, attempt to distribute, possess with the intent to distribute and attempt to possess with the intent to distribute 50 grams or more of meth.
George is charged with an additional count of possession with intent to distribute 50 grams or more of meth.
Mayo is charged with an additional count of possession with intent to distribute five grams or more of meth; and one count of possession of a firearm in furtherance of a drug trafficking crime.
This case is being investigated by the 28th Judicial District Drug Task Force; Tennessee Bureau of Investigation (TBI); Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Gibson County Sheriff’s Department.
Assistant U.S. Attorney Vic Ivy is prosecuting this case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former President Pro Tem of Oklahoma Senate Sentenced to Serve 18 Months for BriberyRead the Press Release
Oklahoma City, Oklahoma – This morning, United States District Judge Robin Cauthron sentenced MICHAEL STEVEN MORGAN, 61, of Stillwater, Oklahoma, to serve 18 months in federal prison following his conviction for bribery in 2012, announced Mark A. Yancey, Acting U.S. Attorney for the Western District of Oklahoma.
Morgan was convicted following a jury trial in March of 2012. According to evidence at trial, Morgan, an attorney, accepted payments from a business that owned assisted-living centers, disguised as legal fees, in exchange for favorable treatment in the legislature. Specifically, Morgan took twelve $1,000 bribe payments in 2006 and 2007, disguised as legal fees, from Silver Oak Senior Living Center. Evidence showed that Silver Oak had been at odds with the Oklahoma Department of Health, which was attempting to impose regulations on assisted-living facilities. In exchange for the bribe payments, evidence showed that Morgan authored Senate Bill 738, which became law after modification at the end of the 2007 session and helped Silver Oak by lifting some of its regulatory burdens.
The jury found Morgan not guilty of conspiracy and certain mail fraud counts. The jury could not reach a unanimous verdict on one count of extortion and other mail fraud counts against Morgan. Morgan was originally sentenced in 2013 and, following an appeal, was resentenced today to serve 18 months in federal prison.
This case is the result of an investigation by Federal Bureau of Investigation and was being prosecuted by Assistant U.S. Attorney Scott E. Williams.
Former KC Group Home Operator Sentenced for $400,000 Tax Evasion SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former operator of several group homes for mentally and physically handicapped residents in Kansas City, Mo., was sentenced in federal court today for a nearly $400,000 scheme to evade paying taxes.
Dedree R. Carlisle, 52, of Kansas City, Mo., was sentenced by U.S. District Judge Dean Whipple to two years in federal prison without parole. The court also ordered Carlisle to pay $397,213 in restitution.
On March 9, 2016, Carlisle pleaded guilty to attempting to evade taxes. Carlisle owned and operated a group home health care business at multiple locations in Kansas City, Mo., from 2005 until her business shut down after her guilty plea. Originally Carlisle’s business was called “Carlisle’s Garden of Peace” but she changed the name in 2009 to “Mracles Residential Care.” Mracles cared for mentally and physically handicapped residents in a group home setting, leasing multiple houses in residential neighborhoods, under contracts with the Missouri Department of Social Services. Mracles had between 12 and 20 employees at its multiple residences.
Carlisle admitted that she engaged in a scheme to defraud the IRS and the state of Missouri for the purpose of evading payment of at least $397,213 in federal and state taxes, penalties and interest, beginning in 2006.
Due to Carlisle’s failure to file returns or pay taxes, according to court documents, the IRS opened a civil investigation of her business, but she continued to miss deadlines and pay over taxes she withheld from her employees. Carlisle made her last voluntary tax payment in September 2009, of $1,000. The IRS issued a levy on her bank account in October 2009, seizing $29,885. Two months later, Carlisle informed the revenue agent that her business was shut down. The agent later learned that Carlisle had registered a new business, Mracles, in her daughter’s name – but except for the new name, the business remained the same. It had the same employees, same group homes, same clients, and Carlisle continued to sign the payroll checks. As with Carlisle’s Garden of Peace, Mracles continued to withhold employee taxes and not pay them over.
Carlisle failed to pay over employment taxes totaling $131,649 for her residential health care facilities from 2008 to 2010. Carlisle withheld state and federal taxes from her employees’ paychecks, and then used that money for her own personal benefit. She also failed to pay over the business portion of the employment taxes. She also failed to pay taxes on her own income – she earned $64,500 in 2009 and $65,000 in 2010 and paid no state or federal income taxes. Additionally, she claimed personal unpaid federal taxes of $28,561 for 2011 - 2012.
According to court documents, Carlisle was repeatedly notified of the amounts of her substantial taxes, penalties and interest due. Carlisle was notified in June 2011 that she was the subject of a criminal investigation. Up until her business shut down after her guilty plea in March 2016, Carlisle continued to withhold employee taxes and spend them for personal use. And she has made no payments on any taxes, personal or employment, during the investigation or after pleading guilty.
Carlisle admitted that she gambled heavily, including at 7th Street Casino in Kansas City, Kan., with funds debited directly from her business accounts. Carlisle used her business accounts as her personal charge accounts. She did not report, on her tax returns, many of these personal expenses as income, including charges for thousands of dollars made on business debit cards from 2006 through 2010 at Kansas City area casinos. Carlisle spent a total of $127,165 at 7th Street Casino from 2008 to 2010. Casino records show that Carlisle had winnings of $320,200 in 2010, $145,200 in 2009 and $29,219 in 2008.
Carlisle also wrote checks to herself from her business bank account in 2010 with references in the memo line to payroll, bonus, draws or advances totaling $65,000.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation and the Missouri Department of Revenue.
Former City Clerk Sentenced to Prison for Stealing More Than $470,000Read the Press Release
A woman who used her position as the city clerk for the City of Garwin to steal more than $470,000 in public funds was sentenced yesterday to 28 months in federal prison.
Anna Leytham from Garwin, Iowa, received the prison term after a guilty plea to theft of public funds.
In a plea agreement, Leytham admitted that she held a position of public trust as the city clerk and that her position of trust contributed significantly to the commission and concealment of her crime. At sentencing, she agreed that she stole more than $470,000 from the city, including $397,601.12 she stole to make payments on her personal credit cards. Leytham also agreed she owes more than $485,000 in restitution, which includes costs the city incurred to conduct the audit that discovered the breadth of her crime.
Leytham was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Leytham was sentenced to 28 months’ imprisonment. A special assessment of $100 was imposed, and she was ordered to make a total of $485,629.01 in restitution to the city and the city’s insurance company. She must also serve term of supervised release after the prison term. There is no parole in the federal system.
“The citizens of Garwin deserve better from their public officials as do all Iowans,” stated United States Attorney Kevin W. Techau. “Betraying the public’s trust and wasting tax dollars is a crime we take very seriously. Those who choose to ignore federal law will be held accountable, just as this sentence holds Ms. Leytham accountable.”
Leytham was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Jacob A. Schunk and investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-7.
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Former Chief Financial Officer Sentenced in Manhattan Federal Court for Misappropriating More Than $10 Million from Two Healthcare Services CompaniesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that STEVEN RAWLINS, a former Chief Financial Officer to two healthcare services companies based outside Nashville, Tennessee, was sentenced to nine years in prison and $10,110,577.09 in forfeiture for engaging in a scheme to defraud that yielded over $10 million in ill-gotten gains. On November 16, 2016, following an 11-day trial conducted before U.S. District Judge Alison J. Nathan, a jury found that RAWLINS, as the acting Chief Financial Officer for both privately-held healthcare companies, abused his authority to withdraw company funds for payment of legitimate business expenses and tax obligations by, among other things, using such funds to pay personal expenses incurred by RAWLINS, his family, and his associates.
Manhattan U.S. Attorney Preet Bharara said: “Steven Rawlins abused his trusted position as CFO with two healthcare companies to steal more than a combined $10 million from them. As was established at trial, Rawlins spent the money he stole lavishly on himself, his family, and his friends, paying for a 12,000-square-foot home, Tiffany jewelry, several sports cars, and luxury suites at sporting events.”
According to the Criminal Information filed on June 16, 2015, other court documents, and the evidence presented at trial:
In or around 2005, RAWLINS was retained as an outside consultant by a private healthcare services company, which is headquartered in Tennessee (“Company-1”), to assist with financing and accounting matters. RAWLINS’s responsibilities included securing financing for Company-1 and facilitating tax payments. During that time period, RAWLINS was retained by another private healthcare services company, which at the time had operations in Florida and New York (“Company-2”), to perform a similar role. As part of his responsibilities, RAWLINS was authorized to bill both Company-1 and Company-2 for legitimate business expenses incurred in connection with his services. By 2009, RAWLINS had been appointed as acting Chief Financial Officer for both companies.
RAWLINS abused his authority to withdraw company funds and ultimately misappropriated more than $10 million, which he used to pay personal expenses incurred by himself, his family, and his associates. For instance, as part of his responsibilities as a consultant to Company-1, RAWLINS represented that he would make the necessary tax payments owed by Company-1 to the State of Tennessee. From 2011 to 2012, RAWLINS withdrew approximately $850,000 from Company-1’s bank accounts, purportedly in order to pay Company-1’s outstanding tax liabilities to Tennessee. In reality, during that time period, Company-1 owed less than $85,000 in applicable Tennessee state taxes; RAWLINS converted the vast majority of the funds to his own use. Moreover, from 2011 to 2013, RAWLINS caused approximately $4 million to be withdrawn from a Company-1 bank account in order to pay bills associated with RAWLINS’s American Express credit card accounts. Those American Express accounts were in turn used to pay for numerous personal expenses incurred by RAWLINS, or those associated with him, including payments to a real estate development company that built RAWLINS a 12,000-square-foot home; payments for luxury suite access for the Tennessee Titans, Nashville Predators, and New York Yankees; payments for Tiffany jewelry; and payments to car dealerships including Ferrari, Porsche, Maserati, and Mercedes.
Evidence at trial established that, as part of the criminal scheme, Rawlins also defrauded or attempted to defraud additional victims, including the founders of a start-up construction firm from whom he obtained $67,000; a restaurant company owner from whom he obtained a $1.3 million loan; and the owner of a factoring company from whom he attempted to obtain a $1.3 million advance. The evidence established that Rawlins used forged and fabricated documents in order to deceive several of his victims.
* * *
RAWLINS, 59, of Brentwood, Tennessee, was sentenced to nine years in prison, $10,110,577.09 in forfeiture, and a $100 special assessment.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation.
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. Attorney Andrew J. DeFilippis is in charge of the prosecution.
Federal Officials Close Review into the Death of Antonio Zambrano-MontesRead the Press Release
SPOKANE - The United States Attorney’s Office for the Eastern District of Washington announced today that there is insufficient evidence to pursue federal criminal civil rights charges against Pasco Police Officers Adrian Alaniz, Ryan Flanagan, and Adam Wright for the death of Antonio Zambrano-Montes on February 10, 2015.
A team of experienced federal investigators and prosecutors conducted an independent review of the evidence related to the death of Zambrano-Montes. These investigators and prosecutors reviewed witness statements, reports, records, transcripts, medical records, diagrams, photographs, and videos. In addition, they solicited input and followed leads provided by attorneys working for the family of Mr. Zambrano-Montes.
This decision has been communicated to the family of Mr. Zambrano-Montes.
This team considered whether Officers Alaniz, Flanagan, and Wright violated federal law by willfully using unreasonable force against Mr. Zambrano-Montes. Under the law, the use of deadly force is justified when the officer has probable cause to believe that the suspect poses a threat of serious physical harm, either to the officer or to others. Moreover, under the applicable federal criminal civil rights statute, prosecutors must establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived an individual of a constitutional right. To establish willfulness, federal authorities must show that the officer acted with the deliberate and specific intent to do something the law forbids. This is the highest standard of intent imposed by law. Mistake, misperception, negligence, or poor judgment are not sufficient to establish a federal criminal civil rights violation.
Based on a careful and thorough review, the team of experienced federal prosecutors and FBI agents determined that the evidence was insufficient to prove, beyond a reasonable doubt, that Officers Alaniz, Flanagan, and Wright acted with the requisite criminal intent, that is, willfully with a bad purpose to violate the law. There is no reliable testimonial or physical evidence that refutes the accounts provided by the officers that they believed the force they used was necessary to protect themselves and to stop a perceived threat. Accordingly, the federal review of this incident has been closed without prosecution. This decision is limited strictly to an application of the high legal standard required to prosecute the case under the federal civil rights statute; it does not reflect an assessment of any other aspect of the incident that led to Mr. Zambrano-Montes’ death.
In announcing this determination, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, offered his condolences: “Our thoughts remain with Mr. Zambrano-Montes’ family and friends. I cannot fathom how painful their loss has been.” Though USA Ormsby’s office has previously prosecuted cases involving the unlawful use of force by law enforcement officials, he noted that, “These cases are difficult because someone has lost their life. It is very important to consider multiple factors and apply the applicable law in determining whether or not to file criminal charges.” USA Ormsby went on to say, “In this matter, the Tri-Cities/Washington State Patrol Special Investigation Unit conducted a very exhaustive investigation which was reviewed and supplemented by very experienced FBI agents. That work was further reviewed and discussed by me, Assistant United States Attorneys in my office, and experienced litigators in the Civil Rights Division in the Department of Justice. These cases deserve and receive careful review and examination in light of the detailed requirements of the federal law under which they can be prosecuted. After this investigation, examination, and discussion, it was my determination that the filing of criminal charges in this case could not be supported.”
The U.S. Attorney’s Office for the Eastern District of Washington, the Civil Rights Division, and the FBI are committed to investigating allegations of civil rights violations by law enforcement officers and will continue to devote the resources required to ensure that all allegations of serious civil rights violations are fully and completely investigated. The Department will aggressively prosecute criminal civil rights violations whenever there is sufficient evidence to do so.
El Departamento de Justicia Cierra Caso Después de que Reformas del Poder Judicial de Colorado Eliminaran Barreras LingüísticasRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy el cierre de su caso relacionado con la provisión de asistencia lingüística a personas con conocimientos limitados del inglés [Limited English Proficiency (LEP)] en el sistema judicial del estado, después de la exitosa implementación de reformas por parte del Poder Judicial de Colorado.
El Departamento de Justicia y el Poder Judicial de Colorado resolvieron con éxito una investigación de una demanda administrativa entablada bajo el Título VI de la Ley de Derechos Civiles de 1964, que prohíbe la discriminación basada en raza, color u origen nacional en programas o actividades con financiamiento federal.
“El Departamento de Justicia seguirá trabajando sin descanso para garantizar la igualdad en el acceso a la justicia para todas las personas, independientemente de su capacidad lingüística,” declaró la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, Directora de la División de Derechos Civiles del Departamento de Justicia. “Felicitamos al Administrador de Tribunales Estatales Gerald Marroney y su equipo por su dedicación y colaboración para transformar el suministro de servicios de acceso idiomático para el beneficio de todos”.
La demanda alegaba que los tribunales de Colorado exigían que partes civiles LEP llevaran sus propios intérpretes al tribunal. En 2011, el ex-Juez Principal Michael L. Bender y el Administrador de Tribunales Estatales Gerald Marroney firmaron un memorando de acuerdo (en inglés) con el departamento. En dicho momento, el Juez Principal Bender enmendó la Directiva 06-03 del Juez Principal de modo que, con vigencia inmediata, se ordenara la provisión de intérpretes calificados y otros tipos de asistencia lingüística aprobados, sin cargo para personas LEP en todos los procesos, servicios y programas judiciales. Después de negociaciones adicionales, la Oficina de Acceso Idiomático del tribunal emitió un plan estratégico (en inglés) integral en 2012 que definió 35 mejoras necesarias en las políticas, normas, infraestructura y capacitación de los tribunales, como apoyo a la capacidad del sistema judicial de proveer asistencia lingüística oportuna y adecuada en todo el estado.
Anteriormente este año, el Poder Judicial de Colorado completó el trabajo requerido por el plan. También cumplió con éxito las exigencias de monitoreo establecidas en el memorando de acuerdo, incluida la enmienda adicional de la Directiva del Juez Principal (en inglés). Hoy, después de que el sistema judicial completó las condiciones para finalizar el acuerdo, el departamento cerró el caso oficialmente.
El departamento y el Poder Judicial de Colorado han trabajado en conjunto para mejorar las comunicaciones entre usuarios LEP de los tribunales y el personal de los tribunales. Además de adoptar la política integral de acceso idiomático incluida en la Directiva del Juez Principal, los logros del Poder Judicial incluyen:
• Revisión de las normas para someter a prueba, clasificar y sancionar a los intérpretes judiciales, y normas establecidas para promover la contratación de personal de servicio al cliente bilingüe y determinar sus conocimientos de otros idiomas;
• Creación de un centro telefónico estatal centralizado de intérpretes compuesto por intérpretes judiciales certificados, para brindar asistencia de interpretación remota en circunstancias limitadas para asistir a personal de todo el estado en la provisión de asistencia a clientes LEP;
• Creó un comité asesor que incluye a jueces, administradores, intérpretes y abogados que proveen recomendaciones sobre políticas, procedimientos y asuntos relacionados con la implementación;
• Optimización del software utilizado para asignar intérpretes a procesos;
• Tradujo al español cientos de formularios y carteles de tribunales locales y estatales, y este año comenzó las traducciones a otros seis idiomas de uso habitual;
• Diseñó y realizó sesiones de capacitación y diseñó materiales de referencia para jueces, personal e intérpretes y adquirió acceso a módulos de capacitación de personal en Internet;
• Diseñó y distribuyó carteles en diferentes formatos e idiomas, que avisan a visitantes al tribunal de la disponibilidad de servicios lingüísticos sin cargo;
• Comenzó a incluir en alegatos y órdenes de gestión de casos un aviso de la disponibilidad de la asistencia de intérpretes;
• Y, mejoró el sistema de sanción de intérpretes contratados debido a la violación de normas profesionales, y creó un sistema de quejas relacionadas con el acceso idiomático.
Estuvo a cargo del caso el Abogado Principal Paul M. Uyehara de la Sección de Coordinación y Cumplimiento Federal [Federal Coordination and Compliance (FCS)] de la División de Derechos Civiles.
La demanda fue resuelta como parte de la iniciativa de la FCS para asegurar que los tribunales estatales cumplan con las exigencias de acceso idiomático del Título VI. Para asegurar que no se le niegue justicia a ninguna persona LEP por la falta de servicios lingüísticos del tribunal, el equipo judicial de la FCS (en inglés) ofrece orientación sobre políticas y asistencia técnica a sistemas judiciales estatales y realiza acciones de coacción en todo el país.
Para obtener información adicional sobre la FCS y el Título VI, por favor visite https://www.justice.gov/crt/fcs. Para acceder a recursos adicionales relacionados con LEP, visite http://www.lep.gov/index.htm.
East Liverpool man indicted for possessing images of child sexual abuseRead the Press Release
Donald Guthrie, Jr., 56, of East Liverpool, was charged with receiving visual depictions of real minors engaged in sexually explicit conduct and possession of child pornography, said Carole S. Rendon, United States Attorney for the Northern District of Ohio.
Guthrie received numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. This took place between June and August 2014, On November 6, 2015, Guthrie was in possession of a Gateway LX series computer that contained child pornography, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Department of Homeland Security, Cleveland Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Dupree Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that a Dupree, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on June 20, 2016, by U.S. District Judge Roberto A. Lange.
Orville Belt, Jr., age 41, was sentenced to 41 months in custody, 2 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Belt was indicted for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury by a federal grand jury on February 17, 2016. He pled guilty to Assault Resulting in Serious Bodily Injury on March 29, 2016.
The conviction stems from an incident that took place on January 1, 2016, at Dupree, when Belt and the victim were drinking together. Belt and the victim were in a relationship. Belt got angry with the victim and pulled the victim’s chair from under her so that she fell to the floor. He then began hitting the victim with his fists multiple times, knocking her unconscious. When she came to, Belt was kicking her multiple times with black combat boots. The victim did not receive medical treatment until two days after the assault, when a neighbor saw her and reported to law enforcement that the victim had been “severely assaulted.” The law enforcement officer who responded to the Belt residence knew the victim, but did not recognize her that day due to the severity of her injuries.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Belt was immediately turned over to the custody of the U.S. Marshals Service.
Drunk Driver Sentenced to 4 Years in Federal Prison for Involuntary Manslaughter in Fatal Baltimore-Washington Parkway Car CrashRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Charles Jerome Wiggins, age 26, of Cottage City, Maryland, today to four years in prison followed by three years of supervised release for involuntary manslaughter and reckless driving.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief of Police Robert D. MacLean of the U.S. Park Police.
According to trial evidence, on December 12, 2013 at 2 a.m., Wiggins was driving a car on the Baltimore-Washington Parkway. His wife, Kiana Wiggins, who had turned 34 that day, was in the front passenger seat, and his sister-in-law, Angel Barbour, age 21, was sitting in the back behind her. His sister-in-law’s boyfriend was also sitting in the back seat. Wiggins rear-ended a pickup truck that was driving in the same direction. The truck went into the woods, and Wiggins’s car flipped over and skidded on its roof more than 200 feet. The two women were killed. Wiggins was found to have a blood alcohol level of .19%.
United States Attorney Rod J. Rosenstein commended the U.S. Park Police for its work in the investigation and thanked Assistant U.S. Attorney Hollis Raphael Weisman and Special Assistant United States Attorney Conor Mulroe, of the U.S. Justice Department, who prosecuted the case.
Drug Dealer Who Fired Shots at Police Officers Pleads GuiltyRead the Press Release
NEWPORT NEWS, Va. – Stefon I. Malone, 25, of Newport News, pleaded guilty today to various drug and gun charges related to his involvement in drug trafficking conspiracy operating in Newport News.
According to the statement of facts filed with the plea agreement, Malone’s role within the conspiracy was to distribute cocaine base and provide security for the drug trafficking operation. From Jan. 1, 2013 through Feb. 28, 2013, Malone distributed cocaine base from a rooming house on Chestnut Avenue.
On Feb. 28, 2013, Malone fired his Glock 9mm pistol at Newport News Police Department officers, who were serving a search warrant at the rooming house, striking one police officer in his ballistic vest and a striking a second police officer’s ballistic shield.Malone was indicted by a federal grand jury on Sep. 10, 2015, and faces a maximum consecutive penalty of 5 to 40 years for the drug conspiracy and 10 years to life in prison for the firearm offense. Malone is to be sentenced on October 19, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Robert E. Bradenham II is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15-cr-65.
Dominican Man Sentenced After Pleading Guilty to Misrepresenting A Social Security Number and Falsely Claiming to Be A U.S. CitizenRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced today that Alberto Martinez, of the Dominican Republic pleaded guilty to a two-count indictment charging him with misrepresenting a social security number and falsely claiming to be a U.S. citizen. He was sentenced to time served.
On November 5, 2015, the defendant attempted to renew a New Hampshire driver’s license that he had acquired under a false identity in which he used a social security number that was not assigned to him. When a New Hampshire State Trooper began questioning him, Martinez claimed to be a United States Citizen born in Puerto Rico. Martinez had completed a license renewal form on which he affirmatively stated that he was a United States Citizen.
Immigration and Customs Enforcement officers arrived to assist the New Hampshire State Police. After the defendant was informed that ICE intended to take his fingerprints for comparison to known fingerprints maintained by ICE, the defendant admitted that his true name was Alberto Martinez, that he is a citizen of the Dominican Republic born in the Dominican Republic in August 1965, and he stated he illegally entered the United States in 2009 by walking across the United States border with Mexico.
ICE officers proceeded to fingerprint the defendant. IAFIS indicated that the fingerprint impressions submitted were an exact match to a defendant with a criminal history in Massachusetts under the false name the defendant had been using.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and the New Hampshire State Police. Assistant U.S. Attorney Alfred Rubega prosecuted this case.
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District Man Sentenced to 90-Month Prison Term for Assaulting Security Officer After Shoplifting IncidentRead the Press Release
WASHINGTON – Deandre Britton, 27, of Washington, D.C., has been sentenced to a 90-month prison term after earlier pleading guilty to stabbing a security officer after a shoplifting incident in downtown Washington, U.S. Attorney Channing D. Phillips announced.
Britton pled guilty in February 2016, in the Superior Court of the District of Columbia, to a charge of assault with a dangerous weapon. He was sentenced on June 15, 2016, by the Honorable Anita Josey-Herring. Upon completion of his prison term, Britton will be placed on three years of supervised release.
According to the government’s evidence, on Aug. 11, 2015, at approximately 3:10 p.m., Britton entered the Macy’s Department store at Metro Center, in the 1200 block of G Street NW. He placed assorted items of clothing into a bag and walked out without paying. Two security officers tried to stop Britton and retrieve the stolen items. Without provocation, he stabbed one of them in the upper arm and left wrist several times. The stabbing caused nerve damage to the security officer’s arm. Britton fled, and police broadcast a look-out for him. He was arrested later that day after Metro Transit Police stopped him at Union Station.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metro Transit Police Department and the Metropolitan Police Department. He also expressed appreciation for the work of Assistant U.S. Attorney Nurudeen Elias, who investigated and prosecuted the case.
District Man Pleads Guilty to Bank Robbery Charge for June 2015 Hold-Up in Northwest WashingtonRead the Press Release
WASHINGTON - Michael Johnson, 50, of Washington, D.C., has pled guilty to a bank robbery charge involving a hold-up last year in Northwest Washington, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Johnson pled guilty to the charge on June 21, 2016, in the U.S. District Court for the District of Columbia. In entering his guilty plea, Johnson also admitted responsibility for an additional bank robbery and an attempted bank robbery. He is to be sentenced on Sept. 20, 2016 by the Honorable Richard J. Leon. He faces a statutory maximum of 25 years in prison and potential financial penalties. Under federal sentencing guidelines, he faces a likely range of 70 to 87 months in prison and a potential fine of $20,000 to $200,000.
Johnson remains held without bond pending sentencing.
According to the government=s evidence, on Saturday, June 6, 2015, at approximately 12:40 p.m., Johnson walked into a Wells Fargo Bank in the 3300 block of 14th Street NW. He approached a bank employee and inquired about opening a joint bank account. When the employee asked about the second party for the joint account, Johnson stated that he was not there to open an account, but there “for the money.” Shortly thereafter, Johnson grabbed the bank employee and forced her to the teller stations with what appeared to be a handgun pointed at her body. He threatened to shoot the employee if the tellers did not give him money. A bank teller gave him $910 from one of the teller drawers. Johnson took the cash and fled the bank.
Within a few minutes of the bank robbery, officers with the Metropolitan Police Department saw Johnson in the 1300 block of Kenyon Street NW, a short distance from the Wells Fargo bank. When they attempted to approach him, he fled. After a brief chase, the officers subdued Johnson and later recovered the stolen money in his pants. After Johnson was placed under arrest, he was interviewed by law enforcement. He admitted to robbing the Wells Fargo bank. He also told law enforcement where he discarded the weapon he had used when he fled from the bank. The weapon, a knife shaped like a gun, was recovered shortly thereafter.
The other crimes took place in the weeks leading up to the Wells Fargo Bank robbery.
On May 15, 2015, at approximately 11:35 a.m., Johnson walked into a Wells Fargo Bank in the 1900 block of Seventh Street NW. He told a bank employee that he was there to open an account. After the employee asked for his identification, Johnson handed her a note demanding money and threatening to hurt the employee. The employee told Johnson that she did not have any money at her desk, but that she would get some cash from the teller. As she stood, she pressed the alarm button under her desk. Johnson told her that he saw her push the button and then left the bank. He was later identified by a witness from surveillance video from the bank.
On May 21, 2015, at about 1:15 p.m., Johnson walked into a Citibank in the 3200 block of 14th Street NW. He approached a teller and handed over a note demanding money. Johnson then said, “Give me the cash right now,” while making a threatening gesture towards a customer in a nearby teller line. The teller gave Johnson $1,745 and he fled from the bank. The note was later processed for fingerprints, and a latent print matching Johnson was recovered.
In announcing the plea, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Chief Lanier commended the actions of those who worked on the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Catherine O’Neal and Legal Assistant Peter Gaboton. Finally, they commended the work of Assistant U.S. Attorney Jamila Hodge, who is prosecuting the case.
Department of Justice to Host Public Forums to Hear from Community as Part of Investigation of Chicago Police DepartmentRead the Press Release
CHICAGO — The Civil Rights Division of the United States Department of Justice, along with the United States Attorney’s Office for the Northern District of Illinois, are conducting a civil pattern or practice investigation into the Chicago Police Department. As part of the investigation, officials will be hosting public forums to provide information about the investigative process, and to offer time for community members to share their experiences with policing in Chicago.
The dates and locations of the forums are as follows:
June 22, 6:30 p.m. to 8:30 p.m.
Kennedy King City College (U Building)
740 W. 63rd St., Chicago IL 60621
July 12, 6:30 p.m. to 8:30 p.m.
Truman City College
1145 W. Wilson Ave., Chicago IL 60640
July 14, 6:30 p.m. to 8:30 p.m.
KROC Center Chapel
1250 W. 119th St., Chicago IL 60643
The forums are free of charge and open to the public and the media.
The purpose of the pattern or practice investigation is to determine whether there are systemic violations of the Constitution or federal law by the Chicago Police Department. The investigation is focused on use of force, including racial, ethnic and other disparities in its use of force, as well as police accountability systems, including how internal investigations are conducted, how the police department responds to citizen complaints, and how it handles officer discipline.
Community members who are unable to attend the forums but wish to share information relevant to the investigation are encouraged to contact the Department of Justice by phone: (844) 401-3735 or email: [email protected].
Defendant Convicted at Trial for Drug and Firearm Related Murder in AlbanyRead the Press Release
Late yesterday afternoon, following a one week trial, a federal jury in Brooklyn, New York, returned a guilty verdict against James Cureton for drug and firearm related murder and drug trafficking. The charges arose out of the defendant’s participation in a murder that took place in Albany, New York. When sentenced by United States District Carol B. Amon, the defendant faces a maximum sentence of up to life imprisonment and a mandatory minimum sentence of 20 years on the drug-related count of conviction.
The verdict was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and William J. Bratton, Commissioner, New York City Police Department.
“This verdict sends the clear message that drug traffickers who use violence as a tool of their trade will be investigated, apprehended, and held fully accountable for their crimes,” stated United States Attorney Capers. Mr. Capers thanked the Albany Police Department for its assistance in this case.
“The business of drug trafficking and criminal behavior doesn't often end with a healthy retirement in some sunny locale near a beach. In this case, the defendant who chose a life of crime will most likely spend the rest of it in federal prison for murder. The FBI Metro Safe Streets Task Force and our law enforcement partners will not stop going after criminals who make our communities dangerous for those people who choose to abide by the law,” stated FBI Assistant Director-in-Charge Rodriguez.
“For drug traffickers who use violence and murder to further their trade: we will employ every tool to bring justice for your victims. I thank the jury for their time in rendering this verdict,” stated New York Police Commissioner Bratton.
On October 31, 2009, Cureton and a coconspirator killed Raymond Books because he had ceased making payments on a $37,000 drug debt. Cureton drove with his coconspirator to Albany on the day of the murder and brought a spray bottle of cleaning solution to remove any traces of their presence at the crime scene. Before arriving, Cureton also enlisted another individual to get Brooks’s girlfriend out of their Albany apartment, ensuring there would be no witnesses there. Once inside the premises, the coconspirator shot and killed Brooks. Cureton then drove them back to Staten Island.
Later that night, Cureton reached out and began to intimidate potential witnesses who might be able to connect him to the murder. Cureton also continued trafficking narcotics with the coconspirator and their associates for several years after the murder.
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs, and International Narcotics and Money Laundering Sections. Assistant United States Attorneys Alicyn Cooley and Jennifer Carapiet are in charge of the prosecution.
The Defendant:
JAMES CURETON
Age: 43
Staten Island, New YorkE.D.N.Y. Docket No. 16-CR-23 (CBA)
Cleveland Heights man named in 22-count indictment, charged with identity theft and tax violationsRead the Press Release
A 22-count indictment was returned charging a Cleveland Heights man with identity theft and tax violations, said Acting U.S. Attorney Carole S. Rendon and Kathy A Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Darryl E. Farmer, 44, was indicted on one count of conspiracy to defraud, nine counts of false tax claims, eight counts of aiding in the preparation of false tax returns, two counts of wire fraud and two counts of aggravated identity theft.
Farmer held himself out as a neighborhood tax preparer who paid recruiters a “referral fee” to provide him identifications and personal identifiers of others. Farmer used this information to file false tax returns, including claiming tax credits for businesses that did not exist, according to the indictment.
Farmer also opened multiple personal and business bank accounts, which he controlled, in the names of these various people in order to deposit the refunds from the tax returns he filed, according to the information.
Farmer falsely claimed more than $100,000 from the IRS between 2010 and 2012, according to the indictment.
“This defendant stole identities and stole from taxpayers,” Rendon said.
“IRS Criminal Investigation stands ready to investigate anyone who would put a taxpayer at risk for a quick profit,” Enstrom said. "Our special agents use their investigative and financial expertise to detect and hold accountable abusive tax return preparers who falsely tell taxpayers they are eligible for tax credits that they are not entitled to receive."
If convicted, the court will determine the defendants’ sentence after a review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Mark Bennett following an investigation by the IRS.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cherry Creek Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that a Cherry Creek, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on June 20, 2016, by U.S. District Judge Roberto A. Lange.
Randy Little Shield, age 25, was sentenced to 41 months in custody, 3 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Little Shield was indicted by a federal grand jury on January 21, 2016. He pled guilty on April 4, 2016.
The conviction stems from an incident that took place on October 8, 2015, at Cherry Creek, when a verbal exchange between the victim and Little Shield’s girlfriend quickly turned physical. At some point, Little Shield’s girlfriend had the upper hand and was the only one landing any blows. The fight moved around the car from the passenger side to the driver's side. Little Shield ran to his uncle's house and returned with a baseball bat. He took a full swing with the bat and hit the victim in the midsection/ribs with the bat. He then stepped back, took another swing, and hit her in the leg/knee with the bat. A bystander grabbed a board and used it to fend off Little Shield. At that point, the two groups separated and the police were called.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Little Shield was immediately turned over to the custody of the U.S. Marshals Service.
Career Offender from Las Cruces Sentenced to 35 Years for Conviction on Conspiracy, Explosives and Firearms ChargesRead the Press Release
ALBUQUERQUE – Clifford Raymond Salas, 38, of Las Cruces, N.M., was sentenced today in federal court to 35 years in prison on his conviction on conspiracy, explosives and firearms charges followed by three years of supervised release. Salas also was ordered to pay $111,018.05 in restitution to the victims of his crimes. The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the Albuquerque Division of the FBI, and Las Cruces Police Chief Jaime Montoya.
U.S. Attorney Martinez said that Salas, whose prior criminal history includes convictions for drug trafficking, attempted assault on an inmate, robbery and being a felon in possession of a firearm, was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Doña Ana County, N.M., under this initiative.
Salas and co-defendants Conrad Vazquez Salazar (Salazar), 44, and Andres Linares-Baca, 33, both of Las Cruces, and Thomas Vazquez Salazar (Vazquez Salazar), 40, of Odessa, Tex., were charged in a series of complaints and indictments, the first of which was filed in Sept. 2012, with violating the federal conspiracy, explosives and narcotics laws. Salas, Salazar and Vazquez Salazar were charged with conspiracy and explosives charges that arose out of the firebombing of a tattoo parlor in Las Cruces on Aug. 31, 2012.
Vazquez Salazar entered a guilty plea to the conspiracy and explosives charges in Sept. 2013, and was sentenced in March 2016. Linares-Baca pled guilty in Sept. 2013, to heroin trafficking charges and was sentenced in Jan. 2014. Proceedings against Salazar were delayed by competency proceedings, and in Oct. 2014, the court found him incompetent to stand trial and committed him to hospitalization to determine whether he can be restored to competency. Salazar pled guilty on Aug. 17, 2015, to conspiracy and being a felon in possession of a firearm and ammunition and was sentenced in Nov. 2015.
Salas elected to exercise his right to a jury trial, which resulted in a guilty verdict on March 11, 2015, on a superseding indictment charging him with participating in a conspiracy between July 15, 20112 and Aug. 31, 2012, to commit arson by maliciously damaging and destroying the Irish Ink Tattoo, located at 2245 South Main Street in Las Cruces. The indictment also charged Salas with maliciously damaging and destroying the Irish Ink Tattoo on Aug. 31, 2012, by throwing at least one Molotov cocktail into the building, using a destructive device in furtherance of an act of violence; and being a felon in possession of an explosive.
The evidence at trial established that in May 2012, Salazar opened up a tattoo shop in Las Cruces. Shortly thereafter Salazar experienced legal troubles and his business struggled. As a result, two of Salazar’s tattoo artists left with the intention of opening their own tattoo shop, the Irish Ink Tattoo. When Salazar learned of these plans, he threatened to burn down Irish Ink Tattoo. As promised, after the two tattoo artists opened the Irish Ink Tattoo, Salazar arranged for Salas and Vazquez Salazar to throw Molotov cocktails at the Irish Ink Tattoo and burn it down. After midnight and after obtaining the Molotov cocktails from Salazar, Vazquez Salazar drove Salas to the Irish Ink Tattoo. Salas broke a window of the Irish Ink Tattoo with a metal bar and set the building on fire by throwing Molotov cocktails into the building.
This case was investigated by the Las Cruces office of the FBI and the Las Cruces Police Department. Assistant U.S. Attorneys Aaron O. Jordan and Marisa A. Lizarraga prosecuted the case.
Buffalo Man Pleads Guilty to Possession of Child PornographyRead 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 Johannes Hiram, 50, of Buffalo, NY, pleaded guilty to possession of child pornography before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that on March 14, 2014, law enforcement officers searched the defendant’s residence on Linview Terrace in Buffalo. Officers recovered a Compaq Presario desktop computer and a Hewlett Packard mini laptop. A subsequent forensic examination determined that the devices contained approximately 750 image files and 20 videos containing child pornography. Over 400 of the image files depicted the sexual abuse of children. Some of the images also depicted victims under the age of 12.
After his arrest in March 2014, Hiram pleaded guilty in Erie County Court on May 28, 2014, to sexual contact with an individual less than 11 years old. As a result, Hiram is already a registered sex offender.
Hiram’s sentencing in federal court is scheduled for October 2, 2016 at 10:00 a.m. before Judge Vilardo.
The plea is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda and the Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes the Buffalo Police Department, Cheektowaga Police Department, and Niagara County Sherriff’s Office.
Branford Man Sentenced to Prison for Selling Heroin and CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ORETAGUS EADDY, 39, of Branford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 24 months of imprisonment, followed by three years of supervised release, for selling heroin and crack cocaine.
This matter stems from an investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force.
According to court documents and statements made in court, between January 2013 and July 2013, the Task Force made two controlled purchases of heroin and four controlled purchases of crack cocaine from EADDY.
EADDY was arrested on March 3, 2014. On March 7, 2016, he pleaded guilty to one count of possession with intent to distribute and distribution of heroin.
EADDY’s criminal history dates to 1993 and includes a prior federal conviction for distributing heroin, cocaine and crack.
The DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk, Milford and Trumbull Police Departments, and the Connecticut State Police.
This case was prosecuted Assistant U.S. Attorney Michael E. Runowicz.
Arkansas Man Sentenced for Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Crawford, Ark., man was sentenced in federal court today for leading a bank fraud conspiracy that used stolen mail and fake identifications to cash nearly $160,000 in fraudulent checks in Webster County, Mo., and elsewhere.
Phillip Daren Shockey, 50, of Crawford, was sentenced by U.S. District Judge M. Douglas Harpool to 11 years and two months in federal prison without parole. The court also ordered Shockey to pay a money judgment of $159,842, which includes $114,127 to 14 banks and credit unions in Missouri.
Shockey, who pleaded guilty on Jan. 14, 2015, admitted that he was the leader of a conspiracy to defraud more than a dozen banks from July 31, 2013, to Feb. 28, 2014, by passing counterfeited and forged checks with fake identification documents. At least 12 co-conspirators stole mail, printed counterfeit checks, passed counterfeit checks with fake identification and opened at least five fictitious businesses for the sole purpose of concealing the deposit and subsequent withdrawal of counterfeit checks.
Shockey recruited co-conspirators to steal mail and act as “check runners” who used false identity documents in order to cash fraudulent checks drawn upon the accounts of bank customers. Shockey possessed computers, printers, scanners, cell phones, thumb drives, stolen mail and software in order to produce fraudulent identification and checks for his co-conspirators. Shockey also used false identifications of the banks’ customers and others in order to pass and attempt to pass fraudulent checks.
Shockey and those working at his direction passed and attempted to pass approximately 51 checks for a loss of at least $159,842.
Co-defendant James Erin Guerin, also known as “Shorty,” 42, of Tulsa, Okla., formerly of Sparta, Mo., pleaded guilty to being an accessory after the fact to aggravated identity theft and awaits sentencing.
Guerin was the owner of Rogersville Septic Services, LLC. Guerin paid Shockey’s $5,000 bond when he was released from custody in Arkansas on July 31, 2013, and Shockey was mandated to live with Guerin in Sparta. Shockey, who had been in federal custody in Arkansas for wire fraud, began to create fictitious financial documents using bank accounts and routing numbers of legitimate customers of Guerin’s plumbing business.
In August and September 2013, Guerin became aware that Shockey had taken the bank account and routing numbers from his plumbing business customers and was using them to produce fictitious financial documents such as bogus checks drawn upon the customers’ bank accounts. After learning of Shockey’s use of his customers’ bank accounts, Guerin continued to provide comfort and assistance to Shockey. Shockey was given sanctuary at Guerin’s residence to continue his illegal operation.
Four co-defendants have pleaded guilty and been sentenced. Michael Anthony Spears, 37, of Fort Smith, Ark., was sentenced to seven years in federal prison without parole. Donald Allen Spears, 35, of Columbia, Mo., was sentenced to two years and three months in federal prison without parole. Amanda Brook Roberts, 31, of Tulsa, was sentenced to three years and one month in federal prison without parole. Laura Goines, 33, of Tulsa, was sentenced to time served.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the U.S. Secret Service Financial Crimes Task Force, the U.S. Postal Service – Criminal Investigations, the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Tulsa, Okla., Police Department, the Jasper County, Mo., Sheriff’s Office, the Webster County, Mo., Sheriff’s Office, the Greene County, Mo., Sheriff’s Office, the Columbia, Mo., Police Department, the Blue Springs, Mo., Police Department, the Monett, Mo., Police Department, the Pierce City, Mo., Police Department, the St. Clair County, Mo., Sheriff’s Department, the Rolla, Mo., Police Department and the Catoosa, Okla., Police Department.