Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
14 June 2016
Berea man indicted for selling heroin that killed Lakewood manRead the Press Release
A two-count indictment was filed in federal court charging a Berea man with distributing heroin that killed a Lakewood man earlier this year, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Brandon Wagner, 43, was indicted on one count of distribution of heroin and one count of using a communication facility to facilitate a felony. The charges stem from the March 16 sale of heroin that resulted in the death of another person, according to the indictment.
That count carries a sentencing enhancement that can result in a 20-year mandatory minimum penalty.
“The unrelenting wave of fatalities associated with heroin and opioid abuse is a reminder to all of us that we need to do more to protect our community from this epidemic,” Rendon said. “The only way we can stem this tide is with a comprehensive approach focused on prevention, treatment, prescribing practices and enforcement. Law enforcement will continue to aggressively prosecute dealers whose actions result in the deaths of our sons and daughters.”
“The crisis we have in our communities due to heroin and fentanyl is not a problem for just the addicted,” said Lakewood Police Chief Tim Malley. “The families and friends are just as intimately involved with the damage and sorrow this causes. The Lakewood Police Department will continue to investigate all of our overdose cases to hold those accountable that have participated in any way in ending someone’s life. Those selling the heroin know that fatal consequences are all too likely with what they are selling, all for a few dollars. The Lakewood Police Department will continue to work with the U.S. Department of Justice, the Cuyahoga County Prosecutors Office, and the Cuyahoga County Medical Examiner to hold those accountable and take them off our streets for lengthy prison sentences.”
This case is being prosecuted by Assistant U.S. Attorney Marisa Darden following an investigation by the Lakewood Police Department and the Northern Ohio Law Enforcement Task Force. The NOLETF is a task force comprised of investigators from the Federal Bureau of Investigation, Cleveland Division of Police, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cuyahoga County Sheriff’s Office, Ohio Bureau of Criminal Investigation and the police departments of Cleveland Heights, Euclid, Lakewood, the Regional Transit Authority, Westlake and Shaker Heights. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area initiatives, which supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An 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.
Auburn Woman Pleads Guilty to Theft from Interstate ShipmentsRead the Press Release
Contact: Benjamin M. Block
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jennifer Leighton, 37, of Auburn, Maine, pleaded guilty today in U.S. District Court to theft from interstate shipments of goods.
Court records reveal that between July and September 2015, Leighton was employed by United Parcel Service (UPS) as a customer care representative in the Auburn, Maine, sorting facility. During this period, Leighton stole at least six packages containing prescription narcotic medications that had been shipped via UPS from the Veterans Administration medical facility in Togus, Maine to outpatient veteran clients.
Leighton faces up to three years in prison and a fine of up to $250,000. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
This case was investigated by the Criminal Investigations Division of the U.S. Department of Veterans Affairs, Office of Inspector General.
A Fitchburg Woman Pleads Guilty to Embezzling over $1.3 Million Dollars from EmployerRead the Press Release
BOSTON – A former Fitchburg office manager pleaded guilty today in U.S. District Court in Boston to embezzling over $1.3 million dollars from her employer over a ten year period.
Dawnmarie Prince, 47, pleaded guilty to eight counts of bank fraud and one count of aggravated identity theft. U.S. District Court Senior Judge Rya W. Zobel scheduled sentencing for Sept. 14, 2016.
Prince worked as an office manager at a Woburn-based life science technology firm where she was responsible for handling the firm’s accounts payable. Since at least 2005 through May 2015, Prince used her position as office manager to steal hundreds of the company’s checks, which she made payable to herself or to her son. Prince then forged her boss’s signature on the stolen checks, and deposited them into her personal bank accounts.
To conceal her criminal conduct and avoid detection, Prince removed copies of the negotiated checks when sent back by the bank, and she falsified entries into the bookkeeping software program to make it appear as if the stolen checks had been used to pay legitimate vendors. In total, Prince embezzled over $1.3 million which she spent on personal expenses.
In 2001, Prince was convicted of mail fraud for defrauding a previous employer and sentenced to three years of probation and ordered to pay restitution. Prince was employed as a claims analyst for a subsidiary company of a Boston-based health plan. Shortly after starting that job, Prince created and submitted numerous false medical provider claims to the health plan. As a result, Prince received almost $50,000 in claims checks, which she endorsed and deposited into her personal bank account. Prince’s recent fraud came to light after Prince provided false and incomplete financial information to the U.S. Attorney’s Office’s Financial Litigation Unit, which was responsible for collecting the outstanding restitution payments on the 2001 case.
Prince faces a maximum sentence of 30 years in prison, three years of supervised release, and a $1,000,000 fine on each of the bank fraud counts, as well as a mandatory consecutive term of two years in prison, one year of supervised release, and a fine of $250,000 for the aggravated identity theft charge. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division, made the announcement today.
The case is being prosecuted by Assistant United States Attorney Jordi de Llano of Ortiz’s Major Crimes Unit.
13 June 2016
Wilkinsburg Man Sentenced to 5 Years in Prison for Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH - A resident of Wilkinsburg, Pa., has been sentenced in federal court to 60 months’ imprisonment on his conviction of conspiracy to distribute 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Michael Lyons, 40.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Michael Lyons was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to fulfill the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Lyons.
Warren man charged with violating the Clean Water ActRead the Press Release
A former employee of a Youngstown-based company was charged with violating the Clean Water Act for directing another employee to dump fracking waste into a tributary of the Mahoning River, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
David N. Jenkins, 34, of Warren, was charged via criminal information with one count of making unpermitted discharges in violation of the Clean Water Act.
According to the indictment and related court documents:
Hardrock Excavating LLC was owned by Benedict Lupo and located at 2761 Salt Springs Road in Youngstown. The company provided services to the oil and gas industry in Ohio and Pennsylvania, including the storage of brine and oil-based drilling mud used in hydrofracturing, or fracking.
There were approximately 58 mobile storage tanks at the facility and each held approximately 20,000 gallons.
Lupo directed employees to empty some of the waste liquid stored at the facility into a nearby wastewater drain on or about Nov. 1, 2012. Lupo directed the employees to conduct this activity only after no one else was at the facility and only after dark.
The employees, at Lupo’s direction, emptied some of the waste liquid at the facility into the nearby stormwater drain using a hose on numerous occasions over the next several months. The drain flowed into a tributary of the Mahoning River and ultimately into the Mahoning River.
On occasion, Lupo was unable to speak directly to employees. In those instances, Lupo directed Jenkins to contact the employees about emptying the stored waste liquids into the stormwater drain at night, which Jenkins did.
The last time an employee emptied some of the waste liquid into the drain was on or about Jan. 31, 2013. The waste liquid that night included brine and drill cuttings. A sample of the discharge taken that night was black in color and a subsequent analysis showed the presence of several hazardous pollutants, including benzene and toluene.
Lupo, of Poland, Ohio, was previously found guilty of making an unpermitted discharge and sentenced to more than two years in prison.
This case is being prosecuted by Special Assistant U.S. Attorney Brad Beeson following an investigation by the Ohio EPA, Ohio Department of Natural Resources, U.S. EPA, the Ohio Bureau of Criminal Investigation, the Youngstown Department of Public Works and the Youngstown Fire Department.
If convicted, the defendant’s sentence will be determined by the court after reviewing 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.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Utah Man Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Utah man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Alfredo Chavez Mendoza, a/k/a Alfredo Chavez-Mendoza, a/k/a Maniac, a/k/a Julian, age 26, was indicted on April 13, 2016. He appeared before United States Magistrate Mark A. Moreno on June 10, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is at least 5 years and up to 40 years in custody and/or a $5,000,000 fine, at least 4 years and up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment alleges that between August 1, 2015, and April 13, 2016, Mendoza knowingly and intentionally combined, conspired, confederated and agreed with other persons to knowingly and intentionally distribute and possess with intent to distribute methamphetamine in South Dakota.
The charges are merely an accusation and Mendoza is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services, Federal Bureau of Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Mendoza was remanded to the custody of the U.S. Marshals Service pending trial. Trial has been set for September 2, 2016.
Using Craig’s List to Distribute Child Pornography Results in A 70 Month Federal Prison Sentence for Chattanooga ResidentRead the Press Release
CHATTANOOGA, Tenn. – On June 13, 2016, Larry Vance, 29, of Chattanooga, Tenn., was sentenced by the Honorable Harry S. Mattice Jr., U.S. District Court Judge, to serve 70 months in federal prison for distribution of child pornography. Upon his release from prison, Vance will be supervised by the U.S. Probation Office for 15 years.
In December 2015, Vance pleaded guilty to distribution of child pornography. The investigation that led to the charges against Vance began when Texas law enforcement noticed that a Tennessee man was sending images of child pornography and discussing the molestation of these children through Craig’s List.
The U.S. Department of Homeland Security Investigations, Federal Bureau of Investigation, and Chattanooga Police Department assisted with this investigation. Assistant U.S. Attorney Terra L. Bay represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
###
U.S. Attorney’s Office and Law Enforcement Partners Kick Off 2016 Camp Triumph Summer Youth Prevention ProgramRead the Press Release
ALBUQUERQUE – This morning the U.S. Attorney’s Office, U.S. Marshals Service, New Mexico State Police, Bernalillo County Sheriff’s Office, New Mexico Army Reserve National Guard, Isleta Pueblo Tribal Police Department, Isleta Behavioral Health, the Navajo Nation Department of Public Safety and To’hajiilee Behavioral Health kicked off the 2016 Camp Triumph Summer Youth Prevention Program.
The U.S. Attorney’s Office and its law enforcement and outreach partners have operated this summer youth camp – a youth drug, gang and gun violence prevention collaborative effort – for 20 years. Camp Triumph originally was funded by the Justice Department’s Weed & Seed Project and currently is operated as part of the Justice Department’s Project Safe Neighborhoods program in Bernalillo County that has an Urban Indian focus.
Camp Triumph, which is open free of charge to at risk youths from ten to 13 years of age, is designed to keep middle school youth free of substance abuse and criminal involvement by providing physically challenging recreational and life skills activities, interaction with positive role models, evidence-based gang and substance abuse resistance training, and team building. Campers participate in fishing trips, visits to the zoo, bowling, swimming, and other fun physical activities, but also have class time during which law enforcement officers and Guardsmen make presentations on drug, gang and violence prevention.
Rio Grande High School in Albuquerque is the host for the Camp’s first session, June 13-16, 2016. Isleta Pueblo is hosting the second session, June 20-24, 2016, and To’Hajiilee (Navajo Nation) is hosting the third session, June 27-29, 2016.
Project Safe Neighborhoods is the Department of Justice’s nationwide commitment to reduce gun and gang crime in America by networking existing local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. Since its inception in 2001, approximately $2 billion has been committed to this initiative. This funding is being used to hire new federal and state prosecutors, support investigators, provide training, distribute gun lock safety kits, deter juvenile gun crime, and develop and promote community outreach efforts as well as to support other gun and gang violence reduction strategies.
U.S. Attorney A. Lee Bentley, III Statement on Orlando Terrorist AttackRead the Press Release
I would like to thank the men and women from our state and local agencies who continue to work tirelessly following this tragic attack. The U.S. Attorney’s Office for the Middle District of Florida, along with the Department of Justice, including the FBI, the ATF, and the National Security Division fully supports the ongoing investigation. Our thoughts and prayers remain with the victims’ families during this very difficult time.
No additional information is available at this time.
Three Mexican nationals plead guilty to illegal reentryRead the Press Release
MARTINSBURG, WEST VIRGINIA – Three individuals from Mexico pled guilty to illegal reentry today in federal court in Martinsburg, United States Attorney William J. Ihlenfeld, II, announced.
Rubisley Martinez-Canseco, 38, originally of Mexico, was discovered in April 2016 in Berkeley County after having been deported from the United States. Martinez-Canseco pled guilty today to one count of “Reentry of a Removed Alien.” He faces up to two years in prison and a fine of up to $250,000.
Pedro Camarrillo-Guevarra, 26, originally of Mexico, was discovered in October 2015 in Berkeley County after previously having been deported from the United States. Camarrillo-Guevarra pled guilty today to one count of “Reentry of a Removed Alien.” He faces up to two years in prison and a fine of up to $250,000.
Alberto Martinez-Nieto, 45, originally of Mexico, was discovered in April 2016 in Berkeley County, West Virginia after previously having been deported from the United States. Martinez-Nieto has multiple previous felony convictions, including “Vehicle Theft” and “Possession for Sale or Purchase for Purposes of Sale a Controlled Substance (Cocaine).” Martinez-Nieto pled guilty today to one count of “Reentry of a Deported Alien Previously Convicted of an Aggravated Felony.” He faces up to 20 years in prison and a fine of 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 defendants.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the cases on behalf of the government. The United States Department of Homeland Security Immigrations and Customs Enforcement investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Tampa Man Sentenced for Tax FraudRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington today sentenced Frazier Williams, Jr. to three years in federal prison for willfully aiding and assisting in the preparation of a tax return that he knew to be false and fraudulent. The Court also ordered him to pay restitution to the Internal Revenue Service in the amount of $2,974,000. A federal jury found Williams guilty on January 16, 2016.
According to the evidence presented at trial, Williams, an officer of Aztech Energy Corporation, assisted in the preparation of a federal corporate income tax return for Aztech that fraudulently inflated the amount of fuel tax credits the corporation was entitled to by more than $2 million.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Bob Mosakowski.
Stockton Man Pleads Guilty to Methamphetamine Trafficking ConspiracyRead the Press Release
FRESNO, Calif. — Luis Fernando De La Rocha-Carlon, 26, of Stockton, pleaded guilty today to conspiring to distribute and possess with the intent to distribute methamphetamine, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, on October 9, 2014, De La Rocha-Carlon negotiated the sale of approximately seven kilograms of crystal methamphetamine for $84,000 and came to Fresno with his brother to meet with the buyer. When CHP officers tried to stop De La Rocha-Carlon, he fled and threw the seven kilograms out of the window of his vehicle. All the crystal methamphetamine was recovered. On February 16, his brother and co-defendant Mauricio De La Rocha pleaded guilty to conspiring to distribute methamphetamine and was sentenced to over three years in prison on May 2, 2016.
This case is the product of an investigation by the Drug Enforcement Administration Task Force and the California Highway Patrol. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.
De La Rocha-Carlon is scheduled to be sentenced by Judge Dale A. Drozd on August 29, 2016. De La Rocha-Carlon faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
South Portland Man Sentenced to Almost Four Years on Visa and Bank Fraud, Firearms and False Statement ChargesRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Mukonkole Huge Kifwa, a/k/a “Ndowa Adrien Lushiku,” a/k/a “Adrien Ndowa,” a/k/a “Adrien Lushiku,” a/k/a “Hugue Kifwa,” 30, of South Portland, Maine was sentenced today in U.S. District Court by Judge D. Brock Hornby to 46 months in prison for visa fraud, possession of firearms by a non-immigrant alien, bank fraud, and making false statements to a government agency. He was also ordered to pay $15,090 in restitution. He was convicted following a jury trial on January 14, 2016.
According to the indictment and trial evidence, the defendant was a citizen of the Democratic Republic of Congo who fraudulently obtained a diplomatic visa in January 2014 in a false name and by making false representations. He illegally rented a pistol and a rifle in Maine in October and November 2014 under a false name. While living in Maine between September 2014 and March 2015, he committed a series of fraudulent transactions at four financial institutions in the greater Portland area. Finally, on July 14, 2015, he was arrested and falsely told federal agents that he had never been to Canada when, in fact, he previously lived in Canada for many years.
In imposing sentencing Judge Hornby said: “You’re a con man. You’re a fraudster. … One of the primary factors here is my obligation as a federal judge to protect the public.”
The case was investigated by the U.S. Department of State, Diplomatic Security Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Portland and Scarborough Police Departments; the Cumberland County Sheriff’s Office; with assistance from Canadian authorities.
Shippensburg Man Sentenced to 10 Years in Prison for Drug DistributionRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dante Kaleek Darby, age 32, of Shippensburg, Pennsylvania, was sentenced today to 10 years in prison by United States District Court Judge John E. Jones, III in Harrisburg, for distribution of cocaine hydrochloride.
According to United States Attorney Peter Smith, Darby previously pleaded guilty to distribution of cocaine hydrochloride in December 2015. Darby, in his plea, acknowledged distributing cocaine hydrochloride in Franklin County on four separate occasions - September 2012, March 2013, August 2013 and October 2013.
Darby was indicted by a federal grand jury in Harrisburg in May 2014, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police and the Franklin County Drug Task Force. Assistant United States Attorney Meredith A. Taylor prosecuted the case.
# # #
Private Contractor Sentenced for Bribing a U.S. Postal Service Contracting OfficialRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Barbara Murphy, age 52, of Rocky Mount, North Carolina, today to 10 months in prison followed by three years of supervised release for bribing a contracting officer with the U.S. Postal Service in exchange for favorable treatment in connection with the awarding of contracts to deliver mail. Judge Hazel ordered Murphy to begin serving her sentence today, and to forfeit $17,920.31.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General.
According to a factual stipulation filed with the court, Murphy was the sole owner of ER&R Transportation and MC&G Trucking LLC, which she used to bid for and perform on transportation contracts with the U.S. Postal Service. Murphy admitted that from January 2011 to July 2012, she bribed Gregory Cooper, a U.S. Postal Service contracting officer representative. These bribes included cash paid directly into Cooper’s bank accounts, automobile loan payments, college tuition for Cooper’s daughter, five cell phone bill payments, an airline ticket and fitness equipment.
Murphy admitted that she provided these benefits in exchange for Cooper’s favorable treatment of her companies on U.S. Postal Service contracts. Specifically, Cooper recommended to his superiors that 10 contracts on which Murphy bid be awarded to Murphy’s companies. Additionally, Murphy admitted that Cooper provided her with advice on how to address specific issues that arose from her contract performance and drafted documents that Murphy provided to the U.S. Postal Service.
Gregory Cooper, age 60, of Glenn Dale, Maryland, previously pleaded guilty to his participation in the bribe scheme and was sentenced to 15 months in prison. Judge Hazel also ordered Cooper to forfeit $25,931.76.
U.S. Attorney Rosenstein and Assistant Attorney General Caldwell commended the U.S. Postal Service Office of the Inspector General for its work in the investigation. The case was prosecuted by Assistant U.S. Attorney David I. Salem and Trial Attorneys Mark Cipolletti and Monique Abrishami of the Criminal Division’s Public Integrity Section.
Press AdvisoryRead the Press Release
LEADership Project Wrap-Up News Conference
Tuesday, June 14 at 2 p.m.
Giffen Memorial Elementary School
274 South Pearl Street, AlbanyALBANY, NEW YORK – United States Attorney Richard S. Hartunian will host a wrap-up news conference on the LEADership Project tomorrow at the Giffen Memorial Elementary School, part of the Albany City School District. U.S. Attorney Hartunian will be joined by the superintendents of the four Capital Region public school districts whose classes were visited as part of the project. The fifth-grade class that U.S. Attorney Hartunian taught will also be present.
Officials from federal, state and local law enforcement agencies, who served as volunteer instructors for the project, will also be in attendance. This year, 29 agencies contributed volunteers. They visited nearly every public school fifth-grade class in the school districts of Albany, Schenectady, Troy and Lansingburgh.
U.S. Attorney Hartunian and others will be available for interviews after the event.
Please contact Marilyn Morey if you plan to attend.
Penn Hills Man Sentenced to Prison for Role in Cocaine Trafficking SchemeRead the Press Release
PITTSBURGH – An Allegheny County has been sentenced in federal court to 30 months’ imprisonment on his conviction of conspiracy to distribute 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Anthony Donald, 48, of Pittsburgh, PA (Penn Hills).
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Anthony Donald was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to fulfill the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Donald.
Orange County Doctor and Two Employees Indicted on Federal Drug Charges that Allege Illegal Prescriptions Written without Medical NeedRead the Press Release
SANTA ANA, California – A federal grand jury has indicted a doctor who operated a medical clinic in Fountain Valley, as well as two physician assistants who worked at the clinic, on federal drug trafficking charges that allege they issued prescriptions for dangerous and addictive narcotics without a medical purpose.
The indictment, which was returned by the grand jury on June 8, was announced today after one of the physician assistants was arrested this morning by federal authorities in the Bay Area. The other defendants have agreed to surrender.
Dr. Victor Boon Huat Siew, 65, a resident of Laguna Beach, is accused of seeing “patients” – some of whom were addicted to drugs, and some of whom were undercover law enforcement officers – and issuing prescriptions outside the usual course of professional practice and without a legitimate medical purpose.
The indictment alleges that Siew wrote prescriptions for at least four people who died from drug overdoses within days of seeing the doctor.
Siew and his employees allegedly wrote prescriptions for narcotics for “patients” who often paid cash for office visits that typically involved only the most cursory examination, if any at all.
The most common drugs prescribed by Siew and his employees were oxycodone (best known under the brand name OxyContin), methadone (a synthetic opioid often used as a treatment for addiction to opioids such as heroin), and alprazolam (sold primarily under the brand name Xanax).
The physician assistant arrested today – Kaitlyn Phuong Nguyen, 31, of San Jose, California – is expected to make a court appearance this afternoon in United States District Court in San Jose.
Siew is expected to surrender to federal authorities tomorrow. He is expected to be arraigned tomorrow afternoon in United States District Court in Santa Ana.
The third defendant in the case – physician assistant Thanh Nha T. Pham, 45, of Fountain Valley – has agreed to surrender to authorities later this week.
“Opioids such as oxycodone and methadone can bring substantial benefits to patients who truly need these drugs,” said United States Attorney Eileen M. Decker. “But narcotics such as these also threaten the lives of people who abuse the drugs or become addicted. Medical professionals who prescribe dangerous drugs without a medical need are harming patients and threaten entire communities when these drugs are diverted to the black market.”
“DEA is committed to ending the nationwide prescription opioid epidemic,” said Special Agent in Charge John S. Comer. “Medical professionals who act with complete disregard for patient health and safety violate their code of ethics and abuse the public’s trust. We will continue to target those engaged in criminally motivated ‘prescription-for-profit’ schemes.”
The indictment alleges one count of conspiracy to distribute controlled substances and 55 counts of illegal distribution of a controlled substance by a practitioner. Each of the three defendants is charged in multiple, but not all, illegal distribution counts.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Each of the 56 counts in the indictment carries a statutory maximum penalty of 20 years in federal prison.
This case is the result of an investigation by the Drug Enforcement Administration, the Fountain Valley Police Department and the California Department of Justice. The case is being prosecuted by Assistant United States Attorney Ann Luotto Wolf.
Oklahoma Medical Clinics Pays $2.5 Million to Settle Allegations of False Claims for Medical Services Provided to Federal EmployeesRead the Press Release
Oklahoma City, Oklahoma – FEDCARE, LLC, and THE BROADWAY CLINIC OF TULSA, LLC, has paid $2,500,000 to the United States to settle civil penalty claims stemming from allegations that the clinics violated the False Claims Act by submitting false claims to the Office of Workers Compensation Programs of the United States Department of Labor ("DOL-OWCP"), announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
FedCare, LLC ("FedCare") is an Oklahoma limited liability company that operates a medical clinic in Oklahoma City. A related entity, The Broadway Clinic of Tulsa, LLC ("Broadway"), is an Oklahoma limited liability company that operated a medical clinic in Tulsa. FedCare and Broadway provided medical services to federal employees under the Federal Employees’ Compensation Act (FECA). FECA provides workers compensation benefits to civilian employees of the United States for disability due to personal injury sustained while in the performance of duty, and for employment-related disease. Benefits include rehabilitation, medical, surgical and necessary expenses. Claims for services provided under FECA are submitted to DOL-OWCP.
The United States contends that from July 1, 2006, through December 31, 2012, FedCare and Broadway submitted false claims for payment to DOL-OWCP. Specifically, it is alleged that FedCare and Broadway submitted claims to DOL-OWCP for medical services furnished to federal employees of fourteen federal agencies that were false because they were either (1) billed at a higher rate than allowed or (2) not performed at all.
In order to resolve these allegations, FedCare and Broadway agreed to pay $2,500,000 to the United States. In reaching this settlement, FedCare and Broadway did not admit liability and the government did not make any concessions regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the United States Postal Service, Office of Inspector General. The case was prosecuted by Assistant United States Attorney Ronald R. Gallegos.
North Port Man Pleads Guilty to Possession of Unauthorized Access DevicesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Michael Wesley (40, North Port) has pleaded guilty to two counts of possession of unauthorized access devices. He faces a maximum penalty of 10 years in federal prison on each count.
According to the plea agreement, between November 2011 and May 2014, Wesley was engaged in a fraud scheme in which he would obtain checks that had been written by victim bank account holders and stolen from United States Postal Service mailboxes. Wesley would then use the personal information printed on these stolen checks to cash, at the victim’s own bank, worthless checks made payable to the victim but had been written on closed accounts from other banking institutions. In this manner, Wesley frequently obtained cash from federally insured financial institutions. On multiple occasions, and at different locations over several years, ranging from Lee, Manatee, and Hillsborough Counties, Florida law enforcement officers found Wesley to be in possession of numerous such checks and theft paraphernalia. Each check was an unauthorized access device containing the account holder’s personal information, bank account, and routing numbers. None of the victim account holders had authorized Wesley to possess or use those checks.
This case was investigated by the United States Postal Inspection Service, with assistance from the Sheriff’s Offices in Hillsborough, Pinellas, Manatee, Seminole, and County, and the Florida Highway Patrol. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Newark Corrections Officer Sentenced to 25 Years in Prison for Sexual Abuse of DetaineeRead the Press Release
NEWARK, N.J. – A former corrections officer with the Essex County Correctional Facility was sentenced today to 300 months in prison for sexually assaulting a pretrial detainee and then lying about it to investigators, U.S. Attorney Paul J. Fishman, District of New Jersey, and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, announced.
Shawn D. Shaw, 42, of Newark, was previously convicted of both counts of an indictment charging him with depriving an individual of rights under color of law and obstruction of justice following a seven-day trial before U.S. District Judge Esther Salas. The jury deliberated for two days before returning the guilty verdict. Judge Salas imposed the sentence today in Newark federal court.
“The defendant’s conduct in this case is especially abhorrent considering his role as a public servant overseeing the safety and well-being of the prisoners in his charge,” U.S. Attorney Fishman said. “His sentence appropriately reflects the serious nature of his crime and the government’s intolerance of such criminal behavior by those who wear a badge.”
“The defendant abused his position of power to exploit a vulnerable individual whom he was tasked with protecting,” said Principal Deputy Assistant Attorney General Gupta. “While no amount of jail time can undo the harm he caused, I am hopeful that this sentence will provide some level of resolution to the victim who had the strength and resolve to report the assault.”
According to documents filed in this case and the evidence at trial:
Shaw was the only officer on duty in the female unit during the night of a snow blizzard on Dec. 28, 2010. During the night, Shaw made sexually explicit comments to the victim. Although she rejected his advances, records show that in the middle of the night, Shaw opened the victim’s cell door. The victim testified that Shaw entered her cell, and despite her saying “stop” and “no,” Shaw raped her. Expert testimony, including DNA analysis, corroborated the victim’s testimony that Shaw was her assailant.
When investigators questioned Shaw about the attack, he lied and intentionally omitted information from his statement in order to obstruct the investigation. Shaw falsely stated that he did not make sexual comments to the detainee or enter the victim’s cell.
In addition to the prison term, Judge Salas sentenced Shaw to five years of supervised release and ordered him to pay restitution of $6,000 to the victim.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, for its assistance.
The government is represented by Criminal Division Chief Thomas Eicher and Assistant U.S. Attorney Shana Chen of the U.S. Attorney’s Office in Newark, with assistance from Trial Attorney Shan Patel of the Justice Department’s Civil Rights Division.
Defense counsel: Mark A. Fury Esq., Mount Holly
New Jersey Correctional Officer Sentenced to 25 Years in Prison for Sexual Abuse of DetaineeRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Paul J. Fishman of the District of New Jersey announced today that Shawn D. Shaw, 42, of Newark, New Jersey, a former correctional officer with the Essex County, New Jersey, Correctional Facility, was sentenced today to 25 years in prison for sexually assaulting a pretrial detainee and then lying about it to investigators.
Shaw was convicted on Feb. 5, 2016, of both counts of an indictment charging him with depriving an individual of rights under color of law and obstruction of justice following a seven-day trial before U.S. District Judge Esther Salas of the District of New Jersey. Judge Salas imposed the sentence today in Newark federal court.
“The defendant abused his position of power to exploit a vulnerable individual whom he was tasked with protecting,” said Principal Deputy Assistant Attorney General Gupta. “While no amount of jail time can undo the harm he caused, I am hopeful that this sentence will provide some level of resolution to the victim who had the strength and resolve to report the assault.”
“The defendant’s conduct in this case is especially abhorrent considering his role as a public servant overseeing the safety and well-being of the prisoners in his charge,” said U.S. Attorney Fishman. “His sentence appropriately reflects the serious nature of his crime and the government’s intolerance of such criminal behavior by those who wear a badge.”
According to documents filed in this case and the evidence at trial:
Shaw was the only officer on duty in the female unit during a blizzard on Dec. 28, 2010. During the night, Shaw made sexually explicit comments to the victim. Although she rejected his advances, records show that in the middle of the night, Shaw opened the victim’s cell door. The victim testified that Shaw entered her cell, and despite her saying “stop” and “no,” Shaw raped her. Expert testimony, including DNA analysis, corroborated the victim’s testimony that Shaw was her assailant.
When investigators questioned Shaw about the attack, he lied and intentionally omitted information from his statement in order to obstruct the investigation. Shaw falsely stated that he did not make sexual comments to the detainee or enter the victim’s cell.
In addition to the prison term, Judge Salas sentenced Shaw to five years of supervised release and ordered him to pay $6,000 in restitution.
This case was investigated by the FBI’s Newark Division and was prosecuted by Criminal Division Chief Thomas Eicher and Assistant U.S. Attorney Shana Chen of the District of New Jersey and Trial Attorney Shan Patel of the Civil Rights Division’s Criminal Section.
New Haven Man Sentenced to 46 Months in Federal Prison for Firearm OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EARL HOBBY, 37, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 46 months of imprisonment, followed by three years of supervised release, for illegally possessing ammunition.
According to court documents and statements made in court, on December 19, 2014, members of the New Haven Police Department responded to a call concerning a person with a firearm at 154 Frank Street in New Haven. Arriving officers encountered HOBBY walking on Clover Street and attempted to stop him. HOBBY resisted, and two officers were injured in the struggle. After HOBBY was subdued, he was found to be in possession of two rounds of Winchester .38 Special ammunition. A loaded Ruger .357 revolver and a quantity of heroin packaged for distribution also were found in the area.
Prior to December 2014, HOBBY had sustained multiple narcotics convictions and a weapon conviction. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On January 21, 2016, HOBBY pleaded guilty to one count of possession of ammunition by a convicted felon.
The matter was investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorneys Jennifer Laraia and Anthony Kaplan.
Multiple defendants appear on Federal drug charges in HuntingtonRead the Press Release
HUNTINGTON, W.Va. – Multiple defendants appeared today in federal court in Huntington on drug charges, announced Acting United States Attorney Carol Casto.
Michael Muncy, 36, of Crum in Wayne County, was sentenced to five years and ten months in federal prison for possession with intent to distribute oxycodone. Naomi Messer, 55, also of Crum and the mother of Muncy, was sentenced to five years of probation for aiding and abetting possession with intent to distribute oxycodone. Following several controlled purchases of oxycodone from the residence of Muncy and Messer in Crum, law enforcement executed a search warrant at the house on February 21, 2012. Law enforcement seized oxycodone pills and over $1,800 in cash, including pre-recorded buy money from a prior controlled purchase of oxycodone.
In a separate drug prosecution, Jessica Dawn Prince, 30, of Huntington, pleaded guilty to distributing heroin. Prince admitted that on October 19, 2015, she sold heroin to a confidential informant working with law enforcement. The drug deal took place in Prince’s residence at 5400 Altizer Avenue in Huntington. Prince faces up to 20 years in federal prison when she is sentenced on September 12, 2016.
The West Virginia State Police and the Route 119 Drug Task Force conducted the investigation of Muncy and Messer. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecutions of Muncy and Messer. The Cabell County Sheriff’s Department conducted the investigation of Prince. Assistant United States Attorney Gregory McVey is responsible for the prosecution of Prince. The hearings were held before Chief United States District Judge Robert C. Chambers.
These prosecutions were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-
Mexican Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced today that Juan Martinez, of Mexico, pleaded guilty today to illegally reentering the United States after having been previously deported. Under the U.S. Attorney’s accelerated sentencing program for reentry cases, the defendant was sentenced to time served since his arrest on April 15, 2016. The defendant will now be deported.
On March 24, 2016 Manchester, NH ICE ERO Officers were in Nashua, New Hampshire conducting surveillance of a vehicle that the defendant was known to operate. At approximately 9:30 p.m., the defendant exited a house in the area of Palm Street and entered the driver’s side of a black BMW. The defendant was then approached by an ICE Deportation Officer, who conducted a brief interview in Spanish during which he confirmed the defendant’s name was Juan Martinez, that he was a citizen of Mexico and that he had illegally entered the United States. At this time the Deportation Officer placed the defendant into ICE custody for immigration violations.
At the Manchester ICE office, a full set of digital fingerprint impressions were obtained from the defendant for comparison to known fingerprints maintained in HIS and FBI databases. The comparison revealed that the defendant’s fingerprints were an exact match to fingerprints obtained from the defendant at the time of his deportation from the Brownsville, Texas to Mexico on February 18, 2011.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and prosecuted by Assistant U.S. Attorney Alfred Rubega.
###
Maryland Woman Found Guilty of Leading Oxycodone OperationRead the Press Release
ALEXANDRIA, Va. – Roxanne Granberry, 35, Hughesville, Maryland, was convicted today by a federal jury on charges of conspiracy to distribute oxycodone and obtaining oxycodone by fraud.
Granberry was indicted on February 3. According to court records and evidence presented at trial, Roxanne Granberry and her husband, William Granberry, ran a large-scale drug conspiracy in which they created fraudulent prescriptions for narcotics and used drug runners in multiple pharmacies in Virginia and several other states to obtain thousands of oxycodone tablets. Roxanne and William recruited individuals to drive to pharmacies and pass the prescriptions, and also engaged in direct sale and distribution of the oxycodone to numerous buyers in Virginia and other states. Since 2008, the criminal organization has fraudulently obtained approximately 130,000 oxycodone pills. Thirteen other members of this conspiracy have also been convicted.
Granberry faces a maximum penalty of 20 years in prison when sentenced on September 16. 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; Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Washington Field Division; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the verdict was accepted by U.S. District Judge Anthony J. Trenga. Special Assistant U.S. Attorneys Paul A. Hayden and Anna G. Kaminska, as well as Assistant U.S. Attorney Gene Rossi are prosecuting the case.
The U.S. Attorney thanked the Department of Defense–Office of the Inspector General, Loudoun County Sheriff’s Office, Charles County Sheriff’s Office, Calvert County Sheriff’s Office, Washington, D.C. Metropolitan Police Department, Virginia State Police, and the Pennsylvania Attorney General’s Office for their assistance in this matter.
This case is part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation “Circuit Breaker,” which focused on the vast illegal procurement and sale of prescription pain medication across the mid-Atlantic region and elsewhere, including Virginia, Maryland, Pennsylvania, Ohio, North Carolina, Georgia, Connecticut, Alabama, Tennessee, West Virginia, and Washington, D.C.. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
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. 1:16-cr-28.
Madera Man Previously Convicted of Tax Evasion Sentenced for Illegally Possessing a FirearmRead the Press Release
FRESNO, Calif. — Walter Watts Jr., 47, of Madera, was sentenced Monday by United States District Judge Anthony W. Ishii to 2 ½ years in prison for being a felon in possession of a firearm, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, on November 29, 2012, law enforcement officers searched Watt’s home and found a Tactical Machine semiautomatic rifle, a Heckler and Koch shotgun, and a .22-caliber firearm with an attached laser. Watts was previously convicted of felony tax evasion in April 2011.
This case was the product of an investigation by the Drug Enforcement Administration and the Madera Narcotics Enforcement Team. Assistant United States Attorney Kevin Rooney prosecuted the case.
Watts was ordered to surrender on August 22, 2016, to begin his prison term.
MEDIA ADVISORY-- U.S. Attorney Damon Martinez Joins KANW and the Albuquerque Journal for a Special Radio Broadcast on New Mexico’s Heroin and Opioid EpidemicRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez will join KANW General Manager Michael Brasher and Albuquerque Journal Investigative Reporter Mike Gallagher for a KANW special broadcast on New Mexico’s heroin and opioid epidemic at 5:00 pm this afternoon. Today’s special broadcast will identify some of the issues that will be addressed by more than 20 experts during the KANW/Albuquerque Journal live public forum on heroin and opioid prevention and education that will be broadcast by KANW from 7:00 pm to 9:00 pm on Wednesday, June 15, 2016. HOPE Initiative partners, U.S. Attorney Martinez and Executive Vice Chancellor Richard Larson, UNM Health Sciences Center, will co-host the public forum.
WHO:
U.S. Attorney Damon P. Martinez
Michael Brasher, General Manager, KANW
Mike Gallagher, Investigative Reporter, Albuquerque Journal
WHAT:
Special Broadcast on New Mexico’s Heroin and Opioid Epidemic
WHEN:
MONDAY, JUNE 13, 2016 AT 5:00 PM
WHERE:
KANW 89.1FM
The New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative was launched in Jan. 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national heroin and opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC) and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico. The Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The new community education program is part of the prevention and education component of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Lower Brule Man Sentenced for Possession of a Firearm by a Prohibited PersonRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lower Brule, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on June 13, 2016, by U.S. District Judge Roberto A. Lange.
Lance Corey Flute, age 37, was sentenced to 4 months in custody, 2 years of Supervised Release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Flute was indicted by a federal grand jury on January 21, 2016. He pled guilty on March 8, 2016.
The conviction stemmed from an incident on December 17, 2015, when the Bureau of Indian Affairs, Crow Creek Agency, received a call from the Lower Brule dispatch indicating a male had shot himself in the stomach while inside a vehicle and had died at the Lower Brule clinic. The victim had been a passage in a vehicle driven and registered to Flute. Investigation into the shooting revealed that the deceased male had accidentally shot himself with a rifle belonging to Flute.
Flute, who had been convicted of a crime punishable by imprisonment for a term exceeding one year, was prohibited from owning a firearm.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Flute is to report to the custody of the U.S. Marshals Service on or before June 27, 2016.
Lebanon Man Arrested for Coercion and Enticement of MinorRead the Press Release
DAYTON – Michael Kirkwood, 59, of Lebanon, Ohio, was arrested and charged by criminal complaint with one count of coercion and enticement of a minor.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Department of Homeland Security Investigations and Montgomery County Sheriff Phil Plummer announced today’s initial appearance in court.
According to the criminal complaint and affidavit in this case, Internet Crimes Against Children investigators received a complaint that a 13-year-old female was receiving inappropriate messages via Facebook from Kirkwood. An undercover detective began communicating with Kirkwood, who engaged in sexually explicit conversation and agreed to meet with who he thought was the 13-year-old girl at the Dayton Mall at Victoria’s Secret on June 8.
Kirkwood was arrested upon entering the mall and agreed to be interviewed by law enforcement. He stated he had chatted online with approximately 20 other female girls around the age of 13 and that he received and possessed child pornography on his home computer. A search of his residence also uncovered four pair of youth female underwear that appeared to have evidence of soiling.
Coercion and enticement of a minor is a crime punishable by 10 years to life in prison.
Kirkwood is scheduled for a detention hearing at 1:30pm on June 16 before U.S. Magistrate Judge Michael R. Merz.
If you have information related to this case, or believe you or others may have also been victimized by the same individual, please contact Detective Melanie Phelps with the Montgomery County Sheriff’s Office at 937-496-7191.
Acting U.S. Attorney Glassman commended the investigation of this case by the Montgomery County Sheriff’s Office and HSI, and Assistant United States Attorneys Alex R. Sistla and Andrew J. Hunt, who are prosecuting the case.
A criminal complaint contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Kensington Man Pleads Guilty to Producing Child PornographyRead the Press Release
Greenbelt, Maryland – Steven Edward Baker, age 41, of Kensington, Maryland, pleaded guilty today to producing child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, on July 8, 2015, FBI agents interviewed Baker at his business, Action Signs, located in Vienna, Virginia. Baker admitted that he had child pornography on both his work and home computers, and that he had been downloading child pornography for approximately 10 years. He estimated that his child pornography collection was approximately one terabyte in size.
Further investigation of digital media items obtained from Action Signs and Baker’s residence revealed 45 images and seven videos of a girl under the age of 12, all constituting child pornography, and produced by Baker. Baker produced the images and videos, including pictures taken at a park and what appears to be Baker’s home, from January 2008 to July 2013, using two cameras. The images included close ups of the victim in various states of undress, including numerous close-ups of the victim’s genitalia, and showing Baker touching areas in and around her genitalia.
Additionally, over 50,000 images and 1,000 videos of child pornography were found on the digital media which were not produced by Baker, but were downloaded from the internet. These images and videos depict real, prepubescent children engaged in sexually explicit conduct.
As part of his plea agreement, Baker 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).
Baker and the government have agreed that if the Court accepts the plea agreement, Baker faces between 15 and 24 years in prison followed by a lifetime of supervised release and a $250,000 fine. U.S. District Judge Paul W. Grimm has scheduled sentencing for October 14, 2016 at 9:00 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 the FBI for its work in the investigation and thanked Assistant U.S. Attorney Thomas M. Sullivan, who is prosecuting the case.
Justice Department Sues Michigan and Michigan Department of Corrections for Discriminating Against Female OfficersRead the Press Release
The Justice Department announced today that it has filed a lawsuit alleging that the state of Michigan and the Michigan Department of Corrections (MDOC) are engaged in a pattern or practice of sex-based employment discrimination against female correctional officers in violation of Title VII of the Civil Rights Act of 1964.
Title VII prohibits discrimination in employment on the basis of race, color, sex, national origin and religion. The lawsuit, filed today in the U.S. District Court for the Eastern District of Michigan, alleges that Michigan and MDOC discriminated against female employees assigned to MDOC’s Women’s Huron Valley Correctional Facility (Huron Valley) by implementing an overly broad female-only assignment policy and by unnecessarily denying requests by female employees for transfers, in violation of Title VII.
“Employers may not unduly lock workers into or out of a job because of their sex,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Qualified male and female correctional officers deserve equal opportunities to compete for job assignments and transfers without unnecessary barriers.”
The complaint alleges that beginning in 2009, MDOC discriminated against female correctional officers on the basis of sex at its only prison for female inmates, Huron Valley. The complaint further alleges that MDOC restricted multiple correctional officer positions on the basis of sex and without justification, in violation of Title VII. The complaint also alleges that MDOC has a pattern or practice of denying the transfer requests of female correctional officers from Huron Valley to other MDOC prisons, while at the same time granting transfer requests by male correctional officers to move to other facilities. Both policies required female employees at Huron Valley to work excessive overtime hours at a cost to their health.
The lawsuit seeks a court order requiring the defendants to stop discriminatory job assignment and transfer policies at Huron Valley and to order MDOC to develop and implement lawful and effective measures to prevent further discrimination. The remedial relief sought by this lawsuit also includes monetary damages as compensation for those female correctional officers who were harmed by the alleged discrimination.
“The Michigan Department of Corrections’ policy unnecessarily limits job opportunities for its female employees at the Huron Valley Correctional Facility,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “We are not challenging positions where it makes sense to assign only female officers, but only those positions that could reasonably be filled by men or women. By limiting positions that are not justifiably related to inmate privacy to women officers, MDOC created staffing limitations that harm female employees by forcing them to work overtime and preventing them from transferring to other facilities that are closer to their homes, offer more favorable conditions or provide promotional opportunities.”
Twenty-eight female correctional officers filed charges with the Equal Employment Opportunity Commission (EEOC) challenging MDOC’s female-only job assignment and transfer policies. The EEOC’s Detroit Field Office, in the Indianapolis District, investigated the charges and found reasonable cause to believe that MDOC discriminated against these female correctional officers and other female correctional officers employed at Huron Valley on the basis of sex. After unsuccessful efforts at conciliation, the EEOC referred the charges to the Justice Department.
“Making decisions on job assignments and transfers based on a person’s sex violates federal law and is completely unacceptable,” said Director Gail Cober of the EEOC’s Detroit Field Office. “The EEOC will continue to work in partnership with the DOJ to ensure that public employers follow the law and we will continue to fight for victims of sex discrimination to ensure that everyone has equal opportunity in the workplace.”
The case was brought by Trial Attorneys Carol Wong, Lisa Wilson Edwards and Taryn Wilgus Null of the Civil Rights Division’s Employment Litigation Section and Assistant U.S. Attorney Sarah Karpinen of the Eastern District of Michigan. Enforcement of federal employment discrimination laws is a top priority for the Justice Department. Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
MDOC Complaint
Judge Sentences Pittsburgh Man with Heroin and Guns to 10 Years in PrisonRead the Press Release
PITTSBURGH – Deontay Kendricks of Pittsburgh, Pa., was sentenced to 120 months in prison for distribution of heroin and possession of a firearm in furtherance of a drug trafficking crime, United States Attorney David J. Hickton announced today.
Kendricks, 27, was sentenced in Pittsburgh by United States District Judge Arthur J. Schwab. Judge Schwab also imposed a three-year term of supervised release to follow the federal prison sentence. Kendricks agreed to the sentence that was imposed as part of his plea agreement.
On Feb. 18, 2015, Kendricks was caught in possession of 10 bricks of heroin and four pistols, some of which were loaded and one of which had an obliterated serial number. He possessed the bricks with the intent to distribute them and he possessed the pistols to further his drug trafficking. His possession of the bricks and the pistols was part of a course of conduct that he continued even after Feb. 18, 2015, that involved over 100 grams of heroin.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pittsburgh Bureau of Police and the Drug Enforcement Administration conducted the investigation leading to the convictions and sentence in this case.
Inmate Sentenced for Directing Sophisticated Tax Scheme from State PrisonRead the Press Release
ABINGDON, VIRGINIA – United States Attorney John P. Fishwick Jr. announced the sentence today of a Virginia man who, while incarcerated in Tennessee state prison, organized and participated in a scheme to defraud the Internal Revenue Service.
David Witt, 36, of Jonesville, Virginia, pled guilty earlier this year in Federal Court to one count of making false, fictitious or fraudulent claims and one count of conspiring to defraud the United States Government in respect to claims. Last week, Witt was sentenced to 96 months in Federal Prison and three years of supervised release. In addition, Witt was ordered to pay $67,356 in restitution.
A co-defendant in the case, William Ziehler, was sentenced to 51 months in federal prison on related charges earlier this month. Tommy Witt, another co-defendant, was sentenced to 30 months in federal prison for his role in the conspiracy.
“Law enforcement will investigate and prosecute anyone who attempts to undermine the integrity of our tax system,” United States Attorney John P. Fishwick Jr. said today. “This prosecution should serve as an example, if you defraud the United States you will be held accountable.”
According to evidence presented in District Court by Special Assistant United States Attorney Kevin Jayne, Witt, and others, participated in a sophisticated conspiracy to defraud the federal government. The scheme began when Witt, at the time an inmate in a Tennessee state prison, gathered personally identifiable information (including birth dates and social security numbers) belonging to other inmates, which he then used that information to complete Internal Revenue Service (IRS) Form 1040s. These Form 1040s contained false information, including false addresses outside of prison and false claims that the inmates were due a tax refund based on wages never earned by those inmates. Subsequently, these Form 1040s were sent to persons outside of the prison who then forwarded the Form 1040s to the IRS for processing. Based on these Form 1040s, the IRS issued tax refund checks in the names of these inmates and sent the checks to addresses associated with Witt’s accomplices in the scheme. Many of these tax refund checks were cashed at banks throughout Southwest Virginia by persons using fraudulent power-of-attorney forms. Return payment was made to Witt and others by use of electronic transfers, such as MoneyGram, and by other means.
The investigation of the case was conducted by the Internal Revenue Service Criminal Investigation and United States Postal Inspection Service. Special Assistant United States Attorney Kevin Jayne prosecuted the case for the United States.
Independence Man Charged with Possessing Firearm Stolen from Police Officer's HomeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was charged in federal court today with illegally possessing a firearm that had been stolen during the burglary of a Belton, Mo., police officer’s residence.
Paul M. Leach, 35, of Independence, was charged with being a felon in possession of a firearm in a criminal complaint filed in the U.S. District Court in Kansas City, Mo.
Today’s criminal complaint alleges that Leach was in possession of a Sig Sauer .45-caliber semi-automatic handgun on June 12, 2016. According to an affidavit filed in support of the criminal complaint, the handgun was the duty weapon issued to a police officer at the Belton Police Department, which was reported as stolen on Dec. 10, 2015, in a residential burglary in Lee’s Summit, Mo.
Independence police officers were called to the intersection of E. 51st Street South and Cottage Street in Independence on the afternoon of Sunday, June 12, 2016, in response to a report of a suspicious person armed with a gun and allegedly under the influence of illegal drugs. They made contact with Leach, who was seated in a chair near the garage door of a residence on Cottage Street.
Leach fled on foot, the affidavit says, running across the lawn and down the road. As he was being pursued, the affidavit says, officers saw him reach into the waistband area of his pants and remove the loaded Sig Sauer handgun. Leach allegedly discarded the firearm into a shrub or bush. He was pursued a short distance from where he was observed abandoning the firearm, the affidavit says, and was taken into custody.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Leach has three prior felony convictions for aggravated battery and kidnaping and a prior felony conviction for robbery. Leach is currently under the supervision of the Kansas Department of Corrections, Office of Probation and Parole.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Hancock County man pleads guilty to unlawful possession of a stolen firearmRead the Press Release
WHEELING, WEST VIRGINIA – Brandon S. Moore, 24, of New Cumberland, West Virginia, pled guilty today to a federal firearms charge, United States Attorney William J. Ihlenfeld, II, announced.In June 2015, Moore stole a Glock pistol, model 22, .40 caliber from a residence in Brooke County, West Virginia. Moore pled guilty today to one count of “Possession of a Stolen Firearm.” He faces up to 10 years in prison and a fine of 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 Randy J. Bernard prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the West Virginia State Police, the Brooke County Sheriff’s Department, and the Weirton Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Guilty Plea and Sentence for Woman Charged with Defacing Rock Formations in 7 National Parks in Western U.S.Read the Press Release
FRESNO, Calif. — Casey Nocket, 23, of San Diego, pleaded guilty today to seven misdemeanor counts of damaging government property. U.S. Magistrate Judge Sheila K. Oberto sentenced Nocket two years’ probation and 200 hours of community service, Acting United States Attorney Phillip A. Talbert and National Park Service Chief of Law Enforcement Charles Cuvelier announced.
In addition, Judge Oberto ordered Nocket banned from lands administered by the National Park Service, the U.S. Forest Service, the Bureau of Land Management, and the Army Corps of Engineers during the period of probation. A hearing to determine the amount of restitution Nocket is required to pay will be held at a later date.
According to court documents, over a 26-day period, Nocket damaged rock formations within seven national parks by drawing or painting on them using acrylic paints and markers. She posted numerous pictures of the drawings on her social media accounts. The parks are in four federal districts: the Eastern District of California, the District of Oregon, the District of Utah, and the District of Colorado.
Acting U.S. Attorney Talbert stated, “The defendant’s defacement of multiple rock formations showed a lack of respect for the law and our shared national treasures. The National Park Service has worked hard to restore the rock formations to their natural state, completing clean-up efforts in five of the seven parks. They expect to complete cleanup efforts at Death Valley in the near future and at Crater Lake as weather permits.”
“This case illustrates the important role that the public can play in identifying and sharing evidence of illegal behavior in parks,” said Charles Cuvelier, chief of law enforcement for the National Park Service. “It is clear that the public cares deeply for the special places that the National Park Service represents, and the resolution of this case sends a message to those who would consider such inappropriate behavior going forward.”
The damage took place as follows:
-
September 23, 2014, Death Valley National Park in the Eastern District of California at the summit of Telescope Peak.
-
September 12, 2014, Rocky Mountain National Park in the District of Colorado
-
September 13, 2014, Colorado National Monument in the District of Colorado on the Monument Canyon Trail.
-
September 15, 2014, Canyonlands National Park in the District of Utah on the Neck Spring Trail.
-
September 17, 2014, Zion National Park in the District of Utah.
-
October 2, 2014, Yosemite National Park in the Eastern District of California at the beginning of the John Muir Trail.
-
October 7, 2014, Crater Lake National Park in the District of Oregon.
This case was the product of an investigation by the National Park Service. Assistant United States Attorney Laurel J. Montoya prosecuted the case.
-
Gladstone Man Sentenced for CounterfeitingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Gladstone, Mo., man was sentenced in federal court today for making and passing more than $15,000 in counterfeit money.
Robert Q. Liggans, also known as “GQ or “G,” 23, of Gladstone, was sentenced by U.S. District Judge Dean Whipple to four years and two months in federal prison without parole. The court also ordered Liggans to pay $13,850 in restitution.
On Feb. 2, 2016, Liggans pleaded guilty to leading a conspiracy to manufacture, possess and pass counterfeit money from Sept. 23, 2013, to Jan. 15, 2015.
Conspirators used computer software and hardware, printers, scanners, paper, ink, and other materials to use and to make counterfeit $20 and $100 bills. They made purchases with the counterfeit money at various retailers (more than 10 Target stores, Plato’s Closet, Dollar Stores, fireworks stands and others). After making the purchases, conspirators later returned the items to obtain cash and/or gift cards.
Liggans admitted that, on 33 occasions, he passed or possessed a total of $13,850 in counterfeit money. Liggans also admitted that he passed at least $1,150 in counterfeit money at additional businesses, but they are not identifiable and therefore no subject to restitution payment. Liggans admitted that his total counterfeit activity was in excess of $15,000.
Liggans was released on bond on June 12, 2015, but failed to appear for his arraignment on June 24, 2015. He was arrested in Kansas on Aug. 13, 2015, during a high speed chase in a stolen vehicle and has been in federal custody since that date.
This case was prosecuted by Senior Litigation Counsel Gregg Coonrod. It was investigated by the U.S. Secret Service, the Kansas City, Mo., Police Department and the Independence, Mo., Police Department.
Founder and Portfolio Manager of Canarsie Capital, LLC, Sentenced in Manhattan Federal Court for Securities FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that OWEN LI was sentenced to probation for securities fraud and making a false statement, stemming from LI’s lies to investors and the U.S. Securities and Exchange Commission (“SEC”) regarding the performance of Canarsie Capital, LLC (“Canarsie”) – a hedge fund LI had founded and for which he acted as portfolio manager – which collapsed in January 2015. LI pled guilty on December 16, 2015, before United States Magistrate Judge Frank Maas. U.S. District Judge Robert W. Sweet imposed today’s sentence.
According to the Information, other documents filed in the case, and statements made in open court:
LI founded Canarsie in January 2013 with approximately 10 investors and $16.55 million in assets under management. By the end of 2013, Canarsie had approximately $47.75 million in assets under management, and LI earned over $2.2 million that year. Li raised another $16.8 million in 2014, and at the time of its collapse in January 2015, Canarsie had approximately 41 investors and $56.8 million in assets under management.
According to Canarsie’s offering memorandum (the “Offering Memorandum”), which was provided to investors, Canarsie’s portfolio would be balanced and risk would be managed “through limits on position sizing and market exposure.” Generally no position, whether long or short, would exceed 10% of Canarsie’s assets.
LI Reported Fictitious Trades to His Prime Broker
Canarsie reported Canarsie’s trades daily to its prime broker. At the end of each trading day, the prime broker would match Canarsie’s trade report against trade reports submitted by executing brokers who had filled Canarsie’s orders that day. Mismatches of information concerning trades reported by Canarsie and the executing brokers were considered “trade breaks.”
In March and early April 2014, LI began reporting fictitious “sell” trades to Canarsie’s prime broker at that time (“Prime Broker-1”) as if Canarsie had executed the trades, when, in fact and as LI knew, Canarsie had never actually sold the shares in question. On April 9, 2014, Prime Broker-1 discovered multiple instances from March and early April 2014 in which LI had caused Canarsie to report trades that had not in fact been executed. Specifically, Prime Broker-1 noted that LI had engaged in a pattern of reporting sell trades, particularly in shares of Facebook, Inc. (“Facebook”), to Prime Broker-1, and subsequently canceling the sell trades before the settlement date.
As LI knew, Prime Broker-1 calculated Canarsie’s margin requirement on the basis of trade date, not settlement date. LI’s pattern of booking and canceling “sell” trades temporarily created the false appearance that the long positions in Facebook and other stocks (and thus the leverage in the account) were diminishing. This allowed Canarsie to (a) avoid a margin call from Prime Broker-1, and (b) avail itself of greater leverage than Prime Broker-1 ordinarily would have extended to Canarsie. Therefore, on April 1, 2014, Canarsie’s account was levered approximately eight times, in that it was employing approximately $377 million of margin with equity of approximately $45 million. In addition, LI had accumulated a position in Facebook that exceeded 10% of Canarsie’s total portfolio, in violation of the risk-management parameters set forth in the Offering Memorandum.
In light of those trade breaks, Prime Broker-1, among other things, forbid Canarsie from using margin and insisted that Canarsie hire a second prime broker, suggesting that eventually the second prime broker would become Canarsie’s sole prime broker in lieu of Prime Broker-1. In a meeting with a prospective second prime broker (“Prime Broker-2”), LI did not inform Prime Broker-2’s representatives that (a) Prime Broker-1 had told Canarsie to find a second prime broker, (b) Prime Broker-1 had withdrawn margin, and (c) if Canarsie established a relationship with Prime Broker-2, Prime Broker-2 would be, in essence, the sole prime broker for Canarsie. In August 2014, Canarsie established a prime brokerage account with Prime Broker-2, and conducted virtually all of its trading through that account from that point on.
LI’s Misstatements to Investors About Canarsie’s Performance
At or around the end of each month, LI and others prepared and sent emails to Canarsie’s investors describing the fund’s performance. Those emails contained an estimated net asset value (“NAV”) and monthly return. Canarsie’s administrator (the “Administrator”) emailed each investor a monthly account statement showing the value of his or her investment and Canarsie’s NAV. On at least two occasions, the estimated NAV supplied by LI and emailed to investors by Canarsie differed materially from the Administrator’s NAV, which appeared in the investors’ monthly statements.
In April 2014, Canarsie suffered approximately $13.6 million in losses and was down approximately 23% from the beginning of the month. However, on or about April 30, 2014, LI falsely told at least one investor that performance was down only nine percent. LI then intentionally delayed approving the correct April NAV, as calculated by the Administrator, because it was significantly worse than the NAV he had reported to investors at the end of April, and lied to investors about the reason for the delayed monthly statement and the reason for the discrepancy.
In December 2014, LI again delayed a monthly statement, this time for November 2014. LI did not approve the preliminary November NAV because it showed losses the fund had incurred toward the end of November and trades that LI had deliberately broken and later canceled or amended. Despite repeated requests from the Administrator, LI delayed approving the November NAV until January 8, 2015, falsely telling the Administrator that he had been in the hospital for a week. LI also falsely told investors who inquired about the November statements that they were late because of staffing changes at the Administrator and the Administrator’s focus on preparing for the annual audit.
On January 9, 2015, LI instructed the Administrator to release the November 2014 statements to investors. LI forwarded the statements to others at Canarsie, informing them that the fund’s November 2014 performance had been worse than the estimate Canarsie had provided to investors. LI falsely told others at Canarsie that the discrepancy was due to a residual amount of money transferred from Canarsie’s account at Prime Broker-1 to the account at Prime Broker-2 on or about November 28, 2014, which was not credited to the account at Prime Broker-2 until December 2014.
LI Misled the SEC Examination Staff
On November 5, 2014, members of the SEC’s Office of Compliance Inspections and Examinations Staff (the “Examination Staff”) conducted a phone interview of LI and others at Canarsie. Among other things, the Examination Staff asked why Canarsie appeared to be moving away from Prime Broker-1 as its prime broker, and conducting virtually all trading activity with Prime Broker-2. LI responded that he had contacts at Prime Broker-2 from his prior employment and certain harder-to-cover stocks were easier to locate through Prime Broker-2 than through Prime Broker-1. LI concealed from the Examination Staff that Prime Broker-1 (a) had withheld margin from Canarsie in or about April and May 2014, and (b) suggested that Canarsie move its prime brokerage relationship elsewhere.
On December 3, 2014, the Examination Staff again interviewed LI, and asked about the Facebook trades canceled in or about April 2014. LI responded that he had assumed that the brokers executed those orders, and had reported those trades to Prime Broker-1 as executed trades based on that assumption. In fact, LI never placed or transmitted those orders to executing brokers. LI concealed from the Examination Staff that he had fraudulently reported those trades as executions to Prime Broker-2 in an effort to conceal the extent of leverage in the fund and the size of the position in Facebook.
LI Caused Catastrophic Losses in the Fund
In December 2014 and January 2015, LI concealed from investors and others at Canarsie the fact that he was trading the fund in violation of the investment mandates in the Offering Memorandum and that, in doing so, he had placed the fund at excessive risk of catastrophic loss.
The fund’s net account value on or about December 31, 2014, was approximately $59.7 million. Beginning in early January 2015, LI began liquidating the equity long positions in the account – resulting in approximately $18 million in losses – and eliminated all short positions in the fund. At the same time, LI bought short-dated long positions in market index options. The result was an entirely long, unhedged portfolio.
On January 16, 2015, index options prices moved against Canarsie’s positions, resulting in losses of approximately $39 million. At the end of the day on January 16, the account was left with no equity, short, or options positions. As a result of LI’s trading, the fund lost substantially all of its assets between on or about December 31, 2014, and on or about January 16, 2015.
* * *
LI, 30, was also ordered to pay restitution, forfeit $690,000, and pay a $100 special assessment.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the SEC for its assistance.
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’s 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 Michael Ferrara is in charge of the prosecution.
Former State Senator Ronald Calderon Agrees to Plead Guilty to Federal Corruption Charge; Admits Receiving Tens of Thousands of Dollars in BribesRead the Press Release
LOS ANGELES – Former California State Senator Ronald S. Calderon has agreed to plead guilty to a federal corruption charge and admits in a plea agreement filed today that he accepted tens of thousands of dollars in bribes in exchange for performing official acts as a legislator.
Ron Calderon, 58, of Montebello, agreed to plead guilty to one count of mail fraud through the deprivation of honest services to resolve a case against him that was filed in 2014. The plea agreement comes several weeks before Ron Calderon was scheduled to go on trial on charges contained in a 24-count indictment.
In the plea agreement, Ron Calderon admits accepting bribe payments from the owner of a Long Beach hospital who wanted a law to remain in effect so he could continue to reap millions of dollars in illicit profits from a separate fraud scheme and from undercover FBI agents who were posing as independent filmmakers who wanted changes to California’s Film Tax Credit program.
Ron Calderon’s brother, Thomas M. Calderon, 62, also of Montebello, a former member of the California State Assembly who became a political consultant, pleaded guilty last Monday to a federal money laundering charge for allowing bribe money earmarked for his brother to be funneled through his firm.
“Public officials who engage in corrupt behavior threaten the basic fabric of our democracy,” said United States Attorney Eileen M. Decker. “The Calderons have acknowledged their roles in a bribery scheme in which money for them and their families alone was driving legislation that would have benefited only a few individuals.”
“My office will not tolerate pay-to-play corruption by public officials and their associates,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “While in office, Ron Calderon and others profited handsomely when bribe money was accepted and laundered, and I’m gratified that he has chosen to take responsibility for his actions.”
Ron Calderon is expected to plead guilty to the mail fraud charge this week before United States District Judge Christina A. Snyder.
In the plea agreement filed today, Ron Calderon admitted participating in a bribery scheme involving two areas of legislation and the hiring of a staffer at the behest of those paying bribes.
In the first part of the bribery scheme, Ron Calderon took bribes from Michael Drobot, the former owner of Pacific Hospital in Long Beach, which was a major provider of spinal surgeries that were often paid by workers’ compensation programs. (The spinal surgeries are at the center of a massive healthcare fraud scheme that Drobot orchestrated and to which he previously pleaded guilty. Ron Calderon is not implicated in the healthcare fraud scheme.) Drobot was a client of Tom Calderon’s political consulting firm.
California law known as the “spinal pass-through” legislation allowed a hospital to pass on to insurance companies the full cost it had paid for medical hardware it used during spinal surgeries. As Drobot admitted in court, his hospital exploited this law, typically by using hardware that had been purchased at highly-inflated prices from companies that Drobot controlled and passing this cost along to insurance providers. Drobot bribed Ron Calderon so that he would use his public office to preserve this law that helped Drobot maintain a long-running and lucrative healthcare fraud scheme, which included Ron Calderon asking a fellow senator to introduce legislation favorable to Drobot. The payments from Drobot came in the form of summer employment for Ron Calderon’s son, who was hired as a summer file clerk at Pacific Hospital and received a total of $30,000 over the course of three years, despite the son doing little actual work at the hospital.
In another part of the bribery scheme, Ron Calderon accepted bribes from people he thought were associated with an independent film studio, but who were in fact undercover FBI agents. In exchange for the payments – including $3,000 monthly payments to Ron Calderon’s daughter for services she never provided – Ron Calderon agreed to support an expansion of a state law that gave tax credits to studios that produced independent films in California. The Film Tax Credit applied to productions of at least $1 million, but, in exchange for bribes, Ron Calderon agreed to support new legislation to reduce this threshold to $750,000, according to the plea agreement.
Ron Calderon took several official actions with respect to reducing the threshold for the Film Tax Credit. Ron Calderon signed a letter on his official Senate letterhead indicating that he would propose legislation lowering the threshold, introduced a “spot bill” he told an undercover agent would be used to propose such legislation, and promised that he would vote in favor of that proposed legislation.
In addition to the payments to his daughter for work she did not do, Ron Calderon had one of the undercover agents make a $5,000 payment toward his son’s college tuition and a $25,000 payment to Californians for Diversity, a non-profit entity that Ron Calderon and his brother used to improperly pay themselves.
As part of the agreement with the undercover agents, Ron Calderon performed official acts that led to the hiring of another undercover agent as a staffer in his district office at an annual salary of $45,105.
Ron Calderon “knowingly concealed his bribery scheme from the public by submitting a false Statement of Economic Interest, California Form 700, to the California Fair Political Practices Commission, which failed to disclose the money and other financial benefits defendant he had received from Drobot” and the undercover agents, Ron Calderon admitted in his plea agreement.
As part of Ron Calderon’s plea agreement, federal prosecutors have agreed not to seek a sentence of more than 70 months in federal prison, a term that is expected to be within the United States Sentencing Guidelines advisory range for this case. However, Judge Snyder would not be bound by any sentencing recommendation and could sentence Ron Calderon up to statutory maximum sentence of 20 years in federal prison.
Tom Calderon pleaded guilty last week to money laundering and admitted that he agreed to conceal bribe payments for his brother from the two undercover FBI agents by having the money go through his company, the Calderon Group. Tom Calderon allowed payments to be made to the Calderon Group “to conceal and disguise the fact that the money represented the proceeds of bribery,” according to his plea agreement.
Tom Calderon “deposited the $30,000 bribe payment from [the undercover agent] into the Calderon Group’s bank account and then wrote a check for $9,000 from
the Calderon Group’s bank account to Ronald S. Calderon’s daughter,” Tom Calderon admitted in his plea agreement.
“Tom Calderon provided a conduit for illicit bribery payments and played a key role in hiding corrupt activities from the voting public,” said United States Attorney Decker.
As part of Tom Calderon’s plea agreement, prosecutors have agreed to recommend a sentence of no more than one year in prison, which is expected to be within the United States Sentencing Guideline advisory range for the offense. However, when Judge Snyder sentencing Tom Calderon of September 12, she could impose a term of up to 20 years in prison, which is the statutory maximum penalty for the money laundering count.
“The Calderon brothers shamelessly defrauded the citizens of California to their right to honest services through an illicit bribery scheme," stated IRS Criminal Investigation’s Acting Special Agent in Charge Anthony J. Orlando. “IRS CI tirelessly untangled the web of fraudulent transactions that lead to these corrupt individuals being held accountable for their actions.”
The investigation into the Calderons was conducted by the Federal Bureau of Investigation and IRS Criminal Investigation. The case is being prosecuted by Assistant United States Attorneys Douglas M. Miller and Mack E. Jenkins of the Public Corruption and Civil Rights Section.
Former St. Joseph School Supeintendent Pleads Guilty to $662,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former superintendent of the St. Joseph School District and former president of the Board of Education pleaded guilty in federal court today to a fraud scheme in which he received more than $662,000 in pension payments to which he was not entitled.
Danny L. Colgan, 70, of St. Joseph, Mo., waived his right to a grand jury and pleaded guilty before U.S. District Judge Dean Whipple to a federal information that charges him with one count of wire fraud.
“Today’s criminal felony conviction brings to conclusion an extensive, thorough investigation into fiscal wrongdoing in the St. Joseph School District,” Dickinson said. “I commend the professionalism and perseverance of the FBI agents and prosecution team involved in this investigation. We do not anticipate charges against any additional defendants in the future.”
Under the terms of the plea agreement, Colgan will be sentenced to one year and one day in federal prison. He must pay $662,660 in restitution prior to his sentencing hearing (which has not yet been scheduled). Colgan was released on bond.
Colgan was the superintendent of the St. Joseph School District from July 1, 1992, until his retirement on Dec. 31, 2005. Colgan was entitled to retirement benefits from the Public School and Education Employee Retirement Systems of Missouri (PSRS) with the amount of the retirement benefits based upon his highest consecutive three years of reported salary.
By pleading guilty today, Colgan admitted that he caused others to falsely report his salary to the PSRS in order to increase his retirement benefits. Colgan knew that the salary figures he caused the school district to submit to PSRS on his behalf included fringe benefits and other payments to Colgan that were not eligible to be counted as salary under state statutes.
This fraud scheme began during the 1997-98 school year and lasted for eight years, until Colgan’s retirement. Colgan’s retirement benefits were calculated by using the amounts reported by the school district over the final three-year period before he retired.
During that final three-year period, the school district falsely reported that Colgan’s salary totaled $586,030. In reality, his salary totaled $343,286 – a difference of $242,744. As a result of the false statements to the PSRS, the school district made excess payments in the amount of $14,652 to the PSRS from 2003 through 2005, and Colgan was paid excess benefits that totaled $677,313 over a 10-year period.
Colgan’s salary reported for his final three years as school superintendent improperly included the following:
-
Car Allowance/Travel Stipend: The $9,600 car allowance/travel stipend was a fringe benefit that was ineligible for retirement salary calculation purposes;
-
Family Insurance Premiums: The family insurance benefits/premiums paid by the district of $5,225, $5,603, and $6,258 were fringe benefits that were ineligible for retirement salary calculation purposes;
-
District Contribution to Taxable Annuity: The district payment for the school year 2004-2005 of $25,000 to purchase a taxable annuity for the superintendent was ineligible for retirement salary calculation purposes;
-
“District Vehicle” Payments: In the final three years, the school district reported “District Vehicle” payments of $11,300, $11,300, and $28,975. The “District Vehicle” payments were separate from the $800 per month car allowance payments (described above). The “District Vehicle” payments were fringe benefits that were ineligible for retirement salary calculation purposes; and
-
Unused Vacation Payment: An unused vacation payment in June 2005 of $10,820 was a fringe benefit that was ineligible for retirement salary calculation purposes.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI.
-
Former Fugitive Sentenced to Prison for Florida Multimillion-Dollar Health Care Fraud SchemeRead the Press Release
A Cuban national was sentenced to 37 months in prison today for his role in a multimillion-dollar health care fraud scheme in the greater Tampa, Florida, area.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Ubert Guillermo Rodriguez, aka Ubert Guillermo Rodriguez Sigler, 47, pleaded guilty to conspiracy to commit health care fraud in March 2016. Rodriguez had been a fugitive following his indictment in 2013 until his arrest in October 2015. U.S. District Judge James D. Whittemore of the Middle District of Florida imposed today’s sentence and also ordered Rodriguez to pay $918,402 in restitution and to forfeit the same amount.
Rodriguez was the president and owner of G.R. Services Equipment & Supplies Inc., a Largo, Florida, company that purported to provide durable medical equipment to Medicare beneficiaries. Rodriguez admitted that from May 2013 through July 2013, his company submitted approximately $2,579,695 in false and fraudulent claims to Medicare seeking reimbursement for durable medical equipment not legitimately prescribed by doctors and not provided to beneficiaries. For example, Rodriguez’s company sought reimbursement for thousands of dollars of negative pressure wound therapy electrical pumps and sterile collagen dressings purportedly provided to Medicare beneficiaries in May and June 2013 that were not, in fact, legitimately prescribed by doctors or provided to beneficiaries. Federal law enforcement agents previously executed a seizure warrant on Rodriguez’s company’s bank account, resulting in the seizure of approximately $243,339 in proceeds of the health care fraud scheme.
HHS-OIG and the FBI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Middle District of Florida. Fraud Section Senior Trial Attorney Christopher J. Hunter prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to www.stopmedicarefraud.gov.
Former Chief Administrative Law Judge Pleads Guilty to Conspiracy to Retaliate Against InformantRead the Press Release
A former social security Chief Administrative Law Judge pleaded guilty in federal court today for conspiring to retaliate against a former employee of the Social Security Administration (SSA) who provided information regarding potential corruption and fraud to federal investigators.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division; Special Agent in Charge Howard S. Marshall of the FBI’s Louisville, Kentucky, Field Division; Special Agent in Charge Tracey D. Montaño of the Internal Revenue Service-Criminal Investigations (IRS-CI) Nashville, Tennessee, Field Office; and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG) Atlanta Regional Office made the announcement.
Charlie Paul Andrus, 66, of Huntington, West Virginia, pleaded guilty before U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky to a one-count information charging him with conspiracy to retaliate against an informant. Andrus had been an administrative law judge with the SSA for nearly 28 years, where he was responsible for adjudicating claims for disability benefits on behalf of the SSA. In 1997, Andrus was promoted to the position of Chief Administrative Law Judge for the hearing office located in Huntington.
According to court documents, on May 19, 2011, federal agents went to the Huntington hearing office and began securing evidence and interviewing witnesses as part of an investigation into allegations of potential corruption and fraud at the hearing office purportedly committed by Administrative Law Judge David Black Daugherty and an attorney in Kentucky, Eric Christopher Conn. That same day, The Wall Street Journal published an article critical of the Huntington hearing office. Andrus admitted that the article was personally embarrassing, as it cast both him and the Huntington hearing office in a negative light. Because of the article and the criminal investigation, Andrus was demoted from his position as Chief Administrative Law Judge.
Andrus admitted that at the time of his demotion, he was aware that an SSA employee from the hearing office was meeting with investigators and relaying information about potential federal offenses. According to his plea agreement, Andrus met with Conn shortly after the article was published and the two devised and implemented a plan to discredit the informant. According to court documents, the plan involved filming the informant violating a program that allowed employees to work from home, with the hope that the informant would be terminated as a result. By pleading guilty today, Andrus admitted that he was aware that the SSA employee reported truthful information to federal investigators and that he wanted to retaliate against the employee by interfering with the employee’s employment and livelihood.
In a related case, Conn and Daugherty were charged in an 18-count indictment with conspiracy, fraud, obstruction, false statement and money laundering in connection with a scheme to fraudulently obtain more than $600 million in federal disability payments for thousands of claimants. That indictment included charges related to the conduct that forms the basis of Andrus’ guilty plea. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The SSA-OIG, FBI, IRS-CI and HHS-OIG investigated the case. Trial Attorney Dustin M. Davis and Special Trial Attorney Trey Alford of the Criminal Division’s Fraud Section and Trial Attorney Kristen M. Warden of the Criminal Division’s Asset Forfeiture and Money Laundering Section are prosecuting the case.
Florida Man Pleads Guilty to Multi-Million Dollar Investment Fraud ConspiracyRead the Press Release
SYRACUSE, NEW YORK –Bruce Kane, 61, of Fort Lauderdale, Florida, an accountant and former resident of Ithaca, New York, pled guilty today in Federal Court in Syracuse, New York, to an indictment charging him with conspiracy to commit wire fraud, announced United States Attorney Richard S. Hartunian and FBI Special Agent In Charge Andrew W. Vale. Kane faces a maximum term of imprisonment of twenty years, a maximum fine of $250,000, an order of restitution in the amount of over $10 million and a forfeiture money judgment of over $10 million. Sentencing is scheduled for October 7, 2016 in Binghamton, New York.
Kane is a certified public accountant who was the managing partner for Global Financial Fund 8, LLP, a company that solicited and received over $10 million from investors located throughout the United States, including residents of the Northern District of New York. As part of his guilty plea, Kane admitted that he misappropriated approximately $1.5 million of the investors $10 million for his own personal use and enjoyment. Kane admitted to using investor funds to buy a $59,000 boat, using more than $280,000 for his own credit card payments, and to using the funds to rent a waterfront condominium in Florida. In an effort to avoid detection and allow him to continue to divert money for his own use, Kane helped orchestrate the payment of phony “profit” distributions to investors in 2004 and 2005, which were merely a partial return of their principal investment. Further, from 2004 to 2013 Kane repeatedly assured the investors via e-mail that their investments were secure when he knew that was not the case.
Kane is the second defendant to plead guilty in this case. On February 19, 2016, Burton Greenberg, who previously pled guilty to these charges on November 9, 2015, in Federal Court in Fort Lauderdale Florida, was sentenced to 97 months imprisonment, ordered to pay restitution in the amount of over $10 million and ordered to pay a forfeiture money judgment of over $10 million.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Geoffrey Brown.
Federal Criminal Complaint Charges Dallas Man in U.S. Postal Carrier AssaultRead the Press Release
DALLAS — Korey Larkin, 26, of Dallas, Texas, was arrested last week on a federal criminal complaint stemming from the assault of a U.S. Postal Carrier, announced U.S. Attorney John Parker of the Northern District of Texas.
According to the affidavit filed with the complaint, on June 3, 2016 Larkin approached a United States Postal Service Letter Carrier on Al Patterson Drive in Dallas and inquired about a package. The following day Larkin approached the same carrier and again inquired about the package. When the mail carrier explained that the package had been delivered, Larkin argued that the package was not delivered then reached into his pocket and displayed what appeared to be a handgun, poked the carrier in the cheek and punched him in the face.
A complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the offense as charged is 25 years in federal prison and a $250,000 fine.
The U.S. Postal Inspection Service and the U.S. Postal Service - Office of Inspector General is investigating. Special Assistant U.S. Attorney Jennifer Bray is in charge of the prosecution.
# # #
Federal Court Bars Florida Man from Preparing Tax Returns for Others and Enters $1 Million Disgorgement JudgmentRead the Press Release
A federal court in Orlando, Florida, has permanently barred a Florida man from preparing tax returns for others and owning or operating a tax return preparation business, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced today.
The court also entered a $1 million judgment against Kerny Pierre-Louis of Windermere, Florida, on the United States’ claim for disgorgement of the proceeds he derived from preparing tax returns. The civil injunction and disgorgement judgment were signed by U.S. District Judge Anne C. Conway of the Middle District of Florida. Pierre-Louis agreed to entry of the injunction and disgorgement judgment, but did not agree to any of the facts alleged in the United States’ civil complaint.
In September 2014, the United States filed a civil injunction complaint against Pierre-Louis alleging that he and his employees prepared fraudulent tax returns for customers. The complaint alleged that return preparers in Pierre-Louis’s business targeted primarily low- to moderate-income customers with deceptive and misleading advertisements; prepared and filed fraudulent tax returns to increase their customers’ refunds; and profited through unconscionable, exorbitant and often undisclosed fees—all at the expense of their customers and the U.S. Treasury. According to the complaint, Pierre-Louis and his employees prepared federal tax returns on which they falsely claimed earned income and education credits, reported improper filing statuses, concocted phony businesses, claimed bogus income and expenses related to the non-existent businesses and fabricated job-related expenses. The complaint also named Jehoakim Victor and Lauri Rodriguez, allegedly former managers at Pierre-Louis’s tax preparation stores, as defendants. In February 2015, the court permanently enjoined Victor and Rodriguez from preparing tax returns for others and from owning or operating a tax return preparation business. Victor and Rodriguez agreed to entry of the injunction without admitting the allegations in the complaint.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Emporia Man Sentenced for Child PornographyRead the Press Release
WICHITA, KAN. - An Emporia man was sentenced Monday to six years in federal prison for distributing child pornography, Acting U.S. Attorney Tom Beall said.
Zachary E. Krueger, 33, Emporia, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted he distributed child pornography over the Internet using an encrypted peer-to-peer network. The investigation began with an Internet chat between Krueger and an undercover agent in Delaware. Krueger gave the agent a password to access and download files including images of prepubescent children engaged in sexual activities. Investigators traced Krueger’s IP address back to his home in Emporia.
Beall commended Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
District Man Sentenced to 42 Months in Prison for Causing New Year's Crash in Downtown WashingtonRead the Press Release
WASHINGTON – Malik Lloyd, 25, of Washington, D.C., was sentenced today to a total of 42 months in prison on charges of felony assault, destruction of property, and driving under the influence of alcohol or drugs stemming from a car crash early Jan. 1, 2016 in downtown Washington that caused significant injuries to at least three people, U.S. Attorney Channing D. Phillips announced.
Lloyd pled guilty on March 30, 2016, in the Superior Court of the District of Columbia, to three counts of assault with significant bodily injury, one count of destruction of property, and one count of driving under the influence of alcohol or a drug. In a separate case, Lloyd pled guilty on that same date to one count of unlawful possession of a firearm and one count of possession with intent to distribute cocaine.
The Honorable Zoe Bush sentenced Lloyd to 42 months in prison for the assault and destruction of property charges in connection with the Jan. 1, 2016 incident, as well as six months in prison for driving under the influence, and a 36-month prison term in the separate drug case. The sentences are to run concurrently. After his prison term, Lloyd will be placed on two years of supervised release.
According to the government’s evidence, on Jan. 1, 2016, at about 1:30 a.m., Lloyd was driving a Chrysler 200 northbound on 17th Street NW. He struck a Honda CRV that was also driving on 17th Street. After the collision, Lloyd drove away, making a right turn onto L Street NW and driving up onto the sidewalk in front of Barcode, a bar located in the 1600 block of L Street NW. The car that he was driving struck a tree box, tree, and several pedestrians on the sidewalk before finally striking a light pole on the north side of the sidewalk.
At least 13 people were assaulted as the result of the collision; some were injured directly by the vehicle and others indirectly by flying debris. At least three people incurred significant bodily injury that required immediate hospitalization or medical treatment. After the crash, while being treated by emergency medical personnel, Lloyd stated to the Metropolitan Police Department (MPD) that he had two glasses of champagne.
The MPD officer smelled an odor of an alcoholic beverage coming from Lloyd’s mouth and observed that Lloyd’s eyes were bloodshot. At Howard University Hospital, Lloyd admitted to drinking in the club and smoking marijuana prior to going there. At the time of testing, his alcohol concentration level was 0.20 grams of alcohol per 100 milliliters of blood, which is beyond the legal limit in the District of Columbia. There was also the presence of marijuana in his blood. Lloyd has been in custody since his arrest after the crash.
The other case stemmed from a search carried out by law enforcement on Oct. 30, 2014, of Lloyd’s residence in the 6000 block of Clay Street NE. According to the government’s evidence, MPD members found significant quantities of drugs inside the residence, including bottles of liquid PCP and multiple stashes of crack cocaine. MPD members also found drug paraphernalia, suggesting the packaging and distribution of narcotics, including multiple digital scales, cutting agents, and small “zip” bags used for street-level distribution of narcotics. MPD members also found boxes of ammunition and three firearms, including two semi-automatic handguns that were found in Lloyd’s bedroom.
In announcing the sentences, U.S. Attorney Phillips commended the work of those who investigated each of the cases for the Metropolitan Police Department, as well as the District of Columbia Office of the Attorney General, which handled the prosecution of the charge of driving while under the influence. He also expressed appreciation for the assistance provided by the DEA and the District of Columbia Fire and Emergency Medical Services Department. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tiffany Fogle and Victim/Witness Advocate Diana Lim. Finally, he commended Assistant U.S. Attorneys Katherine Earnest, Michael Romano, Thomas Saunders, and Anwar Graves prosecuted the cases.
Dallas Man Sentenced on Cocaine, Methamphetamine and Firearms ConvictionsRead the Press Release
DALLAS — A Dallas man was sentenced to a lengthy federal prison sentence following his guilty plea to drug distribution and firearms offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Jose Zambrano, Jr., age 24, was sentenced by U.S. District Judge David C. Godbey to serve a total of 130 months in federal prison. Zambrano pled guilty in December 2015 to one count of conspiracy to distribute and possess with intent to distribute controlled substances—cocaine and methamphetamine—and one count of possessing a firearm in furtherance of this drug trafficking crime.
According to documents filed in the case, on several occasions from February 2015, through June 2015, Zambrano sold cocaine and methamphetamine from his home in Dallas to undercover law enforcement officers. Further, evidence presented at sentencing showed that young children were sometimes present during these illegal drug sales, and that loaded firearms had been strategically placed throughout the home to protect Zambrano’s drugs and the money generated from drug sales.
On June 25, 2015, law enforcement officers arrested Zambrano and executed a search warrant at his residence, where they found approximately 200 grams of cocaine, more than $38,000 in drug-cash, and 7 firearms.
Dallas Police Department investigated the case and Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay prosecuted.
# # #
Convicted Felon Caught Hunting on National Park Service Land Pleads Guilty to Federal Firearm ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL A. PETRO, 44, of Watertown, pleaded guilty today in Hartford federal court to one count of unlawful possession of a firearm and ammunition by a convicted felon.
According to court documents and statements made in court, on the morning of December 10, 2015, a law enforcement officer was patrolling part of the Appalachian Trail in Kent, Conn. Posted signs in the area state that the land is National Parks Service property and is closed to hunting. The officer observed PETRO in camouflage gear holding a Savage Arms/Stevens Model 311, 12 gauge shotgun, which was breached open and unloaded. After the officer asked PETRO where the shotgun shells were and PETRO denied having any, the officer and her canine located two 12 gauge shotgun shells under fallen leaves approximately 20 yards away from where PETRO was standing. A subsequent search of PETRO’s jacket revealed two additional shotgun shells.
PETRO’s criminal history includes a felony conviction for assault. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
PETRO is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on September 14, 2016, at which time he faces a maximum term of imprisonment of 10 years and a fine up to $250,000.
PETRO is in state custody on unrelated charges.
This matter is being investigated by the U.S. Fish and Wildlife Service and the Environmental Conservation Police of the Connecticut Department of Energy and Environmental Protection, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Hal Chen.