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13 June 2016
Chief Financial Officer of Educational Services Company Admits Tax Crimes Resulting in $1.4 Million Tax LossRead the Press Release
TRENTON, N.J. - A Pottersville, New Jersey, man today admitted filing a false tax return and evading corporate taxes of American Tutor Inc., a company that offered supplemental educational services to New Jersey school districts, U.S. Attorney Paul J. Fishman announced.
James Wegeler, 73, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to one count of corporate tax evasion and one count of aiding and assisting in the filing of a false tax return as charged in the information filed today.
According to documents filed in this case and statements made in court:
Wegeler was a certified public accountant who served as the vice president and chief financial officer of American Tutor. In 2013, Wegeler filed a return on behalf of American Tutor that contained materially false information in order to reduce American Tutor’s tax liability. Wegeler intentionally inflated American Tutor’s business expenses by claiming that it paid wages, tips and other compensation to its employees above and beyond what it had actually paid during the tax year 2012.
In addition, in 2011, Wegeler intentionally prepared a fraudulent tax return for an individual taxpayer that did not include substantial income the taxpayer had earned in tax year 2010.
Wegeler admitted that his actions resulted in a total tax loss of $1,494,521 to the IRS.
The corporate tax evasion charge carries a maximum potential penalty of five years in prison. The charge of aiding and assisting in the filing of false tax returns carries a potential penalty of three years in prison. Both charges are punishable by a potential $250,000 fine. Sentencing is scheduled for Oct. 5, 2016.
U.S. Attorney Fishman credited special agents of the IRS, under the direction of Special Agent in Charge Jonathan D. Larsen, and special agents of the U.S. Department of Education, under the direction of Special Agent in Charge Brian M. Hickey, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney José R. Almonte of the U.S. Attorney’s Office Special Prosecutions Division.
Defense counsel: Thomas Calcagni, Newark, New Jersey
Chelan Washington Man Sentenced to 41 Months in Federal Prison for Attempted EscapeRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that that Bud Ray Brown, age 33 of Chelan, Washington, was sentenced today after having previously plead guilty to the felony charge of Attempted Escape. Senior United States District Judge Justin L. Quackenbush sentenced Brown to a 41-month term of imprisonment, to be served consecutive to an existing 180-month sentence from 2013 for a federal firearms violation, and to be followed by a 1-year term of court supervision upon release from federal prison.
According to the information disclosed during court proceedings in this case, on August 19-20, 2015, Brown attempted to escape from his jail cell located on an upper floor of the Spokane County Jail after breaching his jail cell window and after removing the window frame and glass. Brown had also used a tool to chip away at the concrete surrounding the window frame in an attempt to enlarge the actual window opening. Brown had deployed a sturdy rope out of his jail cell window which was braided/woven together using sheets/linens and which was tied off on a metal bunk bed in his cell. Brown’s attempt to escape was detected after persons below reported seeing debris (a mattress, glass and metal) and with the sighting of a deployed makeshift rope dangling from an upper jail cell window. Officers also found a pair of pants crudely sewn together from a blanket lying on the ground below Brown’s cell near the other debris. At the time of his attempted escape, Brown was serving a 180-month federal sentence stemming from a 2013 firearms conviction and had been returned from federal prison and placed in the Spokane County Jail on a writ ad prosequendum to face a 2012 state charge.
Michael C. Ormsby said “This attempt to escape from the Spokane County Jail was striking and brazen and fortunately it was detected before the Defendant could further damage the jail or succeed in his escape efforts. The consecutive nature of this sentence will certainly help in deterring others from making similar attempts to escape from jail. My office commends the collaborative investigation seen in this case as shared by Spokane County Detention Services, the Spokane County Sheriff’s Office, the U.S. Marshals Service, and the FBI.”
The investigation was conducted by the U.S. Marshals Service, the FBI, the Spokane County Sheriff’s Office, and Spokane County Detention Services. This case was prosecuted by Jared C. Kimball, an Assistant U.S. Attorney for the Eastern District of Washington.
Charleston drug dealer sentenced to life in Federal prison for murdering witnessRead the Press Release
CHARLESTON, W.Va. – A Charleston man who murdered a witness was sentenced today to life in federal prison, announced Acting United States Attorney Carol Casto. Marlon Dewayne Dixon, 39, previously pleaded guilty to witness tampering by killing.
At approximately 3:00 a.m. on July 12, 2014, Dixon lured Branda Mae Delight Basham, the murder victim, to a secluded section of railroad track in Charleston near the 700 block of Breece Street. At gunpoint, Dixon forced Basham to admit working with police to make undercover purchases of heroin from him. He then repeatedly shot Basham with a 9 mm pistol, killing her. She was 22 years old. After the murder, Dixon went to a nearby residence on Madison Street where he cleaned himself and disposed of his clothing. The next day, police interviewed a local woman who identified the Madison Street residence where she had seen Dixon shortly before the time of the murder.
Detectives from the Charleston Police Department executed a search warrant at the Madison Street residence. Police seized video from a surveillance camera that recorded Dixon wiping down the front door of the residence and carrying away several bags. Detectives also seized a pair of Dixon’s shoes found at the residence. Basham’s DNA was recovered from bloodstains on the shoes.
On July 17, 2014, Dixon surrendered to Charleston Police. He waived his Miranda rights and confessed to killing Basham. He admitted that he intended to retaliate against Basham for cooperating with law enforcement and to prevent her from testifying against him.
At the time of the murder, Dixon had been previously convicted of several felony offenses. These include federal drug trafficking convictions in 1999 and 2006, and a Kanawha County conviction of malicious wounding in 2007.
“Branda Basham’s murder is a horrible tragedy and a stark reminder of the enormous cost of drug crime. I want the Basham family to know that the prosecutors and law enforcement who took part in this investigation join me in sending our deepest condolences,” said Acting United States Attorney Carol Casto. “Heroin and opioid trafficking has ravaged our community, which is why aggressively prosecuting violent drug dealers like Marlon Dixon, along with supporting treatment options for recovering addicts, remains a top priority for the U.S. Attorney’s Office and our law enforcement partners. It is also important to note the courage of citizens who came forward to provide crucial information that led to Dixon’s arrest and prosecution. We must all continue working together if we want to effectively fight the drug epidemic.”
This case was investigated by the Charleston Police Department, the Metropolitan Drug Enforcement Network Team, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Joshua Hanks is in charge of the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment to reduce gun crime in the United States by working with existing local programs targeting gun violence. This case was also prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities, including 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 pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Buffalo Man Sentenced on Marijuana ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Keith Goss, 47, of Buffalo, NY, who was convicted of attempted possession with intent to distribute 100 kilograms or more of marijuana, was sentenced to 60 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that on June 12, 2013, the defendant attempted to take possession of a crate which was to be delivered to an address on Fillmore Avenue in Buffalo after being shipped from Tucson, Arizona. The crate contained 315 pounds of marijuana valued in excess of $250,000. Law enforcement officers intercepted the crate of marijuana before it was delivered to the Fillmore Avenue address where the defendant was awaiting its arrival with his two sons. Goss had asked his sons, who were not aware of its contents, to pick up the package.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division and the Tonawanda Police Department, under the direction of Jerome C. Uschold III, with the assistance of the DEA Office in Nogales, Arizona.Bakersfield Man Sentenced to over 3 Years in Prison for Firearm OffenseRead the Press Release
FRESNO, Calif. — Bryson LaPaul Blair, 30, of Bakersfield, was sentenced today by United States District Judge Lawrence J. O'Neill to three years and 10 months in prison for being a felon in possession of a firearm and ammunition, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, on April 21, 2015, while investigating a shooting near an elementary school, Bakersfield police officers located a bullet-ridden vehicle at Blair’s residence that matched the description of one of the vehicles involved in the shooting. During the subsequent execution of a search warrant, officers found a stolen, loaded Russian assault weapon under Blair’s bed and 145 rounds of ammunition. Blair was previously convicted in Kern County of second degree robbery and was prohibited from possessing firearms and ammunition.
This case was the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Bakersfield Police Department. Assistant United States Attorney Karen A. Escobar prosecuted the case.
Arizona Man Sentenced to Federal Prison for Conspiracy and Distribution of Methamphetamine Following TrialRead the Press Release
BISMARCK - US Attorney Christopher C. Myers announced that on June 13, 2016, Rocky Thomas Mayfield, 31, of Goodyear, AZ., was sentenced before U.S. District Judge Daniel L. Hovland after having been convicted by a federal jury on February 25, 2016, of Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine; two counts of Possession with Intent to Distribute Methamphetamine; and one count of Possession of a Firearm by a Convicted Felon. Judge Hovland sentenced Mayfield to serve concurrent sentences of 20 years’ imprisonment on the three drug counts and a concurrent 10 years’ imprisonment on the firearm count.
In early 2015, Mayfield and his associates arranged for the delivery of methamphetamine from Arizona to the Williston, North Dakota, area. On Feb. 11, 2015, law enforcement officials conducted a traffic stop near Berthold, ND, where they discovered approximately one pound of methamphetamine in a car that Mayfield had rented. After executing a search warrant at a hotel in Minot, law enforcement officials discovered another ten pounds of methamphetamine, which was believed to be the largest methamphetamine seizure ever in the state of North Dakota at that time. If sold by the ounce, it would have had an approximate street value of $200,000-350,000.
The case was investigated by the Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Berthold Police Department, as well as members of the Ward County Narcotics Task Force, which includes law enforcement officials from the North Dakota Bureau of Criminal Investigation, the Ward County Sheriff’s Department, and the U.S. Border Patrol.
Assistant U. S. Attorney David Hagler and Special Assistant U.S. Attorney Jeremy Ensrud prosecuted this case.
Akron man convicted of extortion following weeklong trialRead the Press Release
A jury convicted an Akron man on five counts for related to an extortion plot, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Franklin D. Conley, 28, was convicted on one count of violating the Hobbs Act, three counts of use of a communication facility to facilitate a drug offense and one count of interstate communication with intent to extort following a weeklong trial. He was acquitted of one count of possession with intent to distribute heroin.
Conley and Patrick Griffin repeatedly threatened the victim and his family, beginning in February 2015, with serious physical harm or death if they were not given money or introduced to a source of illegal drugs, according to court documents and trial testimony.
Conley is scheduled to be sentenced on Sept. 29.
Griffin, 29, also of Akron, has pleaded guilty to his role in the crime and is awaiting sentencing.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorneys Teresa Riley and Robert Bulford
12 June 2016
Attorney General Loretta E. Lynch Statement on Orlando, Florida, Terrorist AttackRead the Press Release
Attorney General Loretta E. Lynch released the following statement regarding the terrorist attack in Orlando, Florida, early this morning:
“I have been briefed by Deputy Attorney General Sally Yates and FBI Director James Comey on the horrific terrorist attack in Orlando and will continue to receive updates on the situation. My thoughts and prayers are with the victims’ families during this very difficult time. The Department of Justice, including the FBI, the ATF, the National Security Division and the U.S. Attorney’s Office for the Middle District of Florida, is fully supporting the ongoing investigation. The Justice Department's Community Relations Service has been in contact with local authorities, community leaders and local working groups to offer any assistance as needed. Additionally, I will no longer participate in the U.S.-China Cyber Ministerial in Beijing and will travel back to Washington immediately to continue monitoring the developments.”
President Obama on the Tragic Shooting in Orlando
Statement from Vice President Biden on Mass Shooting in Orlando
10 June 2016
Youth Basketball Coach Indicted on Child Pornography Charges for Allegedly Enticing Boys to Engage in Sexually Explicit Photos and VideosRead the Press Release
CHICAGO — A youth basketball coach from Chicago has been indicted on federal child pornography charges for allegedly paying minor boys to be photographed and video-recorded while engaged in sexually explicit conduct.
BRADLEY J. AMES, 35, and a co-conspirator paid approximately $100 to $650 to the minor boys in return for being photographed and video-recorded while engaged in various sexual acts, according to the indictment. Ames and the co-conspirator then transmitted the photos and videos over the Internet, the indictment states.
The pair met most of the minors online after the co-conspirator set up a Facebook profile for a fictitious female named “Hannah,” and used it to encourage young males to share photos and information about themselves, according to the indictment. Ames then selected certain minors who had communicated with “Hannah” so that the co-conspirator could pursue sexually explicit photos and videos of them, the indictment states.
The six-count indictment was returned yesterday in federal court in Chicago. It charges Ames with one count of conspiracy to produce child pornography, four counts of producing child pornography, and one count of knowingly receiving child pornography.
Ames will be arraigned before U.S. Magistrate Judge Jeffrey T. Gilbert on June 15, 2016, at 1:45 p.m.
In addition to contacting children online, the indictment alleges that Ames identified at least one minor victim through a boy he met while coaching youth basketball. Ames provided the minor’s Facebook page to the co-conspirator to facilitate contacting the child, the indictment states. The indictment further alleges that Ames sometimes paid the co-conspirator to engage in sexually explicit conduct with the minors.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and James M. Gibbons, Acting Special Agent-in-Charge of the Chicago Office of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
The conspiracy and production counts are punishable by a minimum sentence of 15 years in prison and a maximum of 30 years, while knowingly receiving child pornography carries a minimum sentence of five years in prison and a maximum of 20 years.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Yusef Dale.
Indictment
York Woman Sentenced to Prison for Threatening A Federal Witness via Social MediaRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Mae Joy Harris, age 25, York, Pennsylvania, who previously pleaded guilty to making threatening interstate communications, was sentenced to four months in prison today by U.S. District Court Judge Yvette Kane in Harrisburg.
According to United States Attorney Peter Smith, the case arose out of a trial in September 2015 involving 12 defendants, known as Southside York gang members. The jury trial testimony included witnesses who were themselves charged criminally and who agreed to cooperate in the prosecution in exchange for favorable consideration in their own cases. One of the witnesses, J.B. aka “Boogie,” testified on October 5-6, 2015 as a government witness and implicated former associates in criminal activity. On October 6, 2015, Harris posted on her Facebook profile page under the name “Mae Elliot” and made threatening statements towards J.B. and his family as a consequence of J.B.’s testimony.
Harris was indicted by a federal grand jury in Harrisburg in November 2015, as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). She pleaded guilty in January 2016.
According to ATF, this is the first prosecution of a case in the Middle District of Pennsylvania it has had involving use of social media to threaten witnesses. The U.S. Attorney’s Office will prosecute all cases of threats to government witnesses in any form or media as a very high priority.
Judge Kane also ordered Harris to serve one year on supervised release following her prison sentence. Harris is to turn herself into the Federal Bureau of Prisons on July 11, 2016.
Assistant U.S. Attorney Chelsea Schinnour prosecuted the case.
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Virginia Music Volunteer Sentenced to 300 Months in Prison for Production of Child PornographyRead the Press Release
A Virginia man who served as a volunteer with the music program at Grace E. Metz Middle School in Manassas, Virginia, was sentenced today to 25 years in prison for production of child pornography, attempted coercion and enticement of a minor, and distribution and receipt of child pornography.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C., and Chief Douglas Keen of the Manassas City Police Department made the announcement.
David Alexander Battle II, 24, of Manassas, was sentenced by U.S. District Judge Claude M. Hilton of the Eastern District of Virginia, who also ordered Battle to serve 15 years of supervised release. Battle was convicted by a federal jury on March 10, 2016.
According to evidence presented at trial, Battle used his home computer to share images of child sexual exploitation via webcam on a chat website in April 2015. Battle also posed as a minor girl on another chat platform and chatted with minor boys, including two boys he personally knew, coercing and enticing them to send him sexually explicit images of themselves. The trial evidence also showed Battle’s laptop contained gigabytes of child sexual exploitation files.
HSI and the Manassas City Police Department investigated the case, with assistance from the Herndon, Virginia, Police Department and the Northern Virginia/Washington, D.C., Internet Crimes Against Children Task Force. Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jay Prabhu of the Eastern District of Virginia are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Unionville Man Pleads Guilty to Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Unionville, Mo., man pleaded guilty in federal court today to possessing child pornography.
Joel R. Bremer, 50, of Unionville, pleaded guilty before U.S. District Judge Roseann Ketchmark to the charge contained in an April 15, 2015, federal indictment.
According to today’s plea agreement, the Putnam County Sheriff’s Department received a report in February 2013 from a 19-year-old female that she had been sexually abused by Bremer for a period of time when she was a child. She also stated that Bremer had taken nude photographs of her when she was a minor and that she had recently seen those pictures on his laptop computer, which he kept in his home.
Investigators with the Putnam County Sheriff’s Department and the Kirksville Regional Computer Crimes Unit executed a search warrant at Bremer’s residence on Feb. 11, 2013, and seized a laptop computer and several CD/DVDs, which Bremer must forfeit to the government. A forensic analysis was conducted at the Kirksville Regional Computer Crime Laboratory. No pornographic images of the reporting party were located; however, the analysis located approximately 1,472 photos and 40 videos which contained child pornography that appeared to have been obtained via the Internet. The content of the numerous images and video files include depictions of adults engaging in sexual conduct with prepubescent children, including toddlers.
Under the terms of today’s plea agreement, the government will seek a maximum sentence of 10 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the Putnam County, Mo., Sheriff’s Department, the Kirksville, Mo., Police Department and the Kirksville Regional Computer Crimes Unit.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Two plead guilty to unlawful possession of firearmsRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two individuals pled guilty to unlawful possession of firearms today in federal court in Martinsburg, United States Attorney William J. Ihlenfeld, II, announced.
Dione Aliquan Taylor, 29, of Martinsburg, who has pervious felony convictions in state court in New Jersey, was discovered in unlawful possession of a .45 caliber pistol in December 2015 in Jefferson County, West Virginia. He was previously convicted of the felony offenses of “Conspiracy to Violate Narcotics Laws,” “Possession with the Intent to Distribute CDS on School Property,” and “Possession with Intent to Distribute CDS on School Property” in the Superior Court of Essex County, New Jersey. Taylor pled guilty today to one count of “Felon in Possession of a Firearm.” He faces up to 10 years in prison and a fine of up to $250,000.Thomas James King, 26, of Clarksburg, Maryland, who has previous felony convictions in federal court in West Virginia and state court in Maryland, was discovered in unlawful possession of a 9mm pistol in Berkeley County, West Virginia. He was previously convicted of the felony offenses of “Conspiracy to Commit Robbery” in the Circuit Court for Montgomery County, Maryland, and “Felon in Possession of a Firearm” in the United States District Court for the Northern District of West Virginia. King pled guilty today to one count of “Felon in Possession of a 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 defendants.
Assistant U.S. Attorney Shawn Adkins prosecuted Taylor and Assistant U.S. Attorney Paul Camilletti prosecuted King on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Two Men Plead Guilty to Second-Degree Murder While Armed in Broad Daylight Shooting in Southeast WashingtonRead the Press Release
WASHINGTON – Markell Alston, 23, and Darryl Malloy, 21, both formerly of Washington, D.C., pled guilty today to second-degree murder while armed in the broad daylight slaying of a man in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Both men pled guilty in the Superior Court of the District of Columbia to the murder charge in the death of Kevin Owens. Each also pled guilty in separate cases to assault with a dangerous weapon. The Honorable Robert E. Morin scheduled sentencing for Sept. 23, 2016.
According to the government’s evidence, Alston and Malloy were good friends who lived in the Woodland Terrace area of Southeast Washington. Mr. Owens, 22, was from the Congress Park area of Southeast Washington. In December 2014 and January 2015, Alston was angry that Mr. Owens had started dating the mother of two of Alston’s children.
On Jan. 19, 2015, Martin Luther King Jr. Day, at about 2 p.m., Mr. Owens parked his car in the 3400 block of 13th Place SE, in the Congress Park area. While Mr. Owens was sitting in the driver’s seat of his car, Alston and Malloy approached the vehicle from behind. Both defendants were armed, and both fired multiple shots at Mr. Owens. They then ran away. Mr. Owens, who was struck by seven bullets, was found on the street near the driver’s side of his car. The shooting was captured by a high-definition surveillance video camera installed in the area by the Metropolitan Police Department.
In a separate case, Alston pled guilty to assaulting another inmate while he was in custody at the D.C. Jail in a noontime incident on Nov. 18, 2015. According to the government’s evidence, he and another inmate stabbed the victim with sharp objects. A corrections officer ran over and halted the attack. The victim was taken to a hospital and treated for 23 stab wounds, including on his head, neck, back, and arms.
Malloy pled guilty to accosting a contractor who was installing safety lights on the afternoon of Sept. 15, 2014, on the roofs of buildings in the Woodland Terrace area. While the contractor was on a ladder, Malloy approached him, pulled a gun from his waistband, and yelled that he did not want the lights installed.
In announcing the pleas, U.S. Attorney Phillips commended the work of the Metropolitan Police Department, which investigated the murder case. He also expressed appreciation for the assistance provided by the District of Columbia Department of Corrections, the District of Columbia Department of Forensic Sciences, the FBI, and Bode Cellmark Forensics. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Zekiah Wright, former Paralegal Specialist Karen Hansen, Investigative Analyst Zachary McMenamin, Criminal Investigators John Marsh and Durand Odom, Victim/Witness Advocate Marcia Rinker, Supervisor Security Specialist Michael Hailey, and Victim/Witness Security Specialists M. Laverne Forrest and Tanya Via.
Finally, U.S. Attorney Phillips commended the efforts of Assistant U.S. Attorneys Natalia Medina, Jeffrey Nestler, Lindsey Merikas, and Dineen Baker, who investigated and secured indictments in the various cases.
Two Members of Cherry Hill Group Sentenced to 25 Years and 10 Years in Prison for Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Steven Jackson, a/k/a Cutty, age 25; and Alonzo Clea, a/k/a Zo, age 26, both of Baltimore, to 25 years in prison, and 10 years in prison, respectively, both followed by five years of supervised release, for conspiring to participate in a racketeering enterprise in connection with their gang activities as members of the “Up the Hill,” “Up da Hill” and “UDH” ( UDH) organization, which operates in the Cherry Hill section of Baltimore.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
“Many shootings and murders in Baltimore City involve disputes between rival gangs,” said U.S. Attorney Rod J. Rosenstein. “Police and prosecutors are saving lives by holding accountable the criminals who turned Cherry Hill into a war zone.”
According to their plea agreements, from at least 1997 to 2013, the UDH organization operated in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members have been in a violent dispute with both the “Coppin Court” and “Little Spelman,” which are organizations involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” or “Down da Hill.” In addition to selling drugs, UDH members have also committed murders, assaults and robberies.
Some of these acts of violence include the August 28, 2011 murder of Little Spelman member Dewayne Jones; the January 20, 2012 murder of Little Spelman leader Dominic Hope; the June 13, 2009 non-fatal shooting of Tavon Staley; and the August 9, 2009 murder of Charles Pratt.
Jackson admitted that on October 3, 2006, he shot a rival gang member in the 600 block of Cherry Hill Road; on August 8, 2007, he committed an armed robbery in the 800 block of W. Patapsco Avenue; and on January 22, 2011 he and another individual shot and killed rival Little Spelman gang member Harry Hicks, all in Baltimore.
Clea admitted that he possessed a firearm on November 10, 2008 near the 600 block of E. Patapsco; September 15, 2009 near the 5000 block of E. Monument; and July 19, 2014 near the 2800 block of Spelman Road, all in Baltimore.
To date, a total of 35 Cherry Hill gang members have pleaded guilty to their participation in the racketeering conspiracy. Little Spelman gang member Davon Martin, age 26, admitted to drug dealing and the murders of two UDH gang members and was sentenced to 35 years in prison. UDH member Dominic Evans, a/k/a “FlatLine,” age 25, admitted to drug dealing, two stabbings and to his participation in a murder, and was sentenced to 30 years in prison.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Two Buffalo Men Arrested on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Jorge Rivera, 27, and Luis Rosario, 39, both of Buffalo, NY, were arrested and charged by criminal complaint with conspiring and attempting to possess with intent to distribute 500 grams or more of cocaine. The charge carries a mandatory minimum sentence of five years in prison, a maximum of 40 years and a $5,000,000 fine.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that according to the complaint, on June 8, 2016, the United States Postal Inspection Service executed a search warrant for a parcel sent from Puerto Rico and addressed to Jorge Rivera at 465 Woodlawn Avenue in Buffalo. Law enforcement officers discovered a package containing a white powdery substance that field tested positive for cocaine. Later that same day, an undercover law enforcement officer delivered the package to the listed address, which contained sham cocaine. Rivera signed for the package. Subsequently, Rosario arrived at the residence and law enforcement officers executed a search warrant at the residence. Rivera and Rosario fled to the lower apartment of the building and threw the package out a window which was recovered by the officers. The officers then arrested Rivera and Rosario.
The defendants made an initial appearance before U.S. Magistrate Judge Michael J. Roemer. Rivera was released on conditions; a detention hearing for Rosario is scheduled for June 13, 2016 at 2:00 p.m.
The criminal complaint is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division and the United States Postal Inspection Service, under the direction of Inspector in Charge Shelly Binkowski.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
Three Defendants Arrested in Connection with Illegal Fentanyl Pill Manufacturing OperationRead the Press Release
SAN FRANCISCO - Kia Zolfaghari, King Edward Harris II, and Candelaria Dagandan Vazquez were named in a federal criminal complaint alleging that they conspired to run an illegal fentanyl pill manufacturing operation out of an apartment in the Sunset District of San Francisco, announced United States Attorney Brian J. Stretch and Drug Enforcement Administration Special Agent in Charge John J. Martin.
According to the complaint, which is now unsealed, Zolfaghari, 39, of San Francisco, is alleged to have operated a pill press in his apartment to manufacture counterfeit oxycodone pills, which did not contain oxycodone but instead were laced with fentanyl. Fentanyl, a Schedule II controlled substance, is a highly potent opiate that can be diluted with cutting agents to create counterfeit pills that attempt to mimic the effects of oxycodone, and can typically be obtained at a lower cost than genuine oxycodone. However, small variations in the amount or quality of fentanyl can have significant effects on the potency of the counterfeit pills, raising the danger of overdoses.
The complaint alleges that Zolfaghari sold over 1,500 fentanyl-laced pills, over the course of six transactions, to a confidential source working with law enforcement. The complaint further alleges that Harris, 34, of Oxnard, brokered these narcotics sales in a series of recorded calls with the confidential source and hand-delivered two of those purchases to the confidential source.
According to the complaint, Zolfaghari also sold the fentanyl-laced pills to customers through an online marketplace. The complaint alleges that Zolfaghari’s wife, Vazquez, 38, of San Francisco, conspired with him to carry out his drug trafficking operation, and delivered packages of pills for mailing, purchased packaging supplies, and accepted payments for narcotics via her bank account.
Zolfaghari, Harris, and Vazquez were arrested this morning and made their initial appearance today in federal court in San Francisco before the Honorable Laurel Beeler, U.S. Magistrate Judge. Their next court appearance will be before Judge Beeler at 9:30 a.m. on Monday, June 13, 2016.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of 20 years, and a fine of $1,000,000 or twice the gain or loss from their criminal activity, for each violation of 21 U.S.C. §§ 841(a)(1) and 846. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Rita Lin is prosecuting the case with the assistance of Amanda Martinez and Theresa Benitez. The prosecution is the result of a seven-month investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Internal Revenue Service, the United States Postal Service, and Customs and Border Protection, with assistance from the San Francisco Police Department and San Francisco Fire Department.
This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, (OCDETF) a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Spokane, Washington Man Sentenced to Nine Years in Federal Prison for Possession of Child PornographyRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Randall Maurice Peterson, age 37, of Spokane, Washington, was sentenced after having previously plead guilty on March 9, 2016 to Possession of Child Pornography. United States District Judge Wm. Fremming Nielsen sentenced Peterson to a nine-year term of imprisonment, to be followed by a life-term of court supervision after he is released from Federal prison. In addition, Peterson was ordered to forfeit to the United States the digital memory card that he used to download and store child pornography. Peterson will also be required to register as a sex offender.
According to information disclosed during the court proceedings, Peterson had a digital memory card (“SD card”) that he used to possess three videos and 34 photographs of a prepubescent child involved in various sexual acts.
Michael C. Ormsby stated, “The United States Attorney’s Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes. Prosecuting offenders who possess child pornography is one of the top priorities of the United States Attorney’s Office.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Federal Bureau of Investigation and the Spokane Police Department. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and Project Safe Childhood Coordinator for the Eastern District of Washington.
Spokane, Washington Man Sentenced to Five Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that John Marion Hatlestad, age 62, of Spokane, Washington, was sentenced after having previously plead guilty on March 9, 2016 to Distribution of Child Pornography. United States District Judge Wm. Fremming Nielson sentenced Hatlestad to a five-year term of imprisonment, to be followed by a fifteen-year term of court supervision after he is released from Federal prison. In addition, Hatlestad was ordered to forfeit to the United States his computer and other digital items that he used to store and distribute child pornography. Hatlestad will also be required to register as a sex offender.
According to information disclosed during the court proceedings, Hatlestad was using a Peer to Peer file sharing account to share and distribute child pornography images over the Internet. Undercover law enforcement agents located child pornography files Hatlestad was making available for download and later obtained a federal search warrant for Hatlestads’ residence. On March 6, 2015, Homeland Security Investigations Agents executed a federal search warrant at Hatlestads’ residence and seized Hatlestads’ computer and digital devices that he used to store and distribute child pornography. A forensic examination of Hatlestads’ personal computer revealed 5,807 child pornography images and 87 videos of child pornography.
Michael C. Ormsby stated, “I commend the Asotin County Sheriff’s Office and Homeland Security Investigations for their efforts in successfully investigating this case. Prosecuting offenders who distribute child pornography is one of the top priorities of the United States Attorney’s Office for in the Eastern District of Washington. This Office, together with its law enforcement partners, is committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by Homeland Security Investigations and the Asotin County Sheriff’s Office. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and Project Safe Childhood Coordinator for the Eastern District of Washington.
Seymour woman sentenced for defrauding small businessRead the Press Release
Indianapolis – United States Attorney Josh Minkler today announced the sentence of a Seymour, Indiana, woman for her role in a fraud scheme. Angela Kincaid, 44, was sentenced to 41 months (3 ½ years) in federal prison by U.S. District Court Chief Judge Richard L. Young.
“Fraud cannot, and will not, be tolerated – especially fraud by company insiders,” said Minkler. “When greed drives a person to abuse a position of trust and defraud his or her employer, especially a small family business, that person will be prosecuted by my office to the fullest extent of the law.”
Kincaid used her position as bookkeeper to conceal and perpetrate her theft from her employer, a small family manufacturing business in Seymour, Indiana. Just a month after starting as bookkeeper, she began cutting company checks to herself by forging the company president’s signature. All told, Kincaid forged over 170 checks and stole over $625,000, which she spent largely on personal luxuries, such as second and third homes, cars, vacations, jewelry, NFL football tickets, guitars, amps, drums, and over 35 firearms.
She used her position as bookkeeper and the trust and authority the company’s managers afforded her, to conceal her fraud. She made numerous false entries in the company’s accounting ledger that omitted any reference to the checks she cut to herself. In addition, upon learning that the company engaged an outside auditor to review its books and compare them to bank records, Kincaid manipulated copies of the bank records in a way that completely concealed her embezzlement.
Finally, when the company’s bank account ran low – due to her theft – she created a false email account and impersonated a company official to authorize the bank to replenish the company’s checking account from its line of credit. Not only did Kincaid steal the company’s cash, but her scheme also put it several hundred thousand dollars in debt. The court sentenced her accordingly.
According to Assistant United States Attorney Nick Linder, who prosecuted this case for the government, Kincaid must make full restitution to the victim company and serve three years of supervised release after her prison term.
Scranton Woman Sentenced to 57 Months’ Imprisonment for Acting as A Getaway Driver for Two Bank RobberiesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Stephanie Ann Ware, age 27, of Scranton, Pennsylvania, was sentenced by United States District Court Judge Robert D. Mariani in Federal Court on June 9th, to 57 months’ imprisonment.
In December 2015, she pleaded guilty to aiding and abetting the robbery of two banks by acting as a getaway driver. Ware admitted to charges that she aided Lee Sokalsky in the robberies of the NBT Bank, Dickson City, on July 25, 2014 and the Mauch Chunk Trust Bank, Tamaqua, on August 26, 2014.
Sokalsky was previously indicted by a Federal Grand Jury and is awaiting trial.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Hazleton, Rush Township, Dickson City, and Scranton Police Departments. Prosecution is assigned to Assistant United States Attorney John Gurganus.
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Prolific Thief Sentenced to 4 Years in Federal Prison for Stealing MailRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that that Fred Nolan, Jr., age 45, of Spokane, Washington, was sentenced after having previously plead guilty to the felony charge of Possession of Stolen U.S. Mail and the misdemeanor charge of Theft of Property Used by the United States Postal Service. Senior United States District Judge Lonny R. Suko sentenced Nolan to a 4-year term of imprisonment, to be followed by a 3-year term of court supervision upon release from Federal prison.
According to information disclosed during the court proceedings, in late May 2013 Nolan broke into the Flour Mill (a building housing several business in Spokane, Washington) and gained access to the locked mail distribution room. When employees later arrived, they located mail from the various businesses in the Flour Mill scattered around the floor. A Postal Service lock mechanism had obviously been broken during the incident. Surveillance video was later reviewed, and Nolan was clearly shown breaking into the Flour Mill’s mail distribution room and then leaving the building with two bags. During a subsequent unrelated burglary investigation at another location, Spokane Police Department detectives located a piece of mail from the Flour Mill. Nolan’s fingerprint was located on that envelope. Nolan has at least 38 prior felony convictions for theft and burglary-related conduct.
Michael C. Ormsby said, “Interference with the U.S. Mails will not be tolerated in the Eastern District of Washington. My office prosecutes aggressively crimes that affect the Mails, this case being one example of that commitment. I commend the cooperative investigative efforts of the Spokane Police Department and the United States Postal Inspection Service.”
This case was investigated by the Spokane Police Department and the United States Postal Inspection Service. The case was prosecuted by Caitlin Baunsgard, an Assistant United States Attorney for the Eastern District of Washington.
Post-Plea Deferral Program Offers Second Chance to Some Drug OffendersRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announces a Post-Plea Deferral Program (PPDP) jointly developed by the United States Attorney’s Office, the United States Probation Office and the Federal Public Defender’s office. The goals of the PPDP are to promote community safety, break the cycle of drug addiction-induced crime, and increase the likelihood of successful rehabilitation of drug offenders by implementing a blend of treatment, supervision, appropriate sanctions, and incentives.
On Monday, June 6, 2016, Jeremy Johnson became the first person accepted into the Eastern District of Arkansas’ PPDP. Johnson pleaded guilty to obtaining a Schedule II controlled substance by fraudulent prescription, which carries up to a four-year prison sentence. However, as Johnson is a participant in the PPDP, United States District Court Judge James M. Moody, Jr., deferred acceptance of the plea for a period of 18 months, during which time Johnson must abide by the conditions and requirements of the PPDP. If he successfully completes his program, the United States Attorney will dismiss his charges.
"My office is pleased to participate in this rehabilitative alternative to felony conviction, designed for those who deserve such a break," Thyer said. "The PPDP program is limited in scope, providing individuals with no prior criminal history, or very minor criminal history, whose criminal conduct was motivated primarily by drug addiction, to accept their criminal conduct and prove their rehabilitation over a period of months. Upon successful completion, the individual will have the opportunity to move forward leading a drug-free life without having received a felony record."
The PPDP is a new program designed to give a limited number of offenders charged with minor drug-related offenses who have little or no criminal history and whose illegal conduct was the direct result of an addiction to drugs the opportunity to resolve their federal charges without a felony conviction. This opportunity is available provided they successfully complete an intensive supervision program and show that they are positively contributing to the community through employment and education.
"I think it is wonderful that our district has implemented this program, and the federal defender’s office very much looks forward to participating in it," Federal Public Defender Jenniffer Horan said.
Under the program, a defendant who accepts responsibility for his or her criminal conduct will enter a guilty plea that is deferred by the court for a period of 12 to 18 months. During the deferral period, the defendant will be supervised by the United States’ Probation Office and provided the opportunity to participate in drug treatment and other available services. Upon successful completion of the rehabilitation period, the court will decline to accept the defendant’s guilty plea, and the United States will dismiss the felony charges against the defendant. Successful completion and dismissal of felony charges are not guaranteed upon acceptance into the program, rather, successful completion must be earned by the defendant through showing genuine rehabilitation from drug addiction and positive contribution to the community.
"The program provides defendants, whose criminal activity is directly related to addiction, an opportunity to break the cycle of drug-induced criminal behavior," Chief U.S. Probation and Pretrial Services Officer Eddie Towe said. "One powerful incentive is the chance to avoid a custody sentence and a federal criminal conviction. The parties will use a collaborative approach to recommend responses to violations in an expeditious and consistent manner while also providing encouragement and guidance."
Pittsburgh, PA man pleads guilty to selling heroin in West VirginiaRead the Press Release
CLARKSBURG, WEST VIRGINIA – Raimonte Gaston, 23, of Pittsburgh, Pennsylvania, pled guilty to heroin trafficking today in federal court in Clarksburg, United States Attorney William J. Ihlenfeld, II, announced.
Gaston sold heroin in Harrison County, West Virginia. He pled guilty today to one count of “Distribution of Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000. 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. Attorneys Shawn Adkins and Stephen Warner prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force investigated.U.S. District Judge Irene M. Keeley presided.
Pawn Shop Owner Sentenced to over 3 Years in Prison in Scheme to Sell Stolen GoodsRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Noel Erik Anshel, age 49, of Owings Mills, Maryland today to 46 months in prison followed by three years of supervised release for transporting stolen goods. Judge Motz also ordered Anshel to forfeit $551,000, including funds held in four PayPal accounts and six bank accounts, six properties in Baltimore purchased with proceeds from the scheme, and property seized from his pawn shop.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief Gary Gardner of the Howard County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.
According to his plea agreement, from January 1, 2010 to January 1, 2014, Anshel was part owner of Hilltop Cellular, a pawn shop located in the 5400 block of Reisterstown Road in Baltimore. Anshel became the sole owner and manager of the shop from January 1, 2014 to August 12, 2015.
From at least January 1, 2010 to August 12, 2015, Anshel paid cash to more than five shoplifters in exchange for products stolen from retailers, including construction tools, pressure washers, kitchen appliances, electrical generators and consumer electronics. The products were frequently new and still in the original box. The shoplifters brought the stolen items to Hilltop Cellular, where Anshel purchased them for far less than the products’ retail value. Anshel paid at least three of his “regular” shoplifters over $40,000 each for stolen products.
Anshel had a license to resell “second-hand” merchandise at Hillside Cellular, but would list the stolen items on eBay as new.
In April 2014, Howard County Police officers followed an individual from a Home Depot store where the individual had stolen several items, to Hilltop Cellular where the individual sold the items to Anshel. Investigators then entered the pawn shop and seized the stolen items. At that time, Anshel stated that, “90% of what I buy is stolen,” and “it’s the cost of doing business.”
Law enforcement subsequently executed a search warrant at Hilltop Cellular and seized a large amount of stolen property worth approximately $20,000.
The total estimated loss from the scheme is approximately $551,000. Anshel used the proceeds of the scheme to purchase, among other things, six houses in Baltimore.
Orlando Woman Pleads Guilty to Acting as Illegal Agent of Foreign Government and Conspiring to Commit Money LaunderingRead the Press Release
Orlando, FL – Amin Yu, 54, of Orlando, Florida, pleaded guilty today to acting in the United States as an illegal agent of a foreign government without prior notification to the Attorney General and conspiring to commit international money laundering.
The plea agreement was announced by U.S. Attorney A. Lee Bentley III of the Middle District of Florida and Assistant Attorney General for National Security John P. Carlin.
“Amin Yu made hundreds of thousands of dollars by acting covertly in Orlando on behalf of the Chinese government and by skirting U.S. export laws and regulations,” said U.S. Attorney Bentley. “The enforcement of U.S. laws and regulations related to the national security of the United States remains a top priority for our office.”
“Amin Yu admitted to secretly serving as an agent of the Chinese government,” said Assistant Attorney General Carlin. “Yu obtained and illegally exported items and technology related to marine submersible vehicles at the direction and control of a state-owned entity in China. Protecting our national assets by disrupting efforts by foreign governments to steal sensitive equipment and technology will continue to be a high priority of the National Security Division.”
According to the plea agreement, from at least 2002 until February 2014, at the direction of co-conspirators working for Harbin Engineering University (HEU), a state-owned entity in the People’s Republic of China, Yu obtained systems and components for marine submersible vehicles from companies in the United States. She then illegally exported those items to the PRC for use by her co-conspirators in the development of marine submersible vehicles – unmanned underwater vehicles, remotely operated vehicles and autonomous underwater vehicles – for HEU and other state-controlled entities. Yu illegally exported items by failing to file electronic export information (EEI), as required by U.S. law, and by filing false EEI. In particular, Yu completed and caused the completion of export-related documents in which she significantly undervalued the items that she had exported and provided false end user information for those items.
Yu faces a maximum penalty of 10 years in prison for acting as an illegal agent of a foreign government and up to 20 years in prison for conspiring to commit money laundering. A sentencing hearing has not yet been scheduled.
This case was investigated by the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Internal Revenue Service-Criminal Investigation and the Naval Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Daniel C. Irick of the Middle District of Florida and Trial Attorneys David C. Recker and Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section.
New Orleans Man Indicted for Whitney Bank RobberyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GREGORY CHISOLM, age 52, of New Orleans, was charged today by a federal grand jury in a one-count Indictment with the January 4, 2016 robbery of the Whitney Bank branch located at 228 St. Charles Avenue, New Orleans, Louisiana.
If convicted, CHISOLM faces a maximum sentence of twenty-five years in prison, a $250,000, and five years of supervised release.
U.S. Attorney Polite reiterated that the Indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
Nassau County Man Pleads Guilty to Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, FL – United States Attorney A. Lee Bentley, III announces that Clement Ashford Reeves, Jr. (73, Yulee) has pleaded guilty to receiving child pornography over the Internet. He faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison and a potential life term of supervision. A sentencing date has not yet been set.
According to court documents, an agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations began an undercover operation to identify persons using the Internet to receive and share child pornography. The agent learned that a host computer in Florida had been sharing child pornography since December 15, 2011. That computer was traced to Reeves’s residence.
On June 3, 2015, agents met with Reeves at his home. During an interview, Reeves stated that he had downloaded depictions of prepubescent children, but that his preference was for young girls. He also said that he had been using the file sharing program for 10-15 years. Agents seized several computer devices that contained 22 videos depicting young children being sexually abused.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.
Muncie woman sentenced for stealing benefits meant for her childrenRead the Press Release
Indianapolis – United States Attorney Josh Minkler today announced the sentence of a Muncie woman after being convicted for stealing nearly $200,000 in Social Security disability funds, public housing assistance, and food stamps, all of which were meant for her children. Kimberly Harper, 55, was sentenced to 33 months (nearly three years) in federal prison by U.S. District Judge Tanya Walton Pratt.
“For over 20 years, Harper did not raise or support her children,” said Minkler. “Instead, she stole from them – including her son who was born with a severe mental disability. This money was meant for the care of her children and she selfishly spent it on herself.”
Harper has four children, one of which struggles with a severe form of autism. In the early 1990s, when her children were toddlers, she refused to care for them any longer and handed them off to her own parents, who ultimately raised the kids. At the same time, she applied to the Social Security Administration for disability benefits on behalf of her autistic child. But instead of using that money to support her son, as she was required to do, she spent it for herself.
Later, she applied to the Department of Housing and Urban Development for public housing assistance and to the Indiana Family Social Services Administration for food stamps assistance. Again, she falsely claimed that these benefits were for her children and instead received and spent the benefits for herself.
In total, Harper stole nearly $200,000 in benefits that were meant for her children. Her scheme lasted over 20 years. And even when caught, she refused to admit her culpability. After Harper’s mother died in 2013, her father, who was still caring for Harper’s disabled son, applied for Social Security disability benefits. Just days after he finally convinced the Social Security office that he was the one caring for Harper’s son, Harper showed up to the office and pleaded that Social Security switch the payments back to her. She claimed her son had always lived with her and had never been out of her care. She knew these statements had been false for over 20 years. She was sentenced accordingly.
According to Assistant United States Attorney Nick Linder, who prosecuted this case for the government, Harper must make full restitution and serve three years of supervised release after her sentence.
Morgantown, WV man pleads guilty to interstate heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Justin Donald Myers, 37, of Morgantown, West Virginia, pled guilty to heroin trafficking today in federal court in Clarksburg, United States Attorney William J. Ihlenfeld, II, announced.
Myers was among fourteen individuals charged with heroin trafficking when three separate federal indictments disrupted a Michigan to West Virginia heroin trafficking network in February 2016. Specifically, Myers sold heroin in January 2016 near West Virginia University in Monongalia County, West Virginia.Myers pled guilty today to one count of “Aiding and Abetting Distribution of Heroin within 1,000 feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000. 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 Zelda Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.U.S. Magistrate Judge Michael John Aloi presided.
Mexican Citizen Sentenced to 11 Years in Prison for His Participating in a Drug ConspiracyRead the Press Release
TULSA, Okla.—Ivan Hondal Chavez, 30, Vera Cruz, Mexico, was sentenced to 132 months in prison for participating in a drug trafficking conspiracy, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma. Chief United States District Court Judge Gregory K. Frizzell also sentenced Hondal to three years of supervised release following his prison sentence and ordered him to forfeit money, a car, and a firearm.
On December 10, 2015, agents with the Drug Enforcement Administration (DEA) intercepted a vehicle destined for Tulsa that concealed approximately 25 kilograms of methamphetamine, 1 kilogram of cocaine, and 1 kilogram of heroin. The driver of the vehicle assisted DEA agents in performing a controlled delivery of the drugs found in the vehicle to Hondal.
This was not the first delivery of drugs to Tulsa by Hondal and his coconspirators. At the time of his sentencing, Hondal was held responsible for at least 45 kilograms of methamphetamine over the course of his involvement in the conspiracy. Hondal is unlawfully in the United States and he will be deported to Mexico after he serves his sentence.
This case was investigated by the DEA. Assistant United States Attorney Neal C. Hong prosecuted the case.
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Marion County man sentenced for unlawful possession of firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Antonio Cottingham, 29, of Fairmont, West Virginia, was sentenced today to 46 months in prison for unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Cottingham, who has previous felony convictions in federal and state court in West Virginia, was discovered in unlawful possession of a .44 caliber revolver in August 2015 in Fairmont, West Virginia. Cottingham was previously convicted in the Northern District of West Virginia of the felony offenses of “Distribution of Crack Cocaine” and “Escape from Custody.” He was also previously convicted in state court in West Virginia of the felony offense of “Conspiracy to Commit a Felony Against the Sate.”
Cottingham pled guilty in January 2016 to one count of “Felon in Possession of a Firearm.”
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The Fairmont, West Virginia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge Irene M. Keeley presided.
Long Island Attorney Sentenced to Sixteen Months in Prison for Forgery of Bankruptcy Judge’s SignatureRead the Press Release
Earlier today in Central Islip, NY, Jeffrey I. Stark, an attorney admitted to practice law in New York, was sentenced to 16 months’ imprisonment to be followed by three years of supervised release based on his guilty plea on August 7, 2015, for forgery of a judicial signature. The sentencing proceeding was held before U.S. District Judge Arthur D. Spatt.
The charge against Stark arose after he was retained in 2012 by a couple to file bankruptcy proceedings on their behalf in the United States Bankruptcy Court for the Eastern District of New York. Stark never filed a bankruptcy petition and instead provided the couple with a fake discharge order bearing the forged signature of a United States Bankruptcy Judge.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York.
In announcing the sentence, United States Attorney Capers stated, “Attorneys, as trusted officers of the court, are rightfully held to a high standard of conduct, and Mr. Stark violated the trust of his clients and the court by his criminal conduct here.” Mr. Capers expressed his grateful appreciation to the FBI, the agency responsible for leading the government’s the investigation.
Stark was suspended from the practice of law on November 20, 2013, by the New York State Appellate Division, 1st Department.
The government’s case was prosecuted by Assistant United States Attorney Allen L. Bode.
The Defendant:
JEFFREY I. STARK
Age: 53
Residence: Massapequa, New YorkLocal Music Volunteer Sentenced to 25 Years in Prison for Production of Child PornographyRead the Press Release
ALEXANDRIA, Va. – David Alexander Battle II, 24, who served as a volunteer with the music program at Grace E. Metz Middle School in Manassas, was sentenced today to 300 months in prison for production of child pornography, attempted coercion and enticement of a minor, receipt of child pornography, and distribution of child pornography after being convicted by a federal jury on March 10.
Battle was charged by superseding indictment on February 11. According to court records and evidence at trial, an Internet Protocol address linked to Battle was used to share a sexually explicit video involving a child on a chat website in April 2015. Battle also posed as a minor girl on another chat platform and chatted with minor boys, coercing and enticing them to send him sexually explicit images of themselves. The evidence demonstrated that the defendant personally knew two of the boys he chatted with on this platform.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Douglas W. Keen, Manassas City Chief of Police; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after sentencing by U.S. District Judge Claude M. Hilton. The Herndon Police Department and the Northern Virginia/Washington, D.C. Internet Crimes Against Children Task Force (ICAC) assisted in the investigation. Assistant U.S. Attorney Jay V. Prabhu and Special Assistant U.S. Attorney Lauren Britsch prosecuted the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 1:15-cr-274.
Lewisville, Texas Systems Administrator Convicted of Federal ViolationsRead the Press Release
SHERMAN, Texas – A 37-year-old company systems administrator has been convicted of federal violations within the Computer Fraud and Abuse Act in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Michael Thomas, of Lewisville, Texas, was found guilty by a jury on June 8, 2016, of knowingly transmitting programs, information, codes, or commands that intentionally caused damage to his employer’s computer system, that he did not have authorization to cause the damage, and that those damages incurred losses to the employer in excess of $5,000. The verdict came following a three-day trial before U.S. District Judge Amos L. Mazzant, III.
According to the indictment and evidence presented at trial, on Dec. 2-5, 2011, Thomas, while employed as the Information Technology Operations Manager for ClickMotive in Plano, Texas, became upset about a business decision the company made. In retaliation, Thomas granted himself access to the company executives’ email accounts in order to search through emails and forward them to an external email account he created for that purpose. Over the weekend, Thomas also tampered with the company paging system by entering false contact information for various company executives, ensuring that any automatically-generated alerts indicating system problems would not be received. Thomas also removed company employees and executives from email distribution groups created for the benefit of its customers, who were large automotive companies and dealerships. This ensured that customers’ request for support would similarly go unnoticed.
Thomas deleted virtual machines that were currently in active use and being used to store and perform important backup functions, deleted 615 files of backup history which were not able to be recovered, and also deleted jobs for future backups across various environments in the network. Those deletions were performed contrary to established practices and procedures routinely followed by the company. Thomas also deleted several internal “wiki” pages that employees routinely accessed and relied upon to perform their jobs. Furthermore, Thomas manually changed the setting for an authentication service that eventually led to the inability of employees to work remotely through a Virtual Private Network. Thomas left his resignation on Sunday, Dec. 5, 2011, before his nefarious activities were discovered. Company IT personnel and expert witnesses testified that Thomas’ activities, taken as a whole, were not consistent with normal trouble-shooting and maintenance.
Thomas’ friend and former colleague testified that in the days following the events in question, Thomas admitted to have “tinkered” with the system and specifically to deleting backups and related files, tampering with the door monitoring system, absconding with passwords, and also stating that he thought he broke the law. When later questioned about the incident, Thomas similarly admitted to FBI Agents to deleting wiki pages and spying on company executives’ emails, also saying he didn’t want the job to be easier for the next person. On Aug. 12, 2013, Thomas abruptly resigned from a well-paying job and purchased a plane ticket to Brazil, departing that same day, after being notified that the government intended to formally charge the defendant on Aug. 14, 2013. He did not return to the United States until April 20, 2016.
ClickMotive’s co-founder and Chief Technology Officer extensively testified as to the importance of the data that the defendant tampered with and destroyed which not only affected the company’s ability to access certain data but also instilled a sense of fear that persisted within the company for months. The witness explained that no one had permission to delete or impair data that is valuable to the company. The cost to investigate and remediate the problems created by Thomas was more than $100,000. Thomas was indicted by a federal grand jury on Sep. 11, 2013 and charged with violating Title 18 of the United States Code, Section 1030(a)(5)(A) and (c)(4)(B), within the Computer Fraud and Abuse Act.
“The jury’s verdict in this case sends an important message to IT professionals everywhere: an employee in the defendant’s position holds the proverbial keys to the kingdom and with that power comes great responsibility,” said U.S. Attorney Bales. “Intentionally causing damage to a computer system without authorization is a criminal act that can and will be prosecuted.”
Damage is defined by the statute as “any impairment to the integrity or availability of data, a program, a system, or information.”
Thomas faces up to 10 years in federal prison at sentencing. Sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The case was investigated by the Federal Bureau of Investigation and prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas in Plano, Texas.
Leesville man sentenced to 36 months in prison for burglary on Fort Polk military postRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a Leesville resident was sentenced Thursday to 36 months in prison for burglarizing homes and a truck on the Fort Polk military installation.
Dakota Cole Yarbrough, 22, of Leesville, La., was sentenced by U.S. District Judge Patricia Minaldi on one count of simple burglary of an inhabited dwelling. He was also sentenced to three years of supervised release. According to the March 3, 2016 guilty plea, Yarbrough was driven to the outskirts of the Fort Polk U.S. Army base around 10 p.m. on August 5, 2015. He then illicitly crossed the fence onto the installation. Once on the base, he illegally entered two residences where families were sleeping and stole personal belongings from the homes. He also broke into and stole items from a pickup truck. The Vernon Parish Sheriff’s Office found many of the stolen items in Yarbrough’s residence after a search on August 10, 2015.
The Fort Polk Directorate of Emergency Services and the Vernon Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney David C. Joseph prosecuted the case.
Jamaican man sentenced in international lottery scamRead the Press Release
CLARKSBURG, WEST VIRGINIA – Davel Godfrey Young, 53, of Montego Bay, Jamaica, was sentenced today to 30 months in prison for wire fraud, United States Attorney William J. Ihlenfeld, II, announced.
Young, along with other individuals, made a series of unsolicited phone calls and sent unsolicited emails to a variety of United States citizens. Young informed these individuals that they had won a multi-million dollar lottery prize and a new Mercedes Benz or BMW vehicle. Young then informed the purported lottery winners that in order to receive their lottery prizes, they needed to pay taxes and processing fees by wiring finds to Jamaica and various locations within the United States.Young further sent fraudulent documentation that misleadingly appeared to be official government forms and unlawfully portrayed the names and symbols of the Internal Revenue Service, Department of Treasury, and Federal Reserve Board. Young also transmitted electronic images of forged multi-million dollar cashier’s checks.
Young pled guilty in November 2015 to one count of “Conspiracy to Commit Wire Fraud.” As part of the sentenced imposed today, Young was also ordered to pay restitution in the amount of $232,118.78.
Assistant U.S. Attorney Andrew Cogar prosecuted the case on behalf of the government. The Treasury Inspector General for Tax Administration investigated.
U.S. District Judge Irene M. Keeley presided.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Johnston in Great Falls on June 7, 2016 and entering pleas of Not Guilty were:
- RONALD RAY HORNER, a 56-year-old resident of Walsenburg, Colorado, appeared on charges of transportation of child pornography. If convicted of the charge contained in the indictment, HORNER faces 20 years in prison, $250,000 in fines, and lifetime supervised release. The case was investigated by the Homeland Security Investigations, Canada Border Services Agency, Royal Canadian Mounted Police, Southern Alberta Internet Child Exploitation Team. PACER Case Reference. 16-40
Appearing before U.S. Magistrate Johnston in Great Falls on June 6, 2016 and entering pleas of Not Guilty were:
- ZANE COLTIN CHANDLER, a 24-year-old resident of Babb, appeared on charges of possession of a stolen firearm, and accessory after the fact. If convicted of the most serious charge contained in the indictment, CHANDLER faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-49
- QUADE SMITH, a 24-year-old resident of Browning, appeared on charges of assault with a dangerous weapon, assault resulting in serious bodily injury, using and discharging a firearm during and in relation to a crime of violence, possession of a stolen firearm, and accessory after the fact. If convicted of the most serious charges contained in the indictment, SMITH faces life in prison, $250,000 in fines, and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-49
Appearing before U.S. Magistrate Ostby in Billings on June 3, 2016 and entering pleas of Not Guilty were:
- TERRANCE DELVETTEO WILLIAMS, a 36-year-old resident of Billings, appeared on charges of illegal receipt of a firearm by a person under indictment. If convicted of the charge contained in the indictment, WILLIAMS faces 5 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 16-26
Appearing before U.S. Magistrate Ostby in Billings on June 2, 2016 and entering pleas of Not Guilty were:
- CHANCE BILLY JOE DEHART, a 29-year-old resident of Billings, appeared on charges of conspiracy to possess with the intent to distribute and to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, DEHART faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by Homeland Security Investigations. PACER Case Reference. 15-150
- ALDEN LEE WILSON, a 41-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, WILSON faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the HIDTA Task Force. PACER Case Reference. 15-63
Appearing before U.S. Magistrate Johnston in Great Falls on May 25, 2016 and entering pleas of Not Guilty were:
- PHYLLIS LYNN TATSEY, a 53-year-old resident of Spokane, Washington, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, TATSEY faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Drug Enforcement Administration and the Bureau of Indian Affairs. PACER Case Reference. 16-16
Appearing before U.S. Magistrate Ostby in Billings on May 25, 2016 and entering pleas of Not Guilty were:
- JOSHUA JAMES COOLEY, a 32-year-old resident of Sheridan, Wyoming, appeared on charges of possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charge contained in the indictment, COOLEY faces life in prison, $5,000,000 in fines, and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 16-42
- RANDY FALLS DOWN, a 51-year-old resident of Pryor, appeared on charges of willful failure to file return. If convicted of the charge contained in the information, FALLS DOWN faces 1 year in prison, $100,000 in fines, and 3 years supervised release. The case was investigated by the Internal Revenue Service. PACER Case Reference. 16-37
- PETER JOHN JEFFERSON, a 48-year-old resident of Lodge Grass, appeared on charges of abusive sexual contact with a minor. If convicted of the charge contained in the indictment, JEFFERSON faces 2 years in prison, $250,000 in fines, and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-44
- DAVID ANDREW WALKSALONG, JR., an 18-year-old resident of Lame Deer, appeared on charges of assault resulting in seriously bodily injury, and assault with a dangerous weapon. If convicted of the most serious charge contained in the indictment, WALKSALONG faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs. PACER Case Reference. 16-56
Appearing before U.S. Magistrate Ostby in Billings on May 24, 2016 and entering pleas of Not Guilty were:
- THOMAS GREGORY BAILEY, a 37-year-old transient, appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, BAILEY faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation Task Force. PACER Case Reference. 15-65
- ALFONSO BANDERAS-MARTINEZ, a 24-year-old resident of New York City, New York, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, BANDERAS-MARTINEZ faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 16-53
- JOATHAM LEIGHT ECHAGILE, a 28-year-old resident of Tangipahoa Parish, Louisiana, appeared on charges of felon in possession of a firearm, and possession of a firearm in a school zone. If convicted of the most serious charge contained in the indictment, ECHAGILE faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 16-15
- ANGEL GUZMAN-BANDEROS, a 19-year-old resident of San Jose, California, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, GUZMAN-BANDEROS faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 16-53
- LUIS FELIPE LOPEZ-ROJAS, a 22-year-old resident of San Jose, California, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, LOPEZ-ROJAS faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 16-53
- CHARLES JESSE SANCHEZ, JR., a 50-year-old resident of Billings, appeared on charges of felon in possession of a firearm and ammunition. If convicted of the charge contained in the indictment, SANCHEZ faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 16-40
Appearing before U.S. Magistrate Johnston in Great Falls on May 23, 2016 and entering pleas of Not Guilty were:
- THELMA FAY PEPION, a 49-year-old resident of Browning, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, PEPION faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 16-27
Appearing before U.S. Magistrate Lynch in Missoula on May 19, 2016 and entering pleas of Not Guilty were:
- NICHOLAUS WADE MANGELS, a 29-year-old resident of Polson, appeared on charges of receipt of child pornography. If convicted of the charge contained in the indictment, MANGELS faces 5 years in prison, $250,000 in fines, and lifetime supervised release. The case was investigated by Homeland Security Investigations, Internet Crimes Against Children Task Force, and Flathead County Sheriff’s Office. PACER Case Reference. 16-06
Appearing before U.S. Magistrate Johnston in Great Falls on May 17, 2016 and entering pleas of Not Guilty were:
- BRIAN KELLY EAGLEMAN, a 53-year-old resident of Box Elder, appeared on charges of theft from an Indian Tribal organization. If convicted of the charge contained in the indictment, EAGLEMAN faces 5 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Department of Interior Office of Inspector General, Health and Human Services Office of Inspector General, Internal Revenue Service, and the Federal Bureau of Investigation. PACER Case Reference. 16-35
- BRIAN KELLY EAGLEMAN, a 53-year-old resident of Box Elder, appeared on charges of income tax evasion and failure to file a currency transaction report. If convicted of the most serious charge contained in the indictment, EAGLEMAN faces 5 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Internal Revenue Service. PACER Case Reference. 16-41
- VIOLET LYNN EAGLEMAN, a 47-year-old resident of Havre, appeared on charges of income tax evasion and failure to file a currency transaction report. If convicted of the most serious charge contained in the indictment, EAGLEMAN faces 5 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Internal Revenue Service. PACER Case Reference. 16-41
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Houston Physician Sentenced in Health Care Fraud ConspiracyRead the Press Release
HOUSTON – Two defendants in a nearly $3 million fraudulent vestibular diagnostic testing scheme have been ordered to federal prison, announced U.S. Attorney Kenneth Magidson. Dr. Augustine Egbunike, 61, pleaded guilty Jan. 16, 2015, while Loretta Mbadugha, 58, also of Houston, entered a plea for her role in the scheme Dec. 12, 2014.
Today, U.S. District Judge Melinda Harmon ordered Egbunike to serve 57 months in prison and must pay $2 million in restitution to Medicare and Medicaid. Mbadugha was sentenced in May to 30 months and ordered to pay $404,157.12 in restitution. In addition, Mbadugha forfeited her home which was purchased with proceeds from the fraud.
Vestibular diagnostic testing is used to evaluate a person for vertigo or dizziness. Following diagnosis, patients usually undergo physical therapy, take medication or undergo surgery as treatment.
From approximately 2006 through 2010, Egbunike, Mbadugha and others falsely billed Medicare and Medicaid for numerous, unnecessary vestibular diagnostic tests. Some patients were tested more than 1,000 times. The evidence demonstrated that the testing was either not performed, not medically necessary or not performed by licensed individuals.
As a result of this unlawful scheme, Medicare and Medicaid were billed approximately $2.9 million and paid approximately $2 million. At the time, 88 percent of Egbunike’s Medicare and Medicaid income came from medically unnecessary vestibular testing.
This was the largest case among four, separate vestibular fraud indictments in the Houston area which totaled nearly $6 million.
To date, three physicians and four others have been sentenced in the four cases with $5,639,604.73 in restitution ordered returned to Medicare and Medicaid.
Egbunike has been detained since his arrest in 2014 where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The cases are the result of the investigative efforts of the Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services - Office of Inspector General, Office of Investigations, and the FBI. Special Assistant U.S. Attorneys Suzanne Bradley and Justin Blan and Assistant U.S. Attorney Tina Ansari are prosecuting the cases.
Houston Man Convicted of Wire FraudRead the Press Release
VICTORIA, Texas – A 56-year-old Houston man employed at the Alcoa Operations Plant in Point Comfort has been convicted of wire fraud, announced U.S. Attorney Kenneth Magidson.
Jack Kennedy was employed in the machine shop tool room at the plant. In his position, Kennedy was responsible for inventorying and ordering parts, tools and supplies used by Alcoa employees. Kennedy ordered and stole large quantities of expensive small parts, tools and supplies.
Authorities learned that Kennedy was selling the stolen tools to an individual in New York. Kennedy would email and fax the buyer in New York a list of tools available for purchase. Once Kennedy accepted the offer from the New York buyer, he would mail the tools via the United Parcel Service. The buyer would then mail a check to Kennedy’s home in Texas.
U.S. Magistrate Judge B. Janice Ellington accepted the guilty plea today. U.S. Circuit Judge Gregg Costa, sitting by designation, will sentence Kennedy Sept. 16, 2016. At that time, Kennedy faces up to 20 years in federal prison and a possible $250,000 maximum fine.
He was permitted to remain on bond pending sentencing.
The FBI initiated the investigation in March 2012. Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case.
Home Improvement Contractor Charged with Defrauding Customers and Hiding Assets from Creditors in Bankruptcy ProceedingsRead the Press Release
WASHINGTON - Michael Lawrence Rosebar, 53, of Washington, D.C., has been indicted on charges alleging that he defrauded customers of his home improvement business and personal creditors, as well as on charges alleging that he made false statements in proceedings in the U.S. Bankruptcy Court, U.S. Attorney Channing D. Phillips announced today. Rosebar also is accused of defrauding government programs that aid unemployed people and needy families.
A grand jury returned a 45-count superseding indictment on June 9, 2016, in the U.S. District Court for the District of Columbia. The superseding indictment includes a total of 26 bankruptcy-related charges first filed against him in an indictment in February 2016, and adds 19 new charges related to the bankruptcy proceedings and two other alleged fraud schemes.
Rosebar is charged with 32 federal counts, including 26 counts of concealment of bankruptcy assets; two counts of making false declarations in bankruptcy; one count of making a false oath or account in bankruptcy; and three counts of wire fraud. He additionally is charged with 13 counts of violating District of Columbia laws, including two counts of conspiracy to commit first-degree fraud and 11 counts of first-degree fraud. The indictment also seeks forfeiture of a money judgment representing all proceeds of any criminal acts outlined in the federal charges.
Rosebar, who pleaded not guilty to charges in the first indictment, is to be arraigned on the new charges on June 22, 2016, by the Honorable Senior Judge Thomas F. Hogan.
“As alleged in the indictment, this home improvement contractor made false statements in bankruptcy proceedings, defrauded clients and creditors, and cheated government programs,” said U.S. Attorney Phillips. “The prosecution of this case reflects our broader determination to protect consumers and government programs from fraud.”
According to the indictment, Rosebar operated businesses under several names, including EMR Construction Contractors. From at least February 2008 through January 2015, the indictment alleges, Rosebar misrepresented himself to clients as a licensed home-improvement, electrical and heating/ventilation/air conditioning (HVAC) contractor. However, at no time during that period did Rosebar have a business or professional license from the District of Columbia Department of Consumer and Regulatory Affairs.
Rosebar recruited customers at home improvement stores, through referrals, and by acting as a sub-contractor on projects. According to the indictment, he negotiated contracts with customers for substantial home improvement or HVAC projects, which he did not intend to complete. He required an initial payment prior to starting work, hired unskilled day laborers or family members for the projects, and then abandoned job sites after doing minimal or otherwise insufficient work, the indictment alleges. The indictment includes charges related to 10 such projects, in which clients paid over $500,000, from 2008 through 2014.
In addition, according to the indictment, Rosebar filed three times for bankruptcy in the period between 2008 and 2013. The first case was dismissed within two months of its filing. The second case ran from 2008 through its dismissal in 2011. The third case was filed in 2013.
The indictment alleges that, in one of his bankruptcies, Rosebar concealed from his creditors nearly $300,000 of earnings generated between 2008 and 2010. In another of the bankruptcy cases, according to the indictment, he made false declarations about his earnings in court filings and at a meeting of creditors. All told, according to the indictment, since 2008, Rosebar has taken in around $800,000, mostly from home-improvement clients, without paying his creditors, and without disclosing the bulk of these earnings properly in bankruptcy.
The indictment also accuses Rosebar of receiving benefits to which he was not entitled from the District of Columbia’s Department of Human Services. From 2010 until 2014, according to the indictment, Rosebar received benefits through the Temporary Assistance for Needy Families program and Supplemental Nutrition Assistance Program after falsely reporting that he had no income, was unemployed, and had no assets other than his family home.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the indictment, U.S. Attorney Phillips commended the work of Assistant U.S. Attorney John Marston, who is prosecuting the case. He also commended the efforts of Criminal Investigator Stephen Cohen of the U.S. Attorney’s Office, who investigated the case, as well as Paralegal Specialists Jessica Mundi and John Lowell, Assistant U.S. Attorney Arvind K. Lal, Chief of the Office’s Asset Forfeiture and Money Laundering Section, and Assistant U.S. Attorney Philip A. Selden, now with the U.S. Attorney’s Office for the District of Maryland. Finally, U.S. Attorney Phillips expressed appreciation for the assistance provided by the Metropolitan Police Department and the District of Columbia Office of the Inspector General.
Hartford Man Sentenced to 8 Years in Federal Prison for Gang-Related Narcotics TraffickingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two Hartford men who were involved in a gang-related narcotics trafficking ring were sentenced this week in New Haven federal court.
On June 8, U.S. District Judge Jeffrey Alker Meyer sentenced GABRIEL HORACE WILLIAMS-BEY, a.k.a. “G Money,” “Money” and “Mugga,” 27, to 96 months of imprisonment, followed by four years of supervised release. On June 9, Judge Meyer sentenced SHAQILLE BROWN, a.k.a. “Shaq,” 23, to 18 months of imprisonment for violating his probation.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force, which includes the Hartford Police Department, into narcotics trafficking by members and associates of WestHell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” as the leader of the WestHell street gang who, along with several associates, distributed crack cocaine in the Westland Street area of Hartford. In March 2014, WILLIAMS-BEY supplied crack cocaine to Scott.
WILLIAMS-BEY’s criminal history includes multiple state narcotics convictions and a state firearms conviction. He was on state probation at time of this offense.
On April 24, 2014, a grand jury returned a 52-count indictment charging Scott, WILLIAMS-BEY, BROWN and 22 others with various offenses. WILLIAMS-BEY eluded capture for more than two months before he was arrested on June 30, 2014. On May 5, 2015, he pleaded guilty to one count of conspiracy to distribute 28 grams or more of cocaine base (“crack”). He has been detained since his arrest.
On December 23, 2014, BROWN pleaded guilty to one count of using a telephone to facilitate the distribution of crack cocaine and, on August 24, 2015, he was sentenced to five years of probation. BROWN had been detained from May 2014 until the date of his sentencing.
As a condition of probation, Judge Meyer ordered BROWN to take part in mental health counseling and drug treatment. In early October 2015, BROWN missed a mental health treatment session and failed to notify the U.S. Probation Office that he had moved out of his apartment.
On October 14, 2015, Hartford Police stopped a car in which BROWN was a passenger. The driver of the car, a convicted felon, possessed a distribution quantity of crack cocaine, and a search of the car revealed a loaded handgun with an obliterated serial number. BROWN, who admitted that he had handled the firearm, was arrested and subsequently sentenced in state court to 18 months of imprisonment.
Yesterday, Judge Meyer sentenced BROWN to 18 months of imprisonment, followed by six months in a halfway house, for violating the conditions of his probation. BROWN will begin serving his federal sentence when he completes his state sentence.
On March 21, 2016, Melkuan Scott was sentenced to 13 years of imprisonment.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
GTCR Agrees to Divest Third Largest Media Contact Database Provider in the U.S. in Order to Proceed with Acquisition of PR NewswireRead the Press Release
Divestiture Prevents a Duopoly in the Provision of Media Contact Databases to Businesses and Other Organizations
The Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed acquisition, and simultaneously filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit.
Businesses, nonprofits, and other organizations rely on media contact databases to identify journalists and other influencers for public relations purposes. Cision is the largest media contact database provider in the United States through its flagship public relations workflow software suite. PR Newswire is the third-largest media contact database provider in the United States through its Agility workflow software suite and competes directly with Cision to provide media contact databases to customers. According to the department’s complaint, GTCR’s acquisition of Agility would eliminate one of the two meaningful competitors to Cision in the provision of media contact databases, creating a duopoly in the market and further enhancing Cision’s dominant market position. Under the terms of the proposed settlement, GTCR must divest Agility to Innodata Inc., or to another buyer approved by the United States.
“Media contact databases are important to the public-relations activities of many American businesses and organizations,” said Principal Deputy Assistant Attorney General Renata B. Hesse, head of the Justice Department’s Antitrust Division. “Today’s settlement protects these customers and preserves competition in the market for media contact databases.”
GTCR’s acquisition of PR Newswire is also being reviewed by the United Kingdom’s Competition & Markets Authority (CMA). The department cooperated closely with the CMA throughout the course of its investigation.
GTCR is a private equity firm headquartered in Chicago. GTCR owns Cision, a leading public relations workflow software company that had approximately $227 million in U.S. revenues in 2015.
UBM is a global events marketing and communications services business headquartered in St. Helier, Jersey. UBM owns PR Newswire, a leading provider of commercial newswire services. PR Newswire’s 2015 U.S. revenues totaled approximately $209 million.
As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Scott Scheele, Chief, Telecommunications & Media Enforcement Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 7000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the proposed settlement upon finding that it is in the public interest.
GTCR CIS
GTCR PFJ
GTCR Stipulation & Order
GTCR Explanation
GTCR Complaint
Frank Carter Arrested in Illegal Video Gambling Device OperationRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that FRANK TALMADGE CARTER, 56, was arrested on June 8, 2016.
On Tuesday, May 25, 2016, a federal grand jury in Raleigh returned a 2 count Indictment against Carter.
The Indictment charges Carter with Conspiracy to Conduct an Illegal Gambling Business, 18 U.S.C. § 371 (Count 1) and Conducting an Illegal Gambling Business, 18 U.S.C. § 1955 (Count 2).
If convicted of counts 1 and 2 (Conspiracy and Conducting an Unlawful Gambling Business), CARTER faces a maximum term of imprisonment of 5 years for each count and a maximum fine of $250,000 for each count or twice gross gain, whichever is greater. CARTER was a resident of Cumberland County at the time of the offenses charged.
Cumberland County Sheriff Earl R. “Moose” Butler stated: “The Cumberland County Sheriff’s Office has always and will continue to strive to work in conjunction with local, state, and federal agencies to enforce the gambling laws of State of North Carolina and the United States.”
The charges and allegations contained in the indictment are merely accusations. The defendant is considered innocent unless and until proven guilty in a court of law.
The case is being investigated by the Cumberland County Sheriff’s Office and the United States Department of Homeland Security.
Former director of Cleveland VA Medical Center sentenced to nearly five years in prison for taking money from design firmRead the Press Release
The former director of the Cleveland and Dayton VA Medical Center was sentenced to 57 months in prison for working as a consultant for and taking money and other things of value from a design firm bidding on VA jobs and sharing confidential information about construction projects while still employed by the VA, law enforcement officials said.
William D. Montague, 63, of Brecksville, previously pleaded guilty to 64 counts, including Hobbs Act conspiracy, conspiracy to commit honest services mail fraud, violating the Hobbs Act, money laundering, multiple counts of wire fraud, mail fraud, disclosing public contract information, and other charges.
Montague has paid approximately $390,000 in restitution and forfeiture.
“As a Veterans Affairs Medical Center Director, William Montague undertook a responsibility to serve the public but instead he chose to become self-serving accepting bribes and kickbacks in exchange for favorable official actions,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Field Office. “The FBI and our law enforcement partners will continue to aggressively pursue those who abuse the trust we place in public servants to act in the community’s best interest.”
“Our joint investigation with the FBI resulted in the conviction of a former VA Medical Center Director who abused his position by taking bribes and manipulating the government's contracting process for personal gain,” said Gregg Hirstein, Veterans Affairs, Office of Inspector General Special Agent in Charge, Central Field Office. “We are pleased that this sentence reflects the seriousness of the crimes and believe this conviction will serve as a deterrent to others who might consider defrauding the Department of Veterans Affairs and our country's veterans.”
Montague served as director of the Cleveland VA Medical Center from 1995 until February 3, 2010. On March 11, 2011, Montague began working as director of the Dayton VA Medical Center, a position he held through December 17, 2011, according to court documents.
Court documents detail interactions between Montague and a company identified as Business 75, an integrated design firm with offices throughout the United States, including New York, Illinois, Virginia, Missouri, and California. The company performed work for the VA directly and through its participation in joint ventures and other teaming agreements.
Montague, Business 75, and employees of the company conspired to defraud the VA of its right to the honest and faithful service of Montague through bribery and kickbacks and to defraud the VA and other potential VA contractors by means of false and fraudulent pretenses beginning in 2010, according to court documents.
Montague secretly used his position as Dayton VA Medical Center director to enrich himself and his designees (including House of Montague, a financial services company Montague operated) by soliciting and accepting gifts, payments, and other things of value from Business 75 in exchange for favorable official actions. He also solicited money and a consulting contract from Business 75 in exchange for information related to VA contracts and projects, which would benefit Business 75, Business 75’s principal and their designees, according to court documents.
This was done to give Business 75 an advantage in obtaining VA contracts and projects. Montague gave false and misleading information to VA employees about his reasons for requesting VA documents and information, according to court documents.
The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon and Paul Flannery following an investigation by the FBI and United States Department of Veterans Affairs-Office of Inspector General.
Former Lake City Borough Wastewater Treatment Plant Operator Pleads Guilty to Violating the Clean Water ActRead the Press Release
ERIE, Pa. - A resident of Girard, Pennsylvania pleaded guilty in federal court to a charge of violating the Clean Water Act by tampering with required monitoring methods and submitting false statements, United States Attorney David J. Hickton announced today.
Mark Ventresca, 52, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from December 2008 to December 2012, Ventresca engaged in violations of the Clean Water Act and a National Pollutant Discharge Elimination System (NPDES) permit by providing false information on the Discharge Monitoring Reports submitted to the Pennsylvania Department of Environmental Protection. According to information provided to the Court, Ventresca, who was a certified wastewater operator licensed by the Commonwealth of Pennsylvania, was employed by the Lake City Borough Wastewater Treatment Plant as the operator of the Plant until he gave up his wastewater operating license on March 25, 2014 and resigned as the Plant operator. The Lake City Borough Wastewater Treatment Plant (the Plant) is located at 1150 Maple Avenue, Lake City, Erie County, Pennsylvania. The Plant operated pursuant to a National Pollutant Discharge Elimination System (NPDES) permit, effective December 1, 2009 through November 30, 2014. Subject to specific discharge limitations, the permit allowed direct wastewater discharge into the Elk Creek, a water of the United States, which flows 2.08 miles into Lake Erie, an interstate waterway and a navigable-in-fact water of the United States. The Presque Isle State Park and swimming beaches are approximately six miles downstream from the Plant’s outfall. The Erie County Health Department conducted inspections of the Plant in August 2012 and January 2013 and found discrepancies between the water sampling test results which were reported by Ventresca and the actual sample test results obtained from a contracted laboratory. The matter was referred to the Pennsylvania Department of Environmental Protection for further inquiry, and a criminal investigation referral was made to the EPA.
According to information presented in court, the Plant permit set discharge limits for pollutants, including, for example, Total Suspended Solids (TSS), Fecal Coliform, Total Phosphorus, pH, Dissolved Oxygen (DO), and Total Residual Chlorine (TRC). During the timeframe between December 2008 and December 2012, Ventresca engaged in violations of the Lake City Borough Wastewater Treatment Plant NPDES permit, in part, by 1) failing to treat the wastewater by not adding adequate amounts of chemical reagents to disinfect the pollutants; 2) failing to properly test for pH, Dissolved Oxygen (DO) and/or Total Residual Chlorine (TRC) by taking a daily grab sample as required under the permit; 3) falsifying sampling results for pH, DO and TRC when no daily samples were collected; 4) falsifying analytical laboratory results for the weekly 24-hour composite sample for phosphorus; 5) failing to use a required sampling method by substituting an 8-hour composite sampler for the required 24-hour composite sampler to collect phosphorus samples; 6) falsifying analytical laboratory results for the weekly grab sample for fecal coliform; 7) falsifying weekly 24-hour composite sample for Total Suspended Solids (TSS); and, 8) discharging pollutants into waters of the United States in violation of numerical permit limits. To cover up his failure to properly operate and maintain the Plant in accordance with the permit, Ventresca routinely submitted false sampling results in monthly Discharge Monitoring Reports (DMRs) to the Pennsylvania Department of Environmental Protection. The NPDES permit required submission of monthly DMRs which were supposed to contain sampling results representative of the monthly discharges. The criminal charge to which Ventresca pleaded guilty specifically identified examples of Ventresca’s false statements concerning the testing results for Fecal Coliform and Phosphorus. Based upon the violations of the Lake City Borough Wastewater Treatment Plant NPDES permit, PADEP issued a Consent Order and Agreement (CO&A) to Ventresca. On March 25, 2014, Ventresca signed his CO&A and surrendered his wastewater operator’s license. At the same time, he resigned as the Plant operator.
“Our office has taken an aggressive approach on environmental enforcement because it is the right thing to do for people and future generations,” said U.S. Attorney Hickton. “We are making effective enforcement of the federal Clean Air and Clean Water acts an important priority of our work.”
“Government regulators rely on accurate data to ensure water quality is maintained and this case underscores the serious nature of falsified sampling and laboratory data reports.” said Jennifer Lynn, Assistant Special Agent in Charge of EPA’s criminal enforcement program in Pennsylvania. “The failure to follow the requirements of the Clean Water Act jeopardizes public health and could have resulted in the otherwise undetected pollution of recreational waterways near this wastewater discharge facility.”
Judge Cercone scheduled sentencing for Nov. 21, 2016 at 12:45 p.m. The law provides for a total sentence of 2 years in prison, a fine of $10,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court released Ventresca on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The United States Environmental Protection Agency, Criminal Investigation Division; the Pennsylvania Department of Environmental Protection, Northwest Regional Office; the Pennsylvania Office of Attorney General, and the Erie County, Pennsylvania Health Department conducted the investigation that led to the prosecution of Ventresca.
Former Doña Ana County Clerk’s Office Employee Sentenced to Prison for Federal Theft and Identity Fraud ConvictionRead the Press Release
ALBUQUERQUE – Maria L. Ceniceros, 43, of Anthony, N.M., was sentenced today in federal court in Las Cruces, N.M., to 18 months in prison followed by three years of supervised release for her theft of government property and aggravated identity theft conviction.
Ceniceros and co-defendant Armando Gutierrez-Torres, 51, a Mexican national, were charged in June 2015, with conspiracy to commit theft of government property and aggravated identity theft in a criminal complaint. The charges in the complaint arose out of a scheme to steal money from the United States by using the identities of individuals without their knowledge or consent to generate and cash fraudulent federal income tax refund checks. According to the criminal complaint, Ceniceros and Gutierrez-Torres conspired with each other and others to perpetuate the scheme, and that Ceniceros abused her position as a Document Technician at the Doña Ana County Clerk’s Office to facilitate the scheme.
Law enforcement authorities learned of the scheme in mid-May 2015, when Ceniceros approached a co-worker in the Doña Ana County Clerk’s Office and attempted to solicit his participation in the scheme. The co-worker reported the solicitation to law enforcement authorities and agreed to assist officers in conducting an undercover investigation into Ceniceros and Gutierrez-Torres. During the investigation, Ceniceros provided three fraudulent federal income tax refund checks to the co-worker so that he could cash the checks with the understanding that the proceeds would be divided between Ceniceros, Gutierrez-Torres and the co-worker. Ceniceros and Gutierrez-Torres were arrested on related state charges on May 29, 2015.
On April 27, 2016, Ceniceros pled guilty to a felony information charging her with conspiracy to commit theft of public money and conspiracy to commit aggravated identity theft. Ceniceros admitted that she accessed the Voter Registration database at work and recorded the names, dates of birth and social security numbers of 111 people whose identities she knew were going to be used to file fraudulent federal income tax returns in order to obtain fraudulent refund checks, she also agreed to mail fraudulent federal income tax returns and cash refund checks for Gutierrez-Torres.
On Oct. 13, 2015, Gutierrez-Torres entered a guilty plea to a felony information charging him with conspiracy to commit theft of public money and conspiracy to commit aggravated identity theft. Gutierrez-Torres admitted that in Nov. 2014, he asked Ceniceros for the identifiers of people born in 1995, to be used to file fraudulent federal income tax returns in order to obtain fraudulent refund checks. Gutierrez-Torres further admitted that he asked Ceniceros to mail fraudulent federal income tax returns to the IRS and to cash refund checks in the total amount of $11,963.73. Under the terms of his plea agreement, Gutierrez-Torres will be sentenced to 24 months in prison. He will be deported following his term of imprisonment. A sentencing hearing has yet to be scheduled.
This case was investigated by IRS Criminal Investigation and the Doña Ana County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Former Catonsville Resident Sentenced to 70 Months in Prison for Distributing Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Michael P. Strange, age 56, formerly of Catonsville, Maryland, now of Greenville, South Carolina, today to 70 months in prison followed by 25 years of supervised release for distributing child pornography. Judge Hollander ordered that upon his release from prison, Strange must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, in April 2015, a Maryland State Police investigator connected to the internet identified files containing child pornography that Strange had available for download. On April 27, 2015, the investigator downloaded three video files depicting children engaged in sexually explicit conduct.
A search warrant was executed at Strange’s residence in Catonsville on June 12, 2015, and law enforcement seized two laptops. One laptop over 150 videos of child pornography, including the three videos downloaded on April 27, and the other laptop contained search terms indicative of child pornography.
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 praised the HSI Baltimore and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Florida Woman Pleads Guilty to Acting as Illegal Agent of Foreign Government and Conspiring to Commit Money LaunderingRead the Press Release
Amin Yu, 54, of Orlando, Florida, pleaded guilty today to acting in the United States as an illegal agent of a foreign government without prior notification to the Attorney General and conspiring to commit international money laundering.
The plea agreement was announced by Assistant Attorney General for National Security John P. Carlin and U.S. Attorney A. Lee Bentley III of the Middle District of Florida.
“Amin Yu admitted to secretly serving as an agent of the Chinese government,” said Assistant Attorney General Carlin. “Yu obtained and illegally exported items and technology related to marine submersible vehicles at the direction and control of a state-owned entity in China. Protecting our national assets by disrupting efforts by foreign governments to steal sensitive equipment and technology will continue to be a high priority of the National Security Division.”
“Amin Yu made hundreds of thousands of dollars by acting covertly in Orlando on behalf of the Chinese government and by skirting U.S. export laws and regulations,” said U.S. Attorney Bentley. “The enforcement of U.S. laws and regulations related to the national security of the United States remains a top priority for our office.”
According to the plea agreement, from at least 2002 until February 2014, at the direction of co-conspirators working for Harbin Engineering University (HEU), a state-owned entity in the People’s Republic of China, Yu obtained systems and components for marine submersible vehicles from companies in the United States. She then illegally exported those items to the PRC for use by her co-conspirators in the development of marine submersible vehicles – unmanned underwater vehicles, remotely operated vehicles and autonomous underwater vehicles – for HEU and other state-controlled entities. Yu illegally exported items by failing to file electronic export information (EEI), as required by U.S. law, and by filing false EEI. In particular, Yu completed and caused the completion of export-related documents in which she significantly undervalued the items that she had exported and provided false end user information for those items.
Yu faces a maximum penalty of 10 years in prison for acting as an illegal agent of a foreign government and up to 20 years in prison for conspiring to commit money laundering. A sentencing hearing is scheduled for Aug. 29, 2016.
This case was investigated by the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Internal Revenue Service-Criminal Investigation and the Naval Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Daniel C. Irick of the Middle District of Florida and Trial Attorneys David C. Recker and Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section.
Yu Plea Agreement
Florida Man Sentenced to 210 Months in Prison for Orchestrating A Multi-Million Dollar Income Tax Fraud SchemeRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of FRANTZ PIERRE, 36, for orchestrating a multi-million dollar tax fraud scheme and engaging in money laundering. PIERRE, who pleaded guilty on October 27, 2015 to counts one and two of the indictment, was sentenced on June 9, 2016 before U.S. District Judge Donovan W. Frank in U.S. District Court in St. Paul, Minn.
"Today's announcement regarding the 210 month sentencing of Frantz Pierre exemplifies IRS Special Agents' intense focus and rigorous pursuit of identity theft and refund fraud crimes," said Shea Jones, Special Agent in Charge of IRS Criminal Investigation, St. Paul Field Office. “Individuals such as Frantz Pierre who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law.”
According to documents filed in court, from July 2010 through May 2011, PIERRE was the leader and organizer of a scheme to steal from the federal government by filling hundreds of fraudulent income tax returns. PIERRE and his co-conspirators used stolen social security numbers and other personal identifiers as well as fabricated employment and income information to complete hundreds of income tax returns and to claim millions of dollars in fraudulent tax refunds.
According to documents filed in court, as part of the scheme, PIERRE and his co-conspirators would establish fictitious tax preparation businesses and then open multiple bank accounts in the names of the fictitious businesses. In addition, PIERRE directed the IRS to deposit the fraudulently obtained income tax refunds into the bank accounts set up by the defendant and his co-conspirators. In total, PIERRE and his co-conspirators submitted approximately 776 fraudulent tax returns to the IRS, resulting in $5,249,935 in tax refunds to be deposited into the fictitious companies’ bank accounts.
As part of his sentence, PIERRE was ordered to forfeit his house in Parkland, Florida and pay $906,556 in restitution.
This case was prosecuted by Assistant U.S. Attorneys Joseph Thompson and Lola Velazquez-Aguilu.
This case is the result of an investigation conducted by the Internal Revenue Service- Criminal Investigation Division.
Defendant Information:
FRANTZ PIERRE, 36
Parkland, FL
Convicted:
- Conspiracy to Defraud the Government, 1 count
- Money Laundering, 1 count
Sentenced:
- 210 months in prison
- $906,556 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600