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10 June 2016
Five Men Arrested for Operating A Credit Card Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that five defendants are under arrest and charged by criminal complaint with operating a credit card fraud scheme. Under arrest are:
• Kyle Bertrand
• Paul Kozlyuk
• Richard Lipke
• Michael Gerone
• Herbert StreetThe defendants are charged with conspiracy to commit wire fraud, aggravated identity theft, and trafficking in unauthorized access devices. The charges carry a mandatory minimum penalty of two years in prison, a maximum of 20 years, and a $250,000 fine.
“This case serves as a reminder that consumers should never provide credit card information to anyone but known, trusted companies and persons,” said U.S. Attorney Hochul. “In addition, legitimate companies will seldom if ever threaten to terminate a service unless credit card or other financial information is provided immediately over the telephone.”
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, between January 2015 and July 2015, the defendants made fraudulent and unauthorized credit card purchases over the phone at various stores in the Rochester area. The purchases were made at stores such as All County Lawn, Tractor, and Trailer, Home Depot, Victor Power Equipment, Charlotte Appliance, Admar Construction Equipment, Brodner Equipment, Del Monte Spa, Wehner Mower, Inc. Bentley Brothers Tractor Equipment Supplier, GBG Inc., Little Power Shop, Diesel Power Products, and Best Tile.
The defendants randomly called people on the phone and stated that their cell phone or cable would be shut off unless they provided credit card information over the phone to settle delinquent bills. The defendants then used the stolen credit card information to make the purchases.
Items purchased by the defendants using the stolen credit cards included snow plows, gas generators, saws, freezers, electric ranges, dishwashers, microwaves, washers and dryers, gift cards, jet skis, and furnaces. Further investigation determined that some of the items were listed for sale on Craigslist.
A search warrant was executed at the residence of Michael Gerone and law enforcement officers recovered some of the items includinf a refrigerator, dishwasher and furnace. Richard Lipke was also found in possession of some of the items.
Hochul further stated, “Consumers should know common sense safety measures which can be taken. Upon receiving a call that a bill is allegedly owed, obtain the telephone number and name of the caller. Next, look up or research for yourself whether you owe the bill, and further, the customer service information for that creditor. Never be rushed, and threats to terminate service are often red flags for a fraudulent scheme. These and other tips can be found at the StopFraud.gov.”
The complaint is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.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.
Federal Jury Finds Fayetteville Man Guilty of Three Violent Hobbs Act Robberies and Firearm OffensesRead the Press Release
ELIZABETH CITY – The United States Attorney’s Office for the Eastern District of North Carolina announced that a federal jury in Elizabeth City found SMITH MERINORD guilty of three counts of Hobbs Act Robberies and for the use and carrying a firearm in furtherance of a crime of violence, and the firearm was brandished.
MERINORD and a co-defendant were named in an Indictment filed on April 29, 2015. MERINORD entered the Advance Auto Parts Store on Owen Drive in Fayetteville on November 2, 2013 armed with a small Uzi. He threatened the employees with the firearm during the robbery and raped and sexually assaulted a female employee before fleeing with cash. Later that day, MERINORD and a co-defendant robbed another Advanced Auto on Roberts Avenue in Lumberton. MERINORD again threatened store employees with the Uzi and fled with cash. On November 16, 2013, MERINORD and an accomplice entered the Red Lobster located on McPherson Church Road in Fayetteville and held the manager at gunpoint and stole cash before fleeing. Off duty officers and other law enforcement apprehended MERINORD and his accomplice in the CarMax parking lot located near the Red Lobster. MERINORD had a small Uzi in his waistband.
At sentencing, MERINORD faces a mandatory minimum sentence of 57 years to life imprisonment on the gun counts and up to 60 years on the Hobbs Act Robbery Counts.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Fayetteville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorneys Frank Bradsher and Peggah Wilson represented the government.
Erie Woman Sentenced to 5 Years in Federal Prison for Role in Cocaine Trafficking RingRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 60 months in prison and 4 years of supervised release on her conviction of violating federal drug laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Sammar Aimee Melchor, 34.
According to information presented to the court, from June 2013 through February 2015, Melchor engaged in a conspiracy to distribute and possess with intent to distribute between five and fifteen kilograms of cocaine which she obtained from other co-conspirators. The court was also advised that on or about October 28, 2014, Melchor distributed and possessed with intent to distribute 6 ounces of cocaine. The court was advised that the cocaine was distributed in Erie as part of a large network transporting cocaine from Mexico into Texas, and from Texas to Erie, Pennsylvania concealed in hidden compartments in vehicles.
Judge Cercone also ordered the forfeiture of two cellular telephones and a 2004 Toyota Matrix vehicle that were utilized by the defendant in the commission of the offense.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Homeland Security Investigations; the Drug Enforcement Administration; the Pennsylvania State Police; U.S. Border Patrol; the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section; the U.S. Postal Inspection Service; the U.S. Marshals Service; and the Bureau of Alcohol Tobacco Firearms and Explosives for the investigation leading to the successful prosecution of Melchor.
East Bay Home Health Care CFO Pleads Guilty to Failing to Truthfully Account for and Pay Employment TaxesRead the Press Release
OAKLAND – Muzaffar Hussain pleaded guilty in federal court today to failing to account for and pay employment taxes to the United States, announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.
In pleading guilty, Hussain, 68, of Pleasanton, admitted that as CFO of Crossroads Home Health Care, Inc., he had the duty to file the Employer’s Quarterly Federal Tax Returns [Forms 941] with the Internal Revenue Service (“IRS”) and to pay over the employment taxes. Such taxes, referred to as trust fund taxes, include income tax, social security tax, and a hospital insurance (Medicare) tax collected from the wages of Crossroads’ employees. Hussain admitted he knew the trust fund taxes were required to be paid to the IRS and that the funds were not monies he could use or borrow. Further, Hussain acknowledged that during the relevant period, he had sole authority and control over Crossroads’ Bank of America account in which monies for the trust fund taxes were deposited. Nevertheless, for each pay period between July 1, 2004, and February 27, 2008, Hussain transferred funds in an amount equal to, or close to, the amount of employment taxes from the Bank of America account to other bank accounts. Hussain thereafter used the monies, including the trust fund taxes, to fund other business and personal interests. Hussain also admitted to knowingly causing the submission to the IRS of false Forms 1120 for Crossroads—the false forms underreported gross receipts received from Medicare. In sum, the total amount of taxes either underpaid or underreported was $495,000.
On July 30, 2015, a federal grand jury returned a superseding indictment charging Hussain with thirteen counts of making or subscribing a false tax return, in violation of 26 U.S.C. § 7206(1); seventeen counts of willful failure to truthfully account for an pay over taxes, in violation of 26 U.S.C. § 7202; and one count of structuring transactions to evade reporting requirements, in violation of 31 U.S.C. § 5324(a)(3). Under the plea agreement, Hussain pled guilty to one count of willful failure to truthfully account for and pay over taxes, in violation of 26 U.S.C. § 7202.
Hussain currently released on bond. His sentencing hearing is scheduled for January 20, 2017, at 9:30 a.m. before the Honorable Jon Tigar, U.S. District Court Judge, in Oakland. The maximum statutory penalty for a violation of 26 U.S.C. § 7202 is five years’ imprisonment and a fine of $250,000, plus restitution if appropriate. Additional fines and a term of supervised release also may be ordered, however, any sentence will be imposed only after consideration of the U.S. sentencing guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. s 3553.
Assistant U.S. Attorneys Cynthia Stier and Jose Olivera are prosecuting the case with the assistance of Kathy Tat. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Dominican National Sentenced to 51 Months in Prison for Illegal Reentry to the U.S.Read the Press Release
PROVIDENCE, R.I. – Manuel Soto-Pena, 31, a Dominican national who formerly resided in Woonsocket, was sentenced today to 51 months in federal prison, having admitted to the court that he entered the United States illegally on three occasions, twice after having been deported.
Soto-Pena, indicted by a federal grand jury on October 7, 2015, on one count of illegal reentry, pleaded guilty on March 25, 2016, as charged in the indictment.
Manuel Soto-Pena’s sentence, imposed by United States District Court Chief Judge William E. Smith, is announced by United States Attorney Peter F. Neronha and Russell Hott, Acting Field Office Director for ICE Enforcement and Removal Operations.
According to court records and information presented to the court, Mr. Soto-Pena was first removed from the United States in February 2011, after it was learned that he had entered the country illegally and was using the identity of a U.S. Citizen. He was removed from the country a second time in June 2012, after having reentered the country illegally and subsequently was convicted in Rhode Island state court on a drug trafficking charge.
According to court records and information presented to the court, sometime after being deported in June 2012, Mr. Soto-Pena entered the United States illegally for a third time. He was arrested in Rhode Island in January 2014 and subsequently convicted in state court on a charge of felony domestic assault. On September 23, 2015, after having completed serving a state prison sentence, Mr. Soto-Pena was turned over to the custody of ICE.
The case in U.S. District Court was prosecuted by Assistant U.S. Attorney Zechariah Chafee.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
District Man Sentenced to 24 Years in Prison for 2014 Slaying of His Estranged WifeRead the Press Release
WASHINGTON – Michael Gayle 35, of Washington, D.C., was sentenced today to a 24-year prison term on a charge of second-degree murder stemming from the brutal strangling and stabbing of his estranged wife at her home in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Gayle pled guilty in April 2016, in the Superior Court of the District of Columbia. He was sentenced by the Honorable Lynn Leibovitz. Following his prison term, Gayle will be placed on five years of supervised release.
According to the government’s evidence, in the early morning hours of June 29, 2014, Gayle went to the home of his wife, 31-year-old Eboni Domally, in the 5200 block of Queens Stroll Place SE. On that date, Gayle was no longer living at the home, having moved out over two months earlier. After arriving at the home, Gayle strangled Ms. Domally, and then later stabbed her, causing extensive sharp force injuries to Ms. Domally. These injuries eventually led to Ms. Domally’s death. Ms. Domally’s young son observed the events and ran to get help.
Gayle left the home before help arrived. He was ultimately arrested on July 22, 2014, by the U.S. Marshals Service and the Capital Area Regional Fugitive Task Force at his mother’s home in Charlotte, N.C. He has been in custody ever since.
Gayle pled guilty in 2012 in the Circuit Court for Prince George’s County, Md., to assault and burglary charges stemming from another incident in September 2011 with his wife.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by the U.S. Marshals Service, the Capital Area regional Fugitive Task Force, and the Charlotte-Mecklenburg Police Department. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Patricia A. Riley, Special Counsel to the U.S. Attorney; Victim/Witness Advocate Marcia Rinker; Paralegal Specialists Benjamin Kagan-Guthrie and Kendra Johnson; former Lead Paralegal Specialist Kwasi Fields. and Librarian Lisa Kosow. Finally, he commended the work of Assistant U.S. Attorneys Magdalena Acevedo and Amy H. Zubrensky, who investigated and prosecuted the case.
Department of Justice and Staff of the Federal Trade Commission Highlight Consumer Benefits of Expanding Competition for Legal ServicesRead the Press Release
Agencies Urge North Carolina General Assembly to Consider the Competitive Benefits of Legislation Allowing Interactive Websites to Generate Legal Forms for Consumers
The Department of Justice’s Antitrust Division and the staff of the Federal Trade Commission have submitted a joint statement to the North Carolina legislature on the potential competition and consumer benefits of legislation that would allow websites to generate legal forms for consumers. Websites that offer this type of interactive software may be more cost-effective for some consumers, exert downward price pressure on licensed lawyer services, and promote more efficient and convenient access to legal services.
The agencies also noted that scope-of-practice laws can have valid consumer protection justifications. However, they recommend that such restrictions should be imposed only where there is credible evidence of likely harm to consumers. Any restrictions should be narrowly tailored to address the harm and not unnecessarily inhibit new and competitive ways to deliver legal services for the benefit of consumers.
“Competition between lawyers and non-lawyers for certain legal services can drive down prices, provide consumers with new and more convenient options, and expand access to legal services,” said Principal Deputy Assistant Attorney General Renata Hesse of the Antitrust Division. “When analyzing House Bill 436, the North Carolina General Assembly should consider the benefits to consumers and competition that would result from allowing consumers to use interactive software to generate legal forms.”
The joint statement is in response to a request from North Carolina State Senator Bill Cook. The request asked for views on North Carolina House Bill 436, legislation that would exclude from the statutory definition of the practice of law the operation of a website that generates legal documents based on consumer responses to questions presented by interactive software, provided certain conditions are satisfied.
Connecticut Man Pleads Guilty in Manhattan Federal Court to Conspiracy to Obstruct Justice and Money Laundering Charges in Connection with Scheme to Hide Assets from Two Federal Courts and the SECRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROBERT A. OLINS pled guilty in Manhattan federal court today to charges of conspiracy to obstruct justice and money laundering. The charges relate to OLINS’s scheme to hide his assets – including his multimillion-dollar art and antiques collection (the “Art and Antiques Collection”), which was subject to liquidation to satisfy a $3.3 million disgorgement judgment entered by a federal court in California – from federal courts in New York and California, in connection with an enforcement proceeding brought by the Securities and Exchange Commission (the “SEC”), and to launder the money derived from the scheme.
OLINS was arrested on August 26, 2015, and pled guilty today before United States District Judge Jesse M. Furman.
U.S. Attorney Preet Bharara said: “As he admitted today, Robert Olins carried out a scheme to deceive and hide assets from two federal courts, a court-appointed receiver, and the SEC. Olins repeatedly lied to get approval for transactions, and used the proceeds to pay for personal luxuries, rather than to satisfy court judgments, as he was required to do.”
According to the Indictment and statements made at today’s plea hearing:
On February 25, 2011, a federal district court in California (the “California Court”) entered a judgment against OLINS, ordering him to pay disgorgement to the SEC in the amount of $3.3 million (the “Disgorgement Order”). On July 27, 2011, the SEC filed an action in federal court in the Southern District of New York (the “New York Court”) registering the Disgorgement Order and requesting the appointment of a receiver to liquidate the Art and Antiques Collection and to apply the proceeds of such liquidation toward the Disgorgement Order. On May 29, 2012, the New York Court issued an order (the “Receiver Order”) appointing American Bank and Trust Company (“AB&T”) as Receiver, as AB&T had a first and prior security interest in the Art and Antiques Collection. The Receiver Order prohibited OLINS, as well as any other person or entity with “possession, custody or control” of any item from the Art and Antiques Collection, from engaging in any form of side deal, self-help, set-off or transaction not approved by the New York Court.
From August 2011 through August 2015, OLINS engaged in a conspiracy to obstruct the administration of justice in the New York Court and the California Court, by among other misrepresentations, making false statements in order to mislead those courts concerning OLINS’s financial condition, and to obtain court approval for certain transactions concerning the Art and Antiques Collection. OLINS then received money from the sale of items in the Art & Antiques Collection that should have gone to the SEC and AB&T, and instead used the proceeds for his own purposes, including to make payments toward the purchase of additional antiques, specifically, a $695,000 set of antique wall brackets. In June 2012, OLINS directed that certain monies he derived from the scheme be wired to a bank account in the Isle of Man, for the purpose of promoting his unlawful conduct of hiding his assets from the Courts, the SEC, and AB&T. Once the money was received in the Isle of Man, OLINS then directed that the money be transferred back into the United States and used it to pay personal expenses.
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OLINS, 59, of West Hartford, Connecticut, faces a maximum sentence of five years in prison, three years of supervised release, the greatest of $250,000, twice the gross pecuniary gain derived from the offense, or twice the gross pecuniary loss to persons other than the defendant resulting from the offense, and a $100 mandatory special assessment on Count One; and a maximum term of 20 years in prison, three years of supervised release, a fine of the greater of $500,000 or twice the value of the funds involved in the transfer, and a mandatory $100 special assessment on Count Five. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by Judge Furman. OLINS is scheduled to be sentenced by Judge Furman on September 29, 2016, at 3:30 p.m.
Mr. Bharara praised the work of the Federal Bureau of Investigation and the United States Postal Inspection Service, and thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Christine I. Magdo and Andrea M. Griswold are in charge of the prosecution.
Cold Case Murder SolvedRead the Press Release
The men responsible for Tony “T-Bone” Canfield’s death pled guilty today in federal court in Sioux City, Iowa.
Courtland Clark, age 26, from Flowery Branch, Georgia, Robert Beaver, age 35, from Sioux City, Iowa, and Devery Hibbler, age 26, from Dumas, Arkansas, were convicted of one count of interference with commerce by robbery. In addition, Clark and Hibbler also pled guilty to one count of use of a firearm during and in relation to a crime of violence causing death.
Evidence at the change of plea hearings revealed: at about 11:00 pm on May 1, 2011, in Sioux City, Iowa, Beaver, Clark, and Hibbler, armed with a single loaded handgun, entered Tony Canfield's home to rob him of his marijuana and his marijuana proceeds. Beaver beat and held Canfield's wife while Clark and Hibbler struggled with, and physically robbed Canfield. Canfield resisted his attackers and attempted to escape the robbery by fleeing from his home. Canfield did not make it to safety; he was shot to death on his front porch by Hibbler.
The three defendants escaped the crime scene and successfully concealed their crimes for nearly five years. They were charged in a Superseding Indictment on April, 19, 2016.
Canfield was targeted for robbery because he was a marijuana dealer whose illegal interstate business earned him large sums of cash. The robbery and murder affected interstate commerce allowing for federal prosecution of the case.
United States Attorney Kevin Techau stated: “This case is a fine example of persistence and cooperation by the Sioux City Police Department, Woodbury County Attorney’s Office and the Federal Bureau of Investigation. Despite a number of obstacles along the way, these three agencies, along with the United States Attorney’s Office, never stopped working toward solving this murder, and bringing those responsible to justice. This case gives notice to those who would commit acts of violence in our communities that no matter what the difficulties, and no matter how long it takes, we will investigate and prosecute such acts of violence to the full extent of the law.”
This case is being prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. The case was referred to the United States Attorney’s Office by the Sioux City, Iowa Police Department and the Woodbury County Attorney’s Office.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Clark, Hibbler, and Beaver remain in custody of the United States Marshal pending sentencing. Pursuant to plea agreements: Hibbler has agreed to serve 35 years in federal prison without the possibility of parole or the right to appeal his conviction and Beaver has agreed to serve 20 years in federal prison without the possibility of parole or the right to appeal his conviction. As charged, all three defendants, (i.e., Clark, Beaver, and Hibbler, each) faced up to life in prison without the possibility of parole, fines of up to $500,000.00, $200.00 in special assessments and up to five years of supervised release following any imprisonment.
The case was investigated by the United States Department of Justice - Federal Bureau of Investigation, Sioux City Iowa Police Department, and the Woodbury County Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-4009.
Follow us on Twitter @USAO_NDIA.
Career Offender from Albuquerque Sentenced to 36 Years for Conviction on Crack Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Gabriel Mirabal, 34, of Albuquerque, N.M., was sentenced late yesterday afternoon to 36 years (432 months) in federal in prison followed by 10 years of supervised release for his conviction on narcotics trafficking and firearms charges. Mirabal’s sentence was announced by U.S. Attorney Damon P. Martinez, 1st Judicial District Attorney Jennifer Padgett, Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division, and New Mexico State Police Lt. Scott McFaul who serves as the Commander of the HITDA Region III Drug Task Force.
Mirabal, a career offender whose criminal history includes felony convictions for methamphetamine trafficking and aggravated battery with a deadly weapon, was prosecuted under the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo and Santa Fe Counties, under this initiative.
In announcing the sentence, U.S. Attorney Damon P. Martinez said, “Through this initiative, the law enforcement community is taking repeat, violent offenders out of our communities one at a time and making New Mexico a safer, better place to live, work and raise families.”
“For ten years Mirabal engaged in criminal conduct that preyed on the weak and innocent,” said DEA Special Agent in Charge Will R. Glaspy. “Today, along with our law enforcement partners, DEA is pleased to inform the citizens of Bernalillo and Santa Fe Counties that they can rest easier knowing that Mirabal will be locked up in federal prison for the next 36 years.”
“The ‘worst of the worst’ initiative is exactly the type of inter-agency collaboration that this district needs to get the violent repeat offenders like Mirabal off of our community’s streets,” said 1st Judicial District Attorney Jennifer Padgett.
Commander of the HIDTA Region III Drug Task Force Lt. Scott McFaul added, “I believe that prosecuting and sentencing these offenders under the ‘worst of the worst’ initiative shows our communities and repeat offenders that federal, state and local law enforcement agencies are serious about working together to take criminals off our streets.”
Mirabal was one of five men indicted in April 2013, on narcotics and firearms charges as the result of “Operation Rio Grande Stucco,” a DEA investigation into an organization led by Mirabal that manufactured and distributed cocaine base, more commonly known as “crack,” in Bernalillo and Santa Fe Counties. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program, a nationwide Department of Justice initiative that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. During the investigation, which utilized electronic surveillance (wiretaps), law enforcement officers seized more than 100 grams of crack, over a kilogram of cocaine, a loaded firearm and assorted ammunition, and body armor.
The investigation resulted in the filing of a five-count indictment charging Mirabal and four co-defendants, Santa Fe residents Robert Romero, 27, and Michael Jaramillo, 25, and Albuquerque residents Sam Elyicio, Jr., 39, and Dominic Anaya, 34, with conspiracy to distribute crack in Bernalillo and Santa Fe Counties between May 2012 and April 2013, and substantive crack trafficking offenses. After his four co-defendants entered guilty pleas, Mirabal was charged in a six-count superseding indictment with participating in a crack distribution conspiracy, two counts of possession of cocaine with intent to distribute, using a firearm in furtherance of a drug trafficking crime, being a felon in possession of a firearm and ammunition, and being a felon in possession of body armor.
Mirabal was found guilty on Dec. 15, 2015, when a federal jury returned a verdict finding Mirabal guilty on four of the six counts of the superseding indictment. The jury convicted Mirabal on the conspiracy charge, one count of possession of cocaine with intent to distribute, and being a felon in possession of a firearm, ammunition and body armor. It acquitted him on one count of possession of cocaine with intent to distribute and using a firearm in furtherance of a drug trafficking crime.
The charges against Mirabal’s co-defendants have been resolved as follows:
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Jaramillo pled guilty on March 21, 2014, to a conspiracy charge, and was sentenced on July 30, 2014, to 78 months in prison followed by four years of supervised release.
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Romero pled guilty on May 13, 2014, to crack trafficking and firearms charges, and was sentenced on Aug. 13, 2014, to 120 months in prison followed by four years of supervised release.
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Elyicio pled guilty on June 23, 2014, to a conspiracy charge, and was sentenced on Sept. 22, 2014, to 125 months in prison followed by four years of supervised release.
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Anaya pled guilty on Aug. 5, 2014, to a conspiracy charge, and remains in custody pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and the HIDTA Region III Drug Task Force, with assistance from the 1st Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorneys Nicholas J. Ganjei and Joel R. Meyers.
The Region III Drug Task Force is comprised of officers from the New Mexico State Police, Santa Fe Police Department, the Santa Fe County Sheriff’s Office and the Rio Arriba County Sheriff’s Office and receives support from the HIDTA – High Intensity Drug Trafficking Area – program. HIDTA is a program of the White House Office of National Drug Control Policy that provides assistance to federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States.
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Canadian Drug Trafficker who fought Extradition for Years Sentenced to 7 Years in PrisonRead the Press Release
One of the leaders of a drug smuggling ring that moved loads of drugs across the northern border with Canada in devices ranging from helicopters to backpacks was sentenced today in U.S. District Court in Seattle to seven years in prison, announced U.S. Attorney Annette L. Hayes. SEAN WILLIAM DOAK, 42 of Vernon, British Columbia, Canada was indicted in 2010, for his leadership of a cross border drug smuggling ring that operated from at least 2007-2009. DOAK was extradited to the U.S. in 2015, and pleaded guilty in December 2015 to Conspiracy to possess with the intent to distribute marijuana, cocaine and ecstasy. At today’s sentencing U.S. District Judge Robert S. Lasnik noted that the drugs trafficked by DOAK’s organization damaged users and fed addiction across the U.S. and Canada. The judge asked DOAK how he could reconcile his position as a supportive family man, with the damage he had done to other families with his drug trafficking.
According to records filed in the case, DOAK was operating his drug trafficking ring even as he was on work release for a drug sentence in Canada. DOAK and his co-conspirators arranged for loads of drugs to be smuggled across the United States/Canada border by truckers, hikers and snowmobilers, and increasingly towards the end of the charged conspiracy, by helicopters. The MDMA and marijuana originated in Canada and was transported south into the United States; the cocaine was obtained in Southern California and transported into Canada.
At various times law enforcement seized large loads of drugs connected to the ring: 200,000 MDMA pills on March 6, 2008; 72 kilograms of cocaine seized on March 10, 2008; 83 kilograms of cocaine seized on February 21, 2009; 20 kilograms of cocaine seized on February 28, 2009; 420 pounds of marijuana seized on February 23, 2009; and 325 pounds of marijuana and 40,000 MDMA pills seized on March 5, 2009.
Other co-conspirators have been sentenced to prison terms ranging from 10 years in prison to 18 months in prison.
The case was investigated by the Drug Enforcement Administration (DEA) with assistance from the Royal Canadian Mounted Police (RCMP) and the Utah Highway Patrol. The case is being prosecuted by Assistant United States Attorney Susan Roe.
California Man Sentenced to 32 Months in Prison for Conspiring to Violate U.S. Sanctions Against SyriaRead the Press Release
Amin al-Baroudi, 50, a Syrian-born naturalized U.S. citizen, formerly of Irvine, California, was sentenced today to 32 months in prison for conspiring to export U.S.-origin goods from the United States to Syria in violation of sanctions imposed on Syria by the U.S. government.
The sentence was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Division and Director Douglas Hassebrock of the U.S. Department of Commerce’s Office of Export Enforcement.
Baroudi pleaded guilty on Jan. 15, 2016. According to court documents, Baroudi admitted that from at least December 2011 through March 2013, he and his co-conspirators exported U.S. tactical equipment to Syria for the purpose of supplying and arming Ahrar al-Sham and other insurgent groups in Syria whose stated goal is to overthrow the Assad government and install an Islamic state. Ahrar al-Sham frequently fights alongside Jabhat al-Nusrah, which has been designated by the U.S. State Department as a foreign terrorist organization and operates as al-Qaeda’s official branch in Syria.
According to court documents, Baroudi and his co-conspirators purchased tens of thousands of dollars of goods from companies and vendors in the United States, consisting largely of tactical equipment such as sniper rifle scopes, night vision rifle scopes, night vision goggles, laser bore sighters, speed loaders and bullet proof vests. Baroudi and his co-conspirators traveled with the goods aboard commercial flights to Turkey and then transported the goods into Syria or provided them to others for transport. Baroudi made two such trips in February and March of 2013.
The case is being investigated by the FBI’s Washington Field Office, FBI’s Los Angeles Division and the U.S. Department of Commerce’s Office of Export Enforcement. Immigration and Customs Enforcement’s Homeland Security Investigations; California Highway Patrol; the Irvine Police Department; the Orange County, California, Sheriff’s Department; and the Regional Computer Forensics Laboratory in Orange County provided significant assistance.
The case is being prosecuted by Assistant U.S. Attorney Julia K. Martinez of the Eastern District of Virginia and Trial Attorneys Christian Ford and Robert Wallace of the National Security Division’s Counterintelligence and Export Control Section.
Boston Man Convicted in Illegal Gun Running SchemeRead the Press Release
BOSTON – A Boston man was sentenced today in connection with his role in a scheme to illegally transport firearms into Massachusetts.
Shayne Parker, 41, of Dorchester, was sentenced by U.S. District Court Judge F. Dennis Saylor, IV to five years in prison and three years of supervised release. In March 2016, Parker was convicted following a five-day trial of interstate transportation of firearms and being a felon in possession of 50 rounds of ammunition. Parker has several felony convictions, including for violence and drug trafficking crimes.
In the spring of2014, a joint law enforcement investigation uncovered a scheme in which firearms were bought in gun stores in New Hampshire and transported to Massachusetts for sale on the streets of Boston. The New Hampshire purchasers of the firearms were paid with drugs for their help.
During the course of the scheme, 16 guns were trafficked into Boston within three-weeks using three different straw purchasers. Ronald Scott, who was convicted in New Hampshire, purchased the guns and ammunition while Parker drove Scott to and from each of the five purchase locations in New Hampshire and handled the weapons and ammunition.
One of the guns – a 9mm semi-automatic firearm – was recovered on April 2, 2014, after Boston Police officers pursued and arrested a suspect. The firearm had been purchased 11 days before by Parker and his associates. In addition, during a search of a residence in Mattapan, law enforcement officers seized a .380 caliber semi-automatic weapon and a box containing 50 rounds of ammunition. The ammunition had been purchased just 22 days prior at Dick’s Sporting Goods in New Hampshire and transported to Massachusetts by Parker.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William B. Evans, made the announcement. The case was prosecuted by Assistant U.S. Attorney Glenn MacKinlay of Ortiz's Organized Crime and Gang Unit.
Biloxi Man Sentenced to Prison for Possession and Production of Child PornographyRead the Press Release
Gulfport, Mississippi. – Ruben Ralph-James Masters, 43, of Biloxi, was sentenced on Thursday, June 9, 2016, by Chief U.S. District Judge Louis Guirola, to 120 months in prison for possession of child pornography, and 300 months in prison for production of child pornography, announced U.S. Attorney Gregory K. Davis. The sentences will run concurrently. Masters was also ordered to pay a fine in the amount of $10,000, as well as restitution,
Masters entered a guilty plea to the charges on September 29, 2015. The evidence in this case revealed that as he knowingly possessed one or more images and videos constituting child pornography, and he produced videos which contained visual depictions of a minor engaging in sexual explicit conduct.
This case was jointly investigated by U.S. Homeland Security Investigations and the Biloxi Police Department as part of the Gulf Coast Cyber Crimes Task Force. It was prosecuted by Assistant U.S. Attorneys Glenda Haynes and Andrea Jones.
Baltimore Man Sentenced for Selling Stolen MerchandiseRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Adrian Scott Little, age 55, of Baltimore, Maryland today to 18 months in prison followed by three years of supervised release for transporting stolen goods. Judge Garbis ordered Little to forfeit the contents of several bank accounts and the large quantity of retail products seized from his warehouse and residence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; and the United States Secret Service - Baltimore Field Office.
According to his plea agreement, from at least December 2011 to March 2015, Little bought stolen consumer products from shoplifters to resell online on eBay and Bonanza. The products included over-the counter medication, bath and beauty products and razor blades. He also obtained similar products from other sources, including internet auction websites.
Little maintained a business warehouse where he removed anti-theft devices and stored the stolen items. He also stored and shipped stolen items out of his home.
Little obtained approximately $200,000 from the fraud scheme.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service for its work in the investigation and thanked Assistant U.S. Attorneys Zachary A. Myers and Aaron S.J. Zelinsky, who prosecuted the case.
Austin Area Chiropractor Sentenced to 14 Years in Federal Prison for Receiving Millions in Kickbacks and Money LaunderingRead the Press Release
In Austin this afternoon, Garry Wayne Craighead, a 49-year-old Leander, TX, chiropractor, was sentenced to 14 years in federal prison for receiving over $17 million in kickbacks in exchange for referring patients covered by the federal worker’s compensation program (FECA program), announced United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, United States District Judge Sam Sparks ordered that Craighead pay $17,908,170 restitution to the U.S. Department of Labor; forfeit to the Government property located in Williamson County as well as a Mooney M0J aircraft; and, be placed on supervised release for a period of three years after completing his prison term.
On December 4, 2015, Craighead pleaded guilty to one count of solicitation and receipt of illegal remunerations in federal health programs and one count of engaging in monetary transactions in property derived from specified unlawful activity. In his guilty plea, Craighead acknowledged that he operated several medical and rehabilitation clinics that treated injured workers, particularly postal employees, covered by FECA. His clinics did business under the names Union Treatment Center and Greentree Health, among others, and had locations in Austin, San Antonio, Killeen, Corpus Christi, Dallas, Fort Worth, and Weslaco. Craighead admitted that, from 2008 through 2015, he solicited and received millions in kickbacks from health care providers, including multiple pharmacies, hospitals, ambulatory surgical centers, and affiliated businesses, in return for referring his FECA patients to those providers for medical items and services, including prescription drugs, surgeries, and other procedures. The DOL paid millions as a result of the tainted referrals made by Craighead. In addition to the kickbacks, Craighead admitted to laundering the proceeds of his illegal conduct.
Craighead has remained in federal custody since March 2, 2016, when he was arrested by federal authorities for continuing to receive approximately $600,000 in kickbacks, dissipating the funds, lying to government investigators, and testing positive for illegal drug use while on bond.
The United States Department of Labor (DOL) administers the FECA program, which covers roughly 3 million federal civilian and postal employees who suffer job-related injuries. Benefits include payment of an eligible worker’s medical, rehabilitation, and pharmacy expenses. FECA is a federal health care program, and the DOL uses federal funds to reimburse health care providers that treat injured workers.
“We hope that today’s sentencing will serve as a strong deterrent to healthcare providers who contemplate soliciting or receiving illegal kickbacks in return for referring Federal Employees Compensation Act claimants. The Department of Labor Office of Inspector General will continue to work with the Department of Justice and our law enforcement partners to vigorously pursue medical providers who commit fraud related to the Federal Employees Compensation Act program.” said Special Agent in Charge Steven Grell, U.S. Department of Labor Office of Inspector General.
“Kickback schemes such as these threaten the financial integrity of public healthcare programs. The workers’ compensation program benefits thousands of postal employees who have received legitimate on-the-job injuries. This case should send a clear message to all health care providers that workers’ compensation fraud is a federal crime that carries serious consequences and will not be tolerated”, said Special Agent in Charge Scott Pierce, U.S.P.S. Office of Inspector General, Contract Fraud Investigations Division.
“We are very pleased with today’s announcement,” said Frank Robey, director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “This is a true testament to our continued commitment to work closely and seamlessly with our outstanding fellow law enforcement agencies to help bring those to justice who attempt to defraud the U.S. Government and U.S. Army.”
“The sentence handed down today should send a strong message to healthcare providers, and others who contemplate engaging in illegal kickback schemes, that they will be held accountable for their actions. The FBI will continue to work with our partners, to aggressively investigate and prosecute criminals who abuse the system for personal enrichment, at the expense of hard working U.S. taxpayers,” stated FBI Special Agent in Charge Christopher Combs, San Antonio Division.
The United States Postal Service Office of the Inspector General, United States Army Criminal Investigation Command’s Major Procurement Fraud Unit, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and the Department of Labor Office of the Inspector General conducted this investigation for the United States. Assistant United States Attorneys Jim Blankinship and Mark Marshall prosecuted this case for the United States.
Craighead’s criminal case can be found at United States v. Garry Wayne Craighead, A:15-cr-348 (W.D. Tex.)
Amherst Woman Pleads Guilty to Conspiracy to Import Alpha-PVPRead 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 Judi Strong, 43, of Amherst, NY, pleaded guilty to conspiracy to import Alpha-PVP, a Schedule I controlled substance, before U.S. District Court Judge Lawrence J. Vilardo. The charge carries a maximum sentence of 20 years in prison, a fine of $1,000,000, or both.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that in July 2015, Strong conspired with a co-defendant to import Alpha-PVP into the United States from China. The defendant ordered the substance on-line and had it shipped in two FedEx Express Mail packages to her residence in Amherst. Federal law enforcement officers intercepted the packages and performed a controlled delivery to Strong at her residence where she accepted delivery of the two packages. The two packages contained approximately 178 grams of Alpha-PVP.
The plea is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Sentencing is scheduled for September 16, 2016 at 12:30 p.m. before Judge Vilardo.Albion Couple Pleads Guilty to Producing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Normann Pittelkow, 42, and his long-time girlfriend Nicole Jacob, 35, of Albion, Michigan, both pled guilty in federal court this week to producing child pornography. Pittelkow admitted that he video recorded a child posing naked and in lingerie and sold the video, as well as one of her in the bathtub, for $200 to someone he met online, and he also admitted to possessing pornographic pictures he produced of three other children. Jacob admitted to posing with three children in lingerie and nude in a series of photographs that Pittelkow took, which she intended to sell online but never did. The couple fled the state and traveled to the southwest and southeast parts of the country. They eventually surrendered after a nationwide bulletin went out for their arrest.
Pittelkow faces a mandatory minimum of 15 years and a combined maximum of 40 years in prison, and Jacob faces 15 to 30 years. They will be sentenced in October. Both Pittelkow and Jacob must register as sex offenders, agreed to pay restitution, and could spend up to a lifetime on intensive federal supervised release after prison.
The Albion Department of Public Safety and Homeland Security Investigations jointly investigated this case. Assistant U.S. Attorney Tessa K. Hessmiller prosecuted the case.
"The children in this case were rescued from an unimaginable situation after one of them made a brave disclosure to a friend," said U.S. Attorney Patrick Miles. "I applaud that young girl for coming forward and not suffering in silence any longer, and I commend the Albion Department of Public Safety for executing a search warrant that night, where officers found the evidence that brought this couple to justice."
"The public provided critical assistance in this investigation, which ultimately led to this couple’s surrender," said HSI Special Agent in Charge Marlon Miller. "HSI will bring to bear technology and other forms of investigative techniques to ensure that the most vulnerable among us are protected from child predators."
"Many people do not realize the magnitude of evidence generated in these cases, which makes it extremely difficult for small departments to investigate on their own," said Chief Scott Kipp of the Albion Department of Public Safety. "Albion Public Safety would like to thank Homeland Security Investigations and the U.S. Attorney’s Office for all their assistance in this investigation. Without the assistance provided by the Federal Agencies involved, we would still be searching through the evidence. It is the cooperation between agencies in all branches of government that help swiftly bring these criminals who prey on small children to justice.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
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Abilene Man Sentenced to 10 Years in Federal Prison for Having Images of Prepubescent Child Porn on His Cell PhoneRead the Press Release
ABILENE, Texas — A 69-year-old Abilene, Texas, man, Jackie Lee Whitt, was sentenced this morning by U.S. District Judge Reed C. O’Connor to serve 120 months in federal prison, following his guilty plea in February 2016 to one count of access with intent to view prepubescent child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, while living in Abilene, Whitt owned a Samsung cell phone that he used to access the Internet with the intent to view depictions of minors engaged in sexually explicit conduct. Whitt knew some of the images depicted minors under age 12. He viewed numerous images of prepubescent minors, many who were well under age 12, engaged in various forms of sexually explicit conduct. Whitt had been convicted in federal court in 2003 of six counts of Interstate Receipt of Child Pornography, and served a 57-month term of imprisonment in that case.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
The case was investigated by the FBI and the Texas Department of Public Safety. Assistant U.S. Attorney Steven M. Sucsy, of the U.S. Attorney’s Office in Lubbock, Texas, was in charge of the prosecution.
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73 Year-Old Man Sentenced for Armed Robbery and Firearm PossessionRead the Press Release
GRAND RAPIDS, MICHIGAN — Simon S. Gutierrez, also known as Simon St. John Gutierrez, 73, most recently of Three Rivers, Michigan, was sentenced to 97 months’ imprisonment by U.S. District Judge Robert Holmes Bell. He will be under the court’s supervision for 5 years after he is released, and he was ordered to pay restitution. Gutierrez pled guilty to one count of armed credit union robbery and one count of being a felon in possession of a firearm in January pursuant to a plea agreement.
On January 25, 2013, Gutierrez robbed a branch of the Fifth Third Bank in Kalamazoo and brandished what appeared to be a revolver. On July 10, 2015, he robbed a branch of the Consumers Credit Union next door to the bank he robbed in 2013. In the 2015 robbery, he pretended to be making a lunch delivery before brandishing what appeared to be two handguns and robbing the credit union. Investigators later determined that the two weapons were pellet guns, but a search of his residence led to the recovery of a stolen revolver that matched the description of the weapon used in the 2013 robbery.
Gutierrez’s extensive criminal history includes armed robbery convictions dating back to the 1960s. In the 1980s, he was convicted of bank robberies in Colorado and in Illinois, where authorities described him as "a cunning and dangerous man," a sentiment Judge Bell echoed in imposing sentence. He served approximately thirty years in state and federal prison for those crimes. Altogether he has spent more than forty years in custody. He was last released in 2010.
"Hopefully Mr. Gutierrez’s career in bank robbery and violence is now at an end," U.S. Attorney Patrick Miles said. "The Court’s sentence is a message to younger citizens not to follow the path he has trodden; the consequence of not heeding that message is spending the better part of life locked up."
"The sentencing of Mr. Gutierrez sends a very clear message that the citizens of Kalamazoo County will not tolerate violent crime in our community, and will not tolerate being a crime destination for out-of-state criminals. The FBI Kalamazoo Resident Agency and our local law enforcement partners will continue to work collectively as we did in this investigation to ensure the safety of our community," said David P. Gelios, Special Agent in Charge, FBI Detroit.
The FBI, Kalamazoo Department of Public Safety, and Three Rivers Police Department investigated the robberies. Assistant U.S. Attorney Justin M. Presant prosecuted the case.
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9 June 2016
Yakima Drug Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that that Gregory Lavern Wilson, age 46, of Yakima, Washington, was sentenced today after having previously plead guilty to the charge of possession with intent to distribute methamphetamine. United States District Judge Stanley A. Bastian sentenced Wilson to a 10-year term of imprisonment, to be followed by a 5-year term of court supervision upon release from Federal prison
According to information disclosed during the court proceedings, from April through May 2015, the Yakima DEA Task Force conducted several undercover purchases of methamphetamine from Wilson. During the execution of multiple search warrants on May 27, 2015, officers recovered additional methamphetamine, drug packaging, and a digital scale at Wilson’s residence. Wilson subsequently acknowledged that he distributed methamphetamine. He has at least eight prior felony drug offense convictions, as well as numerous other convictions.
Michael C. Ormsby said, “I commend the officers of the Yakima DEA Drug Task Force, the Yakima Police Department, and the U.S. Drug Enforcement Administration for their efforts in investigating this drug trafficking case. Their strong working partnership is reflected by the successful prosecution of this case. Federal and local law enforcement officers in the Eastern District of Washington continue to work together to root out the scourge of drug trafficking in this District. With their assistance, the United States Attorney’s Office for the Eastern District of Washington is committed to prosecuting aggressively and seeking appropriate punishment for traffickers distributing controlled substances in our communities.”
This case was investigated by the cooperative efforts of the Yakima DEA Drug Task Force, the Yakima Police Department, and the U.S. Drug Enforcement Administration. The case was prosecuted by Ian L. Garriques, an Assistant United States Attorney for the Eastern District of Washington.
Woman Pleads Guilty to Defrauding Senior CitizensRead the Press Release
Tea Lynette Ware, 36, from Cedar Rapids, Iowa, pled guilty today in federal court in Cedar Rapids to two counts of mail fraud and one count of using a fictitious name in that fraud.
At the plea hearing, and in a plea agreement, Ware admitted that from about September 2015 through February 2016, Ware intentionally participated in a scheme to defraud an elderly Illinois woman in which false representations and promises were made to the elderly woman claiming she had won a lottery, sweepstakes, or otherwise was entitled to large sums of money. The victim was also told the winnings or funds could be claimed only if she would first mail Ware money for purported taxes, fees, or similar alleged prerequisites for payment. In truth, no such winnings existed and the telephone calls were designed only to permanently deprive the victim and her husband, a resident of a long-term care facility with dementia, of their money. Like many senior citizens in the United States, the couple received unsolicited telephone calls; they even changed their telephone number to avoid unsolicited calls, but such calls nonetheless resumed after they changed their phone number.
In her plea agreement, Ware admitted that, in October 2015, she received $29,000 in two checks from the victim. In the plea agreement, Ware has agreed to make full restitution to the victims. She also agreed to forfeit any proceeds of her crime. The government seized $40,000 prior to Ware’s Indictment.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Ware remains free on terms and conditions of release previously set pending sentencing. Ware faces a possible maximum sentence of 45 years’ imprisonment, a $750,000 fine, $300 in special assessments, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-27-LRR.
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Wilkes Co. Man Sentenced to A 20-Year Prison Term for Possessing and Producing Child PornographyRead the Press Release
STATESVILLE, N.C. B U.S. District Judge Richard L. Voorhees sentenced yesterday Tony Luke Brewer, 25, of Hays, N.C. to 20 years in prison on charges of possession and production of child pornography, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Voorhees also ordered the defendant to serve a lifetime of supervised release and to register as a sex offender upon release from prison.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Rose in making today’s announcement.
“Today, we’ve removed a monster from the folds of our society. Brewer’s massive child pornography collection contained images and videos depicting extreme and violent sexual abuse against children, some of whom were infants, which he shared online with other pedophiles,” said U.S. Attorney Rose. “But Brewer did not stop there. He solicited young victims online and enticed them to engage in sexually explicit conduct, which he captured and stored on his computer. Brewer is a predator who belongs behind bars, where he can no longer victimize another young child.”
“Luke Brewer tried to conceal the evidence of his twisted and disturbing criminal activities online. When the safety of our children is at stake, the FBI will not stop until we uncover those vile offenders who seek to do harm with their demented behaviors,” said Special Agent in Charge Strong.
According to filed documents and statements made in court, Brewer was a member of, or attempted to become a member of, multiple Internet websites through which he and others posted thousands of messages containing images of sexual exploitation involving pre-pubescent children. The websites’ users employed advanced technological means in order to undermine law enforcement’s attempts to identify them.
According to court records, from at least May 2012, Brewer registered with these websites and uploaded images of child pornography or chatted online with other users. Court records show that on one such website, Brewer described himself on his user profile as “a young pedo” who “loves meeting new pedos.” On September 24, 2014, the FBI executed a search warrant at Brewer’s residence, seizing his laptop computers and other storage media. According to court records, forensic examination of the seized items revealed that Brewer possessed thousands of images and videos of child pornography, including material involving infants and prepubescent minors engaging in sadistic and masochistic or other violent conduct.
Court records indicate that, in addition to possessing child pornography, Brewer had engaged in multiple chats online with minor victims from different states. According to court records, Brewer knew the victims were underage and induced the victims to engage in sexually explicit conduct, which he captured and stored on his computer.
Brewer is currently in custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The FBI investigated the case. Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children.By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims.For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Wheeling man pleads guilty to unlawful possession of firearmRead the Press Release
WHEELING, WEST VIRGINIA – Joseph W. Davis, 31, of Wheeling, pled guilty today to unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Davis, who has a previous felony conviction in federal court in West Virginia, was discovered in unlawful possession of a .22 caliber revolver in January 2016 in Ohio County, West Virginia. Davis was previously convicted of the felony offense of “Aiding and Abetting in the Possession with Intent to Distribute More Than Five Grams of Cocaine Base” in the United States District Court for the Northern District of West Virginia in January 2006.
Davis 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 defendant.
Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government. The Wheeling Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge James E. Seibert presided.
Waterloo/Black Hawk County Town Hall Discusses Heroin Epidemic and Treatment OptionsRead the Press Release
CEDAR RAPIDS, IA – Last night the United States Attorney’s Office (USAO) for the Northern District of Iowa hosted a town hall at the Waterloo Center for the Arts to discuss treatment options available to tackle the opioid and heroin epidemic facing the greater Waterloo and Black Hawk County community. The community joined Cedar Rapids and Dubuque to fight this threat with the assistance of the Eastern Iowa Heroin Initiative, which recently held a meeting in Davenport sponsored by the USAO for the Southern District of Iowa.
Every day, 44 people in the United States die from overdose of prescription painkillers. Yearly, overdose deaths exceed motor vehicle or firearms deaths. The most recent data available indicates that in 2014, over 47,000 people in the U.S. died from drug overdoses with more than half of that number being caused by prescription painkillers and heroin. The most recent National Survey on Drug Use and Health estimated over 900,000 Americans reported using heroin in 2014, reflecting a 35% increase from the previous year.
United States Attorney Kevin W. Techau offered his assessment of the challenge facing the community in his opening comments stating, “The rise of heroin and the misuse of prescription opioids in Iowa is one of our biggest challenges to public health and public safety. It threatens our communities, families, and children. Heroin use and the prescription drug misuse are intertwined and both must be addressed. The meeting tonight will discuss all aspects of the problem so we can work together with our federal, state, and local partners to fight this growing epidemic through a combination of enforcement, prevention, education, and treatment.”
Following comments made by U.S. Attorney Techau and Black Hawk County Sheriff Tony Thompson, the Eastern Iowa Heroin Initiative Coordinator, Cedar Rapids Police Office Al Fear, discussed how the initiative was started and the importance of community involvement to address the epidemic. Assistant U.S. Attorney Patrick Reinert provided a detailed picture of the threat facing eastern Iowa. The threat was made more real when a mother who lost her son to heroin spoke about how his drug use and death impacted their family. Treatment options were outlined by Pathways Behavioral Services, Inc. and Horizons Family Centered Recovery Program.
A Question and Answer panel discussion engaged those attending and was followed by the Eastern Iowa Heroin Initiative launching C.R.U.S.H. (Community Resources United to Stop Heroin), which is a community outreach initiative designed to involve schools, law enforcement, treatment providers, community leaders and health care organizations to address the growing epidemic. This community response was recently initiated in Linn, Dubuque and Clinton counties. Attendees were encouraged to join and told they could do so by texting “Heroin” to 51555.
To learn more about the Eastern Iowa Heroin Initiative, visit Facebook at www.facebook.com/EasternIowaHeroinInitiative.
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Washington State Man Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – Haben Sebhatu, Bellevue, Washington, pled guilty to possessing more than 100 counterfeit credit cards and credit card making equipment during a multi-state trip during which he conducted numerous fraudulent transactions.
Sebhatu was arrested by the Ladue Police Department on March 25, 2016, and a search of his vehicle revealed the fraudulent credit cards and a card encoder used to place stolen card numbers and other information on a card’s magnetic strip. Sebhatu admitted to organizing the trip.
Sebhatu appeared before Judge Audrey G. Fleissig, who accepted his guilty plea this morning in U.S. District Court in St. Louis. Sentencing has been set for September 20, 2016.
Sebhatu faces up to fifteen years in prison, per count, for possession of more than fifteen counterfeit cards and possession of device making equipment. In addition to a term of imprisonment, Sebhatu faces up to a $250,000 fine per count and mandatory restitution to the victims. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
In addition to his federal case in St. Louis, Sebhatu faces criminal charges in his home state of Washington for identity theft and forgery.
The case was investigated by the Ladue (Missouri) Police Department, the U.S. Secret Service and the Pierce County (Washington) Prosecuting Attorney’s Office. Restitution to the victims is also mandatory.
Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Waldorf Drug Trafficker Sentenced to 10 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced James Devwan Pixley, age 26, of Waldorf, Maryland, today to 10 years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute cocaine base and cocaine, and for possession of a firearm in furtherance of a drug trafficking crime. Judge Chasanow also ordered Pixley to forfeit six firearms, a car and a trailer.
The sentence was 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; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Charles County Sheriff Troy Berry; Chief Hank Stawinski of the Prince George’s County Police Department; Acting Chief Stanley Johnson, of the Maryland National Capital Park Police, Prince George’s County Division; St. Mary’s County Sheriff Tim Cameron; and Calvert County Sheriff Mike Evans.
According to his plea agreement and other court documents, from January through July 2015, Pixley conspired with others to sell primarily crack, but also cocaine and other illegal drugs, such as prescription painkillers. Pixley obtained cocaine up to four times a month from co-defendant Colbert Jones, generally in four ounce increments for $1,700 per ounce. Pixley used the majority of that cocaine to manufacture into crack, which he cooked in his kitchen. Pixley sold the cocaine to his customers at various locations including his residence and his mother’s home in Leonardtown, Maryland, which Pixley used as stash houses.
Pixley also possessed and sold firearms on several occasions, while selling drugs. He stored the firearms at his residence and his mother’s. A search warrant was executed on August 6, 2015, at his and his mother’s residences. Several firearms were seized, including a loaded 12 gauge shotgun from Pixley’s residence.
The investigation revealed that Pixley was responsible for the distribution of between 500 grams and 5 kilograms of cocaine, and between 280 and 840 grams of crack cocaine.
Co-defendants Troy Taishon Swann, age 39, of Waldorf; Antoine Dewayne Savoy, age 35, of Lusby, Maryland; Fletcher, age 29, of Clinton, Maryland; and Colbert Juan Jones, Jr., age 33, of St. Leonard, Maryland, previously pleaded guilty to their participation in the drug trafficking conspiracy. Fletcher and Jones were each sentenced to 10 years in prison. Judge Chasanow has scheduled sentencing for Savoy on June 27, 2016 at 12:30 p.m. and for Swann on July 11, 2016 at 11:00 a.m.
United States Attorney Rod J. Rosenstein praised the ATF, DEA, Charles County Sheriff’s Office, Prince George’s County Police Department, Maryland National Capital Park Police, Prince George’s County Division, and the St. Mary’s and Calvert County Sheriffs’ Offices for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Michael T. Packard and Leah J. Bressack, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Virginia Man Charged with Providing Material Support to ISILRead the Press Release
In a criminal complaint unsealed in the Eastern District of Virginia today, Mohamad Jamal Khweis, 26, of Alexandria, Virginia, was charged with providing and conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The complaint was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.
Khweis was detained by Kurdish Peshmerga military forces on March 14, 2016 in northern Iraq after leaving an ISIL-controlled neighborhood in Tal Afar, Iraq. According to the affidavit in support of the criminal complaint, Khweis admitted to renting a car in Alexandria and flying out of Baltimore-Washington International Airport to begin his travel to join ISIL in mid-December 2015. His travel included stops in the United Kingdom and the Netherlands before ultimately crossing into Syria through Turkey with the help of ISIL facilitators. Khweis admitted that he stayed in an ISIL safe house in Raqqa, Syria, with other ISIL recruits who were going through an intake process, and at one point during the intake process, answered yes when asked by ISIL if he would be a suicide bomber. Khweis also admitted to participating in ISIL-directed religious training for nearly one month in preparation for his service to ISIL.
Khweis will have his initial appearance at the federal courthouse in Alexandria today at 2 p.m. EDT before U.S. Magistrate Judge John F. Anderson of the Eastern District of Virginia.
This case is being investigated by the FBI’s Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorney Dennis Fitzpatrick of the Eastern District of Virginia and Trial Attorney Raj Parekh of the National Security Division’s Counterterrorism Section.
Khweis Complaint
Upstate Defendant Sentenced for Lying to FBI During InvestigationRead the Press Release
Contact Person: Max Cauthen (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that William Tore Tint, age 42, of Travelers Rest, South Carolina, was sentenced today in federal court in Anderson, South Carolina by the Honorable Timothy Cain to three (3) years probation. In September 2015, Tint pled guilty to making false statements to agents of the Federal Bureau of Investigation (FBI) during an investigation, in violation of Title 18, United States Code, Section 1001.
Evidence presented at the change of plea hearing established that on or about April 13, 2015, Tint, did knowingly and willfully make a false, fraudulent, and fictitious material statement to FBI agents during their investigation of a possible plot to commit acts of violence in in New York State.
The case was investigated by the FBI. Assistant United States Attorney Max Cauthen of the Greenville office handled the prosecution of the case.
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U.S. Navy Admiral Pleads Guilty to Lying to Feds about his Relationship with Foreign Defense Contractor in Massive Navy Bribery and Fraud InvestigationRead the Press Release
Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – June 9, 2016
SAN DIEGO - U.S. Navy Rear Admiral Robert Gilbeau pleaded guilty today in federal court to felony charges that he lied to federal investigators to conceal his illicit years-long relationship with Leonard Glenn Francis, the foreign defense contractor at the center of a massive bribery and fraud scandal.
Admiral Gilbeau is the highest-ranking U.S. Navy officer charged in the investigation so far, and is believed to be the first active-duty Naval flag officer ever charged in federal criminal court.
In his plea agreement, Admiral Gilbeau admitted that he lied when he told agents from Defense Criminal Investigative Service and Naval Criminal Investigative Service that he had never received any gifts from Leonard Glenn Francis, owner of Singapore-based Glenn Defense Marine Asia. Francis has pleaded guilty to plying scores of other U.S. Navy officials with gifts such as luxury travel and meals, cash and electronics and and parties and prostitutes.
According to his plea agreement, Admiral Gilbeau lied when he told investigators that he “always paid for half of the dinner” when he and Francis met about three times a year. When Gilbeau became aware that Francis and others had been arrested in connection with the fraud and bribery offenses in September 2013, he destroyed documents and deleted computer files.
Admiral Gilbeau is scheduled to be sentenced on Aug. 26 at 9 a.m. before U.S. District Judge Janis L. Sammartino. At today’s hearing, U.S. Magistrate Judge William V. Gallo set bond at $75,000 secured by real property.
Most of the other Navy officials charged in this case so far have faced allegations that in return for cash, lavish entertainment and travel expenses, the services of prostitutes and other illicit gifts, they brazenly used their public offices to heap benefit after benefit upon Francis and GDMA, including passing on classified U.S. Navy information to advance GDMA’s business interests and advocating for GDMA at every turn.
Gilbeau was charged via information with deliberately and knowingly making false statements, from November 2012 to October 2013, about the nature of his relationship with Francis and his receipt of things of value over the course of years from Francis.
According to charging documents, in 2003 and 2004, Gilbeau was the supply officer on the USS Nimitz, where he was responsible for procuring all goods and services necessary for operation of the ship. He later served as head of the Tsunami Relief Crisis Action Team in Singapore, heading the Navy’s logistics response to the Southeast Asia tsunami in December 2004. In June 2005, Gilbeau was assigned to the office of the Chief of Naval Operations as the head of aviation material support, establishing policies and requirements for budgeting and acquisitions for the Navy’s air forces.
After he was promoted to admiral, Gilbeau assumed command in August 2010 of the Defense Contract Management Agency International, where he was responsible for the global administration of the Defense Department’s most critical contracts performed outside the United States.
“Of those who wear our nation’s uniform in the service of our country, only a select few have been honored to hold the rank of Admiral – and not a single one is above the law,” said U.S. Attorney Laura Duffy. “Admiral Gilbeau lied to federal agents investigating corruption and fraud, and then tried to cover up his deception by destroying documents and files. Whether the evidence leads us to a civilian, to an enlisted service member or to an admiral, as this investigation expands we will continue to hold responsible all those who lied or who corruptly betrayed their public duties for personal gain.”
“As a flag level officer in the U.S. Navy, Admiral Gilbeau understood his duty to be honest with the federal agents investigating this sprawling bribery scheme,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. “By destroying documents and lying about the gifts that he received, Admiral Gilbeau broke the law and dishonored his uniform.”
“The guilty plea of Rear Admiral Robert Gilbeau is an unfortunate example of a dishonorable naval flag officer who has betrayed his shipmates, the U.S. Navy and his country,” said Dermot F. O’Reilly, Acting Director, Defense Criminal Investigative Service. “Admiral Gilbeau's guilty plea should be a resounding message that DCIS, Naval Criminal Investigative Service, and the Department of Justice will continue to investigate and seek to prosecute any individual, regardless of position or rank, who would put our mission of 'Protecting America's Warfighters' at risk.”
“This investigation demonstrates that corruption, conspiracy, and the release of sensitive information puts Department of the Navy personnel and resources at risk,” said Special Agent Andrew Traver, Director of the Naval Criminal Investigative Service, “and in concert with our partner agencies, NCIS remains resolved to follow the evidence, to help hold accountable those who make personal reward a higher priority than professional responsibility.”
Anita Bales, director of Defense Contract Audit Agency, said, “DCAA is proud to stand in partnership with our law enforcement allies and make a meaningful contribution to the outcome in this egregious case. It is very disappointing that this high-ranking individual lost sight of his responsibility as a government official. We look forward to continuing our support of this significant investigation.”
So far, a total of 14 people have been charged in connection with the case.
Of those, 11 are current or former U.S. Navy officials, including Admiral Gilbeau; Captain (ret) Michael Brooks; Commander Bobby Pitts; Lt. Commander Gentry Debord; Captain Daniel Dusek; Captain (select) Michael Misiewicz; Lt. Commander Todd Malaki; NCIS Special Agent John Beliveau; Commander Jose Luis Sanchez; Petty Officer First Class Daniel Layug; and Paul Simpkins, a former DoD civilian employee.
Gilbeau, Dusek, Misiewicz, Malaki, Beliveau, Sanchez and Layug have pleaded guilty. On January 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; on January 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine. On March 25, 2016, Dusek was sentenced to 46 months in prison and to pay $30,000 in restitution to the Navy and a $70,000 fine; and on April 29, 2016, Misiewicz was sentenced to 78 months in prison and to pay a fine of $100,000 and to pay $95,000 in restitution to the Navy.
Brooks, Pitts and Debord were charged last week and their cases are pending; Simpkins awaits trial.
Also charged are three GDMA executives – Francis, Alex Wisidagama and Ed Aruffo. All three have pleaded guilty; Wisidagama was sentenced on March 18, 2016 to 63 months and $34.8 million in restitution to the Navy. Francis and Aruffo await sentencing.
GDMA, the corporate entity, was also charged and has pleaded guilty.
NCIS, DCIS and DCAA are conducting the investigation. Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section are prosecuting the case.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANT Case Number: 16cr1313-JLS
U.S. Navy Rear Admiral Robert Gilbeau Age 55 Burke, Virginia
SUMMARY OF CHARGES
False Statements, in violation of 18 U.S.C. § 1001
Maximum Penalty: 5 years in prison
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
U.S. Navy Admiral Pleads Guilty to Lying to Federal Investigators about His Relationship with Foreign Defense Contractor in Massive Navy Bribery and Fraud InvestigationRead the Press Release
U.S. Navy Rear Admiral Robert Gilbeau pleaded guilty today in federal court to charges that he lied to federal investigators to conceal his illicit years-long relationship with Leonard Glenn Francis, owner of Glenn Defense Marine Asia (GDMA), the foreign defense contractor at the center of a massive bribery and fraud scandal.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Acting Director Dermot O’Reilly of the Department of Defense’s (DOD) Defense Criminal Investigative Service (DCIS), Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) and Director Anita Bales of Defense Contract Audit Agency (DCAA) made the announcement.
Gilbeau, 55, of Burke, Virginia, pleaded guilty to one count of making a false statement. He was charged by information today and is the highest-ranking U.S. Navy officer to be charged in the investigation so far. Gilbeau is scheduled to be sentenced on Aug. 26, 2016, before U.S. District Judge Janis L. Sammartino of the Southern District of California.
In his plea agreement, Gilbeau admitted that he lied when he told agents from DCIS and NCIS that he had never received any gifts from Francis, the owner of Singapore-based GDMA. Gilbeau also admitted that he lied when he told investigators that he “always paid for half of the dinner” when he and Francis met about three times a year. Gilbeau further admitted that when he became aware that Francis and others had been arrested in connection with the fraud and bribery offenses in September 2013, he destroyed documents and deleted computer files. Francis previously pleaded guilty to plying scores of other U.S. Navy officials with gifts such as luxury travel, meals, cash, electronics, parties and prostitutes.
According to his plea, in 2003 and 2004, Gilbeau was the supply officer on the USS Nimitz, where he was responsible for procuring all goods and services necessary for operation of the ship. He later served as head of the Tsunami Relief Crisis Action Team in Singapore, heading the Navy’s logistics response to the Southeast Asia tsunami in December 2004, and in June 2005, Gilbeau was assigned to the office of the Chief of Naval Operations as the head of aviation material support, establishing policies and requirements for budgeting and acquisitions for the Navy’s air forces, according to the plea agreement.
In August 2010, after he was promoted to admiral, Gilbeau assumed command of the Defense Contract Management Agency International, where he was responsible for the global administration of DOD’s most critical contracts performed outside the United States, according to admissions made in connection with his plea.
“As a flag level officer in the U.S. Navy, Admiral Gilbeau understood his duty to be honest with the federal agents investigating this sprawling bribery scheme,” said Assistant Attorney General Caldwell. “By destroying documents and lying about the gifts that he received, Admiral Gilbeau broke the law and dishonored his uniform.”
“Of those who wear our nation’s uniform in the service of our country, only a select few have been honored to hold the rank of Admiral – and not a single one is above the law,” said U.S. Attorney Laura Duffy. “Admiral Gilbeau lied to federal agents investigating corruption and fraud, and then tried to cover up his deception by destroying documents and files. Whether the evidence leads us to a civilian, to an enlisted service member or to an admiral, as this investigation expands we will continue to hold responsible all those who lied or who corruptly betrayed their public duties for personal gain.”
“The guilty plea of Rear Admiral Robert Gilbeau is an unfortunate example of a dishonorable naval flag officer who has betrayed his shipmates, the U.S. Navy and his country,” said Acting Director O’Reilly. “Admiral Gilbeau's guilty plea should be a resounding message that DCIS, Naval Criminal Investigative Service and the Department of Justice will continue to investigate and seek to prosecute any individual, regardless of position or rank, who would put our mission of ‘Protecting America’s Warfighters’ at risk.”
“This investigation demonstrates that corruption, conspiracy and the release of sensitive information puts Department of the Navy personnel and resources at risk,” said Director Traver. “And in concert with our partner agencies, NCIS remains resolved to follow the evidence, to help hold accountable those who make personal reward a higher priority than professional responsibility.”
“DCAA is proud to stand in partnership with our law enforcement allies and make a meaningful contribution to the outcome in this egregious case,” said Director Bales. “It is very disappointing that this high-ranking individual lost sight of his responsibility as a government official. We look forward to continuing our support of this significant investigation.”
Including Gilbeau, 14 individuals have been charged in connection with this scheme; of those, nine have pleaded guilty, including U.S. Navy Captain (Select) Michael Misiewicz, U.S. Navy Capt. Daniel Dusek, Lieutenant Commander Todd Malaki, NCIS Special Agent John Beliveau, Commander Jose Luis Sanchez and U.S. Navy Petty Officer First Class Dan Layug. Former Department of Defense Senior Executive Paul Simpkins awaits trial. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine; on March 18, 2016, Alex Wisidagama, a former GDMA employee, was sentenced to 63 months and to pay $34.8 million in restitution to the Navy; on March 25, 2016, Dusek was sentenced to 46 months in prison and to pay $30,000 in restitution to the Navy and a $70,000 fine; and on April 29, 2016, Misiewicz was sentenced to 78 months in prison and to pay a fine of $100,000 and to forfeit $95,000 in proceeds for the scheme. Retired Navy Captain Michael Brooks, Commander Bobby Pitts and Lieutenant Commander Gentry Debord were charged by a federal grand jury on May 25, 2016, and their cases remain pending. GDMA, the corporate entity, was also charged and has pleaded guilty. Francis and Ed Aruffo, a former GDMA employee, have both pleaded guilty and await sentencing.
NCIS, DCIS and DCAA are conducting the investigation. Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California are prosecuting the case.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
Two Seminole Men Sentenced for Drug ConpiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced that BRANDON LEE DEATHERAGE, age 40, and SHAWN ASHLEY DEATHERAGE, a/k/a Shawn Ashley Thomas, age 39, both of Seminole, Oklahoma, were sentenced on June 9, 2016, in federal court for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A).
BRANDON LEE DEATHERAGE was sentenced to 92 months imprisonment. SHAWN ASHLEY DEATHERAGE, a/k/a Shawn Ashley Thomas, was sentenced to 120 months imprisonment.
The Indictment alleged that beginning in or about April 2015, the exact date being unknown to the Grand Jury, and continuing until on or about September 2015, within the Eastern District of Oklahoma and elsewhere, the defendants did knowingly and intentionally combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to commit offenses against the United States, to possess with intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The charges arose from an investigation by the McAlester Police Department, District 18 District Attorney’s Drug Task Force, Seminole Nation Lighthorse Police, Oklahoma Highway Patrol, Seminole County Sheriff’s Office, Seminole Police Department, Oklahoma Bureau of Narcotics, United States Marshals Service and the Drug Enforcement Administration.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. The defendants will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which they will serve their nonparoleable sentences.
Assistant United States Attorney Shannon Henson represented the United States.
Trio Charged in Conspiracy to Illegally Sell Authentic Driver's Licenses to Undocumented IndividualsRead the Press Release
PHILADELPHIA - An indictment was filed today charging three people in a conspiracy to sell illegally obtained driver’s licenses to undocumented aliens, announced United States Attorney Zane David Memeger. Jose Altagracia Morales Santiago, 57, of Philadelphia, PA, Jose Jhonkellyn Castillo-Henriquez, 28, of New York, NY, and Hiram Mojica, 49, of Philadelphia, PA, are each charged with one count of conspiracy, aggravated identity theft, and producing an identification document.
According to the indictment, between February and May of 2016, the defendants obtained the identifying information of Puerto Rican citizens, which they then sold to undocumented aliens. The defendants allegedly obtained through unlawful means both learner’s permits and driver’s licenses from Pennsylvania Department of Transportation (PennDOT) Department of Motor Vehicles (DMV) locations in and around Philadelphia, which defendants Morales Santiago and Castillo-Hernandez sold to undocumented aliens. It is further alleged that defendant Morales Santiago paid individuals to take the written knowledge test portion of the driving test using Puerto Rican identities, fraudulent utility bills, and fraudulent medical reports, all of which defendant Morales Santiago provided. Defendant Mojica allegedly instructed undocumented aliens how to use and drive an automobile, provided undocumented aliens with a car to use during driving tests, drove undocumented aliens to DMVs located in and around Philadelphia, chaperoned undocumented aliens through the DMV procedures, and directed undocumented aliens to falsify documentation supporting their driver’s license applications
If convicted, each defendant faces a mandatory minimum term of two years in prison with a statutory maximum sentence of 22 years, a possible fine, a period of supervised release, and a $300 special assessment. The indictment also contains a notice of forfeiture.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Kevin Brenner.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three People Arrested in FBI OperationRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina -------- Sherif Abdelwahab Alkassar, age 36, of Myrtle Beach, South Carolina; Lesley Amanda Alkassar, age 38, of Blacksburg, South Carolina, and Katie Leighanne Polson, age 29, of Myrtle Beach, South Carolina; were arrested June 9, 2016,on charges of Electronic Benefits Transfer (EBT card) fraud, a violation of Title 7 United States Code, Section 2024.
Sherif Abdelwahab Alkassar, was also charged with Mail Fraud, a violation of Title 18 USC 1341, and making False Statements relating to Naturalization/Citizenship, a violation of Title 18 USC 1015.
William Nettles, U.S. Attorney for the District of South Carolina, made the announcement after the Defendants’ initial appearances before U.S. Magistrate Judge Kaymani D. West, Florence, South Carolina.
Each faces a maximum possible penalty of not more than twenty years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Each Defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case is being investigated by agents of the Federal Bureau of investigation (FBI), the Department of Homeland Security/Immigration and Customs Enforcement (DHS/ICE),and the United State Department of Agriculture USDA (USDA). The case is assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
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St. Louis County Man Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – Charles Hicks, Fenton, Missouri, was indicted Wednesday afternoon on mail fraud charges in connection with a fraud and embezzlement scheme that spanned three years and involved two employers.
According to the indictment, Hicks submitted false invoices to his ex-employers, RockTenn and MarChem, both with offices in St. Louis County, for equipment not delivered and services not rendered. The invoices were payable to two shell companies created and controlled by Hicks.
If convicted, Hicks faces up to 20 years imprisonment and/or a fine of $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Restitution to the victims is also mandatory.
This case was investigated by the FBI and the U.S. Postal Inspection Service. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Sixty-Six Gang Members Facing Federal Rico, Firearm and Drug Trafficking ChargesRead the Press Release
BOSTON – Sixty-six alleged gang members from the Greater Boston area have been charged with federal and state firearm and drug charges, including federal RICO conspiracy charges related to an attempted murder. It is alleged that these individuals were responsible for fueling a gun and drug pipeline across a number of cities and towns in eastern Massachusetts. During the course of the investigation, over 70 firearms were seized.
This morning, more than 400 federal, state and local law enforcement officers carried out the arrests of numerous leaders, members, and associates of the 18th Street Gang, the East Side Money Gang and the Boylston Gang. These individuals operated primarily in East Boston, Chelsea, Brockton, Malden, Revere and Everett. Additional individuals were taken into custody on federal immigration violations.
In 2014, a federal investigation identified a network of street gangs which had created alliances resulting in the trafficking of weapons and drugs throughout the state, and generated violence against rival gang members. The investigation also revealed significant cocaine, crack, and heroin dealing committed by gang members, many of which were supplied though a Brockton-based drug network.
According to court documents, the 18th Street Gang is a multi-national gang that operates throughout the United States and Central America, and whose members in the Boston area have had significant access to firearms in Boston and Chelsea. Over a one year period, investigators seized approximately 37 firearms from 18th Street Gang members alone, including 29 hand guns, three assault rifles, and five sawed-off shotguns, many of which had the serial numbers obliterated.
In total, 53 defendants have been charged in federal court, three of whom were previously arrested. Thirteen defendants have been charged by the Massachusetts Attorney General’s Office in state court. Over two dozen individuals have been detained for administrative deportations.
The charge of RICO conspiracy provides a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Depending on the drug quantity, the drug trafficking conspiracy and distribution charges provide a sentence of 20 years, 40 years or a lifetime in prison; a minimum of three, four or five years of supervised release; and a fine of $1 million, $5 million or $10 million. The charge of conspiracy to engage in the business of dealing in firearms without a license provides a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm or an alien in possession of a firearm and ammunition provides a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Matthew Etre, Special Agent in Charge of the Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal of the District of Massachusetts; Maura Healey, Attorney General of Massachusetts; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Evans; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley, made the announcement today.The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Six Individuals Charged in Scheme to Defraud Merchants Out of Jewelry and DiamondsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of Federal Bureau of Investigation, (“FBI”), Robert E. Perez, Director of the New York Field Office of U.S. Customs and Border Protection (“CBP”), William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), and Julie L. Jones, Secretary of the Florida Department of Corrections (“FDC”) announced that DAVID JENKINS, ANTHONY BROOKS, LAKEATHA COOPER, SHARON LARA, DOMINEK GRANT, and ROBERTO CONCEPCION were taken into federal custody today for participating in a scheme to defraud merchants of diamonds and jewelry in New York, New York, and around the United States. BROOKS was presented this afternoon in Fort Lauderdale, Florida. COOPER and LARA were presented this afternoon in federal court in Fort Pierce, Florida. GRANT was presented this afternoon in federal court in Charleston, South Carolina. JENKINS and CONCEPCION, who were incarcerated in a Florida state correctional institution, have been taken into federal custody and will be presented upon their arrival in the Southern District of New York. The case is assigned to the Honorable Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “The six defendants allegedly tricked merchants around the country, including in New York’s Diamond District, into sending valuable jewelry in exchange for what turned out to be counterfeit checks and bogus money orders. Two of the defendants allegedly engaged in this brazen scheme while incarcerated for other crimes.”
FBI Assistant Director Diego Rodriguez said: “Using a contraband cell phone and a complex network of co-conspirators throughout the United States, an inmate in Florida allegedly defrauded jewelers in New York’s Diamond District out of thousands of dollars’ worth of jewelry pieces. By posing as legitimate jewelry companies, David Jenkins negotiated a cash-on-delivery sale of jewelry with New York jewelers that was eventually paid with counterfeit certified checks and then re-sold. This cross-country scheme was met with cross-country law enforcement efforts, with FBI New York working closely with FBI Miami. We appreciate the assistance with today’s operations by FBI Columbia, FBI Phoenix, and FBI Miami. The FBI will continue to investigate big and small organized crime groups who seek to profit from fraudulent criminal activities.”
CBP New York Director Robert E. Perez said: “U.S. Customs and Border Protection is proud of the expertise we bring to support and assist investigations that result in the takedown of criminal enterprises. It is through interagency partnerships and collaborative efforts, like the one leading to today’s arrests, that law enforcement successfully combats today’s criminal organizations.”
NYPD Commissioner William J. Bratton said: “As alleged, defrauding diamond dealers, while two of the defendants ran this racket from a jail, speaks to the audacity of the crime. Today, this scheme of swindling New York City Diamond District merchants and others is over.”
FDC Secretary Julie L. Jones said: “The apprehension and arrest of the six defendants in this case represents what can be achieved through cooperation and collaboration between law enforcement agencies, regardless of their location. The Department is proud of its investigative contribution and will continue its efforts in ensuring not only the safety of Florida’s citizens, but the freedom to safely and securely conduct business in our state.”
According to the allegations in the Indictment[1] unsealed today in Manhattan federal court:
From at least in or about June 2015 to in or about June 2016, JENKINS, BROOKS, COOPER, LARA, GRANT, and CONCEPCION defrauded jewelry merchants in New York City and elsewhere by inducing the merchants to send gemstones, precious metals, and jewelry to them in exchange for counterfeit checks or other fictitious forms of payment.
The defendants contacted jewelry and antiques merchants by telephone, electronic message, and email. In many of these communications, JENKINS masqueraded as representatives of legitimate jewelry companies and, in doing so, often appropriated the names and personal identifying information of real people in order to induce merchants to ship jewelry and precious goods interstate. In the typical scenario, JENKINS, negotiated cash-on-delivery terms of payment from merchants, ensuring both that merchants would not meet any of the defendants in person and that the defendants could pay for the goods by counterfeit and fictitious certified checks. After receiving the merchants’ goods, the defendants typically sold those goods to other jewelry stores.
Contrary to the representations made to the merchants, JENKINS never represented any legitimate jewelry business. In fact, at all relevant times, JENKINS was incarcerated at a Florida state correctional institution, where he was assisted by CONCEPCION, who was also incarcerated at the same institution. BROOKS, COOPER, LARA, and GRANT, who at all relevant times were at liberty in the community, created and delivered counterfeit checks, accepted packages from merchants, and distributed proceeds from the fraud to others in the scheme.
JENKINS, 51 of Indiantown, Florida, BROOKS, 27, of Miramar, Florida; COOPER, 36, of West Palm Beach, Florida; LARA, 41, of Port Saint Lucie, Florida; GRANT, 31, of North Charleston, South Carolina; and CONCEPCION, 46, of Indiantown, Florida, are each charged with one count of conspiring to commit mail and wire fraud, which carries a maximum penalty of 20 years in prison, one count of interstate transportation of stolen property, which carries a maximum penalty of 10 years in prison, and one count of possessing fictitious obligations, which carries a maximum penalty of 25 years in prison. JENKINS is also charged with one count of aggravated identity theft, which carries a mandatory penalty of two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
* * *
Mr. Bharara praised the outstanding work of the FBI, the New York FBI’s Eurasian Joint Organized Crime Task Force, CBP, NYPD, and FDC for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s General Crimes Unit. Assistant U.S. Attorneys Andrew M. Thomas and Karin Portlock are in charge of the case.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Six Individuals Arrested for Carjacking, Hobbs Act, and Firearms OffensesRead the Press Release
SAN JUAN, P.R. – On June 2, 2016, a federal grand jury returned a six-count indictment against six individuals for interference of commerce by threats of violence or Hobbs Act, use of firearms during and in relation to a crime of violence, and carjacking, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The indictment is the result of a joint effort between the United States Attorney’s Office (USAO), the Federal Bureau of Investigation’s Save Our Streets Initiative (SOS) and the Puerto Rico Police Department (PRPD). The FBI’s SOS is one of the various components of the USAO’s Illegal Firearms and Violent Crime Reduction Initiative.
The indictment alleges that on or about April 2, 2016, in the District of Puerto Rico, Joel Miranda-Figueroa, Richard Cruz-Monzón, Felix Tomás Cruz-Carrión, aka “Tomate,” and Jonathan Rodríguez-Díaz, aiding and abetting each other, robbed La Revolución Barber Shop in Arroyo, PR. The defendants, aided and abetted by each other, unlawfully took $705.00, cellular phones, purses and personal belongings threatening employees and clients with firearms in order to commit the robbery.
On April 11, 2016, defendants Miranda-Figueroa, Cruz-Monzón, Bryan Steven Ramos-Marrero, aka “Zurdo,” and Erick Álamo-Rodríguez, aiding and abetting each other, committed carjacking. These four defendants stole a 2000 red Jeep Compass, while using and brandishing a firearm, from the person N.M.M. by threats and violence. On that same day, three of the defendants robbed a Gulf Gas Station/store in Maunabo, PR. The defendants took approximately $3,200 to $3,600, and approximately $66.00 worth in Newport Cigarettes threatening the employees and clients with firearms.
“The investigations by the SOS team of FBI special agents and designated PRPD officers will continue into similar crimes in other areas of Puerto Rico,” said US Attorney Rosa Emilia Rodríguez-Vélez. “The collaboration and team work between state and federal law enforcement agencies in the investigation and prompt filing of charges show the immediate results we continue to obtain with this joint initiative.”
“Today’s successful operation should be attributed to the outstanding investigative skills of our partners, the Police of Puerto Rico. Their diligence in tracking down the alleged perpetrators comes not only from a sense of duty, but from their sincere desire to make Puerto Rico a safer place. Regrettably, while these arrests took place, new incidents of carjacking occurred in other parts of the island. Those responsible will soon be brought to justice in the same manner as today’s arrestees. Soon, it will become ever more clear that those who commit or assist in committing a carjacking will have their freedom replaced by a prison cell, for many years,” said Douglas A. Leff, Special Agent in Charge of the FBI, San Juan Field Office.
The case is being prosecuted by Special Assistant United States Attorney Daynelle M. Álvarez-Lora. If convicted, the defendants face up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Shreveport man sentenced to 20 years in prison for methamphetamine chargeRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Shreveport man was sentenced this week to 240 months in prison for possessing methamphetamine, which he intended to sell.
Lloyd E. Barmore, 34, of Shreveport, was sentenced Monday by U.S. District Judge Elizabeth E. Foote on one count of possession with intent to distribute methamphetamine. He was also sentenced to five years of supervised release. According to the January 6, 2016 guilty plea, Louisiana State Police stopped Barmore’s vehicle on July 10, 2014. During a search of the vehicle, 915.2 grams of methamphetamine, a Springfield XD 9 mm handgun, digital scales and $5,914 in cash were found. The methamphetamine belonged to Barmore, and he intended to transfer or deliver it to another person. The driver of the vehicle was 16 years old.
“It is unacceptable that this felon put a child directly in harm’s way to further his continued drug trafficking,” said Finley. “Firearms and drugs are a dangerous combination. Methamphetamine cases are a priority for this office. We will continue to work with our law enforcement partners to investigate and prosecute these cases in an effort to make sure our communities are safe by keeping criminals like Barmore off the street.”
The DEA and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Sex Offender Charged for Failing to Register in MassachusettsRead the Press Release
BOSTON – A Brockton man was charged today in U.S. District Court in Boston for failing to register as a sex offender.
Charles Towers, 52, was indicted on one count of failing to register as a sex offender. In May 2016, Towers was arrested and charged in a criminal complaint.
According to court documents, in October 2009, Towers was convicted in San Diego Superior Court of attempted forcible oral copulation and sentenced to 18 months in jail and ordered to register as a sex offender for life.
Upon release from jail, Towers registered as a sex offender in California. In April 2014, Towers moved from San Diego to Brockton and failed to both notify the San Diego Police Department’s Sex Offender Unit of his change of address and to register as a sex offender with the Massachusetts Sex Offender Registry Board, as he was legally required to do.
The charging statute provides a sentence of no greater than 10 years in prison, a minimum of five years and no longer than a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and U.S. Marshal John Gibbons of the District of Massachusetts made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Nicholas Soivilien of Ortiz’s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Serial Fraudster Indicted for Investment Advisor Fraud and Money LaunderingRead the Press Release
United States Attorney Andrew M. Luger today announced an indictment charging RANDY MILAND, 62, for operating a Ponzi scheme through which he stole or attempted to steal more than $500,000 from purported investors. MILAND made an initial appearance today before Magistrate Judge Steven E. Rau in U.S. District Court in St. Paul, Minn.
“IRS-Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes. We will vigorously pursue those individuals who victimize investors and violate the public trust," said Special Agent in Charge Shea Jones of the IRS-Criminal Investigation Division of the St. Paul Field Office. "The indictment of Randy Miland demonstrates the government's determination to restore and ensure that trust.”
“As the indictment alleges, Randy Miland is a serial scam artist with no regard for his victims,” said Minnesota Commerce Commissioner Mike Rothman. “He used fake investments to steal people’s life savings before, and now he’s done it again. The Commerce Fraud Bureau worked with federal authorities to stop his fraudulent schemes and protect Minnesotans.”
According to the indictment and documents filed in court, in 1999, MILAND was convicted in state court of theft by swindle and ordered to pay more than $1.5 million in restitution to the victims of his scheme. As of May 2016, MILAND still owed to the victims nearly the entire amount.
According to the indictment and documents filed in court, in 2006, MILAND was convicted of fraud in federal court and ordered to pay more than $250,000 in restitution to the victims. As of May 2016, MILAND owed approximately $124,000 in restitution.
According to the indictment and documents filed in court, between 2010 and 2014, MILAND fraudulently solicited approximately $575,000 from investors, telling them that he would use their money to invest in futures and other legitimate investments. Instead, he used their money to pay personal expenses, including court-ordered restitution to victims of his prior scams, and to make Ponzi-type payments to other purported investors.
According to the indictment and documents filed in court, MILAND concealed from the new victims that he had been twice convicted of fraudulent conduct, that he was forbidden by the Minnesota Department of Commerce from offering or selling securities, and that he still owed more than $1.5 million in restitution to victims of prior schemes.
The case is being prosecuted by Assistant United States Attorney Joseph H. Thompson.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS and the Minnesota Department of Commerce Fraud Bureau.
Defendant Information:
RANDY MILAND, 62
White Bear Lake, Minn.
Charges:
- Mail fraud, 5 counts
- Money laundering, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Sentencings for June 3 - June 7, 2016Read the Press Release
Sean O’Neil, 35, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on June 3, 2016, for possession of a firearm not registered in the National Firearms Registration and Transfer Record. O’Neil received 12 months and one day imprisonment, to be followed by two years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Herminio Garcia-Reyes, 26, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on June 3, 2016, for illegal re-entry of a previously deported alien into the United States. Garcia-Reyes was arrested in Cheyenne, Wyoming. He was sentenced to time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Hilda Mireya Ibarra-Avilez, 43, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 7, 2016, for illegal re-entry of a previously deported alien into the United States. Ibarra-Avilez was arrested in Powell, Wyoming. She was sentenced to time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Adrian Diaz-Angeles, 29, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 7, 2016, for illegal re-entry of a previously deported alien into the United States. Diaz-Angeles was arrested in Laramie, Wyoming. He was sentenced to time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Martin Hernandez-Galacias, 32, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on June 7, 2016, for illegal re-entry of a previously deported alien into the United States. Hernandez-Galacias was arrested in Jackson, Wyoming. He received six months imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Sayre Woman Sentenced to 120 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that DIXIE ANN MORPHIS, age 36, of Sayre, Oklahoma, was sentenced to 120 months imprisonment for POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A)(viii).
The charge arose from an investigation by the McAlester Police Department and the Drug Enforcement Administration.
The Indictment alleged that on or about December 5, 2015, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute fifty (50) grams or more of methamphetamine (actual), a Schedule II controlled substance.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which she will serve her nonparoleable sentence.
Assistant United States Attorney Tim Hammer represented the United States.
Philadelphia Resident Charged with Illegal ReentryRead the Press Release
Jose Alberto Rosario-Morales, a/k/a Miguel Hidalgo-Santos,” a/k/a “Luis Santos,” of Philadelphia, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about May 11, 2016, Rosario-Morales, an alien, and native and citizen of the Dominican Republic, was found in the United States after having been deported from the United States on or about November 17, 2010.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, a possible fine, a $100 special assessment, and a period of supervised release.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Andrew J. Schell.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Omaha Man Sentenced to 15 Years in Prison for Possession with the Intent to Distribute Methamphetamine while in Possession of a FirearmRead the Press Release
United States Attorney Deborah R. Gilg announced that Jose Jimenez, 37, of Omaha, Nebraska, was sentenced on June 9, 2016, to 15 years in prison by United States District Judge Joseph F. Bataillon. Jimenez had previously pled guilty to Possession with the Intent to Distribute more than 500 grams of Methamphetamine and Possessing a Firearm in Relation to a Drug Trafficking Crime. Jimenez was arrested and indicted on the charges after Omaha police officers twice utilized a cooperating witness who purchased quantities of methamphetamine from him. On September 29, 2015, officers executed a search warrant at Jimenez’s Omaha residence. Officers found items consistent with the sale of methamphetamine. Jimenez was arrested nearby in his car, a search of which revealed approximately nine pounds of methamphetamine and two firearms.
As a result of possessing more than 500 grams of methamphetamine, Jimenez was sentenced to a mandatory minimum of 10 years in prison, with an additional 5 years for possession of a firearm. After serving his sentence Jimenez will be required to serve a Term of Supervised Release of 5 years.
This case was the result of an investigation by the Omaha Police Department.
Notice of Press ConferenceRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina -- United States Attorney Bill Nettles and Fourteenth Circuit Solicitor Duffie Stone will hold a press conference Friday, June 10, 2016 at the Fourteenth Circuit Solicitor’s Office to provide a 6-month update on the partnership between the Fourteenth Circuit Solicitor’s Office and the U.S. Attorney’s Office.
WHEN: Friday, June 10, 2016 TIME: 5:00 PM WHERE:Fourteenth Circuit Solicitor's Office
39 Sheridan Park Circle, Ste. 2
Bluffton, SC 29910NOTE: Press inquiries regarding logistics should be directed to Beth Drake, 803-929-3061. All media must present government-issued photo id (such as a driver’s license). All media should be in place 20 minutes prior to start. Parking will be available behind the building.
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Norway Man Pleads Guilty to Illegally Possessing FirearmsRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Stephen Bean, 55, of Norway, Maine pled guilty yesterday in U.S. District Court to possessing firearms after being convicted of a felony offense.
According to court records, on November 21, 2015, Maine Game Wardens encountered Bean hunting with two other men in the Paris, Maine area. The other men were carrying a shotgun and a rifle both belonging to and provided by Bean. The weapons were seized. A search of Bean’s residence on January 7, 2016 resulted in the seizure of another shotgun and rifle. Bean was prohibited from possessing firearms as the result of a 2005 felony conviction for operating after revocation in Maine state court.
Bean faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Maine Warden Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Newmarket Man Pleads Guilty to Drug Distribution Causing DeathRead the Press Release
CONCORD – United States Attorney, Emily Gray Rice announced today that Benjamin Rogers, 31, appeared before United States District Court Chief Judge Joseph Laplante and pleaded guilty to distribution of a controlled substance resulting in death.
According to documents that were filed in United States District Court and statements in the plea proceeding, Rogers worked at a restaurant in Portsmouth, New Hampshire with the victim, Cassie Clermont, 30. On October 17, 2014, Rogers arranged to provide a quantity of drugs to Ms. Clermont. Text messages and witness statements showed that Rogers left the restaurant and later returned to the restaurant parking lot, where he met with Ms. Clermont and provided her with a quantity of drugs. Ms. Clermont later left the restaurant and went to her apartment in Portsmouth. She was found dead the next day, with fentanyl and drug paraphernalia near her body.
The New Hampshire Medical Examiner later found that Ms. Clermont died of acute fentanyl intoxication. New Hampshire has the third-highest rate of per capita drug overdose deaths in the United States. More than half of the drug overdose deaths in New Hampshire in 2015 were the result of fentanyl, either alone or in combination with other drugs.
United States Attorney Rice said, “I want to thank the Portsmouth Police Department, the Drug Enforcement Administration, the Newmarket Police Department, the New Hampshire Medical Examiner’s Office and the Rockingham County Attorney’s Office for their work on this case. Fighting the opioid epidemic is a multi-pronged, team effort. One facet of our attack is to prosecute those who are criminally responsible for causing drug overdoses. We will continue to work with law enforcement agencies to identify and prosecute the individuals who distribute drugs that cause overdose deaths. Any drug distribution has the potential to be deadly, regardless of the quantity of drugs involved. When a drug distribution causes an overdose death, my office will seek to hold the distributor accountable.”
In April 2016, the United States Attorney’s Office and the New Hampshire Attorney General’s Office announced the formation of an inter-office team of prosecutors who will work together to prosecute individuals who cause opiate overdoses in New Hampshire. This prosecution, initiated before the creation of the joint team, is an example of the type of case that will be generated by the team.
The case was prosecuted by Assistant United States Attorney John J. Farley.
A sentencing hearing has been scheduled for September 19, 2016.
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New York woman pleads guilty to credit card fraudRead the Press Release
CHARLESTON, W.Va. – A New York City woman pleaded guilty yesterday to credit card fraud, announced Acting United States Attorney Carol Casto. Nayosha Aice, 25, entered her guilty plea to the felony offense of possession of 15 or more counterfeit access devices. A counterfeit access device is a credit card that has been altered to contain stolen account information that is magnetically re-encoded on the credit card.
Aice admitted that she, along with a codefendant, possessed 78 counterfeit access devices. Aice drove from New York City, using these counterfeit credit cards to buy cartons of Newport cigarettes and other merchandise. She was observed at the St. Albans Go-Mart using multiple counterfeit cards on June 25, 2015, and after noticing the suspicious behavior, store employees contacted law enforcement. Once observed by police, Aice attempted to throw the credit cards away in a nearby store. Officers recovered the credit cards and subsequently confirmed that the credit cards were counterfeit access devices.
Aice faces up to 10 years in federal prison and a $250,000 fine when she is sentenced on September 15, 2016. Her codefendant, Sasha Nelson, is scheduled for trial on June 21, 2016. Nelson is presumed innocent unless and until proven guilty in a court of law.
The St. Albans Police Department and the United States Secret Service conducted the investigation. Assistant United States Attorneys Erik S. Goes and Eric Bacaj are in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
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New York Man Pleads Guilty to Sex Trafficking of a MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JORDAN ANATE, also known as “Pills” and “Che Pills,” 25, most recently of the Bronx, N.Y., pleaded guilty today before U.S. District Judge Vanessa L. Bryant in Hartford to one count of sex trafficking of a minor.
According to court documents and statements made in court, on March 5, 2015, East Hartford Police encountered an underage girl in a room at a local motel. The victim stated that she had met ANATE in New York and that, beginning in approximately December 2014, she had engaged in acts of prostitution at ANATE’s direction in various locations, including multiple trips to Connecticut.
The investigation revealed that the victim was prostituted by ANATE at hotels in Hartford, Manchester, New Britain and East Hartford. The victim had seen several clients per week, giving all of the money to ANATE.
In pleading guilty, ANATE admitted that he knew the victim was under the age of 18.
“The sex trafficking of minors is a form of modern day slavery,” said U.S. Attorney Daly. “This defendant victimized a young runaway; a girl he knew was under the age of 18. I thank the FBI and East Hartford Police Department for investigating this matter, recovering this victim, and preventing this defendant from victimizing any other girls or women for at least the next 10 years.”
Judge Bryant scheduled sentencing for September 14, 2016, at which time ANATE faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
ANATE has been detained since his arrest on March 5, 2015.
This matter has been investigated by the Federal Bureau of Investigation and the East Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and David E. Novick.