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8 June 2016
Man Charged in $2.2M Bank Loan Fraud SchemeRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that an Indictment was been handed down by a federal grand jury yesterday charging William Cook, age 60, of Ocean City, Maryland, with bank fraud and money laundering. The defendant faces up to 30 years in prison on the bank fraud charge, and up to 10 years on the money laundering charge, in addition to possible fines and restitution.
The Indictment alleges that the defendant operated a business in Sussex County, Delaware, called AJJ Distributing LLC (“AJJ”). AJJ obtained a loan from a bank in Delaware, in March 2008. According to the terms of the loan, AJJ was permitted to borrow funds from the bank, through periodic requests for disbursements, in an amount not to exceed 75% of the value of AJJ’s accounts receivables. The defendant verified the amount of AJJ’s accounts receivable through weekly Borrowing Base Certificates (“BBCs”), which he signed and faxed to the Delaware bank.
According to the Indictment, from on or around January 16, 2009 through April 16, 2010, the defendant falsified AJJ’s accounts receivables on BBCs submitted to the bank, by failing to properly account for amounts owed to AJJ from third parties. Over time, the defendant requested and obtained at least $2.2 million from the bank in loan proceeds after AJJ’s loan was already overdrawn according to its terms. The Indictment alleges that, in April, 2010, the defendant falsely over-represented AJJ’s outstanding accounts receivable by approximately $3 million.
U.S. Attorney Oberly gave the following comment, “I want to thank both the IRS and the Postal Service Investigators, who diligently pursue such frauds as alleged in this Indictment, and who pursue cases like this despite a shortage of personnel.”
This case is the result of an investigation conducted by the Internal Revenue Service, Criminal Investigation and the United States Postal Inspection Service. The prosecution is being handled by Assistant United States Attorney Lauren Paxton.
The charges in the Indictment are only allegations. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Long Beach Lobbyist Agrees to Plead Guilty to Federal Tax Offense for Failing to Report Income Received from Illegal Marijuana StoresRead the Press Release
LOS ANGELES – A Long Beach-based lobbyist, whose clients included illegal marijuana stores in Long Beach, has been charged with filing a false tax return and failing to report more than three-quarters of a million dollars in income over a six-year period.
Carl A. Kemp, 43, of Long Beach, the owner of the public relations firm The Kemp Group, was charged yesterday with subscribing to a false tax return for the year 2012.
“For years, Mr. Kemp failed to accurately report his income to the IRS, going so far as reporting zero taxable income for 2012 when his business brought in more than $200,000,” said United States Attorney Eileen M. Decker. “Everyone, no matter what business they are engaged in, has a responsibility to fully report their income on their income tax returns.”
In a plea agreement also filed yesterday, Kemp agreed to plead guilty to the tax offense. As part of the plea agreement, Kemp admits receiving a total of $754,783 in income that he failed to report on his taxes for the years 2007 through 2012. Kemp admits that he owes the Internal Revenue Service a total of $210,661 to cover the back taxes due for those six years, as well as a civil fraud penalty.
“As admitted by Kemp in documents filed with the court today, all forms of income are taxable, including cash payments received from illegal marijuana dispensaries and fees paid for lobbying services,” stated IRS Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando. “Those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don’t.”
The charge of subscribing to a false tax return carries a statutory maximum penalty of three years in federal prison.
Kemp will be directed by the court to appear for an arraignment in this case, likely later this month.
The case against Kemp was investigated by IRS Criminal Investigation and the Federal Bureau of Investigation.
Lebanon Sex Offender Indicted for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a registered sex offender in Lebanon, Mo., was indicted by a federal grand jury today for receiving and distributing child pornography over the Internet.
Kavin Dywayne Finley, 43, of Lebanon, was charged in an indictment returned by a federal grand jury in Springfield, Mo. Finley is registered with the Missouri Sex Offender Registry due to his 1999 conviction for child molestation in Arizona.
Today’s indictment alleges that Finley received and distributed child pornography over the Internet from April 2 to May 12, 2015.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Missouri State Highway Patrol, the Missouri State Technical Assistance Team and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Kyle Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Kyle, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on June 3, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Raymond Richard Janis, age 33, was sentenced to 24 months of imprisonment, followed by 2 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Janis was charged on February 18, 2015, and pleaded guilty on February 29, 2016. The conviction stems from Janis being found in possession of methamphetamine during a traffic stop near Kyle.
The investigation was conducted by the Northern Plains Safe Trails Task Force and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Joplin Business Owner Indicted for $3 Million Fraud Scheme Related to 2011 Tornado Clean-UpRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Joplin, Mo., business owner has been indicted by a federal grand jury for a $3 million disaster fraud scheme in which his company received a government contract, designated for a service disabled veteran-owned small business that hired local workers, to clean up debris following the May 2011 tornado.
Raul R. Gonzales, 47, of Neosho, Mo., was charged in a 10-count indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, June 7, 2016.
Under the terms of a contract managed by the U.S. Army Corps of Engineers to remove tornado debris from public rights-of-way and residential property in the wake of the 2011 tornado, the prime contractor was required to be a service disabled veteran-owned small business. The contract also specified that at least 50 percent of the work must be done by employees residing in Jasper and Newton counties.
Gonzales owned and operated Intelligent Investments, Inc., in Joplin, which was registered with the Department of Veterans Affairs as a service disabled veteran-owned small business. Intelligent Investments was awarded a contract in June 2011 and received payments of approximately $3 million.
According to the federal indictment, a company outside the state of Missouri – identified in the indictment as Company A – recruited Intelligent Investments to bid on and obtain the contract as the primary contractor, because Company A did not qualify. The indictment alleges that Gonzales and Company A agreed that he would perform little, if any, work on the contract. Instead, Company A would perform virtually all the work on the contract using its own resources and subcontractors, which were not local. Gonzales and Company A allegedly agreed to split the net profits received from claims under the contract, with Company A to receive substantially more than half of the net profits.
The indictment charges Gonzales with one count of conspiracy to defraud the United States, three counts of making a false claim, three counts of disaster fraud and three counts of making and using a false document.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the U.S. Army Criminal Investigation Command – Major Procurement Fraud Unit, the Defense Contract Audit Agency, the Defense Criminal Investigative Service, the Department of Homeland Security – Office of Inspector General, the FBI and the Joplin, Mo., Police Department.
Hendersonville Physician Indicted on Federal Kickback ChargesRead the Press Release
Dr. Hailu T. Kabtimer, 56, of Hendersonville, Tennessee, was indicted by a federal grand jury today, charging him with five counts of violating the federal anti-kickback act, announced David Rivera, United States Attorney for the Middle District of Tennessee.
“Medical providers who break the law to enrich themselves will be caught and prosecuted,” said U.S. Attorney David Rivera. “This office and our law enforcement partners will continue our vigorous efforts to enforce the anti-kickback law and to hold accountable medical professionals who accept illegal cash kickbacks.”
According to the indictment, Dr. Kabtimer entered into an arrangement in March 2013 under which he would be paid cash in exchange for referring patients needing medical equipment to a particular supplier. The indictment alleges that, on eight occasions in 2013 and 2014, Dr. Kabtimer accepted cash kickback payments totaling $3,400 in exchange for referring patients to this medical equipment supplier. The indictment further alleges that Dr. Kabtimer accepted kickbacks of $200 per patient referred for the provision of a CPAP ventilator and $300 per patient referred for the provision of an oxygen unit.
Dr. Kabtimer faces up to 5 years in prison on each count, and also faces forfeiture of any proceeds traceable to the commission of the charged offenses. His sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General, and the Tennessee Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys William F. Abely and Thomas J. Jaworski.
Havre De Grace Sex Offender Pleads Guilty to Transporting Child PornographyRead the Press Release
Baltimore, Maryland – Gary Scott Conway, age 45, of Havre de Grace, Maryland, pleaded guilty late yesterday to transporting child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; the Federal Bureau of Investigation, Idaho Office; Ada County (Idaho) Sheriff Stephen Bartlett; Harford County Sheriff Jeffrey R. Gahler; and U.S. Marshal Johnny Hughes.
According to his plea agreement, Conway collected child pornography on the internet. From October 2014 to July 2015, Conway used an internet chat website to communicate with adults and minor children. Beginning on March 30, 2015, he uploaded child pornography to an internet-based file storage service.
On May 29, 2015, representatives from the internet-based file storage service notified the National Center for Missing and Exploited Children that Conway’s account contained at least 35 videos of child pornography. The Harford County Sheriff’s Office investigated, determined that the files were uploaded from Conway’s residence, and executed a search warrant at the residence on July 8, 2015. Investigators seized various digital media, including a desktop computer. Forensic analysis of that computer revealed at least 350 images of child pornography, including depictions of prepubescent children engaged in sexual acts.
Conway’s internet file storage service account was examined pursuant to a search warrant, and was found to contain approximately 3,174 unique images and 319 unique videos of child pornography. The videos and images depicted prepubescent boys and girls engaged in sexual acts with adult men, including oral sex and anal sex.
On July 14, 2015, Conway took his wife’s vehicle and fled Maryland. Conway had previously been convicted in 2004 in the Circuit Court for Harford County, Maryland of sexual offense in the third degree for having oral sex with a 15 year old victim, and was sentenced to 10 years’ incarceration, all of which was initially suspended. When he fled Maryland, Conway failed to notify the Maryland Sex Offender Registration authorities, as required by law. He travelled to Virginia, Tennessee, New Mexico, Arkansas, Oklahoma, Texas, California, Arizona and Idaho.
While in Arizona, Conway stayed at a resort in Sedona for 12 days. During that time, he did not notify the state of Arizona of his sex offender status; and two families complained to the local authorities that Conway made inappropriate sexual advances toward their teenage sons. After being questioned by Sedona Police, Conway left Sedona before his resort reservation was completed. He travelled to Six Flags Magic Mountain in California, and then to Idaho.
Conway stayed in Idaho for more than three weeks, never notifying the state authorities of his sex offender status. He was arrested in Idaho on August 26, 2015.
Conway admitted that as a medical professional in the Navy, he once performed oral sex on a male patient while the patient was sedated.
He also admitted to sexually molesting a severely autistic, non-verbal boy while the victim was 11 to 13 years old; having sexual contact on multiple occasions with an eight year old girl; sexually molesting two infants, one of which was the child of a Navy colleague whom he was babysitting; fondling two boys between the ages of nine and 10 years old while playing with them in and around a pool; and engaging in sex acts with two different 15 year old boys who he met online.
As part of his plea agreement, Conway must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Conway faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of 40 years in prison. U.S. District Judge J. Frederick Motz scheduled sentencing for September 9, 2016 at 9:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Harford County Sheriff’s Office, Ada County (Idaho) Sheriff’s Office; and U.S. Marshal Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
Hacienda Heights Man Sentenced to Federal Prison in Tax Refund Scheme that used Stolen Identities to Fraudulent Seek $2.6 MillionRead the Press Release
LOS ANGELES – A San Gabriel Valley man has been sentenced to 30 months in federal prison for his role in a scheme that used stolen identities to file fraudulent tax returns with the Internal Revenue Service that sought more than $2.6 million in false tax refunds.
Heber Cotton, 40, of Hacienda Heights, received the prison sentenced Monday, and he was further ordered by United States District Judge Michael W. Fitzgerald to pay $725,294 in restitution to the IRS.
Heber Cotton pleaded guilty in November to one count of conspiracy to defraud the United States by obtaining the payment of false claims, namely tax refunds.
Heber Cotton’s father and co-defendant – Adel Cotton, 64, also of Hacienda Heights – is currently serving a prison term of 51 months for his role in the scheme.
According to court documents, beginning in December 2008 and continuing through March 2010, the Cottons caused at least 275 fraudulent income tax returns to be filed with the IRS. Those fraudulent returns sought income tax refunds totaling more than $2.6 million.
“Stolen identity refund fraud continues to be a significant problem that harms both the IRS and taxpayers whose identities are fraudulently used without their knowledge,” said United States Attorney Eileen M. Decker. “This father and son pair prolifically defrauded the government and hundreds of taxpayers, earning them the significant sentences imposed by the court.”
As part of the scheme, Adel Cotton obtained the names and Social Security numbers of individuals without their knowledge and consent. Adel Cotton, with the help of others, prepared false Forms W-2 (IRS Wage and Tax Statements) in the names of the identity theft victims that reported false employment and income information, as well as false tax withholding amounts. Using the falsified information reported on the Forms W-2, Adel Cotton and others prepared fraudulent individual income tax returns claiming false tax refunds. The tax returns were filed without the knowledge or consent of the identity theft victims.
In his plea agreement, Heber Cotton admitted that the fraudulent tax returns filed as part of the scheme directed the IRS to mail the refund checks to addresses the that he and Adel Cotton controlled. Heber Cotton also admitted that he gave personal information associated with the identity theft victims to a co-conspirator who managed a bank, which the co-conspirator used to open bank accounts and cash the fraudulent refunds. Herber Cotton further admitted that, toward the end of the conspiracy, he paid the co-conspirator bank manager approximately 20 percent of each tax refund check that the bank manager cashed.
"These unscrupulous defendants, a father and son team, thought they had figured out a clever scheme to thwart the IRS and steal from American taxpayers," stated IRS Criminal Investigation's Acting Special Agent in Charge Anthony J. Orlando. "IRS CI has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system."
The investigation into Heber Cotton and Adel Cotton was conducted by IRS Criminal Investigation and the Federal Bureau of Investigation.
Gloucester Seafood Executive Indicted on Tax ChargesRead the Press Release
BOSTON – A senior sales executive at a seafood processing company in Gloucester was indicted yesterday on federal tax charges.
Richard J. Pandolfo, 70, of North Andover, was indicted on four counts of making and subscribing false tax returns. He is scheduled to be arraigned before U.S. District Court Magistrate Judge Kelley on June 16, 2016. He was initially charged in a criminal complaint and arrested on April 7, 2016.
According to the indictment, from 2009 to 2012, Pandolfo received substantial supplemental income for his work at the seafood processing company in Gloucester from the company’s president. Some of those payments were allegedly made directly to Pandolfo or his wife, but Pandolfo did not report or pay taxes on any of those payments. The indictment also alleges that other payments were made to a shell company set up in the name of Pandolfo’s wife, and were directed through a shell company controlled by the company’s president. Pandolfo allegedly did report that income, but claimed personal expenses as business expenses and deducted them, thereby improperly lowering the taxes he owed.
The charging statute provides a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. This case is being prosecuted by Assistant U.S. Attorneys Stephen E. Frank and Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Frederick Pediatrician Whose License Was Revoked Admits to Prescribing Oxycodone Without a Medical NeedRead the Press Release
Baltimore, Maryland – Nicola Tauraso, age 81, of Frederick, Maryland pleaded guilty today to health care fraud.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Colonel Robert K. "Ken" Ziegler Jr., Superintendent of the Maryland Natural Resources Police; Washington County Sheriff Douglas W. Mullendore; and Captain Paul “Joey” Kifer, Acting Chief of the Hagerstown Police Department.
According to his plea agreement, from 1972 to 2007, Tauraso practiced as a pediatrician. In 2009 he began a practice in pain management, located in Frederick, in which he saw an excessive number of patients and wrote prescriptions for certain drugs, particularly Oxycodone and Oxycontine, without determining if a medical need existed for these prescriptions. For example, records of Tauraso’s prescriptions with only one pharmacist showed that in 2009 to 2010, he wrote 6,368 prescriptions, and that oxycodone accounted for the vast majority.
Cash deposits and the number of prescriptions gradually increased through the beginning of 2010 and peaked in May 2010, when Tauraso had $251,673 in cash deposits. Tauraso deposited approximately $821,358 in cash into his bank accounts in 2010, of which approximately $575,000 was transferred to a bank in Panama.
Law enforcement frequently observed three or four patients getting out of a car to enter Tauraso’s office. Former employees told law enforcement that Tauraso would see approximately 80 patients in a usual eight hour day.
In June 2011, the Maryland State Board of Physicians revoked Tauraso’s medical license, after finding that Tauraso prescribed Oxycondone, oxycontin and other drugs to 17 patients without taking sufficient medical history, or performing a physical or other tests.
An insurance investigator found that: 75% of the patients listed were being seen for lumbago, a non-descript diagnosed back injury, which is a red flag for drug diversion; the volume of medical claims was alarming; at least five patients were prescribed Oxycontin, Oxycodone, Xanax and Tramadol, which is a deadly medication combination; patients traveled from great distances including from Pasadena, Dundalk, Prince George’s County and outside Maryland in order to see Tauraso; and patients did not use insurance for doctor visits with Tauraso, but used insurance for their prescriptions.
At least seven pharmacists in the Frederick area stopped filling Tauraso’s prescriptions in 2009 and 2010 due to concerns that these prescriptions were not medically necessary.
Taursao admitted that the loss from his billings to Medicare and Medicaid and for fraudulent prescriptions was $350,000.
Tauraso has agreed to forfeit funds held in his Panamanian bank account, which is approximately $100,000.
Tauraso faces a maximum sentence of 10 years in prison. U.S. District Judge Marvin J. Garbis scheduled sentencing for August 8, 2016 at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the DEA, Frederick County Sheriff’s Office, Department of Health and Human Services – OIG, Maryland Natural Resources Police, Washington County Sheriff’s Office and the Hagerstown Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.
Former Stockbroker Pleads Guilty to Fraud ChargesRead the Press Release
PHILADELPHIA - William Bucci, 59, of Philadelphia, PA, pleaded guilty today to one count of securities fraud, four counts of mail fraud, one count of mortgage fraud, and pleaded nolo contendere to five counts of subscribing a false tax return. U.S. District Court Judge Joel H. Slomsky scheduled a sentencing hearing for November 17, 2016.
Beginning as early as 2004, Bucci, a licensed stockbroker at the time, falsely represented to several brokerage clients that he was starting a business to import high end olive oil and wine from Italy. As a result of defendant’s representations, the clients and others invested approximately $1,284,000. Bucci never had an olive oil and wine business. Instead of investing the money, Bucci spent it on his own expenses.
Between 2004 and 2012, the defendant induced others to loan him money based on representations that he would put it toward a down payment on the purchase of real estate on the New Jersey shore and would repay it with significant interest. Instead, Bucci used the victims’ money for his own purposes, including to pay off his extensive credit card debt and to pay earlier victims.
Bucci obtained a $480,000 loan in 2011 from Beneficial Mutual Savings Bank, an FDIC insured institution, to purchase real estate in Brigantine, New Jersey. After obtaining the loan, the defendant fell behind on his payments. In negotiations with the bank, the defendant provided Beneficial with a false financial statement omitting significant liabilities. The defendant provided the document to bank employees in an attempt to deceive them about his ability to pay back the loan and thereby increase the chance that the bank would enter into a forbearance agreement with him.
As a result of his fraud schemes, Bucci obtained approximately $2.9 million between 2007 and 2011. Bucci did not report any of the money he took from the scheme on his tax returns for those tax years.
Bucci faces a statutory maximum sentence of 145 years in prison, restitution of up to $3.2 million, a possible fine, and up to three years of supervised release, and a $1,100 special assessment when sentenced.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney David J. Ignall and Trial Attorney Derek J. Ettinger with the Fraud Section of the Department of Justice’s Criminal Division.
Former Navy Sailor Sentenced for Distributing Child PornographyRead the Press Release
NORFOLK, Va. – Jon A. Miller, 47, of Bloxom, was sentenced today to 10 years in prison and a lifetime of supervised release for distribution of child pornography.
Miller pleaded guilty to one count of distribution of child pornography on February 17. According to court documents, in April 2015, Miller distributed child pornography by accessing the internet from his Navy Marine Corps Intranet workstation at Naval Surface Combat Systems Command on Wallops Island. Miller sent emails to other internet users that included sexually explicit images of prepubescent females. He also uploaded child pornography to Twitter, which resulted in Twitter notifying the National Center for Missing and Exploited Children of the defendant’s activities, and ultimately allowed NCIS agents to identify him.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Tim Quick, Special Agent in Charge of the Norfolk Field Office, made the announcement after sentencing by U.S. District Chief Judge Rebecca Beach Smith. Special Assistant U.S. Attorney Alyssa K. Nichol prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-21.
Former NYPD Sergeant Pleads Guilty to Fraudulently Obtaining Disability BenefitsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Edward J. Ryan, the Special Agent in Charge of the United States Social Security Administration, Office of the Inspector General, announced that THOMAS SHEA, a former New York City Police Department (“NYPD”) sergeant, pled guilty today to one count of theft of public funds for fraudulently obtaining more than $600,000 in disability benefits from the Social Security Administration (“SSA”). In 1995, SHEA submitted a fraudulent application for disability benefits to the SSA that contained misrepresentations regarding his claimed disability. Then, at the same time SHEA was collecting disability benefits in the years since 1995, he was employed in a number of positions that he knowingly failed to report to the SSA. SHEA pled guilty before U.S. District Judge Jed S. Rakoff.
Manhattan U.S. Attorney Preet Bharara said: “Thomas Shea defrauded the Social Security Administration for over twenty years, fraudulently collecting more than half a million dollars of funds meant for people who are the truly disabled. I would like to thank the Social Security Administration, Office of the Inspector General, for their work in bringing an end to Shea’s fraud.”
Special Agent in Charge John F. Grasso said: “This investigation should serve as a warning to people who choose to selfishly defraud Social Security’s disability programs. The Social Security Office of the Inspector General vigorously pursues these cases and works closely on prosecution efforts with United States Attorney’s Offices across the country. We will continue to partner with the USAO in the Southern District of New York to identify and prosecute Social Security fraud perpetrators. We would also like to thank the Manhattan District Attorney’s Office for its assistance with this this investigation. I strongly encourage the public to report suspected instances of Social Security fraud to the OIG’s Fraud Hotline at 1-800-269-0271 or https://oig.ssa.gov/report.”
According to the Information filed in the case, as well as statements made during the plea proceedings:
Beginning in 1981, SHEA worked as a police officer with the NYPD. In approximately 1987, SHEA was promoted to sergeant and then retired in 1993 due to a shoulder injury.
In January 1995, at the age of approximately 35, SHEA submitted a fraudulent application for Social Security Disability Insurance (“SSDI”), a federal benefits program that provides monthly cash benefits to individuals who have worked in the past and paid into Social Security, but who can no longer work due to qualifying medical disabilities. In order to receive disability benefits, a beneficiary must certify that he or she is incapable of performing any gainful activity due to the stated disability. In addition, a beneficiary must report to the SSA all sources of income from work activity and any changes in the beneficiary’s medical condition. The application for SSDI submitted by SHEA contained misrepresentations regarding SHEA’s claimed disability.
From June 1994 through September 2015, SHEA received over $600,000 in disability benefits for himself and members of his family based on his reported disability and lack of other work or income. During this time, SHEA also provided the SSA with periodic forms concerning his status. For example, in January 1999, SHEA submitted a form to the SSA in which SHEA agreed that he would “notify the Social Security Administration if [his] medical condition improves or [he] go[es] to work.” By signing this document, SHEA acknowledged his understanding that “anyone who makes a false statement or representation of a material fact in an application or for use in determining a right to payment under the Social Security Act commits a crime under Federal Law.”
While SHEA was receiving SSDI benefits, SHEA was gainfully employed in a number of positions that he knowingly failed to report to the SSA. For example, from 1999 through 2014, SHEA worked as a commercial driver in the Bronx, New York, and elsewhere for at least three different employers.
In June 2015, the SSA issued a decision to redetermine the eligibility of SHEA for disability benefits on the basis that there was reason to believe that fraud or similar fault was involved in SHEA’s application for benefits. Specifically, the SSA found that SHEA’s application was based on tainted evidence submitted by a discredited physician, and that there was no non-tainted evidence supporting the prior finding of SHEA’s disability.
In September 2015, after the SSA scheduled a hearing regarding the eligibility of SHEA for disability benefits, SHEA requested that the SSA terminate his benefits.
* * *
SHEA, 56, of Stony Point, New York, pled guilty to one count of theft of government funds, which carries a maximum sentence of 10 years in prison. According to the agreement with the Government to which he pled guilty, SHEA owes approximately $622,843 in restitution and forfeiture. SHEA is scheduled to be sentenced on October 7, 2016, before Judge Rakoff.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the United States Social Security Administration, Office of the Inspector General.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
Former Employee of Silicon Valley Company Pleads Guilty to Damaging Ex-Employer’s ComputersRead the Press Release
SAN JOSE – Kenneth Kezeor pleaded guilty yesterday to intentionally damaging a protected computer, announced United States Attorney Brian J. Stretch and FBI Special Agent in Charge John F. Bennett. In pleaded guilty, Kezeor acknowledged attacking a corporate computer application of his former employer.
As part of his plea agreement, Kezeor, 47, of Felton, Calif., acknowledged he was hired by a Silicon Valley company on July 7, 1997, and worked for the company and its successor until he was terminated on October 31, 2012, as part of a reduction in force. Prior to his termination, Kezeor worked as the system administrator for a customer support application and therefore had high-level access to the application and the associated database. Kezeor admitted that, for about four months after his termination, he used his administrator accounts to intentionally cause damage to his former employer’s application by transmitting information, codes, and commands. Kezeor also admitted to using the account of another employee to cause damage to the application. Kezeor’s transmissions impaired the availability and integrity of data, programs, systems, or information.
Kezeor was indicted by a federal grand jury on April 30, 2014. He was charged with one count of intentional transmission causing damage to a protected computer, in violation of 18 U.S.C. § 1030(a)(5)(A); and one count of intentional access to a protected computer recklessly causing damage, in violation of 18 U.S.C. § 1030(a)(5)(B). On April 28, 2016, the grand jury handed down a superseding indictment adding an additional charge of aggravated identity theft, in violation of 18 U.S.C. § 1028A. Pursuant to yesterday’s agreement, Kezeor pleaded guilty to a single count of intentional transmission causing damage to a protected computer.
Kezeor remains free on bond. He is scheduled to be sentenced by the Honorable Beth Labson Freeman, U.S. District Judge, on September 20, 2016. The defendant faces a statutory maximum term of ten years’ imprisonment and a maximum $250,000 fine. An additional term of supervised release, fines, and restitution may be imposed, however, any sentence would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. As part of his plea agreement, Kezeor has agreed to pay restitution in an amount to be set by the Court at the time of sentencing.
Assistant U.S. Attorneys Michelle J. Kane and Matthew A. Parrella are prosecuting the case with the assistance of Elise Etter and Melissa Dorton. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Former Car Dealership Employee Convicted for her Participation in a Stolen Identity Tax Fraud SchemeRead the Press Release
Following a two-day trial before United States District Court Judge Donald M. Middlebrooks, a jury convicted a Jensen Beach resident for her participation in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Micheline Eppolito, 29, of Jensen Beach, was convicted of one count of possessing fifteen or more unauthorized access devices, affecting interstate commerce, in violation of Title 18, United States Code, Section 1029(a)(3), and five counts of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1).
According to evidence presented at trial, Eppolito worked at Treasure Coast Lexus car dealership on US 1 in Fort Pierce. Eppolito accessed and printed 44 automobile printouts, from a database shared by automobile dealerships, which contained 68 customers’ personal identifying information from a work computer located in her office. The defendant then sold the printouts to Patrick J. Ward [Case No. 14-CR-14006]. Ward paid Eppolito approximately $80 worth of oxycodone pills for the printouts.
According to court documents, a prison cell mate of Ward’s was interested in buying any Social Security numbers that Ward could come across to be used to prepare false tax returns. Ward admitted that he bought all the notebooks and papers to resell for profit.
On January 20, 2015, Ward was sentenced to 70 months in prison, to be followed by three years of supervised release. Ward previously pled guilty to one count of possessing fifteen or more access devices and one count of aggravated identity theft.
Eppolito is scheduled to be sentenced by United States District Court Judge Donald M. Middlebrooks on August 18, 2016. At sentencing, Eppolito faces up to ten years in prison for the access devices charge, and two years’ imprisonment, consecutive to any other prison term, for each of the aggravated identity theft charges.
Mr. Ferrer commended the investigative efforts of IRS-CI and thanked the St. Lucie County Sheriff’s Office for their assistance. The case is being prosecuted by Assistant U.S. Attorneys Theodore Cooperstein and Courtney L. Coker.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Former Beaumont ISD Assistant Superintendent Sentenced for Federal ViolationsRead the Press Release
BEAUMONT, Texas – A former Beaumont Independent School District (BISD) Assistant Superintendent has been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Patricia Adams Lambert, 62, of Beaumont, pleaded guilty on Dec. 28, 2015, to theft concerning programs receiving federal funds and conspiracy to submit false statements concerning standardized test scores and was sentenced to 40 months in federal prison today by U.S. District Judge Thad Heartfield. Lambert was immediately taken into custody by the U.S. Marshals Service.
Also sentenced today was Victoria Gauthier Steward, 31, of Lake Charles, LA. Steward pleaded guilty on Dec. 23, 2015 to conspiracy to make false statements, related to the manipulation of BISD test scores and was sentenced to three years of federal probation.
According to information presented in court, Lambert was hired by BISD on June 13, 2002, as a teacher, and on Aug. 28, 2002, she was promoted to Assistant Principal at Vincent Middle School. On July 15, 2004, Lambert was promoted to Principal and assigned to French Middle School, and on July 1, 2006, she was assigned to Central Medical Magnet High School (“CMMHS” or “Central”) as Principal. As Principal of Central, Lambert was responsible for oversight of the campus; managing personnel; ensuring proper reporting of grades, testing, and attendance to BISD administration; and financial oversight for certain aspects of the campus. On May 17, 2012, Lambert was promoted to Assistant Superintendent.
States are mandated by the No Child Left Behind Act (NCLBA) of 2001 to implement academic assessment tests in order to receive federal funding under the NCLBA. The NCLBA requires the Texas Education Agency to develop, implement, and regulate the student assessment tests. In Texas, public school students are required to take end-of-year assessment tests at particular grade levels. Students must pass these tests in order to move on to the next grade level or graduate. The Texas Education Agency (TEA) requires that campus principals and test administrators sign “Oaths of Test Security and Test Confidentiality,” ensuring full compliance concerning test security and confidentiality. Through words and actions, Lambert created a culture at CMMHS among the faculty and staff where cheating on standardized tests was accepted. Lambert, either directly or indirectly, encouraged teachers and staff to manipulate students’ standardized test scores or had knowledge that cheating occurred. Despite the fact that she knew that cheating was occurring on standardized tests, she signed and submitted Oaths of Test Security, including one in January of 2010, as alleged in the indictment, where she falsely affirmed all the requirements governing standardized test security were met. The government could prove, through first-hand witnesses, that teachers would aggregate large numbers of tests and then erase and change incorrect answers to correct answers after students turned their tests; teachers would give students answers while they were taking the tests; and that test manipulation occurred on a regular basis from 2007-2012. The Texas Education Agency (TEA) is mandated by the US Department of Education to administer and regulate standardized testing, including maintaining test security. As part of its test security measures, TEA requires that teachers abide by all test security regulations and sign Oaths of Test Security. These test scores are then communicated to the US Department of Education, who relies on the scores, among other metrics, in determining the appropriate disbursement of federal education funds. The falsified oaths were capable of misleading TEA or the US Department of Education.
In October 2007, Lambert took over control of the CMMHS “All Sports” Booster Club from the parent/volunteers who previously ran the Booster Club. From that point forward, Lambert had access to Booster Club funds by way of the Booster Club checking account. From 2007 until 2013 Lambert made purchases of personal items, not related to school activities, by using Booster Club checks and the Booster Club debit card. During this same time period, Lambert wrote and signed Booster Club checks fraudulently made out to herself, her relatives, and “cash,” and deposited those checks into her own personal bank account, knowing she lacked the proper authority to do so.
In addition, during the relevant time period in the indictment, Lambert also had access to the CMMHS Student Activity funds account. From 2007 through 2013 Lambert purchased items, some of which were for her personal use or the use of her family members, and other items not related to school activities, by writing checks on the CMMHS Student Activity funds checking account. During this same time period, Lambert wrote and signed Student Activity fund checks fraudulently made out to herself, and others and deposited those checks into her own personal bank account, or those of her relatives, knowing full well that she had no authority to do so.
Additionally, from 2007 through 2013, Lambert employed her son, Brian Collins, as the primary “printer” for various items including, but not limited, to pamphlets, flyers, banners, football programs, graduation programs, and instructional materials, and helped secure his payment for these items from Booster Club, Student Activity fund, and the BISD general fund, knowing full well that Collins, rather than doing any actual printing work, was securing the services of an actual printing business, and marking up the price for that work anywhere from 25%-215%.
During the years Lambert was principal at CMMHS, the school generated significant amounts of cash through various means. For example, when students were found with cell phones on campus or lost their student ID cards, they were required to pay a monetary penalty, usually approximately $10. Lambert also established an on-campus snack sales area, located near the cafeteria, where students could purchase candy and chips for approximately one dollar each. This money was aggregated in a file cabinet drawer in the bookkeeper’s office, and Lambert maintained access to this area. Between 2007 and 2012, Lambert made regular and substantial cash deposits into her personal bank accounts, totaling approximately $171,525.
From Jan. 1, 2010 through Dec. 31, 2010, Lambert, while an employee of BISD stole, embezzled, obtained by fraud, or otherwise without authority knowingly converted to the use of another property in aggregate amounts adding up to $5,000 or more, from BISD in the manner stated in the paragraphs above. During 2010, BISD received in excess of $10,000 in federal funds through various federal grants and programs.
This case was prosecuted as part of the Joint Task Force established in March 2014 between the U.S. Attorney’s Office for the Eastern District of Texas and the Jefferson County District Attorney’s Office to investigate and prosecute major crimes – more specifically, violent crime and crimes related to the abuse of public trust in Jefferson County, Texas.
If you have any information related to this matter, please call the Federal Bureau of Investigation at 409-832-8571.
This investigation was conducted by the Federal Bureau of Investigation, the Department of Education Office of Inspector General, the Texas Education Agency, the Jefferson County District Attorney’s Office and the Beaumont Police Department. This case was prosecuted by Assistant U.S. Attorneys Joseph R. Batte, Christopher T. Tortorice, Bob Wells and Bradley Visosky.
Florida Man Involved in High Speed Chase Found Guilty of Drug and Firearm OffensesRead the Press Release
SAVANNAH, GA – Maurice Luclare Williams, 34, of Jacksonville, Florida, was found guilty on June 7, 2016 of possessing with intent to distribute heroin, cocaine, and numerous pharmaceutical drugs following a jury trial in the United States District Court. Judge William T. Moore, Jr. presided over the trial. Williams was also found guilty of possessing a firearm in furtherance of the drug trafficking offense and of possessing a firearm as a convicted felon. Williams faces up to life in prison based on his lengthy criminal history. A sentencing date has yet to be set.
The evidence showed that on June 13, 2015, Williams led officers of the Pooler Police Department and Georgia State Patrol on a lengthy, high speed chase through West Chatham County following his failure to pull over for a speeding violation. The vehicle was a GMC Yukon that had been stolen near Jacksonville. The pursuit was eventually joined by the Effingham County Sheriff’s Office and Bloomingdale Police Department. The chase ended in a residential neighborhood in Effingham County where the defendant was apprehended following a foot chase into a nearby wooded area. Heroin, cocaine, and the other drugs were located in a black tote bag that was dropped from the stolen GMC Yukon driven by Williams as he abandoned the vehicle.
United States Attorney Edward Tarver said, “The defendant in this case is a four-time convicted drug felon who placed members of the motoring public and the residents of a quiet neighborhood in great peril by his actions. This defendant is a persistent and unrepentant drug dealer who will now be held to account for his very serious crimes.”
The investigation was led by the DEA. A number of law enforcement agencies participated in the investigation, including the Pooler Police Department, Georgia State Patrol, Effingham County Sheriff’s Office, the GBI, the Chatham-Savannah Counter-Narcotics Team, the ATF, and the United States Marshal’s Service. The case was prosecuted by Assistant United States Attorney Karl Knoche. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
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, MERINOLD 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.
Federal Jury Convicts Man of Smuggling nearly Two Tons of Marijuana from Ensenada to Santa Barbara County on Panga BoatRead the Press Release
LOS ANGELES – A resident of Tecate, Mexico has been found guilty of federal drug trafficking charges for piloting a “panga” boat stuffed with nearly two tons of marijuana from Ensenada to the United States.
Following a three-day trial, the man, 24-year-old Jose Guadalupe Zepeda-Ramirez, was found guilty on June 2 of two felony counts – conspiracy to possess with the intent to distribute marijuana and possession with the intent to distribute marijuana.
Zepeda and another man – Miguel Rodriguez-Doranme, 39, of La Paz, Mexico – were found on March 27 near a panga that had landed on a private beach near Hollister Ranch, which is just west of Gaviota. A panga is an open-bowed fishing vessel that is often used by smugglers bringing marijuana north from Mexico.
According to the evidence presented at Zepeda’s trial, the two men brought the marijuana from Ensenada during a six-day journey. The men had planned to meet a second crew that would off-load the marijuana for further distribution.
The plan was thwarted when Zepeda and Rodriquez were spotted while landing on Alegria Beach. They were detained by a Hollister Ranch security guard until law enforcement arrived.
The investigation revealed that the panga was carrying 1,656 kilograms – or more than 3,650 pounds – or marijuana.
United States District Judge Manuel Real, who presided over Zepeda’s trial, is scheduled to sentence the defendant on September 19. As a result of his conviction on the two charges, Zepeda faces a mandatory minimum sentence of 10 years in federal prison, and he could be sentenced to a maximum term of life.
Rodriguez, who previously pleaded guilty to the conspiracy count, is scheduled to be sentenced on August 1, at which time he will face a maximum sentence of 20 years in prison.
“Law enforcement is working hard at curtailing the smuggling of drugs on panga boats,” said United States Attorney Eileen M. Decker. “We will continue to enforcement efforts by prosecuting those who engage in this dangerous method of smuggling.”
The investigation was conducted by special agents with U.S. Immigration and Custom Enforcement’s Homeland Security Investigations (HSI), the Santa Barbara County Sheriff’s Department, the United States Coast Guard, U.S. Customs and Border Protection - Border Patrol, the California Highway Patrol and the California National Guard.
“This case and the subsequent conviction are a direct result of the ongoing collaborative efforts by HSI, together with its federal and local partners, to detect and deter maritime smuggling,” said Edward Owens, deputy special agent in charge for HSI Los Angeles. “Maritime smuggling poses both a security and a public safety concern and we’re continuing to use all of the resources and tools at our disposal to address this threat.”
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.— The results of the June 2016 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Ryan Matthew Beck. Illegal Making of Destructive Devices and Possession of Unregistered Destructive Devices. Beck, 28, of Bartlesville, is charged with one count of making five destructive devices and one count of possession of destructive devices which had not been registered to him in the National Firearms Registration and Transfer Record. If convicted, Beck faces the statutory maximum penalty of 10 years in prison and a fine not to exceed $10,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Tulsa Police Department Bomb Squad, and Bartlesville Police Department are the investigating agencies.
Kevin Dewayne Burris. Failure to Surrender for Service of Sentence. Burris, 50, of Tulsa, is charged with failing to self-surrender at the designated federal correctional institute for service of his sentence following a conviction in the United States District Court for the Northern District of Oklahoma. If convicted, Burris faces a statutory maximum penalty of 10 years in prison and a $250,000 fine. The Federal Bureau of Investigation and United States Marshal Service are the investigating agencies.
Eric Daniel Cox. Theft of Mail. Cox, 36, of Tulsa, is charged with unlawfully removing a pill bottle and its contents from a package in the United States mails. If convicted, Cox faces the statutory maximum penalty of five years in prison and a fine of $250,000. The U.S. Postal Service-Office of Inspector General is the investigating agency.
Michael Joseph Gray. Possession of Methamphetamine with Intent to Distribute. Gray, 29, of Tulsa, is charged with possession with intent to distribute methamphetamine. If convicted, Gray faces a statutory maximum penalty of 20 years in prison and a $1,000,000 fine. The Bureau of Indian Affairs and the Drug Enforcement Administration is the investigating agency.
Kasey Dale Jackson. Theft From Indian Country in Excess of $1,000. Jackson, 29, of Pryor, a non-Indian, is charged with stealing personal property in excess of $1,000 from an Indian. If convicted, Jackson faces the statutory maximum penalty of five years in prison and a $250,000 fine. The Cherokee Nation Marshals Service and Federal Bureau of Investigation are the investigating agencies.
Kenyon James Miller. Distribution of Child Pornography and Possession of Child Pornography. Miller, 33, of Tulsa, is charged with distribution and possession of child pornography. If convicted, Miller faces the statutory minimum penalty of five years and maximum penalty of 20 years in prison and a $250,000 fine for the distribution of child pornography charge; and a statutory maximum penalty of 20 years in prison and a $250,000 fine for the possession of child pornography charge. The Federal Bureau of Investigation is the investigating agency.
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Employee of a Silver Spring Non-Profit Admits to Stealing over $270,000Read the Press Release
Greenbelt, Maryland – Monica Kendrick, age 47, of Walkersville, Maryland, pleaded guilty today to wire fraud arising from a scheme in which she embezzled money from her employer.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Ebert of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to her plea agreement, In May 2014, Kendrick was hired as the office and finance administrator for a non-profit organization located in Silver Spring, Maryland, which acted as a trade association for the herbal products industry. Almost immediately after being hired, Kendrick began stealing money from the company. From May 2014 to November 2015, Kendrick wrote over 80 unauthorized checks from the company and deposited the fraudulent checks into a bank account. She then withdrew the illicit proceeds from the account.
Kendrick has agreed to pay restitution of $271,921.06, the total amount of loss resulting from the scheme.
Kendrick faces a maximum sentence of 20 years in prison and a fine of $250,000. U.S. District Judge Theodore D. Chuang scheduled sentencing for August 15, 2016, at 10:30 a.m.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Leah Jo Bressack, who is prosecuting the case.
East St. Louis Man Sentenced for Bank RobberyRead the Press Release
An East St. Louis man, Deondre Jones, 45, convicted of bank robbery, was sentenced to 56 months in federal prison on June 7, 2016, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Following release from imprisonment, Jones will serve three years of supervised release. Jones was also ordered to pay a $100 special assessment, and was ordered to pay $510.63 in restitution to Scott Credit Union. Jones pled guilty to the charge on February 11, 2016. Jones has been in custody since his arrest on October 1, 2015.
Documents filed with the court indicate that Jones told a teller at Scott Credit Union in Belleville that he had a gun and wanted ten $10 bills; although the teller counted out ten such bills, Jones left with only eight. He used the money to obtain cocaine and the services of a prostitute.
The case was investigated by agents of the Federal Bureau of Investigation and members of the Belleville Police Department. The case was prosecuted by Assistant United States Attorney Stephen B. Clark.
Eagle Butte Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on June 6, 2016, by U.S. District Judge Roberto A. Lange.
Christofer Sand, age 18, was sentenced to 33 months in custody, followed by 2 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Sand was indicted by a federal grand jury on November 10, 2015. He pled guilty on January 20, 2016.
The conviction stemmed from an incident on August 10, 2015, when Sand, who was at his residence with other people, drinking, socializing, and playing video games, got angry at the victim and stabbed him three times in the chest, and one time on his side under his left arm. The victim had difficulty breathing, but was able to walk to a friend’s house where he collapsed.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Sand was immediately turned over to the custody of the U.S. Marshals Service.
District Man Found Guilty of Charges in Sexual Attack of Woman During Home InvasionRead the Press Release
WASHINGTON – Antwon Pitt, 22, of Washington, D.C., was found guilty by a jury today of charges stemming from a sexual assault against a woman he attacked while she was working from her Southeast Washington home, U.S. Attorney Channing D. Phillips announced.
Pitt was found guilty of charges of first-degree sexual abuse, kidnapping, first-degree burglary, robbery, threats, and felony assault. The verdict followed a trial in the Superior Court of the District of Columbia. Pitt will be sentenced on Aug. 19, 2016 by the Honorable Florence Pan. He remains in custody pending further court proceedings.
According to the government’s evidence, on Oct. 13, 2015, at approximately 2:15 p.m., the victim was alone and working at home on her computer. Suddenly she saw Pitt standing in her apartment. He had entered through an unlocked door. After learning that the woman was alone, he grabbed her and slammed her onto the floor. He proceeded to violently press his hand over the victim's mouth and nose as he forced her down the hall with his other hand around her throat. Once in the victim's bedroom, he raped the victim on her own bed. After the rape, he took the victim's phone, demanded her passcode, and left. The victim was taken to the hospital where she was treated for her injuries, which included fractured facial bones requiring surgery.
The Metropolitan Police Department (MPD) obtained surveillance footage from the alley by the victim's building showing a suspect walking through the alley after the rape wearing a backpack and bright orange shoelaces. MPD was then able to track the victim's phone to a gas station in Mitchellville, Md., where Pitt, who matched the description of the person in the surveillance footage and the description provided by the victim, was stopped. At the time of his stop, Pitt had the victim's phone and checks made out to the victim's husband, as well as a pair of gloves. Pitt’s DNA and the victim's DNA were found on gloves. At the time of the crime, Pitt was on release in a pending drug case.
Pitt is awaiting trial in the Superior Court of the District of Columbia on charges related to another burglary that took place on Oct. 6, 2015 in Northeast Washington. The victim in that case awakened to discover a man in her home. The man robbed her of her cellphone, wallet, and other personal belongings and fled. Pitt has pled not guilty to charges in that case.
In announcing the verdict, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the assistance provided by the U.S. Secret Service, the FBI, the U.S. Marshals Service, the Metro Transit Police Department, the District of Columbia Department of Forensic Sciences, Sorenson Forensics, and Signature Science, LLC. He acknowledged the efforts of a team that worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donhue Troy Griffith and D’Yvonne Key, Victim/Witness Advocates Tracey Hawkins and Veronica Vaughan, and Criminal Investigator John Marsh. Finally, he commended the work of Assistant U.S. Attorneys Sarah McClellan and Luke Jones, who investigated and prosecuted the case.
Dauphin County Man Arrested for Drug Trafficking and Possession of A FirearmRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Khalid Fahide Carter, age 22, of Harrisburg was arrested yesterday by the Federal Bureau of Investigation Capital City Safe Streets Task Force and the Harrisburg Bureau of Police.
Carter had his initial appearance before United States Magistrate Judge Susan E. Schwab on June 7, 2016 and was ordered detained.
According to United States Attorney Peter Smith, Carter was indicted in May 2016 for distribution of cocaine base, also known as crack cocaine, and possession of a firearm in furtherance of a drug trafficking crime on January 12, 2016. During the drug deal, Carter allegedly possessed a .40 caliber semi-automatic handgun.
This case was investigated by the Federal Bureau of Investigation Capital City Safe Streets Task Force and the Harrisburg Bureau of Police. The case is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a $1,250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Couple Arrested for CarjackingRead the Press Release
SAN JUAN, P.R. – Today, a federal grand jury returned a one-count indictment against two individuals for carjacking, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The Federal Bureau of Investigation is in charge of the investigation.
The indictment alleges that on or about June 2, 2016, in the District of Puerto Rico, Bernard Díaz-Pérez and Jessenia Salgado-Ortiz, aiding and abetting each other, with the intent to cause death and serious bodily harm, did take a motor vehicle, to wit: a red 2008 Scion, model XD, that had been transported, shipped or received in interstate or foreign commerce, from the presence of F.N.R., by force, violence and intimidation, resulting in serious bodily injury, that is, sexually assaulting a female passenger, all while using a replica gun, in violation of Title 18, United States Code, Section 2119(2).
“Unfortunately, this carjacking resulted in more than the material loss of a car; a victim was sexually assaulted. This type of behavior is unconscionable and unacceptable. The U.S. Attorney’s Office will prosecute these defendants to the full extent of the law,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
“This arrest was the result of a five-day manhunt, during which time numerous dedicated agents of the FBI and our law enforcement partners worked tirelessly to identify, locate, and apprehend the subject of these serious allegations. Violent crime, including carjacking, has skyrocketed in Puerto Rico. In recognition of this epidemic, FBI Headquarters will deploy additional resources to the San Juan Division. In the coming weeks, federal law enforcement will announce increased activity which is being undertaken to enable the citizens of Puerto Rico to be able to go about their lives without fear of violent robberies and attacks. As always, the public's help is essential to apprehending these violent criminals, and citizens with information are asked to call the FBI San Juan Field Office at 787-754-6000, or to use the tip line available at our website, https://www.fbi.gov/,” said Douglas A. Leff, Special Agent in Charge of the FBI, San Juan Field Office.
The case is being prosecuted by Assistant United States Attorney Max Pérez Bouret. If convicted, the defendants face up to 25 years in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Clayton Man Sentenced to 15 Years for Receipt of Child PornographyRead the Press Release
WILMINGTON – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court, Senior United States District Judge James C. Fox sentenced jason william wheelEr, 37, of Clayton, North Carolina, to 180 months imprisonment, followed by a five years of supervised release.
WHEELER was named in a Criminal Information filed on December 15, 2015. On January 25, 2016, WHEELER pled guilty to one count of Receipt of Child Pornography.
In July 2014, Homeland Security Investigations (HSI) executed a federal search warrant at a residence in Florida, for distribution and possession of child pornography. The investigation revealed that the owner sent numerous emails containing sexually explicit photographs and videos to WHEELER, in Clayton.
On October 2, 2014, agents executed a federal search warrant at WHEELER’S residence in Clayton. Based on the investigation, WHEELER used multiple computers to send and receive a collection of Child Pornography (CP) comprised of at least 82 images and 61 videos. The defendant’s collection contained material that depicted children involved in sexual bondage or sexual sadomasochistic acts. On April 4, 2015, WHEELER provided a written statement accepting responsibility for his actions in regards to this offense.
Investigation of this case was conducted by the Department of Homeland Security, Homeland Security Investigations (HSI), the North Carolina State Bureau of Investigations (SBI), and the Johnston County Sheriff’s Office. Assistant United States Attorney Ethan Ontjes represented the government.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Brookfield Man, Woman Indicted for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Brookfield, Mo., couple has been indicted by a federal grand jury today for their roles in a conspiracy to distribute methamphetamine.
Charleston B. Leach, 31, and Cecilia Lynn Spath, 31, both of Brookfield, were charged in a four-count indictment returned by a federal grand jury in Kansas City, Mo., on Tuesday, June 7, 2016.
The federal indictment alleges that Leach and Spath conspired to distribute 500 grams or more of methamphetamine from March 1, 2014, to May 1, 2015. They are also charged with aiding and abetting each other to possess with the intent to distribute 50 grams of pure methamphetamine and to possess with the intent to distribute marijuana on May 1, 2015.
Leach is also charged with one count of using the mail to facilitate the distribution of methamphetamine and marijuana.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the U.S. Postal Inspection Service, the North Missouri Drug Task Force, the Kansas City, Mo., Police Department and the Northeast Missouri Drug Task Force.
Brockport Investment Advisor Sentenced for Defrauding Investors in A Ponzi 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 Eduardo Galan, 65, of Brockport, NY, who was convicted of mail fraud and money laundering, was sentenced to three years in prison by U.S. District Judge Frank P. Geraci. The defendant was also ordered to pay $1,100,000 in restitution to the victims of the fraud.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Galan owned and controlled a financial services business, S&G Unlimited Services, in Brockport. The defendant was a registered securities broker until October 2008, at which time he was barred from the industry. From January 2008 to March 2013, Galan engaged in a Ponzi scheme. The defendant promised investors that he would use their money to broker private mortgage transactions, but instead used it to repay earlier investors and cover personal and business expenses.In total, Galan defrauded 18 investors out of $821,912 before the fraud was discovered. Further investigation disclosed that Galan owed other clients money as well, for a total of $1,098,567.26.
The sentencing is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Shantelle P. Kitchen.Additional Defendants Sentenced for Roles in Sex Trafficking SchemeRead the Press Release
WASHINGTON – Additional defendants were sentenced today for their respective roles in a sex trafficking scheme operated out of the Riviera Motel in New Orleans, which compelled multiple women to engage in prostitution in New Orleans and elsewhere, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana.
Duane Phillips, 31, was sentenced to 251 months in prison; Anthony Ellis, 27, was sentenced to 15 years in prison; and Zacchaeus Taylor, 23, was sentenced to 99 months in prison. Phillips, Ellis and Taylor are all from Memphis, Tennessee. Restitution for the victims will be determined at a separate hearing on July 13, 2016.
On April 20, 2015, Phillips and Ellis pleaded guilty to conspiracy to engage in sex trafficking by force, fraud and coercion. Ellis also pleaded guilty to interstate transportation for prostitution. On June 25, 2014, Taylor pleaded guilty to conspiracy to engage in sex trafficking and to interstate transportation for prostitution.
“People who engage in human trafficking violate the most basic standards of human decency,” said Principal Deputy Assistant Attorney General Gupta. “The Civil Rights Division is unwavering in our commitment to seeking justice on behalf of vulnerable individuals and to holding human traffickers accountable.”
“Ending human trafficking is a critical priority in this district,” said U.S. Attorney Polite. “The lengthy sentences imposed today should stand as a warning to would-be traffickers that we are investing considerable federal resources into combating this criminality.”
“Today’s sentencing of these four defendants brings an end to their mistreatment and abuse of women,” said Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Division. “The FBI Child Exploitation/Human Trafficking Task Force, in conjunction with the Department of Justice, HSI and our other state and local partners, will continue to investigate and bring justice for all victims of human trafficking throughout Louisiana.”
“Human trafficking is a form of modern-day slavery that ICE Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with the FBI and our state and local law enforcement partners,” said Special Agent in Charge Raymond R. Parmer Jr. of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New Orleans. “The results speak for themselves: over the past two years HSI has doubled its number of human trafficking arrests. HSI will continue to investigate and seek prosecution of these criminals while also ensuring the victims of this terrible crime are rescued and get the care they need.”
During their respective plea hearings and in their respective court filings, Phillips and Ellis admitted that they, along with their co-defendants Granville Robinson, Christopher Williams and Laquentin Brown, conspired to recruit, groom, force, compel and coerce adult women to engage in prostitution, enforcing rules and means of control that included requiring the women to earn a certain amount of money each day, requiring them to turn over the proceeds and prohibiting them from speaking to or looking at other pimps. To enforce the rules, Phillips, Ellis and another defendant each admitted that they and their co-conspirators used a variety of punishments, including withholding food and forcing the victims to engage in additional commercial sex acts, as well as physical assaults. Phillips and Ellis each admitted that they and their co-conspirators consulted one another on means of furthering their pimping activities and would monitor each other’s victims when a co-conspirator was incarcerated. The defendants also admitted that they brought women to other cities, including Washington, D.C., and Baltimore, for coerced prostitution
According to his plea agreement, Taylor, who was charged separately, admitted that he met Phillips in 2012 and agreed to become Phillips’ protégé. After learning the strict rules that Phillips, Ellis and others used to force and coerce women to engage in prostitution, Taylor began applying the rules himself. Like his co-conspirators, he kept the identification cards of the women in order to keep them from leaving. On several occasions, Taylor physically assaulted a woman because she did not earn enough money by engaging in commercial sex acts. He also kept the money that the women earned, and if a woman did not earn enough money, he would order her to continue until she had. Taylor also admitted that he brought an adult woman from Memphis to New Orleans and elsewhere for the purpose of forcing and coercing her to engage in prostitution. The co-conspirators operated out of certain motels, including the Riviera, which generally did not report their activities to the police. The defendants rented multiple rooms at the Riviera where the women would meet prostitution clients and paid higher rates for the rooms because of the increased traffic.
Former Riviera Motel owner, Kanubhai Patel, 75, of Kenner, Louisiana, was also sentenced today to five years probation and ordered to pay a $10,000 fine. On July 1, 2015, Patel pleaded guilty to benefitting financially from human trafficking. Robinson was sentenced to 294 months in prison on May 4, 2016. He previously pleaded guilty to one count of conspiring to commit sex trafficking and one count of sex trafficking.
Williams and Brown have also pleaded guilty to conspiracy to engage in sex trafficking by force, fraud and coercion, and are awaiting sentencing.
On Oct. 3, 2014, a grand jury in the Eastern District of Louisiana returned a second superseding indictment charging Phillips and Ellis, along with Robinson, Brown and Williams, with sex trafficking conspiracy and varying counts of sex trafficking and transportation for prostitution. The second superseding indictment also charged Patel. Taylor was charged separately on March 28, 2014.
This case was investigated jointly by the FBI’s New Orleans Division and HSI’s New Orleans Field Office, with assistance from the FBI’s Memphis Division. This case is being prosecuted by Trial Attorney Christine M. Siscaretti of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.
Additional Defendants Sentenced for Roles in Sex Trafficking SchemeRead the Press Release
Sex Trafficking Scheme Used Threats, Violence and Coercion to Compel Women into Prostitution in New Orleans and Elsewhere
Additional defendants were sentenced today for their respective roles in a sex trafficking scheme operated out of the Riviera Motel in New Orleans, which compelled multiple women to engage in prostitution in New Orleans and elsewhere, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana.
Duane Phillips, 31, was sentenced to 251 months in prison; Anthony Ellis, 27, was sentenced to 15 years in prison; and Zacchaeus Taylor, 23, was sentenced to 99 months in prison. Phillips, Ellis and Taylor are all from Memphis, Tennessee. Restitution for the victims will be determined at a separate hearing on July 13, 2016.
On April 20, 2015, Phillips and Ellis pleaded guilty to conspiracy to engage in sex trafficking by force, fraud and coercion. Ellis also pleaded guilty to interstate transportation for prostitution. On June 25, 2014, Taylor pleaded guilty to conspiracy to engage in sex trafficking and to interstate transportation for prostitution.
“People who engage in human trafficking violate the most basic standards of human decency,” said Principal Deputy Assistant Attorney General Gupta. “The Civil Rights Division is unwavering in our commitment to seeking justice on behalf of vulnerable individuals and to holding human traffickers accountable.”
“Ending human trafficking is a critical priority in this district,” said U.S. Attorney Polite. “The lengthy sentences imposed today should stand as a warning to would-be traffickers that we are investing considerable federal resources into combating this criminality.”
“Today’s sentencing of these four defendants brings an end to their mistreatment and abuse of women,” said Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Division. “The FBI Child Exploitation/Human Trafficking Task Force, in conjunction with the Department of Justice, HSI and our other state and local partners, will continue to investigate and bring justice for all victims of human trafficking throughout Louisiana.”
“Human trafficking is a form of modern-day slavery that ICE Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with the FBI and our state and local law enforcement partners,” said Special Agent in Charge Raymond R. Parmer Jr. of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New Orleans. “The results speak for themselves: over the past two years HSI has doubled its number of human trafficking arrests. HSI will continue to investigate and seek prosecution of these criminals while also ensuring the victims of this terrible crime are rescued and get the care they need.”
During their respective plea hearings and in their respective court filings, Phillips and Ellis admitted that they, along with their co-defendants Granville Robinson, Christopher Williams and Laquentin Brown, conspired to recruit, groom, force, compel and coerce adult women to engage in prostitution, enforcing rules and means of control that included requiring the women to earn a certain amount of money each day, requiring them to turn over the proceeds and prohibiting them from speaking to or looking at other pimps. To enforce the rules, Phillips, Ellis and another defendant each admitted that they and their co-conspirators used a variety of punishments, including withholding food and forcing the victims to engage in additional commercial sex acts, as well as physical assaults. Phillips and Ellis each admitted that they and their co-conspirators consulted one another on means of furthering their pimping activities and would monitor each other’s victims when a co-conspirator was incarcerated. The defendants also admitted that they brought women to other cities, including Washington, D.C., and Baltimore, for coerced prostitution.
According to his plea agreement, Taylor, who was charged separately, admitted that he met Phillips in 2012 and agreed to become Phillips’ protégé. After learning the strict rules that Phillips, Ellis and others used to force and coerce women to engage in prostitution, Taylor began applying the rules himself. Like his co-conspirators, he kept the identification cards of the women in order to keep them from leaving. On several occasions, Taylor physically assaulted a woman because she did not earn enough money by engaging in commercial sex acts. He also kept the money that the women earned, and if a woman did not earn enough money, he would order her to continue until she had. Taylor also admitted that he brought an adult woman from Memphis to New Orleans and elsewhere for the purpose of forcing and coercing her to engage in prostitution. The co-conspirators operated out of certain motels, including the Riviera, which generally did not report their activities to the police. The defendants rented multiple rooms at the Riviera where the women would meet prostitution clients and paid higher rates for the rooms because of the increased traffic.
Former Riviera Motel owner, Kanubhai Patel, 75, of Kenner, Louisiana, was also sentenced today to five years probation and ordered to pay a $10,000 fine. On July 1, 2015, Patel pleaded guilty to benefitting financially from human trafficking. Robinson was sentenced to 294 months in prison on May 4, 2016. He previously pleaded guilty to one count of conspiring to commit sex trafficking and one count of sex trafficking.
Williams and Brown have also pleaded guilty to conspiracy to engage in sex trafficking by force, fraud and coercion, and are awaiting sentencing.
On Oct. 3, 2014, a grand jury in the Eastern District of Louisiana returned a second superseding indictment charging Phillips and Ellis, along with Robinson, Brown and Williams, with sex trafficking conspiracy and varying counts of sex trafficking and transportation for prostitution. The second superseding indictment also charged Patel. Taylor was charged separately on March 28, 2014.
This case was investigated jointly by the FBI’s New Orleans Division and HSI’s New Orleans Field Office, with assistance from the FBI’s Memphis Division. This case is being prosecuted by Trial Attorney Christine M. Siscaretti of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.
7 June 2016
‘Rapper’ Pleads Guilty to Conspiring to Produce Child Pornography in His Music VideosRead the Press Release
COLUMBUS, Ohio – Eric D. Chavis, 24, of Columbus, pleaded guilty in U.S. District Court to one count of conspiracy to produce child pornography.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine and members of the Central Ohio Human Trafficking Task Force, including Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, announced the plea entered into before U.S. District Judge Michael H. Watson.
According to the indictment in this case, Chavis recruited minor victims to engage in sexually explicit conduct in his rap music videos. Chavis then posted those videos via the Internet on websites including Facebook.com, Pornhub.com, Youtube.com and Instagram.com.
He conspired with co-defendants Lamont D. Abbington, 30, of Kissimmee, Fla., Carlton S. Jackson, 30, of Toledo, and Mareekus E. Davis, 22, of Columbus, to record sexually explicit videos of at least three minor females. Chavis took an active role in directing the videos and actively distributed them on the various social media websites and sold DVDs of the videos from various pornography websites.
Chavis faces a sentencing range of 15 years up to 30 years in prison, as well as a term of supervised release of at least five years up to a lifetime of supervision.
Acting U.S. Attorney Glassman commended the cooperative investigation by the Central Ohio Human Trafficking Task Force – which was formed in 2012 and is part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission, and which also includes authorities from U.S. Homeland Security Investigations, Columbus Division of Police, Ohio State Highway Patrol, Powell Police Department and the Delaware County Prosecutor's Office – as well as Assistant United States Attorneys Heather A. Hill and Jessica H. Kim, who are representing the United States in this case.
Wilmington Man Convicted of Possession of Child Pornography for Second TimeRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Donald Ray Boles, 59, of Wilmington, Vermont, was convicted on June 3, 2016, in United States District Court in Burlington, Vermont, following a four-day trial by jury. U.S. District Judge William K. Sessions III ordered Boles remanded into custody after the jury returned its verdict. According to court records and proceedings, on September 6, 2011, the Federal Bureau of Investigation executed a warrant to search Boles’ residence for evidence of child pornography. During the search, numerous computers and other digital media were seized. During a forensic examination conducted by the Vermont Internet Crimes Against Children Task Force, approximately 140 images of child pornography were found on various computers and hard drives from the residence. Boles’ computers also contained thousands of images of child erotica, as well as sexually explicit cartoons, anime, and graphic stories. The computers also revealed that Boles communicated over the Internet with other offenders about their shared interest in preschool and toddler girls. Boles has previously been convicted of possession of child pornography. In 1999, then-U.S. Customs Service agents executed a search warrant of Boles’ residence for child pornography. Boles was charged and eventually pleaded guilty to one count of possession of child pornography in United States District Court in Vermont. In June 2001, Judge Sessions ordered Boles to serve 15 months imprisonment, followed by two years of supervised release. United States Attorney Eric S. Miller commended the efforts of the FBI, the Vermont Internet Crimes Against Children Task Force, and the New York State Police, in the investigation and prosecution of Boles. The prosecution of Boles was handled by Assistant U.S. Attorneys Barbara A. Masterson and Abagail E. Averbach. Boles was represented by Assistant Federal Defenders Steven L. Barth and Elizabeth K. Quinn. U.S. Attorney Miller noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Wheeling man pleads guilty to heroin, cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Mark Louis Flint, II, 30, of Wheeling, pled guilty today to heroin and cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Flint conspired with other individuals to possess and distribute heroin and cocaine in October 2015 in Ohio County, West Virginia.
Flint pled guilty today to one count of “Conspiracy to Distribute Schedule I and Schedule II Controlled Substances.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James E. Seibert presided.
West Warwick Resident Indicted in Coventry Bank RobberyRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence today returned an indictment charging John Ryder, 28, of West Warwick, with bank robbery. It is alleged in the indictment that on May 2, 2016, Ryder robbed a BankRI branch office in Coventry by force, violence and intimidation. It is alleged that Ryder, while wielding a machete, threatened bank tellers and robbed the bank of nearly $6,000 in cash.
Ryder’s indictment is announced by United States Attorney Peter F. Neronha, Coventry Police Chief John S. MacDonald, and Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI.
According to information presented to the court at the time of Ryder’s initial appearance in federal court on May 13, 2016, an investigation by Coventry Police and the FBI determined that beginning on April 29, 2016, and on the days leading up to the robbery, Ryder allegedly spent a considerable amount of time in and around a shopping plaza where the bank is located and in a wooded area directly behind the plaza.
It is alleged that on May 2, Ryder entered the bank carrying a machete and wearing a mask, dark blue pants, hooded sweatshirt and red jacket. It is alleged that he threatened bank tellers with the machete while demanding cash. It is alleged that after robbing the bank of $5,937, he fled into a wooded area behind the shopping plaza. Later that evening, it is alleged, Ryder is seen on video surveillance running from the area and getting into a vehicle.
On May 6, 2016, law enforcement interviewed Ryder. Four days later law enforcement obtained a court authorized search warrant to search Ryder’s cell phone, on which they discovered pictures of an individual wearing the same clothing and mask as the alleged bank robber. The photograph was taken in a wooded area behind the shopping plaza where the bank is located.
Ryder was arrested by Coventry Police and FBI agents on May 13, 2016.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Ryder, who is detained in federal custody, will be arraigned in U.S. District Court at a later date.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
Coventry Police and the FBI were assisted in their investigation by the West Warwick, Warwick, West Greenwich and Cranston Police Departments and the Rhode Island State Police.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Weslaco Man Convicted of Possessing Child Pornography VideosRead the Press Release
McALLEN, Texas – Daniel Miguel Salinas, 33, of Weslaco, has entered a guilty plea to possessing child pornography, announced U.S. Attorney Kenneth Magidson.
In October 2010, law enforcement began an investigation into a movie production company that operated a website offering child pornography and child erotica DVDs and streaming videos for sale. Authorities executed a search warrant in May 2011 on the business premises of that company and discovered customer order histories along with other evidence. During the review of the order histories, agents were able to identify Salinas as a customer who had purchased 11 downloads from the company’s website.
In addition, the National Center for Missing and Exploited Children (NCMEC) received a tip in August 2012 from the Microsoft Corporation concerning the uploading of possible child pornography into a file hosting service. Federal agents discovered that the email address associated with that activity belonged to Salinas.
Authorities executed a search warrant at Salinas’ Weslaco residence, during which time they seized several computers and various external storage media devices. A forensic examination on the devices revealed more than 130 images and 20 videos of child pornography movies involving clearly young children engaged in sexually explicit conduct. Some of the movies are of known victims as identified through NCMEC.
During his plea today, Salinas admitted to knowingly possessing the devices which contained child pornography. Further, Salinas admitted he knew such devices contained visual depictions of minors engaging in sexually explicit conduct.
Chief U.S. District Judge Ricardo Hinojosa accepted the guilty plea and set sentencing for Sept. 7, 2016. At that time, Salinas faces up to 10 years in federal prison and a possible $250,000 maximum fine. He will remain in custody pending that hearing.
The U.S. Postal inspection Service investigated.
This case, prosecuted by Assistant U.S. Attorneys Alex Benavides and Kimberly Ann Leo, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Warwick Man Indicted for Allegedly Producing, Receiving Child PornographyRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence today returned a four-count indictment charging Jordan Monroe, 50, of Warwick, R.I., with producing, receiving and possessing child pornography. Monroe was arrested on May 13, 2016, after Homeland Security Investigations (HSI) agents allegedly discovered tens of thousands of file folders containing images and videos of child pornography on computers seized from Monroe’s residence.
The indictment, announced by United States Attorney Peter F. Neronha, Matthew J. Etre, Special Agent in Charge of HSI for New England, and Colonel Steven G. O'Donnell, Superintendent of the Rhode Island State Police, charges Monroe with one count of coercing and using a minor to produce child pornography, two counts of receiving child pornography and one count of possessing child pornography.
As part of an ongoing investigation, HSI’s Cyber Crimes Center Child Exploitations Unit and the Department of Justice, Child Exploitation and Obscenity Section, High Technology Investigative Unit has identified numerous IP addresses that are allegedly sharing and viewing child pornography on message boards. It is alleged that one such IP address was identified as belonging to a person who resides at Monroe’s residence.
According to court records, during the execution of a court authorized search warrant at Monroe’s residence on May 13, 2016, HSI agents, assisted by members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force and the Warwick Police Department, seized six computers, three which acted as servers. A forensic review of the contents of the computers has, to date, revealed tens of thousands of files which allegedly contain images and videos of child pornography. It is alleged that some of the images and videos were produced by Monroe.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Monroe has been detained in federal custody since his arrest on May 13, 2016.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The FBI is assisting HSI in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Virginia man pleads guilty to unlawful possession of firearmRead the Press Release
MARTINSBURG, WEST VIRGINIA – Willie Vishone Joyner, 31, of Sterling, Virginia, pled guilty today to unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Joyner, who has a previous felony conviction in state court in Virginia, was discovered in unlawful possession of a .32 caliber revolver in September 2015 in Jefferson County, West Virginia. Joyner was previously convicted of the felony offense of “Strangle Another to Cause Wounding or Injury” in the Circuit Court of Loudoun County, Virginia in May 2013.
Joyner 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 Anna Krasinski prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Vero Beach Bank Robber Sentenced to PrisonRead the Press Release
Tyler Scott Topolski, 20, of Vero Beach, was sentenced today by United States District Court Judge Kenneth A. Marra, in Ft. Pierce, to 33 months’ incarceration, to be followed by three years of supervised release. Topolski previously pled guilty to bank robbery.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Deryl Loar, Sheriff, Indian River County Sheriff’s Office, and David E. Currey, Chief, Vero Beach Police Department, made the announcement.
According to Court records, on November 6, 2015, at approximately 2:28 p.m., Topolski entered the Florida Community Bank, located at 4000 20th Street, Vero Beach, with a demand note, which read, “NO dye Paacs, I need All the 50’s & 100’s In the Bag! Fan the bills out first. Any restiance I will kill you & myself.” Topolski left with approximately $973.00 in cash. The note was later recovered in a nearby parking lot.
After Vero Beach Police Department detectives received information from the community, identifying Topolski from bank surveillance photographs, they obtained a South Carolina driver’s license in order to confirm his identity. Several bank witnesses positively identified Toploski from photographic lineups. As a result, the detectives obtained a State of Florida Arrest Warrant for Topolski and notified the Horry County Police Department in South Carolina. On November 7, 2015, Topolski was successfully captured, after he was located, hiding in his mother’s closet in Myrtle Beach, South Carolina. Topolski gave detectives a full confession, admitting that he had cut his facial hair, in order to conceal his identity.
Mr. Ferrer commended the investigative efforts of the FBI, Indian River County Sheriff’s Office, Vero Beach Police Department, and Horry County Sheriff’s Office in South Carolina for their work on this case. The case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
United states attorney’s office partners with IPS school on after-school art projectRead the Press Release
Indianapolis – United States Attorney Josh Minkler today announced an unprecedented art project partnering young girls from Daniel Webster Elementary School #46 (DWES) with lawyers, administrative professionals and paralegals of the United States Attorney’s Office. The two-month after-school mentoring art project featured self-portraits of 6th and 7th grade students and was intended to address issues of self-worth, confidence and self-esteem.
“Building positive relationships with Daniel Webster’s students can only increase the community trust between those of us in law enforcement and the citizens of this city that we serve and protect,” said Minkler. “Daniel Webster’s students have so much to offer this community. They just needed some mentorship and an opportunity to create a remarkable piece of art that benefits their school and their community. Creating such a legacy improves us all.”
The U.S. Attorney’s office partnered with Holly and David Combs, co-founders of The Department of Public Words in partnership with Art With a Heart to facilitate the program. The eight week after-school class included a confidence building self-portrait drawing workshop with 23 6th and 7th grade girls at DWES. Minkler and members of his staff at the U.S. Attorney's Office participated by mentoring and encouraging the students throughout the process.
The self-portraits created by the students will be featured in a large mural that will permanently adorn the main entryway to the school. The after-school workshops encouraged the girls to reject inappropriate labels, increase their self-respect and their respect for others. The mural, entitled, “YOU ARE BEAUTIFUL” will serve as a legacy to remind participants and everyone entering the school of the important lessons learned during the eight-week project.
According to administrators at DWES, many female students at the school between the ages of 11 and 14 struggle with issues of self-worth, confidence and self-esteem. Within this group, the administration is starting to see a higher number of teenage pregnancies, cyber bullying incidents and poor educational outcomes. According to the U.S. Department of Health and Human Services, this behavioral trend is a pipeline to an increased likelihood of low attachment to and performance in school, a life-cycle of poverty and homelessness, a diminished self-worth and an increased likelihood of criminal behavior.
"It's an honor to work with these young ladies, “said Holly Combs. “During these experiences, my goal is always to grow the students but I am profoundly surprised by how much the experience grows me."
“This partnership has truly been a gift,” said Daniel Webster Principal Karen Linn. “What makes it so powerful is that our girls are forming relationships with successful professionals who in sharing their own experiences are planting seeds of success. The wonderful DOJ volunteers and artists have helped our girls see that they too can become successful and are truly valuable and capable of doing great things with their lives.”
Uniontown man sentenced to nearly five years in prison for defrauding investors out of $5.6 millionRead the Press Release
A Uniontown man was sentenced to nearly five years in prison for operating a scheme in which 19 investors lost approximately $5.6 million, law enforcement officials said.
Geoffrey W. Nehrenz, 37, previously pleaded guilty to one count of wire fraud and two counts of money laundering.
U.S. District Court Judge Christopher Boyko sentenced Nehrenz to 55 months in prison and ordered him to pay $5.6 million in restitution.
Nehrenz promoted and sold investment contracts to clients through Keystone Capital Management, LLC (“KCM”) an investment adviser company located in Uniontown, which is an Ohio limited liability company registered as an investment adviser firm, but not registered with the Securities and Exchange Commission. This took place between 2009 and 2013. Nehrenz was the managing member, president, and chief executive officer of KCM, according to court documents.
Nehrenz induced 19 clients to invest in Keystone by promoting KCM’s ability to generate positive investment returns in equity markets while mitigating risk. He falsely represented to potential clients that their funds would be pooled, invested during the day in large- and mid-capitalization, publicly traded U.S. securities exclusively, and converted to cash overnight. Rather than investing the funds, Nehrenz used client money to pay his personal expenses, to pay business expenses to promote and prolong his investment scheme, and to make speculative, high-risk trades with domestic and overseas private placement vehicles without his clients’ authority, transactions known as “side pocket investments,” according to court documents.
Nehrenz induced at least 19 clients to invest approximately $7 million into his hedge fund, resulting in losses to his clients in the amount of approximately $5.6 million.
The indictment was presented by AUSA Christos N. Georgalis after an investigation by agents of the Federal Bureau of Investigation and Internal Revenue Service.
Two New York Residents Indicted in Pittsburgh on Counterfeiting ChargeRead the Press Release
PITTSBURGH - Two residents of Jamaica, NY, have been indicted by a federal grand jury in Pittsburgh on a charge of conspiracy, United States Attorney David J. Hickton announced today.
The one-count indictment named Ronald Heggs, 25, and Amelia J. Costa, 22, as the defendants.
According to the indictment, in April, 2015, Heggs and Costa produced counterfeit credit cards which they used to purchase gift cards at K-Mart stores in Western Pennsylvania.
The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The U.S. Secret Service conducted the investigation that led to the prosecution of Heggs and Costa.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Topeka Woman Pleads Guilty to Participating in Interstate Sex TraffickingRead the Press Release
TOPEKA, KAN. - A Topeka woman pleaded guilty Tuesday to taking part in an interstate sex trafficking business, Acting U.S. Attorney Tom Beall said.
Rachel Flenniken, 34, Topeka, Kan., pleaded guilty to one count of conspiracy and two counts of using an interstate facility in furtherance of prostitution. In her plea, she admitted working for a male co-defendant who was running a prostitution business in Topeka. At times, as many as 20 females were working as prostitutes in the organization. Flenniken’s employer rented houses where some of the prostitutes were allowed to live. He used Web sites, social media and cell phones to advertise sexual services and to keep track of the prostitutes.
Flenniken admitted she began working for the male co-defendant as a prostitute in 2008. By 2010, he put her in charge of other prostitutes. She was responsible for keeping track of their meetings with clients and collecting the money they received. She arranged interstate travel for the purpose of prostitution, posted on-line advertisements for workers, and maintained communication with prostitutes while they were working.
Sentencing is set for Oct. 17. She faces a penalty of up to five years in federal prison and a fine up to $250,000 on each count.
Co-defendant Frank Boswell, 42, Topeka, Kan., is awaiting trial.
Beall commended the Topeka Police Department, Homeland Security Investigations, the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Tallahassee Man Convicted of Receiving Illegal Drugs from OverseasRead the Press Release
TALLAHASSEE, FLORIDA – Yesterday afternoon, a federal jury convicted Robert E. Youman, 32, of Tallahassee, of possession with intent to distribute the controlled substance alpha-pyrrolidinopentiophenone (“alpha-PVP”). The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, on July 9, 2015, an undercover Homeland Security Investigations agent posing as a delivery man delivered a package to Youman containing five kilograms of alpha-PVP that had been mailed from China to a “Jeffrey Davenport” at Youman’s address in Tallahassee. Youman told the undercover agent that he was “Jeffrey” and signed “Jeffrey Davenport” to receive the package. A short time later, Youman left his residence with the package. Law enforcement officers stopped Youman’s vehicle and arrested him. A search of Youman’s home revealed scales, additional alpha-PVP, and drug packaging materials.
Youman faces a maximum of 20 years in prison. The sentencing hearing is scheduled for August 26, 2016, at 9:00 a.m. at the United States Courthouse in Tallahassee.
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Tallahassee Police Department. It was prosecuted by Assistant United States Attorney Michael J. Harwin.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]South Tampa Man Sentenced to More Than Twelve Years for Gun PossessionRead the Press Release
Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington has sentenced Vanshawn A. Haggins (28, Tampa) to 12 years and 7 months in federal prison for being a felon in possession of a firearm. He pleaded guilty on March 4, 2016.
According to court documents, law enforcement identified Haggins and his associates as convicted felons who were in possession of firearms. Many of the firearms Haggins and his roommate, Christopher Balfrey, possessed had been stolen from residences in the South Tampa area. On multiple occasions, law enforcement officers met with Haggins and Balfrey, where they purchased drugs and stolen firearms from them. While executing a federal search warrant at their residence, law enforcement seized three firearms, ammunition, powder cocaine, marijuana, and $2,636 in cash.
As a previously convicted felon, Haggins is prohibited from possessing firearms or ammunition under federal law.
Balfrey previously pleaded guilty to narcotics and firearms offenses. He was sentenced on May 27, 2016, to 12 years and 7 months in federal prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Tampa Police Department as part of a Violent Crime Initiative. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Sleeping Drug Dealer Pleads GuiltyRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Kevin L. Burris, 42, Belleville, Illinois, pled guilty on June 6, 2016, to an indictment returned by a Federal Grand Jury in February charging him with Distribution of Cocaine Base (Counts 1 and 2), and Unlawful Possession of a Firearm by a Previously Convicted Felon (Count 3). The offenses occurred in St. Clair County, Illinois. Counts 1 and 2 carry a maximum penalty of 20 years in federal prison and a $1 million fine, and not less than 3 years’ supervised release. Count 3 carries a maximum penalty of 10 years in federal prison, a $250,000 fine, and 3 years’ supervised release. Both counts require an assessment of $100. Sentencing is scheduled for August 30, 2016. Burris was allowed to remain on bond.
According to court documents, on May 28th and June 2nd, 2015, Burris distributed cocaine base in the form commonly known as "crack" cocaine to another individual for profit. Burris acknowledged selling crack cocaine for the last several years. On October 29, 2016, Burris was found by a St. Clair County Deputy Sheriff asleep behind the wheel of a running car in the middle of a Belleville street. Following his arrest, a Rossi, .357 revolver was found in Burris’s possession. Burris is prohibited from possessing firearms due to a prior felony conviction.
Information leading to the charges against Burris was obtained in an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant United States Attorney Kit Morrissey.
Seven Bridgeport Men Charged with Trafficking HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Bridgeport Police Chief Armando J. Perez announced that a federal grand jury in Bridgeport returned an indictment yesterday charging seven Bridgeport residents with heroin trafficking offenses. All of the defendants were arrested this morning.
Charged in the eight-count indictment are:
KAREEM ROSEBORO, a.k.a. “Swiss,” 41
HARRY BLAKE, a.k.a. “Harry-O” and “O,” 33
MICHAEL BENNETT, 28
JONATHAN ZAYAS, 22
MARCUS MILTON, 50
GLEN PORTER, a.k.a. “Kuran,” 30
ROY TROTTER, a.k.a. “Nez,” 33The indictment stems from a joint investigation conducted by the FBI’s Bridgeport Safe Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force into the distribution of heroin in and around Bridgeport. The investigation has included court-authorized wiretaps and controlled purchases of heroin.
During the course of the investigation and in association with today’s arrests investigators have seized multiple “bricks” of heroin, items used in the processing and packaging of heroin, and five firearms. A brick of heroin contains 100 individual dose bags.
The indictment charges each defendant with conspiracy to possess with intent to distribute heroin. If convicted of this offense, based on the quantity of heroin charged, ROSEBORO, BLAKE, BENNETT, ZAYAS and MILTON face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. PORTER and TROTTER face a maximum term of imprisonment of 20 years.
In addition, the indictment charges BLAKE, BENNETT, ZAYAS, MILTON, PORTER and TROTTER with one or more counts of possessing with intent to distribute heroin.
The defendants appeared today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and are currently detained.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case has been assigned to U.S. District Judge Janet Bond Arterton in New Haven.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, with the assistance of the Drug Enforcement Administration, Connecticut State Police, Stratford Police Department, Stamford Police Department and the Trumbull Police Department K-9 Unit.
The case is being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds and H. Gordon Hall.
Sarasota County Residents Charged with Possession of Grenades, Pipe Bombs, Drugs, Firearms, and AmmunitionRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the filing of indictments against Venice residents Steven M. Pace (24) and Katie Smith (24) for possessing destructive devices. Pace also was charged with possessing with the intent to distribute a Schedule I controlled substance (AB-fubinaca, a.k.a “Spice”) and possessing a firearm in furtherance of that drug trafficking crime. If convicted, each faces a maximum penalty of 10 years in federal prison for the destructive device charge. Pace also faces up to 20 years in federal prison for the drug charge and a mandatory minimum penalty of 5 years on the firearm offense. The indictments also notify Pace and Smith that the United States intends to forfeit any firearms and ammunition that are traceable to proceeds of the offenses.
According to court documents, in February 2016, Pace and Smith each possessed four destructive devices, specifically, two improvised pipe bombs and two improvised grenades that had not been registered to them in the National Firearms Registration and Transfer Record as required by law. Pace is also charged with possessing with intent to distribute approximately 280 grams or more of “Spice” and possessing a Glock and ammunition in furtherance of that crime.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Sarasota County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kaitlin R. O’Donnell.
San Joaquin County Man Sentenced to 12 Years in Prison for Attempting to Join ISILRead the Press Release
SACRAMENTO, Calif. — Nicholas Michael Teausant, 22, of Acampo, was sentenced today by U.S. District Judge John A. Mendez to 12 years in prison, to be followed by 25 years of supervised release, for attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, announced Assistant Attorney General for National Security John P. Carlin and Acting U.S. Attorney Phillip A. Talbert.
According to court documents, on March 17, 2014, Teausant was arrested near the Canadian border en route to Canada with the intent of continuing to travel to Syria to join ISIL. On March 26, 2014, Teausant was indicted on one count of attempting to provide material support or resources to a terrorist organization. He pleaded guilty on December 1, 2015, to the single count in the indictment without a plea agreement.
In sentencing, Judge Mendez stated: “Terrorism has to become a zero-tolerance crime. There is no margin for error. It is the court’s responsibility to fashion a sentence to reduce any risk you might pose in the future.”
“With this sentence, Nicholas Michael Teausant will be held accountable for attempting to travel overseas to join ISIL and to provide material support to the designated terrorist organization,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is countering terrorist threats, and we will continue to work to stem the flow of foreign fighters abroad and bring to justice those who attempt to provide material support to designated foreign terrorist organizations.”
Acting U.S. Attorney Talbert stated: “Mr. Teausant was fixated on violence as documented by his social media posts, his pre-arrest statements, and the nature of the group he attempted to join. His conduct was misguided and unacceptable. We appreciate the court’s thoughtful consideration of this case and its recognition of the seriousness of this offense. With the assistance of our investigative partners, we will continue to vigorously prosecute those who seek to provide material support to terrorist organizations.”
“The FBI actively investigates individuals intent on joining terrorist organizations or otherwise aiding violent extremist organizations with their plots to harm U.S. citizens. Violent extremists of all kinds—foreign and domestic—actively recruit disillusioned youth who can be radicalized and motivated to harm others,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento field office. “Everyone should increase their awareness of this issue and consider how they can lead from where they stand by reaching out to individuals before their fascination evolves into recruitment by a violent extremist group. ‘Don’t be a Puppet: Pull Back the Curtain on Violent Extremism,’ for example, is an FBI-produced educational resource designed to help youth navigate the host of propaganda they may be exposed to online and aid misguided peers long before misinformation leads them to commit an unlawful act.”
This case was the product of an investigation by the Federal Bureau of Investigation, the Modesto Police Department, and the San Joaquin County Sheriff’s Office, who are members of the Modesto/Stockton Joint Terrorism Task Force, with significant assistance from U.S. Customs and Border Protection. Assistant United States Attorneys Jean M. Hobler and Jason Hitt and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section prosecuted the case.
Removed Alien Found Again by Homeland Security in Western PennsylvaniaRead the Press Release
PITTSBURGH – An individual found by the U.S. Department of Homeland Security has been indicted by a federal grand jury in Pittsburgh on charges of Illegal Reentry After Deportation, United States Attorney David J. Hickton announced today.
The one-count indictment named Benjamin Juarez-Luna, 36, a citizen of Mexico.
According to the indictment, Juarez-Luna, an alien, who was previously removed from the United States by U.S. Immigration and Customs Enforcement on Sept. 18, 2014, Jan. 31, 2015, Feb. 22, 2015, and July 1, 2015, was taken into custody on May 11, 2016, by Immigration and Customs Enforcement, Homeland Security Investigations.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.