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Wednesday 20 April 2016
California Man Indicted for Large-Scale Meth DistributionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a California man was indicted by a federal grand jury today for attempting to sell a large amount of methamphetamine to an undercover law enforcement officer.
Javier Corona-Verduzco, 33, of Montclair, Calif., was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Corona-Verduzco on April 4, 2016.
Today’s indictment charges Corona-Verduzco with one count of possessing methamphetamine with the intent to distribute and one count of illegally reentering the United States after having been deported.
According to an affidavit filed in support of the original criminal complaint, Corona-Verduzco was attempting to sell pound quantities of methamphetamine to a confidential informant. Corona-Verduzco allegedly told the confidential informant that he had a large quantity of methamphetamine and was looking for customers to purchase multiple pound quantities.
The confidential informant told Corona-Verduzco that he/she knew someone who was interested in purchasing pounds of methamphetamine. According to the indictment, Corona-Verduzco agreed to meet the confidential informant and this acquaintance, who was actually an undercover law enforcement officer, on March 31, 2016. Corona-Verduzco met with the confidential informant and the undercover officer at a location in Kansas City, Kan., the affidavit says, and offered to sell 15 pounds of methamphetamine for approximately $80,000. Corona-Verduzco allegedly agreed to conduct the transaction at a house in Kansas City, Kan.
Corona-Verduzco and the confidential informant allegedly drove to a house in Kansas City, Mo., so that the confidential informant could check the quality of the methamphetamine for sale. At that location, the affidavit says, the confidential informant saw approximately 2.5 pounds of methamphetamine in a bag.
Corona-Verduzco was arrested the next day. According to the affidavit, he had told both the confidential informant and the undercover officer that the 15 pounds of methamphetamine he was attempting to sell them was in a gray Chevrolet Tahoe. Law enforcement officers located the Tahoe parked in front of the Kansas City, Mo., residence where Corona-Verduzco had taken the confidential informant the day before. Law enforcement officers found seven packages of methamphetamine, totaling 6.814 kilograms (approximately 15 pounds), hidden in a hollow compartment behind the driver’s side rear panel. Officers also found 400 grams of methamphetamine inside the residence.
According to the affidavit, Corona-Verduzco had been previously deported after being convicted of a felony.
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 Jeffrey Q. McCarther. It was investigated by the Kansas City, Kan., Police Department, the Blue Springs, Mo., Police Department, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Jackson County Drug Task Force.
Buffalo Man Sentenced for Theft and Assault at VaRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Norris King, 52, of Buffalo, NY, who was convicted of theft and assault within special maritime and territorial jurisdiction of the United States, was sentenced to five months in prison, followed by five months of community confinement in a community treatment center, by U.S. Magistrate Judge Hugh B. Scott.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that on December 9, 2015, at the Veterans’ Affairs Medical Center in Buffalo, the defendant attempted to steal three North Face winter jackets, each valued at $179.00, from the Veteran Canteen Services. King was pursued and ultimately detained by the store manager and a second VA employee. During flight, the defendant assaulted an elderly veteran seeking medical treatment.
The sentence is the result of an investigation by the U.S. Department of Veterans’ Affairs, Criminal Investigations Division, under the direction of Special Agent in Charge Jeffrey Hughes, Northeast Field Office.
Bridgeport Man Sentenced to 37 Months in Federal Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ANTHONY RODRIGUEZ, 29, of Bridgeport, was sentenced yesterday by U.S. District Judge Robert N. Chatigny in Hartford to 37 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms.
This matter stems from “Operation Samson,” a multi-layered initiative headed by the ATF and the Bridgeport and New Haven Police Departments that targeted violent criminals, illegal firearm possession and firearm trafficking. In the spring of 2014, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations.
According to court documents and statements made in court, in May 2014, RODRIGUEZ was serving a three-year term of probation stemming from his 2013 felony conviction for third degree larceny. On May 20, 2014, Connecticut Adult Probation, with the assistance of Bridgeport Police and ATF, visited RODRIGUEZ’s residence and found several assorted rounds of ammunition. In addition, officers found a gun box containing only a receipt for a Smith and Wesson .40 caliber pistol that had been purchased by William Ramos on January 13, 2014 at a gun store in Orange. Officers also found a second empty gun box for a Springfield Armory XD40 pistol.
Also in May 2014, ATF and the New Haven Police Department seized six handguns from a convicted felon who identified William Ramos as his source for firearms. According the convicted felon, in 2013 and 2014, he had received seven different firearms from Ramos, some of which he had already sold to other individuals.
The investigation revealed that, between 2011 and 2014, Ramos had purchased a total of 29 handguns. RODRIGUEZ has admitted that he purchased seven firearms from Ramos, many of which he sold to others.
On November 7, 2014, RODRIGUEZ pleaded guilty to one count of possession of a firearm by a previously convicted felon.
Ramos has pleaded guilty and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Robert Spector.
Automobile Insurance Fraud Scheme Leads to Federal Health Care and Mail Fraud ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr., announced today that four individuals were arrested on federal health care fraud and mail fraud charges related to their roles in an automobile insurance fraud conspiracy: Yoisler Herrera-Enriquez, age 30, and Dolis Rojas-Lopez, age 30, both of Wyoming, Michigan; Gustavo Ramiro Acuna-Rosa, Age 28, of Versailles, Kentucky; and, Antonio Ramon Martinez-Lopez, Age 34, of Port Richey, Florida.
All four defendants are currently in custody pending hearings on bond.
"Serial insurance fraud schemes undermine the fairness of the rates everyone has to pay. These schemes are and will continue to be a high priority for federal prosecution," U.S. Attorney Miles explained.
According to the indictment, Herrera-Enriquez, Acuna-Rosa and Martinez-Lopez operated physical therapy clinics in Wyoming and Lansing, Michigan, under the names "H&H Rehab Center," "Revive Therapy Center," and "Renue Therapy Center." These clinics utilized patient recruiters, including Rojas-Lopez, to find individuals who had either been involved in automobile accidents but who were not yet receiving medical treatment, or who were willing to participate in staged automobile accidents. The conspiracy then paid these automobile accident participants to claim injuries related to these automobile accidents and to become patients of the clinics. The clinics then falsely billed various automobile insurance carriers for physical therapy or other health care services that were not in fact provided. According to the indictment, two confidential government informants never received any physical therapy or other health care services of any kind at either H&H Rehab Center or Renue Therapy Center, yet those clinics billed an automobile insurance carrier for treatment allegedly provided to the confidential informants and were paid in excess of $50,000.00 between January 2014 and May 2015.
The mail fraud and conspiracy charges carry a statutory penalty of up to 20 years’ imprisonment and mandatory restitution. The health care fraud charge carries a penalty of up to 10 years’ imprisonment and mandatory restitution. The investigation is being handled by the Department of Homeland Security, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and the Federal Bureau of Investigation. Assistant U.S. Attorney Ronald M. Stella is assigned to the prosecution.
The charges in an indictment are merely accusations, and the defendants are presumed innocent until and unless proven guilty in a court of law.
END
Arrest Made in Compromise of U.S. Army Computer ProgramRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that MITTESH DAS of Atlanta, Georgia, was indicted for intentionally causing damage to a U.S. Army computer program by transmitting malicious information, code, and command on a protected computer. DAS made his initial appearance in federal court today in the Northern District of Georgia.
The Grand Jury in the Eastern District of North Carolina indicted DAS on April 5, 2016.
The charges are punishable by up to 10 years imprisonment, a fine of up to $250,000, and a term of supervised release of up to 3 years.
The charges and allegations contained in the indictment are merely accusations. The defendant is considered innocent unless and until proven guilty in a court of law.
"As charged, Mr. Das allegedly exploited his position as a cleared defense contractor to sabotage the U.S. Army Reserve's personnel system and disrupt pay to our nation's Soldiers," said Director Daniel Andrews of the Computer Crime Investigative Unit, U.S. Army Criminal Investigation Command. "Cybercrime and insider threats present significant challenges to national security and military operations, and we will continue to root out those responsible and help bring violators to justice."
The case is being investigated by U.S. Army CID. CID was assisted during the arrest by the Johns Creek, Georgia, Police Department. Assistant United States Attorney Jason Kellhofer is representing the government in this case.
Albuquerque Man Sentenced to 135 Months for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Michael Stewart, 56, of Albuquerque, N.M., was sentenced today to 135 months in federal prison followed by a seven-year term of supervised release for his methamphetamine trafficking conviction. In a related civil case, a federal judge previously entered an order forfeiting to the United States $25,370.00 in drug proceeds that were seized from Stewart when he was arrested.
Stewart, whose lengthy criminal history includes felony convictions for cocaine and methamphetamine trafficking, robbery, kidnapping and theft, was prosecuted as part of the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Stewart was arrested on Feb. 19, 2015, after DEA task force officers seized 611.9 gross grams of methamphetamine and more than $25,000.00 in cash from him and his vehicle during a traffic stop in northwest Albuquerque. Stewart was subsequently indicted on the same charge on March 10, 2015.
On Jan. 20, 2016, Stewart pled guilty to the indictment and admitted that on Feb. 18, 2015, he was in possession of 543.3 grams of actual methamphetamine which he intended to distribute to others.
This case was investigated by the Albuquerque offices of the DEA and Homeland Security Investigations and the Bernalillo County Sheriff’s Office, and was prosecuted by the Organized Crime Section of the U.S. Attorney’s Office. Assistant U.S. Attorney Stephen R. Kotz handled the civil forfeiture proceedings.
Additional Charges, Additional Defendants in Allentown Armed RobberiesRead the Press Release
PHILADELPHIA – A superseding indictment was unsealed today charging six people in a robbery conspiracy that took place in Allentown, PA, and included seven robberies over a month-long period. Jacob Pabon, 19, and Lytic Fauntleroy, 19, were charged in December 2015 with robbery which interferes with interstate commerce, and using and carrying a firearm during a crime of violence in connection with two of the charged robberies. The superseding indictment adds conspiracy to commit Hobbs Act robbery, five additional counts of Hobbs Act robbery, five additional counts of use of a firearm in relation to a violent crime, and one count of felon in possession of a firearm. The superseding indictment also adds four defendants to the case.
Charged with Pabon and Fauntleroy in the conspiracy count are: Victor Morales, 21, Ruben Tarrats, 23, of Allentown, PA, Adrian Tosado, 22, also of Allentown, PA, and Jose Rapalo, 20, of Bethlehem, PA. A fifth defendant, Kairashaad Johnson, 21, of Allentown, PA, is charged in one of the robberies.
According to the indictment, the defendants robbed seven businesses, in May of 2015 in the city of Allentown, PA. Those robberies include: the May 7, 2015 robbery of Sun’s Deli at 1341 Union Street (Pabon, Tarrats, Tosado) and of North 7th Market and Bakery (Morales, Fauntleroy, Pabon, Tosado); the May 14, 2015 robbery of Betty Mini Market at 922 Chew Street (Morales, Tarrats, Rapalo); the May 21, 2015 robbery at 10th Street Market (Pabon, Rapalo, Johnson); the May 26, 2015 robbery of M&J Market at 448 North 2nd Street (Morale, Fauntleroy, Tarrats, Rapalo) and the Dominguez Food Market at 517 West Gordon Street (Morales, Fauntleroy, Tarrats); and the May 29, 2015 robbery of Speedway at 1043 Lehigh Street, (Fauntleroy, Pabon, Tarrats). In each robbery, the alleged robbers are also charged with using and carrying a firearm during a crime of violence. Morales is charged as a convicted felon in possession of a firearm. According to the indictment, the defendants used some of the robbery proceeds to pay rent on a house at 324 North Law Street, in Allentown, which they used as a stash house for their firearms.
“Thanks to the diligent work of the Allentown Police Department and ATF agents, a violent robbery crew has been dismantled,” said U.S. Attorney Zane David Memeger. “My office will continue to work closely with our law enforcement partners to keep the citizens of this district safe.”
“Dangerous people who commit dangerous crimes with firearms will be dealt with and brought to justice,” said ATF Special Agent-in-Charge Sam Rabadi. “ATF will work together with our State and local partners to target and arrest armed robbery gangs who threaten the safety of our homes, our businesses, and our neighborhoods.”
“I would like to thank the officers and detectives who spent countless hours investigating these robberies and for the assistance from the ATF,” said Allentown Police Chief Keith Morris. “Their diligence paid off and we were able to take some very violent individuals off the streets.”
If convicted of all counts, Tarrats faces a mandatory minimum sentence of 107 years in prison; Fauntleroy, Pabon, and Morales each face a mandatory minimum sentence of 82 years in prison; Rapalo faces a mandatory minimum sentence of 57 years in prison; Tosado faces a mandatory minimum sentence of 32 years in prison; and Johnson faces a mandatory minimum sentence of seven years in prison; each faces a maximum sentence of life, plus possible fines, supervised release, and special assessments.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Allentown Police Department and the Lehigh County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Eric A. Boden.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
19 More Charged as Feds and Locals Combine to Dismantle Violent Gangs in Brunswick, GeorgiaRead the Press Release
BRUNSWICK, GA- A federal indictment, unsealed today, has charged 19 Brunswick, Georgia residents with conspiring to traffick crack cocaine and other drugs. Some of the defendants were also charged with related gun charges. If convicted of the drug trafficking conspiracy charge, the defendants face at least a maximum of 20 years in prison and a $1 million fine. According to evidence presented during today’s initial appearances of several defendants, the investigation of this case centered around the unlawful activities of alleged members of the Bloods, a national gang.
The 19 Brunswick residents indicted on federal charges include:
ROMIA DANIELS, 40,
AMELIA ROBINSON, 36,
CLEVELAND NOBLE, 39,
ANDRE SHORT, 46,
CONNELL ALDRIDGE, 47,
PEARL WARD, 54,
CALVIN LEWIS, 37,
MELVINA LEWIS, 44,
JAMAR BRADLEY, 27,
KURLIE KEMP, 24,
LOVELL JONES, 26,
FREDDIE HOLLOWAY, 24,
WILLIE MIDDLETON, 33,
AARON MCCLENDON, 25,
DEBOE PICKERING, 21,
JOHN EARL ROBERTS, 30,
CHARLES WILSON, 56,
TYRONE MIDDLETON, 33, and,
KEVIN SMITH, 24.
Nine of the Defendants were scheduled to have their initial appearances today at 3:30 p.m. in the federal courthouse in Brunswick before United States Magistrate Judge R. Stan Baker. United States Attorney Edward J. Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The Defendants are entitled to a fair trial, during which it will be the Governments burden to prove guilt beyond a reasonable doubt.
Today’s announced indictment falls on the heels of a successful federal prosecution targeting the activities of another national gang operating in Brunswick, the Gangster Disciples. In that case, 16 defendants associated with the Arron Clark Drug Trafficking Organization (DTO) were convicted of a number of charges, including conspiracy to distribute drugs, felon in possession of firearms, and possessing firearms in furtherance of drug trafficking. Evidence presented in court filings and hearings demonstrated that the many members of the Clark DTO were also members of the Gangster Disciples. Members of this group sold drugs, committed violent acts, and used violence as a means to protect turf. Members of the group openly sold drugs on Wolfe Street in Brunswick.
Chief United States District Judge Lisa Godbey Wood sentenced Arron Clark, age 24, a leader of the organization, to serve 25 years in federal prison, to be served “far from Brunswick, Georgia.” Last week, Judge Wood sentenced Christopher Young, age 26, another leader of the organization, to serve 24 years in federal prison. Upon their release from prison, both will be placed on supervised release for five years.
The Brunswick residents who were convicted and sentenced as part of the Clark DTO include:
ARRON BERNARD CLARK, 300 months in prison,
CHRISTOPHER DASHAUN YOUNG, 288 months in prison,
BERNARD STERLING ELLZY, awaiting sentencing,
JOHN WESLEY BOONE, 24 months in prison,
GEORGE LASHAWN HUMPHREYS 27 months in prison,
JARVIS MAURICE DENMARK, 138 months in prison,
CHRISTOPHER EMMANUEL WILLIAMS, awaiting sentencing,
JOHNNY LEE WILLIAMS, 40 months in prison,
AKEEM ELIJAHWOUN KIRKSEY, 57 months in prison,
RONALD GREEN, 40 months in prison,
DONIEL PORTER, 90 months in prison,
CRAIG LAMAR ELKINS, 151 months in prison,
BEVERLY L. TYSON, 18 months in prison
ALAN EUGENE ADDISON, 110 months in prison,
TERRANCE TREMAIN THOMAS, 60 months in prison, and,
EBONE KATRELLE ALVIN, 24 months of probation.
Both of these cases were investigated by members of the FBI Costal Georgia Safe Streets Task Force (CGSSGTF), which is comprised of members of the FBI, Glynn County Police Department and the Brunswick Police Department. This task force was created to address the violent gang threat in southeast Georgia by structuring a new relationship with federal and local partners, who work together by aggressively identifying, prioritizing, and targeting the most violent street gangs. The task force was created in response to the increase of violent crime in the Brunswick area. The ATF, the U.S. Marshals and the Georgia Department of Community Supervision (GA Probation and Parole) also worked the investigations.
United States Attorney Edward J. Tarver said, “We will continue to work with our federal and local law enforcement partners to make our communities safer places. In 2015, this United States Attorney’s Office indicted a large and violent drug trafficking organization that was terrorizing the streets of Brunswick. A year later, those individuals are in prison. This year another separate and distinct organization has been charged for allegedly committing similar types of crimes. The United States Department of Justice will continue to identify and aggressively prosecute criminal organizations that terrorize Georgia communities. Keeping our neighborhoods safe is our only motive.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated, “These two investigations are a tremendous example of the gang reduction success resulting from the partnership formed between the Glynn County Police Department, the Brunswick Police Department, and the FBI to combat violent crime in the region. The FBI's Coastal Georgia Safe Streets Gang Task Force will continue to focus on investigating and arresting violent groups and individuals posing a threat to our community. We encourage all those in the community who have knowledge of gang activity to contact the FBI or local authorities as we all work together to reduce violent crime.”
Brunswick Police Department Chief Kevin M. Jones stated, “The collaborative efforts of this task force have had a direct impact on the reduction of crime in Brunswick over the last year. The first phase was successful and we look forward to the continued benefits of safer neighborhoods and streets as the assigned officers work hard to wrap up phase two.”
Glynn County Police Chief Matt Doering stated, “Law Enforcement has many parts that contribute to the whole of collaborative success. The partnership with the Brunswick Police Department, the FBI, the ATF, the United States Attorney’s Office and the District Attorney’s Office is a fine example of commitment to the safety our community.”
The cases are being prosecuted by Assistant United States Attorneys Carlton R. Bourne, Jr., E. Greg Gilluly, Jr., Marcela Mateo and Tania Groover. The District Attorney’s Office for the Brunswick Judicial Circuit has also assisted in the investigation and prosecuted related state cases. Any additional questions should be directed to First Assistant United States Attorney James D. Durham at (912) 201-2547.
Tuesday 19 April 2016
Washington Man Pleads Guilty to Sending Death ThreatsRead the Press Release
SACRAMENTO, Calif. — Scott Anthony Orton, 57, of Puyallup, Washington, pleaded guilty today to transmitting interstate threats, United States Attorney Benjamin B. Wagner announced.
According to court documents, Orton posted several threatening statements on a popular news website in which he expressed his intent to travel to Placerville, California to kill an officer of the Placerville-based company, Stem Express LLC. On July 16, 2015, among other threats, Orton wrote, “The management of StemExpress should be taken by force and killed in the streets today. Kill StemExpress employees. I'll pay you for it.” Orton also identified the target of his threats by name, and wrote “I’ll pay ten grand to whomever beats me to [the target].”
“Terrorizing others through threats of violence, whether communicated in person or through media websites, is cruel, dangerous and disruptive, and is also a federal crime,” said U.S. Attorney Wagner. “As Mr. Orton now knows, those who seek to terrorize others online will be identified and prosecuted.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Brian A. Fogerty is prosecuting the case.
Orton is scheduled to be sentenced by United States District Judge John A. Mendez on August 2, 2016. Orton faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Two Aryan Brotherhood of Mississippi Gang Members Convicted on Federal Racketeering ChargesRead the Press Release
WASHINGTON – A federal jury in the Northern District of Mississippi convicted two members of the Aryan Brotherhood of Mississippi (ABM) gang for their participation in various criminal acts, including racketeering conspiracy, methamphetamine production and trafficking, kidnapping, murder and other federal offenses. The verdicts marked the culmination of a 2 ½ year investigation and prosecution of ABM, which resulted in the convictions of 42 members and associates of the gang.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi, Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration’s (DEA) New Orleans Field Office, Special Agent in Charge Constance Hester of the Bureau of Alcohol, Tobacco, Fire and Explosives (ATF) New Orleans Field Office and Special Agent in Charge Donald Alway of the FBI’s Jackson, Mississippi, Division.
“The Criminal Division and its partners at U.S. Attorney’s Offices appropriately use racketeering laws to target the worst-of-the worst gang members and the leaders of criminal enterprises like the Aryan Brotherhood of Mississippi,” said Assistant Attorney General Caldwell. “Just as we did in the recent Aryan Brotherhood prosecutions in Texas and Oklahoma, we have taken great strides in dismantling a violent gang with a dangerous and repulsive philosophy.”
“This prosecution is the result of an unprecedented collaboration between the Department of Justice, federal, state and local law enforcement officers targeting a large-scale prison gang involved in violent organized crime throughout the state of Mississippi,” said U.S. Attorney Adams. “As a result of this collaborative effort, we have effectively dismantled this violent organization and sent a clear message that the United States Attorney’s Office and our law enforcement partners have an unwavering commitment to hold those individuals accountable who insist on creating an atmosphere of violence and fear in our communities.”
“Today, DEA and our talented team of prosecutors, agents, investigators, and analysts defeated the Aryan Brotherhood,” said Special Agent in Charge Comeaux. “This important success could not have been realized without the brave and courageous collective voice of the jurors in this case. Their verdict, on the heels of an outstanding investigative effort by all involved, sends a resounding message to this once seemingly impenetrable foe that if you attempt to operate a violent drug trafficking criminal enterprise here in the state of Mississippi, you can and will be “branded” with a guilty verdict for your crimes.”
“The outcome of this investigation is sending a positive message to the community on law enforcement’s commitment to keep the community safe,” said Special Agent in Charge Hester. “These verdicts will send a powerful message to the Aryan Brotherhood as well as all gangs throughout the country that if you prey on the citizens we are sworn to protect, you will spend the remaining years of your life in prison.”
“The convictions in these cases reflect a major disruption of a large organization that incubates in our prison systems and spills over to our streets," said Special Agent in Charge Alway. “Recognizing and neutralizing these organizations is vitally important and thanks to the joint efforts of our law enforcement partners at the Mississippi Bureau of Narcotics, Mississippi Bureau of Investigation, Mississippi Department of Corrections, the ATF, DEA and United States Marshals Service, Mississippi is much safer.”
On April 13, 2016, a federal jury convicted Frank George Owens Jr., 44, aka State Raised, of D’Iberville, Mississippi, and Eric Glenn Parker, 35, of Richton, Mississippi, both members of the Aryan Brotherhood of Mississippi, of engaging in a racketeering conspiracy and murder. Owens was additionally convicted of kidnapping and attempted murder. Parker was additionally convicted of conspiracy to possess with intent to distribute at least 500 grams of methamphetamine. Sentencing will take place before U.S. District Judge Glen H. Davidson of the Northern District of Mississippi and will be scheduled at a later date.
1.
Frankie Owen
ABM Rank
Spoke (General)
Charge
RICO / Murder
Sentence
Up to life
2.
Eric Parker
Captain
RICO / Murder
Up to life
3.
Perry Mask
Spoke (General)
RICO
Up to life
4.
Brandon Creel
Spoke (General)
RICO
300 months
5.
Steven Hubanks
Spoke (General)
RICO
Up to life
6.
David Willis
Captain
RICO
235 months
7.
Ricky Jenkins
Soldier
RICO
Up to life
8.
James Dean
Captain
RICO
240 months
9.
Sonny Maxwell
Soldier
RICO
156 months
10.
Walter Burris
Captain
RICO
210 months
11.
M. Valentine
Captain
RICO
235 months
12.
William Carroll
Captain
Drug Trafficking
181 months
13.
Terry Kelly
State Treasurer
Gun Trafficking
Up to Life
14.
Christopher Stutsy
Soldier
Gun Trafficking
28 months
15.
Jonathan Wren
Soldier
Gun Trafficking
120 months
16.
Bernard Brown
Captain
VICAR
36 months
17.
Steve Williams
Ex-Member
Gun Trafficking
70 months
18.
Larry Sneed
Ex-General
VICAR
36 months
19.
Brodie Murphy
Associate
RICO
120 months
20.
Kathy Shadburn
Associate
RICO
96 months
21.
Natasha Ellis
Associate
RICO
97 months
22.
Gale Rutledge
Associate
RICO
24 months
23.
Brian Lee
Associate
Gun Trafficking
120 months
The following individuals pleaded guilty and have been sentenced or are awaiting sentencing: Northern District of Mississippi
24.
Bill Overton
Associate
Gun Trafficking
120 months
25.
Timothy Deshazier
Associate
Meth Trafficking
60 months
26.
Mike Smith
Associate
Meth Trafficking
70 months
27.
Michael McPherson
Associate
Meth Trafficking
57 months
28.
Tammy Lamb
Associate
Meth Trafficking
43 months
29.
Claude Collins
Associate
Meth Trafficking
38 months
30.
Jimmy Grimes
Associate
Meth Trafficking
120 months
31.
Arthur Fenderson
Meth Trafficking
120 months
32.
David Clark
Meth Trafficking
40 months
33.
Jeffery Fordham
Meth Trafficking
36 months
34.
Scotty Mask
Meth Trafficking
72 months
35.
Benjamin Raymond
Meth Trafficking
51 months
36.
Justin Applewhite
Meth Trafficking
65 months
37.
James Winters
Meth Trafficking
68 months
38.
Dean Hill
Meth Trafficking
60 months
Southern District of Mississippi
ABM Rank
Charge
Sentence
39.
Stephen Ochoa
Associate
Meth Trafficking
292 months
40.
Tommy McClemore
Associate
Meth Trafficking
260 months
41.
Kenny Waggoner
Associate
Meth Trafficking
121 months
42.
Jen McClemore
Associate
Meth Trafficking
64 months
The ABM is a violent, “whites only,” prison-based gang with members operating inside and outside of state penal institutions. The Aryan Brotherhood was originally a California-based prison gang that was formed during the 1960s. While the Aryan Brotherhood is a nation-wide gang, semi-autonomous branches have been established in virtually every state in the nation, including Mississippi. The ABM was founded in 1984, and was modeled after and adopted many of the precepts and writings of the Aryan Brotherhood of California. In early 2013, the leadership of the ABM began efforts to unify with the Aryan Brotherhood of California in order to achieve national recognition.
The ABM had a detailed and uniform organizational structure divided into three separate geographic areas of control, the northern, central and southern regions of the state of Mississippi. The state was overseen and directed by a three-member “wheel” commonly referred to as “spokes.” The wheel has ultimate authority in all gang matters. During the times alleged, the wheel of the ABM was comprised of spokes Frank Owens Jr, 44; Perry Mask, 46, of Corinth, Mississippi; Steven Hubanks, 45, of Rienzi, Mississippi; and Brandon Creel, 46, aka Oak, of Ellisville, Mississippi. Each region and prison had an assigned captain and lieutenants, sergeant-at-arms, treasurers, soldiers, associates and female members known as “featherwoods.” The ABM, inside the state correctional facilities and outside, were engaged in racketeering activities, including murder, attempted murder, kidnapping, assault, money laundering, firearms trafficking and trafficking in marijuana and methamphetamine.
In order to be considered for membership, a person must be sponsored by another member. Once sponsored, a prospective member must serve a probationary term of at least six months, during which time he is referred to as a prospect and his conduct is observed by the members. The prospect is required to sign a “prospect compact,” swear to an oath of secrecy and declare a lifetime commitment to the ABM.
ABM members often had tattoos incorporating one or more Nazi-style symbols as well as state-specific symbols including, but not limited to, the Swastika, the Iron Cross and the letter “13”, which represented M, the 13th letter in the alphabet for the state of Mississippi. The “patch” tattoo was unique to Mississippi members and could only be worn by fully made members who generally ascended to full membership by committing their “blood-in mission” on behalf of the gang. The most coveted tattoo was the Schutzstaffel (SS) lightning bolts, which designated “thunder warrior” or ABM executioner status, a rank that could only be obtained after three successful violent missions.
The ABM enforced their rules and promoted discipline among members, prospects and associates through violence and threats against those who violated the rules or posed a threat to the gang. Members, and oftentimes associates, were required to follow the orders of higher-ranking members. Only the wheel leaders had the authority to issue orders and mete out member punishment. Failure to perform an order resulted in the assigned member being in violation of their rules, with punishment ranging from a written violation to a beating or death. A violation meant a minor assault; an “S.O.S.” (smash on sight) meant a serious assault that often resulted in the removal of the member’s ABM brand (gang tattoo), often by knife or blow torch; a “K.O.S.” (kill on sight) resulted in the murder of a rival gang member or of an ABM member or associate who committed an egregious violation of gang rules.
The DEA, ATF, FBI and the Mississippi Bureau of Narcotics investigated the case. The U.S. Marshals Service; Federal Protective Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Mississippi Highway Patrol; Mississippi Bureau of Investigation; Mississippi Department of Corrections; Harrison County, Mississippi, Sheriff’s Office; South Mississippi Metro Enforcement Team; Tupelo, Mississippi, Police Department; North Mississippi Narcotics Unit; Tishomingo, Mississippi, County Sheriff’s Office; Lee County, Mississippi, Sheriff’s Office; Forrest County, Mississippi, District Attorney’s Office; Prentiss County, Mississippi, Sheriff’s Office; Jones County, Mississippi, Sheriff’s Office; Harrison County, Mississippi, Sheriff’s Office; and South Mississippi Metro Enforcement Team also provided valuable assistance. The Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Offices of the Northern and Southern District of Mississippi prosecuted the case.
Thirty-Six Members of Two Rival Manhattan Drug Trafficking Organizations Operating in NYCHA Housing Projects Charged in Federal Court with Narcotics Trafficking and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of two Indictments charging a total of 36 members of two rival Manhattan-based drug trafficking organizations for narcotics trafficking and firearms offenses (the “Washington Houses Indictment” and the “East River Indictment”). These two drug trafficking organizations operate out of three New York City Housing Authority (“NYCHA”) developments in East Harlem: the President George Washington Houses (the “Washington Houses”), the East River Houses (“East River”), and the Metro North Plaza (“Metro North”).
The Washington Houses Indictment charges 20 members of the Washington Houses Drug Trafficking Organization (“DTO”) in the case of United States v. Hasoan Alto, a/k/a “Hass,” et al., which has been assigned to United States District Judge Victor Marrero. The East River Indictment charges 16 members of the East River DTO in the case of United States v. Charles Kenyatta, a/k/a “Charlie Cee,” et al., which has been assigned to United States District Judge Alison J. Nathan. Of the 36 defendants charged in both the Washington Houses and East River Indictments, 29 are currently in custody, including 26 defendants who were arrested earlier last night and today as part of a coordinated takedown between the FBI and NYPD. The defendants already in custody will be presented today before United States Magistrate Henry B. Pitman.
Manhattan U.S. Attorney Preet Bharara said: “For far too long, NYCHA residents have had to live with drug dealing and violence as part of their everyday lives. With the arrests of 36 alleged members of violent drug trafficking groups, we seek to stem the flow of drugs and the cycle of violence plaguing the Washington Houses, East River Houses and Metro North Plaza. As the indictments allege, these defendants trafficked in all types of drugs, including heroin, crack cocaine, oxycodone and marijuana; peddled in all areas in and around the housing projects, including near schools and in city hospitals; and protected their lucrative businesses with guns and violence. Residents of public housing – like all residents of New York City – deserve safe streets, free of drugs and violence. I thank our partners at the FBI and NYPD for their work in this investigation and for their commitment to making our city and our housing projects safer and drug free.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “Today we carried out a coordinated operation to arrest more than 30 members of two drug trafficking organizations who violently carried out their illegal business dealings in the East Harlem area. Getting those who bring guns and drugs in to our neighborhoods, schools, and hospitals is the only way we can get violence off the city streets that affects everyday citizens. The FBI will continue our partnership with the NYPD to investigate and bring those who are part of such criminal organizations to justice.”
Commissioner William J. Bratton said: "For years the residents of East Harlem have been subjected to the violence and fear associated with the rampant illegal narcotics activity in this area. Today's arrests with the FBI and prosecution by the office of the US Attorney for the Southern District will undoubtedly result in a safer East Harlem community."
As alleged in the Indictments unsealed today in Manhattan federal court and in other court papers[1]:
United States v. Hasoan Alto, a/k/a “Hass,” et al.
The Washington Houses are a housing development operated by NYCHA in East Harlem. From at least in or about 2015 up to and including in or about April 2016, HASOAN ALTO, a/k/a “Hass,” ANTONIO REYES, a/k/a “Tone,” a/k/a “Capo,” CARLOS VEGA, a/k/a “Gotti,” JASON KELLY, a/k/a “Beast,” ANTOINE BOYCE, a/k/a “Fetty Baller,” AARON RICE, a/k/a “Goon,” TYRONE SCHULTZ, a/k/a “Fats,” ZAGORA DAVIS, a/k/a “Bianca,” JOSE MEDINA, a/k/a “JoJo,” JASON JARVIS, a/k/a “Slim,” JONATHAN ANGULO, a/k/a “J.O.,” TAQUAN SANDERS, a/k/a “Goose,” a/k/a “Goo,” ANGEL VILLAFANE, DEVIN RODRIGUEZ, LEON ROBINSON, a/k/a “Pop,” JOSHUA NEGRON, TAHIEM HOLMES, NIJEL RICHARDSON, NATHANIEL COLEMAN, and AISA TOMPKINS (the “Washington Houses Defendants”), operated a drug trafficking organization (the “Washington Houses DTO”) in and around the Washington Houses. The Washington Houses DTO trafficked in a variety of narcotics – including crack cocaine, heroin, oxycodone, and marijuana on a daily basis. The Washington Houses Defendants sold narcotics in areas frequented by New York City’s most vulnerable citizens, including in and within the vicinity of New York City schools and inside two New York City hospitals.
In addition, members of the Washington Houses DTO protected and maintained their drug business through the firearms and acts of violence. For example, in or about 2016, ANTONIO REYES, a/k/a “Tone,” a/k/a “Capo,” and JONATHAN ANGULO, a/k/a “J.O.,” the defendants, discussed plans to shoot another individual because it was their “block.” Similarly, ANTOINE BOYCE, a/k/a “Fetty Baller,” bragged about having assaulted another individual and having knocked him unconscious. Also in or about 2016, DEVIN RODRIGUEZ, with REYES’s help, robbed another drug dealer at gunpoint.
Count One of the Washington Houses Indictment charges HASOAN ALTO, a/k/a “Hass,” ANTONIO REYES, a/k/a “Tone,” a/k/a “Capo,” CARLOS VEGA, a/k/a “Gotti,” JASON KELLY, a/k/a “Beast,” ANTOINE BOYCE, a/k/a “Fetty Baller,” AARON RICE, a/k/a “Goon,” TYRONE SCHULTZ, a/k/a “Fats,” ZAGORA DAVIS, a/k/a “Bianca,” JOSE MEDINA, a/k/a “JoJo,” JASON JARVIS, a/k/a “Slim,” JONATHAN ANGULO, a/k/a “J.O.,” TAQUAN SANDERS, a/k/a “Goose,” a/k/a “Goo,” ANGEL VILLAFANE, DEVIN RODRIGUEZ, LEON ROBINSON, a/k/a “Pop,” JOSHUA NEGRON, TAHIEM HOLMES, NIJEL RICHARDSON, NATHANIEL COLEMAN, and AISA TOMPKINS, with participating in a conspiracy to distribute narcotics, including crack cocaine, heroin, oxycodone, and marijuana.
Count Two of the Washington Houses Indictment charges ANTONIO REYES, a/k/a “Tone,” a/k/a “Capo,” DEVIN RODRIGUEZ, JONATHAN ANGULO, a/k/a “J.O. ,” AARON RICE, a/k/a “Goon,” and ANTOINE BOYCE, a/k/a “Fetty Baller,” with possessing a firearm in furtherance of the narcotics conspiracy charged in Count One.
United States v. Charles Kenyatta, a/k/a “Charlie Cee,” et al.
In addition to the Washington Houses, NYCHA also operates two other housing developments in East Harlem: East River and Metro North. CHARLES KENYATTA, a/k/a “Charlie Cee,” KASEEM WILSON, a/k/a “Kas,” a/k/a “Brown,” EFRAIN SANCHEZ, a/k/a “Solo,” SAMUEL RIVERA, a/k/a “Jazz,” a/k/a “Mulah,” a/k/a “Sammy,” FNU LNU, a/k/a “Sha,” KENYATTA FURS, a/k/a “Kenny Gilmore,” IVETTE COLON, WILLIAM ROBERTS, a/k/a “Mel Black,” TERRELL BLAND, a/k/a “Relly Rell,” a/k/a “Cash,” DAVON STEWART, a/k/a “Q,” MARCUS TOXEY, a/k/a “Bee Bee,” CARL ZELLER, a/k/a “Tone,” SHARON HILL, BRYAN DAFFIN, a/k/a “Q,” a/k/a “BJ,” ABRAHAM CUCUTA, a/k/a “Holiday,” and BISHAUNTI POLAND, a/k/a “Bino” (the “East River Defendants”). From at least in or about 2012 up to and including in or about April 2016, the East River Defendants operated another drug trafficking organization (the “East River DTO”) in and around East River and Metro North. Like the Washington Houses DTO, the East River DTO trafficked in several narcotics, including crack cocaine, heroin, and marijuana, on a daily basis. Furthermore, the East River Defendants’ narcotics trafficking activity extended to, among other places, public streets and the vicinity of New York City schools.
Also like the Washington Houses Defendants, the East River Defendants planned and engaged in violent acts and possessed firearms to protect and maintain the East River DTO’s illegal businesses. For example, in or about 2016, CHARLES KENYATTA, a/k/a “Charlie Cee,” planned to rob a victim in a barbershop in the area. TERRELL BLAND, a/k/a “Relly Rell,” a/k/a “Cash,” claimed in social media that individuals who were not part of the East River DTO would be “target[s].” KASEEM WILSON, a/k/a “Kas,” a/k/a “Brown,” also possessed a firearm in the area of where the East River DTO operated in furtherance of the charged drug dealing conspiracy.
Count One of the East River Indictment charges CHARLES KENYATTA, a/k/a “Charlie Cee,” KASEEM WILSON, a/k/a “Kas,” a/k/a “Brown,” EFRAIN SANCHEZ, a/k/a “Solo,” SAMUEL RIVERA, a/k/a “Jazz,” a/k/a “Mulah,” a/k/a “Sammy,” FNU LNU, a/k/a “Sha,” KENYATTA FURS, a/k/a “Kenny Gilmore,” IVETTE COLON, WILLIAM ROBERTS, a/k/a “Mel Black,” TERRELL BLAND, a/k/a “Relly Rell,” a/k/a “Cash,” DAVON STEWART, a/k/a “Q,” MARCUS TOXEY, a/k/a “Bee Bee,” CARL ZELLER, a/k/a “Tone,” SHARON HILL, BRYAN DAFFIN, a/k/a “Q,” a/k/a “BJ,” ABRAHAM CUCUTA, a/k/a “Holiday,” and BISHAUNTI POLAND, a/k/a “Bino,” with participating in a conspiracy to distribute narcotics, including crack cocaine, heroin, and marijuana.
Count Two of the East River Indictment charges KASEEM WILSON, a/k/a “Kas,” a/k/a “Brown,” with possessing a firearm in furtherance of the narcotics conspiracy charged in Count One.
* * *
Charts containing the names, ages, residences, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI and the NYPD.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Sidhardha Kamaraju, Max Nicholas, and Jane Kim are in charge of the prosecution.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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United States v. Hasoan Alto, a/k/a “Hass,” et al., 16 Cr 272 (VM)
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Conspiracy to Distribute Narcotics
21 U.S.C. § 846
HASOAN ALTO
ANTONIO REYES CARLOS VEGA
JASON KELLY
ANTOINE BOYCE
AARON RICE
TYRONE SCHULTZ
ZAGORA DAVIS
LEON ROBINSON
JOSE MEDINA
JASON JARVIS
JONATHAN ANGULO
TAQUAN SANDERS ANGEL VILLAFANE DEVIN RODRIGUEZ LEON ROBINSON JOSHUA NEGRON TAHIEM HOLMES
NIJEL RICHARDSON NATHANIEL COLEMAN AISA TOMPKINS
Life in prison
2
Possession of Firearm in Furtherance of Narcotics Trafficking
18 U.S.C. 924(c)(1)(A)
ANTONIO REYES
DEVIN RODRIGUEZ JONATHAN ANGULO AARON RICE
ANTOINE BOYCE
Life in prison
DEFENDANT
AGE
RESIDENCE
HASOAN ALTO,
a/k/a “Hass”
41
New York, New York
ANTONIO REYES,
a/k/a “Tone,”
a/k/a “Capo”
24
New York, New York
CARLOS VEGA,
a/k/a “Gotti”
31
New York, New York
JASON KELLY,
a/k/a “Beast”
26
New York, New York
ANTOINE BOYCE,
a/k/a “Fetty Baller”
26
New York, New York
AARON RICE,
a/k/a “Goon”
24
New York, New York
TYRONE SCHULTZ,”
a/k/a “Fats”
44
New York, New York
ZAGORA DAVIS,
a/k/a “Bianca”
25
New York, New York
JOSE MEDINA,
a/k/a “JoJo”
34
New York, New York
JASON JARVIS,
a/k/a “Slim”
28
New York, New York
JONATHAN ANGULO,
a/k/a “J.O.”
23
New York, New York
TAQUAN SANDERS,
a/k/a “Goose,”
a/k/a “Goo”
29
New York, New York
ANGEL VILLAFANE
32
New York, New York
DEVIN RODRIGUEZ
22
New York, New York
LEON ROBINSON,
a/k/a “Pop”
43
New York, New York
JOSHUA NEGRON,
34
New York, New York
TAHIEM HOLMES
25
New York, New York
NIJEL RICHARDSON
27
New York, New York
NATHANIEL COLEMAN
25
New York, New York
AISA TOMPKINS
25
New York, New York
United States v. Charles Kenyatta, a/k/a “Charlie Cee,” et al., 16 Cr 273 (AJN)
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Conspiracy to Distribute Narcotics
21 U.S.C. § 846
CHARLES KENYATTA KASEEM WILSON EFRAIN SANCHEZ
SAMUEL RIVERA
FNU LNU
KENYATTA FURS
IVETTE COLON WILLIAM ROBERTS
TERRELL BLAND
DAVON STEWART
MARCUS TOXEY
CARL ZELLER
SHARON HILL
BRYAN DAFFIN ABRAHAM CUCUTA
BISHAUNTI POLAND
Life in prison
2
Possession of Firearm in Furtherance of Narcotics Trafficking
18 U.S.C. § 924(c)(1)(A)
KASEEM WILSON
Life in prison
DEFENDANT
AGE
RESIDENCE
CHARLES KENYATTA,
a/k/a “Charlie Cee”
24
New York, New York
KASEEM WILSON,
a/k/a “Kas,”
a/k/a “Brown”
25
New York, New York
EFRAIN SANCHEZ,
a/k/a “Solo”
23
New York, New York
SAMUEL RIVERA,
a/k/a “Jazz,”
a/k/a “Mulah,”
a/k/a “Sammy”
24
New York, New York
FNU LNU,
a/k/a “Sha”
--
New York, New York
KENYATTA FURS,
a/k/a “Kenny Gilmore”
39
New York, New York
IVETTE COLON
51
New York, New York
WILLIAM ROBERTS,
a/k/a “Mel Black”
41
New York, New York
TERRELL BLAND,
a/k/a “Relly Rell,”
a/k/a “Cash”
20
New York, New York
DAVON STEWART,
a/k/a “Q”
30
New York, New York
MARCUS TOXEY,
a/k/a “Bee Bee”
28
New York, New York
CARL ZELLER,
a/k/a “Tone”
36
New York, New York
SHARON HILL
49
New York, New York
BRYAN DAFFIN,
a/k/a “Q,”
a/k/a “BJ”
19
New York, New York
ABRAHAM CUCUTA,
a/k/a “Holiday”
32
New York, New York
BISHAUNTI POLAND,
a/k/a “Bino”
30
New York, New York
[1] As the introductory phrase signifies, the entirety of the text of the Indictments, and the description of the Indictments set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Statement from Head of the Civil Rights Division Vanita Gupta Regarding District Court’s Approval of Consent Decree with City of Ferguson, MissouriRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, released the following statement regarding the ruling issued by U.S. District Judge Catherine D. Perry of the Eastern District of Missouri approving the department’s consent decree with the city of Ferguson, Missouri:
“Now that the consent decree has been approved by the court, the department is looking forward to working with the city of Ferguson as it implements the decree and continues the essential work to create a police department that the Constitution requires and that residents deserve.”
Statement of U.S. Attorney Andrew Luger on Partial Verdict After Trial of Officer Michael GriffinRead the Press Release
“While we had hoped for a different outcome, we respect the verdict of the jury and thank them for their service during this long and difficult trial. We strongly believe that this case needed to be brought before a Court, publicly tried, and decided by a jury. Our office is reviewing its options as to those remaining counts of the indictment upon which the jury was unable to reach a unanimous verdict.”
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Serial Bank Robber Exiled to over 17 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced John Edward Hayes, age 46, formerly of Baltimore, today to 209 months in prison followed by five years of supervised release for armed bank robbery, use of a firearm during the commission of a crime of violence and illegal possession of a firearm. Judge Bennett ordered Hayes to pay restitution of $17,697.11, the amount of the banks’ losses.
The sentence 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; Commissioner Kevin Davis of the Baltimore Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Colonel Edwin C. Roessler, Jr., Chief of the Fairfax County (Virginia) Police Department.
According to his plea agreement, from February to May 2014, Hayes robbed a string of banks in the Baltimore and Washington, D.C. metropolitan areas. On several occasions Hayes presented the teller with a note stating that he had a gun, or told the teller that he had a gun.
Specifically, Hayes robbed the PNC Bank on North Charles Street in Baltimore on February 3; the Wells Fargo Bank on North Rolling Road in Catonsville on February 18 and again on March 14, the Capitol One Bank on New Hampshire Avenue in Silver Spring on April 21, and the Capitol One Bank on Georgia Avenue in Wheaton on April 28.
On May 1, Hayes robbed the SunTrust Bank located on Baltimore National Pike in Columbia using a handgun. The handgun was seized when he was taken into custody on May 6, 2014. A security officer encountered Hayes in the restroom of a McDonald’s. Hayes was seriously injured by a gunshot from the security guard.
The total amount Hayes stole in the six bank robberies was $17,697.11.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County and City Police Departments, Montgomery County Police Department and the Fairfax County (Virginia) Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney P. Michael Cunningham and Special Assistant United States Attorney Lauren Perry, who prosecuted the case.
San Antonio Man Sentenced to Federal Prison on Child Pornography ChargeRead the Press Release
Earlier today, 31-year-old Jeffrey Owen Tucker of San Antonio was sentenced to 210 months in federal prison followed by a lifetime of supervised release for receipt of child pornography announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
On October 22, 2015, Tucker pleaded guilty to the charge. By pleading guilty, Tucker admitted that from January 2105 until September 2015, he downloaded images and videos involving child pornography from the Internet.
In September 2015, federal authorities arrested Tucker following the execution of a search warrant at his residence. A subsequent forensics examination of seized materials, including the defendant’s computer and related media, revealed the presence of approximately 1,425 images and 189 videos depicting child pornography. Tucker has remained in federal custody since his arrest.
This investigation was conducted by the FBI’s San Antonio Child Exploitation Task Force. Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the Government.
Restaurant Owner Indicted for Illegal Firearms, SilencersRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Auxvasse, Mo., man has been indicted by a federal grand jury for illegally possessing 21 firearms and three firearm silencers.
Billy Bush Owen, 53, of Auxvasse, was charged in a two-count indictment returned under seal by a federal grand jury in Jefferson City, Mo., on Feb. 10, 2016. That indictment was unsealed and made public today upon Owen’s arrest and initial court appearance. Owen is the owner of Panhead Billy’s BBQ in Kingdom City, Mo.
The federal indictment charges Owen with one count of being a felon in possession of firearms and one count of possessing three unregistered firearm silencers.
Owen, who has been convicted of a felony, allegedly was in possession of 21 firearms on Dec. 9,2015, including handguns, rifles and shotguns, as well as three silencers. Under federal law, it is illegal for anyone who has been convicted of a felony to possess any firearms (including silencers) or ammunition.
Owen also was charged with possessing three silencers that were not registered to him.
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 Anthony P. Gonzalez. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Callaway County, Mo., Sheriff’s Department and MUSTANG (the Mid-Missouri Unified Strike Team And Narcotics Group).
Republic Man Sentenced to 15 Years for MethRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Republic, Mo., man was sentenced in federal court today after police officers who stopped to help with his stalled vehicle discovered methamphetamine in the back seat.
William Cruz Martinez, 40, of Republic, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years and eight months in federal prison without parole.
On Sept. 28, 2015, Martinez pleaded guilty to possessing methamphetamine with the intent to distribute. Martinez admitted that he was in possession of a total of 148.05 grams of methamphetamine when he was approached by a Springfield police officer on Oct. 1, 2013.
According to court documents, Martinez’s 1999 Chevrolet Tahoe was stopped at a flashing red light at the intersection of Fremont Street and Bennett Avenue in Springfield. The Tahoe appeared to be stalled, so the officer activated his emergency lights to warn oncoming traffic and approached Martinez, the driver. Martinez appeared nervous and stated that he was having car trouble. After checking his identity information, the officer told Martinez that he was free to leave and asked him if he needed his vehicle towed. Martinez said he would have a friend come and help him. The officer told Martinez that he would standby in his vehicle until his friend arrived, so other motorists would not strike him, and Martinez thanked him.
As the officer started walking towards his patrol vehicle, another officer motioned to him to look in the back passenger seat of Martinez’s vehicle. The officer saw in plain view a clear plastic bag containing methamphetamine on the passenger side back seat. Martinez grabbed the plastic bag and attempted to hide or destroy it. Officers pulled Martinez out of the vehicle, at which time he dropped the bag, which was recovered by one of the officers.
During a search of the vehicle, officers found a lunchbox under the hood, inside the air filter box. Inside the lunch box were clear plastic bags containing methamphetamine, individually packaged for distribution. Officers seized a total of 148.05 grams of methamphetamine from Martinez’s vehicle.
This case was prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Drug Enforcement Administration and the Springfield, Mo., Police Department.
President and Chief Financial Officer of Charlotte Area Payroll Services Company Sentenced to Prison in Connection with $2 Million Fraud Against ClientsRead the Press Release
CHARLOTTE, N.C. –The President and Chief Financial Officer (CFO) of a Charlotte-based payroll services company were sentenced to prison today by Chief U.S. District Judge Frank D. Whitney, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Jerry Wayne Overcash, 67, of Charlotte, and John Bernard Thigpen, 60, of Rock Hill, S.C., were sentenced to 46 months and 21 months in prison, respectively, for stealing over $2 million from client companies and using the money to fund exorbitant salaries. In addition to the prison term, they were each ordered to serve two years of supervised release and to jointly pay $1.3 million as restitution to the victim client companies. The Court will enter a final restitution amount in 90 days, to allow any additional eligible victims to submit their claims.
The company’s co-founder and Chairman of the Board, Frank Alton Moody, II, 56, of Arden, N.C., was indicted in March 2016 for his role in the fraudulent scheme.
U.S. Attorney Rose is joined in making today’s announcement by Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
“Overcash and Thigpen were integral members of an elaborate financial scheme that ripped off their clients’ money and defrauded the federal government. A prison sentence is the only punishment befitting of these two professional scam artists,” said U.S. Attorney Rose.
“The fraud scheme executed by the conspirators is an egregious story of countless lies and endless greed. They ignored their fiduciary responsibilities to their clients and left many of them holding the bag, while they stuffed their pockets. They were entrusted as professionals and to represent their client’s interests with respect to the Internal Revenue Service, and they abused this trust by ignoring their responsibilities and engaging in theft. IRS Criminal Investigation with our law enforcement partners remain committed to pursuing individuals like Overcash and Thigpen, and seeing that they face justice,” said Special Agent in Charge Holloman.
“The U.S. Postal Inspection Service is committed to investigating and bringing to justice those who prey on innocent victims for their selfish gain. We value the collaboration with our law enforcement partners to protect the American Public,” said Inspector in Charge Noyes.
According to documents filed in court and today’s sentencing hearings, Thigpen, a Certified Public Accountant, was hired in December 2010 to serve as the CFO of CenterCede Services Inc. (CenterCede), a payroll services company with clients in Charlotte and elsewhere. CenterCede was established in August 2010 by Overcash and Moody, to assume the business operations of another payroll services company the two men previously owned and operated, “The Resource Solutions Group” (TRSG). TRSG had been shut down by IRS in August 2010, for failing to pay more than $9 million in federal payroll taxes TRSG collected from its clients.
Court documents show that from November 2010 to November 2011, CenterCede purportedly provided payroll preparation and processing services to its clients. As such, CenterCede collected funds from its clients to pay the client companies’ federal tax obligations, gross payroll for the clients’ employees, worker’s compensation, and unemployment insurance, among other moneys, as well as fees due to CenterCede. According to court records, throughout the relevant time period, Thigpen, with oversight from Overcash and Moody, supervised the preparation of tax returns on behalf of client companies. Contrary to their representations to clients, the conspirators did not pay the clients’ federal taxes in appropriate amounts and by the applicable deadlines. Instead, according to court records, Moody, Overcash and Thigpen diverted the funds to pay their own exorbitant salaries and to cover growing liabilities, including the tax liabilities of other CenterCede clients. To keep the scheme afloat, the conspirators paid only those obligations necessary to keep their ongoing cash flow crisis a secret from clients.
As reflected in court documents, the conspirators favored what they called “priority” clients and attempted to keep those priority clients from learning about monthly cash shortfalls by frequently paying those clients’ obligations ahead of other non-priority clients. “Priority” clients generally had large payrolls with deposits necessary to fund CenterCede’s short-term cash needs and to keep the scheme afloat. Court records show that when clients inquired about failures to pay their obligations, the three conspirators took steps to conceal the fraud by providing false excuses and misleading explanations. Court records show that in the second and third quarters of 2011, Thigpen, Overcash and Moody defrauded CenterCede’s payroll clients of more than $2 million dollars. At the same time that the conspirators failed to pay the tax obligations of CenterCede’s clients, Overcash and allegedly Moody each continued to draw a $240,000 annual salary from CenterCede.
In announcing today’s sentences, Judge Whitney said that the Court wanted to “send a message to others entrusted with third parties’ money, and anyone who is a fiduciary of other people’s money.” Judge Whitney noted that Thigpen “learned his lesson the hard way.” Judge Whitney also said that Overcash “committed a serious crime that victimized a lot of businesses and individuals, and the Internal Revenue Service” and that Overcash’s conduct resulted in “a lot of people being severely hurt.”
Thigpen and Overcash previously pleaded guilty to wire fraud charges. Moody is currently charged with one count of conspiracy and one count of wire fraud and has been released on bond. The conspiracy charge carries a maximum of 5 years in prison and a $250,000 fine. The wire fraud charge carries a maximum of 20 years in prison and a $250,000 fine. All charges against Moody are allegations and he is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
The investigation for the case is being handled by USPIS and IRS-CI. Assistant U.S. Attorneys Corey F. Ellis and Taylor Phillips of the U.S. Attorney’s Office, in Charlotte are in charge of the prosecution.
Port Charlotte Man Found Guilty of Conspiracy to Possess with Intent to Distribute MarijuanaRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces today that a federal jury has found Nicholas Jakimer (55, Port Charlotte) guilty of conspiracy to possess with the intent to distribute 100 kilograms or more of marijuana. He faces a mandatory minimum term of 5 years, up to 40 years, in federal prison. His sentencing hearing is scheduled for July 27, 2016.
Jakimer was indicted on April 15, 2015.
According to testimony and evidence presented at trial, Jakimer conspired with others to bring marijuana from Arizona to Southwest Florida for distribution. Jakimer funded the operation and recruited customers, who bought the marijuana on a wholesale basis.
This case was investigated by the Florida Highway Patrol and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Robert P. Barclift.
Physician Pleads Guilty for Role in Detroit-Area Medicare Fraud SchemeRead the Press Release
A licensed physician who worked for a Detroit-area medical practice pleaded guilty today for his role in a $2.4 million health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Ali Elhorr, M.D., 47, of Dearborn, Michigan, pleaded guilty before U.S. District Judge Nancy G. Edmunds of the Eastern District of Michigan to one count of conspiracy to commit health care fraud. A sentencing hearing is scheduled for Aug. 16, 2016.
Elhorr worked at House Calls Physicians P.L.L.C., which was located in Allen Park, Michigan. According to admissions in his plea agreement, from approximately September 2009 to September 2012, Elhorr conspired with others, including his brother, Dr. Hicham Elhorr, to commit health care fraud by agreeing to serve as a “supervising” physician for unlicensed individuals purportedly providing in-home physician services. The unlicensed individuals prepared medical documentation that Elhorr and other licensed physicians signed as if they had performed the visits when, in fact, Elhorr and the other licensed physicians had not treated the beneficiaries, he admitted. The visits were then billed as if performed by the licensed physicians, according to the plea.
Elhorr admitted that between approximately March 2008 and September 2012, House Calls Physicians billed Medicare more than $11.5 million for the cost of physician home services. Of that amount, Elhorr admitted that he caused the submission of approximately $2.4 million in false and fraudulent claims.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Michigan. Former Assistant Chief Catherine K. Dick and Trial Attorneys Matthew C. Thuesen, F. Turner Buford and Shubhra Shivpuri of the Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS’s Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Philadelphia Woman Charged with Stealing Dead Relative's BenefitsRead the Press Release
PHILADELPHIA - Martha Stanley, 47, of Philadelphia, Pennsylvania, was charged by indictment, unsealed today, with three counts of wire fraud, one count of theft of government funds, and one count of social security fraud, announced United States Attorney Zane David Memeger. According to the indictment, the defendant received retirement benefits intended for a deceased relative after her relative’s death in June 2005. The defendant’s alleged actions resulted in a loss to the government of approximately $102,126.
If convicted, defendant Martha Stanley faces a statutory maximum sentence of up to 75 years in prison, up to three years of supervised release, restitution to the government of $102,126, a possible fine, and a $500 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Oregon Man Convicted for Unlawfully Occupying Federal LandRead the Press Release
EUGENE, Ore. - On April 18, 2016 a federal jury in Eugene, Oregon, convicted Kenneth Medenbach, 63, of Crescent, Oregon, for unlawful occupying federal lands managed by the U.S. Bureau of Land Management (BLM).
In May 2015, Medenbach delivered a letter to BLM claiming “adverse possession” of 320 acres of federal public lands in Josephine County, Oregon. Medenbach erected a small cabin on public lands along a BLM road and refused to remove it despite repeated warnings by BLM. BLM regulations provide that a person may not camp or occupy the same site for more than 14 days without authorization. Medenbach was later charged with unlawful occupation and illegal camping.
Medenbach argued that the public land he was occupying did not belong to the United States because the federal government did not have constitutional authority to possess public lands in Oregon. Medenbach also argued that federal courts did not have authority to interpret the U.S. Constitution. U.S. District Judge Michael McShane rejected both legal claims and the jury convicted him on both of the charges at trial. Judge McShane ordered the removal of Medenbach’s illegal cabin after the jury verdict.
Medenbach, will be sentenced on August 1, 2016. He faces up to one year in prison and a $1,000 fine.
This case was investigated by the U.S. Bureau of Land Management and prosecuted by Assistant U. S. Attorney Douglas W. Fong.
New Carrollton Man Charged in Sex Trafficking SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Jason David Young, a/k/a “J Bird,” “Bird,” and “Chris,”, age 32, of New Carrollton, Maryland today on charges arising from sex trafficking. The original indictment was returned on August 25, 2015 charging Young with being a felon in possession of firearms. Today’s superseding indictment adds charges of sex trafficking and coercion.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief J. Thomas Manger of the Montgomery County Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; Chief Gary Gardner of the Howard County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Howard County State’s Attorney Dario Broccolino.
According to the seven count superseding indictment, Young was a pimp who trafficked at least four women who were Maryland residents to engage in sex for money. Young directed three of the women to deliver drugs to individuals, including customers, and also provided drugs to women who worked for him, including crack cocaine and opioids. Young used violence to force at least three of the women to engage in sex for money, and directed women working for him to also use violence.
The indictment alleges that Young and another individual transported the women working for him to hotel rooms and residences occupied by customers. Young persuaded and coerced one woman to travel from Maryland to Virginia on February 27, 2014, and persuaded and coerced two women to travel from Maryland to Tennessee from January 18 to 21, 2014.
The indictment further alleges that from August to December 15, 2014, two of the women stole handguns from an individual and gave them to Young. Young had previously been convicted of felonies and was prohibited from possessing the firearms.
Young faces a mandatory minimum of 15 years and a maximum of life in prison on each of two counts of being a felon in possession of a firearm, and on each of three counts for sex trafficking; and 20 years in prison on each of two counts for coercion and enticement. An initial appearance is expected later this week in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore; Montgomery County, Prince George’s County and Howard County Police Departments, and Prince George’s County and Howard County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Patricia C. McLane, who are prosecuting the case.
Mt. Vernon Man Sentenced to Six Years for Robbing Two PharmaciesRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Steven C. Chaput, 40, of Mt. Vernon, Maine was sentenced today in U.S. District Court to six years in prison to be followed by three years of supervised release for committing two pharmacy robberies. He was also ordered to pay $726 in restitution.
On February 7, 2015, Chaput drove Rudger S. Ellis to the Rite Aid Pharmacy located on North Belfast Avenue in Augusta, Maine. Ellis entered the pharmacy wearing a hooded gray sweatshirt, blue and white athletic pants, and gloves. He had covered his face with a plaid cloth. Ellis approached the counter and demanded that the pharmacist give him oxycodone, Oxycontin, and Ritalin. He told the pharmacy employees to hurry up and said that he had a gun. Ellis absconded with six bottles containing oxycodone. Chaput was the lookout for Ellis and the getaway driver.
On February 18, 2015, Chaput drove Ellis to the Rite Aid Pharmacy located on Spring Street in Gardiner. Ellis robbed that pharmacy again wearing a hooded sweatshirt and gloves and covering his face with a plaid cloth. He approached the pharmacy counter and demanded oxycodone 30 milligram pills. He repeatedly told pharmacy employees to “hurry” and several times commanded: “now, now, now!” Ellis absconded with 11 bottles of oxycodone. Chaput was once again the lookout for Ellis and the getaway driver.
Ellis was sentenced on April 6, 2016, to five years in prison and three years of supervised release.
The investigation was conducted by the Augusta Police Department, the Gardiner Police Department and the Federal Bureau of Investigation.
Montana Man Sentenced to Prison for Marijuana Manufacturing, Tax Evasion and Weapons ChargesRead the Press Release
A Lincoln, Montana, man was sentenced today to five years in prison for manufacturing marijuana, being a felon in possession of a firearm and tax evasion, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Michael W. Cotter for the District of Montana.
Dennis Peiker, 61, was sentenced by U.S. District Court Judge Brian Morris for the District of Montana to serve 60 months in prison, followed by four years of supervised release and ordered to pay $409,819 in restitution to the Internal Revenue Service (IRS). Following a jury trial in August 2015, Peiker was convicted of manufacturing more than 100 marijuana plants. In September 2015, Peiker pleaded guilty to two counts of felon in possession of a firearm and one count of tax evasion. Judge Morris ordered Peiker to forfeit all firearms seized by law enforcement authorities.
Peiker evaded the payment of more than $628,000 in federal income tax, penalties and interest for the years 2002 through 2009 by concealing the true nature of his assets, making false statements to IRS officials, and placing funds and property in the names of others. Peiker was previously convicted in 1999 of filing false federal income tax returns. Despite the fact that Peiker is a convicted felon and therefore prohibited from possessing firearms, law enforcement agents seized ammunition and multiple firearms, including a semi-automatic pistol, two single-shot rifles, three automatic rifles and a shotgun, from his residence on two separate occasions in 2011 and 2015. Additionally, when Peiker was arrested in April 2015 following his indictment on the tax evasion charge, law enforcement agents discovered more than 100 marijuana plants at his residence.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Cotter commended special agents of IRS-Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Lewis and Clark County Sheriff’s Office as part of the Missouri River Drug Task Force, who investigated the case, and Assistant U.S. Attorneys Paulette Stewart and Chad Spraker and Trial Attorney John Mulcahy of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Mill Owner Sentenced to Prison for Purchases and Sales of Stolen Figured Maple from National ForestRead the Press Release
A Winlock, Washington wood buyer was sentenced today in U.S. District Court in Tacoma to six months in prison, six months of home detention and three years of supervised release and $159,692 in restitution for violating the Lacey Act by trafficking in big leaf maple illegally cut on national forest land, announced U.S. Attorney Annette L. Hayes. HAROLD CLAUSE KUPERS, 48, owner and operator of a now defunct company, J & L TONEWOODS, admitted to purchasing multiple cuts of wood without requiring the seller to show a valid Specialized Forest Products Permit, as required by law. KUPERS pleaded guilty in November 2015, admitting he suspected the wood had been illegally cut in the Gifford Pinchot National Forest. At the sentencing hearing U.S. District Judge Benjamin H. Settle said, “You were a central figure in what made this all [the stolen maple trade] work….You knew you were getting stolen wood, but you hid behind ignorance.”
“As long as unscrupulous mill owners like this defendant create a market for poached wood, our protected forests are at risk,” said U.S. Attorney Annette L. Hayes. “This defendant was effectively a ‘fence’ for stolen goods. In his case not stolen jewelry or electronics, but stolen publicly owned and irreplaceable natural resources.”
According to records in the case, in April 2012, law enforcement officers with the U.S. Forest Service met with KUPERS and specifically informed him that he was required by Washington law to review Specialized Forest Products Permits for all persons from whom he purchased maple. Despite being put on notice, between April 2012 and March 2014, KUPERS continued to purchase figured maple without requiring the harvesters to display a Specialized Forest Products permit. KUPERS then sold this figured maple to purchasers in interstate commerce for total revenues of $499,414.
Three men who illegally cut the wood previously pleaded guilty to theft of public property or conspiracy to steal public property for illegally harvesting the maple trees in the Gifford Pinchot National Forest in November and December 2011 and May 2012. James Miller, 36, of Morton, Washington was sentenced in February 2016 to six months in prison and three years of supervised release. Ryan Justice, 28, of Randle, Washington, was sentenced in December 2015 to 15 months in prison. Kevin Mullins, 56, of Packwood, Washington is scheduled for sentencing June 6, 2016.
The case is being investigated by the U.S. Forest Service. The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Matthew Diggs.
Mexican Drug Trafficker Sentenced to Eight Years in PrisonRead the Press Release
PHILADELPHIA – Cesar Vega-Castro, 34, a Mexican national formerly residing in Tuscon, Arizona, was sentenced today to 96 months in prison for drug trafficking and money laundering. Vega-Castro was an essential member of an international drug trafficking organization which brought thousands of kilograms of marijuana to the United States from Mexico and laundered millions of dollars of drug proceeds. Vega-Castro pleaded guilty on May 18, 2014 to conspiracy to distribute 1,000 kilograms or more of marijuana, conspiracy to commit money laundering, and one count of money laundering.
In addition to the prison term, U.S. District Court Judge Paul S. Diamond ordered a $300 special assessment and five years of supervised release.
As a result of the investigation, 11 members or associates of this organization were federally prosecuted. Of those, seven were convicted in the Eastern District of Pennsylvania; two were convicted by the Middle District of North Carolina; and one was convicted in the District of New Jersey.
The case was prosecuted by Assistant United States Attorney Maria M. Carrillo.
Marion County, WV woman pleads guilty to cocaine traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Bertha Horton, 55, of Fairmont, West Virginia, pled guilty to cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Horton, also known as “Peaches,” sold cocaine in May 2014 near East Fairmont Junior High School in Marion County, West Virginia. She pled guilty to one count of “Distribution of Cocaine Base within 1,000 feet of a Protected Location.” She faces between one and forty years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Three Rivers Drug Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Man Convicted of Assault for Trying to Run over Deputy U.S. Marshal with a Minivan Sentenced to 8 Years in Federal PrisonRead the Press Release
LOS ANGELES – A man who was found guilty of assaulting a Deputy U.S. Marshal by trying to run him over with a minivan has been sentenced to 96 months in federal prison.
Keith Leon Smith, 47, of Carson, was sentenced yesterday by United States District Judge R. Gary Klausner, who said the defendant was “really lucky on two grounds” – that he did not kill the Deputy Marshal and that he was not killed by law enforcement as he assaulted the Deputy Marshal.
Smith was found guilty by a federal jury on January 14 of one count of assaulting a federal officer with a deadly and dangerous weapon.
According to the evidence presented during a three-day trial in United States District Court, six Deputy U.S. Marshals went to a residence on East 220th Street in Carson, where they believed Smith was residing, on March 11, 2015. The Deputy Marshals were conducting an investigation with the goal of taking Smith into custody after a federal judge in 2013 had issued a bench warrant. Smith was wanted because he had violated the terms of his supervised release, after serving more than seven years in prison for being convicted of manufacturing methamphetamine.
While conducting surveillance, the Deputy Marshals observed Smith exit the residence, get into a minivan and leave the location. The Deputy Marshals, who were in several vehicles, followed Smith and executed a traffic stop, blocking his van. As the Deputy Marshals approached the minivan that Smith was driving and identified themselves as law enforcement officers, Smith reversed his vehicle toward some of the Marshals Service vehicles. Smith then suddenly accelerated his vehicle toward one of the Deputy Marshals, who was in front of the minivan. The Deputy Marshal, now in the way of the oncoming minivan, fired his weapon at the windshield and fell backward onto the ground.
Smith briefly stopped the vehicle as the shots hit the windshield, and then accelerated the minivan toward the Deputy Marshal, who was then lying on the ground. The Deputy Marshal was able to jump out of the way of the minivan and fire several shots at the vehicle. According to court documents, the Deputy Marshal “believes that he would be dead if he had not stumbled out of the way of defendant’s oncoming vehicle.”
“Mr. Smith took an inherently dangerous situation and made it much worse for everyone involved,” said United States Attorney Eileen M. Decker. “There are serious consequences to dangerous and willful acts, such as intentionally driving a vehicle at a Deputy Marshal who is carrying out his lawful duties. His decision to put law enforcement officers in jeopardy has earned him this lengthy prison sentence.”
Smith then sped away as the Deputy Marshals gave chase. But, due in part to his dangerous driving, which included swerving into oncoming traffic, Smith was able to elude capture that day. However, deputies with the Los Angeles Sheriff’s Department located Smith’s minivan the next day and took him into custody. During a subsequent interview with Sheriff’s detectives, Smith stated that he did not stop for the Marshals because he did not “want to go back to prison.”
The investigation in the assault case was conducted by the Federal Bureau of Investigation and the Los Angeles County Sheriff’s Department.
The government was represented at yesterday’s sentencing by Assistant United States Attorney Anil J. Antony of the General Crimes Section.
Loan Officer and De Pere Couple Indicted in Federal Court for Conspiracy to Commit Bank FraudRead the Press Release
United States Attorney Gregory J. Haanstad, of the Eastern District of Wisconsin announced that the grand jury has today indicted Ronald Van Den Heuvel (age: 62) of De Pere, his spouse Kelly Van Den Heuvel (age: 52) of De Pere and Paul Piikkila (age: 53), of Appleton on a series of criminal charges based on a scheme to fraudulently obtain loans from Horicon Bank, a federally insured financial institution operating at various Wisconsin locations. The indictment alleges that these loans were obtained on the basis of false representations.
In 2008 and 2009, Ronald Van Den Heuvel was a Green Bay businessman operating various business entities. Kelly Van Den Heuvel was his wife who also had her own corporation. Paul Piikkila was a loan officer at Horicon Bank.
The indictment alleges that Mr. Piikkila approved a series of loans totaling more than $1 million for the benefit of the Van Den Heuvels and their business entities. Horicon Bank had instructed Mr. Piikkila not to loan any money to Mr. Van Den Heuvel so none of the loans discussed in the indictment are to him by name. Many of the loans were made to straw borrowers who did not receive the money and were not expected to pay it back. The loans were not used for the business purposes represented on the loan applications and the collateral offered by Mr. Van Den Heuvel was inadequate to secure the loans.
Count One of the indictment charges all three defendants with conspiring to carry out this illegal scheme in violation of Title 18 United States Code § 371. The maximum penalty for Count One is imprisonment for not more than five years, a fine of not more than $250,000, or both, plus a mandatory $100 special assessment and a period of supervised release not to exceed three years.
Counts Two, Four, Six, Eight, Ten, Twelve and Thirteen each charge Ronald Van Den Heuvel with executions of a bank fraud scheme in violation of Title 18 United States Code § 1344. Kelly Van Den Heuvel is charged only in Count Ten. On each of these counts, a convicted defendant would face imprisonment for not more than 30 years, a fine of not more than $1 million, or both, plus the mandatory $100 special assessment and a term of supervised release not to exceed five years.
Counts Three, Five, Seven, Nine, and Eleven each charge Ronald Van Den Heuvel with making false statements to influence the action of a federal insured financial institution on a loan in violation of Title 18 United States Code § 1014. Kelly Van Den Heuvel is charged only in Count Eleven. Anyone convicted on any of these counts, would face imprisonment for not more than 30 years, a fine of not more than $1 million, or both, plus a mandatory $100 special assessment and a term of supervised release not to exceed five years.
This case is being investigated by the Federal Deposit Insurance Corporation. The case will be prosecuted by Assistant United States Attorneys Mel S. Johnson and Matthew D. Krueger.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Leader in $1.5 Million Fraudulent Check Cashing Scheme Pleads GuiltyRead the Press Release
Baltimore, Maryland – Friday James, age 43, of Laurel, Maryland, pleaded guilty today to conspiracies to commit bank fraud and make false claims, and to aggravated identity theft arising from schemes to defraud financial institutions and make false claims for tax refunds.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office.
According to his plea agreement, from approximately 2007 through November, 2013, James conspired with others to defraud various financial institutions by depositing counterfeit and stolen checks and withdrawing the funds before the deposits were identified as fraudulent. James became involved in the scheme through an individual he worked with buying and selling cars. James and this individual were originally from Nigeria and the individual had loaned James money. Initially James accompanied the individual (the co-conspirator) to the State Office Building to complete paperwork and register businesses. The two men would then obtain post office box addresses and open bank accounts for the businesses. They would then deposit stolen, altered, and counterfeit checks into the accounts and withdraw the funds before the checks could bounce.
The men used other individuals to conduct many of the transactions, including LaKeisha Butler, Kesa Baker, Carlvester Davis and others. According to the plea, all of these individuals opened post office boxes for businesses, in most cases using the identities of other people, including fake identifications bearing the picture of the co-conspirator and the personal information of an identity theft victim. These same individuals also opened bank accounts for the businesses, again often using stolen identities and fake identifications. The paperwork for these transactions was prepared by James or the co-conspirator, and the mailbox keys, checkbooks and debit cards were provided back to them. Only James or the co-conspirator picked up the mail from the post office boxes.
Additional co-conspirators were recruited to deposit the counterfeit checks and to withdraw the money, including Naimah Okail, Isaac Kusimo, and others. James and the co-conspirator would pick up the individuals and provide them with a check to deposit, or a check to cash, usually completing the checks in front of the cashers and obviously signing a name which was not theirs. James and/or the co-conspirator would transport the recruited individual to a bank, where that person used his or her own identification and the checks provided. The checks often had a telephone number written on the checks, which would be answered by James or his co-conspirator if the bank called to confirm that the check was genuine. Once the check was cashed, the money would be given to the James or the co-conspirator, and a portion (usually 5-10%) paid to the recruit.
During James’ participation in the bank fraud conspiracy, he and his co-conspirators obtained extensions of credit from federal insured financial institutions of $1,519,429.52 and attempted to obtain extensions of credit of $3,149,616.10. More than 10 financial institutions and individuals were victimized by this scheme.
From March, 2011 through in or around October 2013, James knew that electronic tax refunds were being deposited into the business bank accounts, and that since the business was fraudulent, no legitimate tax refunds would be due the business. He repeatedly withdrew these funds immediately after they were deposited. James and his co-conspirators obtained $389,592.05 in false claims for stolen identity tax refunds, and another $957,377.05 in false claims for tax refunds were submitted but not paid. The total loss foreseeable to James was between $550,000 and $1,500,000.
As part of his plea agreement, James has agreed to the entry of a restitution order for the full amount of the victims’ actual losses during the time James was participating in the scheme, currently computed to be approximately $1,909,021.57. That restitution shall be due and payable immediately upon sentencing.
Co-defendants LaKeisha Butler, age 33, of Columbia, Maryland; Kesa Baker, age 43, of Baltimore; Naimah Okail, age 35, of Baltimore; and Isaac Kusimo, age 30, of Takoma Park, Maryland have all pleaded guilty to their roles in the scheme and are awaiting sentencing. The remaining defendants are scheduled for trial on June 6, 2016.
James faces a maximum of 30 years in prison and a $1,000,000.00 fine for bank fraud conspiracy; 10 years in prison and a $250,000.00 fine for the false claims conspiracy; and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. Chief U.S. District Judge Catherine C. Blake scheduled his sentencing for August 2, 2016, at 9:00 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. Postal Inspection Service and IRS – CI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.
Latin Kings Gang Leader Sentenced to 70 Months in Prison for Conspiring to Steal $180,000 from IRSRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of ELISEO ORTIZ, 50, to 70 months in prison for conspiring to file false state and federal tax returns and claim tax refunds. Co-defendants STACEY JEAN BERGHAMMER, 34, who was sentenced yesterday to time served, and SHANNON LEE TROLLEN, 38, each pleaded guilty to one count of conspiracy to file false claims. ORTIZ, who pleaded guilty on September 18, 2015, to one count of conspiracy to file false claims, was sentenced today before U.S. District Judge Susan R. Nelson in St. Paul, Minn.
According to his guilty plea and documents filed in court, between 2008 and at least April 28, 2010, ORTIZ was incarcerated at Stillwater Correctional Facility, where he recruited and directed numerous co-conspirators to provide names and social security numbers to be used in preparing and filing the false tax returns. In addition, ORTIZ recruited help from outside the prison to execute the scheme, including help from co-defendants BERGHAMMER and TROLLEN. ORTIZ’ co-conspirators were asked to provide addresses for unincarcerated trusted associates who could transfer money from tax refunds to the defendants and other co-conspirators. ORTIZ provided the information he obtained from the co-conspirators to BERGHAMMER or TROLLEN, who would then complete and file the false tax returns that fraudulently claimed refunds to which the recruits were not entitled.
According to his guilty plea and documents filed in court, ORTIZ filed false income tax returns for tax years 2007, 2008 and 2009 by claiming false wages, withholdings, and other tax credits. ORTIZ and other co-conspirators obtained payments for their roles in the scheme in various ways. Payments were sometimes obtained through a direct deposit, debit cards or by having the tax refund check sent to an associate who would then cash the check and split the money between the co-conspirator, the defendants, and others.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division.
This case was prosecuted by Assistant U.S. Attorney Michael L. Cheever.
Defendant Information:
ELISEO ORTIZ, 50
Bartlett, Ill.
Convicted:
- Conspiracy to file false claims, 1 count
Sentenced:
- 70 months in prison
- Three years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Latest Phase of Large Ice Methamphetamine Prosecution ConcludesRead the Press Release
ABINGDON, VIRGINIA – The latest phase of an investigation into a major ice methamphetamine conspiracy that distributed large amounts of the drug into Virginia, Kentucky, and Tennessee concluded yesterday in District Court with the sentencing of the final defendant, United States Attorney John P. Fishwick Jr. announced today.
J.B. Buckner, 56, of Radford, Virginia, pled guilty in October 2015 to one count of conspiring to possess with the intent to distribute methamphetamine. Yesterday in District Court, Buckner was sentenced to 70 months in federal prison and ordered to forfeit $25,000.
“The ice methamphetamine this conspiracy dealt in is dangerously addictive,” United States Attorney John P. Fishwick Jr. said today. “These individuals ran a complex operation that brought drugs from Southwestern United States into Virginia, Kentucky, and Tennessee. These actions had a devastating effect on our community and, for that, these individuals have been justly held accountable.”
Buckner is the last of ten defendants convicted as a result of the latest phase of a long-running investigative operation headed by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and U.S. Drug Enforcement Administration, which has been executed in multiple phases. The operation has dismantled a methamphetamine distribution network which brought numerous pounds of “ice” methamphetamine into the area.
According to evidence presented at yesterday’s sentencing hearing by Special Assistant United States Attorney Kevin L. Jayne, this particular phase of the ice methamphetamine conspiracy operated in Virginia, Kentucky and Tennessee. From approximately 2013–2014, individuals were receiving ice methamphetamine from sources of supply located in the Southwestern United States. The individuals would typically transport this methamphetamine to Virginia, Kentucky, and Tennessee via interstate highways, coordinating among themselves to avoid law enforcement drug interdiction efforts along the way. Return payment to the sources of supply would occur by hand-to-hand cash transactions or electronic money transactions.
Ultimately the District Court sentenced nine defendants in this phase to terms of imprisonment. The District Court also ordered certain defendants to forfeit 25 illegal firearms, including assault-style rifles; $160,000 in proceeds from the crime and approximately 10 acres of real property in Abingdon, Virginia, which was used in commission of the crime.
The investigation of the case was conducted by the Bristol Office of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Bristol Office of the U.S. Drug Enforcement Administration, the Virginia State Police, the Sheriff’s Offices of Washington County, Russell County, Tazewell County, and Smyth County, the Commonwealth’s Attorney’s Offices of Russell County and Tazewell County and the police departments of Abingdon and Lebanon. Special Assistant United States Attorney Kevin L. Jayne prosecuted the case for the United States.
Las Cruces Residents Plead Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Two residents of Las Cruces, N.M., pleaded guilty today in federal court to methamphetamine trafficking charges.
David S. Thompson, 29, and Marlene C. Sandoval, 38, were arrested in Nov. 2015, on a criminal complaint charging them with methamphetamine trafficking charges on Oct. 16, 2015, in Doña Ana County, N.M. Thompson and Sandoval were arrested after law enforcement officers found crystal methamphetamine inside the vehicle Thompson and Sandoval were driving during a routine traffic stop. Thompson and Sandoval were subsequently indicted on Feb. 17, 2016, and charged with conspiracy and possession of methamphetamine with intent to distribute.
During today’s proceedings, Thompson and Sandoval each entered a guilty plea to a conspiracy to possess methamphetamine with intent to distribute charge. They admitted being pulled over for speeding on Oct. 16, 2015, by New Mexico Department of Transportation officers. After obtaining consent from Thompson and Sandoval to search their vehicle, the officers found 499 grams of methamphetamine in a shoe in the vehicle. Thompson and Sandoval also admitted that they intended to distribute the methamphetamine in Las Cruces.
At sentencing, Thompson and Sandoval each face a maximum penalty of 20 years in federal prison followed by not less than three years of supervised release. Both remain in custody pending sentencing hearings which have yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA, the New Mexico Department of Transportation Police, the Las Cruces Police Department and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force. Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Johnstown Woman will Spend 5 Years on Probation for Drug Trafficking ConspiracyRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to five years’ probation, the first year of which to be served as home confinement, on her conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Donna M. Hawk, 50, of Johnstown, Pa.
According to information presented to the court, from Jan. 31, 2013, to April 23, 2013, Hawk, along with others, conspired to distribute less than 28 grams of cocaine base, in the form commonly known as “crack.”
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Hawk.
Inmate at United States Penitentiary at Canaan Charged with Assault on Corrections OfficerRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a grand jury in Scranton has indicted a federal inmate at the United States Penitentiary at Canaan for assaulting a federal corrections officer.
According to United States Attorney Peter Smith, the indictment charges Orlando Garcia-Mata, age 24, formerly of Texas, with punching a corrections officer in the face on March 22, 2016.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Prosecution has been assigned to Assistant United States Attorney Robert J. O’Hara
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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.
In this case, the maximum penalty which can be imposed under federal law is 8 years of imprisonment, a term of supervised release following imprisonment, and a $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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Inmate at Federal Correctional Institute at Allenwood Charged with Assaults on Two Corrections OfficersRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a grand jury in Scranton has indicted a federal inmate at the Federal Correctional Institute at Allenwood for assaulting two federal corrections officers.
According to United States Attorney Peter J. Smith, the indictment charges Demetrius Catching, age 25, formerly of Lexington, Kentucky, with punching one corrections officer and kicking another corrections officer on March 7, 2016.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service
Prosecution has been assigned to Assistant United States Attorney Robert J. O’Hara
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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.
In this case, the maximum penalty which can be imposed under federal law is 8 years of imprisonment, a term of supervised release following imprisonment, and a $100,000 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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Hazard Doctor, his Wife and their Clinic Convicted in Massive Drug Trafficking and Health Care Fraud SchemeRead the Press Release
LONDON, Ky.—A federal jury in London has convicted a doctor, his wife and their clinic of drug trafficking, health care fraud and money laundering, for orchestrating a scheme in which they made millions of dollars by unlawfully prescribing large amounts of prescription pills to citizens of eastern Kentucky.
Dr. James "Ace" Chaney, 51, was convicted of conspiracy to commit drug trafficking, 62 counts of illegal distribution of controlled substances, 2 counts of maintaining a premise for drug distribution, conspiracy to commit money laundering, 20 counts of money laundering, conspiracy to commit health care fraud and 84 counts of health care fraud.
Lesa Chaney, 50, the President and CEO of Ace Clinique of Medicine, LLC, was convicted of conspiracy to commit drug trafficking, 2 counts of maintaining a premise for drug distribution, conspiracy to commit money laundering, 20 counts of money laundering, conspiracy to commit health care fraud and 84 counts of health care fraud.
Ace Clinique of Medicine, LLC, was found guilty on over 180 counts of drug trafficking, health care fraud and money laundering.
The jury rendered its verdict after 13 hours of deliberation, following seven weeks of trial.
From 2006 to 2014, James and Lesa Chaney owned and operated Ace Clinique of Medicine, LLC, in Hazard, Ky. The evidence established that Dr. Chaney pre-signed prescriptions for controlled substances, to be filled out by clinic staff while he was vacationing or otherwise not present at the clinic. The evidence also established that Dr. Chaney knowingly provided prescriptions for controlled substances to individuals who were diverting the pills for sale and to individuals that were abusing the drugs. Dr. Chaney also required all of his patients to undergo monthly urine drug screening to test for the presence of the drugs he prescribed, as well as illegal narcotics. When the results showed the patients were not taking the prescribed pills, or were taking illegal narcotics, Dr. Chaney directed his staff to alter the test results to falsely indicate an appropriate result. These fraudulent test results were then submitted to Medicare, Medicaid and private insurers for payment. From 2009 to 2011, they billed Medicare for more urine drug screen tests than any provider or laboratory in Kentucky.
The evidence at trial also showed that patients would frequently wait eight hours or longer, each month, to be seen by a health care provider at the clinic. The examinations would then typically be of short duration and the patient would receive a prescription for controlled substances. The Chaneys would nonetheless bill for an office visit that falsely indicated a thorough physical examination had occurred. The evidence further showed that the Chaneys billed Medicare for work Dr. Chaney allegedly did while he was vacationing outside of the United States. Dr. Chaney also wrote prescriptions for controlled substances to an employee of the clinic, which he then took for himself.
The Chaneys billed Medicare more than $9,500,000 and billed Medicaid more than $6,300,000 during the period of the conspiracy. The money the Chaney’s made from the scheme was used for personal purchases, including a private plane, houses, vehicles, travel and personal luxury items.
"The defendants in this case combined a massive illegal drug distribution scheme with a massive healthcare fraud scheme," said Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky. "The resulting criminal enterprise harmed countless Kentuckians, and sent the fraudulent bill to the American taxpayer. It is difficult to overestimate the importance of this victory in the effort to rid eastern Kentucky of this sort of criminal conduct, which has caused so much damage to our communities. Our trial team and our law enforcement partners at the FBI and the Kentucky State Police performed admirably in bringing these defendants to justice and they deserve our thanks."
"The devastation of patients’ lives to facilitate the Chaney’s’ lavish lifestyle caused great harm to the people of southeastern Kentucky," said Howard S. Marshall, Special Agent in Charge of the Louisville Division of the FBI. "The Federal Bureau of Investigation and its law enforcement partners will stay committed to the dismantlement of significant drug trafficking organizations in Perry County and the rest of Kentucky."
U.S. Attorney Harvey, Special Agent in Charge Marshall and Richard Sanders, Commissioner of the Kentucky State Police, jointly announced the verdict.
The investigation was conducted by the FBI and the Kentucky State Police.
Assistant U.S. Attorneys Roger West and Andrew Sparks prosecuted this case on behalf of the federal government.
The Chaneys are scheduled for sentencing on August 25, 2016, at 1:30 p.m. The most serious offenses carry a maximum penalty of 20 years in prison. The Court, however, will impose sentence after consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
Georgia Man Sentenced to 175 Months in Federal Prison for Wire Fraud, Money Laundering and Theft ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jorge Salazar, age 58, of Georgia was sentenced today to 175 months’ (14 years and six months) imprisonment by United States District Court Judge Sylvia H. Rambo in Harrisburg for wire fraud, money laundering and aggravated theft charges.
According to United States Attorney Peter Smith, the charges against Salazar were a result of a fraudulent investment scheme he carried out in Adams County, Pennsylvania from 2012 through 2014. As part of the scheme, Salazar falsely represented he was a lawyer and investor from Atlanta, Georgia. He also represented that investors could invest up to $49,999 through his company and that investors would receive a return of up to three times their investment within six months. Approximately, 19 people invested $360,000 with Salazar. Once he received the investors’ monies, Salazar fled to Kentucky where he was arrested.
The investigation revealed that Salazar spent a significant percentage of the fraud proceeds to purchase an RV and a home in Kentucky.
Salazar was indicted by a grand jury in Harrisburg in November 2014, as a result of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigations, and the Pennsylvania State Police. The case was prosecuted by Assistant United States Attorney Joseph J. Terz.
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Former Tyler Insurance Agent Sentenced to 36 Months in Prison for $5.4 Million Dollar “Ponzi” SchemeRead the Press Release
TYLER, Texas – A 64 year old former insurance agent was sentenced to serve 36 months in federal prison for wire fraud and money laundering announced U.S. Attorney John M. Bales today.
Robert Hahn, a former Tyler, Texas insurance agent entered a guilty plea on November 19, 2015 to charges of wire fraud and money laundering. At that hearing Hahn admitted that he started a fraudulent scheme, commonly known as a “Ponzi scheme” before January 2007 and he continued it until he was confronted by F.B.I. and I.R.S. agents on February 4, 2015. Hahn admitted he falsely represented to approximately 100 different individuals that he was spearheading fund raising for a group of doctors, in Tyler, Texas, who were raising capital for debt retirement, construction of, or improvements to, health care facilities, and medical equipment purchases. Hahn told potential “investors” that the group of doctors he represented would pay an annual interest rate of 20% on their loans or investments. Hahn then collected funds from the “investors” and deposited them into his insurance business or personal checking accounts. Hahn would periodically make “interest” payments, in cash, to investors, representing a 20% return on the fictitious loans or investments, utilizing funds he had derived from earlier investors. Upon request, Hahn would return principle loan or investment funds to the investors in the form of a check drawn on his insurance or personal checking accounts, using funds he had received from other investors. Hahn admitted that there never was a group of doctors raising capital. Hahn admitted he simply made up this story to obtain and maintain funds for his personal use.
As a result of the scheme, Hahn collected approximately $5,479,600.00 from ninety-four (94) individuals. In furtherance of the scheme, during the relevant time period, Hahn returned or distributed approximately $4,072,470.00, in proceeds from the fraud scheme to some of the individuals in the form of returned “principle” and “interest” or “earnings”. Thirty-one (31) of these individuals enjoyed a combined total, net gain of $1,407,130.00; while sixty-six (66) of them suffered a combined total net loss of $1,757,280.00.Hahn cooperated fully with investigators from the onset of the investigation and voluntarily surrendered all of his accounting records pertaining to the scheme. As part of his plea agreement with the government, Hahn agreed to surrender the net proceeds from the sale of his home and the sale of his insurance business to the court for restitution to his victims. In addition, since the investigation began in February, Hahn has deposited 20% of his monthly gross income into an account designated for victim restitution. At the time of sentencing the balance in that account had reached approximately $16,000.00. Hahn also agreed to assign the proceeds from the sale of 80,500 shares of stock in a privately owned corporation to the court for distribution to the victims; however, at this point in time there is no commercial market for those shares.
The government initiated collection proceedings against the fraud scheme proceeds paid to investors who profited from their “investments” with Hahn. At the time of sentencing, those proceedings had generated approximately $146,000.00 which will be deposited into an account designated for victim restitution.
This case was investigated by the Federal Bureau of Investigation, Tyler Office, the Internal Revenue Service, Criminal Investigations Division, the Texas State Securities Board, and prosecuted by Assistant U.S. Attorney Jim Noble.
Former Tax Preparer from Adrian, GA, Sentenced to 46 Months in Prison for Preparing False Tax ReturnsRead the Press Release
Statesboro, GA: Lakesia Mills, 35, of Adrian, Georgia, was sentenced last week by United States District Court Chief Judge Lisa Godbey Wood to 46 months in prison for making false statements on 784 amended tax returns.
Evidence presented at hearings in this case showed that Mills prepared amended tax returns for others that exploited the First Time Homebuyer’s Credit. Mills fraudulently claimed her clients qualified for the $8,000 credit, and then supported the false returns with phony bank statements, closing documents, and insurance records. The 784 amended returns prepared by Mills exposed the United States to a potential loss of $6,012,500, approximately $572,132 of which was distributed by the IRS before the scheme was detected.
United States Attorney Edward J. Tarver said, “This defendant stole hundreds of thousands of dollars from the U.S. Treasury, and would have stolen much more if not swiftly detected by the IRS. Her sentence should serve as a lesson to all who are tempted to follow her example, as our office will advocate a lengthy prison stay for anyone who lies on tax returns and defrauds our tax system.”
“Lakesia Mills did a disservice to legitimate tax preparers who comply with the tax laws of the Internal Revenue Service,” said Veronica Hyman-Pillot, Special Agent in Charge, Atlanta Field Office. “Mills not only violated the integrity of our tax system, but also placed an unfair burden on hardworking taxpayers. Stealing from the U.S. Treasury is no different from stealing from your neighbors, your friends and your own community. Today’s sentence should serve as a warning to other return preparers that are considering similar criminal activities.”
In addition to her prison sentence, Mills was ordered to pay restitution, as well as serve 12 months of supervised release after she is released from prison. Regarding the length of the prison sentence, Tarver noted that there is no parole in the federal system.
IRS Special Agent Joshua Graham conducted the investigation of Mills. Assistant United States Attorney Jennifer Solari prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Secretary of Kentucky’s Personnel Cabinet Pleads Guilty to Accepting KickbacksRead the Press Release
LEXINGTON, Ky.—Timothy M. Longmeyer, the former Secretary of the Kentucky Personnel Cabinet, admitted in federal court today that he solicited and accepted over $200,000 in kickbacks from a private consultant during his tenure.
Longmeyer, 48, pleaded guilty to bribery of a public official, before U.S. District Judge Karen Caldwell.
Longmeyer admitted that, while serving as Secretary of the Personnel Cabinet, he solicited and agreed to accept $212,500, in exchange for assistance in securing multi-million dollar contracts for a consultant. Over the course of the scheme, Longmeyer received $197,500 in cash and $6,000 in straw campaign contributions to various political campaigns, for a total of $203,500.
Longmeyer oversaw the Kentucky Employees’ Health Plan ("KEHP") and used his position to persuade insurance companies, who provided KEHP healthcare coverage, to hire the consultant to organize focus groups and telephone surveys. In return, Longmeyer accepted recurring payments from the consultant, including cash and straw contributions.
According to the plea agreement, Longmeyer agreed to accept $90,000 from the consultant in November 2014 and $100,000 from the consultant in December 2014. The consultant later used the proceeds from contracts with Humana, Inc., to make a series of payments to Longmeyer between November 2014 and June 2015, totaling $175,000 in cash and $6,000.00 in straw contributions.
In addition, in September 2015, Longmeyer agreed to accept approximately $22,500 from the consultant. The consultant used the proceeds from a contract with Anthem Blue Cross Blue Shield to make two cash payments to Longmeyer, totaling $22,500.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Howard Marshall, Special Agent in Charge, Federal Bureau of Investigation, jointly announced the guilty plea. Assistant U.S. Attorneys Andrew T. Boone and Kathryn M. Anderson are prosecuting the case on behalf of the federal government.
Longmeyer is scheduled to be sentenced on August 18, 2016 at 1:00 p.m. He faces up to 10 years in prison and a maximum fine of $250,000. However, any sentence following a conviction would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
Former Secretary of Kentucky’s Personnel Cabinet Pleads Guilty to Accepting KickbacksRead the Press Release
Timothy M. Longmeyer, the former Secretary of the Kentucky Personnel Cabinet, admitted in federal court today that he solicited and accepted over $200,000 in kickbacks from a private consultant during his tenure.
Longmeyer, 48, pleaded guilty to bribery of a public official, before U.S. District Judge Karen Caldwell for the Eastern District of Kentucky.
Longmeyer admitted that, while serving as Secretary of the Personnel Cabinet, he solicited and agreed to accept $212,500, in exchange for assistance in securing multi-million dollar contracts for a consultant. Over the course of the scheme, Longmeyer received $197,500 in cash and $6,000 in straw campaign contributions to various political campaigns, for a total of $203,500.
Longmeyer oversaw the Kentucky Employees’ Health Plan (KEHP) and used his position to persuade insurance companies, who provided KEHP healthcare coverage, to hire the consultant to organize focus groups and telephone surveys. In return, Longmeyer accepted recurring payments from the consultant, including cash and straw contributions.
According to the plea agreement, Longmeyer agreed to accept $90,000 from the consultant in November 2014 and $100,000 from the consultant in December 2014. The consultant later used the proceeds from contracts with Humana Inc., to make a series of payments to Longmeyer between November 2014 and June 2015, totaling $175,000 in cash and $6,000 in straw contributions.
In addition, in September 2015, Longmeyer agreed to accept approximately $22,500 from the consultant. The consultant used the proceeds from a contract with Anthem Blue Cross Blue Shield to make two cash payments to Longmeyer, totaling $22,500.
U.S. Attorney Kerry B. Harvey for the Eastern District of Kentucky, and Special Agent in Charge Howard Marshall for the Federal Bureau of Investigation, jointly announced the guilty plea. Assistant U.S. Attorneys Andrew T. Boone and Kathryn M. Anderson are prosecuting the case on behalf of the federal government.
Longmeyer is scheduled to be sentenced on Aug. 18. He faces up to 10 years in prison and a maximum fine of $250,000. However, any sentence following a conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
Former Office Manager Pleads Guilty to Embezzling from Drilling and Blasting CompanyRead the Press Release
TULSA, Okla.—A former office manager with Dykon Explosive Demolition Company pleaded guilty today to embezzling from the Tulsa-based precision drilling and blasting contractor who estimated their total losses to be $884,890.08, announced United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
Monica Lynn Miller, 49, of Tulsa, was responsible for employee payroll and paying vendors. She was charged by an information on March 17, 2016. Sentencing is scheduled on July 27, 2016.
According to the plea agreement, Miller admitted that, from 2009 to March 2015, she devised a scheme to defraud Dykon Explosive Demolition Company. She admitted to using a company credit card for personal benefit, sent unauthorized wire transfers to her personal bank account, and falsified company bank statements and “QuickBook” entries to hide her fraudulent theft. Furthermore, Miller admitted that in March 2014, she fraudulently wired $3,450 from the company’s bank account to her personal bank account.
The maximum statutory penalty is 20 years in prison and a fine of $250,000. In addition, Miller faces a criminal forfeiture money judgment representing proceeds obtained as a result of her wire fraud scheme.
The case is being investigated by the Tulsa Police Department. Assistant U.S. Attorneys Trent Shores and Catherine Depew are prosecuting the case.
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Former Mohegan Sun Vice President and Associate Indicted for Money Laundering Conspiracy and Other Federal ChargesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Vice President of Player Development for the Mohegan Sun Casino at Pocono Downs and an associate have been charged with multiple federal crimes in a 21count indictment returned by a federal grand jury in Scranton.
According to United States Attorney Peter Smith, Robert Pellegrini, age 50, of Fairview Township, and Mark Heltzel, age 51, of Dallas, are charged with conspiracy to commit money laundering, multiple counts of access device fraud and aggravated identity theft.
The grand jury alleged that Pellegrini, Heltzel, and an unindicted coconspirator defrauded the Mohegan Sun Casino at Pocono Downs by engaging in a scheme involving the use of stolen names in PINs (personal identification numbers) that were tied to players’ loyalty club cards.
It is alleged that, with the assistance of an unindicted coconspirator, Pellegrini used the stolen information to create duplicate player club cards, which he then loaded with “free play” credits. The fraudulently created cards were then allegedly given to Heltzel by Pellegrini for Heltzel to gamble with, primarily at poker slot machines. The indictment alleges that the scheme began in May 2014 and continued to April 2015, allegedly netting the defendants winnings in the approximate amount of $422,147.
The charges stem from an investigation by the Internal Revenue Service Investigations, the Pennsylvania State Police and the cooperation and assistance of the Luzerne County District Attorney’s Office. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years’ imprisonment and a $500,000 fine. The government is also seeking forfeiture of the proceeds of the alleged criminal acts. Each crime also carries a term of supervised release following imprisonment. 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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Former Greene County Sheriff's Deputy Pleads Guilty to Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Greene County, Mo., Deputy Sheriff has pleaded guilty in federal court to receiving and distributing child pornography.
Juan T. Jones, 28, of Springfield, Mo., pleaded guilty before U.S. Magistrate Judge David P. Rush on Monday, April 18, 2016, to the charge contained in a Jan. 19, 2016, federal indictment. Jones was a Greene County Deputy Sheriff at the time of the offense.
An officer with the Southwest Missouri Cyber Crimes Task Force Officer opened the investigation on Sept. 25, 2015, after a CyberTip from Dropbox to the National Center for Missing and Exploited Children. Dropbox had discovered many video and image files that contained child pornography, which had been uploaded by Jones.
Investigators executed a search warrant at Jones’s residence on Jan. 6, 2016. While the warrant was being executed, they contacted Jones at his place of employment, the Greene County Sheriff’s Department. Jones admitted to investigators that he had looked at child pornography for as long as 10 years. Jones also admitted that he had exchanged child pornography images on Tumblr. Investigators discovered numerous images of child pornography on Jones’s cell phone.
Under federal statutes, Jones is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crime Task Force and the FBI.
Former East Cleveland detective sentenced to nearly six years in prison, last of three corrupt officers sent to prisonRead the Press Release
A former East Cleveland police detective was sentenced to nearly six years in prison for his role in a conspiracy in which he kept thousands of dollars from alleged drug dealers, much of which was seized through illegal searches and fabricated reports, law enforcement officials said.
Antonio Malone, 34, of Cleveland, was sentenced to 71 months in prison and ordered to pay more than $23,000 in restitution. He previously pleaded guilty to one count of conspiracy against rights and one count of Hobbs Act conspiracy.
Malone is the last of three former East Cleveland police officers sent to prison for their roles in the conspiracy.
Torris Moore, of South Euclid, was sentenced to nine years in prison after pleading guilty late last year to one count each of conspiracy against rights, Hobbs Act conspiracy and false statements to law enforcement and two counts of theft concerning programs receiving federal funds.
Eric Jones, of Cleveland Heights, was sentenced to nearly four years in prison after pleading guilty to one count of conspiracy against rights and one count of Hobbs Act conspiracy.
“These three officers are a disgrace to the badge they wore and the community they swore to protect,” said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio. “They personally profited from the drug trade that has ravaged East Cleveland. They deserve to be sent to prison for their extensive crimes, which undercut the credibility of law enforcement and the court system.”
“These officers acted like cunning criminals rather than honorable public servants who swore to protect and serve,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “They are now all behind bars for their reprehensible, unlawful conduct.”
“When detectives target and rob a drug dealer and then create false evidence to cover up their own crimes, those officers are Benedict Arnolds,” Cuyahoga County Prosecutor Timothy J. McGinty said. “They have betrayed all the dedicated law enforcement officers, alive and dead, who gave their lives upholding the law and protecting our communities. So this officer now deserves to switch places with the drug dealer whose conviction we had to vacate and who has been released from prison.”
Moore was a sergeant at the East Cleveland Police Department, where she supervised the Street Crimes Unit. Malone and Jones were detectives assigned to the Street Crimes Unit. The defendants were familiar with several drug traffickers, according to court documents.
From 2014 through June 2014, they conspired to unlawfully enter premises and exceed the scope of lawful entry, thereafter conducting unlawful searches and seizures, used their power to seize money and property for themselves under the guise of legitimate search warrants, and created and approved false reports, affidavits and other documents to conceal their illegal searches and seizures, according to court documents.
These illegal searches took place in East Cleveland but also outside city limits, in various locations throughout Greater Cleveland. The conspirators placed false and inaccurate information in police reports. This false information was used to obtain search warrants, according to court documents.
The conspirators seized money and property during these searches, and diverted some of the seized money and property for their own use. Malone provided false information to the Cuyahoga County Prosecutor’s Office about certain investigative techniques in order to conceal their illegal conduct, including attributing information to a confidential informant that did not exist, according to court documents.
For example, on Sept. 10, 2012, Jones presented an affidavit to an East Cleveland Municipal Judge, which the conspirators knew contained false and misleading statements. The judge, unaware of false information, issued a search warrant for a home on Sheldon Avenue. Moore, Malone, Jones and another officer then executed the search warrant and seized $20,000. On Sept. 11, Moore, Malone and Jones met at a park in East Cleveland and divided a portion of the $20,000, which each officer receiving between $2,000 and $3,000. Jones then authored a report reflecting that they had seized a total of $11,173, according to court documents.
On June 20, 2013, SCU officers, including Moore, searched a home on East 85th Street. Malone, without a search warrant, forced his way into a room that was secured by a padlock and seized approximately $100,000 in cash. Moore, Malone and Jones removed a portion of the cash before causing the remainder to be secured in the East Cleveland Police Department’s evidence room. Later that day, the three officers met at an East Cleveland park and divided the money, with each receiving about $10,000. Malone later wrote the search resulted in the recovery of $74,670, according to court documents.
On June 19, 2014, Malone encountered a parked car driven by a known drug trafficker, identified in the indictment only as M.M. Malone arrested M.M., who told the officer he had approximately $11,000 or $12,000 in the car’s glove box. Malone agreed to release M.M. but insisted on towing the car. Malone said: “I looked out for you. You gotta look out for me,” before instructing M.M. to get the cash from the glove box but to leave behind $3,000. Malone removed $3,000 from M.M.’s car but did not list the money when he completed the vehicle’s inventory form, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Edward F. Feran following an investigation by the Federal Bureau of Investigation – Cleveland Division, with assistance from the East Cleveland Police Department and Cuyahoga County Prosecutor’s Office.
Former Day Care Operator Pleads Guilty to Tax FraudRead the Press Release
WASHINGTON - Ruth G. Leach, 53, who owned and operated a day care center in the District of Columbia, pled guilty today to a federal tax evasion charge for failing to turn over more than $260,000 in payroll taxes that were withheld from her employees, announced U.S. Attorney Channing D. Phillips and Special Agent in Charge Thomas Jankowski of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Leach, of Upper Marlboro, Md., pled guilty in the U.S. District Court for the District of Columbia to a charge of willfully failing to pay over employment taxes. The charge, a felony, carries a statutory maximum of five years in prison and potential financial penalties. Under federal sentencing guidelines, Leach could face a likely range of 18 to 24 months in prison and a fine of up to $75,000. She also must pay $263,153 in restitution to the IRS. The Honorable Senior Judge Royce C. Lamberth scheduled sentencing for June 28, 2016.
According to the government’s evidence, Leach owned and operated a business called Little Angels Child Care Center, Inc., which provided child care services for toddlers and young children. From 2006 through 2010, she ran the day-to-day operations of the business, which at various times employed several teachers and staff. She paid wages to her employees and deducted payroll taxes, including federal income, Social Security, and Medicare taxes.
For the first quarter ending March 2006 through the fourth quarter ending December 2010, Leach willfully failed to truthfully account for the payroll taxes withheld from the wages of Little Angels Child Care Center employees. She failed to pay over a total of $263,153 in payroll taxes, instead keeping and using the funds for her personal expenses. She did not report this money in her own personal income taxes.
In announcing the plea, U.S. Attorney Phillips and Special Agent in Charge Jankowski commended the work of those who investigated the case from IRS-Criminal Investigation. They also acknowledged the assistance of Paralegal Specialist Kristy Penny of the U.S. Attorney’s Office for the District of Columbia. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Lionel André and Derrick Williams, who prosecuted the case.
Former Barrio Azteca Member Sentenced to 200 Months in Federal Prison for Distribution of Heroin Resulting in DeathRead the Press Release
This morning, 32-year-old former Barrio Azteca member Danny Ortiz of El Paso was sentenced to 200 months in federal prison for distribution of heroin resulting in death announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division and Socorro Police Chief Carlos Maldonado.
In addition to the prison term, Senior United States District Judge David Briones ordered that Ortiz be placed on supervised release for six years after completing his prison term.
In April 17, 2015, Socorro Police officers discovered the body of a suspected heroin overdose victim, 35–year-old Kellie Kondrat. The resulting investigation revealed that the defendant supplied the heroin which caused her death.
On February 10, 2016, Ortiz pleaded guilty to one count of conspiracy to possess with intent to distribute over 200 grams of heroin. By pleading guilty, Ortiz admitted that on several occasions between March 5, 2015, and May 19, 2015, he delivered heroin to the deceased as well as other individuals.
Ortiz has remained in federal custody since his arrest by HSI agents on May 19, 2015.
“HSI along with our local law enforcement partners will continue to aggressively investigate those who engagein drug trafficking, and stop them from pumping poison into our communities,” said Waldemar Rodriguez. “This lengthy sentence sends out a clear message to transnational criminal organizations that operate in the El Paso area - the bigger the crime, the longer the time.”
This case was investigated by the Immigration & Customs Enforcement (ICE) Homeland Security Investigations (HSI) together with the Socorro Police Department.
Fifth Defendant Pleads Guilty to Armed Robbery ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to his role in a conspiracy to commit several armed robberies at restaurants in the metropolitan area.
William H. Parker III, 21, of Kansas City, pleaded guilty before U.S. District Judge Beth Phillips to participating in the conspiracy to commit armed robberies, to one count of armed robbery and to one count of using a firearm during a crime of violence.
Four co-defendants have also pleaded guilty to their roles in the armed robbery conspiracy and to related charges. Mikah M. Labayen, 20, of Blue Springs, was sentenced to six years in federal prison without parole. Renargo L. Martin, 46, of Kansas City, Mo., was sentenced to five years in federal prison without parole. Jeremy Hunter, also known as “Heat,” 26, of Kansas City, was sentenced to 10 years in federal prison without parole. Isiah G. Etienne, 21, of Blue Springs, is scheduled to be sentenced on May 10, 2016.
Parker, Labayen, Martin, Hunter and Etienne each admitted that he participated in a conspiracy to rob several fast food restaurants in the Kansas City area in the fall of 2014. Parker, Labayen and Etienne were employed at a Chipotle restaurant in Blue Springs. Using their knowledge of procedures commonly used by such establishments, conspirators would wait until the end of a business day, and then rob restaurants by waiting until an employee opened a door to take trash out of the premises. They rushed the door to gain access, and then forced the manager or shift supervisor to give them access to the restaurant’s safe. Conspirators threatened restaurant employees with an assault rifle in order to force their cooperation.
Conspirators robbed a Chipotle restaurant in Lee’s Summit, Mo., on Nov. 3, 2014, taking $1,600; a Burger King restaurant in Independence, Mo., on Nov. 10, 2014, taking $914 and again on Nov. 30, 2014, taking $565; and a Chipotle restaurant in Blue Springs on Nov. 16, 2014, taking $6,800.
Following these robberies, Parker, Etienne and Labayen were captured after an attempted robbery of a motel.
Under federal statutes, Parker is subject to a sentence of up to 40 years in federal prison without parole, plus a consecutive sentence of at least seven years in federal prison without parole for the firearm offense. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Edwards. It was investigated by the Kansas City, Mo., Police Department, the Lee’s Summit, Mo., Police Department, the Blue Springs, Mo., Police Department and the FBI.