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27 May 2016
Madison Indiana man charged with possession of pipe bombs and firearmsRead the Press Release
Evansville – United States Attorney Josh Minkler today announced federal charges against a Madison, Indiana, man for his role in two recent incidents in Madison, Indiana. David Theiring, 37, was charged with two counts of possession of an unregistered destructive device (a pipe bomb) and one count of possession of firearms by a convicted felon.
“Striking fear into the heart of a community will not be tolerated,” said Minkler. “Those who use violence directed at the criminal justice system or any of its members will be held strictly accountable.”
On March 6, 2016, a pipe bomb was detonated on the sidewalk in front of the Madison Police Department. A second pipe bomb was detonated just outside the residence of a Madison County judge on March 16, 2016. No one was injured in either incident.
Federal, state, and local law enforcement officials executed a search warrant at Theiring’s residence on April 1, 2016, and found bomb-making materials, a .22 caliber rifle, and a 12 gauge shotgun. Theiring’s possession of the destructive devices on the dates was unlawful; a search of the records of the National Firearms Registration and Transfer Record failed to reveal any destructive devices registered Theiring. Moreover, Theiring, who has two prior felony convictions, could not legally possess a firearm.
This case was the result of an investigation by the Indiana State Police, the Madison City Police, the Jefferson County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“ATF is committed to apprehending violent offenders and keeping the citizens of Indiana safe as we continue to work collaborative investigations with our state and local partners,” said ATF Group Supervisor Charley A. Scarber.
According to Assistant U.S. Attorney Lauren M. Wheatley, who is prosecuting the case for the government, Theiring faces a maximum sentence of 10 years in prison and a $250,000 fine for each count. An initial hearing will be held in New Albany before a U.S. Magistrate Judge.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Lincoln Man Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Brandon L. Bjorkman, 39, of Lincoln, Nebraska, was sentenced today in Lincoln, Nebraska, to 41 months in prison by United States District Judge John M. Gerrard, for possession of child pornography. After his release from prison, Bjorkman will also serve five years of supervised release and be required to register as a sex offender.
On May 25th, 2015, investigators with the Lincoln Police Department were investigating computers sharing child pornography files via the internet. On that date, officers identified an IP address as having files available for sharing. Officers were able to download files from a computer at that IP address. A subpoena to Time Warner/Roadrunner regarding the IP address indicated the IP address was registered to Bjorkman at an address later determined to be his residence.
In June of 2015, a search warrant was executed at Bjorkman’s residence and a desktop computer was seized. Investigators previewed the computer and located files depicting sexually explicit conduct involving female children under the age of 18. Investigators interviewed Bjorkman. Bjorkman admitted that he used the internet to download the images and videos. Investigators later found thousands of images and videos of minors engaged in sexually explicit conduct as defined by Federal law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Lincoln Police Department.
Lincoln Man Sentenced for Methamphetamine Conspiracy and Possession of Short ShotgunRead the Press Release
United States Attorney Deborah R. Gilg announced that on May 27, 2016, Stephan Michael Maynard, 26, of Lincoln, was sentenced to eleven years and three months (135 months) in prison for his role in a conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine in the Lincoln area between January of 2013 and September of 2015. Information provided to law enforcement indicated that Schulte was responsible for the distribution of at least 1.5 kilograms (approximately three pounds) of methamphetamine during that time-period. Maynard also was sentenced to ten years (120 months) in prison for possession of a short shotgun in furtherance of the methamphetamine conspiracy. That 10-year sentence will be served consecutively to the sentence on the conspiracy charge. Following the prison terms, Schulte will serve five years on supervised release.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lemoore Man Convicted of Receipt and Distribution of Child Pornography After Four-Day Jury TrialRead the Press Release
FRESNO, Calif. — After a four–day trial, a federal jury found Robert Wallace Smith, 37, of Lemoore, guilty today of one count of receipt and distribution of child pornography, Acting U.S. Attorney Phillip A. Talbert announced. The trial was held before U.S. District Judge Dale A. Drozd.
According to evidence presented at trial, Smith’s laptop computer, which was seized pursuant to a federal search warrant on December 23, 2011, contained a collection of 388 videos and pictures of children being sexually abused.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorneys Megan A. S. Richards and John R. Edwards are prosecuting the case.
Smith was remanded into custody after the jury reached its verdict.
Smith is scheduled to be sentenced by Judge Drozd on September 12, 2016. Smith faces a mandatory minimum statutory penalty of five years in prison, a maximum statutory penalty of 20 years in prison, and a $100,000 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.
This case is brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about internet safety education.
Lawrence Police Officer Arrested on Attempted Extortion ChargesRead the Press Release
Boston – A 16-year veteran officer of the Lawrence Police Department was arrested last night in connection with attempting to use his position as a police officer to extort cocaine from a drug trafficker.
John R. Desantis, Jr., 44, of Methuen, was charged in a complaint with unlawfully obtaining property by extortion under color of official right and threatened force and fear. Desantis last worked for Lawrence Police Department in February 2015 and has been on medical leave. Desantis was detained pending a detention hearing scheduled for May 31, 2016.
According to the complaint, Desantis had been purchasing small amounts of cocaine once or twice a week from the drug trafficker for 10-12 months without identifying himself as a police officer. On May 16, 2016, during a drug transaction at his home, Desantis displayed his gun and badge, seized the cocaine and threatened to arrest the drug trafficker if he did not continue to supply him with drugs. Desantis thereafter allegedly continued to communicate with the drug trafficker through text messages, telling him, “you will not be arrested at all if you do as I tell you to.”
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Lawrence Police Chief James Fitzpatrick, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney S. Theodore Merritt of Ortiz’s Public Corruption Unit.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
KC Man Sentenced to 14 Years for Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man whose computer had been seized in a separate and unrelated state investigation, has been sentenced in federal court for obtaining another computer and attempting to distribute child pornography over the Internet.
Justin K. Eaton, 33, of Kansas City-North, was sentenced by U.S. District Judge Roseann Ketchmark on Thursday, May 26, 2016, to 14 years in federal prison without parole.
On Nov. 23, 2015, Eaton pleaded guilty to attempting to distribute child pornography over the Internet. According to court documents, the file to which Eaton pleaded guilty to distributing was particularly violent in that it depicted an adult male attempting to engage in illicit sex with a toddler, who can be heard crying.
On Oct. 8, 2012, an FBI agent identified Eaton’s computer as sharing images of child pornography over a peer-to-peer file-sharing network. The agent downloaded three video files and five images of child pornography from Eaton’s computer.
Approximately six months earlier, in February 2012, law enforcement officers in Clay County, Mo., had seized Eaton’s computer in an unrelated state child pornography case. Eaton bought a new computer about a week later and continued to download and share child pornography, which resulted in the federal investigation and grand jury indictment.
Eaton was arrested on the state charges on Oct. 12, 2012, and was released on bond. On Oct. 26, 2012, the FBI executed a search warrant at Eaton’s residence and seized electronic media that contained more than 150 images of child pornography. Eaton must forfeit to the government a laptop computer, a computer hard drive and a micro SD card, all of which were used to commit the offense.
Eaton pleaded guilty to two counts of possessing child pornography in the Clay County case on Aug. 17, 2013, and was sentenced to eight years. Eaton spent 120 days in the Sexual Offender Assessment Unit in the Missouri Department of Corrections and was released to probation.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jury Convicts Omaha Woman for Sioux City Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine and possessed with intent to distribute methamphetamine was convicted by a jury May 26, 2016, after a two-day trial in federal court in Sioux City.
Elizabeth Lopez, 29, from Omaha, Nebraska, was convicted of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. The verdict was returned following about two hours of jury deliberations.
The evidence at trial showed that Lopez conspired to distribute 50 grams or more of actual (pure) methamphetamine from 2015 through August 2015 in the Sioux City, Iowa area. The evidence also showed that on August 4, 2015, Lopez had travelled from Omaha, NE to Sioux City, IA to distribute 5 grams or more of actual (pure) methamphetamine. Lopez had hidden the methamphetamine in her bra.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Lopez was taken into custody by the United States Marshal after the verdict was returned and will remain in custody pending sentencing. Lopez Name faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, $200 in special assessments, and five years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-4051. Follow us on Twitter @USAO_NDIA.
Jury Convicts Georgia Woman of Laundering and Structuring More Than $200,000 for California Drug Trafficking OrganizationRead the Press Release
FRESNO, Calif. — After a three day trial, Ashley Starling Thomas, 29, of Atlanta, Georgia, was convicted today by a federal jury of conspiring to launder money, conspiring to structure cash transactions, five counts of money laundering, and four counts of structuring cash transactions, Acting United States Attorney Phillip A. Talbert announced.
According to the evidence presented at trial, Thomas moved more than $200,000 in drug money through her bank accounts in a 22-day period in the summer of 2013. Thomas, who resided in Houston, Texas at the time, flew to Northern California on airline tickets paid for by a drug trafficking organization and made cash withdrawals of drug money from her bank accounts at dozens of bank branches in Sacramento, Eureka, and San Francisco. Thomas also traveled to Fresno where the drug trafficking organization was located. All of the cash withdrawals made by Thomas were in amounts less than $10,000, for the purpose of preventing her banks from filing Currency Transaction Reports on her cash withdrawals.
Following her conviction, U.S. District Judge Lawrence J. O’Neill ordered Thomas remanded into custody.
This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service- Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations in the U.S. by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorneys Grant B. Rabenn and Vincente A. Tennerelli are prosecuting the case.
Thomas is scheduled to be sentenced by Judge O’Neill on August 29, 2015. The maximum statutory penalty for money laundering conspiracy and money laundering is 20 years in prison and a $500,000 fine (or twice the value of the involved property). The maximum statutory penalty for structuring is 10 years in prison and a $500,000 fine. The maximum statutory penalty for structuring conspiracy is 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.
Husband and Wife Arrested and Charged with Ponzi Scheme in Relation to Hedge Fund Investments in Foreign CurrenciesRead the Press Release
NEWARK, N.J. – The owners and operators of a purported hedge fund will appear in court today on charges that they defrauded more than two dozen investors by making extraordinary guarantees about investment returns and then used the money for extravagant purchases and to pay off other victims, U.S. Attorney Paul J. Fishman announced.
Alcibiades Cifuentes, 33, and his wife, Jennifer Wee Cifuentes, 35, both of West New York, New Jersey, were arrested by U.S. Postal Inspectors and criminal investigators with the U.S. Attorney’s office and charged by complaint with commodities fraud and mail fraud. They are scheduled to appear this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to the criminal complaint:
Alicbiades and Jennifer Wee Cifuentes allegedly engaged in an investment fraud scheme from 2012 through March 2015. They fraudulently induced victims to invest in the foreign currency and commodity markets through Cifuentes Fund Management (CFM), their hedge fund that purportedly invested in foreign currencies, and then almost immediately spent those investment funds on personal items, such as an Audi R8 and jewelry. The couple would then pay back a portion of the victims’ money with money received from newly duped victims. They allegedly defrauded approximately 25 victims of approximately $590,000.
The count of mail fraud with which the defendants are each charged carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss caused by the scheme. The count of commodities fraud carries a maximum potential penalty of 10 years in prison and a fine of $1 million, or twice the gross gain or loss.
U.S. Attorney Fishman credited inspectors of the U.S. Postal Inspection Services under the direction of Acting Inspector in Charge Cynthia Shoffner, and criminal investigators with the U.S. Attorney’s Office, for the investigation leading to the arrests. He also thanked the N.J. Bureau of Securities in the State Attorney General’s Division of Consumer Affairs, under the direction of Acting Attorney General Robert Lougy and Bureau Chief Laura H. Posner, as well as the U.S. Commodity Futures Trading Commission’s Division of Enforcement, under the direction of Director Aitan Goelman, for their respective roles in the investigation.
The government is represented by Assistant U.S. Attorney Paul Murphy, Chief of the U.S. Attorney’s Office’s Economic Crimes Unit.
Georgia Man Arrested and Charged with Attempted Online Enticement of A Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Jeremy Lee Hughes (41, Brunswick, GA) has been arrested and charged by criminal complaint with using the Internet to attempt to entice a person he believed to be a minor to engage in sexual activity. He faces a mandatory minimum penalty of 10 years, up to life, in federal prison. Hughes is currently in custody on related state charges.
According to the complaint, between April 1 and April 6, 2016, Hughes engaged in a series of online conversations with a person he believed to be a 14-year old girl. This "child" was actually an undercover officer from the St. Johns County Sheriff’s Office. During the conversations, Hughes described various types of sexual activity to the “child” and indicated his desire and intent to meet the “child” for sex at her residence. On April 6, 2016, Hughes drove from Jacksonville to a location in St. Johns to meet the “child” for sex and was arrested. During an interview, Hughes acknowledged texting with the “child” about engaging in graphic sexual acts.
According to the complaint, Hughes has outstanding arrest warrants for charges of aggravated child molestation and incest in Georgia.
This case was investigated by the St. Johns County Sheriff’s Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Belleville Doctor's Office Manager Pleads Guilty to FraudRead the Press Release
Jerry L. Akin, 60, formerly from Belleville, Illinois, entered pleas of guilty to two counts of wire fraud involving a scheme to embezzle funds from a local doctor's office on May 26, 2016, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Akin admitted as part of the plea that he charged personal purchases to the company's credit card that included Cardinal baseball season tickets, concert tickets, medical bills and personal travel expenses. The indictment further alleges that Akin paid personal credit card bills using the business checking account and that he attempted to conceal the payments by altering the payee of the checks in the business' QuickBooks accounting software. At sentencing, Akin faces a prison sentence of up to 40 years, a fine of up to $500,000, and up to 3 years supervised release with mandatory restitution. Sentencing is scheduled for August 26, 2016
The prosecution is the result of an investigation by the Federal Bureau of Investigation, with the assistance of the doctor's office. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Final Man Handed Significant Sentence in Robbery ConspiracyRead the Press Release
HOUSTON – The final member of a crew responsible for more than 30 armed robberies throughout Houston is now headed to federal prison for nearly 48 years, announced U.S. Attorney Kenneth Magidson. Rodney Ford, 19, of Houston, pleaded guilty Nov. 4, 2015, to conspiracy to interfere with commerce by robbery and two counts each of brandishing a firearm during and in relation to a crime of violence.
Today, U.S. District Judge David Hittner handed Ford 188 months for the robbery conspiracy in addition to 84 and 300 months for the first and second firearm charges which must be served consecutively to each other and to the underlying conspiracy. The total 572-month sentence will be immediately followed by five years of supervised release.
Earlier this month, Ford’s co-conspirators Jerrol Bluford, 22, Calvin Smith, 20, and Jamone Jones, 21, all of Houston, received sentences of 41-49 years in federal prison. Jones received 588 months, while Bluford and Smith were ordered to serve total sentences of 553 and 492 months, respectively.
Between Jan. 9, 2015, and Jan. 25, 2015, the four men committed approximately 31 armed robberies of a variety of establishments, including restaurants, stores and phone companies. Each robbery was a take-over style robbery during which a member of the robbery crew brandished a firearm and demanded money from employees at gunpoint, taking cash from the cash registers and safes through threat of force. On multiple occasions, the crew members sole merchandise such as cellular phones from the business and cash from the customers who were present during the robberies. Some of the robberies were even committed in the presence of children. In one instance, the robbery crew attempted to steal the store owner’s vehicle.
All of the defendants have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
These charges arose from an investigation conducted by the FBI Violent Crime Task Force, Harris County Sheriff’s Office Robbery Division and Houston Police Department North Robbery Division. Assistant U.S. Attorney Julie Searle is prosecuting the case.
Federal Jury Finds North Side Man Guilty in Armed Robbery of Beaver Falls BankRead the Press Release
PITTSBURGH - After deliberating just under two hours, a federal jury of nine men and three women found Derrick Grant guilty of three crimes on May 27, 2016: bank robbery, armed bank robbery, and using and carrying a firearm during and in relation to a crime of violence, United States Attorney David J. Hickton announced today.
Derrick Grant, 27, formerly of Pittsburgh, PA was tried before Senior United States District Judge Donetta W. Ambrose in Pittsburgh, Pennsylvania.
According to Assistant United States Attorney Barbara K. Doolittle, who prosecuted the case, the evidence presented at trial established that on October 9, 2015, Derrick Grant, robbed the First National Bank in Beaver Falls. Grant, armed with a firearm, entered the bank and stole a total of $5,523 from three tellers.
Judge Ambrose scheduled sentencing for Sept. 27, 2016 at 11 a.m. The law provides for a total sentence of not less than 7 years and up to life in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation, the Ross Township Police Department and the Beaver Falls Police Department conducted the investigation that led to the prosecution of Derrick Grant.
Elk Grove Man Sentenced to 11 Years in Prison for Distribution of Prescription Pills and HeroinRead the Press Release
SACRAMENTO, Calif. — Michael Deshone Mathews, 42, of Elk Grove, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 11 years in prison for conspiracy to distribute oxycodone and possession with intent to distribute heroin, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, law enforcement began investigating reports in 2014 that Mathews was purchasing prescription medications from individuals in the Sacramento area. At the same time, investigators learned that Mathews was receiving cash deposits into various bank accounts from another state.
The investigation revealed that Mathews was meeting individuals with apparently legitimate prescriptions and paying those individuals in exchange for pills obtained from pharmacies. Mathews would then transport the pills to Washington state and receive payment for their resale through bank deposits.
When law enforcement officers searched Mathew’s home, vehicle, and storage locker, they found large quantities of methamphetamine, heroin, and prescription medications. Agents also found a large number of firearms and body armor.
This case was the product of an investigation by the Drug Enforcement Administration, the United States Department of Health and Human Services, the California Highway Patrol, the Sacramento County Probation Department, the Nevada County Sheriff’s Department, the United States Marshals Service, the California Bureau of Medi-Cal Fraud and Elder Abuse, the Sacramento Police Department, and the Elk Grove Police Department. Assistant United States Attorney Paul Hemesath prosecuted the case.
Edwardsville Woman Sentenced to 6 Months’ Home Confinement and 5 Years’ Probation for Structuring Currency TransactionsRead the Press Release
An Edwardsville woman, after pleading guilty to Structuring Currency Transactions to Avoid a Currency Transaction Report, was sentenced to six months’ home confinement and five years’ probation today, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Son Chong Fulton, 57, of Edwardsville, Illinois, received the sentence for structuring currency deposits to avoid IRS reporting requirements. The judge also ordered Fulton to forfeit $191,800, and ordered Fulton to pay a fine of $34,185 and a special assessment of $100. The charge relates to sixty-four currency deposits that Fulton made into a bank account between January 22, 2014, and August 11, 2015. Under federal law, financial institutions are required to report to the IRS any currency transaction, such as deposits, exceeding $10,000. It is federal crime to structure financial transactions in such a way as to avoid this reporting requirement. Documents filed with the court indicate that the total amount of deposits made by Fulton during the above period was over $191,800.
Fulton pled guilty to the charge on December 11, 2015.
The case was investigated by members of the Internal Revenue Service – Criminal Investigation, U.S. Immigration and Customs Enforcement, and was prosecuted by Assistant United States Attorney Stephen Clark.
East Hartford Man Sentenced to Prison for Tax EvasionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SHAUKAT G. DALAL, also known as Shaukathusein Dalal, 55, of East Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to four months of imprisonment, followed by six months of home confinement and three years of supervised release, for tax evasion. He also was ordered to pay a $3,000 fine.
According to court documents and statements made in court, DALAL was employed by the State of Connecticut as a Fiscal Administration Assistant, and also owned and operated a separate tax preparation business, Tax Preparation SVS Inc. For the 2009 through 2011 tax years, DALAL, who had prepared more than 250 tax returns as part of the tax preparation business, did not deposit all of the gross receipts from the business into his business bank account and subsequently understated his gross receipts on his federal tax returns.
DALAL and his wife also owned Ameen LLC, a holding company that owned 25 rental units in an East Hartford condominium complex. DALAL performed virtually all of the work for the real estate business, including collecting rent receipts, pricing the units, organizing repairs and maintenance, depositing rent receipts, paying the bills and maintaining the books and records. DALAL did not deposit a substantial portion of rent receipts, often paid to him in cash, into Ameen LLC’s business bank account and substantially underreported both the applicable income and taxes due and owing on his 2009 through 2011 federal tax returns.
Through this scheme, DALAL failed to report nearly $400,000 in income.
Judge Underhill ordered DALAL to pay $97,289 in back taxes, plus applicable penalties and interest.
On December 2, 2015, DALAL pleaded guilty to one count of tax evasion. He was ordered to report to prison on July 20, 2016.
This case was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Eagle Butte Man Charged with AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault by Striking, Beating, and Wounding.
Chad Lara, age 32, was indicted on May 17, 2016. He appeared before United States Magistrate Judge Mark A. Moreno on May 25, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to one year in custody and/or a $100,000 fine, one year of supervised release, and $25 to the Federal Crime Victims Fund. Restitution may also be ordered.
It is alleged that on April 7, 2016, Chad Lara assaulted another individual by striking, beating and wounding him at the United States Federal Courthouse in Pierre, South Dakota.
The charge is merely an accusation and Lara is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay P. Miller is prosecuting the case.
Lara was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Conspirator Pleads Guilty to Bank Fraud Scheme Involving over 200 VictimsRead the Press Release
Baltimore, Maryland – Shivani Patel, age 30, of Reisterstown, Maryland, pleaded guilty today to bank fraud conspiracy and aggravated identity theft arising from a scheme to use stolen credit information of more than 200 victims to defraud financial institutions.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to her plea agreement and court documents, from at least June to December 18, 2013, Patel conspired with Tariq Hicks, her then boyfriend Eddie Carey and others to defraud financial institutions by accessing stolen credit card and debit card accounts belonging to real people and using counterfeit cards encoded with the stolen account information to make unauthorized purchases.
Hicks purchased the stolen account information over the internet. Patel and Hicks used a computer and an electronic device called a “reader-writer” to encode the stolen credit and debit card information onto existing credit cards, gift cards, or other similar cards. These cards were sold or distributed to co-conspirators, such as Carey and Ishia Cason, who used them and provided the bulk of the proceeds to Hicks. Patel often delivered cards to the individuals who were conducting transactions, called “strikers.” Patel also recruited workers.
Hicks also purchased or obtained over the internet “credit profiles” containing the identity information of victims. He then obtained full credit reports for these victims. Hicks gave this information to Patel and others, who went into stores where the victims had existing credit accounts, with the victim’s personal identity information so that they could “authenticate” themselves as the victim. Patel, Carey, Cason and others would then make purchases on the existing accounts (called “account takeover”).
In addition, Hicks used the credit reports to identify stores at which a victim did not have an account, and sent Patel, Carey, Cason and others into those stores with the same personal identity information. Patel and the co-conspirators would apply for new credit accounts in the victim’s identity, and then use that “instant credit” to make purchases before the victim learned of the account.
For all of these schemes, Hicks obtained fraudulent drivers’ licenses which bore the information of the victim, but the photograph of a co-conspirator. Patel had many such identifications which bore her photo but the identity information of victims. Often Hicks or Patel would provide a cheat sheet with the necessary personal identity and account information so that a co-conspirator would have ready and covert access to the information as needed. The co-conspirators could then use the counterfeit license to establish their identity as the victim.
Patel and others instructed those using the cards and information to travel to other states to engage in the fraud. Patel and Carey traveled to conduct account takeovers, instant credit fraud and other fraudulent transactions. Co-conspirators frequently traveled north to Pennsylvania and south as far as Georgia to engage in fraud, as well as the states that lie between Baltimore and Atlanta, including North and South Carolina, West Virginia, and Virginia.
On December 18, 2013, a search warrant was executed at Patel’s residence, where she lived with Hicks and Carey. A complete set up for the fraud scheme was on the dining table, including a computer with the credit profiles and credit reports, a reader/writer device, credit cards in various states of manufacture, money gram receipts for payments for the stolen credit card numbers and profiles, lists of personal identity information and “cheat sheets.” Also recovered were dozens of credit cards bearing victims’ names and accounts, as well as dozens of fraudulent identification to match the credit cards, all bearing the information of the victims but the photographs of co-conspirators.
In a basement space shared by Patel and Carey were more lists of victim information and a receipt for a storage locker rented to “Aishwarya Gupta,” a fictitious identity that Patel created as an alter ego and used to obtain a $42,073.22 loan for the purchase of a 2010 BMW 528XI. There was also a small notebook in Patel’s handwriting which numerous personal identity information; notations as to money grams which had to be sent to various individuals in Kiev and the amounts owed; notations as to what merchandise was ordered and delivered to customers of the scheme at what price; notations as to how much was owed to workers in the scheme, and a reminder to pay the storage locker fee.
A search warrant was executed on the storage unit and a duplicate “mill” was located, including an embosser to manufacture embossed credit cards, and boxes containing hundreds of blank plastic cards ready for counterfeiting, including white, gold, silver and black cards. There were also over 150 cards in various states of manufacture.
Over 450 compromised accounts were compiled from the evidence seized from the residence and storage locker, although most had not yet been used in the scheme. There were over 200 victims, including businesses and financial institutions which sustained an actual loss and victims who had their identities compromised in the conspiracy. Based on the individual victims and credit accounts which were recovered from the search warrant, actual losses associated with the scheme are $61,030.78. As part of her plea agreement, Patel will be required to pay restitution in the full amount of the victims’ losses.
Patel faces a maximum sentence of 30 years in for the bank fraud conspiracy, and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge James K. Bredar scheduled sentencing for September 30, 2016 at 3:00 p.m.
Tariq Hicks, age 48, of Owings Mills, Maryland, pleaded guilty on May 2, 2016; and Eddie Carey, age 32; and Ishia Biff Cason, age 36, both of Baltimore, pleaded guilty on May 5, 2016, to bank fraud conspiracy and aggravated identity theft. Judge Bredar scheduled sentencing for Hicks on June 10, 2016 at 9:30 a.m.; for Carey on August 18, 2016 and for Cason on August 5, 2016, both at 2:00 p.m.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
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 HSI Baltimore and the U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.
Chattanooga Residents Indicted for Kidnapping & Sex TraffickingRead the Press Release
CHATTANOOGA, Tenn. – On May 26, 2016, Corrie Gillispie, a.k.a., Tyme, BiggtymeChattanoogatyme, and Profit Tyme, 40, of Chattanooga, Tenn., and Willie Watkins, a.k.a., Block Baker, Soldier, and Killer, 40, also of Chattanooga, were arrested by agents of the U.S. Immigration and Customs Enforcement's Homeland Security Investigations (HSI), and Chattanooga Police Department, on charges involving conspiracy, kidnapping, and sex trafficking.
On May 17, 2016, a federal grand jury returned an indictment against Gillispie and Watkins for the above-referenced charges. Details of the offenses are outlined in the indictment, which is on file with the U.S. District Court and available to the public.
On May 27, 2016, Gillispie and Watkins had initial appearances before the Honorable Christopher H. Steger, U.S. Magistrate Judge, and both pleaded not guilty. Both were detained pending their next appearance in U.S. District Court, which for Gillispie is a detention hearing on May 31, 2016, at 11:00 a.m. Watkins waived his detention hearing and no further court appearances have been scheduled for him at this time.
If convicted of kidnapping, Gillispie and Watkins face up to life in prison. If convicted of sex trafficking, Gillispie faces a term of not less than 15 years in prison and will be placed on the sex offender registry for a minimum of 25 years.
This ongoing investigation is being conducted by the HSI, FBI and Chattanooga Police Department. Assistant U.S. Attorney Jay Woods represents the United States.
Members of the public are reminded that these are only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
If you believe you have information that could assist law enforcement in this ongoing investigation, please call the HSI tip line at 866-347-2423.
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California Woman Pleads Guilty to Federal Drug Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Maria Isabel Ramos, 62, of Lake Elsinore, Calif., pled guilty today in federal court in Albuquerque, N.M., to a drug trafficking charge arising out of an 11-pound seizure of methamphetamine in Nov. 2014.
Ramos and co-defendant Monica Ortega, 39, of Riverside, Calif., were arrested on Nov. 18, 2014, after New Mexico State Police (NMSP) officers discovered approximately 5.05 kilograms (11.13 pounds) of methamphetamine in their vehicle during a routine traffic stop in Bernalillo County, N.M. Ramos and Ortega were subsequently indicted on Dec. 16, 2014, and charged with possession of methamphetamine with intent to distribute.
During today’s proceedings, Ramos pled guilty to a felony information and admitted that on Nov. 18, 2014, she was stopped by NMSP officers for driving with an expired license plate. Ramos further admitted that, during the traffic stop, the officers found a duffel bag in the trunk of her vehicle that contained plastic containers of methamphetamine.
At sentencing, Ramos faces a statutory maximum penalty of 20 years in federal prison followed by not less than three years of supervised release.
Ortega has entered a not guilty plea to the indictment. Charges in indictments are merely accusations and defendants are presumed innocent unless convicted in a court of law.
This case was investigated by the Albuquerque office of the DEA and the NMSP. Assistant U.S. Attorney Presiliano Torrez is prosecuting the case.
Buffalo Man Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Nelson Pacheco, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between December 2010 and April 4, 2011, the defendant conspired with co-defendant Dennis Berard to distribute cocaine in the Buffalo area. On June 30, 2011, law enforcement officers executed a search warrant at Pacheco’s residence and recovered three handguns, ammunition and approximately $18,000 in cash.
Dennis Berard was convicted and sentenced.
The plea is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, Border Enforcement Security Task Force, under the direction of Special Agent in Charge James C. Spero, the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto, and the Niagara County Sheriff's department, under the direction of Sheriff James Voutour.
Sentencing is scheduled for September 2, 2016, at 12:30 p.m. before Judge Arcara.
Boyle County Man Convicted on All Counts of Various Child Exploitation ChargesRead the Press Release
LEXINGTON — A Boyle County man has been found guilty on all six counts of an indictment charging various child exploitation offenses.
On Thursday, a federal jury in Lexington, Ky., convicted 54 year-old Mark Andrew Morris of two counts of producing child pornography, two counts of distributing child pornography, and one count each of receiving and possessing child pornography. The jury returned its verdicts after approximately 35 minutes of deliberation, following two days of trial.
According to evidence presented at trial, Morris used a hidden camera to record a minor female engaged in sexually explicit conduct. The evidence further revealed that Morris had downloaded numerous images of child pornography from the internet.
The investigation started when an investigator with the Kentucky Attorney General’s Cyber Crimes Unit discovered images of child pornography being made available through a peer to peer (P2P) network on the internet. The investigator collected the child pornography images, obtained the subscriber information for the Internet Protocol (IP) address, and traced the source of the images to Morris’s computer. In June 2014, a search warrant was conducted at Morris’ residence and authorities found the child pornography images on his computer and other electronic media.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Howard Marshall, Special Agent in Charge, Federal Bureau of Investigation; and Andy Beshear, Kentucky Attorney General, jointly made the announcement.
The case was investigated by the Office of the Kentucky Attorney General, Cyber Crimes Unit, and the FBI. Assistant U.S. Attorney David Marye prosecuted the case on behalf of the federal government.
Morris is scheduled to be sentenced on August 29, 2016. Production of Child Pornography carries a minimum sentence of 15 years and a maximum of 30 years; receipt and distribution of child pornography carry a minimum of 5 years in prison and a maximum of 20 years; and possession of child pornography carries a maximum penalty of 10 years in prison.
Asian American and Pacific Islander Heritage MonthRead the Press Release
In commemoration of the month of May as Asian American and Pacific Islander Heritage Month, our office participated in the 12th Festival of Pacific Arts (FestPac) as Guam hosted 28 Island Nations and Territories from across the Pacific in what is called the “Olympics of Pacific Arts” and the largest cultural event to take place in Guam's history, from May 22 – June 4, 2016. The theme for FestPac 2016 was “Håfa Iyo-ta, Håfa Guinahå-ta, Håfa Ta Påtte, Dinanña’ Sunidu Siha Giya Pasifiku,” which translates to “What we own, what we have, what we share – United Voices of the Pacific.”
Our office extended a warm Hafa Adai welcome and presented Certificates of Appreciation to the Delegations of the Pacific Island Nations and Territories at the Hagatna Paseo de Susana Park. First Lady and Honorary Chairwoman of the 12th Festival of Pacific Arts, Christine Calvo, was present with representatives from the Delegations. Our staff was invited to celebrate Asian American and Pacific Islander Heritage Month by also wearing traditional cultural attire or island wear to the presentation, and participating in the FestPac events after the presentation. The FestPac events included traditional performances, arts and crafts displays and demonstrations, and music and story-telling.
According to various publications, "The Festival of the Pacific Arts is held every four years since 1972, and brings together artists and cultural practitioners from around the Pacific region for two weeks of festivity. It is recognized as a major regional cultural event, and is the largest gathering in which Pacific peoples unite to enhance their respect and appreciation of one another.
The idea of a Festival of Pacific Arts was conceived by the Conference of the South Pacific Commission (now the Secretariat of the Pacific Community (SPC) in an attempt to combat the erosion of traditional customary practices. Since 1972, delegations from 27 Pacific Island Nations and Territories have come together to share and exchange their cultures at each Pacific Arts Festival. A delegation of 2,500 performers, artists and cultural practitioners were expected, in addition to thousands of visitors from Asia and festival followers who see to it they are part of the festival every four years.”
The 28 Pacific Island Nations and Territories that participated in FestPac were: American Samoa, Australia, Cook Islands, the Federated States of Micronesia (Yap, Chuuk, Pohnpei and Kosrae), Fiji Islands, French Polynesia, Guam (2016 Host), Hawaii, Kiribati, Marshall Islands, Nauru, New Caledonia, New Zealand, Norfolk Island, Niue, Northern Mariana Islands, Palau, Papua New Guinea, Pitcairn Islands, Rapa Nui, Republic of China (Taiwan), Samoa, Solomon Islands, Tokelau, Tonga, Tuvalu, Vanuatu, and Wallis and Futuna.
FestPac officially started with the launching of proas from several island nations, including Guam. The seafaring group from Guam paddled just offshore to welcome visiting seafarers who traveled from their islands by proas.
The grand opening of the Guam Museum also coincided with the opening of FestPac.
Attached are photos taken at the presentation of Certificates of Appreciation to the Delegations participating at FestPac on Guam and other photos taken of some of the visiting Pacific Island Nations and Territories, participating in traditional performances, arts and crafts displays and demonstrations, and music and story-telling.
U.S. Attorney Alicia Limtiaco and USAO Staff with First Lady of Guam Christine Calvo and FestPac Delegation representatives at USAO Presentation of Certificates of Appreciation The official opening of FestPac began with the launching and sailing of proas from several island nations U.S. Attorney Alicia Limtiaco and USAO Staff visiting with Guam Museum Director Clifford Guzman and staff in front of the newly opened Guam Museum Samoa Delegation Yap Delegation New Zealand Delegation Rapa Nui Delegation Marshall Islands Delegation Northern Mariana Islands Delegation Guam DelegationActor Named in Federal Indictment Alleging Receipt and Possession of Child Pornography on his Computer and Flash DriveRead the Press Release
LOS ANGELES – Actor Mark Wayne Salling was charged today in a federal indictment with receiving and possessing child pornography on his laptop computer and a flash memory drive.
Salling, 33, of Shadow Hills, who is best known for his role as Noah Puckerman on the television show “Glee,” was named in a two-count indictment returned this afternoon by a federal grand jury.
“Those who download and possess child pornography create a market that causes more children to be harmed,” said United States Attorney Eileen M. Decker. “Young victims are harmed every time an image is generated, every time it is distributed, and every time it is viewed.”
The indictment specifically alleges that Salling used the Internet to receive a still image and a video depicting child pornography on December 26, 2015. These images depict young girls.
The second count in the indictment charges Salling with possessing two videos depicting child pornography on December 29, 2015. The image and video also depict young girls.
“The traditional stereotype about the kinds of people who commit child sexual exploitation crimes simply doesn’t dovetail with reality. As our investigators can attest, the defendants in child pornography cases come in all ages and from all walks of life,” said Joseph Macias, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Los Angeles. “While people are often surprised when high-profile individuals come under scrutiny in such investigations, we hope cases like this will raise awareness about law enforcement’s vigilance to combat the online sexual exploitation of children and hold those involved, regardless of their position, accountable for their actions.”
The laptop, a hard drive, and a USB flash drive seized from Salling’s residence at the end of 2015 contained thousands of images and videos depicting child pornography, according to investigators, who are continuing to review the material. Salling was initially arrested by the Los Angeles Police Department and HSI on state charges, and he was released on bond. Once investigators realized the scope of the collection of child pornography, the matter was referred to federal authorities for further action, which resulted in today’s indictment.
“It doesn’t matter who you are or what you do, if you hurt a child you will be held accountable,” said Lt. Andrea Grossman, Commander of the LAPD Internet Crimes Against Children Task Force. “These images are more than photographs, they are child abuse.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The charge of receiving child pornography carries a mandatory minimum sentence of five years in federal prison and a statutory maximum sentence of 20 years. The charge of possessing child pornography also carries a statutory maximum sentence of 20 years in federal prison.
Salling, through his attorney, has agreed to surrender to federal authorities on June 3 to face the charges in the indictment. He is expected to be arraigned on the indictment on that date.
The case against Salling is the product of an investigation by the Los Angeles Police Department and HSI as part of the Child Exploitation Investigations Group, a multi-agency task force that combats all forms of child exploitation. The Beverly Hills Police Department provided substantial assistance.
10 Indicted in Meth Distribution ConspiracyRead the Press Release
Jackson, TN – Ten residents of the Jackson area have been indicted for conspiring to distribute large quantities of highly pure methamphetamine throughout West Tennessee. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
On Thursday, May 26, 2016, nine of the defendants were taken into custody. One defendant remains a fugitive. Federal, state and local law enforcement agencies participated in the early morning round-up.
The following defendants have been indicted on conspiracy to distribute and possess with the intent to distribute more than 500 grams of meth, among other charges:
• David Burruss, 72, of Bolivar, Tennessee
• Rodney Richardson, 48, of Grand Junction, Tennessee
• Deon Brown, Sr., 48, of Grand Junction, Tennessee
• James Walker Carroll, 35, of Savannah, Tennessee
• David Bryan, 29, of Jackson, Tennessee
• Thomas Rodgers, 38, of Lexington, Tennessee
• Nancy Hubanks, 65, of Savannah, Tennessee
• Matthew Ludoff, 33, of Jackson, Tennessee
• Jason Stanfill, 37, of Jackson, Tennessee
• Mary Vandiver, 42, of Jackson, Tennessee (fugitive)
According to the indictment, between late August 2014 and March 2016, the defendants conspired with each other to distribute and possess with the intent to distribute large quantities of "ice," which is meth with a purity level greater than 80 percent. The defendants also distributed multiple grams of meth.
During the course of a nearly two-year investigation, law enforcement officers seized more than 3,500 grams of ice, over 800 grams of meth, three firearms, two vehicles, and approximately $64,000 in drug proceeds from the defendants.
All 10 defendants have been charged with one count of conspiring to distribute 50 grams or more of actual methamphetamine (ice), and one count of aiding and abetting each other to distribute, attempt to distribute, possess with the intent to distribute and attempt to possess with the intent to distribute 50 grams or more of ice.
The defendants have also been charged with conspiring to distribute and possess with the intent to distribute 500 grams or more of meth. And aiding and abetting each other to distribute, attempt to distribute, possess with the intent to distribute and attempt to possess with the intent to distribute 500 grams or more of meth.
• Burruss, Hubanks, and Brown have each been charged with two additional counts of distributing, attempting to distribute, possession with intent to distribute, and attempting to possess with the intent to distribute 50 grams or more of meth.
• Stanfill and Vandiver have been charged with three additional counts of distributing, attempting to distribute, possession with intent to distribute, and attempting to possess with the intent to distribute 50 grams or more of meth.
• Richardson, Carroll III, Bryan and Ludoff have each been charged with an additional count of distributing, attempting to distribute, possession with intent to distribute, and attempting to possess with intent to distribute 50 grams or more of meth.
• And Rodgers has been charged with three additional counts of distributing, attempting to distribute, possession with intent to distribute, and attempting to possess with the intent to distribute five grams or more of meth.
The defendants face mandatory minimum sentences of 10 years imprisonment if convicted of the conspiracy and/or aiding and abetting charges. They also face fines of up to $10 million.
The additional distribution charges carry mandatory minimum sentences of between five and 20 years imprisonment and fines exceeding $1 million.
This case is being investigated by the Drug Enforcement Administration; Tennessee Bureau of Investigation; Jackson-Madison County Metro Narcotics Unit; 24th Judicial District Drug Task Force; Hardin County Sheriff's Department; and the United States Postal Inspector Service.
Assistant U.S. Attorney Beth Boswell is prosecuting this case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
26 May 2016
Zuni Pueblo Man Pleads Guilty to Federal Statutory Rape ChargeRead the Press Release
ALBUQUERQUE – Kirk Simplicio, 23, a member and resident of Zuni Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to a sexual abuse of a minor charge. U.S. Attorney Damon P. Martinez and Chief Timothy Trimble of the Zuni Pueblo Tribal Police Department announced the guilty plea.
Simplicio was arrested on March 17, 2015, on an indictment charging him with sexually abusing a minor who was between 12 and 16 years of age. According to the indictment, Simplicio committed the crime on Jan. 1, 2014, on Zuni Pueblo in McKinley County, N.M.
During today’s proceedings, Simplicio pled guilty to the indictment and admitted engaging in a sexual act with the victim who was 14 years old and at least four years younger than Simplicio.
At sentencing, Simplicio faces a statutory maximum penalty of 15 years in federal prison. He also will be required to register as a sex offender after he completes his prison sentence. Simplicio was remanded into custody and will remain detained pending sentencing, which has yet to be scheduled.
This case was investigated by the Zuni Pueblo Tribal Police Department and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Whiteriver Man Sentenced to 188 Months in Prison for Abusive Sexual ContactRead the Press Release
PHOENIX– Yesterday, Mitchell Clawson, 30, of Whiteriver, Ariz., a member of the White Mountain Apache Tribe, was sentenced by U.S. District Judge Steven P. Logan to 188 months in prison. Clawson had previously pleaded guilty to one count of abusive sexual contact.
Clawson pleaded guilty to sexually abusing an eight year old female, also a member of the White Mountain Apache Tribe, while she slept. The incident occurred on the Fort Apache Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the White Mountain Apache Tribal Police Department. The prosecution was handled by Anthony Church, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-15-01374-PHX-SPL
RELEASE NUMBER: 2016-050_Clawson
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
United States, Mexico and Canada Join Forces to Improve Amber Alert SystemRead the Press Release
The U.S. Department of Justice’s Office of Prosecutorial Development, Assistance and Training (OPDAT) and Mexico’s Office of the Attorney General (PGR) sponsored a Trinational Forum yesterday and today in Mexico City, bringing together Amber Alert Coordinators from Mexico, the United States and Canada. The forum aimed to create mechanisms for the international coordination of Amber Alerts in order to better respond to potential cross-border cases of missing children.
Opening the forum, Mexican Attorney General Arely Gomez highlighted the importance of international cooperation in the identification of missing children, noting that the Amber Alert program “breaks the barriers of communication, time and distance,” and highlighted that the “neutralization and disruption of criminal groups and their operations cannot depend on limits created by borders or national identities.”
The importance of the Amber Alert system also was recognized by U.S. Attorney General Loretta E. Lynch in her remarks yesterday at the annual National Missing Children’s Day Ceremony in Washington, D.C., where she noted the Trinational Event in Mexico City and said, “and our commitment to rescuing missing children does not stop at the border. I am proud to say that our Department of Justice has collaborated with the Attorney General of Mexico on the development of Mexico’s AMBER Alert System, which has already resulted in the rescue of hundreds of Mexican children.”
OPDAT Senior Resident Legal Advisor Ray Gattinella told Amber Alert coordinators in Mexico City, “we currently have 75 open abduction cases from the United States to Mexico and 183 open cases from Mexico to the United States. So it makes sense that our countries would continue the collaboration on Amber Alert we started four years ago and begin coordinating on potential cross-border and interstate missing children cases.”
OPDAT assisted PGR in the creation and implementation of Amber Alert Mexico based on the U.S. program in May 2012. Since that time, Amber Alert has led to the rescue of over 350 children in Mexico. The program has also become a central piece of OPDAT’s programming in Mexico under the Merida Initiative. The United States immensely values the cooperation and collaboration from both Mexico and Canada in this critical area.
USP Hazelton inmate convicted, sentenced for assaulting fellow prisonerRead the Press Release
CLARKSBURG, WEST VIRGINIA – Arnaldo Martinez-Gomez, 30, an inmate at the United States Penitentiary at Hazelton, was convicted and sentenced today for assaulting a fellow prisoner, United States Attorney William J. Ihlenfeld, II, announced.
Martinez-Gomez assaulted a fellow prisoner during a physical altercation at USP Hazelton in September 2014. He pled guilty today to one count of “Assault with a Dangerous Weapon with Intent to do Bodily Harm.” He was sentenced to an additional 18 months in prison.
Assistant U.S. Attorney Andrew Cogar prosecuted the case on behalf of the government. The Federal Bureau of Prisons and the Special Investigative Services Unit at USP Hazelton led the inquiry.
U.S. District Judge Irene M. Keeley presided.
Two plead guilty to methamphetamine traffickingRead the Press Release
ELKINS, WEST VIRGINIA – Two individuals pled guilty to methamphetamine trafficking today in federal court in Elkins, United States Attorney William J. Ihlenfeld, II, announced.
Donald Ray Cantrell, 40, of Mill Creek, West Virginia, was discovered in possession of methamphetamine in March 2016 in Randolph County, West Virginia. Following an investigation by the Mountain Region Drug and Violent Crime Task Force, he pled guilty today to one count of "Possession with Intent to Distribute Methamphetamine." He faces up to 20 years in prison and a fine of up to $1,000,000.
Samuel Lee Winebrenner, 29, of Petersburg, West Virginia, sold morphine in Grant County, West Virginia. Following an investigation by the Potomac Highlands Drug and Violent Crime Task Force, he pled guilty today to one count of “Distribution of Morphine.” He faces up to 20 years in prison and a fine of up to $1,000,000. As part of the plea agreement entered today, Winebrenner withdrew a guilty plea previously entered in April 2016 in which he admitted to selling morphine near a protected location.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Stephen Warner prosecuted the cases on behalf of the government.
U.S. Magistrate Judge Michael John Aloi presided.
Two pill dealers sentenced to Federal prison for drug crimesRead the Press Release
CHARLESTON, W.Va. – Two men were sentenced today to federal prison for oxycodone crimes, announced Acting United States Attorney Carol Casto. Kenneth Edward Campbell, 48, of Charleston, was sentenced to two years in federal prison for conspiracy to distribute oxycodone. In a separate drug prosecution, Jonathan Belcher, 37, of Logan, was sentenced to six years in federal prison for distributing oxycodone.
On August 23, 2013, the United States Postal Inspection Service intercepted a package containing oxycodone that had been sent from Detroit to Charleston. An undercover officer posing as a mail carrier delivered the package and confronted the man who accepted delivery. That man told police that Campbell had offered to give him oxycodone if he would allow the drug parcel to be delivered to his residence. Officers used the man to conduct a controlled delivery of the package to Campbell at his place of employment on the West Side of Charleston. Campbell was arrested upon taking possession of the package.
In a separate prosecution, Jonathan Belcher admitted that in August 2014, he sold oxycodone pills to a confidential informant working with law enforcement. The drug deal took place at Belcher's residence.
The case against Campbell was investigated by the United Postal Inspection Service and the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Joshua Hanks is in charge of Campbell's prosecution. United States District Judge John T. Copenhaver, Jr., imposed Campbell's sentence.
The U.S. 119 Drug Task Force investigated the Belcher case. Assistant United States Attorney John J. Frail handled the prosecution of Belcher. United States District Judge Thomas E. Johnston imposed Belcher's sentence.
These prosecutions are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Two from Northeast Ohio indicted for straw purchase of firearmRead the Press Release
Two people from Northeast Ohio were indicted for their actions related to the straw purchase of a firearm, said Carole Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Named in the three-count indictment are Malcolm Roberson, 26, of Warrensville Heights, and Chimere M. Turner, 32, of Cleveland.
Count 1 charges that Roberson and Turner engaged in a straw purchase of a Jimenez Arms 9 mm pistol on Feb. 20 at Taylor Firearms LLC in Vermillion when Turner said she was the buyer of the firearms when the actual buyer of the firearm was Roberson. Count 2 charges Roberson with being a felon in possession of a firearm, of having the 9 mm pistol despite a 2011 conviction for assault. Count 3 charges Turner with making false statements following being served a subpoena.
This case is being prosecuted by Assistant U.S. Attorney Benedict Gullo following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendants’ prior criminal records (if any), the defendants’ role in the offense, and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two State Correctional Officers Arrested for Smuggling Drugs and Cell Phones into the J.T. Vaughn Correctional CenterRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, today announced that two State correctional officers, Thomas Nadill Boyce, Jr., age 46, and Paul Hursey, age 46, each of Dover, Delaware, have been arrested on separate federal criminal complaints, each charging the smuggling of drugs and cell phones to inmates, in return for bribes, at the J.T. Vaughn Correctional Center in Smyrna, Delaware.
The two defendants made initial appearances today before Chief United States Magistrate Judge Mary Pat Thynge and were released on bail. Each criminal complaint charges a violation of extortion under color of official right, which carries a maximum penalty of 20 years imprisonment and a $250,000 fine.
This joint investigation also resulted the filing of a criminal complaint, on December 3, 2015, against Correction Officer Lorraine Y. Mosley, who was charged with smuggling a cell phone into the Delores Baylor Women’s Correctional Institution, in New Castle, to an inmate in return for a bribe.
Commissioner Robert M. Coupe stated, “Unfortunately, contraband, to include drugs and cell phones, is successfully smuggled into DOC facilities and such criminal behavior puts the safety of our staff, inmates, and visitors to our facilities at risk. Such actions violate the public’s trust, undermine the credibility of our department, and damage the integrity of our profession. We are grateful to the U.S. Attorney’s Office, the FBI, and the DOC for leading the investigation which resulted in the arrest of these employees.”
This matter resulted from a joint investigation conducted by the Federal Bureau of Investigation and investigators from the Delaware Department of Correction. The prosecution is being handled by Assistant United States Attorney Edmond Falgowski, District of Delaware.
The charges in the criminal complaints are only allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Two Sentenced for Grandparent Fraud SchemeRead the Press Release
PLATTSBURGH, NEW YORK –Naromie Joseph, 29, and Christie Joseph, 25, were sentenced on May 23, 2016 and May 10, 2016, respectively, in United States District Court for the Northern District of New York announced United States Attorney Richard S. Hartunian and Homeland Security Investigations Acting Special Agent in Charge Michael Kennedy.
The defendants pled guilty to conspiracy to commit mail fraud as a result of their participation in a scheme to defraud elderly victims. The elderly victims were contacted by people who told them that their grandchildren and other relatives needed money for bail and other purposes. Believing their loved ones needed help, the elderly victims sent the money to various addresses in Plattsburgh that the defendants arranged to use for the scheme.
Naromie Joseph was sentenced to time served after spending approximately 13 months in custody awaiting the disposition of her case; 3 years of supervised release; and was ordered to pay $27,200.00 restitution to the victims. Christie Joseph was sentenced to 4 months of weekends in jail; 3 years of supervised release; and also ordered to pay restitution to the victims.
The United States Attorney’s Office and Homeland Security Investigations would like to remind the public of the following:
- Be suspicious of anyone who calls unexpectedly asking for cash.
- Verify any supposed emergency, by calling friends and family, before sending money.
- Develop a secret code or "password" with family members that can be used to verify a true emergency.
- Resist the pressure to act quickly
- Try to contact another family member to determine whether or not the call is legitimate.
- Never wire money based on a request made over the phone or in an e-mail…especially overseas. Wiring money is like giving cash—once you send it, you can’t get it back.
If you think you’ve been victimized, contact Homeland Security Investigations at 1-866-DHS- 2ICE or at ice.gov/tips or contact local authorities or the state consumer protection agency.
Assistant U.S. Attorney Katherine Kopita prosecuted the case. The Plattsburgh Police Department originated the investigation and partnered with Homeland Security Investigations throughout. The United States Postal Service, Clinton County Sheriff’s Office, the Canada Border Services Agency and the Royal Canadian Mounted Police Project COLT also participated.
Two California Men Convicted of Methampetamine, Cocaine and Heroin Trafficking in Monroe CountyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that two California men were convicted of methamphetamine, cocaine and heroin trafficking in Monroe County by a jury after a four-day trial held before U.S. District Court Judge Malachy E. Mannion in Scranton.
According to United States Attorney Peter Smith, Reginald Braddy, age 33, and Fontaine Horton, age 37, both formerly of San Bernardino, California, were convicted of conspiracy to distribute methamphetamine, cocaine and heroin in the Monroe County area between 2012 and 2014. In addition, Fontaine Horton was convicted of two counts of distributing methamphetamine in Monroe County in October of 2013.
The defendants were charged with obtaining high-quality methamphetamine from sources in California, along with heroin and cocaine, which they then distributed for profit in the Monroe County area over a two-year period.
The investigation was conducted by the Drug Enforcement Administration, the Pennsylvania State Police, and the Pocono Mountain Regional Police Department. Officers from the Orange County, California Sheriff’s Office, the Scranton Police Department, and Plainfield Township, Pennsylvania, Police Department assisted in the investigation.
The case was prosecuted by Assistant United States Attorneys Robert J. O’Hara and Francis P. Sempa.
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.
Fontaine Horton is facing a maximum possible penalty of 60 years’ imprisonment under federal law, a term of supervised release following imprisonment, and a fine. Reginald Braddy is facing a maximum possible penalty of 20 years’ imprisonment, a term of supervised release and a 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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Tribal Fiduciary Sentenced to 30 Months in Prison for Seven-Year Scheme to Steal More Than $260,000 from Vulnerable Members of the Salt River Pima-Maricopa Indian CommunityRead the Press Release
PHOENIX – Yesterday, Freida Ann Battise-Moore, 55, of Avondale, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 30 months’ imprisonment and ordered to pay over $260,000 in restitution. Battise-Moore had previously pleaded guilty to theft or embezzlement from an Indian tribal organization.
“Ms. Battise-Moore violated the trust of the Community and its members, so the Community petitioned the court that she be incarcerated for her crime. The Community takes this matter very seriously and has taken the necessary steps that it will not happen again,” said Delbert Ray, Sr., President, Salt River Pima-Maricopa Indian Community.
In 2001, Battise-Moore—a law school graduate and a member of the Alabama-Coushatta Indian Tribe—was hired by the Salt River Pima-Maricopa Indian Community to serve as the court-appointed representative for the tribe’s incapacitated and incompetent members. In this sensitive role as “public fiduciary,” Battise-Moore was responsible for handling all of her clients’ financial affairs (i.e., receiving their Social Security, commercial and agricultural lease, and other payments and using the proceeds to pay their rent, medical bills, and other expenses). Beginning in 2006, Battise-Moore began stealing from some of her clients. Her misconduct went undetected until September 2013, at which point she was fired. A subsequent audit showed that Battise-Moore had stolen more than $260,000 from 49 clients and had spent the proceeds on expensive sports tickets and gambling, among other things. Judge Logan enhanced Battise-Moore’s sentence in recognition of the vulnerability of the victims and the fact that Battise-Moore had abused a position of trust.
The investigation in this case was conducted by the Salt River Police Department. The prosecution was handled by Dominic Lanza, Assistant U.S. Attorney, District of Arizona.
CASE NUMBER: CR-16-130
RELEASE NUMBER: 2016-049_Battise-Moore
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Tioga County Physician and Drug Dealer Sentenced for Health Care FraudRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dr. John Terry, age 65, and Thomas Ray, age 53, both of Wellsboro, were sentenced yesterday by Chief United States District Court Judge Christopher C. Conner in Williamsport. Terry was sentenced to 20 months’ in federal prison and ordered to pay $4,762 in restitution to the state Department of Human Services for fraudulent prescriptions he wrote for Oxycodone, a Schedule II controlled substance.
Ray was sentenced to 71 months’ in federal prison for possession with intent to distribute a controlled substance, which will run consecutively to 30 months of a Tioga County term consisting of 51 months to 15 years. Ray is serving the state sentence on unrelated charges.
According to U.S. Attorney Peter Smith, in April 2013, Terry allegedly caused Medicare to be billed for fraudulent prescriptions of Oxycodone intended for David Hatch, age 28, of Addison, New York, but written in the name of Stephen Heffner, Jr., age 46, of Elkland. Terry knowingly wrote the prescription in the name of Heffner, knowing Heffner was not his patient, and that the Oxycodone was intended for Hatch. Medicare paid for the prescription received by Heffner but actually delivered to Hatch.
Terry also wrote prescriptions for Oxycodone and other narcotics for Ray, in reckless disregard of the fact that the drugs were not being used by Ray for legitimate medical purposes, but being diverted and sold on the street. Medicaid paid for the medically unnecessary prescriptions written for Ray.
Heffner and Hatch were both previously sentenced to six months’ probation for theft from the Medicare Program.
The investigation was initiated in June 2013 by the Drug Enforcement Administration (DEA) drug diversion agents and the Department of Health and Human Services Office of Inspector General. During the execution of a federal search warrant at his office on July 8, 2013, Dr. Terry voluntarily agreed to surrender his medical license and his DEA registration.
The Pennsylvania State Police assisted in the investigation. Assistant United States Attorney Michelle Olshefski prosecuted the case.
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Syracuse Woman Charged with Additional Child Exploitation OffensesRead the Press Release
SYRACUSE, NEW YORK – Emily Oberst, 23, of Syracuse was charged yesterday with additional crimes relating to the sexual exploitation of minors, announced United States Attorney Richard S. Hartunian and FBI Resident Agent in Charge Andrew Vale of the FBI Albany Division. The 19 count superseding indictment returned yesterday replaces the March 2016 indictment and adds ten additional charges: Counts 2,3,4,5,6,8, and 9 allege additional conduct involving the sexual exploitation of a minor, and Counts 13, 14, and 15 allege additional conduct involving the distribution of child pornography. The superseding indictment alleges no new victims from the previous indictment.
As alleged in a previously filed criminal complaint, the investigation began on March 4, 2016 when a Task Force Officer assigned to the Washington, D.C. Metropolitan Police Department- Federal Bureau of Investigation Child Exploitation Task Force (Washington Field Office), acting in an undercover capacity, began texting with Oberst’s co-defendant Jason Kopp, who told the undercover officer that he had pictures of a female infant that had been sent to him by a woman acquaintance and distributed images of the infant to the officer. That woman is alleged to be Oberst. As a result of the ensuing investigation led by the FBI and New York State Police, Emily Oberst and Jason Kopp were arrested in March of 2016.
If convicted, Oberst faces a mandatory minimum sentence of fifteen (15) years and a maximum sentence of thirty (30) years for each of the counts charging Conspiracy to Sexually Exploit Children (count 1) and Sexual Exploitation of a Child (counts 2 - 12). She also faces a mandatory minimum sentence of five (5) years, and a maximum of twenty (20) years on each count charging her with Distribution of Child Pornography (counts 13 - 19). Sentences of imprisonment may be concurrent or consecutive at the discretion of the Court. The Court may also impose a fine of up to $250,000 per count, and must impose a term of supervised release of between five (5) years and life. If convicted, Oberst will also be required to register as a sex offender.
The charges are merely accusations and Oberst is presumed innocent. Her trial is currently scheduled for August 8, 2016.
Jason Kopp is not named in the superseding indictment because he pled guilty earlier this month to all twenty-two counts in the original indictment. His sentencing is scheduled for September 14, 2016 before Hon. Glenn T. Suddaby in United States District Court.
This case is being investigated by the Albany Division of the FBI (Syracuse Resident Agency), the New York State Police and the Metropolitan Police Department-Federal Bureau of Investigation Child Exploitation Task Force (Washington Field Office), and is being prosecuted by Assistant U.S. Attorneys Lisa Fletcher and Robert Levine.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
State College Man Indicted for Firearms ViolationRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a State College man was indicted today by a federal grand jury in Williamsport for the prohibited possession of firearms and ammunition.
According to United States Attorney Peter Smith, the indictment alleges that Dennis E. Lowe sold a military-style rifle and several hundred rounds of ammunition in March 2016, despite being a person prohibited under Federal law from engaging in such activity based on a 2014 conviction for illegally possessing firearms. Lowe is also alleged to have possessed, sold and offered for sale additional handguns since July 2015. According to the indictment, the firearms include:
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a Colt handgun;
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a Smith & Wesson handgun;
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a 1911 Colt handgun;
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a 1911 cold .45 caliber handgun;
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two Colt 1903 .32 caliber handguns;
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a 12 gauge shotgun;
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two .22 caliber revolvers;
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a .32 caliber British revolver;
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an M-1 Garand rifle;
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and approximately 650 rounds of ammunition.
The government is also seeking forfeiture of the firearms and ammunition.
The charges stem from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant United States Attorney Geoffrey W. MacArthur.
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.
The maximum penalty under federal law is from 10 years, a term of 3 years supervised release following imprisonment, and a $250,000 dollar 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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Springfield Man Indicted for Distributing Heroin and Crack CocaineRead the Press Release
BOSTON – Jovan Torres, 26, of Springfield, Mass., was arraigned today on three counts of distribution and possession with intent to distribute heroin and one count of distribution of heroin and crack cocaine.
According to the indictment, on four separate days in July and August 2013, Jovan Torres distributed heroin. On one of those days, he also distributed crack cocaine. Torres was detained pending a detention hearing scheduled for June 1, 2016 before U.S. District Court Magistrate Judge Katherine Robertson.
The charging statutes provides a sentence of no greater than 20 years in prison, at least three years of supervised release, and a fine of $1 million on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Katharine A. Wagner of Ortiz=s Springfield Office.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Seven Indicted in Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury has charged seven individuals for a bank fraud conspiracy in which the defendants allegedly impersonated individual victims to remove funds from the victims’ investment accounts. Two of the defendants are also alleged to have participated in a conspiracy to transport stolen vehicles to Africa. The superseding indictment, which adds six defendants and additional charges, was returned on May 19, 2016, and unsealed today upon the arrest of six defendants. Law enforcement is still seeking the seventh defendant.
The following defendants have been arrested:
Mohammed Kwaning, a/k/a Kofi, age 35, of Laurel, Maryland; Issah Mohammed, a/k/a Yissa and Ali, age 28, of Laurel; Sandra Badu, age 30, of Jessup, Maryland; Francis Osei Fosu, a/k/a Pino, age 27, of Dallas, Texas; Mark Dennis, age 28, of Beltsville, Maryland; and
Abayomi Davies, age 29, of Silver Spring, Maryland.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); U.S. Customs and Border Protection Baltimore Port Director Diana Bowman; Chief James W. Johnson of the Baltimore County Police Department; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to the 14 count superseding indictment, the defendants stole money from the accounts of individual victims by: obtaining the email addresses of victims, then purporting to be the victims, sending emails to investment account managers requesting that funds be wired into a business account controlled by Kwaning and Mohammed; and by obtaining victims’ account information at various investment account firms and taking over the online accounts of the victims. According to the superseding indictment, Mohammed and Kwaning also created fraudulent checks and cashier’s checks drawn on the victims’ accounts, which Davies, Dennis, Badu and others deposited into accounts they controlled. The defendants then withdrew or transferred the funds from the business account they maintained to receive the victims’ funds to other accounts controlled by the conspirators before the bank discovered the fraud.
Further, the superseding indictment alleges that from at least January 31, 2013, through May 12, 2014, Kwaning and Mohammed were part of a conspiracy to have vehicles stolen in New York, New Jersey and Washington, D.C., then transported to Africa for sale. Specifically, the indictment alleges that after causing the vehicles to be stolen, the conspirators would transfer possession of the vehicles to Kwaning, Mohammed and others. The conspirators used business bank accounts opened by Kwaning and Mohammed for paperwork associated with the stolen vehicles, such as the title, registration, shipping, bill of sale and insurance. They caused the stolen vehicles to be loaded into a shipping container and delivered to the Ports of Baltimore and Newark, New Jersey, where they were shipped to destinations including Lagos, Nigeria and Accra, Ghana.
According to the indictment, the proceeds from the bank and wire fraud conspiracy were pooled with the funds used and generated from the purchase and sale of the stolen vehicles.
If convicted, the defendants face a maximum sentence of 30 years in prison for the bank and wire fraud conspiracy, and for each count of bank and wire fraud in which they are charged. Kwaning and Mohammed also face a maximum of five in prison for conspiracy to transport stolen motor vehicles, and a maximum of 10 years in prison for each of four counts of receipt and possession of stolen motor vehicles. Finally, Kwaning also faces a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft. The defendants had an initial appearance today before U.S. Magistrate Judge J. Mark Coulson in U.S. District Court in Baltimore. Kwaning, Mohammed and Davies are detained and Badu and Dennis were released under the supervision of U.S. Pretrial Services. Kwaning and Davies have detention hearings scheduled for May 27 and May 31, 2016, respectively. Fosu had his initial appearance in Texas and was detained pending a detention hearing.
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.
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 HSI Baltimore, U.S. Customs and Border Protection and the Baltimore County and Prince George’s County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok and Zachary A. Myers, who are prosecuting the case.
Sentencings for May 23 - May 25, 2016Read the Press Release
Robert Joseph Aragon, III, 19, of Fort Washakie, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 25, 2016, for sexual abuse in Indian Country. Aragon, III was arrested in Fort Washakie, Wyoming. He received 70 months imprisonment, to be followed by 20 years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $5,655.52. This case was investigated by the Federal Bureau of Investigation.
Randal Phipps, 34, of Laramie, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 23, 2016, for possession of an unregistered firearm, destructive device. Phipps received 24 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Claudio Varela-Varela, 32, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 23, 2016, for illegal re-entry of a previously deported alien into the United States. Varela-Varela was arrested in Gillette, Wyoming. He was sentenced to time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Allen Joseph Whiteplume, Jr., 30, of Riverton, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 23, 2016, for burglary of a post office. Whiteplume, Jr., was arrested in Riverton, Wyoming. He received six months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $2,261.49. This case was investigated by the U.S. Postal Inspection Service.
Sean Allen Mapp, 35, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 23, 2016, for being a felon in possession of a firearm. Mapp was arrested in Casper, Wyoming. He received 60 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Salvadoran National Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that FRANCISCO MENDOZA-ZAVALA, age 41, a native of El Salvador, pled guilty today to a one-count Indictment for illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, MENDOZA-ZAVALA was previously removed from the United States on September 6, 2012. MENDOZA-ZAVALA was later found in the Eastern District of Louisiana on March 30, 2016, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
If his prior conviction is proven at sentencing, MENDOZA-ZAVALA faces a maximum term of imprisonment of ten (10) years, as well as a fine of $250,000. U.S. District Judge Mary Ann Vial Lemmon set sentencing for July 7, 2016.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Salvadoran National Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RENE MARTINEZ-QUIJANO, age 34, a native of El Salvador, pled guilty today to a one-count Indictment for illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, MARTINEZ-QUIJANO was previously removed from the United States on June 27, 2014. He was later found in the Eastern District of Louisiana on
March 1, 2016, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
MARTINEZ-QUIJANO faces a maximum term of imprisonment of two (2) years, as well as a fine of $250,000. U.S. District Court Judge Mary Ann Vial Lemmon set sentencing for July 7, 2016.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Roanoke Woman Sentenced on Heroin ChargeRead the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentenced of a Roanoke woman who previously pled guilty to a federal drug charge.
Camilla Bridget Ward, 25, of Roanoke, Va., previously pled guilty United States District Court for the Western District of Virginia in Roanoke to one count of conspiracy to distribute heroin. Today in District Court, Ward was sentenced to 35 months in federal prison.
“The use of heroin has destroyed communities throughout the Western District of Virginia,” United States Attorney John P. Fishwick said today. “We will work with our law enforcement partners to continue to be vigilant in doing what we can to take those who distribute this substance off the streets and provide support to those seeking help for their addiction.”
The investigation of the case was conducted by the Drug Enforcement Administration, the Roanoke City Police Department and officials with the Baltimore/Washington HIDTA. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Roanoke Man Sentenced on Federal Drug ChargeRead the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentence of a Roanoke man who previously pled guilty to a federal methamphetamine charge.
Derek Ryan McGhee, 38, of Roanoke, Va. previously pled guilty to one count of conspiracy to distribute methamphetamine. Today in District Court, McGhee was sentenced to 18 months in federal prison.
“Methamphetamine is a drug that has ravaged parts of Southwest Virginia for years. The United States Attorney’s Office will continue to identify and prosecute those individuals who distribute this dangerous substance,” United States Attorney John P. Fishwick Jr. said today. “We hope today’s sentence sends a clear message to those who prey on the addiction of others by distributing this dangerous drug.”
The investigation of the case was conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco and Firearms and the Virginia State Police. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Re-Entry Employer Summit Held in West MichiganRead the Press Release
GRAND RAPIDS, Michigan—U.S. Attorney Patrick Miles announced the holding of an employer summit today in West Michigan as part of the Department of Justice’s Smart on Crime initiative. The U.S. Attorney’s Office and WMU-Cooley Law School are hosting the event to encourage local employers to consider increasing their talent pool through the hiring of returning citizens—formerly incarcerated individuals transitioning to the workplace.
"Meaningful employment opportunity is critical to effectively help people returning from prison so they do not re-offend," explained U.S. Attorney Miles. "This is crime prevention. Lowering the recidivism rate of returning citizens means less crime, fewer victims, lower costs on society, and saves money. My office strives to be proactive in prosecuting and preventing federal crimes."
The Summit follows the Department of Justice’s Re-Entry Week in late April, which highlighted various West Michigan re-entry efforts and programs. The Employer Summit includes a panel discussion and a Q&A session with local employers, the Michigan Department of Corrections and others to learn about local efforts, best practices, workforce development, legal considerations and workplace trends related to employer opportunities and benefits with respect to hiring returning citizens. Employers will be invited to join the "30-2-2" effort to recruit at least 30 employers to hire at least two returning citizens whose progress will be documented for two years.
According to the Michigan Department of Corrections, 10,000 prisoners were paroled in Michigan in 2014, many of whom have returned to Kent County to rebuild their lives. Cascade Engineering and Butterball Farms, Inc., two of the Summit’s sponsors and panelists, have experienced strong success rates hiring returning citizens.
Media representatives interested in interviewing U.S. Attorney Miles or a participant in the Summit should contact the U.S. Attorney’s Office Press Information Officer, Kaye Hooker, at (616) 560-6512.
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Rapid City Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Lavern E. Looking Cloud, age 33, was indicted on June 16, 2015. Looking Cloud appeared before U.S. Magistrate Judge Daneta Wollmann on May 20, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Looking Cloud failing to register and update his registration as a convicted sex offender between April 25, 2014, and June 16, 2015.
The charge is merely an accusation and Looking Cloud is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Looking Cloud was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for July 19, 2016.
Portland Area Strip Club Operators Found Guilty of Conspiring to Defraud the IRSRead the Press Release
PORTLAND, Or - A federal jury sitting in Portland, Oregon, after a six-day trial, found three family members who ran two strip clubs in the Portland area – Cabaret Lounge I at 503 W Burnside Street and Cabaret Lounge II at 17544 SE Stark Street – guilty of conspiracy to defraud the IRS and charges relating to filing false tax returns.
From 2007 through mid-2011, the defendants’ strip clubs collected more than $1.5 million in cash door charges and dancer stage fees. The defendants maintained a set of books at the Cabaret clubs that did not include the $1.5 million in stage fees and door fees and kept a second set of books, which tracked all of the cash receipts, including the stage and door fees, at the home of David and Marci Kiraz.
IRS Special Agents executed search warrants at the strip clubs and at the residence of David and Marci Kiraz, and seized 85 banker boxes of records and all the files on 11 computers. IRS Special Agents then spent over 600 hours reviewing these records, located the second set of books, and proved David Kiraz filed false tax returns.
David Kiraz reported the business activity of the strip clubs each year on his individual income tax returns. The defendants gave their tax return preparers the false books maintained at the strip clubs, intentionally causing the return preparers to create tax returns for David Kiraz that did not report between $330,000 and $460,000 in door fees and stage fees each year. In this way, the defendants evaded $500,000 in income taxes for tax years 2007 through 2010.
The jury convicted David G. Kiraz, 34, of Happy Valley, his father George D. Kiraz, 56, of Portland, and David’s brother Daniel Kiraz, 31, of Portland, of conspiring to defraud the IRS by filing false federal income tax returns for David Kiraz. The jury also found David Kiraz guilty of three counts of filing false tax returns, George Kiraz guilty of three counts of aiding and assisting in the preparation and filing of false tax returns, and Daniel Kiraz guilty of one count of aiding and assisting in the preparation and filing of a false tax return. The jury acquitted Marci Kiraz, wife of David Kiraz.
Sentencing is scheduled August 30, 2016, before Senior U.S. District Court Judge Robert E. Jones for the District of Oregon in Portland. Each defendant faces a statutory maximum sentence of five years in prison on the charge of conspiracy to defraud the IRS and three years in prison on the charges of filing false tax returns and aiding and assisting in the preparation and filing of false tax returns. They also face a maximum term of three years of supervised release and a maximum fine of $250,000 on each count.
"Every business is required to pay its fair share of taxes," said U.S. Attorney Billy J. Williams. “This office, in partnership with the IRS, will vigorously investigate and prosecute business owners who take advantage of the cash-intensive nature of their businesses to conceal income from the IRS and cheat on their taxes.”
This case was investigated by special agents with IRS-Criminal Investigation in Portland, Oregon and prosecuted by Trial Attorney Leslie A. Goemaat of the Justice Department’s Tax Division and Assistant U.S. Attorneys Seth D. Uram and Quinn P. Harrington for the District of Oregon.
Portland Area Strip Club Operators Found Guilty of ConspiracyRead the Press Release
A federal jury sitting in Portland, Oregon found three family members who ran two strip clubs in the Portland area guilty of conspiracy to defraud the United States and charges relating to the filing of false tax returns after a six day trial, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Billy J. Williams of the District of Oregon announced.
David G. Kiraz, his father George D. Kiraz, and David’s brother Daniel Kiraz, ran two Portland-area strip clubs – Cabaret Lounge I at 503 W Burnside Street and Cabaret Lounge II at 17544 SE Stark Street – and engaged in a scheme to defraud the United States by filing false federal income tax returns with the Internal Revenue Service (IRS), according to the evidence presented at trial. In addition to finding the three guilty of conspiracy to defraud the United States, the jury found David Kiraz guilty of three counts of filing false tax returns, George Kiraz guilty of three counts of aiding and assisting in the preparation and filing of false tax returns, and Daniel Kiraz guilty of one count of aiding and assisting in the preparation and filing of false tax returns.
“The Kirazes engaged in a long-running conspiracy to defraud the U.S. Treasury and today, a jury held them accountable for their crimes,” said Acting Assistant Attorney General Ciraolo. “The department is committed to investigating and prosecuting individuals and entities who violate our nation’s tax laws and will seek incarceration, fines and restitution to send a clear message to other potential offenders.”
The evidence at trial showed that from 2007 through mid-2011, the strip clubs collected cash through both cover charges from customers and stage fees from dancers. In addition to stage fees, the dancers were routinely required to pay fines for various etiquette infractions. The defendants maintained a set of books at the Cabaret clubs which recorded the sales, lottery and ATM fees but not the stage and door fees. The defendants maintained a second set of books, which tracked all of the cash receipts including the stage and door fees, at the home of David Kiraz. A video played in court showed a 2010 meeting between George Kiraz and an undercover IRS agent posing as a prospective buyer of the strip clubs. The IRS undercover agent was given a copy of the Kirazes’ second set of books, including the stage and door fees, at that meeting.
Further evidence presented to the jury proved that the business activity of the strip clubs was reported each year on the individual income tax return of David Kiraz. The defendants gave their tax return preparers the false financial records maintained at the strip clubs, intentionally causing the return preparers to create tax returns for David Kiraz that did not report substantial amounts of cash obtained through cover charges, stage fees and fines. Their actions resulted in underreporting of taxable income of more than $1.5 million and caused a tax loss of more than $500,000 for tax years 2007 through 2010.
The date for the sentencing hearing before U.S. District Judge Robert E. Jones for the District of Oregon in Portland has not yet been set. Each defendant faces a statutory maximum sentence of five years in prison on the charge of conspiracy to defraud the United States and three years in prison on the charges of filing false tax returns or aiding and assisting in the preparation and filing of false tax returns. They also face supervised release and a maximum fine of $250,000 on each count.
This case was investigated by special agents with IRS-Criminal Investigations and prosecuted by Trial Attorney Leslie Goemaat of the Justice Department’s Tax Division and Assistant U.S. Attorneys Seth Uram and Quinn P. Harrington for the District of Oregon.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.