Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 7 April 2016
Franklin County Man Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – Stuart B. Millner was charged yesterday in connection with an alleged scheme to defraud clients and financial institutions in connection with the operation of his auction business, Stuart B. Millner & Associates (SBMA), and related entities.
According to the indictment, SBMA was engaged in the business of appraising, marketing, liquidating and auctioning assets from industrial and commercial facilities. SBMA entered into contracts with several clients to conduct auctions to sell their property and collect the proceeds from the sales, for which SBMA would receive a commission. But according to the indictment, Millner caused SBMA to misdirect sales proceeds that should have been held by SBMA for the benefit of its clients and to direct those proceeds to pay company expenses and debts owed by the company to previous clients. The indictment charges that this "Ponzi-like" activity violated several federal laws, including statutes criminalizing mail fraud and wire fraud.
The indictment also alleges that Millner caused SBMA to falsely report to customers that auctioned items had sold for less than they had in fact sold for, a misrepresentation that was designed to conceal Millner’s fraudulent activities. Millner is also accused of having made an application for loans on behalf of two other companies in which he submitted false financial statements. As a result of these activities, Millner is alleged to have caused at least $2.5 million in losses to clients and obtained in excess of $6 million in fraudulent loans from financial institutions.
Millner, Union, MO, was indicted by a federal grand jury late Wednesday on three felony counts of bank fraud, one felony count of mail fraud affecting a financial institution, four felony counts of wire fraud and two felony counts of mail fraud.
If convicted, each count of bank fraud and mail fraud affecting a financial institution carries a maximum penalty of 30 years in prison and/or fines up to $1 million; each of the other counts carry a maximum of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case is being investigated by the Federal Bureau of Investigation. Assistant United States Attorney Richard E. Finneran is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Former Nurse Sentenced for Stealing Narcotics from HospitalRead the Press Release
BOSTON – A former nurse at Baystate Franklin Medical Center in Greenfield, Mass. was sentenced today in U.S. District Court in Springfield for stealing pain medication from the hospital’s automated drug dispensing machine.
Daniel Herlocker, 41, of Brattleboro, Vt., was sentenced by U.S. District Court Judge Mark G. Mastroianni to two years of probation, including three months of home confinement. In January 2016, he pleaded guilty to acquiring and obtaining controlled substances by deception and subterfuge.
In the fall of 2014, while Herlocker was employed as a nurse at Baystate Franklin Medical Center, he diverted Dilaudid, also known as hydromorphone, and morphine from sterile cartridge units known as carpujects. The carpujects were stored in an automated drug dispensing machine. Herlocker syphoned the drugs from the carpujects with sterile needles and replaced the medications with sterile saline solution.
This case was brought as part of the federal response to the growing opioid abuse epidemic in Massachusetts and other New England states. Theft of controlled substances by medical professionals not only puts patients at risk when they are deprived of their medication, but also fuels the pipeline of illegal prescription opioids
United States Attorney Carmen M. Ortiz; Russell Hermann, Acting Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Monica Bharel, MD, MPH, Commissioner of the Massachusetts Department of Public Health, Division of Food and Drugs, Drug Control Program, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Branch Office.
Former Hedge Fund Manager Sentenced to 15 Years’ Imprisonment for Wire Fraud, Money Laundering, and Contempt of CourtRead the Press Release
SAN FRANCISCO – James Murray was sentenced to 15 years in prison announced U.S. Attorney Brian J. Stretch, FBI Special Agent in Charge David J. Johnson, and U.S. Secret Service Special Agent in Charge David Thomas. The sentence, handed down late yesterday, follows a jury conviction for 23 felonies—including wire fraud, money laundering, and aggravated identity theft—and contempt of court.
Murray, 47, formerly of Larkspur, was the sole member and investment advisor of Market Neutral Trading, LLC (MNT), a purported hedge fund. MNT’s marketing materials claimed the fund was audited by Jones, Moore & Associates (JMA), a sham entity that Murray started and controlled. After being charged in a criminal complaint with wire fraud in February of 2012, Murray was charged on March 17, 2015, in a fourth superseding indictment with 23 felonies including 16 counts of wire fraud, in violation of 18 U.S.C. § 1343; 4 counts of engaging in money transactions in criminally derived property, in violation of 18 U.S.C. § 1957; 2 counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1); as well as contempt of court, in violation of 18 U.S.C. § 401(3). On October 13, 2015, a jury convicted Murray of all the charges in the fourth superseding indictment.
According to the proof submitted at trial, beginning in 2007, Murray used JMA and MNT to defraud merchant banks and investors. Among the schemes devised by Murray was a scheme involving fraudulent credit card transactions in JMA’s merchant account. Murray used credit cards he controlled to process more than $650,000 in sham transactions, followed by fraudulent refunds on those same cards, leading to a loss of more than $550,000 to the credit card processing company.
Murray defrauded victim investors out of more than $2.5 million. Murray caused false and misleading marketing materials to be created and provided potential investors with false monthly performance numbers for the fund. For example, the materials indicated that the fund had been audited by accountants with JMA. Murray never disclosed JMA was not a real auditing firm and never disclosed that JMA did not actually conduct an audit and that the performance numbers in the JMA audit reports grossly overstated the performance of the fund in 2009. Murray also provided potential investors with a fake resume that included honors and a master’s degree he had never achieved.
The government produced evidence at trial that in July of 2012, Murray convinced a New York brokerage to advance 50,000 shares of stock in Netflix in order to complete a short sale stock transaction. Murray represented to the bank that at the time MNT had $5 million of assets available to invest, a fact Murray knew was not true.
In addition, the government produced evidence at trial that, while the case was pending, the Honorable Edward M. Chen, U.S. District Judge, issued an order setting conditions for Murray’s release on bond. According to Judge Chen’s order, Murray was prohibited from using a computer to access the Internet, prohibited from using a telephone other than at the halfway house, and prohibited from contacting witnesses. Murray nevertheless obtained a computer and used it to access the Internet, sent messages to and communicated with a witness in the case, and committed additional violations of the order. The evidence at trial established that Murray used the computer at his former attorney’s office when he was released from the halfway house for the purpose of meeting with his counsel. A search conducted pursuant to a warrant revealed Murray hid the computer above ceiling tiles in a conference room in his former attorney’s office. In its memorandum to the court requesting that Murray be sentenced for his crimes, the government argued, “[i]n the world of economic criminals, the unrelenting nature of defendant’s non-stop crime spree and his willingness to victimize anyone and everyone he encounters (his wife, his closest friends, his parents, elderly retirees, credit card companies, investment banks, on-line trading firms, and, most disturbingly, this Court) sets him apart as among the worst white collar defendants to have stood trial in this district for many years.”
The sentence was handed down by Judge Chen. In addition to the prison term, Judge Chen also sentenced Murray to three years’ supervised release following his incarceration.
Assistant U.S. Attorneys Robin Harris and Lloyd Farnham are prosecuting the case with the assistance of Jessica Meegan. The prosecution is a result of an investigation by the FBI and U.S. Secret Service.
Former General Counsel for BVU Pleads GuiltyRead the Press Release
ABINGDON, VIRGINIA – For the second time in as many days, a former official with the Bristol Virginia Utilities Authority pled guilty to federal conspiracy charges United States Attorney John P. Fishwick Jr. announced today.
G. Walter Bressler, 73, of Bristol, Virginia, waived his right to be indicted and pled guilty this afternoon in the United States District Court for the Western District of Virginia in Abingdon to a one count Information charging him with conspiracy to commit program fraud and having knowledge of the actual commission of felony and concealing such felony from the United States.
“Mr. Bressler had a requirement as general counsel for BVU to ensure they were following the law and he failed in that duty,” United States Attorney John P. Fishwick Jr. said today. “
“Public corruption, which includes the illegal mishandling of taxpayer funded programs, is the FBI’s highest criminal investigative priority. The Bristol Virginia Utilities Authority mess is an example of what can happen when corruption is tolerated by government officials and employees,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division.
“Today’s plea is a reminder that IRS-CI will remain vigilant in our investigation of these financial fraud schemes and will continue working with our law enforcement partners to combat this type of criminal conduct,” said Thomas Jankowski , Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office.
According to evidence presented at today’s hearing by Assistant United States Attorney Zachary T. Lee, Bressler was employed as General Counsel for BVU from January 1, 2009 to March 1, 2015. As part of his duties as General Counsel, Bressler was involved in the negotiations between Company #1 and BVU. BVU entered into an agreement with Company #1 that if BVU signed a contract for services with Company #1, then Company #1 would pay to entertain BVU executives, to include Bressler, and BVU Board Members and employee during a site visit in Dallas, Texas in November 2011. This entertainment included the payment of hotel expenses, limousine services, meals and tickets to a Dallas Cowboys football game, including access to a luxury box. In all, Company #1 paid more than $10,000 to entertain BVU executives and Board Members during the weekend of November 5, 2011 and November 8, 2011. Company #1 entered into a contract with BVU for the amount of $4,496,096.
On or about and between August 2013 and September 31, 2013, allegations of misconduct on the part of Wes Rosenbalm were brought to the attention of the BVU Board of Directors and Bressler. These allegations were discussed in multiple board meetings during executive sessions, during which Bressler was present.
On September 16, 2013 a BVU Board of Directors Meeting was held, after entering into executive session, the BVU Board of Directors, with Bressler present, discussed the implications of the alleged misconduct of Rosenbalm, specifically the BVU Board of Directors discussed the receipt of tickets by Rosenbalm from vendors and contractors engaged in business with BVU and the implications that the acceptance of those gifts violated the Virginia Procurement Act.
BVU Board Members also discussed the possibility that vendors who were not awarded contracts in favor of those who gave gifts were going to “raise all kinds of ruckus.” During the course of the executive session, board members, with Bressler present, discussed the possibility that other BVU employees, specifically, Stacy Pomrenke and David Copeland, were also mentioned as being involved in illegal activity associated with vendors of BVU.
During the September 16, 2013 executive session, BVU Board Members, with Bressler present, had specific discussions about violations of federal law, the types of violations that had occurred and the consequences of those violations. However, following those discussions neither any of the Board Members or Bressler decided to contact law enforcement with the information that state and federal law had been violated, but instead determined it was best to provide Wes Rosenbalm with a severance package in hopes that any allegations of misconduct by Rosenbalm, other BVU employees, or BVU Board Members would not be made public or become known to law enforcement.
On or about September 25, 2013, the BVU Board of Directors entered into an agreement with Rosenbalm to pay Rosenbalm a severance package of $269,420 in return for his resignation as CEO of BVU.
BVU Board Member #1, independently, and without support of the Board of Directors, brought his concerns about misconduct at BVU to the attention of law enforcement on or about October 21, 2013.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Zachary Lee and Special Assistant United States Attorney Kevin Jayne prosecuted the case for the United States.
Former Bethany-Warr Acres Public Works Authority Official is Sentenced to Serve 37 Months in Prison for Wire Fraud and Tax FraudRead the Press Release
Oklahoma City, Oklahoma – Yesterday, HELEN ROSE DEWEY, 61, of Oklahoma City, was sentenced by United States District Judge Vicki Miles-LaGrange to serve 37 months in federal prison for wire fraud and tax fraud, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
The Bethany-Warr Acres Public Works Authority (Authority) owned and operated the Bluff Creek Wastewater Treatment Plant to furnish public and municipal services for the cities of Bethany and Warr Acres. Dewey began her employment as a secretary at the treatment plant in 1988. Throughout her career, Dewey gained more responsibilities and eventually became the Executive Assistant to the Director of the treatment plant in 2010. Her primary duties included purchasing and accounts payable where she purchased supplies and other items for the treatment plant. As part of her duties, Dewey was authorized to use Authority credit cards to make purchases for the wastewater treatment plant.
According to court records, beginning in January 2008 and continuing to August 2013, Dewey embezzled from the Authority by using the Authority’s credit cards to make unauthorized purchases. The majority of the purchases involved gift cards ranging from $25 to $200 in value. Dewey also used the credit cards to buy personal items. In addition, during 2012 and 2013, Dewey embezzled money from the petty cash fund. To conceal her activity, Dewey altered purchase orders and blocked out itemized purchases listed on receipts and falsified claims for approval and payment by the Authority. It was also alleged that Dewey falsified her federal tax return for 2012 by grossly under-reporting her income.
Dewey was charged by Information on October 28, 2015. She pled guilty on November 12, 2015, to committing wire fraud and tax fraud.
Yesterday, Dewey was ordered to serve 37 months in prison, followed by three years of supervised release, and pay $974,034 in restitution to the Bethany-Warr Acres Public Works Authority and $233,674 in restitution to the IRS.
Reference is made to the court record for further information.
This case is the result of an investigation by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Kerry Kelly.
Federal Jury Convicts St. Johns County I.T. Specialist of Attempted Online Enticement of A Minor, Advertising for Child Pornography, and Attempted Production of Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Jon Christopher Stoune (44, Jacksonville) guilty of attempted online enticement of a child to engage in illegal sexual activity, advertising for child pornography, and attempted production of child pornography. On the attempted enticement count, Stoune faces a minimum mandatory penalty of 10 years, up to life, in prison. He faces a minimum mandatory penalty of 15 years, up to 30 years, in federal prison for each of the other charges. His sentencing hearing is scheduled for June 20, 2016.
According to evidence presented at trial, during March and April 2015, Stoune engaged in a series of online conversations with a person whom he believed to be a 14-year-old child. The "child" was actually a detective from the St. Johns County Sheriff’s Office. During the course of these conversations, Stoune discussed in detail his desire to have sex with and obtain pornographic pictures of the “child.” On April 21, 2015, Stoune drove to St. Augustine Beach to meet the “child” for sex. He was arrested at the meeting location by officers from the St. Johns County Sheriff's Office. Officers recovered a digital camera, several sex toys, and condoms from Stoune’s pants pocket. A search of his vehicle revealed, among other things, a backpack containing a leather whip, a wooden paddle, a billy club, nylon restraints, and other items designed for use in sadomasochistic activity.
This case was investigated by the St. Johns County Sheriff’s Office, the Volusia County Sheriff’s Office, the St. Augustine Beach Police Department, and the Federal Bureau of Investigation. It was 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.
Eagle Butte Woman Sentenced for LarcenyRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman convicted of Larceny was sentenced on April 4, 2016, by U.S. District Judge Roberto A. Lange.
Melissa Wolf Black, age 34, was sentenced to 15 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Wolf Black was indicted by a federal grand jury on November 10, 2015. She pled guilty on January 7, 2016.
The conviction arose from a June 26, 2015, incident involving Wolf Black and the Lindskov Motors Dealership in Eagle Butte. After Wolf Black expressed an interest in purchasing a pickup truck, an employee of Lindskov Motors gave her a test ride around town. Wolf Black was not allowed to drive because she appeared intoxicated. Sometime thereafter, while Wolf Black and the employee were back at the dealership, Wolf Black took the keys to the truck without permission. While Wolf Black was driving the truck later that evening, Cheyenne River Sioux Tribal police officers stopped her for failure to stop at a red light. Wolf Black was intoxicated and told the officers she had purchased the vehicle earlier that day. The officers were unable to find the registration or proof of purchase in the truck.
Lindskov Motors confirmed that the vehicle, which was worth $37,000, had been taken without permission. Wolf Black admitted she had stolen the truck and had just been released from prison in May 2015 after serving time for stealing a different truck.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Wolf Black was immediately turned over to the custody of the U.S. Marshals Service.
# # #
Drug Trafficker Pleads GuiltyRead the Press Release
EUGENE, Ore. – On April 7, 2016 Rafael Zapien, 23, a Mexican citizen, pleaded guilty before U.S. District Judge Ann Aiken, to possessing heroin and methamphetamine with the intent to distribute.
On August 4, 2014, a Benton County deputy sheriff stopped a vehicle being driven by Zapien on Highway 20 for speeding and suspicion of drunk driving. A drug detection dog later alerted on a plastic container inside the vehicle’s center console that contained one pound of heroin and four pounds of methamphetamine. Zapien’s fingerprints were on the container.
Zapien’s sentencing hearing is scheduled on September 7, 2016; he is faces a maximum sentence of twenty years in prison.
The investigation of this case was conducted by the DEA and Benton County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Frank R Papagni, Jr. with the assistance of the Benton County District Attorney John Haroldson and Deputy District Attorney Carrie Wineland.
Delray Beach Man Sentenced for Making and Possessing Counterfeit CurrencyRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Jaret Santa (26, Delray Beach) to one year and one day in federal prison for his role in a conspiracy to make, possess, and pass counterfeit Federal Reserve notes. As part of his sentence, the Court also ordered him to pay $3800 in restitution to his victims. Santa pleaded guilty on October 6, 2015.
According to court documents, in January and February 2015, Santa passed counterfeit $100 bills at various retail locations in southwest Florida. Law enforcement officers apprehended Santa and his co-conspirator, Peter Bonfiglio, after they had just paid for merchandise using a counterfeit $100 bill. Following their arrests, deputies located $4600 in counterfeit $100 bills in Santa’s car.
Bonfiglio (29, North Port) previously pleaded guilty and was sentenced to two years and one month in federal prison for his role in this case.
This case was investigated by the United States Secret Service, with assistance from the Charlotte County Sheriff’s Office and the Sarasota County Sherriff’s Offices. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Del Rio Man Pleads Guilty to Federal Cyberstalking and Child Pornography ChargesRead the Press Release
In Del Rio, 27-year-old Michael Martinez faces up to ten years in federal prison after pleading guilty to federal charges involving online sextortion, cyberstalking and child exploitation announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Alia Moses yesterday afternoon, Martinez pleaded guilty to two counts of cyberstalking and one count of receipt of child pornography. By pleading guilty, Martinez admitted that from October 2013 to August 2014, he caused emotional distress to multiple female victims--one of whom was a minor--by using a fictitious Facebook account, email accounts and text messages to harass, threaten and intimidate them. Furthermore, Martinez admittedly threatened to post nude photographs he had of the victims on the Internet and send the photographs to their respective family and friends unless the victims continued to supply him with additional sexually explicit photographs. The minor victim complied with his threat and sent him nude photographs that he received and stored on multiple electronic devices.
On August 21, 2014, FBI agents executed a search warrant at the defendant’s residence. During the execution of the search warrant, investigators seized several computers, an assortment of computer related storage devices and the defendant’s cell phone. A forensics examination of the seized items revealed the presence of approximately a dozen images of the minor victim engaged in sexually explicit conduct.
Martinez has remained in federal custody since his arrest on August 13, 2015. Sentencing is scheduled for 9:00am on September 8, 2016, before Judge Moses in Del Rio.
This case is being 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 http://www.justice.gov/psc.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Ralph Paradiso is prosecuting this case on behalf of the Government.
Davenport Man Sentenced to Prison for Enticement of a MinorRead the Press Release
DAVENPORT, IA – On March 6, 2016, John Michael Riepe, 31, of Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 151 months in prison for enticement of a minor, announced Acting United States Attorney Kevin E. VanderSchel. Riepe was ordered to serve ten years of supervised release following his prison term and to pay $100 to the Crime Victims’ Fund. Riepe was also ordered to comply with sex offender registry requirements and have no contact with any minors under the age of 18 years old.
Riepe was found guilty of enticement of a minor on August 19, 2015, after a three day jury trial. At trial, evidence was presented that Riepe sent a letter to a minor student at Pleasant Valley High School providing a picture and his phone number. The letter was turned over to the Scott County Sheriff’s Office. Det. Rachelle Kunde initiated contact with Riepe at the phone number he provided, and purported to be the minor victim. The two sent text messages back and forth beginning in September 2014. In the text messages, Riepe suggested meeting and having sexual contact. On October 30, 2014, Riepe was arrested when he arrived at a location where he intended to pick up the minor victim.
Additional evidence presented at trial showed Riepe had initiated prior contacts with several minor females in the past, which led to being banned from area high schools and their facilities.
This matter was investigated by the Scott County Sheriff’s Department, United States Marshals Service, Bettendorf Police Department, Davenport Police Department, and the Iowa Internet Crimes Against Children Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Childhood initiative.
Corona Man Arrested on Federal Charges Related to Scheme to Steal, ‘Wash’ and Cash Checks Stolen from the U.S. MailRead the Press Release
RIVERSIDE, California – A Corona man who had a stolen, blue mail-collection box in his living room was arrested today on federal charges that allege he stole mail, “washed” checks that he found and cashed the checks using a stolen identity.
Paul Wagner, 28, was arrested this morning without incident and is expected to be arraigned in United States District Court this afternoon on a three-count indictment.
Wagner is charged with bank fraud, aggravated identity theft and possession of stolen mail.
Wagner allegedly participated in a scheme that stole mail to find checks. Once Wagner obtained the checks, he would “wash” the checks – meaning that he would remove the payee’s name by physically scraping off the ink or using chemicals to erase the ink. After the check had been washed, Wagner altered the payee to make the check payable to the name of the identity theft victim, according to the indictment.
The indictment specifically alleges that Wagner cashed a check at a Bank of America branch on November 15, 2015 using a driver’s license with the name of an identity theft victim.
During a search of residence on March 1, authorities recovered hundreds of stolen checks, check-washing materials, and a large mail collection box that had been stolen from a street in Riverside.
“The frequency of mail theft is rising at a concerning rate across Southern California,” said United States Attorney Eileen M. Decker. “This criminal activity harms both individuals and businesses in large numbers, and we appreciate the efforts of the Postal Inspection Service in combating this trend.”
Robert Wemyss, Inspector in Charge of the Postal Inspection Service’s Los Angeles Division, noted, “Anyone who attempts to remove mail from a U.S. mail receptacle should be aware that Postal Inspectors, with the full cooperation of their law enforcement partners, will vigorously pursue, arrest, and bring to justice anyone who commits a crime against the U.S. Postal Service or its customers.”
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.
If he convicted of the charges in the indictment, Wagner would face a statutory maximum sentence of 37 years in federal prison.
This case was investigated by the United States Postal Inspection Service and the Riverside County Sheriff’s Department.
Convicted Sex Offender from Albuquerque Sentenced to Ten Years for Possessing Child PornographyRead the Press Release
ALBUQUERQUE – Michael Lippke, 71, a previously convicted sex offender residing in Albuquerque, N.M., was sentenced today in federal court to ten years in prison followed by five years of supervised release for possessing child pornography. Lippke will be required to register as a sex offender after he completes his prison sentence. Lippke was also ordered to pay $10,000 in restitution to the victims depicted in the child pornography involved in his crimes of conviction.
Lippke was arrested on July 16, 2015, on an indictment charging him with two counts of distribution of visual depictions of minors engaged in sexually explicit conduct and seven counts of possessing visual depictions of minors engaged in sexually explicit conduct. The indictment charged Lippke with distributing child pornography on July 20, 2014 and July 22, 2014, and possessing child pornography between Aug. 21, 2010 and Dec. 10, 2014, on several computers and computer-related media. According to the indictment, the nine offenses were committed in Bernalillo County, N.M.
On Jan. 8, 2016, Lippke pled guilty to the seven possession of child pornography charges, and admitted possessing child pornography from Aug. 21, 2010 through Dec. 10, 2014.
This case was investigated by the Albuquerque office of the Homeland Security Investigations and the Office of the New Mexico Attorney General, with assistance from the 2nd Judicial District Attorney’s Office. All are members of the New Mexico Internet Crimes Against Children (ICAC) Task Force.
The case was prosecuted by Assistant U.S. Attorney Sarah Mease as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the Office of the New Mexico Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement. This case was investigated by the ATF office in Albuquerque and APD.
The case was also prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Buffalo Man Pleads Guilty to Sex Trafficking Charges as Trial Was About to BeginRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today Anthony Thompson, a/k/a Fresh Tone, 35, of Buffalo, NY, pleaded guilty to sex trafficking of a minor before U.S. District Judge Richard J. Arcara. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum penalty of life and a fine of $250,000.
“Today’s conviction, together with this week’s arrest of two other defendants for production of child pornography, depicts the dark side of modern communication devices and applications” said U.S. Attorney Hochul. “The cases also serve as a warning to all of the many ways predators seek to manipulate children through technology into engaging in sexually explicit conduct. By education and dialogue, such conduct – which criminals would otherwise seek to keep in the shadows – can be exposed and prevented.”
"This investigation highlights HSI's commitment to identify and investigate trafficking threats, as well as protect victims' rights and bring traffickers to justice," said ICE-HSI Special Agent in Charge James Spero. "We will continue to work tirelessly with our law enforcement partners to dismantle human trafficking networks in our community."
Assistant U.S. Attorneys Marie Grisanti and Trini E. Ross, who are handling the case, stated that Thompson engaged in the sex trafficking of two adults and one minor, between November 2012 and September 2014. The defendant recruited and enticed the three victims to engage in commercial sex acts at his direction. One of the victims was recruited through social media. Thompson then advertised the availability of the victims on social media including “Backpage.com.” The defendant also required that some victims “walk the streets” in order to attract customers for commercial sex. As a result, Thompson received all the money earned from the commercial sex acts by the victims.
Thompson pleaded guilty today as a federal jury was to begin hearing evidence involving the charges against him. Included in the Government’s evidence was a rap video showing the defendant’s state of mind regarding prostitution and prostitutes.
Rap lines included:
• “I'm the s--- I had a lot of hoes... And when they left I went and got some more. I rap to em then them b------ want to rock and roll. Ha. You think I'm playin' but I'm really pimpin'. I don't do the 50/50 with em.”
• “Papa's fat and I don't ever wanna diet. I sell dreams and these b------ really buy it. You wanna work bring some money and you hired.”
In a social media posting, the defendant describes the sexual exploitation of women as “tha best thing goin.” Thompson also compares the sale of women to the sale of narcotics, “U can sell it n still have it after you sell it. It goes nowhere….u don’t have to re up, or u not riskin years n jail.”
U.S. Attorney Hochul further stated “while the likely sentence will prevent this defendant from victimizing any other young women, the public at large must be on alert and vigilant for other potential predators.”
The plea is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the Cheektowaga Police Department, under the direction of Chief David Zack.
Sentencing is scheduled for July 21, 2016 at 1:00 p.m. before Judge Arcara.
Basin Man Convicted of Clean Water Act Violations and Destruction of US PropertyRead the Press Release
MISSOULA – Following a four day federal trial, a Montana jury found Joseph David Robertson, 77, guilty on two counts of unauthorized discharge of pollutants into waters of the United States and one count of injury or depredation of United States property.
Robertson was indicted by a grand jury in May of 2015 as a result of illegal ponds he built on two parcels of land near Basin, Montana, one on Beaverhead-Deerlodge National Forest land and the other on adjacent private property. The ponds resulted in the discharge of dredged and fill material into a tributary stream and adjacent wetlands and caused widespread damage to both properties.
At trial, the government introduced evidence that in October of 2013, a United States Forest Service (USFS) Special Agent visited the National Forest property to determine whether Robertson had complied with previously issued conditions of probation for misdemeanor violations of USFS regulations. The Agent testified at trial that during the site visit, she observed multiple ponds dug into an existing stream on both USFS and adjacent private property.
During a subsequent site visit in November of 2013, Robertson admitted to Environmental Protection Agency (EPA) and USFS Criminal Special Agents that he had performed the work on the National Forest property using an excavator. State and federal officials visited the site again in May of 2014, and observed that Robertson had done additional work. The site was now approximately 1.2 acres in size, and extended beyond the National Forest property to a private property that he did not own. The work consisted of nine ponds of varying sizes, including some as large as approximately 4900 square feet that were placed directly in the stream and wetlands area. Unconsolidated dredged material from the ponds had been used to create the berms and had been placed in and around the stream and wetlands. Robertson admitted that he had completed the additional work. Additional investigation revealed that Robertson continued to construct ponds on the USFS property after May of 2014, despite being told repeatedly that he had no legal right to do so.
One of the central legal issues at trial was whether the waters polluted by Robertson were “waters of the United States” for purposes of the Clean Water Act. The United States introduced evidence and expert testimony from the Army Corps of Engineers and the EPA that the stream and wetlands had a significant nexus to traditional navigable waters, and therefore were “waters of the United States.” Fishery biologists from the Montana Fish, Wildlife and Parks (FWP) and the USFS testified that this headwater and wetland complex provided critical support to trout in downstream rivers and fisheries, including the Boulder and Jefferson Rivers.
“This verdict sends a message that the United States will not stand by and allow streams and wetlands of the United States to be polluted, or National Forest lands to be injured,” said United States Attorney for the District of Montana Mike Cotter. “Clean and healthy waterways are a critical resource for all forms of life and are a Montana value. It is imperative that we protect this increasingly scarce resource. The collaborative efforts of multiple state and federal agencies in cases like this help ensure that individuals who seek to degrade it will be held accountable.”
“Rivers, streams and wetlands provide essential habitat for fish and wildlife which must be protected, and EPA and its law enforcement partners are committed to protecting these invaluable natural assets as well as the communities around them,” said Jeffrey Martinez, Special Agent in Charge of EPA’s criminal enforcement program in Montana. “The defendant’s illegal activity took place not only on public land but also on private property he didn’t own. Today’s guilty verdict demonstrates that polluters will be held accountable for their actions."
The case was prosecuted by Assistant U.S. Attorney Bryan Whittaker and Special Assistant U.S. Attorney Eric Nelson from the United States Environmental Protection Agency. This case was investigated by multiple state and federal agencies including the United States Forest Service, the Environmental Protection Agency Criminal Investigation Division, the Army Corps of Engineers, and the Jefferson County Sheriff’s Office. Other agencies that assisted the investigation included Montana Fish, Wildlife and Parks and the Jefferson Valley Conservation District.
Albuquerque Man Sentenced to Federal Prison for Robbing US Bank Branch in January 2015Read the Press Release
ALBUQUERQUE – Joshua Hicks, 31, of Albuquerque, N.M., was sentenced today in federal court to 46 months in prison for robbing the US Bank Branch located on Carlisle Blvd. NE in Albuquerque, in Jan. 2015. Hicks will be on supervised release for three years after completing his prison sentence.
Hicks was arrested Feb. 9, 2015, based on a criminal complaint charging him with robbing the US Bank branch on Jan. 2, 2015. According to the criminal complaint, Hicks robbed the bank on Jan. 2, 2015, by handing the bank teller a crumpled hand written note which included the words “have gun,” “robbed” and “money.” The teller recognized it as a robbery note and handed money over to Hicks who then left the bank.
Hicks was indicted on Feb. 10, 2015, and charged with committing a bank robbery in Bernalillo County, N.M., on Jan 2. 2015. Hicks pled guilty to the indictment without the benefit of a plea agreement on Sept. 14, 2015.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and was prosecuted by Assistant U.S. Attorney Norman Cairns.
Acoma Pueblo Man Pleads Guilty to Domestic Assault by a Habitual Offender ChargeRead the Press Release
ALBUQUERQUE – Darrell Chino, Jr., 34, an enrolled member of Acoma Pueblo who resides in Acomita, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a domestic assault by a habitual offender charge. Under the terms of his plea agreement, Chino will be sentenced within the range of 33 to 57 months in federal prison followed by a term of supervised release to be determined by the court.
Chino was arrested on Sept. 23, 2015, on a criminal complaint charging him with domestic assault of an intimate partner by a habitual offender on Aug. 18, 2015, in Cibola County, N.M. According to the complaint, on Aug. 18, 2015, Chino assaulted an Acoma Pueblo woman by placing his hands around the victim’s throat, shoving her to the ground and attempting to kick her. Chino was subsequently indicted on the same charge on Sept. 22, 2015. Court records indicate that Chino had previously been convicted of assault against a household member in 2011 and 2012, in the 2nd Judicial District Court for the State of New Mexico.
During today’s proceedings, Chino pled guilty to a felony information charging him with domestic assault by a habitual offender and admitted that on Aug. 18, 2015, he assaulted his intimate partner by grabbing her throat and throwing her to the ground causing her to suffer bodily injury. Chino committed the crime in Acoma Pueblo in Cibola County. Chino also acknowledged that he had at least two prior domestic assault convictions. Chino remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Acoma Pueblo Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney Sarah Mease.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
2016 National Crime Victims’ Rights WeekRead the Press Release
Every April, National Crime Victims’ Rights Week (NCVRW) is held to promote victims’ rights and to honor crime victims and those who advocate on their behalf. This year’s NCVRW will be held April 10-16 and the theme, “Serving Victims. Building Trust. Restoring Hope” presents the opportunity to highlight the diversity of our communities, expand partnerships to serve victims of crime, enhance efforts to meet victims where they are, and empower crime victims as they pursue justice and recovery.
The U.S. Attorney’s Office announced today that it has partnered with the 6th Judicial Department of Correctional Services, Horizons - A Family Service Alliance, UnityPoint Health Child Protection Center, Waypoint, Riverview Center, Cedar Rapids Police Department, Deaf Iowans Against Abuse, Cedar Valley Friends of the Family, Marion Police Department, the Linn County Attorney’s Office and concerned citizens to host events in the Cedar Rapids area throughout the week. These events encourage community members to be engaged, to empower victims, and to provide an opportunity to honor those impacted by crime.
“Every year, millions of people are impacted by crime. This week is a time to celebrate progress, raise awareness of victims’ rights and services, and stand with those whose lives have been altered by crime,” said U.S. Attorney Kevin W. Techau. “My office is committed to ensuring victims are treated fairly, with dignity and respect, and are afforded their statutory rights.”
The Opening Ceremony will be held on Sunday, April 10 at 1:00 p.m. at the Marion Police Department. Denise Stapley, winner of the reality show Survivor: Philippines and a Licensed Mental Health Therapist in Cedar Rapids will be the keynote speaker. The community is invited to join city leaders, members of law enforcement, advocates of victims' rights, crime victims, survivors, and their families as they remember those who have been victimized, honor those working in the field, and focus on the need for justice and support for those impacted by crime. Sign language interpreters will be present during the ceremony.
At the Opening Ceremony the United States Attorneys’ Offices for the Northern and Southern Districts of Iowa will present the annual Victim Service Awards. Kyle Paxton, a Medicaid Fraud Unit Investigator with the Iowa Department of Inspections and Appeals, will receive the 2016 Law Enforcement Victim Service Award for his work involving a case of abuse in an elder group home. The 2016 Award of Excellence in Victim Service will be presented to Holly Elliott, a Victim-Witness Coordinator with the Dubuque County Attorney’s Office, for her work with crime victims and in developing training and standards for victim service providers.
Also, at the event on Sunday, the Linn County Attorney’s Office will present the Jennifer Clinton Domestic Violence Service Award. This year’s recipient is Officer Nicole Hotz with the Marion Police Department. Officer Hotz went above and beyond the call of duty to assist a victim of domestic abuse providing support, concern and compassion in a professional manner.
On Tuesday, April 12, the 6th Judicial Department of Correctional Services will hold a Victim Empathy Circle at the William G. Faches Center. This is a closed event in which clients on correctional supervision focus on honoring victims and developing empathy for the harm their actions have caused to their victims and the community through participation in a healing circle.
On Friday, April 15, from 7:00 to 8:30 p.m. there will be a Candlelight Vigil for Victims of Homicide held at Horizons – A Family Service Alliance located at 819 - 5th Street SE Cedar Rapid, IA. Dr. Jim Coyle will be the keynote speaker discussing Companioning Grief. Dr. Coyle has been a first responder for 33 years. His life mission has focused on assisting individuals through traumatic events.
On Saturday, April 16, at 9:00 a.m. the 10th Annual Go the Distance for Crime Victims 5K Run/Walk will take place at Thomas Park in Marion. To register go to www.gothedistance5k.com. Funds raised from this event are used to reimburse victims for financial losses as a result of a crime.
National Crime Victims’ Rights Week honors and celebrates the achievements of the past 30 years in securing rights, protections, and services for victims. The bipartisan Victims of Crime Act (VOCA), passed by Congress in 1984, created a national fund to ease victims’ suffering. Financed by fines and penalties paid by offenders, the Crime Victims Fund supports services for victims of all types of crime, including assistance for homicide survivors, survivors of child sexual abuse, and victims of human trafficking as well as rape crisis centers and domestic violence programs among others. VOCA also funds victim compensation programs that pay victims’ out-of-pocket expenses such as counseling, funeral expenses, and lost wages.
For additional information about the 2016 National Crime Victims’ Rights Week and how to assist victims in your community, please contact the U.S. Attorney’s Office, Northern District of Iowa or visit www.justice.gov/usao-ndia. For additional ideas on how to support victims of crime, visit the Office for Victims of Crime website, www.ovc.gov.
Follow us on Twitter @USAO_NDIA.
*****media Advisory*****Read the Press Release
April 10-11, 2016 Events Featuring Sam Quinones, Author of “Dreamland: The True Tale of America’s Opiate Epidemic,” Hosted by Healing Addiction in our Communities (HAC), Bernalillo County, UNM Health Sciences Center
ALBUQUERQUE – The community is invited to attend a free book signing and keynote address by Sam Quinones, acclaimed author of “Dreamland: The True Tale of America’s Opiate Epidemic” this Monday, April 11, 2016, at the African American Performing Arts Center. Doors open at 5:00 pm at the center, located at 310 San Pedro Drive NE at Expo New Mexico.
New Mexico faces a major public health and public safety crisis, a true epidemic of heroin and opioid addiction that is tearing families apart, draining public resources, creating a new generation of addicts, and leading to an unprecedented number of overdose deaths. Although medical science and law enforcement have key roles in responding to this crisis, treatment and prosecution are not enough. A coalition comprised of Healing Addiction in our Community (HAC), Bernalillo County and the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative partnership between the UNM Health Sciences Center and the U.S. Attorney’s Office (collectively, the Coalition) is working to create and implement new strategies for education, prevention and intervention to turn the tide against this epidemic.
The Coalition has come together to provide two days of community education and awareness through a series of events in Albuquerque featuring Sam Quinones, acclaimed author of “Dreamland: The True Tale of America’s Opiate Epidemic,” a book that recounts the personal journeys of addicts, drug traffickers, doctors, pharmaceutical executives, law enforcement officers, and the many families affected by the disease of addiction. “Dreamland” helps us understand how prescription painkillers spawned a new generation of heroin addicts and how heroin traveled from Mexico to Santa Fe and Española. The book offers hope for a better future.
During the community education and awareness events, which are described below, Sam Quinones will join members of the Coalition and the community as we look back over the past five years in New Mexico, share the journey and results of our efforts, and discuss where we are today and our hopes for the future. Sam Quinones and Coalition members will be participating in the events described below, some of which are open to the media.
Sunday, April 10, 2016
7:00 pm – 8:30 pm
Scalo Northern Italian Grill
A “meet and greet” reception for Sam Quinones will be hosted by Scalo Northern Italian Grill. This event is sold-out and is not open to the media.
Monday, April 11, 2016
6:30 am – 8:00 am
KRQE-TV
Sam Quinones, U.S. Attorney Damon P. Martinez and Bernalillo County Commissioner Maggie Hart Stebbins will be guests on KRQE This Morning.
9:15 am – 10:00 am
KNME-TV/New Mexico PBS
Sam Quinones will be interviewed by Megan Kamerick for KNME’s New Mexico in Focus program that will air on a date to be announced in the near future.
10:30 am – 11:00 am
Serenity Mesa Youth Recovery Center
Sam Quinones and HAC Executive Director Jennifer Weiss-Burke will tour Serenity Mesa Youth Recovery Center, a sober living facility for adolescents and young adults ages 14-21 who are struggling with addiction. This event is not open to the media.
12:00 pm – 12:30 pm
UNM Domenici Auditorium
Domenici Center for Health Sciences Education
1001 Stanford Drive NE
University of New Mexico
Chancellor Paul B. Roth of the UNM Health Sciences Center and Dean Lynda Welage of the UNM College of Pharmacy will host a ceremony during which FBI Special Agent in Charge Terry Wade will present the 2015 FBI Director’s Community Leadership Award to the UNM College of Pharmacy for its outstanding contribution to preventing drug abuse through its “Generation Rx” education and community awareness program. Sam Quinones, U.S. Attorney Damon P. Martinez, Bernalillo County Commissioner Maggie Hart Stebbins, HAC Executive Director Jennifer Weiss-Burke and DEA Assistant Special Agent in Charge Sean R. Waite will attend the ceremony.
This event is OPEN PRESS. Inquiries regarding logistics should be directed to Frank Fisher at 505-889-1438 (office), 505-681-8906 (cell).
12:30 pm – 1:45 pm
UNM Comprehensive Cancer Center
Chancellor Paul B. Roth and the UNM Health Sciences Center, as part of the New Mexico HOPE Initiative, will host Sam Quinones at a luncheon and informal meet and greet to discuss the opioid epidemic afflicting New Mexico. Participants will include U.S. Attorney Damon P. Martinez, Bernalillo County Commissioner Maggie Hart Stebbins, HAC Executive Director Jennifer Weiss-Burke, FBI Special Agent in Charge Terry Wade, DEA Assistant Special Agent in Charge Sean R. Waite and other representatives from HAC, Bernalillo County, the U.S. Attorney’s Office, DEA and FBI. This event is not open to the media.
5:00 pm – 8:30 pm
African American Performing Arts Center
Expo New Mexico
310 San Pedro Drive NE
Sam Quinones will deliver a keynote address at 6:30 p.m., followed by a roundtable discussion that will be moderated by Emmy Award winning documentary producer Chris Schueler. Doors will open at 5:00 pm, with a book signing at 5:30 pm. The event will conclude at 8:30 pm following closing remarks by Bernalillo Commissioner Maggie Hart Stebbins. Refreshments will be served. THIS EVENT IS FREE AND OPEN TO THE PUBLIC.
The following individuals will participate in the roundtable discussion:
HAC – Executive Director Jennifer Weiss-Burke
APS –Susan McKee, Counseling Manager, Prevention/Intervention
U.S. Attorney Damon P. Martinez
DEA Assistant Special Agent in Charge Sean R. Waite
UNM Health Sciences Center – Dr. Joanna Katzman, Director, UNM Pain Center
Bernalillo County – Bill Wiese
Dreamland Author – Sam Quinones
This event is OPEN PRESS. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 or [email protected].
A public service announcement and a GovTV segment of “Conversations with the Commissioner” regarding the main Dreamland event may be viewed at: https://www.youtube.com/watch?v=_Lo1RJasPd4 and https://www.youtube.com/watch?v=C1pFsODGjao.
Healing Addiction in Our Community (HAC) is a non-profit organization that was founded 6 years ago by a group of concerned parents and grandparents. HAC is dedicated to providing education and awareness to our community about the heroin and opiate epidemic that plagues our state. HAC provides the voices for those who have lost their lives to addiction and for those who continue to struggle.
Bernalillo County Commissioner Maggie Hart Stebbins is proud to sponsor this community outreach effort and promote more awareness of heroin and opioid abuse in New Mexico. Commissioner Hart Stebbins is the driving force behind the Bernalillo County Opioid Accountability Initiative, collective impact strategy working to align the activities of government, nonprofit, healthcare, law enforcement, and community leaders to strengthen systems that address the use and abuse of prescription opioids and heroin.
The New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic which has had a disproportionately devastating impact on New Mexico and because the consequences of heroin and opioid use affect all New Mexicans by impacting public safety, public health and the economic viability of our communities. HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
*****media Advisory*****Read the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez and Richard Larson, M.D., Ph.D., Executive Vice Chancellor and Vice Chancellor of Research for UNM Health Sciences Center, will hold a press conference at 10:00 A.M. on FRIDAY, APRIL 8, 2016, to announce a new community education program under the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative partnership between the UNM Health Sciences Center and the U.S. Attorney’s Office. The U.S. Attorney and Executive Vice Chancellor will be joined by community stakeholders who are collaborating with the HOPE Initiative partners to develop and implement education, prevention and intervention strategies to combat the heroin and opioid epidemic that is having devastating consequences in New Mexico.
WHO:
U.S. Attorney Damon P. Martinez
Richard Larson, M.D., Ph.D., Executive Vice Chancellor and Vice Chancellor of Research for UNM Health Sciences Center
Bernalillo County Commissioner Maggie Hart Stebbins, District 3
City Councilor Diane Gibson, District 7
Ryan P. Cangiolosi, Chief Strategic Advisor, Office of Strategy and Engagement at the UNM Health Sciences Center
Asst. Special Agent in Charge Sean R. Waite, DEA Albuquerque District Office
Jennifer Weiss-Burke, Executive Director, Healing Addiction in our Community
Lou Duran, Prevention Specialist/Event Coordinator, Healing Addiction in our Community
WHEN:
FRIDAY, APRIL 8, 2016
10:00 a.m.
WHERE:
U.S. Attorney’s Office of the District of New Mexico
201 Third Street NW
10th Floor Multi-Media Room (Reception on Ninth Floor)
Albuquerque, NM 87102
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (i.e., driver’s license) and valid media credentials. Media may begin to arrive at 9:45 a.m. MDT. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 or [email protected].
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with Bernalillo County, the Albuquerque City Council, DEA, Healing Addiction in our Community (HAC) and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico. The Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The new community education program is part of the prevention and education component of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Wednesday 6 April 2016
Woman Involved in Sex Trafficking of Minors Conspiracy Sentenced to 5 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that KAYLA WALTERS, 24, of New York, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 60 months of imprisonment, followed by six years of supervised release, for conspiring to commit sex trafficking of minors.
According to court documents and statements made in court, in September 2012, Edward Thomas, also known as “Fire,” a New York-based pimp, answered an internet prostitution advertisement for a 17-year-old girl (“MV1”) in Oregon. Thomas, with the assistance of WALTERS, recruited and enticed MV1 to travel to New York to work for Thomas. MV1 agreed and traveled to New York with a second girl (“MV2”), who was 16 at the time, using bus tickets purchased by Thomas. Thomas discussed with both MV1 and MV2 that they would be prostituting for him in New York and Connecticut.
After MV1 and MV2 arrived in New York, Thomas drove the two minor girls to a hotel in Milford, Connecticut, where they met WALTERS and posted prostitution advertisements. In Milford, MV1 and MV2 saw customers for commercial sex acts at the direction of Thomas and WALTERS. MV2 escaped from a hotel room window after several hours, but MV1 continued to work for Thomas and WALTERS for about a month, turning over all of the money she earned in prostitution to Thomas and WALTERS. When MV1 attempted to leave, Thomas forcibly restrained her. Ultimately, MV1 was recovered for the first time by the FBI and local police in Milford on November 8, 2012. Law enforcement seized nearly $4,000 in cash from Thomas during this recover, along with several computers and cellular phones.
Thomas recruited MV1 a second time in July 2013 and again paid for her travel from Oregon to the East Coast. After Thomas sent WALTERS and MV1 to Connecticut to make money for him, the FBI and local police again recovered MV1 from a hotel in Milford.
Thomas and WALTERS have been detained since their arrests on February 28, 2014.
On November 10, 2014, WALTERS pleaded guilty to one count of conspiracy to commit sex trafficking of a minor.
On January 26, 2015, a jury found Thomas guilty of one count of conspiracy to commit sex trafficking of a minor and two counts of sex trafficking of a minor. On November 2, 2015, he was sentenced to 210 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The Stratford and Milford Police Departments assisted the investigation.
The case was prosecuted by Assistant U.S. Attorneys David E. Novick and Sarala V. Nagala.
Washington County Man Indicted on Federal Drug Trafficking ChargesRead the Press Release
PITTSBURGH – A Washington County resident has been indicted by a federal grand jury in Pittsburgh on charges of trafficking in heroin, fentanyl, and cocaine, United States Attorney David J. Hickton announced today.
The two-count indictment named Fred Edward Stewart, Jr., age 37, of Ellsworth, Pennsylvania, as the sole defendant.
According to the indictment, Stewart, Jr. possessed with intent to distribute and distributed heroin and fentanyl, on Feb. 12, 2016. The indictment further charges that on Feb. 12, 2016, Stewart, Jr. also possessed cocaine with the intent to distribute it.
The law provides for a maximum total sentence of not more than 40 years in prison, a fine of up to $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Ross E. Lenhardt and Katherine A. King, of the Violent Crime Section of the U.S. Attorney’s Office, are prosecuting this case on behalf of the government.
Special Agents and Task Force Officers from the Drug Enforcement Administration, the Washington County Drug Task Force, the Pennsylvania Office of the Attorney General, the Pennsylvania State Police, the Washington County District Attorney’s Office, and numerous local police departments including the Canonsburg Police Department, the Donora Police Department, the Monessen Police Department, and the Charleroi Police Department, as well as the Washington County Coroner’s Office, and the Allegheny County Medical Examiner’s Office, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Utah Resident Convicted of Conspiracy to Distribute MethamphetamineRead the Press Release
U.S. Attorney Christopher A. Crofts announced today that Salt Lake City, Utah resident Karen Michelle Cox has been convicted in federal court. A jury found Cox guilty of conspiracy to distribute methamphetamine after a five-day jury trial in the United States District Court in Cheyenne. Cox will be sentenced at a later date by Federal District Court Judge Alan B. Johnson. Cox faces a minimum sentence of ten years.
This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was prosecuted by Assistant U.S. Attorney Stephanie I. Sprecher with the assistance of lead investigator, Special Agent Cody Ruiz with the Wyoming Division of Criminal Investigation.
United Airlines Abandons Attempt to Enhance its Monopoly at Newark Liberty International AirportRead the Press Release
The Department of Justice announced today that United Continental Holdings Inc. (United) abandoned its plans to purchase 24 take-off and landing authorizations – or “slots” – from Delta Air Lines Inc. (Delta) at Newark Liberty International Airport (Newark).
On Nov. 10, 2015, the department filed suit to block the proposed acquisition, alleging that it would violate Sections 1 and 2 of the Sherman Act by increasing from 73 percent to 75 percent United’s already dominant share of slots at Newark, one of the nation’s most important airports. The complaint alleged that the enhancement of United’s dominant position would subject air-travel passengers at Newark – who already pay some of the highest fares in the nation – to higher fares and fewer choices.
On April 1, 2016, the Federal Aviation Administration (FAA) announced that it plans to lift slot controls at Newark, which will ease entry and promote competition at the airport. The FAA explained that capacity exists for additional flights at Newark, in part because slots that have been allocated are not being fully utilized. At the same time, the existence of slot constraints has forced the FAA to deny requests from United’s competitors to add service. As alleged in the department’s complaint, United “grounds” more slots on any given day than any of its competitors have the option to fly, while keeping them out of the hands of potential competitors. Following the FAA’s announcement, United and Delta decided on April 5, 2016, to terminate their slot purchase agreement.
“This is a great win for Newark travelers and for all American consumers,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “United has used its slots monopoly to dominate air travel in and out of Newark. The FAA’s action opens up Newark to more robust competition and achieves the very outcome we sought in litigation: protecting consumers from United’s plan to enlarge its monopoly at Newark.”
Newark take-off and landing slots were created by the FAA in 2008 to manage congestion by limiting the number of flights that can serve the airport during the majority of the hours of the day. Slots are scarce, and airlines at Newark – especially low-cost carriers – have had difficulty obtaining slots to offer new air service. United controls 73 percent of the slots at Newark and its slot holdings are more than 10 times greater than those of any other airline: United holds 902 slots; no other airline has more than 70. The transaction abandoned today would have increased United’s slot holdings at Newark to 926, or around 75 percent.
United Continental Holdings Inc. is a Delaware corporation headquartered in Chicago. Last year, United, the third largest airline in the world in terms of revenues, flew over 138 million passengers to over 352 destinations throughout the world.
Delta Air Lines Inc. is a Delaware corporation headquartered in Atlanta. Last year, Delta, the second largest airline in the world in terms of revenues, flew over 170 million passengers to 316 destinations throughout the world.
U.S. Department of Defense Employee in Korea Pleads Guilty to Illegally Obtaining More than $141,000 in Government Housing Allowance FundsRead the Press Release
A civilian employee of the U.S. Department of Defense’s 501st Military Intelligence Brigade pleaded guilty today in the Eastern District of Virginia to illegally obtaining over $141,561 in Living Quarters Allowance (LQA) funds.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Deputy Assistant Inspector General for Investigations Stanley A. Newell of the Defense Criminal Investigative Service (DCIS), Director Frank Robey of the U.S. Army Criminal Investigative Command’s (CID) Major Procurement Fraud Unit and Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Field Office made the announcement.
Koo Hyung Jung, 61, of Fairfax, Virginia, pleaded guilty to one count of knowing conversion of government property before U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia. Jung will be sentenced on July 1, 2016.
According to admissions made in connection with his plea, in 2008, 2010 and 2012, Jung submitted false documents in order to obtain LQA funds from the Department of Defense. Jung then converted the funds to his own personal benefit, contrary to the applicable regulations, allowing him to obtain government funds without paying the requisite taxes on the lump sum LQA payments, he admitted.
DCIS, CID and the FBI are investigating the case with assistance from the FBI Legal Attaché Jin W. Kim in the Republic of Korea and the Justice Department’s Office of International Affairs. Trial Attorneys Richard B. Evans and Justin D. Weitz of the Public Integrity Section and Assistant U.S. Attorney Uzo Asonye of the Eastern District of Virginia are prosecuting the case.
U.S. Central Command Employee Arrested for Attempted Enticement of A Child for SexRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the arrest of Philip Carl Olsen (55, Lithia) with attempted enticement of a child for illegal sexual activity.
According to Court documents, between April 1, 2016, and April 5, 2016, Olsen used a cell phone and computer to attempt to entice an individual he believed was 14 years old to engage in illegal sexual acts, but who was actually an undercover agent. During the chats, Olsen graphically discussed the sexual acts that he wanted to engage in with the “child” and sent the “child” a picture of his genitals. Olsen also asked the “child” to take a picture of his genitals and to send the picture to him. Olsen allegedly made plans to meet the “child” for sex, and on April 5, 2016, he drove to what he believed was the child’s residence and was arrested.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Air Force - Office of Special Investigations. It will be prosecuted by Assistant United States Attorney Amanda C. Kaiser.
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 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 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.
Two sentenced for unlawful possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – Two individuals were sentenced in federal court in Wheeling today for unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.
Darrick D. Fleming, II, 28, of Columbus, Ohio, who has a previous felony conviction in state court in Ohio, was discovered in June 2015 in Ohio County, West Virginia in unlawful possession of a 9mm pistol. He was previously convicted in the Court of Common Pleas of Franklin County, Ohio of the felony offense of “Carrying a Concealed Weapon.” He pled guilty in November 2015 to one count of “Prohibited Person in Possession of a Firearm.” He was sentenced today to 27 months in prison.
Eric Brandon Lemasters, 33, of Jacksonburg, West Virginia, who has a previous felony conviction in state court in Ohio, was discovered in July 2015 in unlawful possession of two rifles, a shotgun, and a pistol in Wetzel County, West Virginia. He was previously convicted of the felony offense of “Grand Theft” in the Court of Common Pleas of Lake County, Ohio. Lemasters pled guilty in February 2016 to one count of “Felon in Possession of a Firearm.” He was sentenced today to 24 months in prison.
Assistant U.S. Attorney Stephen Vogrin prosecuted Fleming and Assistant U.S. Attorney David Perri prosecuted Lemasters on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated both defendants. The Wheeling, West Virginia Police Department also investigated Fleming.
U.S. District Judge John Preston Bailey presided.
Toledo man indicted for sexually exploiting minor girls, including some as young as 8 years oldRead the Press Release
A 14-count indictment was filed charging a Toledo man for sexually exploiting minors, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Steven Calmes, 37, was charged with eight counts of sexual exploitation of a minor, five counts of coercion and enticement and one count of receipt of material involving the sexual exploitation of a minor.
Calmes targeted several girls between the ages of 10 and 14 over the internet and convinced them to send nude picture of themselves to him, or appear naked on a web camera for him. This took place numerous times between 2012 and 2014, according to court documents.
An examination of electronic devices seized during a search revealed 70 videos that constituted child pornography. Calmes used real-time text messages to direct the minor females to engage in sexually explicit conduct, according to court documents.
Several minor victims have been identified, including females as young as eight years old, including victims in Alabama, Ohio, Pennsylvania and Michigan, according to court documents.
Calmes interacted with another child victim who he tried to convince to meet him in person for “more fun.” In another video, Calmes convicted another victim to become fully naked on the web chat. Calmes created a plan to meet this victim at her school, according to court documents.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Secret Service, with the assistance of the Toledo Police Department. The case is being handled by Assistant United States Attorney Alissa M. Sterling.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Toledo man charged with sex trafficking of a minorRead the Press Release
A criminal information was filed charging Trashon Autman, 19, of Toledo, with transportation of a minor to engage in prostitution, said Carole S. Rendon, Acting U.S Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agencies in this case are the Toledo Police Department and the Federal Bureau of Investigation as part of the Northwest Ohio Violent Crimes Against Children Task Force. The case is being handled by Assistant United States Attorney Michael J. Freeman.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Seattle People Charged Involving Counterfeit Credit CardsRead the Press Release
St. Louis, MO – Three individuals living in the Seattle area have been charged in federal court for possessing more than fifteen counterfeit credit cards. Heben Sebhatu, Fana Kiros and Kayla Burleson were arrested on a criminal complaint and made their initial appearance in federal court in St. Louis today.
According to the complaint, the defendants were arrested in the early morning hours of March 25, 2016, after a traffic stop by the Ladue police department revealed more than 100 suspicious credit and gift cards, computer equipment and a credit card encoding machine. While in custody, one of the defendants admitted the group had traveled from Seattle to the Midwest and made fraudulent transactions with the credit cards to obtain gift cards and money orders in different states. Defendant Sebhatu was found to be on bond out of Pierce County, Washington, for First Degree Identity Theft.
If convicted of possession of counterfeit access devices in violation to Title 18, United States Code, Section 1029(a)(3), the defendants face up to 10 years imprisonment, a fine of $250,000 or both. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Restitution to the victim financial institutions and business is also mandatory.
The case is being investigated by the Ladue Police Department and the U.S. Secret Service - St. Louis Office. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in a federal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
St. Albans man pleads guilty in Federal court to drug-related gun crimeRead the Press Release
CHARLESTON, W.Va. – A St. Albans man caught with fentanyl, marijuana, several pistols, and three assault rifles pleaded guilty today, announced Acting United States Attorney Carol Casto. O’Neil Anthony Peart, 37, entered his guilty plea in federal court to possession of firearms in furtherance of drug trafficking offenses.
On December 4, 2015, drug task force officers executed a search warrant at Peart’s Walnut Street apartment in St. Albans. Among other items, police seized eight firearms, including three “AR”-style assault rifles with high-capacity magazines, approximately 21 grams of fentanyl, approximately 7.5 pounds of marijuana, and more than $5,300 in cash. All but two of the firearms were loaded.
Peart faces at least five years and up to life in federal prison when he is sentenced on June 15, 2016.
The Metropolitan Drug Enforcement Network Team, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the St. Albans Police Department investigated this case. Assistant United States Attorney Joshua Hanks is in charge of the prosecution. The hearing was held before United States District Judge Thomas E. Johnston.
This case was prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime. This case was also brought as 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 opiate painkillers and heroin in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-
Rock Hill Man Charged with Being a Felon in Possession of a FirearmRead the Press Release
Contact Person: Beth Drake (803) 929-3000
United States Attorney Bill Nettles stated today that a Federal Grand Jury in Columbia, South Carolina, returned an Indictment against the following:
Rock Hill man charged with being a felon in possession of a firearm
Robert Da’Quan Johnson, age 20, of Rock Hill, South Carolina was charged in a one-count indictment stemming from an incident in Rock Hill on March 4, 2016. Johnson was charged with being a felon in possession of a firearm and ammunition, a violation of Title 18, U.S.C. ''922(g)(1), 924(a)(2), and 924(e). The maximum penalty Johnson could receive on the charge is 10 years imprisonment and a maximum fine of $250,000, unless he is determined to be an armed career criminal, and then he would face a mandatory minimum 15 years with a maximum of life imprisonment and a maximum fine of $250,000. Johnson was previously arrested for this charge pursuant to a federal criminal complaint on March 8, 2016. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Rock Hill Police Department and is assigned to Assistant United States Attorney Stacey D. Haynes of the Columbia office for prosecution.The United States Attorney stated that all charges in this Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
####
President of Purcellville Company Pleads Guilty to Virginia Regional Transit Bribery ConspiracyRead the Press Release
ALEXANDRIA, Va. – Thomas Eugene Ahalt, 71, of Berryville, pleaded guilty today to conspiracy to commit bribery concerning federal program funds for his role in a bribery scheme that caused over $500,000 in losses to the U.S. government.
According to the statement of facts filed with the plea agreement, Ahalt has served as the President of Mobile Auto Truck Repair (Mobile Auto), an automotive repair business in Purcellville, since 2007. Mobile Auto provided repair services to Virginia Regional Transit (VRT), a not-for-profit 501(c)(3) organization that provides transportation services throughout Northern Virginia. VRT is funded by a combination of federal, state and local grants, including from the U.S. Department of Transportation.
According to the plea agreement, Ahalt participated in two fraud schemes from January 2007 through December 2015. In the first scheme, Ahalt and M.M., a former chief executive officer of VRT, agreed Mobile Auto would submit—and VRT would approve—false invoices for certain labor charges. In exchange, Ahalt would make bi-weekly kickback payments to M.M. totaling half of the additional labor charges. Accordingly, between 2007 and 2015, M.M. approved and VRT paid to Mobile Auto approximately $380,000 in fraudulent additional labor charges. During the same period, Ahalt gave M.M. approximately $190,000 in illegal kickback payments.
In addition to the kickback payment scheme, Ahalt also regularly caused Mobile Auto to submit false invoices to VRT for parts and labor associated with maintaining VRT vehicles. Ahalt, for example, frequently added fictitious entries to invoices for repairs that had not occurred and for parts that had not been installed. Mobile Auto submitted at least $136,000 in false invoices to VRT between 2012 and 2015. VRT subsequently paid these false invoices using, in part, federal funds from the U.S. Department of Transportation.
Ahalt faces a maximum penalty of five years in prison and a $250,000 fine when sentenced on June 21. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Floyd Sherman, Regional Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General, made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorney Uzo Asonye is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-79.
Plymouth Attorney Sentenced to 41 Months in Prison for Stealing $500,000 from InvestorsRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of TIMOTHY JON OLIVER, 62, for stealing $500,000 from ARS Tectonica, a Mexican construction company, in connection with a purported real estate project in Libya. OLIVER, who pleaded guilty to one count of wire fraud on September 10, 2014, was sentenced on April 1, 2016, before Senior U.S. District Judge Michael J. Davis in U.S. District Court in Minneapolis.
“Lying and stealing are always damaging to the victims and to society writ large,” said Assistant United States Attorney David J. MacLaughlin. “Such conduct is especially egregious, and particularly undermining of trust between people, when it is perpetrated by a licensed attorney, a person on whose advice others rely to conduct themselves in accordance with the law. Mr. Oliver’s disbarment, and his 41-month sentence, appropriately punish him for the deceit and dishonesty to which he pled guilty.”
According the defendant’s guilty plea and documents filed in court, from May 2009 to May 2010, OLIVER controlled two companies, American Diversified Industries, LLC (ADI), which was used to receive proceeds of the scheme, and GVA International Limited, which was purported to be developing a real estate project in Bani Walid, Libya. OLIVER pressured, and ultimately convinced, ARS Tectonica to send $500,000 to ADI to secure a letter of credit from a Minnesota credit union.
According to his guilty plea, OLIVER told ARS Tectonica that the letter of credit would be presented to the Organization for Development of Administrative Centers (ODAC), an arm of the Libyan government, as a performance bond for the real estate project in Libya. He also told ARS Tectonica that, once ODAC approved the letter of credit, it would be awarded the opportunity to become the construction manager for the Bani Walid project.
According to documents filed in court, on May 21, 2009, ARS Tectonica wired $500,000 to OLIVER, which was received through ADI’s account that was maintained by the defendant. Instead of using the money to secure a letter of credit, OLIVER spent the money on unrelated debts. For almost a year thereafter, OLIVER lulled ARS Tectonica into believing that the $500,000 remained at the credit union and was being utilized by the credit union to secure the letter of credit. As part of his sentence, OLIVER is ordered to pay $500,000 in restitution to ARS Tectonica.
This case was prosecuted by Assistant U.S. Attorney David J. MacLaughlin.
This case is the result of an investigation conducted by the Federal Bureau of Investigation.
Defendant Information:
TIMOTHY JON OLIVER, 62
Plymouth, MN
Convicted:
- Wire fraud, 1 count
Sentenced:
- 41 months in prison
- $750,000 in restitution
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Pittsburgh Police Officer Charged with Deprivation of Civil Rights, Falsifying ReportRead the Press Release
PITTSBURGH - A Pittsburgh resident has been indicted by a federal grand jury in on charges of deprivation of civil rights and falsification of a record, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on April 5, named Stephen Matakovich, 47, of Pittsburgh, Pa., as the sole defendant.
According to the indictment, on or about Nov. 28, 2015, Matakovich, a police officer of the Pittsburgh Bureau of Police, willfully deprived an individual identified as G.D. by punching G.D., pushing G.D., and repeatedly striking G.D., without justification, thereby causing bodily injury to G.D. The indictment further alleges that on or about Nov. 29, 2015, Matakovich made false statements in the record related to the incident, falsely justifying the force used against G.D.
The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Cindy K. Chung and Stephen S. Gilson are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Ozark Man Pleads Guilty to False Tax Claim, Advertised on Craigslist for DependentsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Ozark, Mo., man pleaded guilty in federal court today to filing a false income tax return after he advertised on Craigslist to purchase identity information for children that he could claim as dependents as part of a larger tax fraud scheme.
Raheem L. McClain, 37, of Ozark, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a Feb. 23, 2016, federal indictment.
By pleading guilty today, McClain admitted that he engaged in a scheme to defraud the IRS by preparing and submitting false tax returns on behalf of himself and his girlfriend (who is not identified in court documents) between Jan. 28, 2012, and Feb. 4, 2016. McClain prepared and submitted false federal tax returns for the years 2011, 2012, 2013 and 2014 claiming dependents to which he was not entitled to claim. McClain also prepared and submitted false federal tax returns for his girlfriend for the years 2012, 2013, 2014 and 2015 claiming dependents to which she was not entitled to claim.
For tax returns filed for the calendar years 2011, 2012 and 2013 McClain admitted that he used the personal information for three dependents from a female he met on an on-line dating website to falsely claim these children as dependents and to falsely claim refunds for himself and his girlfriend. For a tax return filed for the calendar year 2014, McClain falsely listed his grandmother as a dependent on his girlfriend’s tax return.
McClain also admitted that he caused an advertisement to be posted on Craigslist on Jan. 16, 2015, stating:
“WANTED: KIDS TO CLAIM ON INCOME TAXES - $750 (SPRINGFIELD,
MO)
IF YOU HAVE SOME KIDS YOU ARENT CLAIMING, I WILL PAY YOU A
$750 EACH TO CLAIM THEM ON MY INCOME TAX. IF INTERESTED,
REPLY TO THIS AD.”
On Feb. 3, 2015, McClain caused a false federal tax return to be electronically signed and filed in his name for 2014, which listed three dependents by name, Social Security number and supposed relationship (two sons and one daughter). He obtained the personal information for these dependents from a woman who responded to his Craigslist advertisement.
On Feb. 4, 2015, McClain caused two false federal tax returns to be filed through the mail in his name for 2012 and 2013. Each of the returns listed the same three dependents; however, on these two returns the same individuals were listed as one son and two daughters. The woman who responded to the advertisement did not authorize McClain to use the dependent information on his 2012 tax return.
On Feb. 4, 2016, McClain caused a false federal tax return to be electronically signed and filed in the name of his girlfriend for 2015, which listed the same three dependents but claimed them as one nephew and two nieces. The woman who sold the dependent information was unaware that McClain used the dependents on his girlfriend’s 2015 tax return.
The total actual tax loss for this case, including both federal and state refunds, is $21,986. Under the terms of today’s plea agreement, McClain must pay restitution to the IRS and to the state of Missouri, including interest.
According to today’s plea agreement, McClain owes $597 in Missouri state income taxes for the years 2011, 2012, 2013 and 2014 for the fraudulent tax returns he filed in his own name. He also owes $806 in Missouri state income taxes for the years 2012, 2013 and 2014 for the fraudulent state income tax returns he filed in his girlfriend’s name.
Under federal statutes, McClain is subject to a sentence of up to three years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation and the Missouri Department of Revenue.
Oklahoma City Man Faces 10 Years in Federal Prison After Admitting He Transmitted Program or Code to a Protected ComputerRead the Press Release
DALLAS — Benjamin Earnest Nichols, 37, of Oklahoma City, appeared yesterday before U.S. Magistrate Judge David L. Horan and pleaded guilty to an Information charging one count of knowingly causing the transmission of a program or code to a protected computer, announced U.S. Attorney John Parker of the Northern District of Texas.
Nichols, who is on bond, faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. A sentencing date was not set.
Nichols admitted that on or before May 2010, he knowingly and purposefully launched a distributed denial of service (DDOS) attack against mcgrewsecurity.com, a domain name and webserver owned by RWM, in an attempt to cause damage to the protected computer system and deny service to mcgrewsecurity.com, causing loss during a one-year period of between $5,000 and $6,500.
According to documents filed in the case, a (now) convicted defendant, Jesse McGraw, a former contract security guard at the North Central Medical Plaza in Dallas, was arrested in June 2009 on a criminal complaint filed in the Northern District of Texas that charged him with accessing, without authorization, protected computers in a medical facility. McGraw was indicted in July 2009, and in May 2010, he pleaded guilty to two counts of transmission of malicious code. McGraw was sentenced in March 2011 to serve a total of 110 months in federal prison.
At the time of his criminal conduct, McGraw was the self-proclaimed leader of the Electronic Tribulation Army (ETA), a hacking group. Nichols and others were also members of the ETA. McGraw intended to cause the remotely-controlled medical center computers to participate in a DDOS attack on a rival hacker group.
After interacting with RWM on blogs and in chat rooms, Nichols got angry at RWM for posting what he considered to be false and disparaging remarks on the blog at mcgrewsecurity.com. Nichols then used various means to harass and mock RWM, including setting up a derogatory website for RWM, posting disparaging photo-shopped photographs of RWM, and ordering sex toys to be sent to RWM’s home. In addition, Nichols also created/repurposed a bot that used computer code to respond to certain keywords by transmitting random insults and profanity to RWM’s internet relay chat (IRC) channel.
The Federal Bureau of Investigation is conducting the investigation. Assistant U.S. Attorney C.S. Heath is in charge of the prosecution.
# # #
Oil Company Sentenced for Multiple Felonies Related to Violations of Offshore Oil Production Safety and Environmental RegulationRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Louisiana announced that ENERGY RESOURCE TECHNOLOGY GOM, LLC (ERT), was sentenced today to three years of probation and ordered to pay a $4 million fine and $200,000 community service payment by U.S. District Judge Ivan L.R. Lemelle after having pled guilty to two felony counts of violating the Outer Continental Shelf Lands Act and two felony counts of violating the Clean Water Act related to conduct on its offshore oil production facilities in the Gulf of Mexico. During the period of probation, ERT, its subsidiaries, agents and affiliated business entity Talos Energy Offshore, LLC, and employees thereof, will be required to comply with a Safety and Environmental Compliance Plan.
According to court documents, on or about November 26, 2012, ERT knowingly and willfully failed to comply with the regulations for hot work on its offshore production platform known as Ship Shoal 225. Specifically, contractors for ERT violated Title 30, Code of Federal Regulation, Section 250.113(c)(4), which mandates that welding and associated activities, also known as hot work, on offshore facilities shall not take place within 10 feet of a well bay unless production in that area is shut-in.
On or about November 27, 2012, on Ship Shoal 225, ERT knowingly and willfully failed to comply with the regulations for blowout preventer testing. A blowout preventer system is designed to ensure well control and prevent potential release of oil and gas and possible loss of well control. According to the Code of Federal Regulations, the blowout preventer system must be pressure tested at regular intervals, and the entire system must pass the pressure tests prior to resuming normal operations. According to Title 30, Code of Federal Regulations 250.617, the results of the pressure testing, including any problems or irregularities observed during the testing and the actions taken to remedy the problems, must be recorded. The blowout preventer test record and pressure chart must be signed and dated by the onsite representative as correct. The blowout preventer pressure chart and operations log are required to be maintained on the platform and available for inspection by BSEE.
According to the pressure chart for the tests conducted by ERT’s contractors on November 27, 2012, only 6 of the 7 required components were tested. The chart showed pressure testing failures that required the workers on the platform to re-test the blowout preventer system. However, at the conclusion of the testing, the blowout preventer chart was not approved for accuracy by the ERT on-site representative on duty nor did the workers re-test the system. Then, on or about November 29, 2012, inspectors with BSEE came onboard the platform at Ship Shoal 225 for a routine inspection and requested blowout preventer testing records. ERT could not produce an acceptable pressure test chart because of the deficiencies in the November 27, 2012 testing.
ERT also violated the Clean Water Act by tampering with the method of collecting the monthly overboard produced water discharge samples to be tested for oil and grease content pursuant to its NPDES permit. In Spring 2014, ERT became suspicious that contract operators were manipulating the integrity of the overboard produced water samples at some of its platforms by filtering the sample through coffee filters or other similar means to ensure that ERT would not be found to be in violation of its Permit. Although the Discharge Monitoring Reports for the platforms from October 2012 through March 2014, showed that the platforms were not discharging oil and grease in excess of the permit requirements, when ERT began an investigation, the results of which it self-reported to the United States, and took the samples in accordance with the Permit requirements, multiple platforms were shown to be in violation of the monthly discharge allowances. From April 2014 through June 2014, discharge monitoring samples correctly taken by ERT showed multiple Gulf of Mexico platforms, including High Island 557A, South Marsh Island 107A, Ship Shoal 225, Ship Shoal 224A, East Cameron 346A, Eugene Island 302C, South Timbalier 63A, Vermilion 331A and 171A, to be discharging oil and grease in excess of their monthly allowance under the Permit.
ERT’s most recent Clean Water Action violation occurred on or about June 9, 2015. On that day, two contract operators on an ERT oil production platform in the Gulf of Mexico at platform Vermilion 195A were engaged in bleeding pressure from the production casing on a plugged well. Operators routinely encounter liquid, including pollutants such as well bore fluid, acid, and hydrocarbon/oil residue, when bleeding pressure from well casings, and therefore precautions against an unpermitted discharge into the Gulf of Mexico should be taken. On or about June 9, 2015, the two contract operators onboard VR 195A did not take any precaution against a discharge of pollutants when they began bleeding down the pressure from the production casing. The contract operators attached a hose to the valve from which the casing pressure was to be released and put the end of the hose at the edge of the platform, allowing well bore fluid mixed with hydrocarbons to shoot out over the Gulf of Mexico falling into the water below in violation of the Clean Water Act.
“This is an excellent example of federal agencies working together, collaboratively and effectively, to ensure that oil and gas companies operating in areas within the Department's jurisdiction meet their professional and legal responsibilities,” stated Ron Gonzales, Special Agent in Charge of the Department of Interior-OIG-Energy Investigations Unit. “Matters of public safety and risk of environmental harm are included among the OIG's highest priorities, and we stand ready to work with the DOJ, BSEE, and the EPA to hold those violators accountable."
“It’s imperative that energy extraction be done responsibly and in ways that doesn’t put human health and the environment at risk,” said Ted Stanich, Acting Director of EPA’s criminal enforcement program. “When oil and gas operators cut corners and break the law, EPA will work with its law enforcement partners to hold them accountable in order to protect human health and the Gulf Coast ecosystem from harm.”
The case was investigated by the Department of Interior-Office of Inspector General (Energy Investigations Unit) with assistance from the Investigations and Review Unit, Bureau of Safety and Environmental Enforcement and the Environmental Protection Agency-Criminal Investigation Division.
The case was prosecuted by Assistant United States Attorney Emily K. Greenfield of the United States Attorney’s Office’s National Security Unit.
Northern California Man Sentenced to 30 Years in Prison for Interstate Travel to Engage in Sexual Acts with a MinorRead the Press Release
94 Minor Victims Identified Through Federal Investigation
Blake Robert Johnston, 42, of Martinez, California, was sentenced to 30 years in prison late yesterday and ordered to serve a lifetime on supervised release for traveling across state lines with the intent to engage in sexual acts with a minor, announced Acting U.S. Attorney Brian Stretch and Special Agent in Charge Ryan L. Spradlin for Homeland Security Investigations.
Johnston pleaded guilty on Dec. 1, 2015, to travel with intent to engage in illicit sexual conduct with a minor. According to the plea agreement, Johnston admitted to flying to Oregon for the purpose of engaging in a sexual act with a 14-year-old victim. Johnston also admitted that, approximately a week later, he drove to Oregon, picked up the victim, drove her to California and engaged in sexual acts with her at his home in Martinez.
Johnston was indicted by a federal grand jury on April 2, 2015. He was charged with: travel with intent to engage in illicit sexual conduct with a minor; transportation of a minor with intent to engage in criminal sexual activity; online enticement of a minor, production of child pornography (two counts with different victims); possession of child pornography; and distribution of child pornography.
According to the criminal complaint, this investigation began in October of 2014, when the first identified victim’s mother called police in Salem, Oregon, to report that her 14-year-old daughter was missing. Based on mobile phone records and the victim’s computer history, Salem police were able to determine the probable location of the victim and the identity of the suspect. Within 24 hours of the victim’s disappearance, Martinez police found the missing girl in Johnston’s bed. According to a status conference update filed by the government, a hard drive seized from Johnston’s bedroom contained approximately 500 folders labeled with different females’ names. The majority of those 500 folders each appear to contain images and/or videos of child pornography no law enforcement investigators had previously encountered.
At the time the government’s sentencing memorandum was filed, investigators identified 94 minor victims, from at least 30 states and six countries, whom Johnston enticed into creating child pornography or sexually exploited online. Investigators confirmed that four minor victims met with Johnston and engaged in illicit sexual activity with him. In Johnston’s communications with underage victims, he encouraged the girls to commit harmful and violent acts such as cutting themselves, penetrating their bodies with foreign objects, strangulation and drug abuse.
“Blake Johnston sexually exploited an untold number of children to satisfy his demented fantasies,” said Acting U.S. Attorney Stretch. “Today he was sentenced to 30 years in prison, a just sentence we can only hope provides some measure of closure to the victims and their families who had to endure Johnston’s torment. This office remains vigilant, ready to prosecute child predators who troll the internet targeting the most vulnerable among us.”
“A cyber monster’s perverse desires often turn into physical victimization and a child’s worst nightmare,” said Special Agent in Charge Spradlin. “While we are satisfied with the 30 year sentence for the horrific crimes committed, we must remember the young victims who are left with permanent psychological, physical and emotional scars. HSI works tirelessly with our law enforcement partners to seek out and bring to justice those who mercilessly exploit children.”
During the sentencing hearing before the U.S. District Judge Jeffrey S. White for the Northern District of California, some of the victims and their parents testified about the impact of Johnston’s actions. One of the victims, who was between 13 and 14 years old at the time of the offenses, told Johnston during the sentencing hearing, “You took away my childhood. You took me away from my family. You killed who I could have been. But I am free now, free to live without fears.” Another minor victim told the judge that “In November of 2014, when Homeland Security contacted me . . . when I found out the nature of the situation, I was sick to my stomach.” “Telling my mother broke her heart because she had no idea whatsoever of what was going on.” Two mothers of victims said that they had no idea what was going on with their daughters until Homeland Security agents showed up at their door. One mother of a teenage victim told the judge that her family and her daughter have been dealing with nightmares almost every night.
In handing down the sentence, U.S. District Judge White described Johnston’s conduct as “unusually heinous,” “cruel, degrading and completely inhumane to other individuals and it is a sad day for our society when people engage in the kind of behavior that the defendant [did].” U.S. District Judge White said that Johnston “preyed upon [the child victims’] low self-esteem” and used “extreme cunning, guile, intelligence, strategies and a lot of thought and a lot of skill.” U.S. District Judge White said that, in all of his years as a judge, the “Court has never seen . . . such serious, heinous behavior.”
U.S. District Judge White sentenced the defendant to a lifetime period of supervised release and ordered no contact with victims or minors without the permission of his probation officer. Johnston must register as a sexual offender as required by state law. Full restitution to the victims of defendant’s crimes will be ordered, and the court will determine the final restitution amounts on June 28. The defendant has been detained since his arrest, so he will immediately begin serving his sentence.
Assistant U.S. Attorneys Maureen Bessette and Christina McCall are prosecuting the case with the assistance of Vanessa Vargas Quant, Melissa Dorton and Patty Lau. The prosecution is the result of an investigation by: Homeland Security Investigation’s Cyber Crimes Child Exploitation Group; Martinez Police Department; Salem Police Department in Oregon; the Contra Costa County District Attorney’s Office; the Malaysia Royal Police; numerous law enforcement agencies in the United Kingdom; the Irish Garda; the Royal Canadian Mounted Police; and the Australian Federal Police.
Niagara Falls Man Sentenced for Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Jeremy Scouten, 37, of Niagara Falls, NY, who was convicted of possession of child pornography, was sentenced to 60 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorneys Stephanie Lamarque and Kathleen A. Lynch, who handled the case, stated that on August 6, 2012, law enforcement officers executed a search warrant at the 2502 Falls Street residence of the defendant. Officers recovered a computer being used by Scouten. A subsequent forensic examination determined that the computer contained approximately 200 images and 17 videos of child pornography. Some of the images included children under the age of 12 years old depictions of violence.
The sentencing is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security investigations, under the direction of Special Agent in Charge James C. Spero.
New Mexico Man Sentenced to 20 Years for Sexual Exploitation of a ChildRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Albuquerque, New Mexico, man was sentenced in federal court today for transporting a 13-year-old victim from Henry County, Mo., across state lines to engage in illicit sexual activity.
Raymond C. Vallia, III, 56, of Albuquerque, was sentenced by U.S. District Judge Beth Phillips to 20 years in federal prison without parole.
On Nov. 17, 2015, Vallia pleaded guilty to transporting a minor across state lines with the intent to engage in sexual activity.
On March 29, 2015, deputies with Henry County, Mo., Sheriff’s Department responded to a report of a missing 13-year-old female, identified in court documents as MV. During the course of the investigation law enforcement agents determined that MV met Vallia through a social networking Web site and that he had picked up MV at her home with the intent that they would live in an apartment in New Mexico.
New Mexico State Police saw a vehicle matching the description of Vallia’s vehicle on Interstate 40 in New Mexico on March 30, 2015. At that time the vehicle was pulled over, MV was recovered and Vallia was arrested.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI, the Henry County, Mo., Sheriff’s Department, the New Mexico State Police and the Amarillo, Texas, Police Department.
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."
Nashville Tax Preparer Sentenced for Conspiracy and Filing False Tax ReturnsRead the Press Release
Joshua Gotwe Chinamora, 37, of Plano, Texas, was sentenced on April 4, 2016, to 18 months in prison, followed by three years supervised release, on charges of conspiracy and filing false tax returns, announced David Rivera, U.S. Attorney for the Middle District of Tennessee and Tracey D. Montaño, Special Agent in Charge, IRS – Criminal Investigation. United States District Court Judge Todd J. Campbell also ordered Chinamora to pay restitution of $140,705.00 to the IRS.
On November 9, 2015, Chinamora pleaded guilty to two counts of an 11-count indictment, previously filed on March 26, 2014, charging Chinamora and co-defendant, Moven Mpofu, with conspiracy and preparing false tax returns. Chinamora admitted that between January 2007 and April 2010, he and Mpofu operated Acura Tax Service (ATS) in Nashville, Tennessee, and prepared and filed approximately 58 false tax returns. The false returns, which were electronically transmitted to the IRS from the ATS Nashville office, each claimed false refunds ranging from $1,400 to $7,600. The false entries on the returns included filing status, moving expenses, medical expenses, gifts to charity, child and dependent care credits, education credits and dependent credits.
The individuals for whom Chinamora and Mpofu prepared and filed returns did not provide the defendants with the false information and did not know that the returns were falsely prepared.
Mpofu is currently a federal fugitive and his case remains pending before the court. He is presumed innocent until proven guilty in a court of law.
This investigation was conducted by IRS-Criminal Investigation. Assistant U.S. Attorney Sandra Moses represented the United States.
Moses Lake, Washington Man Sentenced to over 22 Years in Connection with a Shootout on Spokane’s Lower South HillRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Arthur Frank Cardenas, age 37, of Moses Lake, Washington, was sentenced after a jury previously found him guilty on April 16, 2015, of:
- being a felon in possession of a firearm (Count 1);
- being a felon in possession of an explosive device (Count 2);
- possessing an unregistered firearm (Count 3);
- possessing pure methamphetamine with intent to distribute it (Count 4); and
- possessing a firearm in furtherance of a drug trafficking crime (Count 5).
United States District Judge William Fremming Nielsen sentenced Cardenas to a 270 month term of imprisonment, to be followed by a five year term of court supervision after he is released from federal prison.
According to information disclosed during the court proceedings, on April 26, 2012, Cardenas participated in an exchange of gunfire with another individual at a duplex located on the lower South Hill in Spokane, Washington. Cardenas was injured during the exchange of gunfire and was taken to Deaconess Medical Center for treatment. A subsequent investigation revealed that Cardenas was armed with a Walther model PPK/S .380 caliber handgun during the shootout and that bullets from that firearm struck a nearby residence. In the trunk of Cardenas’ vehicle, law enforcement officers found a hand grenade, explosive powder, 243.9 grams of pure methamphetamine, and approximately $17,410. Cardenas had another $3,000 on his person. During the sentencing hearing, Judge Nielsen noted that Cardenas had a lengthy criminal history that resulted in a high offender score.
Michael C. Ormsby stated, “Cardenas’ conduct presented a danger to citizens here in Spokane, Washington. The twenty two and a half year sentence reflects the seriousness of Cardenas’ criminal conduct. I commend the Spokane Police Department and the Bureau of Alcohol, Tobacco, and Firearms for the thorough investigation of this matter. The United States Attorney’s Office for the Eastern District of Washington will aggressively prosecute firearm and drug trafficking violations that occur within this District.”
This investigation was conducted by Spokane Police Department with assistance from the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Timothy J. Ohms, an Assistant United States Attorney for the Eastern District of Washington.
Mine Workers Union Secretary Charged with Embezzling FundsRead the Press Release
PITTSBURGH – A Fayette County resident has been indicted by a federal grand jury in Pittsburgh on a charge of union embezzlement, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on April 5, named Daniel P. Ternitsky, Jr., of Keisterville, Pennsylvania, as the sole defendant.
According to the indictment, Ternitsky, while serving as the Financial Secretary of the United Mine Workers of America, Local 285, AFL-CIO, embezzled approximately $10,680.05 from the union by cashing checks drawn on the union’s checking account for unauthorized expenses during the period from Aug. 12, 2013 through Dec. 20, 2013.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Department of Labor, Office of Labor-Management Standards conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Michael Jenkins of Barre, Vermont Sentenced to A Year and A Day for Possession of A Firearm as A Convicted FelonRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Michael Jenkins, 24, of Barre, Vermont was sentenced today to 12 months and one day for possession of a firearm as a convicted felon. Jenkins also agreed to the forfeiture of a 12-gauge shotgun as part of his plea agreement with the government. U.S. District Judge Geoffrey W. Crawford also ordered that Jenkins serve a three-year period of supervised release following his incarceration.
According to court records, in April 2013, Jenkins entered a stranger’s home, ultimately stealing a pick-up truck from the property. The homeowner pursued the pick-up truck as Jenkins drove off the road and through a field into the woods. Jenkins then exited the truck and fled on foot, eluding pursuing law enforcement. He was apprehended later that evening in Eden, Vermont. In the ensuing state prosecution, Jenkins received a felony conviction for unlawful trespass of an occupied residence, and a sentence of six months to three years in prison. This felony conviction prohibited Jenkins from possessing firearms.
Three months later on November 8, 2013, Jenkins signed a conditional re-entry agreement with the Vermont Department of Corrections allowing him to continue his sentence on furlough while residing with his grandmother in Williamstown, Vermont. Among those conditions, he agreed not to possess weapons or firearms. Four days later, Barre Probation and Parole received information that Jenkins was in possession of a firearm. A search of Jenkins’ bedroom yielded a 12-gauge shotgun containing a shell in the chamber and a magazine loaded with five additional shells. Probation officers also located numerous handgun rounds and several knives in the bedroom.
Previous to his federal indictment in this case, Jenkins had three state convictions whose offense conduct involved possession of loaded firearms.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of Barre Probation and Parole. Assistant U.S. Attorney Kevin J. Doyle handled the prosecution for the government. Michael Jenkins was represented by Assistant Federal Defender Steven L. Barth.
Mexican national sentenced to 2 years in prison for reentering the United States without permissionRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Mexican national was sentenced Monday to 24 months in prison for reentering the United States without first obtaining permission.
Efrain Mendoza-Guevara, 31, of Veracruz, Mexico, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of reentry of a removed alien. According to evidence presented at the November 12, 2015 guilty plea, the defendant was arrested for driving while intoxicated on May 16, 2015, in Bossier City, La. Upon further investigation, it was discovered that Mendoza-Guevara had been deported in February of 2004 after being convicted of a felony and had not received permission to reenter the United States.
Homeland Security Investigations-Immigrations and Customs Enforcement and the Bossier City Police Department conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Mexican National Sentenced for Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RAYMUNDO CUEVAS-SOTO, age 40, a citizen of Mexico, was sentenced today after previously pleading guilty to a one-count Indictment for illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
U.S. District Court Judge Sarah S. Vance sentenced CUEVAS-SOTO to time served, followed by one year of supervised release, and a $100 special assessment. Additionally, CUEVAS-SOTO will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on October 31, 2015, the defendant was encountered by federal agents pursuant to a traffic stop. CUEVAS-SOTO had been previously removed from the United States on July 24, 2013.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Metairie Man Sentenced to over 10 Years in Prison for Trafficking a Minor into New Orleans to Work as a ProstituteRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TORREY LEDELL DAVIS, age 44, who last resided in Metairie, was sentenced today after previously pleading guilty to interstate transportation of a minor for the purpose of engaging in criminal sexual activity.
U.S. District Judge Sarah Vance sentenced DAVIS to 121 months imprisonment, to be followed by 10 years of supervised release. Additionally, DAVIS is required to register as a sex offender pursuant to the Sex Offender Registration Notification Act.
According to the court documents, in November 2012 DAVIS was contacted by an individual living in the Jackson, Mississippi area. That individual inquired whether DAVIS would be willing to train the victim, who had just turned sixteen years old, to work as a prostitute. DAVIS agreed, and on November 26, 2012, drove to the Scottish Inn in Jackson, Mississippi, picked up the victim, and drove her back to DAVIS’S residence in Metairie. Once at the Metairie residence, DAVIS forced the victim to dress provocatively and pose for sexually suggestive photographs, which he saved on his computer. The pictures were then used to create a prostitution advertisement on an online classified advertisement website often used to promote prostitution. DAVIS instructed the victim how to work as a prostitute, how to solicit clients, and how to avoid being caught by law enforcement officials. DAVIS also arranged for the victim to be paired with a female who had worked as a prostitute for DAVIS for approximately one year. At DAVIS’s instruction, the female drove the victim to the French Quarter of New Orleans to work as a prostitute. While in the French Quarter that evening, law enforcement officials arrested the minor for prostitution after an undercover officer arranged for the victim to perform a sexual act on the officer in exchange for $500.
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.”
The investigation was initiated by the New Orleans Police Department and investigated by the Federal Bureau of Investigation and the Louisiana State Police Special Victims Unit. The prosecution of this case was handled by Assistant United States Attorneys Jordan Ginsberg and K. Paige O’Hale.
Martinez Man Sentenced to 30 Years in Prison for Interstate Travel to Engage in Sexual Acts with A MinorRead the Press Release
OAKLAND – Blake Robert Johnston was sentenced to 30 years in prison late yesterday, and ordered to serve a lifetime on supervised release, for traveling across state lines with the intent to engage in sexual acts with a minor, announced United States Attorney Brian Stretch and Homeland Security Investigations Special Agent in Charge Ryan L. Spradlin.
Johnston pleaded guilty on December 1, 2015, to violating 18 U.S.C. § 2423(b), travel with intent to engage in illicit sexual conduct with a minor. According to the plea agreement, Johnston admitted to flying to Oregon for the purpose of engaging in a sexual act with a 14-year-old victim. Johnston also admitted that, approximately a week later, he drove to Oregon, picked up the victim, drove her to California, and engaged in sexual acts with her at his home in Martinez.
Johnston, age 42, of Martinez, California, was indicted by a federal grand jury on April 2, 2015. He was charged with: Travel with Intent to Engage in Illicit Sexual Conduct with a Minor; Transportation of a Minor with Intent to Engage in Criminal Sexual Activity; Online Enticement of a Minor, Production of Child Pornography (two counts with different victims); Possession of Child Pornography; and Distribution of Child Pornography.
According to the criminal complaint, this investigation began in October of 2014, when the first identified victim’s mother called police in Salem, Oregon, to report that her 14-year-old daughter was missing. Based on mobile phone records and the victim’s computer history, Salem police were able to determine the probable location of the victim and the identity of the suspect. Within 24 hours of the victim’s disappearance, Martinez police found the missing girl in Johnston’s bed. According to a status conference update filed by the government, a hard drive seized from Johnston’s bedroom contained approximately 500 folders labeled with different females’ names. The majority of those 500 folders each appear to contain images and/or videos of child pornography no law enforcement investigators had previously encountered.
At the time the government’s sentencing memorandum was filed, investigators identified 94 minor victims, from at least 30 states and six countries, whom Johnston enticed into creating child pornography or sexually exploited online. Investigators confirmed that four minor victims met with Johnston and engaged in illicit sexual activity with him. In Johnston’s communications with underage victims, he encouraged the girls to commit harmful and violent acts such as cutting themselves, penetrating their bodies with foreign objects, strangulation, and drug abuse.
“Blake Johnston sexually exploited an untold number of children to satisfy his demented fantasies," said U.S. Attorney Brian J. Stretch. "Today he was sentenced to 30 years in prison, a just sentence we can only hope provides some measure of closure to the victims and their families who had to endure Johnston's torment. This office remains vigilant, ready to prosecute child predators who troll the internet targeting the most vulnerable among us.”
“A cyber monster's perverse desires often turn into physical victimization and a child’s worst nightmare,” said Ryan L. Spradlin, HSI Special Agent in Charge. “While we are satisfied with the 30 year sentence for the horrific crimes committed, we must remember the young victims who are left with permanent psychological, physical and emotional scars. HSI works tirelessly with our law enforcement partners to seek out and bring to justice those who mercilessly exploit children.”
During the sentencing hearing before the Hon. Jeffrey S. White, U.S. District Judge, some of the victims and their parents testified about the impact of Johnston’s actions. One of the victims, who was between 13 and 14 years old at the time of the offenses, told Johnston during the sentencing hearing, “You took away my childhood. You took me away from my family. You killed who I could have been. But I am free now, free to live without fears.” Another minor victim told the judge that “In November of 2014, when Homeland Security contacted me . . . when I found out the nature of the situation, I was sick to my stomach.” “Telling my mother broke her heart because she had no idea whatsoever of what was going on.” Two mothers of victims said that they had no idea what was going on with their daughters until Homeland Security agents showed up at their door. One mother of a teenage victim told the judge that her family and her daughter have been dealing with nightmares almost every night.
In handing down the sentence, Judge White described Johnston’s conduct as “unusually heinous,” “cruel, degrading and completely inhumane to other individuals, and it is a sad day for our society when people engage in the kind of behavior that the defendant [did].” Judge White said that Johnston “preyed upon [the child victims’] low self-esteem” and used “extreme cunning, guile, intelligence, strategies, and a lot of thought and a lot of skill.” Judge White said that, in all of his years as a judge, the “Court has never seen . . . such serious, heinous behavior.”
Judge White sentenced the defendant to a lifetime period of supervised release, and ordered no contact with victims or minors without the permission of his probation officer. Johnston must register as a sexual offender as required by state law. Full restitution to the victims of defendant’s crimes will be ordered, and the Court will determine the final restitution amounts on June 28, 2016. The defendant has been detained since his arrest, so he will immediately begin serving his sentence.
Assistant U.S. Attorneys Maureen Bessette and Christina McCall are prosecuting the case with the assistance of Vanessa Vargas Quant, Melissa Dorton, and Patty Lau. The prosecution is the result of an investigation by: Homeland Security Investigation’s Cyber Crimes Child Exploitation Group; Martinez Police Department; Salem Police Department in Oregon; the Contra Costa County District Attorney’s Office; the Malaysia Royal Police; numerous law enforcement agencies in the United Kingdom; the Irish Garda; the Royal Canadian Mounted Police; and the Australian Federal Police.
Investigators believe there may be hundreds of other victims not yet identified. Therefore, anyone with information related to this case is urged to call HSI’s national toll-free tip line at 1-866-DHS-2-ICE (1-866-347-2423), or the Martinez Police Department’s tip line at 925–372–3457.
Manitowoc Couple Indicted on Drug and Firearm ChargesRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin, announced that on April 5, 2016, a federal grand jury returned an indictment against Dominique M. Hope (age: 23) and Tamara R. Rudd (age: 23) both of Manitowoc, Wisconsin.
Hope faces charges alleging he was a felon in possession of a firearm, possessed marijuana with the intent to distribute, and possessed a firearm in furtherance of a drug conspiracy, contrary to Title 18, United States Code, Sections 922(g)(1), 924(c)(1)(A), and Title 21, United States Code, Sections 841(a) and 841(b)(1)(D). He faces penalties ranging from a mandatory five years imprisonment up to a life sentence, a $500,000 fine, and a lifetime of supervised release.
The allegation against Rudd contends that she aided and abetted Hope’s possession of a firearm knowing he was a convicted felon, contrary to Title 18, United States Code, Sections 922(g) and 2. She faces up to 10 years imprisonment, a $250,000 fine, and 3 years of supervised release.
This case was investigated by the U.S. Drug Enforcement Administration, the Manitowoc County MEG Unit, the City of Manitowoc Police Department, and the Manitowoc County Sheriff’s Office. The case will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove them guilty beyond a reasonable doubt.
# # # # #