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20 May 2016
Arizona Executive Sentenced for $500,000 Investment SchemeRead the Press Release
BOSTON – An Arizona man was sentenced today in U.S. District Court in Boston in connection with defrauding four people who invested in his foreign currency trading company.
David Prescott, 45, formerly of Boston, was sentenced by U.S. District Judge Allison D. Burroughs to 18 months in prison, three years of supervised release and restitution of $505,619. In November 2016, Prescott pleaded guilty to four counts of wire fraud. Prescott, who previously went by the name of David Weeks, was indicted on those charges in February 2015.
Prescott was the owner and President of Cambridge Currency Partners, LLC (CCP), which was purportedly engaged in the business of buying and selling foreign currency. Prescott falsely represented to investors that their funds would be invested in CCP and used for business purposes, and that the investors would receive a monthly return. In fact, Prescott used the majority of the $500,000 he obtained from four individual investors, one of whom was located in Massachusetts, on his own personal expenses.
As part of the scheme, Prescott solicited investors by promising monthly returns, and made payments to them that purported to be interest, but, in fact, simply consisted of money from other investors. Prescott promised investors guaranteed monthly returns in amounts ranging from three to nine percent with little to no risk to the underlying principal. Prescott made false representations to the investors regarding the balances in their accounts. As a result, Prescott was able to secure multiple investments from the same investors. On one occasion, Prescott allegedly emailed an investor and promised to increase the interest paid on her previous investments if she were willing to invest additional funds, even though Prescott had already spent the majority of her previous investments on personal expenses and repayments to other investors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
19 May 2016
“U Can Stop Traffick” Campaign Against Sex and Drug TraffickingRead the Press Release
In November of 2015, the United States Attorney’s Office developed a public service announcement to raise awareness about sex and drug trafficking activities in the state. This public service announcement “U Can Stop Traffick” has recently been named a winner of a People’s Telly Award.
The Telly Award is the premier award honoring outstanding local, regional, and cable TV commercials and programs. This year, there were over 13,000 entries from all 50 states and numerous countries. The “U Can Stop Traffick” public service announcement, which has been airing on Vermont television stations and can be viewed on the campaign’s website, www.UCanStopTraffick.org, won the highest award, an honor bestowed on less than 10% of the entries. The Telly Award is given by a prestigious judging panel of over 500 accomplished industry professionals, each a past winner of a Silver Telly and a member of The Silver Telly Council, who seek to recognize distinction in creative work. In addition to recognition from the Silver Telly Council, the Internet community helps decide the People’s Telly Awards winners.
The “U Can Stop Traffick” public service announcement illustrates the intersection of drug trafficking and sex trafficking in Vermont. It brings to life how drug dealers are assisted by local individuals, some of whom are coerced by those same drug dealers into the commercial sex trade. The website also includes the powerful stories of women who have been trafficked, recorded in their own words and voices, along with resource lists for individuals in need of help.
The public service announcement was directed by Christian Clark and produced by Christian Clark, Tim Joy, and Justin Bunnell. Tim Joy did the cinematography. When asked to describe his experience in filming the PSA, Christian Clark stated: “It was a very humbling couple of weeks. The biggest challenge in tackling an issue of this magnitude is choosing what to say in thirty seconds. The PSA we crafted is a conversation starter. My hope is that the PSA will motivate people to want to learn more and get involved.” Clark added: “I have the deepest respect for the women who have the courage to share their stories to help spread the word. Furthermore, I want to commend all the great people at the US Attorney’s Office who are working tirelessly day in and day out to put a stop to human trafficking in Vermont.”
U.S. Attorney Miller congratulated the production team for its excellent work in developing the award-winning PSA. “In raising community awareness, the public service announcement is an important step in undermining the foundations of drug dealing in our state and connecting victims with the help and resources they need,” said U.S. Attorney Miller.
A special two-part series on the human trafficking issues raised in the PSA will air tonight and tomorrow at 6:00 pm on WCAX.
William T. “Billy” Walters Charged in Manhattan Federal Court with Insider TradingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced the arrest of WILLIAM T. WALTERS, a/k/a “Billy,” on charges of participating in a scheme, from in or about 2008 through in or about 2014, to commit insider trading principally relating to securities of Dean Foods Company (“Dean Foods” or the “Company”). In addition, Mr. Bharara announced the unsealing of charges against THOMAS C. DAVIS, who pled guilty and admitted to his participation in the scheme earlier this week. On a number of occasions beginning in 2008, DAVIS, who routinely possessed material, nonpublic information through his service on the Dean Foods’ Board of Directors, betrayed his duty of confidentiality to the Company by providing this information to WALTERS before it was publicly announced. As alleged in the charging documents, WALTERS, in turn, used the confidential information to execute profitable trades in Dean Foods that netted him realized and unrealized gains and avoided losses of more than $40 million. In exchange, WALTERS provided DAVIS with substantial pecuniary benefits, including, among other things, capital for joint business ventures and two loans of nearly $1 million that DAVIS largely did not repay.
WALTERS, who is charged with conspiracy, securities fraud, and wire fraud, was arrested yesterday in Las Vegas, Nevada, and will be presented later today before a United States Magistrate Judge in the District of Nevada. His case is before United States District Judge P. Kevin Castel in the Southern District of New York. On Monday, DAVIS pled guilty before Judge Castel to conspiracy, securities fraud, wire fraud, obstruction of justice, and perjury.
In a separate action, the Securities and Exchange Commission (“SEC”) filed civil charges against WALTERS and DAVIS.
U.S. Attorney Preet Bharara said: “Tom Davis has admitted that, over five years as a Dean Foods board member, he repeatedly and systematically fed material nonpublic information about the company to Billy Walters, who we allege benefited handsomely by trading on that information. With a direct channel into Dean Foods’ boardroom, Walters allegedly traded in advance of good news and bad news alike. As alleged, it was all good news for Walters, because he had the information before everyone else – he had tomorrow’s headlines today. Brazen insider trading continues to be a blot on our securities markets, and so the integrity of our markets continues to be a priority for this office. When the board member of a Fortune 500 company feeds inside information to a professional gambler who makes a fortune on well-timed trades in that company’s stock, that is a form of corruption – the corruption of our markets. And we don’t let corruption stand. We intend to prove every one of these allegations in a court of law.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “Trading on inside information for personal gain causes untold devastation in the stock and commodities markets. This kind of criminal behavior keeps wealth concentrated among the powerful, prevents everyday investors from turning a profit, and undermines public confidence in the integrity of the marketplace. The FBI and our federal partners will continue to work to protect Americans from the devastating consequences of these deceptive practices.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “These individuals were more concerned with their ‘high-roller’ image and the continuation of their lavish lifestyles than they were with adhering to fair and equitable investment regulations. This arrest should send a message to all that no matter how much money you accrue, no one is above the law and all will be prosecuted equally for their illegal investment practices.”
According to the allegations in the charging documents unsealed today in Manhattan federal court, including the Indictment,[1] and statements made in court proceedings:
From in or about 2008 through in or about 2014, WALTERS and DAVIS, among others, participated in a scheme to commit insider trading principally related to securities of Dean Foods, a Fortune 500 company that is the largest processor and distributor of fresh milk in the United States. From in or about 2001 until on or about August 7, 2015, DAVIS served as a member of the Board of Directors of Dean Foods (the “Board”), in which role he regularly possessed material, nonpublic information about Dean Foods, including about the Company’s financial performance and results, including quarterly earnings results; contemplated and actual corporate transactions; and other significant corporate and strategic developments (the “Inside Information”). In furtherance of the scheme, DAVIS violated his duties of trust and confidence to Dean Foods by providing Inside Information to WALTERS in advance of public announcements. WALTERS, knowing that DAVIS owed duties of trust and confidence to the Company, used the Inside Information to execute profitable trades in Dean Foods stock. In total, WALTERS’s trading on the basis of Inside Information netted realized and unrealized profits of approximately $32 million and avoided additional losses of approximately $11 million. In return for DAVIS providing the Inside Information to WALTERS, WALTERS, among other things, provided capital to DAVIS for joint business ventures and made two loans to DAVIS for approximately $1 million in total, which DAVIS largely did not repay.
In furtherance of the scheme, and to avoid detection by law enforcement, WALTERS provided DAVIS with a prepaid cellular phone to use when passing Inside Information to WALTERS. Moreover, WALTERS further instructed DAVIS to use code words when discussing the Inside Information, including by referring to Dean Foods as the “Dallas Cowboys.”
Specific Examples of WALTERS’s Insider Trading in Dean Foods
On June 25, 2008, in an unanticipated announcement near the end of the second quarter, Dean Foods informed the public that it had revised upwards its earnings guidance for that quarter. From June 19 to June 23, 2008, WALTERS purchased nearly four million shares of Dean Foods – which constituted between 29 and 37 percent of the daily trading volume of Dean Foods stock on those days – on the basis of tips provided to WALTERS by DAVIS about the second-quarter financial performance. As a result of trading on the Inside Information provided by DAVIS, WALTERS earned realized and unrealized profits of approximately $6 million.
On or about Friday, April 9, 2010, WALTERS and DAVIS met in Las Vegas, Nevada. During that meeting, WALTERS agreed to provide DAVIS with a loan of $625,000, and DAVIS provided Inside Information to WALTERS about Dean Foods’ recent engagement of investment bankers to investigate strategic possibilities related to the separation of WhiteWave-Alpro (the “WhiteWave Spinoff”), a segment of Dean Foods that produced and distributed organic and other branded food and beverage products. On Monday, April 12, 2010, the next trading day, and up through April 15, WALTERS purchased approximately 1.5 million shares of Dean Foods. Less than three weeks later, DAVIS tipped WALTERS about Dean Foods’ forthcoming first-quarter earnings announcement, which DAVIS knew did not meet Wall Street’s expectations. On the following two days, Monday, May 3, and Tuesday, May 4, WALTERS sold the approximately 1.5 million shares of Dean Foods he had purchased in April, which sales constituted 29 and 16 percent, respectively, of the daily trading volume for those days. On May 10, 2010, Dean Foods publicly announced its poor earnings results for the first quarter of 2010 and suspended full-year guidance, which caused the stock to decrease by approximately 28 percent that day. As a result of his timely sales of Dean Foods stock the prior week, WALTERS avoided losses of $7.3 million. Moreover, beginning on May 10, 2010, and continuing through May 14, 2010, WALTERS purchased approximately 1.5 million shares of Dean Foods stock, thereby re-establishing his previous position in the stock at a reduction in cost of $9.5 million.
In addition, on or about May 8, 2012, DAVIS provided Inside Information to WALTERS about Dean Foods’ positive first-quarter earnings and its intention to pursue the WhiteWave Spinoff, on the basis of which WALTERS purchased 1.2 million shares of Dean Foods on May 8 and 9, 2012. On May 9, 2012, Dean Foods announced its earnings results for the first quarter of 2012, which were positive, and that the Company was “mindful of the opportunity . . . to perhaps accrete value for our shareholder.” After this announcement, Dean Foods stock rose by approximately 10 percent. In the ensuing months, DAVIS repeatedly provided WALTERS with additional Inside Information about the WhiteWave Spinoff, including the expected timing of the Spinoff announcement on August 7, 2012. From July 13 through July 31, 2012, WALTERS purchased an additional 2.8 million shares of Dean Foods to raise his total position to 4 million shares.
On August 7, 2012, Dean Foods announced and that it intended to spin off WhiteWave through an initial public offering (“IPO”), and that the Company would maintain ownership over more than 80 percent of WhiteWave stock following the IPO. On August 8, 2012, the day after the announcement, Dean Foods’ stock price increased by approximately 40 percent, netting WALTERS unrealized profits of approximately $17.1 million on his 4 million shares of Dean Foods stock.
After the announcement of the WhiteWave Spinoff, DAVIS continued to provide WALTERS with Inside Information about the forthcoming WhiteWave IPO. By October 25, 2012, the day the IPO was priced above expectations at $17 per share, WALTERS had increased his position in Dean Foods stock to more than 5.3 million shares, which were worth approximately $100 million. By the end of August 2013, after WALTERS received shares of WhiteWave stock in a dividend made to Dean Foods shareholders in May 2013, WALTERS had sold all of his securities in Dean Foods and WhiteWave for gross proceeds of approximately $110 million.
WALTERS’s Insider Trading in Darden Restaurants, Inc.
In or about August 2013, DAVIS received, pursuant to a non-disclosure agreement, a confidential investment plan (the “Investment Plan”) from an investment firm in New York, New York (“Investment Firm A”) related to Darden Restaurants, Inc. (“Darden”), a holding company that owned a number of restaurants. The Investment Plan outlined Investment Firm A’s desire to separate one or more of Darden’s restaurant businesses to unlock additional value in the stock (the “Darden Inside Information”). DAVIS provided this information to WALTERS, who, on August 20 and 21, 2012, purchased 625,000 shares of Darden worth approximately $30 million.
On October 9, 2013, a national newspaper published an article about a significant investment in Darden by Investment Firm A, among others, with the intent to separate Darden into two companies. At the end of the trading day, Darden’s stock price had increased from $46.28 per share to $49.57, resulting in unrealized profits for WALTERS of approximately $1 million.
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WALTERS, 69, is charged with one count of conspiracy to commit securities fraud, four counts of securities fraud, one count of conspiracy to commit wire fraud, and four counts of wire fraud. Count One carries a maximum sentence of five years in prison. Counts Two through Ten each carry a maximum sentence of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense.
On May 16, 2016, DAVIS, 67, pled guilty before Judge Castel to one count of conspiracy to commit securities fraud, one count of conspiracy to commit wire fraud, four counts of securities fraud, four counts of wire fraud, one count of obstruction of justice, and one count of perjury. Counts One and Twelve each carry a maximum sentence of five years in prison. Counts Two through Eleven each carry a maximum sentence of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentences for the defendants will be determined by the judge.
Mr. Bharara praised the work of the FBI and the Postal Inspection Service, and thanked the SEC and the Financial Industry Regulatory Authority (“FINRA”) for their assistance. He also thanked the Las Vegas offices of the FBI and the Internal Revenue Service, Criminal Investigation Division.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brooke E. Cucinella and Daniel S. Goldman are in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Westchester Neurologist Pleads Guilty in Manhattan Federal Court to Tax Fraud ViolationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, Special Agent in Charge of the New York Office of the Internal Revenue Service-Criminal Investigation (“IRS-CI”), announced that DAVID S. YOUNGER, a neurologist with a private medical practice in Manhattan, pled guilty today in Manhattan federal court to one count of tax fraud for falsely classifying personal expenses as business expenses attributable to his medical professional corporation. In total, in 2007 and 2008, YOUNGER falsely classified over $580,000 in expenses. YOUNGER pled guilty before U.S. District Judge Jed S. Rakoff.
According to the Information and statements made at today’s plea proceeding:
YOUNGER, a resident of Westchester County, is a board-certified neurologist engaged in private medical practice in Manhattan through the David S. Younger M.D., P.C., professional corporation (the “Younger P.C.”). In 2007 and 2008, Younger filed both personal tax returns on behalf of himself and his wife, and corporate tax returns on behalf of the Younger P.C. In 2007, YOUNGER used approximately $250,000 of corporate funds to pay personal expenses, and in 2008, YOUNGER used approximately $335,000 of corporate funds to pay personal expenses. YOUGNER caused all of these expenses falsely to be recorded as business expenses such as medical supplies, office expenses, and professional fees in the books and records of the Younger P.C. YOUNGER caused these expenses falsely to be deducted from income on tax returns of the Younger P.C., and YOUNGER also fraudulently omitted these personal expenses as income on his personal tax returns.
Among the personal expenses that YOUNGER falsely categorized as business expenses and deducted on his corporate tax returns in 2007 and 2008 are the following: approximately $100,000 in fees to a private golf and country club, approximately $53,000 in property taxes for YOUNGER’s residence, a $4,300 placement fee for a nanny/housekeeper, approximately $17,000 for the construction of an electric gate at YOUNGER’s residence, $345 for a Mickey Mantle baseball card, approximately $26,000 for the restoration of a piano that was picked up from and delivered to YOUNGER’s residence, approximately $37,000 for a vendor to perform construction work at YOUNGER’s residence, approximately $18,000 for furniture delivered to YOUNGER’s residence, and at least approximately $20,000 of airfare for members of YOUNGER’s family.
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YOUNGER, 61, of Scarsdale, New York, faces a maximum sentence of three years in prison. As part of his plea agreement, YOUNGER is also required to pay restitution to the IRS. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. YOUNGER is scheduled to be sentenced by Judge Rakoff on September 19, 2016, at 4:00 p.m.
Mr. Bharara praised the work of the Internal Revenue Service, Criminal Investigation.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Richard Cooper is in charge of the prosecution.
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Westbank Drug Dealer Sentenced to Ten Years in PrisonRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOEQUELL LEWIS, age 28, of Westwego, was sentenced today to 120 months in federal prison by U.S. District Judge Lance M. Africk.
LEWIS pled guilty to being a member of a twelve-defendant offshoot of the larger Harvey Hustlers group that was involved in the distribution of heroin and crack cocaine in the Avondale and Waggaman areas of Jefferson Parish. LEWIS admitted to selling over one kilogram of heroin on the streets of the Westbank over a two-year period. LEWIS’s co-conspirators have admitted their participation in multiple murders and shootings in Jefferson Parish.
This case is a product of an ongoing investigation into the violent acts in furtherance of the drug trafficking by the Harvey Hustler gang and its various offshoots on the West Bank. It represents the continued coordinated effort of the federal and state law enforcement authorities, including the United States Attorney’s Office, the Jefferson Parish District Attorney’s Office, Special Agents of the Federal Bureau of Investigation, and Officers of the Jefferson Parish Sheriff’s Office.
Assistant United States Attorneys Greg Kennedy, David Haller, and Myles Ranier and Special Assistant United States Attorney Collin Sims, who is a former Assistant United States Attorney and the Criminal Chief at the St. Tammany Parish District Attorney’s Office, are in charge of the prosecution.
West Seneca Man Pleads Guilty to Child Pornography ChargeRead 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 Joseph S. Heleniak, 71, of West Seneca, NY, pleaded guilty to possession of child pornography before U.S. District Judge Lawrence J. Vilardo. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of 20 years, and a fine of $250,000.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between August 30, 2013 and September 1, 2013, the defendant knowingly possessed images of child pornography that were stored on his AOL email account after obtaining them over the internet. Some of the images depicted prepubescent minors. Heleniak was previously convicted of possession of child pornography in 2005 in the Western District of New York and sentenced to 30 months in prison.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Adam S. Cohen, Special Agent in Charge, and the Cheektowaga Police Department under the direction of Chief David Zack. The task force includes the Buffalo Police Department, the Cheektowaga Police Department, and the Niagara County Sheriff’s Office.
Sentencing is scheduled for August 19, 2016 before Judge Vilardo.
Warlock Motorcycle Gang Member Convicted of Drug TraffickingRead the Press Release
PHILADELPHIA – A federal jury, yesterday, returned a guilty verdict against Andrew Carr, 59, of Upper Darby, PA, on the charge of conspiracy to distribute 50 grams or more of methamphetamine. Carr served as the “muscle” and collector of drug debts in a methamphetamine trafficking business which sold approximately $40,000 of methamphetamine monthly in the Philadelphia and Delaware County area. He also sold methamphetamine to his own customers. Carr was a member of the Chester chapter of the Warlocks outlaw motorcycle gang. A sentencing hearing is scheduled for August 17, 2016.
As a result of the investigation, eight members or associates of the drug trafficking business have been convicted. Carr is facing a mandatory minimum sentence of five years in prison with a maximum sentence of 40 years, a possible fine, and up to a lifetime of supervised release.
The case was investigated by the Federal Bureau of Investigations and was prosecuted by Assistant United States Attorney Maria M. Carrillo.
Waldorf Man Indicted for Illegal Transport of Explosives, Illegal Possession of a Machine Gun and Child Pornography OffensesRead the Press Release
Greenbelt, Maryland – A federal grand jury indicted Caleb Andrew Bailey, age 30, of Waldorf, Maryland late yesterday on various charges.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; and Charles County Sheriff Troy Berry.
According to the four count indictment and court documents, on February 18, 2016, postal police and postal inspectors responded to a postal facility in Capital Heights, Maryland and recovered ammunition and explosives from a package that had ruptured open. ATF was notified by the postal inspectors and responded to evaluate the contents of the package. The contents of the package included 119 rounds of reloaded .50 caliber cartridges with M48A1 incendiary projectiles, and 200 rounds of 14.5mm M183A1 spotting projectiles which contain an explosive charge. The package was addressed to an individual in Wisconsin.
According to court documents, on February 25 and March 3, 2016, the U.S. Postal Service customer service received calls from a person who identified himself by a false name in the first call, and then identified himself as Caleb Bailey in the second call. The caller provided the tracking number for the package recovered by ATF, and advised that the package had not yet been delivered. Neither Bailey nor the individual to whom the package was addressed had a federal explosives license to transport the explosives contained in the package.
According to court documents, law enforcement arranged to meet with Bailey at a postal facility on May 5, 2016, for the stated purpose of having Bailey provide information regarding the missing package in person. Bailey did not appear at the agreed meeting time and place. That day, law enforcement executed federal search warrants at adjoining properties associated with Bailey, including his residence, and seized a machine gun. The indictment alleges that Bailey illegally possessed a machine gun on May 5.
The indictment further alleges that from March 2015 to January 2016, Bailey attempted to use and did use a minor to engage in sexually explicit conduct to produce child pornography. The indictment also alleges that Bailey possessed child pornography.
Bailey faces a maximum sentence of 10 years in prison for unlawful transport of explosives by a non-licensee and for illegal possession of a machine gun; a mandatory minimum of 15 years and a maximum of 30 years in prison for production and attempted production of child pornography; and a maximum sentence of 10 years in prison for possessing child pornography. A criminal complaint was filed on May 6, 2016 charging Bailey with unlawful transport of explosives. Bailey is detained pending a detention hearing on May 24, 2016 at 10:00 a.m. in U.S. District Court in Greenbelt, at which time his initial appearance is also scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended ATF- Arson and Explosives Group for the Baltimore Field Division, HSI Baltimore, U.S. Postal Inspection Service - Washington Division and Charles County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jennifer R. Sykes and Thomas P. Windom, who are prosecuting the case.
United States Files Lawsuit Alleging That Guild Mortgage Improperly Originated and Underwrote FHA-Insured Mortgage LoansRead the Press Release
The United States has filed a complaint in the U.S. District Court for the District of Columbia against Guild Mortgage Company (Guild) under the False Claims Act for improperly originating and underwriting mortgages insured by the Federal Housing Administration (FHA), the Justice Department announced today. Guild is a mortgage lender headquartered in San Diego, California.
“This case is another example of the Justice Department’s continued efforts to ensure that lenders that participate in the FHA mortgage insurance program act in good faith and conduct appropriate due diligence when committing the United States to insure home loans,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “To protect the housing market and the FHA fund, we will continue to hold responsible lenders that knowingly violate the rules.”
Guild participated in the FHA insurance program as a direct endorsement (DE) lender. As a DE lender, Guild had the authority to originate, underwrite and certify mortgages for FHA insurance. If a DE lender such as Guild approves a mortgage loan for FHA insurance and the loan later defaults, the U.S. Department of Housing and Urban Development (HUD), FHA’s parent agency, is responsible for the losses resulting from the defaulted loan. Under the DE lender program, neither the FHA nor HUD reviews the underwriting of a loan before it is endorsed for FHA insurance. HUD therefore relies on DE lenders to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance and DE lenders must certify that every loan endorsed for FHA insurance is underwritten according to the applicable FHA standards.
The government’s complaint alleges that, from January 2006 through December 2011, Guild knowingly submitted, or caused the submission of, claims for hundreds of improperly underwritten FHA-insured loans. The complaint further alleges that Guild grew its FHA lending business by ignoring FHA rules and falsely certifying compliance with underwriting requirements in order to reap the profits from FHA-insured mortgages. For example, Guild allegedly allowed underwriters to waive compliance with FHA requirements when underwriting a loan. Additionally, Guild used unqualified junior-underwriters who did not have a DE certification to waive mandatory conditions on higher risk loans where HUD required underwriting only by highly trained DE underwriters.
The government’s complaint further alleges that Guild’s senior management focused on growth and profits and ignored quality. From 2006 to 2012, Guild conducted at least 125 branch audits in which almost 40 percent resulted in either a qualified rating or unsatisfactory rating. A qualified rating was defined as having a “significant number of findings, and/or findings noted that have more serious impact or risk to Guild,” or “Knowledge of procedures and controls; however, they appear to be inefficient.” An unsatisfactory rating was defined as one where “serious concerns were noted: lack of knowledge, procedures, and/or controls in branch.” The complaint alleges that, through Guild’s quality control reviews, significant defects were found in over 20 percent of the FHA loans reviewed between 2006 and 2011 and over half the loans had either significant or moderate defects. Significant defects included fraud, misrepresentation and other serious findings while moderate defects included not following guidelines. However, Guild did not calculate or distribute any error rate during the relevant time period, thus management was not presented with these findings. Additionally, for many of the quarters from 2006 through 2009, Guild did not even distribute any of the quality control findings to management. As a result, Guild management often did not review or remediate findings from quality control audits during these years. In the quarters where Guild management actually did review quality control findings, it did so almost a year after the loans closed and failed to timely remediate any identified problems. In 2013, when Guild finally began addressing the quality of its FHA underwriting, Guild’s head of quality control pointed out the ineffectiveness of its past efforts at addressing loan quality: “I’m not optimistic about training reminders and individual follow-ups being all that effective.”
The government’s complaint alleges that as a result of Guild’s knowingly deficient mortgage underwriting practices, HUD has already paid tens of millions of dollars of insurance claims on loans improperly underwritten by Guild, and that there are many additional loans improperly underwritten by Guild that are currently in default and could result in further insurance claims on HUD. For example, the government’s complaint identifies a mortgage loan that was improperly underwritten in violation of HUD requirements, causing the borrower to default and HUD to pay the loss on the loan. Specifically, Guild failed to verify the borrower’s prior rental payments, overstated the borrower’s income, failed to develop a credit history for the borrower who had no credit score, exceeded FHA’s qualifying debt to income ratio without determining whether certain compensating factors were present, and failed to identify the source of a large deposit made to the borrower’s account. The underwriter at Guild improperly waived multiple conditions and allowed an unauthorized junior underwriter to do the same for other conditions. In sworn testimony, the Guild underwriter admitted the loan failed to comply with FHA underwriting requirements.
“The Federal Housing Administration’s insurance program is meant to encourage lenders to expand opportunity for homeownership by providing financing to prospective buyers who otherwise might not be able to enter the housing market,” said U.S. Attorney Channing D. Phillips for the District of Columbia. “To ensure that prospective homebuyers realize the dream of long term homeownership, the program has strict rules and is not a license for lenders to carelessly subject federal dollars to risk. This lawsuit is designed to help the FHA – and American taxpayers -- recoup tens of millions of dollars in losses attributable to a lender accused of improperly underwriting FHA-insured mortgages and committing the government’s guarantee to mortgages that failed to comply with program rules.”
“The decision to intervene in this matter should serve as a reminder of the priority given to pursuing lenders that violate HUD program rules in order to hold them accountable and the value of private citizen participation, including whistleblowers, in pursuing lenders that violate the rules,” said HUD Inspector General David A. Montoya.
“FHA relies on the honesty and integrity of those lenders participating in our program,” said HUD’s General Counsel Helen R. Kanovsky. “The action we take today should send a clear message that we will not tolerate the abuse of our programs or of the families who should benefit from them.”
The lawsuit was brought under the qui tam, or whistleblower, provisions of the False Claims Act by a former employee of Guild. Under the act, a private party may bring suit on behalf of the United States and share in any recovery. The government may intervene in the case, as it has done here. The False Claims Act allows the government to recover treble damages and penalties from those who violate it.
The investigation of this matter was a coordinated effort among HUD, its Office of Inspector General, and the U.S. Attorney’s Office for the District of Columbia and the Civil Division’s Commercial Litigation Branch.
The action is captioned United States ex rel. Dougherty v. Guild Mortgage Company (D.D.C.). The claims asserted in the complaint are allegations only and there has been no determination of liability.
U.S. Attorney Patrick Miles's "Justice Scholars" Program Culminates with Mock Trial Before Federal and State JudgesRead the Press Release
GRAND RAPIDS, MICHIGAN — At the beginning of the 2015–2016 school year, U.S. Attorney Patrick Miles introduced Justice Scholars to a class of seventh-grade students at Gerald R. Ford Academic Center, a Grand Rapids Public School. The new program was developed by U.S. Attorney Miles to expose students to the criminal justice system in a constructive way, while fostering positive connections between youth, law enforcement, and the broader legal community.
Each month over the course of the school year, the class heard from “teachers” who work in the criminal justice system. The interactive presentations took the scholars through the foundations and aims of the criminal justice system, the stages of a criminal case, and possible career paths. Presenters encouraged students to make healthy and constructive decisions during their middle- and high-school years, so they could pursue jobs in the criminal justice system in the future. U.S. Attorney Miles said that the “overwhelming volunteer response by law enforcement and legal partners in the community made the pilot year of Justice Scholars a tremendous success.”
Federal Bureau of Investigation Special Agent Sean Burns, and Chief of Staff for Grand Rapids Public Schools, Larry Johnson, himself a retired police sergeant, taught the students about criminal investigations, interviewing witnesses, and analyzing evidence. Forensic technicians from the Grand Rapids Police Department brought materials and tools so students could get hands-on experience “lifting” fingerprints from objects. Assistant United States Attorneys explained the roles and ethical responsibilities of prosecutors. Along with others from the Federal Public Defender’s Office, Interim Federal Defender Sharon Turek discussed the importance of quality legal representation for criminal defendants. United States Magistrate Judge Ellen S. Carmody talked with the class about the role of the judge in a criminal case, as well as her path to the bench. United States Probation Officer Mathew Erickson discussed the supervision of individuals on probation and federal supervised release, and Grand Rapids Police Department Sergeant Terry Dixon talked with students about some of the difficulties faced by defendants when they return to their communities after prison.
For many students, the end of the school year reflects a winding-down of activities and work. But for Justice Scholars, May is the busiest month: the program culminates with mock criminal trials, before actual judges. Today, after weeks of preparing a hypothetical bank robbery case, the seventh-grade Justice Scholars conducted mock trials in federal and state courtrooms before four judges: Judge Jane M. Beckering, Third District Michigan Court of Appeals; Chief Judge Robert J. Jonker, United States District Court for the Western District of Michigan; United States Magistrate Judge Ray Kent, United States District Court for the Western District of Michigan; and Judge Christopher P. Yates, 17th Circuit Court of Michigan, Kent County. Classroom teacher Emily Thornburg observed that, in preparing for the trials, many students made great strides in the areas of critical thinking and public speaking.
Students from Western Michigan University Cooley Law School and employees of the United States Attorney’s Office acted as civilian witnesses in the trials, while FBI Special Agents “acted” as FBI Special Agents. After working with students for several hours in the classroom over the past several weeks, attorneys from the criminal defense bar, the Federal Defender’s Office, and the United States Attorney’s Office provided advice and support, throughout the trials, to the seventh-grade prosecutors and defenders. Students from the eighthgrade class at Gerald R. Ford Academic Center served as jurors in each courtroom.
Whether the hypothetical defendants were found guilty or not guilty of bank robbery, the real Justice Scholars on both sides of the case deserve congratulations and praise for their hard work and enthusiasm in the program’s inaugural year.
END
Two Men Sentenced in Connection with Murder in Chautauqua CountyRead 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 Jonathan Conklin, 45, who was convicted of carjacking, was sentenced to 25 years in prison by Senior U.S. District Judge William M. Skretny. The sentence will be served consecutive to a 25 years to life sentence Conklin received in Chautauqua County Court for murder.
In addition, Judge Skretny sentenced co-defendant Charles Sanford, 32, to 15 years for unlawful possession of a firearm and conspiracy to transport a stolen vehicle in interstate commerce.
“The victim in this case, Mary Whitaker, represented the best of our community,” said U.S. Attorney Hochul. “While the defendants' cowardly actions may have taken her life, they will never extinguish her generous and caring spirit which continues to live on in all who knew her.”
Assistant U.S. Attorney Timothy C. Lynch, who handling the case, stated that Conklin and Sanford robbed Mary Whitaker inside her Sherman, NY home on August 20, 2014. The two men approached the victim’s home and Sanford rang the doorbell. Soon after Whitaker answered the door, Conklin shot and killed her. Conklin and Sanford then stole her vehicle and drove it to Erie, Pennsylvania where they were arrested on August 22, 2014.
U.S. Attorney Hochul further stated “Today's sentence all but guarantees that these defendants will never be in position to injure another person.”
The sentencings are the culmination of an investigation on the part of the Chautauqua County Sheriff’s Office, under the direction of Sheriff Joseph A. Gerace, the Chautauqua County District Attorney’s Office, under the direction of Acting District Attorney Patrick Swanson, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, and the City of Erie (Pennsylvania) Police Department, under the direction of Chief Randy M. Bowers.Two Men Plead Guilty in Major Cocaine ConspiracyRead 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 Alvin Torres, Jr. pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, cocaine, before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine. In addition, Rafael Burgos, Jr. pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine which is punishable by a mandatory minimum 10 years in prison, a maximum of life and a $10,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that between 2013 and June 10, 2015, law enforcement officers investigated a drug trafficking organization led by defendants Burgos and David Jesus Pagan. During the course of the investigation, it was determined that the defendants distributed multiple kilograms of cocaine throughout the Dunkirk area.
Burgos and Torres were arrested in June of 2015 along with Samuel Hernandez III, Javier Pagan, Jr., David Jesus Pagan, and Angel Pierluissi. Search warrants were executed at the time of the arrests at six properties which resulted in the recovery of more than seven kilograms of cocaine (the largest seizure ever in the City of Dunkirk) and approximately $175,000 in cash as well as an AR-15 assault rifle with a 30 round magazine. During a search of Burgos’ residence, officers discovered a secret room with a money counting machine.
Hernandez and Javier Pagan, Jr. have been convicted and are awaiting sentencing. Charges are pending against David Jesus Pagan and Angel Pierluissi. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The pleas are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office, the Dunkirk Police Department, under the direction of Chief David C. Ortolano, the Chautauqua County Sheriff’s Office, under the direction of Sheriff Joseph A. Gerace, the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy S. Whitcomb, and the Chautauqua County District Attorney’s Office, under the direction of Patrick Swanson.
Torres will be sentenced on September 7, 2016 at 10:30 a.m. before Judge Wolford. Sentencing of Burgos will be scheduled at a later date.
Two Men Indicted on Federal Drug Trafficking ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that two men allegedly involved in drug trafficking in York and Berks Counties were indicted yesterday by a federal grand jury in Harrisburg.
According to United States Attorney Peter Smith, Ruben Guadalupe Morales, age 25, and Jose G. Avila, age 28, both of Reading, were charged in an indictment with conspiracy to distribute and possess with intent to distribute five kilograms and more of cocaine hydrochloride and 280 grams of crack cocaine during January through April 2016. Each man was also accused of possessing with intent to distribute cocaine on April 27, 2016. Avila was also charged with possessing firearms in furtherance of drug trafficking. The indictment also seeks the forfeiture of U.S. currency totaling approximately $137,000 seized by law enforcement agencies during the investigation conducted by the Drug Enforcement Administration and the York City Police Department.
Both men were arrested on April 27.
The case is assigned to Assistant U.S. Attorney Christy H. Fawcett.
If convicted each defendant faces a maximum sentence of life imprisonment, a $10,000,000 fine, and a lifetime of supervised release. Avila is also subject to a five-year mandatory minimum for the firearms charge which must be served consecutive to any other sentence imposed.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Arrested for Possession of Firearms Stolen from Federally Licensed Firearms DealerRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the filing of a criminal complaint and arrests of Kimberly Carnell White, Jr. (27, Orlando) and James Romando Harris, II (28, Orlando) for possession of firearms by convicted felons. If convicted, each faces up to 10 years in federal prison.
According to the complaint, a federally licensed firearms dealer in Marion County was burglarized during the morning of May 5, 2016. Later that day, ATF received information that White had several firearms to sell that came from a location he claimed to have “hit.” That same day, undercover agents from the Orange County Sheriff’s Office purchased five firearms from White and Harris. The serial numbers of those firearms matched those of the firearms that had been stolen from the federally licensed firearms dealer. Both White and Harris have prior felony convictions and therefore are prohibited from possessing firearms or ammunition under federal law.
On May 13, 2016, the Orange County Sheriff’s Office, the Orlando Police Department, and ATF executed federal search warrants at the Orlando residences where the undercover transactions had been conducted and where other firearms had been seen. During the execution of those warrants, law enforcement recovered seven firearms from one residence and four firearms from the other residence. Of those 11 firearms, 4 of them had serial numbers that matched those of the firearms reported stolen from the federally licensed firearms dealer. In total, investigators have seized 16 firearms, including 9 that were reported stolen from the firearms dealer.
These arrests were the result of a multi-agency investigation focused on the recovery of the firearms. This investigation is ongoing.
“These arrests demonstrate the resolve our local, state and federal partners have to keep guns off the streets, and put the felons that traffic in illegal firearms behind bars,” said Orange County Sheriff Jerry L. Demings. “Together we will continue to seek out any other subjects who assisted in this crime and who would endanger our children and communities.”
“By working together with our law enforcement partners at the Orange County Sheriff’s Office, the U.S. Attorney's Office and ATF, we were able to get 16 illegal guns off the street,” said Orlando Police Chief John Mina. “Any time we can get crime guns out of the hands of criminals it's a victory for all of us.”
“I applaud the ATF special agents and the investigators with the Orange County Sheriff's Office and the Orlando Police Department for their excellent work in quickly arresting these individuals selling stolen guns,” said ATF Special Agent in Charge Regina Lombardo. “This investigation will make our communities safer but we still have more work to do in recovering all of the guns stolen from a licensed federal firearms dealer.”
A criminal complaint is merely an allegation 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 is being investigated by the Orange County Sheriff’s Office, the Orlando Police Department, the Marion County Sheriff’s Office, the Belleview Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It will be prosecuted by Assistant United States Attorney Sean P. Shecter.
Three from Northeast Ohio indicted for distributing cocaineRead the Press Release
Three people from Northeast Ohio were arrested this morning for their roles in a cocaine distribution conspiracy, said Acting U.S. Attorney Carole S. Rendon and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Named in the nine-count indictment are: Christopher Fitzgerald, 41, of Bedford Heights; Rashard Smith, 42, of Northfield, and Chiquita Anderson, 42, of Bedford.
Fitzgerald and Smith worked as couriers at a domestic shipping company and used their positions to ship kilograms of cocaine from California to Cleveland. Anderson maintained a premises to assist in the cocaine distribution, according to the indictment.
Prosecutors are seeking to forfeit the money involved in the alleged crime.
This case is being prosecuted by Assistant U.S. Attorneys Margaret Sweeney and Michelle M. Baeppler following an investigation by the Northern Ohio Law Enforcement Task Force.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendants’ prior criminal records (if any), the defendants’ role in the offense, and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Texas Man Coordinated Cocaine Shipments in Large Scale Drug Trafficking SchemeRead the Press Release
ERIE, Pa. – A former resident of Houston, Texas, pleaded guilty in federal court in Pittsburgh, Pennsylvania to a charge of violating federal drug laws, United States Attorney David J. Hickton announced today.
Raul Gerardo Ruiz Maldonado, 42, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from June 2013 through February 2015, Maldonado engaged in a conspiracy with eighteen co-defendants to distribute and possess with intent to distribute between 50 and 150 kilograms of cocaine. According to information provided to the Court, the investigation revealed that an Erie area drug trafficking organization was being sourced primarily cocaine from individuals in Texas associated with organizations in Mexico. The drugs were imported into the United States and were then brought into Houston, Texas. Once in Houston, co-conspirators coordinated the drug loads to be brought into Ohio and Pennsylvania. According to information provided to the Court, the cocaine was transported from Houston, Texas to Erie, Pennsylvania and elsewhere using vehicles rigged with hidden compartments. The Court was advised that Ruiz Maldonado, known as Nariz, became the coordinator of the shipments of cocaine out of Texas to the Erie, Pennsylvania based organization. Members of the conspiracy in Erie would contact Ruiz Maldonado in Texas and place orders for the cocaine. Ruiz Maldonado would then work closely with other co-conspirators to communicate with the organizations’ drug couriers as they traveled to Texas. Ruiz Maldonado and others then arranged for the drug courier vehicle to arrive at the distribution point, to receive the shipments of drug money, and to coordinate loading the kilograms of cocaine into the hidden compartment.
Judge Cercone scheduled sentencing for September 15, 2016 at 10:45 a.m. The law provides for a maximum total sentence of life in prison, a fine of $4,000,000, 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 Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Homeland Security Investigations, the Drug Enforcement Administration, the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service, the Bureau of Alcohol Tobacco Firearms and Explosives and the Arkansas State Police conducted the investigation that led to the prosecution of Maldonado.
Syracuse Man Pleads Guilty to Failing to Register as A Sex OffenderRead the Press Release
SYRACUSE, NEW YORK –Carl Switala, 34, of Syracuse, New York, pled guilty yesterday to failing to register as a sex offender, announced United States Attorney Richard S. Hartunian.
Switala was charged with violating the Sex Offender Registration and Notification Act ("SORNA"), which requires a convicted sex offender to register, and keep that registration current, wherever he or she resides, is employed, or is a student. As part of his guilty plea, Switala admitted that he was previously convicted of Criminal Sexual Conduct in the First Degree in Michigan, which required him to register as a sex offender for the rest of his life, and that he had moved from North Carolina to Syracuse in November 2015 without ever registering in New York or updating his registration in North Carolina.
As a result of his conviction, Switala now faces a maximum sentence of 10 years imprisonment, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. Sentencing is scheduled for September 15, 2016 before U.S. District Judge David N. Hurd.
This case was investigated by the United States Marshal Service Sex Offender Investigation Branch and is being prosecuted by Assistant U.S. Attorney Robert S. Levine.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Swain County Woman Sentenced to 10 Years for Killing Her HusbandRead the Press Release
ASHEVILLE, N.C. – Pattie Sue Bradley, 43, of Cherokee, N.C. and an enrolled member of the Eastern Band of Cherokee Indians, was sentenced today to 120 months in prison for killing her husband, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger also sentenced Bradley to three years of supervised release following her prison term.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief James Dike Sneed of the Cherokee Indian Police Department (CIPD).
According to the information to which Bradley pleaded guilty, other documents filed in this case and statements made in court, on or about January 13, 2015, in Swain County, in Indian Country, that is within the boundaries of the Eastern Band of Cherokee Indians reservation, Bradley stabbed and killed her husband, Henry Bradley, also an Indian. Court records show that CIPD arrived at the Bradleys’ residence in response to a 911 call. When the responding officer asked Pattie Bradley about what had occurred, Bradley told him that another individual had tried to break into the house and she had cut him with a knife.
According to court records, the officer then noticed that the victim was sitting and passed out on the couch inside the couple’s home. The officer also observed that the victim’s hands were covered with blood. Pattie Bradley stated that the victim had a cut on his hand but when emergency technicians arrived at the scene they determined that the victim had actually been stabbed once in the abdomen. The victim was transported to the hospital, where he later died. On January 14, 2015, CIPD interviewed Pattie Bradley who told the officers that on the night of the incident she and the victim had been drinking and arguing, and she admitted to stabbing the victim over the course of the argument.
Bradley pleaded guilty on October 23, 2015 to one count of assault with intent to commit murder. She is currently in custody and upon designation of a federal facility she will be transferred to the custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
The FBI and CIPD investigated the case. Assistant U.S. Attorney John Pritchard prosecuted the case.
Sterling Heights Man Sentenced to 30 Years in Prison for Child Exploitation CrimesRead the Press Release
A Sterling Heights man was sentenced to more than 30 years in federal prison after having been convicted in January by a jury of producing child pornography and enticing a minor online, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation.
Dennis George Dehate, 51, was sentenced yesterday by United States District Judge Sean Cox in Detroit.
Evidence presented during the trial established that DeHate preyed upon a 13-year-old girl, convincing her to produce sexually explicit images and videos for him. DeHate used the text message application, KIK, to communicate with the child, who lived out of state.
“Cell phone technology now provides a virtual doorway for sexual predators to enter children’s bedrooms from many states away,” McQuade said. “We urge parents to talk to their children about the dangers of communicating with strangers online, and to assure children that if they are victimized, they should never be ashamed to ask for help.”
“The sentencing of Dehate is a tremendous victory for the many investigators, counselors and non-government organizations tirelessly working to protect our nation’s children from online threats. The fight to eradicate such predators continues and the FBI asks anyone with information regarding such activity to immediately contact their nearest FBI field office or law enforcement agency,” Gelios said.
This case was investigated by Special Agents of the Federal Bureau of Investigation. The case is part of the Project Safe Childhood initiative, and was prosecuted by Assistant United States Attorney Maggie Smith.
St. Louis Area Woman Sentenced on Charges Involving a Credit Card Fraud SchemeRead the Press Release
St. Louis, MO – Cherri Barton was sentenced to 57 months in prison on charges involving a scheme to defraud several elderly victims and credit card issuers of more than $112,588 between August 2012 and May 2015. Barton called elderly individuals and told them their accounts were past due in order to obtain their identifying information and bank account information. She then used the information to purchase items, including gift cards.
According to court documents, in August 2012, Barton began telephoning elderly people with a ruse that their utilities were in danger of being disconnected due to lack of payment. In order to continue service, they were required to provide a credit card number. In further discussions, Barton also obtained identifying information, such as social security numbers and dates of birth. Using this information, Barton contacted the victims’ creditors and added herself as an authorized user to the credit accounts. In order to perpetrate the scheme, Barton also transferred the telephone services of some of the victims to her cell phone so when creditors attempted to contact the legitimate account holders, they reached the defendant.
Barton, St. Louis County, pled guilty in January to one felony count of aggravated identity theft and three felony counts of access device fraud. She appeared today for sentencing before United States District Judge Carol E. Jackson.
The case was investigated by the Postal Inspection Service, St. Louis County Police Department and the cities of Maryland Heights, Florissant, Overland, St. Louis, Clayton, Webster Groves and University City. Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney’s Office.
St. Joseph Man Indicted for Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man was indicted by a federal grand jury today for robbing UMB Bank.
Terry L. Hager, 48, of St. Joseph, was charged in a federal indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Hager stole $13,957 from UMB Bank, 1211 N. Belt Hwy., St. Joseph, on March 5, 2016.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the St. Joseph, Mo., Police Department and the FBI.
St. John Man Indicted for Theft of Social Security MoniesRead the Press Release
HAMMOND- United States Attorney David A. Capp announced today that a federal grand jury in Hammond returned a two-count indictment charging a Jerald W. Markward, 62, of Saint John, Indiana with one count of theft of federal money and one count of social security fraud for allegedly applying for and receiving Social Security Disability Insurance Benefits (“SSDIB”) payments despite not being eligible to receive those payments.
The indictment alleges that from about June 2011 to about May 2015, Markward stole $107,291 in SSDIB payments which he was not eligible to receive because he was simultaneously performing outside work in heating, cooling, and refrigeration, and failing to report that additional income as he was required to do.
The case is being investigated by the Social Security Administration and prosecuted by Assistant U.S. Attorney Maria N. Lerner.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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Springfield Man Indicted on Federal Firearm ChargeRead the Press Release
BOSTON – Kenneth Finch, Jr., 29, of Springfield, was indicted by a federal grand jury in Springfield on one count of being a convicted felon in possession of a firearm.
According to court documents, in June 2015, law enforcement received information that Finch was a source for firearms in the Springfield area. On June 3, 2015, Finch sold a Ruger Model P-90 .45 caliber pistol and six rounds of .45 caliber ammunition to two undercover officers in exchange for $1,200. Finch had prior felony convictions in North Carolina for possession of a firearm by a convicted felon, breaking and entering, attempted burglary in the second degree, and possession with intent to distribute marijuana.
The charge provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Katharine A. Wagner of Ortiz’s Springfield Branch Office.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Seven Brockton Residents Indicted on Fentanyl and Firearms ChargesRead the Press Release
BOSTON – Seven Brockton residents were indicted in U.S. District Court in Boston with trafficking fentanyl and with firearms-related charges.
Luis DaCosta, 21, aka “Jesse” and “Slu;” Gilvan Monteiro, 25, aka “G;” Edson Gomes, 19, aka “E” and “Evil;” Seidica Monteiro, 27; Jeffrey Oliveira, 21, aka “Chubbs;” and Justin Marceline, 33, were charged with one count of conspiracy to possess with intent to distribute fentanyl. Gomes and DaCosta are also charged with possession of a firearm in furtherance of a drug trafficking crime. Gabriel Nieves, 24, is also charged with one count of being an unlawful user of controlled substance in possession of a firearm and ammunition.
DaCosta, Gomes and Monteiro were already in federal custody following their arrests on a criminal complaint on April 4, 2016. Monteiro was arrested this morning and detained pending a detention hearing scheduled for May 24, 2016. Marceline is scheduled to appear in U.S. District Court in Boston tomorrow. Oliveira remains a fugitive and information on his whereabouts, should be directed to the Brockton Police Department. Nieves was already in state custody on related state charges.
According to charging documents, from December 2015 to March 2016, the defendants sold fentanyl on numerous occasions in the Brockton area, and several times the drug was seized by law enforcement officers from the defendants’ associates. In addition, on Feb. 11, 2016, law enforcement officers seized a loaded Smith and Wesson .40 caliber handgun from an associate of Gomes’s during a vehicle stop, and seized a loaded Smith and Wesson 9mm handgun and more than 30 grams of fentanyl from the hotel room in which both Monteiro and DaCosta were staying when they were arrested on April 5, 2016.
According to the complaint affidavit, the defendants are alleged to have violent histories and gang associations. Monteiro has a lengthy criminal record which includes narcotics and firearms offenses and assault and battery with a dangerous weapon. According to the affidavit, law enforcement seized fentanyl from Monteiro’s customers on numerous occasions. Gomes, who also has a violent criminal history, is alleged to have engaged in gang-related shootings and a car chase with police as recently as December 2015. According to the affidavit, DaCosta was recently released on bail after he allegedly shot a person in Rhode Island on March 19, 2016. DaCosta also allegedly sold fentanyl to a person that overdosed in February 2016.
This case is brought as part of the federal response to the growing opioid abuse epidemic in Massachusetts and other New England states. A recent surge in overdose deaths has been attributed in part to the addition of Fentanyl to heroin. Fentanyl is a powerful synthetic opiate that is 50 to 100 times more potent than morphine and, when added to heroin, creates a toxic mixture substantially more potent, and more dangerous, than heroin alone.
The conspiracy charge provides a sentence of no greater than 20 years in prison, a minimum of three years of supervised release and a fine of $1 million. The charge of firearm possession in furtherance of drug trafficking provides an additional five years in prison to the sentence. The charge of unlawful user of a controlled substance in possession of a firearm and ammunition carries a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy Cruz; and Brockton Police Chief John Crowley, made the announcement today. The case was investigated by the Federal Bureau of Investigation, the Massachusetts State Police assigned to the Plymouth Country District Attorney’s Office, MSP CAT Team, MSP Gang Unit, the New England High Intensity Drug Trafficking Area (HIDTA), and the Brockton and Randolph Police Departments. The case is being prosecuted by Assistant U.S. Attorney Glenn A. MacKinlay of Ortiz’s Organized Crime and Gang Unit.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Serial Armed Robber Pleads GuiltyRead the Press Release
Baltimore, Maryland – Michael Toliver, age 40, of Baltimore, pleaded guilty today to robbery.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; Commissioner Kevin Davis of the Baltimore Police Department; and Chief Gary Gardner of the Howard County Police Department.
According to his plea agreement and court documents, from May 17 to June 4, 2014, Toliver and others robbed commercial businesses located in Baltimore, Baltimore County and Howard County at gunpoint. In several of the robberies co-defendant Marcus Gray stood at the door and acted as the lookout, while Toliver pointed a gun at employees and demanded money. Toliver admitted to robbing the following stores in Maryland:
Exxon gas station, Forest Rd., Columbia, on May 17;
Burger King, Rolling Mills Road, Dundalk, on May 17;
Bob Evans, Wholesale Club Dr., Nottingham, on May 19;
Safeway Food Stores, Harford Rd., Baltimore, on May 23;
Dunkin Donuts, Reisterstown Rd., Baltimore on May 23;
Sprint, Baltimore National Pike, Baltimore, on May 24;
Royal Farms, Pulaski Highway, Baltimore, on May 31;
BP gas station, Park Heights Ave., Baltimore, on May 31;
Royal Farms, Southwick Dr., Baltimore, on May 31; and
Royal Farms, Edmondson Ave., Baltimore, on June 4.
During the Dunkin Donuts robbery, Toliver struck the manager in the head with a handgun, causing injury. During the Sprint store and BP gas station robberies, Toliver fired his gun into the floor or ceiling, when the managers of each store did not open the store’s safe.
Law enforcement reviewed video recordings of the robberies and identified Toliver as one of the robbers. On June 4, 2014, law enforcement arrested Toliver and executed a search warrant on his car. They seized a handgun and ammunition, along with a BB gun, a SWAT vest and gloves. Gray was arrested the following day. Law enforcement executed additional search warrants and seized from Toliver’s residence another handgun, ammunition, $3,780 in coins or cash, and clothing worn by Toliver during several robberies. Subsequent investigation revealed that the gun seized from Toliver’s vehicle was the gun fired during the BP Gas station robbery.
Toliver and the government have agreed that if the Court accepts the plea agreement, Toliver will be sentenced to 15 years in prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for August 25, 2016 at 11:00 a.m.
Marcus Gray, age 42, of Baltimore, previously pleaded guilty to his participation in several of the robberies and awaits sentencing.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Baltimore City Police Department, Howard County Police Department and Baltimore County, City and Howard County State’s Attorney=s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer, who prosecuted the case.
Sentencings for May 16 - May 19, 2016Read the Press Release
Jose Luis Perez-Arias, 31, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 19, 2016, for illegal re-entry of a previously deported alien into the United States. Perez-Arias was arrested in Rock Springs, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Eric Duff, 38, of Wright, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 19, 2016, for possession of child pornography. Duff was arrested in Cheyenne, Wyoming. He was sentenced to eight months of home confinement, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment, restitution in the amount of $4,000.00 and a Justice for Victims of Trafficking Act assessmernt in the amount of $1,000.00. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force and the Federal Bureau of Investigation.
Emory Christian, 19, of Fort Washakie, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 18, 2016, for assault resulting in serious bodily injury. Christian was arrested in Fort Washakie, Wyoming. He received time served, to be followed by two and a half years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $42,573.01. This case was investigated by the Federal Bureau of Investigation.
Dale Allen Bennett, 39, of Shoshoni, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 18, 2016, on two counts of distribution of methamphetamine, one count of possession with intent to distribute methamphetamine and one count of carrying a firearm during and in relation to a drug trafficking crime. Bennett was arrested in Riverton, Wyoming. He received 130 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a fine of $500.00 and a $400.00 special assessment. This case was investigated by the Riverton Police Department, the Fremont County Sheriff’s Office, and the Wyoming Division of Criminal Investigation.
Joshua Arlint, 33, of Helena, Montana, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 18, 2016, for possession of child pornography. Arlint was arrested in Cheyenne, Wyoming. He received 57 months imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $100.0 special assessment and restitution in the amount of $2,000.00. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force and the Federal Bureau of Investigation.
James Michael Underwood, 41, of Yakima, Washington, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 18, 2016, for being a felon in possession of a firearm. Underwood was arrested in Torrington, Wyoming. He received 26 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Erik Kane Sehnert, 39, of Cody, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on May 16, 2016, for possession with intent to distribute 50 grams or more of methamphetamine and for carrying a firearm during and in relation to a drug trafficking crime. Sehnert received 90 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 special assessment and restitution in the amount of $1,000.00. This case was investigated by the Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Savannah Man Sentenced to Federal Prison for Manufacturing Counterfeit CurrencyRead the Press Release
SAVANNAH, GA: De’von Le’edward Walker, 21, of Savannah, Georgia, was sentenced earlier this week by U.S. District Court Judge William T. Moore, Jr. to 30 months in federal prison for his role in the manufacturing and selling of counterfeit U.S. currency.
According to court documents and evidence presented at hearings, Walker and a partner- in-crime created thousands of dollars of counterfeit Federal Reserve Notes. Walker then sold the counterfeit currency to others in exchange for real money. Investigation by the U.S. Secret Service revealed that many of the counterfeit notes manufactured by Walker had been passed in Georgia, South Carolina, Florida and Rhode Island.
U.S. Secret Service Special Agent Matthew Britsch investigated Walker with assistance from the Chatham County Sheriff’s Office. Assistant United States Attorney Theodore S. Hertzberg prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Sallisaw Woman Pleads Guilty to Theft of Federal Program FundsRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JADE LaRAE OBREGON, age 38, of Sallisaw, Oklahoma, pled guilty to THEFT OF FEDERAL PROGRAM FUNDS, in violation of Title 18, United States Code, Section 1341, punishable by up to 10 years imprisonment, up to $250,000.00 fine or both.
The Indictment alleged that on or about January 1, 2012, and continuing through December 31, 2013, in the Eastern District of Oklahoma, JADE LaRAE OBREGON, defendant herein, being an agent of Sequoyah Memorial Hospital, said organization receiving in the one year period beginning January 1, 2012, benefits in excess of $10,000 from federal health care programs, embezzled, stole, obtained by fraud, and knowingly converted to the use of a person not the rightful owner, property worth at least $5,000 and owned by such organization, that is diabetic test strips.
The charge arose from an investigation by the Federal Bureau of Investigation. The defendant was indicted in March, 2016.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Melody Nelson represented the United States.
Portland Woman Sentenced for Theft of Government BenefitsRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that United States District Judge D. Brock Hornby sentenced Tammy J. Mc Kenney, 50, of Portland, Maine to 2 years of probation and $26,646.60 worth of restitution for Theft of Public Money.
According to court documents, VA dependency and indemnity compensation is a monthly benefit paid to eligible survivors of military service members or veterans who died as a result of a service-related injury. A friend of Mc Kenney was the recipient of VA survivor benefits and those benefits were being paid into an account which Mc Kenney held jointly with her friend. When the friend died in 2012, the benefit payments continued to be paid into the joint account. Mc Kenney regularly accessed the account and spent the benefit money until the VA learned of the friend’s death. In all, McKenney received more than $26,000 worth of benefits to which she was not entitled.
The investigation of the case was conducted by the Department of Veteran’s Affairs Office of Inspector General.
Parsonsfield Woman Sentenced for Misappropriation of Postal FundsRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that United States District Court Judge D. Brock Hornby sentenced Carol L. Carter, 58, of Parsonsfield, Maine to 2 years’ probation and $2,713.08 worth of restitution for Misappropriation of Postal funds.
According to court documents, between April and September of 2014, while working as a postmaster relief in the East Parsonsfield Post Office, Carol L. Carter stole $2,713.08 worth of postal funds by selling money orders, pocketing the cash, and either not reporting the sale of the money orders until she could cover the shortfall with a subsequent sale or not reporting the sale at all.
When interviewed, Carter admitted selling the money orders without reporting their sale and using the money to pay personal expenses.
The case was investigated by the United States Postal Service Office of Inspector General.
Palmer Couple Indicted for Maintaining Drug Residence Where Teenager Overdosed, Related Drug and Gun CrimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an indictment has been returned charging a Palmer couple with multiple drug and gun felonies, including one count of maintaining a drug house where a teenager overdosed and died earlier this year.
Tod James Rodolph, 40, and Jessica Elizabeth Hopkins, 35, are both named in the five-count indictment. The first count charges the couple with conspiring with each other and others to distribute both heroin and methamphetamine. They are also charged with using their Palmer home to both use and distribute drugs. Finally, the couple is charged with possessing several firearms in furtherance of their drug crimes.
The indictment separately charges Rodolph with possessing both heroin and methamphetamine with the intent to distribute it and with being a convicted felon in possession of four firearms. It is alleged that, over the course of 2015 and early 2016, Rodolph traveled from Alaska to the area of Seattle, Washington, approximately 20 times to purchase large quantities of heroin and methamphetamine. He then traveled back to Alaska where he sold the drugs for profit.
The indictment stems from an investigation launched by the Drug Enforcement Administration (DEA) and the Alaska State Troopers (AST) into the death of A.F., a teenager who attended a party at Rodolph and Hopkins’ residence, consumed drugs, and later died. According to the indictment, Rodolph and Hopkins’ drug trafficking activities created an environment in which their teenage daughter and her friends were able to consume illegal drugs at their Palmer residence. The indictment goes on to allege that, in the early morning hours of January 10, 2016, A.F. consumed drugs at the house and began having a negative reaction. When Rodolph learned of the teenager’s condition, he failed to call 911 and instead instructed another teenager to drive A.F. to the hospital. A.F. later died of what the medical examiner determined to be the acute toxic effects of methamphetamine.
Assistant U.S. Attorney Stephanie C. Courter, who presented the case to the grand jury, indicated that both Rodolph and Hopkins face a mandatory minimum penalty of 5 years up to 40 years in prison for their involvement in a drug conspiracy, plus an additional five years on the gun charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendants.
The charges against Rodolph and Hopkins are the latest in the ongoing efforts of federal and state law enforcement to combat the increasing prevalence of heroin and methamphetamine in our community. The DEA and the AST, as well as the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) all contributed to the investigation leading to the indictment in this case.
Rodolph and Hopkins will be arraigned in federal court in the coming days. An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Oregon Man Pleads Guilty to Threatening Vietnamese Neighbors and Interfering with their Housing RightsRead the Press Release
John Blayne Vangastel, 37, of Klamath Falls, Oregon, pleaded guilty today in the District of Oregon to one count of using threats of force to injure, intimidate and interfere with his neighbors in the enjoyment of their housing rights because they are a family of Vietnamese descent.
According to court documents, on the evening of Dec. 30, 2015, Vangastel, who had been living next door to a family of Vietnamese descent for approximately three months, entered the family’s property without permission. Vangastel admitted that he then forcibly blocked their front commercial gate so that family members could not park their vehicles on their property after returning from work. When one of the family members told Vangastel to let go of the gate and get off of the family’s property, Vangastel told the family member to “push [him] off the property.” He then raised his hand and balled up his fist as though he was going to assault one of the female family members. Vangastel further admitted that he then repeatedly tried to instigate a fight with the rest of the family, threatening to hit them and making comments like, “You are trash;” “You are not even white;” and “You smell like salmon-fish.” He also told the family something to the effect of, “I’ll beat you because you are Asian,” and “You [expletive] Vietnamese – you don’t deserve to live here.”
The incident was the culmination of Vangastel’s repeated intimidation of his neighbors, who had lived at their residence for 20 years without incident. As a result of Vangastel’s conduct, the family became so fearful that they moved out of their home.
“Our country guarantees all people the right to live in their homes without fearing violence or intimidation because of their national origin,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Threatening force against people because of where they or their relatives come from violates our civil rights laws and offends our values of human dignity, decency and respect. As this conviction shows, the Department of Justice will continue to aggressively and effectively prosecute hate crimes.”
“This case exemplifies the powerfully negative impact of bigotry and xenophobia,” said U.S. Attorney Bill J. Williams of the District of Oregon. “It is the moral obligation of every citizen to promote tolerance and diversity in our communities so that no one is subjected to intimidation or assault because of their heritage. The U.S. Attorney’s Office, with our partners at the Civil Rights Division, are dedicated to protecting the civil rights of all Oregonians. We will vigorously investigate and prosecute hate crimes to obtain justice for victims of unlawful discrimination.”
A sentencing hearing has not yet been set.
This case is being investigated by the FBI Portland Division’s Medford Resident Agency in cooperation with the Oregon State Police and the Klamath County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney William E. Fitzgerald of the District of Oregon and Trial Attorney Fara Gold of the Civil Rights Division’s Criminal Section.
Oregon Man Pleads Guilty to Threatening Vietnamese Neighbors and Interfering with Their Housing RightsRead the Press Release
WASHINGTON – John Blayne Vangastel, 37, of Klamath Falls, Oregon, pleaded guilty today in the District Court of Oregon to one count of using threats of force to injure, intimidate and interfere with his neighbors in the enjoyment of their housing rights because they are a family of Vietnamese descent.
According to court documents, on the evening of Dec. 30, 2015, Vangastel, who had been living next door to a family of Vietnamese descent for approximately three months, entered the family’s property without permission. Vangastel admitted that he then forcibly blocked their front commercial gate so that family members could not park their vehicles on their property after returning from work. When one of the family members told Vangastel to let go of the gate and get off of the family’s property, Vangastel told the family member to “push [him] off the property.” He then raised his hand and balled up his fist as though he was going to assault one of the female family members. Vangastel further admitted that he then repeatedly tried to instigate a fight with the rest of the family, threatening to hit them and making comments like, “You are trash;” “You are not even white;” and “You smell like salmon-fish.” He also told the family something to the effect of, “I’ll beat you because you are Asian,” and “You [expletive] Vietnamese – you don’t deserve to live here.”
The incident was the culmination of Vangastel’s repeated intimidation of his neighbors, who had lived at their residence for 20 years without incident. As a result of Vangastel’s conduct, the family became so fearful that they moved out of their home.
“This case exemplifies the powerfully negative impact of bigotry and xenophobia,” said Oregon’s U.S. Attorney, Billy J. Williams. “It is the moral obligation of every citizen to promote tolerance and diversity in our communities so that no one is subjected to intimidation or assault because of their heritage. The U.S. Attorney’s Office, with our partners at the Civil Rights Division, are dedicated to protecting the civil rights of all Oregonians. We will vigorously investigate and prosecute hate crimes to obtain justice for victims of unlawful discrimination.”
“Our country guarantees all people the right to live in their homes without fearing violence or intimidation because of their national origin,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Threatening force against people because of where they or their relatives come from violates our civil rights laws and offends our values of human dignity, decency and respect. As this conviction shows, the Department of Justice will continue to aggressively and effectively prosecute hate crimes.”
A sentencing hearing has not yet been set.
This case is being investigated by the FBI Portland Division’s Medford Resident Agency in cooperation with the Oregon State Police and the Klamath County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney William E. Fitzgerald of the District of Oregon and Trial Attorney Fara Gold of the Civil Rights Division’s Criminal Section.
Operator of Costa Mesa Boiler Room at Center of $11 Million Oil and Gas Investment Scam Sentenced to 10 Years in Federal PrisonRead the Press Release
SANTA ANA, California – A former Orange County resident who oversaw a company that claimed to be developing oil and gas wells and bilked investors by, among other things, falsely claiming they would see 50 percent annual returns has been sentenced to 10 years in federal prison.
Jerry L. Aubrey, 51, who at the time of the fraud lived in Santa Ana, was sentenced Monday for his in role in the scheme that caused investors in the Costa Mesa-based Progressive Energy Partners (PEP) to suffer over $9 million in losses.
United States District Judge James V. Selna imposed the decade-long sentence and ordered Jerry Aubrey to pay $9,408,184 in restitution to nearly 200 victims.
Jerry Aubrey was sentenced after pleading guilty in January to one count of mail fraud. As prosecutors noted in sentencing papers filed with the court, Jerry Aubrey orchestrated the PEP scheme from October 2005 until April 2010 – and after that he served a five-year prison term in Florida for another fraud scheme that he was involved in prior to PEP.
“This defendant orchestrated a classic investment fraud that promised extravagant returns while investors’ money was simply being used to line the pockets of the scammers,” said United States Attorney Eileen M. Decker. “This is a serial offender who was deserving of a lengthy sentence.”
PEP raised more than $11 million in five unregistered securities offerings for the purported purpose of developing and supporting oil and gas wells. According to court documents, most of the money went to pay the personal expenses of PEP principals, huge commissions to salespersons, and Ponzi-like payments to early investors. As part of the scheme, PEP salespersons used purchased “lead lists” to make cold calls to potential investors, who were told about the alleged profits they could earn from investing in PEP. The victims were not told that, in reality, less than 10 percent of their investments would be used to develop oil and gas wells, according to Jerry Aubrey’s plea agreement.
Along with Jerry Aubrey, two other people were named in a federal grand jury indictment returned in September 2013. They are:
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Jerry Aubrey’s brother, Timothy J. Aubrey, 56, of Moreno Valley, a manager and salesperson at PEP, who is scheduled to go on trial before Judge Selna on mail fraud and wire fraud charges on October 25; and
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Aaron M. Glasser, 33, a former Mission Viejo resident who now lives in San Jacinto, was a PEP salesman who pleaded guilty in February to one count of mail fraud and is scheduled to be sentenced by Judge Selna on December 19, at which time he will face a statutory maximum sentence of 20 years in federal prison.
In 2012, the Securities and Exchange Commission obtained permanent injunctions against the three defendants in a lawsuit filed in relation to the PEP investment scheme.
The criminal investigation was conducted by the FBI.
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Ohio Man Admits Being Cocaine Courier for Drug Trafficking OrganizationRead the Press Release
ERIE, Pa. – A former resident of Akron, Ohio, pleaded guilty in federal court to a charge of violating federal drug laws, United States Attorney David J. Hickton announced today.
Safa Gobah, 23, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from June 2013 through February 2015, Gobah engaged in a conspiracy with eighteen co-defendants to distribute and possess with intent to distribute cocaine. The Court was advised that Gobah’s specific role in the conspiracy was to assist in driving vehicles to the Houston, Texas area to pick up loads of cocaine and then to transport the cocaine to Erie, Pennsylvania and elsewhere, with the cocaine concealed in hidden compartments. According to information provided to the Court, on November 1, 2014, Gobah was driving one of the load vehicles with another co-conspirator as a passenger when they were stopped by the Arkansas State Police while traveling east near milepost 253 on Interstate 40. The Court was advised that Gobah and her co-conspirator had just traveled to the Houston, Texas area to pick up a load of cocaine destined for delivery to Erie, Pennsylvania and elsewhere. The Court was further advised that a search warrant was executed on the vehicle and that individually wrapped packages of cocaine were located in a hidden compartment in the vehicle. The packages were discovered to contain more than 5 kilograms of cocaine.
Judge Cercone scheduled sentencing for September 15, 2016 at 11:30 a.m. The law provides for a maximum total sentence of life in prison, a fine of $4,000,000, 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 Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Homeland Security Investigations, the Drug Enforcement Administration, the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service, and the Bureau of Alcohol Tobacco Firearms and Explosives, and the Arkansas State Police conducted the investigation that led to the prosecution of Gobah.
OC Pilot Indicted for Flying Planes Without FAA LicenseRead the Press Release
Update:
Today, a federal grand jury returned an indictment charging Arnold Gerald Leto III with two counts of piloting a plane without a license. Leto was charged for flying a Cessna Citation turbojet aircraft from Santa Monica, California, to Phoenix, Arizona, on or about January 30, 2015, and a Falcon 10 turbojet aircraft from Van Nuys Airport to Las Vegas, Nevada, on or about April 8, 2016.
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.
Each charge alleged in the indictment carries a statutory maximum penalty of three years federal prison.
Original Release:
Orange County Pilot Charged with Flying Private Jet
without Having Proper License Issued by FAA
LOS ANGELES – An Irvine man was arrested this morning on federal charges of illegally flying a twin-engine Falcon 10 turbojet airplane with passengers onboard without having a valid pilot’s license.
Arnold Gerald Leto III, 36, was charged in a criminal complaint filed yesterday in United States District court with operating an aircraft in air transportation without a valid airman’s certificate.
The affidavit in support of the criminal complaint alleges that Leto’s pilot’s license was revoked earlier this year, he operated the Falcon without having the required co-pilot, and he was never certified to fly this type of aircraft.
Leto is scheduled to be arraigned on the felony offense this afternoon in United States District Court.
Leto is charged will illegally flying the Falcon 10 from Van Nuys Airport to Las Vegas, Nevada, on April 8. Leto allegedly operated the aircraft with approximately eight passengers on board.
“Federal regulations governing the operation of aircraft and other common carriers are designed to protect the traveling public,” said United States Attorney Eileen M. Decker. “The investigation into Mr. Leto shows that he flagrantly violated these rules – and continued to do so after the FAA took action to take him out of the air. A swift and thorough investigation by the Department of Transportation has now improved the safety of all air travelers.”
According to the complaint, the aircraft that Leo piloted alone is a complex aircraft that requires two pilots to operate. Furthermore, Leto’s defendant’s pilot certificate – which he failed to surrender after it was revoked by the Federal Aviation Administration in January – did not have a turbojet-type rating that would authorize him to fly that airplane.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The charge alleged in the complaint carries a statutory maximum penalty of three years federal prison.
This case was investigated by the Department of Transportation – Office of Inspector General, with assistance by the Federal Aviation Administration.
Nineteen Defendants Charged with Marriage and Visa Immigration FraudRead the Press Release
Jackson, Miss – United States Attorney Gregory K. Davis and Special Agent in Charge Raymond R. Parmer Jr., of Immigration and Customs Enforcement (ICE) Homeland Security Investigations - New Orleans Field Office, announced today the unsealing of two federal indictments charging multiple defendants with U-Visa fraud and marriage fraud.
In the 16 count U-Visa Fraud indictment, it is alleged that Law Enforcement Certification forms purporting to certify that aliens were victims of certain crimes, were submitted to the U.S. Customs and Immigration Service (USCIS) along with the U-Visa applications. To be eligible for a U-Visa, the alien must have (1) been a victim of a certain crime; (2) suffered mental or physical abuse as a result of the crime; and (3) helped law enforcement officials in the investigation and/or prosecution of the crime. The Law Enforcement Certification forms contain the description of the crimes. In this case, the forms fraudulently listed individuals as victims of certain crimes in an effort to obtain U-Visas.
The Indictment alleges that Simpson Lloyd Goodman, a licensed attorney, submitted fraudulent documents to USCIS for the purpose of obtaining U-Visas for other co-defendants. The false documents submitted to USCIS included falsified police reports allegedly prepared by Officer Ivory Lee Harris of the Jackson Police Department. Other defendants engaged in and caused various acts which enabled defendants to attempt to obtain U-Visas from USCIS.
The following defendants have been charged in the U-Visa fraud indictment for their roles in a conspiracy to commit fraud and misuse of Visa permits:
Sachin Girishkumar Patel, 33, of Clinton, Mississippi;
Tarunkumar Purushottambhai Patel, 49, of Kingdom City, Missouri;
Simpson Lloyd Goodman, 29, of Waynesboro, Georgia;
Ivory Lee Harris, 45, of Jackson, Mississippi;
Sanjay Rathilal Patel, 35, of Lakewood, New Jersey;
Maheshkumar Mangaldas Patel, 50, of Houston, Texas;
Ashaben Mukeshbhai Patel, 38, of Covington, Louisiana;
Rajan Nareshkumar Patel, 31, currently incarcerated in Adams County, Mississippi;
Gopaldas Khodabhai Patel, 55, of Byram, Mississippi;
Sachin Khodidas Patel, 27, of Byram, Mississippi; and
Baldevbhai Ramabhai Patel, 34, of Baton Rouge, Louisiana.
In the 16 count marriage fraud indictment, it is alleged that the aliens would enter into marriages between persons who were already citizens of the United States solely for the purpose
of obtaining immigration status to which the aliens would not otherwise be entitled. These marriages were not entered into because of mutual love and affection between the parties, but solely to create a legal status that would provide a basis for immigration status for the alien partner and usually for some economic benefit to the United States citizen.
The following defendants have been charged in the marriage fraud indictment for their roles in a conspiracy to commit marriage fraud:
Sachin Girishkumar Patel, 33, of Clinton, Mississippi;
Tarunkumar Purushottambhai Patel, 49, of Kingdom City, Missouri;
Simpson Lloyd Goodman, 29, of Waynesboro, Georgia;
Chirag Nilesh Patel, 27, of St. Louis, Missouri;
Dana Cheetara Adams, 29, of Plano, Texas;
Brandy Nicole Edwards, 34, of Crystal Springs, Mississippi
Terilynn Rankin, 48, of Mendenhall, Mississippi
Sejal Sanjay Kakadia, 52, of Covington, Louisiana
Jayantibhai Kalidas Chaudhari, 47, of Covington, Louisiana
Virendra Rambachan Rajput, 45, of Lawrence, Massachusetts; and
Javona Shanice Rajput, 27, of Jackson, Mississippi
"The defendants allegedly circumvented the laws and submitted fraudulent documents that are critical to obtaining immigration status," said U.S. Attorney Gregory K. Davis. "These arrests were made as a result of the great work of our law enforcement partners who stopped 19 people who sought to undermine the integrity of our nation’s immigration system."
"Immigration fraud poses a significant threat to national security by allowing individuals to enter or remain in the United States under false pretenses with unknown intentions," said Raymond R. Parmer Jr., Special Agent in Charge of HSI New Orleans. "The alleged involvement of attorneys and law enforcement officers in this particular scheme is particularly troubling, and shows that HSI will investigate and hold accountable those who violate our nation’s laws regardless of their position in society." Parmer oversees a five-state area of operations to include Mississippi, Alabama, Arkansas, Louisiana and Tennessee.
The maximum penalties for the crimes charged in the indictments are: conspiracy to commit fraud and misuse of visa permits - 5 years in prison and $250,000 fine per count; fraud and misuse of Visa permits - 10 years in prison and a $250,000 fine per count; mail fraud - 20 years in prison and a $250,000 fine per count; and wire fraud – 20 years in prison and a $250,000 fine.
Arraignments on these indictments are scheduled for today, May 19, 2016, at 1:30 p.m. before U.S. Magistrate Judge Linda R. Anderson in Jackson.
This case was investigated by Homeland Security Investigations, the Mississippi Attorney General’s Office, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Jerry Rushing.
The public is reminded that an indictment is a formal charge that a defendant has committed a violation of the federal criminal laws. All defendants are presumed innocent unless and until proven guilty.
New Orleans Man and his Restaurant Sentenced for Employing Unauthorized Aliens and Making False StatementsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KE LIAN ZHAO, age 50, of Kenner, was sentenced today after previously pleading guilty to employing aliens at his restaurant, LA JUMBO CHINA BUFFET (“JUMBO BUFFET”). The restaurant, JUMBO BUFFET, was also sentenced for making false statements.
U.S. District Judge Jane Triche Milazzo sentenced ZHAO to one year of probation and a $100 special assessment. ZHAO was also ordered to pay $52,305.75 in restitution to the victims, which has been paid. JUMBO BUFFET was sentenced to one year of probation and a $400 special assessment.
According to court documents, ZHAO and JUMBO BUFFET had been employing aliens at the restaurant for almost four years. A federal investigation revealed that between August 2011 and March 2015, ZHAO recruited, hired, and continued to employ personnel he knew were unlawfully present in the United States. During this time frame, JUMBO BUFFET knowingly and willfully provided materially false, fictitious, or fraudulent statements or representations to agents of the United States Department of Homeland Security and the United States Department of Labor’s Wage and Hour Division. Furthermore, when investigators requested payroll information from JUMBO BUFFET, the company altered payroll documents to make it look as if it had complied with minimum wage and overtime pay requirements, when witness statements, surveillance, and other evidence showed that employees worked in excess of a 40 hour work week, without being paid overtime, or minimum wage.
U.S. Attorney Polite praised the work of the U.S. Department of Labor, Wage and Hour Division, the U.S. Department of Labor, Office of Inspector General, the U.S. Department of Homeland Security, and the Federal Bureau of Investigation, in investigating this matter. Assistant U.S. Attorney Sharan Lieberman was in charge of the prosecution.
Monroe man pleads guilty to methamphetamine possession chargeRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that a man from Monroe pleaded guilty to possessing methamphetamine for later sale.
Travis C. Mills, 34, of Monroe, pleaded guilty before U.S. Magistrate Judge Karen L. Hayes to one count of possession of methamphetamine with intent to distribute. The plea will become final when accepted by U.S. District Judge Robert G. James. According to the guilty plea, law enforcement agents arrested Mills on October 7, 2015, as he was leaving his home. They found 115 grams of methamphetamine in a brown paper bag in the front seat of his car. His home was also searched, and 84 grams of methamphetamine were found.
Mills faces five to 40 years in prison, at least four years of supervised release and a $5 million fine. A sentencing date of September 7, 2016 was set.
The DEA and Ouachita Parish Metro Narcotics Task Force conducted the investigation. Assistant U.S. Attorneys Jonathan S. Drucker and James G. Cowles Jr. are prosecuting the case.
Michigan Man Charged with Possessing CocaineRead the Press Release
PITTSBURGH - A Michigan resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal drug laws, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on May 17, named Carl McDaniel, age 52, of Helen, Michigan.
According to the indictment, on or about March 22, 2016, McDaniel possessed with intent to distribute a quantity of cocaine.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, 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 Ryan K. Hart is prosecuting this case on behalf of the government.
The Homeland Security Investigations (HSI) Immigration and Customs Enforcement (ICE) and the Pennsylvania State 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.
Mexican citizen sentenced to 30 months in prison for transporting cocaineRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that a Mexican citizen was sentenced to 30 months in prison for taking part in a conspiracy to transport and sell cocaine.
Omar Sanchez Ortuno, 23, of Puebla, Mexico, was sentenced by U.S. District Judge Patricia Minaldi on one count of conspiracy to distribute and possess with intent to distribute cocaine. He was also sentenced to four years of supervised release. According to the February 12, 2016 guilty plea, law enforcement agents monitored a deal and delivery involving Ortuno on April 29, 2014. Omar delivered 1.5 kilograms of cocaine from Houston to cocaine distributors in Lake Charles. The vehicles involved in the deal were stopped and the individuals involved were arrested, and authorities seized the vehicle, cocaine and $33,000 in cash. The agents had been investigating Ortuno and his co-conspirators prior to his arrest. The investigation revealed multiple deliveries of cocaine from Ortuno to his Louisiana contacts, who then redistributed the cocaine in smaller amounts in the Lake Charles community. Ortuno was identified by law enforcement as a delivery person or runner, and as a minor participant.
Homeland Security Investigations, Immigrations and Customs Enforcement, Louisiana State Police, and the Calcasieu Parish Anti-Drug Task Force conducted the investigation. Assistant U.S. Attorney Myers P. Namie prosecuted the case.
May Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 8 indictments charging 9 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Alvaro Hugo Carreto Diaz, age 31, of Omaha, is charged with illegal reentry into the United States on or about April 19, 2016, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Stephanie Lynn Cogle, age 29, of Gainsville, Georgia, is charged with possession with intent to distribute 500 grams of a mixture of methamphetamine on or about March 22, 2015. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Thomas J. Fischer, age 29, of Omaha, is charged in a three-count Indictment. Counts I and II of the Indictment charges the defendant with distribution of 50 grams of methamphetamine on or about November 24, 2015 and on or about December 7, 2015. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment for each count. Count III of the Indictment charges Fischer with distribution of a mixture of methamphetamine on or about January 7, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jaime Guerrero-Robledo, age 33, is charged with illegal reentry into the United States on or about May 2, 2016, following deportation after a felony conviction. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Marcos Gutierrez-Morales, age 42, is charged with illegal reentry into the United States on or about May 12, 2016, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Brandon Jackson, of Omaha, is charged with felon in possession of a firearm on or about January 22, 2016. The maximum possible penalty if convicted is $10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Scott Kornahrens, age 43, is charged with possession with intent to distribute a mixture of methamphetamine on or about March 14, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jose Luis Sandoval, a/k/a Gallo, age 46, and Martha Tapia, age 37, both of South Sioux City, Nebraska, are charged in a six-count Indictment. Count I of the Indictment charges the defendants with conspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture containing methamphetamine beginning on or about April 1, 2016, and continuing to on or about May 9, 2016. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Sandoval and Tapia with distribution of a mixture containing methamphetamine on or about April 7, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III of the Indictment charges Tapia with distribution of a mixture containing methamphetamine on or about April 12, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count IV of the Indictment charges the defendants with possession with intent to distribute a mixture containing methamphetamine on or about May 9, 2016. The maximum possible penalty if convicted is 20 years imprisonment, $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count V of the Indictment charges Sandoval with carrying a firearm during and in relation to a drug trafficking crime on or about May 9, 2016. The maximum possible penalty if convicted is no less than 5 years to no more than life to underlying count, a $250,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count VI of the Indictment charges Tapia with carrying a firearm during and in relation to a drug trafficking crime on or about May 9, 2016. The maximum possible penalty if convicted is no less than 5 years to no more than life to underlying count, a $250,000 fine, a 5 year term of supervised release, and a $100 special assessment.
Massachusetts Man Pleads Guilty in Texas-to-Pennsylvania Drug ConspiracyRead the Press Release
ERIE, Pa. – A former resident of Lawrence, Massachusetts, pleaded guilty in federal court to a charge of violating federal drug laws, United States Attorney David J. Hickton announced today.
Wilson Enrique-Reyes, 33, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from July 2014 through January 2015, Enrique-Reyes engaged in a conspiracy with two other individuals to distribute and possess with intent to distribute between 5 and 15 kilograms of cocaine. According to information provided to the Court, Enrique-Reyes worked with his associates to have kilograms of cocaine transported from Houston, Texas to Erie, Pennsylvania and elsewhere. Further, the Court was advised that prior to his arrest in February 2015, law enforcement officers discovered that Enrique-Reyes and his associate in Erie, Pennsylvania, were working to modify an Audi vehicle with a hidden compartment large enough to conceal 10 kilograms of cocaine. When Enrique-Reyes was arrested in Lawrence, Massachusetts in February, 2015, the Audi vehicle, equipped with the electronically controlled hidden compartment, was found and was seized.
Judge Cercone scheduled sentencing for September 15, 2016 at 1:00 p.m. The law provides for a maximum total sentence of life in prison, a fine of $4,000,000, 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 Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Homeland Security Investigations, the Drug Enforcement Administration, the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service, and the Bureau of Alcohol Tobacco Firearms and Explosives, conducted the investigation that led to the prosecution of Enrique-Reyes.
Marion, N.C. Man Sentenced to Prison for Passport FraudRead the Press Release
ASHEVILLE, N.C. – James Timothy Wilson, 66, of Marion, N.C. was sentenced today to 45 months in prison on passport fraud and aggravated identity theft charges, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Wilson was also ordered to serve two years under court supervision after he is released from prison.
Thomas Haycraft, Special Agent in Charge of the Washington Field Office, U.S. Department of State, Diplomatic Security Service and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI) join U.S. Attorney Rose in making today’s announcement.
According to filed plea documents and today’s sentencing hearing, in June 2009, Wilson stole the identities of two individuals who were employed by Henderson-based Quality Rubber Manufacturing Company Inc. (QRMC), a company previously owned by Wilson. Using the stolen information, Wilson obtained North Carolina Driver’s Licenses and birth certificates in each of the victim’s name, which he then used as proof of identity to apply for and fraudulently obtain U.S. passports. According to court records, Wilson used the fraudulent passports to fly internationally, including to Colombia and Mexico.
According to court records, Wilson accessed and used without permission a third individual’s passport to fly internationally. The victim, who also worked at QRMC, discovered his passport was missing after he had left it on his desk at work. Later, the victim discovered his passport had been returned, and noticed the pages were stamped, indicating international travel. Wilson had used that victim’s passport to fly to Colombia and to Costa Rica.
In announcing today’s sentence, U.S. District Judge Martin Reidinger said that Wilson engaged “in a pattern of dishonesty,” and ordered Wilson to pay $3,000 fine in addition to the prison term imposed.
Wilson pleaded guilty in February 2016 to three counts of making a false statement on an application and two counts of aggravated identity theft.
The investigation was handled by the U.S. Department of State’s Diplomatic Security Service and IRS-CI.
Assistant U.S. Attorney Don Gast, of the U.S. Attorney’s Office in Asheville, is prosecuting the case.
Mansfield woman indicted for stealing $339,000 from her employerRead the Press Release
A grand jury returned an indictment charging Yatkia Wallace, 42, of Mansfield, with one count of embezzlement in connection with health care, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.
The indictment alleges that Wallace embezzled $339,198 from her former employer, D & I Associates and converted it for her own personal use.
If convicted, the defendant’s sentence will be determined by the dourt after review of 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 sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Carmen E. Henderson following an investigation by the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Man Who Set Fire to Somali Restaurant in Grand Forks, North Dakota, Pleads Guilty to Hate CrimeRead the Press Release
FARGO – On May 19, 2016, Matthew Gust, 25, pleaded guilty today to a federal hate crime for setting fire to a Somali restaurant in Grand Forks, North Dakota, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Christopher C. Myers of the District of North Dakota.
According to his plea agreement, Gust admitted that he set the Dec. 8, 2015, fire in order to intimidate and interfere with the Somali employees and patrons of the Juba Café. Early that morning, he drove to a gas station and purchased a small amount of gasoline, which he used to fill a 40 oz. beer bottle, turning it into a Molotov cocktail. Gust then drove to the café, donned a face mask, punched a hole through the front window of the café, lit the Molotov cocktail, threw it through the window and fled. The Molotov cocktail exploded on impact, creating an explosion and fire that engulfed Juba Café and caused at least $90,000 worth of damages.
Gust pleaded guilty to an arson charge as well as to the hate-crime charge. He was by charged by information with those two counts on March 20, 2016. He had earlier been indicted
by a grand jury for using a destructive device in the commission of a crime; that charge will be dismissed as part of his plea agreement.
"We will not tolerate violence that attempts to divide us by targeting individuals based on their national origin," said Principal Deputy Assistant Attorney General Gupta. "The Civil Rights Division will continue to bring to justice those who attempt to intimidate and drive out members of our community."
"This case exemplifies the strong partnership between local, state, and federal authorities working together to ensure the rights of all members of our community are protected from criminal conduct motivated by hate," said U.S. Attorney Myers. "In such circumstances, the response from all levels of law enforcement in North Dakota will be swift and certain."
"Investigating these types of attacks will always remain a priority for the FBI," said Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Division. "Attacks such as these have no place in our society and those who would commit them should know that they will be aggressively pursued by the FBI."
"There is no place for hate in our communities, and these targeted acts of violence won’t be tolerated," said Special Agent in Charge Jim Modzelewski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) St. Paul, Minnesota, Field Division. "ATF will continue to diligently investigate these crimes, to ensure that all of our residents feel safe and welcomed."
Gust is scheduled to be sentenced on Aug. 29, 2016. The hate-crime charge carries a maximum sentence of 20 years in prison, while the arson charge carries a maximum sentence of 10 years in prison.
This case was investigated by Grand Forks Police Department, the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Megan A. Healy of the District of North Dakota and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Man Who Set Fire to Somali Restaurant in Grand Forks, North Dakota, Pleads Guilty to Hate CrimeRead the Press Release
Matthew Gust, 25, pleaded guilty today to a federal hate crime for setting fire to a Somali restaurant in Grand Forks, North Dakota, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Christopher C. Myers of the District of North Dakota.
According to his plea agreement, Gust admitted that he set the Dec. 8, 2015, fire in order to intimidate and interfere with the Somali employees and patrons of the Juba Café. Early that morning, he drove to a gas station and purchased a small amount of gasoline, which he used to fill a 40 oz. beer bottle, turning it into a Molotov cocktail. Gust then drove to the café, donned a face mask, punched a hole through the front window of the café, lit the Molotov cocktail, threw it through the window and fled. The Molotov cocktail exploded on impact, creating an explosion and fire that engulfed Juba Café and caused at least $90,000 worth of damages.
Gust pleaded guilty to an arson charge as well as to the hate-crime charge. He was by charged by information with those two counts on March 20, 2016. He had earlier been indicted by a grand jury for using a destructive device in the commission of a crime; that charge will be dismissed as part of his plea agreement.
“We will not tolerate violence that attempts to divide us by targeting individuals based on their national origin,” said Principal Deputy Assistant Attorney General Gupta. “The Civil Rights Division will continue to bring to justice those who attempt to intimidate and drive out members of our community.”
“This case exemplifies the strong partnership between local, state, and federal authorities working together to ensure the rights of all members of our community are protected from criminal conduct motivated by hate,” said U.S. Attorney Myers. “In such circumstances, the response from all levels of law enforcement in North Dakota will be swift and certain.”
“Investigating these types of attacks will always remain a priority for the FBI,” said Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Division. “Attacks such as these have no place in our society and those who would commit them should know that they will be aggressively pursued by the FBI.”
“There is no place for hate in our communities, and these targeted acts of violence won’t be tolerated,” said Special Agent in Charge Jim Modzelewski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) St. Paul, Minnesota, Field Division. “ATF will continue to diligently investigate these crimes, to ensure that all of our residents feel safe and welcomed.”
Gust is scheduled to be sentenced on Aug. 29, 2016. The hate-crime charge carries a maximum sentence of 20 years in prison, while the arson charge carries a maximum sentence of 10 years in prison.
This case was investigated by Grand Forks Police Department, the FBI and ATF. The case is being prosecuted by Assistant U.S. Attorney Megan A. Healy of the District of North Dakota and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Gust Plea Agreement
Man Who Attempted to Flush Heroin Down Cedar Rapids Police Department Toilet Pleads GuiltyRead the Press Release
A man who tried to discard his heroin in a toilet at the Cedar Rapids Police Department pled guilty today in federal court in Cedar Rapids.
Julius Montgomery, Jr., age 48, from Chicago, IL, was convicted of possession with intent to distribute heroin.
In a plea agreement, Montgomery admitted that the DEA conducted a controlled buy of heroin from a Toyota Echo in which Montgomery was a passenger on November 10, 2015. The Echo was subsequently stopped and searched for drugs. An officer at the scene noticed Montgomery was standing with his buttocks clenched tightly, but defendant denied he was concealing anything. Montgomery was transported to the CRPD for questioning, and later asked to use a bathroom. Investigators offered a bathroom for defendant to use, but the bathroom offered to defendant was equipped with a toilet designed for prisoners. The toilet cannot be flushed by the prisoner inside the room, and can only be flushed from an exterior location. Prior to Montgomery using the bathroom, investigators searched the toilet and noted it was empty. After Montgomery finished in the bathroom, investigators entered and found a bag in the toilet water. The bag contained 23 individual packages of heroin, totaling 2.1 grams. Montgomery also admitted in the plea agreement to selling heroin to confidential informants twice in 2014.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Montgomery remains in custody of the United States Marshal pending sentencing. Montgomery faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and a lifetime of supervised release following any imprisonment.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Cedar Rapids Police Department and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-12-LRR.
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Lexington Man Convicted of Distributing Drugs Resulting in DeathRead the Press Release
LEXINGTON — A Lexington man faces a minimum of 20 years in prison after he was convicted by a federal jury of distributing heroin and fentanyl which resulted in the death of an individual.
On Tuesday evening, the jury convicted 43 year-old Christopher Allen for distribution of heroin and fentanyl resulting in death, conspiracy to distribute heroin and fentanyl, and possession with intent to distribute heroin and fentanyl. The jury returned the verdict after approximately two hours of deliberation following two days of trial.
“Trafficking in deadly drugs such as heroin and fentanyl has increased dramatically in Lexington and surrounding communities over the last few years,” said Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky. “The results have been deadly. Fayette County documented 29 overdose deaths in 2008. By 2015, that number had risen to 137. The victims grow younger every year and these tragedies reach every area of our community. This is a crisis that requires us to use every available tool to fight back. One such tool is the federal law that imposes a prison sentence of 20 years to life, with no parole, on those who illegally distribute drugs that cause death or serious injury. Those involved in drug trafficking should know that we are using this tool with increasing frequency, working closely with our law enforcement partners.”
According to testimony, in September of 2015, Allen distributed heroin and fentanyl to a Lexington woman who used the drugs, overdosed and died. The woman was found by her boyfriend in her home.
Authorities were able to verify that Allen supplied the drugs to the victim. A toxicologist testified that the woman died as a result of the toxic effects of the heroin and fentanyl. The toxicologist further testified that the victim ingested a lethal dose of fentanyl, three times the normal therapeutic range.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Timothy J. Plancon, Special Agent in Charge of the Detroit Division of the Drug Enforcement Administration; and Mark Barnard, Chief of Lexington Police, jointly made the announcement today.
The investigation was conducted by the Lexington Police and DEA. Assistant U.S. Attorneys Todd Bradbury and Cindy Rieker, prosecuted this case on behalf of the federal government.
Allen is scheduled to be sentenced on August 22. He faces a minimum of 20 years in prison and a maximum of life. However, the Court will impose sentence after considering the U.S. Sentencing Guidelines and the federal statutes.
Lehigh County Woman Charged with Theft of Government FundsRead the Press Release
PHILADELPHIA - Dorothea Terfinko, 56, of Laury’s Station, Pennsylvania, was charged by Information, filed yesterday, with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant improperly received Social Security disability payments after she concealed her marriage in her application for benefits. The defendant’s alleged actions resulted in a loss to the government of approximately $48,435.13.
If convicted, the defendant faces a term of imprisonment, a three‑year period of supervised release, restitution to the government of $48,435.13, a possible fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.