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16 May 2016
Two Former L.A. Sheriff’s Deputies Found Guilty of Violating Civil Rights of Jail Inmate who was Beaten as PunishmentRead the Press Release
LOS ANGELES – Two former deputies with the Los Angeles Sheriff’s Department were found guilty today of violating the civil rights of a mentally ill jail inmate by beating, kicking and pepper spraying the victim after he showed disrespect to a jail employee.
Bryan Brunsting, 31, and Jason Branum (also known as Jason Johnson), 35, were each found guilty of three felony counts related to the unprovoked attack on March 22, 2010.
The evidence presented during a one-week trial in United States District Court showed that Brunsting and Branum assaulted the victim, who was an inmate at the Twin Towers Correctional Facility in downtown Los Angeles. The assault occurred after the inmate mouthed-off to a civilian Sheriff’s Department employee. Brunsting, who was a training officer assigned to a rookie deputy who had just started working at the jail, told his trainee that they were going to “teach [the inmate] him a lesson.”
Brunsting, Branum and the rookie deputy brought the victim out of the visiting area and directed him to a locked hallway without any surveillance cameras. Once in the hallway, the inmate realized he was going to be assaulted and began to run. The victim was tackled. Brunsting and Branum then beat the victim with fists, kicked him in the genitals and sprayed him in the eyes with pepper spray. Once other deputies arrived, they instructed the rookie deputy to handcuff the victim before he was led away for medical treatment.
After the beating, Brunsting, Branum and the rookie deputy met to coordinate and falsify their stories. The rookie deputy testified that he was told what to say and how to write his report. As prosecutors argued at trial, the reports submitted by Brunsting and the rookie were strikingly similar, and were written to justify the use of force by falsely claiming that the victim had attempted to punch the rookie.
“The civil rights in the Constitution are guaranteed to everyone in the United States, even those who are being held in jail,” said United States Attorney Eileen M. Decker. “A violation of any civil right is a crime against the United States and affects the nation’s entire citizenry, which is why we will tirelessly work to prosecute civil rights violations, especially when they are committed by people who have sworn to uphold the Constitution.”
After approximately one hour of deliberations, the jury convicted Brunsting and Branum of conspiracy to violate civil rights, deprivation of civil rights with bodily injury, and falsification of records for preparing reports that tried to justify their use of force against the victim.United States District Judge George W. Wu is scheduled to sentence the two defendants on August 22, at which time they each will face a statutory maximum penalty of 40 years in federal prison.
Brunsting still faces civil rights charges in relation to another alleged use-of-force incident on August 20, 2009 at Twin Towers, and he is scheduled to go on trial later this year. It is important to note that Brunsting is only charged in relation to the 2009 incident and is considered to be innocent of these charges until he is proven guilty in court.
The case against Brunsting and Branum is the result of an investigation by the FBI, and is one in a series of cases resulting from an investigation into corruption and civil rights abuses at county jail facilities in downtown Los Angeles. As a result of today’s guilty verdicts, 21 current or former members of the Los Angeles Sheriff’s Department have now been convicted of federal charges.
Two Columbia Men, Arizona Man Sentenced for Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three men were sentenced in federal court today for their roles in a conspiracy to distribute methamphetamine after law enforcement officers seized several pounds of methamphetamine from a Columbia, Mo., hotel room.
Todd Michael Zazilenski, 40, of Phoenix, Ariz., was sentenced by U.S. District Judge Stephen R. Bough to 10 years in federal prison without parole. Ryan Roger Ellingboe, 41, of Columbia, was sentenced to six years and eight months in federal prison without parole. Shane Alan Callahan, 30, of Columbia, was sentenced to five years in federal prison without parole.
Zazilenski, Ellingboe and Callahan each pleaded guilty to participating in a conspiracy to distribute methamphetamine in Boone County and elsewhere from April 2015 to May 14, 2015.
A deputy with the St. Charles County, Mo., Sheriff’s Department stopped a Cadillac Escalade driven by Ellingboe for a traffic violation on May 14, 2015. Callahan was a passenger in the vehicle. The deputy smelled burnt marijuana upon approaching the vehicle and conducted a search of the vehicle. The deputy found a vacuum-sealed bag that contained approximately one pound of methamphetamine behind the glove box.
Ellingboe and Callahan told law enforcement officers they had traveled from Columbia that morning to meet a customer in St. Charles, Mo., who wanted to purchase the methamphetamine. Callahan stated that he was brokering the methamphetamine transaction between Ellingboe and another individual. Ellingboe had access to a pound of methamphetamine and had asked Callahan if he knew of a customer. Callahan located a customer in St. Charles who wanted to purchase one pound of methamphetamine.
When Ellingboe picked up Callahan in Columbia that morning, he was already in possession of the one pound of methamphetamine. Ellingboe and Callahan then began driving to St. Charles to complete the transaction.
Zazilenski admitted that he provided the methamphetamine to Ellingboe to sell in St. Charles. Ellingboe was supposed to pay Zazilenski $8,000 for the methamphetamine. Law enforcement officers searched Zazilenski’s room at the Howard Johnson Inn in Columbia and found three bags, each containing approximately one pound of methamphetamine, for a total weight of 1.369 kilograms.
Zazilenski also admitted that he provided an additional 1.5 pounds of methamphetamine to Ellingboe during a visit to Columbia on April 17-19, 2015.
This case was prosecuted by Assistant U.S. Attorney Larry Miller. It was investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department, the St. Charles, Mo., Police Department and the St. Charles County, Mo., Sheriff’s Department.
Two Additional Members of Drug Conspiracy Plead GuiltyRead the Press Release
ABINGDON, VIRGINIA – Two more members of a drug conspiracy that trafficked methamphetamine into Southwest Virginia pled guilty today in the United States District Court for the Western District of Virginia, United States Attorney John P. Fishwick Jr. announced.
Ralph Marlow, 59, of La Follatte, Tennessee, pled guilty today in District Court to one count of conspiracy to possess with the intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime and using and carrying a firearm during and in relation to a drug trafficking crime.
Lloyd Steven Knuckles, 42, of Middlesborough, Kentucky, pled guilty today to one count of conspiracy to possess with the intent to distribute methamphetamine.
“These defendants, and others involved in this conspiracy, were involved in the trafficking of crystal methamphetamine, a very addictive and dangerous form of an already dangerous substance,” United States Attorney John P. Fishwick Jr. said today. “The success of this investigation can be credited to the cooperative work displayed by authorities on the local, state and federal level.”
The investigation of the case was conducted by the Bell County, Kentucky Sheriff’s Office, the Middlesborough, Kentucky Police Department, the Lee County Virginia Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives Bristol and Atlanta Field Divisions. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Trenton Man Sentenced to 37 Months in Prison for Possession of More Than 100 Grams of Heroin with Intent to DistributeRead the Press Release
TRENTON, N.J. – A Trenton man who was found in possession of 143 grams of heroin and a loaded firearm was sentenced today to 37 months in prison for narcotics possession, U.S. Attorney Paul J. Fishman announced.
Dorian Brown, 37, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with possession with intent to distribute heroin. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On June 4, 2014, Brown, who had been the target of an investigation led by detectives from the Mercer County Prosecutor’s Office, Special Investigations Unit, and officers from the Trenton Police Department, in cooperation with the U.S. Drug Enforcement Administration (DEA), was apprehended during the execution of search warrants on his car, as well as his Trenton home. Law enforcement seized approximately 130 grams of heroin from Brown’s home, where detectives also discovered a loaded semi-automatic handgun. An additional 13 grams of heroin was seized from Brown’s car.
In addition to the prison term, Judge Wolfson sentenced Brown to three years of supervised release.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, and detectives of the Mercer County Prosecutor’s Office, Special Investigations Unit, under the direction of Acting Prosecutor Angelo J. Onofri, with the investigation leading to today’s sentencing. He also thanked officers of the Trenton Police Department under the direction of Police Director Ernest Parrey for their assistance.
The government is represented by Assistant U.S. Attorney Molly Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Brian P. Reilly Esq., Assistant Federal Public Defender, TrentonTexas man sentenced for using stolen identities to collect fraudulent tax refunds in excess of $500,000Read the Press Release
MARTINSBURG, WEST VIRGINIA – Oluwabunmi Idris Odu-Onikosi, 29, of Dallas, Texas, was sentenced today to 18 months in prison for using stolen identities to obtain fraudulent federal income tax refunds, United States Attorney William J. Ihlenfeld, II, announced.
Odu-Onikosi repeatedly and fraudulently obtained personal identifying information from a variety of individuals, including names, dates of birth, and Social Security numbers. He utilized that information to create and prepare fraudulent income tax returns and false earnings statements containing fictitious wage, withholding, gambling winnings, and other fabricated information.
Odu-Onikosi filed more than 400 false federal individual income tax returns with the Internal Revenue Service. These returns fraudulently claimed tax refunds in excess of $3,000,000. Odu-Onikosi received fraudulent tax refund payments in excess of $500,000 in the form of United States Treasury Checks and direct deposits to bank accounts and prepaid debit cards maintained and controlled by Odu-Onikosi.
“Today’s legal proceedings bring Mr. Oluwabunmi Odu-Onikosi to justice,” noted Thomas M. Jankowski, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Washington, D.C. Field Office. “Mr. Odu-Onikosi violated the privacy of people, used this to cheat our tax system and pocket ill-gotten gains. This ID theft prosecution of Mr. Odu-Onikosi in West Virginia marks a milestone in the prosecution as the fraudulent tax returns he filed electronically were received by the IRS Enterprise Computing Center located in Martinsburg. This is a very serious crime throughout our nation; those committing crimes such as this should take notice that you will receive a harsh sentence when you are convicted of this crime in the Northern District of West Virginia. My office will continue to work with the United States Attorney’s Office to see that these offenses are investigated and prosecuted to assure compliance with our nation’s tax laws.”
Odu-Onikosi pled guilty in January 2016 to one count of “Wire Fraud.” As part of the sentenced imposed today, he was also ordered to pay restitution in the amount of $539,899.
Assistant U.S. Attorney Andrew Cogar prosecuted the case on behalf of the government. The Internal Revenue Service – Criminal Investigation led the inquiry with assistance from the New Orleans, Louisiana Police Department and the United States Secret Service.
Chief U.S. District Judge Gina M. Groh presided.
Syracuse Man Indicted for Two Bank RobberiesRead the Press Release
SYRACUSE, NEW YORK – James Chisholm, 26, of Syracuse, New York was indicted on two counts of bank robbery, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
The indictment alleges that on March 12, 2016 and again on March 16, 2016, Chisholm robbed the Chase Bank branch office at 801 James Street in Syracuse, stealing a total of over $3,000 in the two robberies. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Each charge against Chisholm carries a maximum sentence of 20 years in prison, a fine of up to $250,000 and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Chisholm was arrested on March 16, 2016 and is being held without bail pending trial.
This case is being investigated by the Syracuse Resident Agency of the Albany Division of the Federal Bureau of Investigation and the Syracuse Police Department and is being prosecuted by Assistant U.S. Attorney Robert S. Levine.
Store Owner Sentenced to Federal Prison for Food Stamp FraudRead the Press Release
ATLANTA - Sholondrell Denise Taylor has been sentenced to federal prison for the theft of $1.9 million in a food stamp fraud scheme. Her Atlanta stores allowed customers to exchange their food stamps for cash, and purchased Women, Infants, and Children (WIC) vouchers at less than face value, eventually redeeming them with the United States Department of Agriculture (USDA) at full price.
“Taylor cost taxpayers hundreds of thousands of dollars and diverted scarce resources intended to assist those most in need,” said U.S. Attorney John Horn. “Store owners who provide an outlet for people to commit fraud, while taking profits for themselves, should expect to be caught and prosecuted.”
“The prosecution of this individual should send a strong message to those individuals who defraud governmental programs that the USDA-OIG will continue to aggressively investigate individuals and businesses that take advantage of our SNAP and WIC programs. Sholondrell Taylor used her businesses for fraudulent purposes and profited immensely in doing so. The victims of these types of crimes are the children that were deprived of the food benefits that they were entitled to. We would like to thank the U.S. Attorney’s Office, the Georgia Department of Public Health and the Georgia Department of Human Services, Office of Inspector General, for assisting us with this investigation” says Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG.
According to U.S. Attorney Horn, the charges and other information presented in court: From January 2008 through March 2011, Taylor operated Dandes Food Center, LLC, in Forest Park, Georgia, and Shop Rite Food Mart, LLC, located in Atlanta, Georgia, where she unlawfully allowed customers to exchange their food stamp benefits for cash at the rate of 50 cents on the dollar. Taylor also purchased WIC vouchers from benefit recipients at less than their actual value and redeemed the vouchers for full value with the USDA.
Taylor set the rates of redemption, and instructed her employees to keep detailed ledgers of all transactions to ensure that they were not stealing from her. She trained her employees how to determine the available balances on food stamp cards; and required employees to obtain WIC voucher codes and usable voucher dates before purchasing the vouchers. Many of the customers who sold their WIC vouchers and food stamp benefits never visited Dandes or Shop Rite. Taylor employed a driver who travelled throughout metropolitan Atlanta to retrieve WIC vouchers and food stamp cards and dispense illegal payments.
This case came to the attention of federal authorities as a result of an investigation involving Georgia Department of Human Services employees. In 2011, Gene Tell and Kristy Williams were charged with conspiracy and mail fraud for their roles in the fraudulent creation and distribution of thousands of food stamp cards. Many of the fraudulent cards were illegally redeemed at Dandes Food Center operated by Taylor.
Sholondrell Denise Taylor, 47, of Ellenwood, Georgia, has been sentenced to four years, six months in prison to be followed by three years of supervised release, ordered to pay restitution in the amount of $1.9 million, and a $100 Special Assessment. Taylor was convicted on these charges on February 29, 2016, after she pleaded guilty.
This case was investigated by the U.S. Department of Agriculture, Office of Inspector General.
Assistant United States Attorney Loranzo M. Fleming prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Son of the Former President of Honduras Pleads Guilty in Manhattan Federal Court to Conspiring to Import Cocaine into the United StatesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that FABIO PORFIRIO LOBO pled guilty in Manhattan federal court to a charge that he conspired to import cocaine into the United States. LOBO, who was arrested in the Republic of Haiti on May 20, 2015, and arrived in the United States on May 21, 2015, pled guilty before U.S. District Judge Lorna G. Schofield. LOBO’s father, Porfirio Lobo, served as president of Honduras between 2010 and 2014.
Manhattan U.S. Attorney Preet Bharara said: “Fabio Lobo has now admitted in court that he conspired to import thousands of kilograms of cocaine into the United States. Whether you are a street-level dealer, a member of a cartel, or the son of a former foreign president, drug dealing is drug dealing. It is a serious federal crime for which you will be prosecuted.”
According to the Indictment, other court filings, and statements made during court proceedings:
In 2014, LOBO agreed to assist two purported Mexican drug traffickers, who were in fact confidential sources (the “CSes”) acting at the direction of the Drug Enforcement Administration (“DEA”), with the transportation of a multi-ton load of cocaine through Honduras so that the narcotics could be imported into the United States. In exchange, LOBO was to receive a financial interest in a portion of the cocaine that was intended to be sold and distributed in the United States. In furtherance of the conspiracy, LOBO introduced the CSes to, among others, Honduran police officials who agreed to participate in the cocaine transaction by providing security and logistical support for the transportation of the cocaine through Honduras. During 2015, in consensually recorded calls and emails between LOBO and one of the CSes, LOBO agreed to travel to Haiti for the purpose of receiving payment from the proceeds of the cocaine transaction. LOBO subsequently traveled to Haiti in May 2015 and was arrested.
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LOBO, 44, pled guilty to one count of conspiring to (i) import five or more kilograms of cocaine into the United States from a foreign country; and (ii) distribute five or more kilograms of cocaine knowing and intending that it would be imported into the United States. The charge carries a maximum term of life in prison, and a mandatory minimum term of 10 years in prison. The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
LOBO will be sentenced on September 15, 2016.
Mr. Bharara praised the outstanding efforts of the Special Operations Division of the DEA. Mr. Bharara also thanked the DEA’s Port-au-Prince Country Office, the Government of the Republic of Haiti and its Bureau de Lutte Contre le Trafic Illicite de Stupefiants, and the U.S. Department of Justice’s Office of International Affairs for their ongoing assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III, Matthew J. Laroche, and Michael D. Lockard are in charge of the prosecution.
Securities Attorney Convicted of Market Manipulation SchemeRead the Press Release
BOSTON – A California-based securities attorney was convicted today by a federal jury in U.S. District Court in Boston in connection with his role in manipulating the stock of a series of publicly traded companies, including CitySide Tickets, Inc., a Boston-based ticket reseller.
Richard Weed, 53, of Newport Beach, Calif., was convicted following a 10 day trial of conspiracy, securities fraud and wire fraud. Senior U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Aug. 16, 2016.
Weed, along with at least two others, conspired to create the appearance that CitySide was a growing company when, in fact, it was in dire financial straits. Weed, who served as CitySide’s Secretary and as one of two members of CitySide’s Board, was responsible for drafting false and misleading legal opinion letters so that his co-conspirators could obtain free trading stock. Weed also helped his co-conspirators to conceal their control and ownership of CitySide by directing the stock to be distributed to different entities that they controlled. This allowed the conspirators to manipulate CitySide’s stock and sell their shares at artificially high prices. In addition to assisting with the manipulation itself, Weed was also responsible for responding to any inquiries from investors or securities regulators.
The conviction follows a multi-year investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small publicly traded companies whose stock often trades at pennies per share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the Securities and Exchange Commission.
The charges of securities and wire fraud each provide for a sentence of no greater than 20 years in prison and three years of supervised release. The maximum fine for securities fraud is $5 million and the maximum fine for wire fraud is $250,000, or twice the gross loss to the victim. The conspiracy charge provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000, or twice the gross loss to the victim. 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.
The Securities and Exchange Commission, which conducted a parallel civil investigation, cooperated with criminal authorities in bringing this case.
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 is being prosecuted by Assistant U.S. Attorney Sarah E. Walters, Chief of Ortiz’s Economic Crimes Unit and SEC Attorney Eric A. Forni, who was appointed as a Special Assistant U.S. Attorney.
Sally Kirby Pleads Guilty to Hunger Free Vermont EmbezzlementRead the Press Release
The United States Attorney for the District of Vermont announced that Sally Kirby, 61, of Essex, pleaded guilty today in United States District Court in Burlington to a federal forgery charge. U.S. District Judge William K. Sessions III released Kirby on conditions pending sentencing, which is set for September 26.
On April 25, 2016, the United States Attorney's Office filed a one-count information charging Kirby with forging checks of her employer, Hunger Free Vermont. Kirby pled guilty to that charge today. According to the information, Hunger Free Vermont is a non-profit educational and advocacy organization which provides nutrition education and access to nutrition programs to Vermont's children, families and communities. In 2004, Sally Kirby was hired as the Director of Finance for HFV. Her duties included handling payroll, accounts payable, financial statements and grant allocations.
According to the information, between June 2009 and September 2015, Kirby embezzled about $165,000 from the organization. She did that primarily by issuing HFV checks to herself without authorization, then forging the signature of HFV's executive director on the checks. She deposited many of the checks into a personal credit union account she maintained. Kirby attempted to conceal her embezzlement by altering some entries in HFV's accounting system to make it appear as though checks she issued to herself had been made payable to vendors. The embezzlement was discovered last October.
Kirby faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the Federal Bureau of Investigation.
Kirby is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Plymouth Woman Pleads Guilty to Scamming Insurance Company for $2 Million Life Insurance PayoutRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of IRINA VOROTINOV, 49, to defrauding Mutual of Omaha Insurance Company of more than $2 million in life insurance proceeds by falsely claiming that her former husband died.
“The FBI and Criminal Investigation Division of the IRS determined that Igor Vorotinov’s death was faked,” said Assistant United States Attorney David J. Maclaughlin. “The hard work of the agents on this case illustrates the ability of the United States government to effectively investigate complex international crimes. Would-be fraudsters should be warned that it is very difficult to steal millions of dollars from United States insurance companies with impunity.”
According to the defendant’s guilty plea and documents filed in court, in March 2010, Igor Vorotinov purchased a life insurance policy on his own life from Mutual of Omaha, and listed IRINA VOROTINOV as the beneficiary. On October 1, 2011, police in Moldova received a phone call reporting a dead body at the entrance of the Cojusna village in central Moldova. Documents recovered from the body, including a passport, hotel cards, and contact phone numbers, identified the man as Igor Vorotinov.
According to the defendant’s guilty plea and documents filed in court, on November 7, 2011, IRINA VOROTINOV filed a death claim with Mutual of Omaha, despite the fact that she knew IGOR was not dead. Mutual of Omaha paid the claim to the defendant with a check for $2,048,414.09.
According to the defendant’s guilty plea and documents filed in court, IRINA VOROTINOV recruited a third party to open an account at a local branch of U.S. Bank and to deposit the insurance check into the account. She then caused the third party to transfer $1.5 million to another account at US Bank in the name of her son, Alkon Vorotinov. Ultimately, Between March 29, 2012 and January 2015, the defendant caused more than $1.5 million of the life insurance proceeds to be transferred to accounts located in Switzerland and Moldova.
The defendant pleaded guilty today before U.S. District Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minn.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.
Assistant U.S. Attorney David J. Maclaughlin is prosecuting the case.
Defendant Information:
IRINA VOROTINOV, 49
Plymouth, Minn.
Convicted:
- Mail Fraud, 1 count
- Engaging in a monetary transaction in criminally derived property, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Pennsylvania Man Pleads Guilty to Federal Drug ChargeRead the Press Release
ROANOKE, VIRGINIA – A Pennsylvania man pled guilty today in the United States District Court for the Western District of Virginia in Roanoke to Federal heroin charges, United States Attorney John P. Fishwick Jr. announced.
Orlando Sanchez, 29, of Reading, Pennsylvania, pled guilty today to one count of conspiracy to distribute 100 grams or more of heroin.
“All across the Commonwealth, we see the crisis of heroin abuse spreading at alarming rates,” United States Attorney John P. Fishwick Jr. said today. “We will continue to work to prosecute those who trafficking in this dangerous drug while also providing support for prevention and treatment programs for those addicted to this deadly substance.”
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Town of Vinton Police Department, the Roanoke City Police Department and the Roanoke County Police Department. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
North Carolina Man Pleads Guilty to Federal Drug ChargeRead the Press Release
ROANOKE, VIRGINIA – A North Carolina man pled guilty this morning in United States District Court for the Western District of Virginia in Roanoke to conspiring, with others, to distributing methamphetamine throughout the Western District of Virginia, United States Attorney John P. Fishwick Jr. announced.
Michael Allen Kerns, 23, of Clemmons, North Carolina, pled guilty today to one count of conspiracy to distribute 50 grams or more of methamphetamine.
“Law enforcement continues to effectively respond to the rising tide of methamphetamine abuse in the Western District of Virginia,” United States Attorney John P. Fishwick Jr. said today. “This is a dangerous drug that destroys lives and we are proud to work with our local, state and federal partners to rid it from our communities.”
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, the Wythe County Sheriff’s Office, the Smyth County Sheriff’s Office and the United States Marshals Service. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
New York Man Pleads Guilty to Distribution of Heroin Resulting in DeathRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dameon Lattimore, age 39, of New York, pleaded guilty today before U.S. District Court Judge John E. Jones, III in Harrisburg, to distributing heroin and crack cocaine that led to the death of a York City man.
According to United States Attorney Peter Smith, Lattimore was charged by a grand jury in Harrisburg in December 2015 with codefendants Yushonda Durant, age 40, of New York, and Frederick Gladfelter, age 46, of York.
Gladfelter pleaded not guilty in December 2015 and is awaiting trial. Durant remains a fugitive.
The investigation was conducted by the Drug Enforcement Administration, the York City Police Department and the York County District Attorney’s Office and is assigned to Assistant U.S. Attorney William A. Behe.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment on the drug charges. The charge of causing death from drug distribution carries a mandatory minimum 20 year term of imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New Carrollton Man Pleads Guilty to Stealing over $110,000 in Social Security BenefitsRead the Press Release
Baltimore, Maryland – Calelah John Lattisaw, age 58, of New Carrollton, Maryland, pleaded guilty today to wire fraud arising from a scheme to steal $110,107 in social security benefits.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division; and John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.
According to his guilty plea, in February 1993, Lattisaw began receiving Supplemental Security Income through the Social Security Administration (SSA) for a disability. In order to receive benefits, Lattisaw was required to report to SSA information regarding his income, resources and living arrangements. Lattisaw admitted that at the time of his application, he concealed from SSA that he was living with two other individuals, both of whom were also receiving SSA benefits.
In addition, Lattisaw took steps to hide additional income and assets from SSA. Specifically, in 1997, Lattisaw was living with his sister-in-law, S.L., who died on November 23, 1997. At the time of her death S.L. was receiving Social Security Survivor Benefits, as well as a D.C. pension, administered by the U.S. Treasury. Both benefits were paid by direct deposit to her bank account. Prior to her death, Lattisaw was added as a co-signor to S.L.’s bank account under the name John. H. Lattisaw, using the social security number of another individual, B.K. Neither SSA, nor the U.S. Treasury were advised of S.L’s death. Although Lattisaw knew that he had no legal entitlement to S.L.’s beneifts, he withdrew virtually all of the SSA and pension benefits from S.L.’s account via ATM withdrawals and debit purchases. Lattisaw did not advise SSA of this additional income and because he had used an alias and the SSN of another person on the bank account, any check run by SSA to locate additional income would have been unsuccessful.
In 2003, while Lattisaw was receiving S.L.’s benefits and his own SSI benefits, Lattisaw married an elderly woman, M.B. Shortly after marrying M.B., Lattisaw attempted to sell her home, but her family blocked the sale and had the marriage annulled. In 2006, Lattisaw moved M.B. out of her nursing facility and in to the home he shared with his girlfriend. Lattisaw remarried M.B. and became power of attorney over one of her bank accounts and the co-signor on another bank account, again using his alias, John H. Lattisaw, and B.K.’s SSN. M.B. died on June 11, 2006 at Lattisaw’s home. Five days later, Lattisaw liquidated a certificate of deposit at one of M.B’s accounts and withdrew $161,000. Lattisaw subsequently deposited those funds into a new account opened in the name of his alias, using B.K.’s SSN. Lattisaw did not report the change in his living conditions, nor this additional income to SSA.
Had SSA been aware of Lattisaw’s income, resources, or living arrangements, he would not have qualified for SSI benefits. Between 2000 and 2015, Lattisaw received $110,107 in SSI benefits to which he was not entitled.
Lattisaw and the government have agreed that if the Court accepts the plea agreement Lattisaw will be sentenced to three years in prison followed by three years of supervised release. U.S. District Judge Ellen L. Hollander has scheduled sentencing for August 24, 2016 at 2:30 p.m.
United States Attorney Rod J. Rosenstein commended the Social Security Administration - Office of Inspector General and U.S. Department of the Treasury - Office of Inspector General for their work in the investigation and thanked Special Assistant U.S. Attorney Lauren E. Perry and Assistant U.S. Attorney Tamera L. Fine, who are prosecuting the case.
Missouri man sentenced for selling LSDRead the Press Release
WHEELING, WEST VIRGINIA – Casey Tyler Nagy, 29, originally of Missouri, was sentenced today to 46 months in prison for drug trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Nagy distributed lysergic acid diethylamide (LSD) in June 2015 in Wetzel County, West Virginia. Nagy pled guilty in March 2016 to one count of “Distribution of LSD.”
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Martinsville Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Minneapolis Man Sentenced in Human Trafficking of a ChildRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on April 18, 2016, Anthony Lamarr Sims, 21, a.k.a. Mar Mar, Minneapolis, Minn., was sentenced before U. S. District Judge Ralph R. Erickson to serve 14 years in prison for one count of Sex Trafficking of Children. Judge Erickson also sentenced Sims to serve 10 years of supervised release and to pay a $100 special assessment to the Crime Victims’ Fund.
"For predators convicted of the horrendous crime of sex trafficking minors, there are severe consequences in the form of a lengthy prison sentence, as Mr. Sims has learned firsthand," said Special Agent in Charge Alex Khu of HSI in St. Paul. "This case is a result of the excellent relationship between HSI special agents and local police officers who continuously work together to root out this type of violent activity to keep communities safe"
This case came to the attention of law enforcement after a Fargo Police Officer encountered the 15-year-old victim during a traffic stop on January 16, 2015. At the time of the traffic stop the victim provided a false name to law enforcement. The victim was then transferred to the Cass County jail, after which law enforcement discovered she was a runaway from a St. Paul, Minnesota. A subsequent investigation revealed that Sims brought the victim from Minneapolis to Fargo for the purpose of prostitution. Before he traveled to Fargo on January 15, 2015, Sims directed another individual to post an advertisement on backpage.com wherein it was advertised that there were women available for commercial sex.
This case was investigated by the Fargo Police Department and the Department of Homeland Security - Homeland Security Investigations.
Assistant U. S. Attorney Jennifer Puhl prosecuted the case.
This case was prosecuted with the assistance of the North Dakota Human Trafficking Task Force (NDHTTF), which includes regional response teams that consist of federal, state, and local law enforcement and victim service providers working together to identify and rescue human trafficking victims as well as investigate and prosecute human trafficking cases. Led by the U.S. Attorney’s Office, BCI, and the North Dakota Counsel on Abused Women Services (CAWS), the NDHTTF is dedicated to addressing the individualized needs of human trafficking victims and the apprehension, investigation, and prosecution of the perpetrators of human trafficking.
Methodist University Hospital Agrees to Settle Allegations that it Violated the Americans with Disabilitiees ActRead the Press Release
Memphis, TN –Methodist University Hospital, in order to resolve allegations that it violated the Americans with Disabilities Act, has agreed to improve its procedures regarding effective communication to people who are deaf or have hearing disabilities. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the settlement today.
"Protecting citizens by ensuring full compliance with the Americans with Disabilities Act remains a priority for the U.S. Attorney’s Office," said U.S. Attorney Stanton. "We appreciate the cooperation of Methodist Healthcare in quickly resolving this matter and recognizing the importance of communicating effectively with its hearing impaired patients."
The Americans with Disabilities Act requires businesses serving the public to provide the means for effective communication with hearing impaired persons. Depending on the length and complexity of the communication, providing the means for effective communication can range from exchanging written notes to using a sign language interpreter.
The United States’ investigation revealed that a hearing impaired person presented herself to the emergency room (ER) and initially wrote notes to explain why she was there. However, emergency room personnel did not follow through by initiating a request for an interpreter and actually thought the patient had left the ER when she did not respond to her name being called. Even after this mistake was discovered, an interpreter never arrived at the hospital to assist the patient. In all, the patient spent nine hours in the Methodist University ER.
Under the Settlement Agreement with Methodist Healthcare, the hospital will improve its procedures for identifying and tracking the needs of hearing impaired patients and its procedures for using interpreters. Methodist will also pay damages to the person who filed the complaint in the amount of $8,000.
Assistant U.S. Attorney Gary A. Vanasek investigated the complaint and negotiated the Settlement Agreement.
McKees Rocks Man Gets 6 Years in Prison for Role in Cross-Country Cocaine Trafficking SchemeRead the Press Release
PITTSBURGH - A resident of Allegheny County has been sentenced in federal court to 72 months’ imprisonment on his conviction of conspiracy to distribute cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Ellis Harris, 45, of McKees Rocks, PA.
According to information presented to the court, in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Ellis Harris was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Ellis Harris.
Man Convicted of Cocaine Distribution Conspiracy, Dog FightingRead the Press Release
Memphis, TN – After a five-day trial, a federal jury convicted a man of conspiring to distribute multiple kilograms of cocaine and launder large sums of drug proceeds. Prior to the trial, the defendant pleaded guilty to partaking in a dog fighting enterprise. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty verdict today.
According to information presented in court, Daniel Scott Sr., aka Old School, 51, of Memphis, Tennessee, conspired with several others to distribute and did distribute more than five kilograms of cocaine between March 2014 and May 2015. Scott also conspired with others to launder hundreds of thousands of dollars obtained from trafficking cocaine.
Over the same time period, Scott conspired with others to locate and develop various properties to serve as the staging area for housing and training American Pit Bull Terriers and hosting dog fighting gambling shows. Additionally, pit bulls were purchased, trained and bred for participation in the dog fight gambling shows.
On Monday, May 9, 2016, Scott pleaded guilty to one count of conspiracy to engage in dog fighting before U.S. District Judge John T. Fowlkes Jr.
On Friday, May 13, 2016, a federal jury convicted Scott of one count of conspiring with others to possess with the intent to distribute and distribute more than five kilos of cocaine; and one count of conspiring with the intent to launder and launder drug trafficking proceeds.
• On the drug conspiracy charge, Scott faces a minimum sentence of 10 years imprisonment and a fine of up to $10 million.
• On the money laundering charge, he faces up to 20 years imprisonment and a fine of up to $500,000.
• On the dog fighting conspiracy charge, he faces up to five years imprisonment and a fine of up to $500,000.
Scott is scheduled to be sentenced by Judge Fowlkes on Friday, August 5, 2016.
This case is being investigated by the FBI’s Safe Streets Task Force. The collective is comprised of federal, state and local law enforcement personnel.
Assistant U.S. Attorneys Sam Stringfellow and Michelle Parks are prosecuting this case on the government’s behalf.
Major Tobacco Distributor Sentenced to Five Years in Prison for $16 Million Excise Tax Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Moo Hoon “Steve” Kim, 54, of Cypress, was sentenced today to five years in prison and ordered to pay over $16 million in restitution for mail fraud related to a scheme to avoid paying excise tax on tobacco products, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between 2006 and 2009, Kim was responsible for bringing over $35 million in untaxed other tobacco products (OTP) into California. OTP is any tobacco product other than cigarettes and consists primarily of cigars, chewing tobacco, and leaf tobacco. A federal jury found Kim guilty after a seven–day trial in March 2015 before United States District Judge William B. Shubb.
The evidence at trial showed that Kim used front companies, set up by others at his direction, to disguise his illegal purchases and subsequent sales of untaxed OTP from out-of-state sources. These companies included KS Wholesale in Vernon, California, and Cheap Cig Distributor in Paramount, California. Kim also used another front company – Discounted Tobacco in Long Beach, California – as a retail outlet for some of the untaxed OTP that he sold through his company, Jobber’s Wholesale. As a result of Kim’s scheme, California was defrauded of over $16 million in excise taxes. A large percentage of the revenue from the excise tax is used to fund California’s early childhood development program, First 5 California.
“Many resources were utilized to combat the unlawful trafficking of tobacco products by Moo Hoo Kim who was ultimately found guilty of mail fraud,” said Special Agent in Charge Jill A. Snyder. “ATF and our partners stopped the illegal activities by Kim which resulted in a loss of over $16 million dollars in excise taxes for state of California. Today’s sentencing reflects this significant prosecution.”
“This sentence is a huge victory in our fight against underground economic activity in our state,” said Board of Equalization Member Jerome E. Horton. “It reinforces the need for continued prosecution of these types of crimes.”
This case was the result of the efforts of a joint task force involving the U.S. Attorney’s Office, the California Department of Justice, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the California State Board of Equalization (BOE). To date, 27 defendants have been sentenced in 16 criminal cases. Over $50 million in restitution has been ordered to be repaid to BOE. Nineteen civil forfeiture cases have resulted in over $16 million in assets seized for repayment to BOE for lost tax revenue. For the last several years, these offices have supported a task force dedicated to combating the systemic problem of tobacco excise tax evasion in California. In 2007, the BOE estimated that the state lost approximately $90 million in unstamped tobacco excise taxes to contraband distributors and approximately $120 million in excise taxes for taxed stamped tobacco like cigarettes. Because California has a relatively high tobacco excise tax rate, it is a frequent target for contraband tobacco smugglers and tax evaders. Assistant United States Attorney Michael D. Anderson and U.S. Department of Justice Antitrust Division Trial Attorney Richard A. Powers, designated as a Special Assistant United States Attorney, prosecuted the case.
Local Construction Company Settles Allegations of Fraud Involving A Disadvantaged Business EnterpriseRead the Press Release
Mountain States Contractors, LLC, an affiliated company of Jones Brothers, has agreed to pay the United States more than $2,250,000 to settle False Claims Act (“FCA”) allegations, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee for the administration of this settlement. The settlement resolves a civil investigation of Mountain States and affiliated companies for submitting false claims for payment to the United States in connection with the United States Department of Transportation’s Disadvantaged Business Enterprise (“DBE”) Program.
The DBE Program provides a vehicle for increasing the participation by Minority Business Enterprises in state and local transportation projects and ensures that DBEs can compete fairly for federally funded transportation-related work.
“Enforcement of the False Claims Act is a top priority of the Department of Justice and this office,” said Acting U.S. Attorney Jack Smith. “This enforcement effort includes investigating schemes to exploit federal programs aimed to help small and minority businesses to compete in the federal marketplace. The U.S. Attorney’s Office will continue to devote the resources necessary to investigated these and other False Claims Act violations in order to protect taxpayers’ interests and aggressively pursue fraud, waste, and abuse.”
The United States alleged that Mountain States and its affiliated company, HMA, as the prime contractors on a federally-funded construction projects, agreed that they would use DBEs to perform subcontracted work on the projects. For a number of these projects, Mountain States and HMA subcontracted with G&M Associates. Although G&M Associates is a certified DBE, evidence obtained during the investigation indicated that Mountain States had improperly “loaned” its employees to G&M to perform the DBE work on the projects. The entities claimed these employees as DBE employees for purposes of obtaining payment for their work despite the fact that the prime contractors continued to provide their health insurance. The prime contractors also improperly leased equipment to G&M, which the entities then counted against the projects’ DBE goals.
“Fraud schemes like that committed by Mountain States harms the integrity of law abiding, small business contractors trying to compete for contracts on a level playing field,” said Marlies Gonzalez, regional Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General. “Working with our Federal, State, and local law enforcement and prosecutorial partners, we will continue our vigorous efforts to pursue those who violate the law, and hold individuals and companies accountable that choose to illegally take advantage of minority and women-owned business enterprise programs.”
The allegations resolved by today’s settlement were originally raised in a lawsuit filed against Mountain States by a former Mountain States employee who brought his claims under the qui tam, or whistleblower, provisions of the FCA, which allow private citizens with knowledge of false claims to bring civil suits on behalf of the government and to share in any recovery. The whistleblower will receive $500,000 as his share of the settlement.
In addition to the settlement, Mountain States will enter into a monitoring agreement with the Federal Highway Administration. This agreement will help to prevent similar conduct in the future.
This matter was investigated by the DOT-Office of Inspector General and the United States Attorney’s Office for the Middle District of Tennessee. The United States was represented by Assistant U.S. Attorney Christopher C. Sabis.
This case is docketed as United States ex rel. Meadows v. Mountain States Construction, LLC, No. 3:12-cv-0523 (M.D. Tenn.).
Leader of Armed Drug-Dealing Group Sentenced to 40 Years for Trying to Kill a Federal Informant in Retaliation for Assisting Law EnforcementRead the Press Release
CHICAGO — The leader of a group of armed drug dealers who sold crack cocaine and heroin on Chicago’s West Side and western suburbs was sentenced today to 40 years in prison for trying to murder a federal informant who was assisting law enforcement.
TOBY JONES and his associates tried to kill the informant on two occasions in the spring of 2014 in retaliation for the informant’s cooperation with the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. In the first attempt, Toby Jones fired several shots through the front door of an apartment in the informant’s building in Oak Park. The informant was not injured, but an innocent victim was wounded. The second attempt occurred a week later, when Toby Jones’ older brother, KELSEY JONES, approached the informant’s car outside of the same building and fired several shots, wounding the informant and another occupant. Both victims survived, as did the victim of the first shooting.
Toby Jones, 38, and Kelsey Jones, 39, both of Chicago, were convicted earlier this year of conspiring with each other in the attempted murder of the informant. Toby Jones was convicted after a bench trial before U.S. District Judge Amy J. St. Eve, who also found him guilty of distributing cocaine and illegally possessing a firearm. Kelsey Jones was found guilty after a jury trial. The jury also convicted him on gun and drug charges.
Judge St. Eve today imposed the sentence on Toby Jones. A sentencing date for Kelsey Jones has not yet been scheduled.
“The south and west sides of Chicago are racked with armed drug dealers who terrorize the community with the violence and social decay that inevitably accompanies their pernicious trade,” Assistant U.S. Attorney Sean J.B. Franzblau argued in the government’s sentencing memorandum. Attempting to murder a federal witness is “an effort to weaken the institutions and processes that maintain social order.”
Testimony at the Jones’ trial revealed that Toby Jones led a group of armed cocaine and heroin dealers. In December 2013, a confidential informant introduced an undercover ATF agent to Toby Jones, and for the next several months the agent and the informant purchased crack cocaine from him. During these meetings, Toby Jones negotiated to purchase from the undercover agent a firearm with a high-capacity magazine in exchange for crack cocaine.
On March 26, 2014, Toby Jones sent one of his drug dealers, WESLEY FIELDS, to meet with the undercover agent and purchase the gun. Fields was arrested by federal authorities shortly after he arrived at the meeting. Toby Jones thereafter began a week-long effort to track down and murder the confidential informant who set up the deal, culminating in the shootings in Oak Park.
Fields, of Chicago, pleaded guilty last year to participating in a drug conspiracy and possessing a firearm. He was sentenced last week to nine years and nine months in prison.
Today’s sentencing of Toby Jones was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Jeffery Magee, Special Agent in Charge of the Chicago Field Division of ATF. The Oak Park Police Department assisted in the investigation.
The government is represented by Mr. Franzblau and Assistant U.S. Attorney Brian Hayes.
Kern County Man Pleads Guilty to Receipt and Distribution of Child Pornography in “Sextortion” CaseRead the Press Release
FRESNO, Calif. — Brian Caputo, 27, of Arvin, pleaded guilty today to receipt and distribution of child pornography, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between December 2008 and February 2014, Caputo used various social media accounts to pose as a girl and communicate with dozens of minor females throughout the United States. Soon after establishing communication with the minors, Caputo would threaten to reveal sexually explicit images of their friends unless they created and sent him images of themselves posing nude or otherwise engaging in sexually explicit conduct. In June 2013, Caputo contacted a 12-year-old girl in El Paso, Texas and threatened to distribute sexually explicit pictures of her 11-year-old friend unless she sent nude images of herself to Caputo. The victim told a family member who contacted the El Paso Police Department.
When law enforcement investigators traced the threatening communications to Caputo, they discovered that he had been victimizing other minors across the United States. For example, Caputo convinced one victim to take more than 660 sexually explicit images of herself and upload them to a Dropbox account that Caputo controlled.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the El Paso Police Department and the FBI’s Violent Crimes Against Children Task Force. Assistant United States Attorney Michael Tierney is prosecuting the case.
Caputo is scheduled to be sentenced on August 8, 2016. Caputo faces a maximum statutory penalty of 20 years in prison for receipt or distribution of child pornography and a $250,000 fine for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Click on the “resources” tab for information about Internet safety education.
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Kentuckians and Russian Nationals Convicted in Multi-Million Dollar Cigarette Tax Fraud SchemesRead the Press Release
ASHLAND — Three Kentuckians and two Russian nationals are among those convicted of schemes to defraud federal, state and local governments, nationwide, of cigarette excise taxes totaling approximately $48 million dollars.
John Maddux, Jr. and Christina Carman, both formerly of Russell, Ky.; Julie and Anthony Coscia, of Pinetop, Ariz.; David White, formerly of Ashland, Ky.; Michael Smith, of Escondido, Calif.; and Alexander Sergeev and Mikhail Serov, both of St. Petersburg, Russia, will be sentenced for their roles in the schemes.
According to court documents and evidence at trial, the defendants operated mail order or internet businesses engaged in the delivery sales of cigarettes to customers in all fifty states. Maddux and Carman operated a cigarette mail order business known as YKTR, which sold domestically manufactured cigarettes to United States customers. YKTR also fulfilled cigarette orders for Julie and Anthony Coscia, who operated a business known as Cigarette Girl, for David White, who operated a business known as AA Discount Cigarettes, and for Michael Smith, who operated a business known as Payless Enterprises.
Maddux also operated a cigarette mail order business known as ESR II, which sold internationally manufactured cigarettes supplied by Sergeev and Serov, and other foreign nationals. The Coscias, White, and Smith also purchased cigarettes from Sergeev and Serov and comingled their money with Maddux, who wired the payments overseas.
In each scheme, the defendants illegally sold the cigarettes at discount prices, which violate the Jenkins Act and the PACT Act. The Jenkins Act, in effect prior to June 2010, required registering and reporting the sales made by each of these businesses to state tax administrators. This reporting allowed the states to collect excise taxes from their citizens. The PACT Act amended the Jenkins Act, in June 2010, by enhancing the registering and reporting requirements, and by requiring the businesses to pay the excise taxes themselves. The defendants avoided these requirements altogether. The co-conspirators also violated a provision of the PACT Act which prohibited the use of the U.S. Mail for the distribution of deliver sales of cigarettes. They did so by disguising the cigarette packages as mail order gifts and other items, in violation of the law.
Julie and Anthony Coscia and Michael Smith were convicted of multiple counts, at a trial in January 2016, relating to the sale of domestic and international cigarette product. Christina Carman was also convicted at the trial, of a charge relating to her participation in the sale of domestic product. She was acquitted of charges relating to the sale of international product.
Maddux pleaded guilty, on May 6, 2016, to multiple conspiracies to commit mail and wire fraud, money laundering and violations of the PACT Act. Maddux also pleaded guilty to charges that he made false statements to the Department of Labor, in an on-going effort to receive worker’s compensation payments to which he was not entitled as a result of the illegal business enterprises in which he was involved. Serov and Sergeev pleaded guilty, the same day, to charges including conspiracy to commit wire fraud and conspiracy to violate the PACT Act.
Domestic and International trafficking in untaxed cigarettes via mail order or the Internet is a serious crime, which defrauds state and federal governments of hundreds of millions of dollars in tobacco taxes and funds other criminal activity.
This announcement was jointly made by Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky; John Cooper, Special Agent in Charge, Louisville Field Division, Alcohol Tobacco Firearms and Explosives; Tracey Montano, Special Agent in Charge, Nashville Field Office, Internal Revenue Service-Criminal Investigations; Richard Deer, Acting Special Agent in Charge, Philadelphia Regional Office of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and Mark McCormack, Special Agent in Charge, Metro Washington Field Office, U.S. Food and Drug Administration.
The investigation was conducted by the Bureau of Alcohol Tobacco Firearms and Explosives, the Internal Revenue Service-Criminal Investigations, the United States Department of Labor, Office of Inspector General, and U.S. Food and Drug Administration. Assistant United States Attorneys Laura K. Voorhees and Wade T. Napier, and ATF Associate Chief Counsel, Jeffery A. Cohen, prosecuted this case on behalf of the federal government.
Sentencing will be scheduled in August 2016, before U.S. District Court Judge David L. Bunning. The conspiracy offense carries a maximum of 20 years in prison. Any sentence will be imposed by the Court, however, after consideration of the federal Sentencing Guidelines and the statutes governing the imposition of sentences.
Jicarilla Apache Man Pleads Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE – Tyson Atole, 30, an enrolled member of the Jicarilla Apache Nation who resides in Dulce, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to assault charges arising out of two separate incidents during which he attacked Native American women.
Atole was arrested in Feb. 2016, on an indictment charging him with assault with a dangerous weapon, a bottle, and assault resulting in serious bodily injury. The indictment alleged that Atole committed the crimes on May 2, 2015, on the Jicarilla Apache Indian Reservation in Rio Arriba County, N.M.
During today’s proceedings, Atole pled guilty to one count of the indictment charging him with assault with a dangerous weapon and admitted assaulting a woman with a bottle on May 2, 2015. Atole also plead guilty to a felony information charging him with assault resulting in serious bodily injury and admitted assaulting another woman and causing her to sustain serious bodily injury by intentionally striking her with his fist on Jan. 28, 2016. Atole admitted committing both crimes on the Jicarilla Apache Indian Reservation.
Atole was remanded into custody after entering his guilty plea. He will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Atole faces a maximum statutory penalty of ten years in federal prison on each of the two assault charges.
This case was investigated by the Jicarilla Apache Tribal Police Department and is being prosecuted by Assistant U.S. Attorney Joseph Spindle.
This case was brought as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Jefferson City Man Sentenced for Crack CocaineRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was sentenced in federal court today for possessing crack cocaine with the intent to distribute.
Herbert Rogers, Jr., 41, of Jefferson City, was sentenced by U.S. District Judge Stephen R. Bough to six years and three months in federal prison without parole.
On Sept. 15, 2015, Rogers pleaded guilty possessing crack cocaine with the intent to distribute.
On Jan. 16, 2015, Jefferson City police officers executed a search warrant at Rogers’s apartment. Rogers was in the bathroom, attempting to flush cocaine and crack cocaine down a toilet. Officers handcuffed Rogers and were able to preserve the evidence in the toilet and on the bathroom floor. In total, approximately 97.5 grams of crack cocaine, 205.4 grams of cocaine and 24 grams of heroin were recovered from the residence. Officers also found digital scales, baggies, six cell phones and $2,035.
According to court documents, Rogers was being investigated for drug trafficking throughout 2014. In January 2015, Rogers had been stopped in Foristell, Mo., and during the stop, he threw something out the window of his vehicle. An officer later found a bag in the same area that contained approximately 325 grams of cocaine.
This case is being prosecuted by Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by the Drug Enforcement Administration, the Jefferson City, Mo., Police Department and the MUSTANG Task Force.
Jefferson City Man Sentenced for Child PornRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was sentenced in federal court today for receiving and attempting to distribute child pornography over the Internet.
Dustin Clay Trail, 35, of Jefferson City, was sentenced by U.S. District Judge Stephen R. Bough to five years in federal prison without parole. The court also sentenced Trail to a term of supervised release for 10 years following incarceration.
Trail, who pleaded guilty on Aug. 13, 2015, admitted that he received child pornography over the Internet on Sept. 3, 2013. Trail also pleaded guilty to attempting to distribute child pornography over the Internet on Sept. 4, 2013, and to possessing child pornography from May 2013 to Oct. 31, 2013.
The investigation began in May 2013 when the National Center for Missing and Exploited Children received CyberTip report regarding child pornography being sent by e-mail. Law enforcement officers executed a search warrant at Trail’s residence and seized a desktop computer, three hard drives and compact discs, which Trail must forfeit to the government. Investigators discovered 14,675 thumbnail images on the desktop hard drive that contained possible child pornography. Additionally, 20 web video fragments were recovered. A total of 65 images containing child pornography associated with e-mail exchanges were recovered.
According to court documents, Trail was a prolific user and exchanger of child pornography. Trail admitted that he had been trading child pornography for a couple of years with approximately a dozen individuals online. According to court documents, Trail exchanged images depicting extremely young, prepubescent females engaged in graphic sexual acts with adults.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, the Boone County Cyber Crimes Task Force and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Inland Empire Man Sentenced to 9 Years in Prison for Defrauding Investors and Pennsylvania Car Dealership out of $1.3 MillionRead the Press Release
LOS ANGELES – An Inland Empire man who operated a fraudulent foreign currency exchange investment house and who arranged for an unauthorized wire transfer from a Pennsylvania car dealership was sentenced today to 108 months in federal prison, and to pay $1,303,307 in restitution.
Malachai Levy – who was born Ralph Maurice Metters, but recently legally changed his name – 38, of Corona, was sentenced today by United States District Judge John F. Walter.
While imposing the nine-year prison term, Judge Walter said that Levy was “the definition of a classic con man,” and noted that the defendant conspired to commit credit card fraud over jail telephones that he knew were being monitored while he was awaiting sentencing in the wire fraud case.
Levy pleaded guilty in January 2015 to conspiring to commit wire fraud and admitted both the fraudulent wire transfer and defrauding investors who thought their money would be used in connection with foreign currency investments with various companies, including Omni Finance and Mo Betta Advisors.
In relation to the fraudulent wire transfer, an unknown person hijacked the online banking profile of an account belonging to a Lexus dealership in Haverford, Pennsylvania, according to documents filed in this case. An online request was made in 2013 that resulted in a fraudulent wire transfer of $556,375 to Levy’s Omni Finance account in California.
In relation to the fraudulent investment scheme, in 2013 the owner of a Tennessee bakery business invested $500,000 with Levy, who promised that the money would be used to make foreign currency trades. Even though the investment was supposed to remain in an escrow account, the money was soon disbursed after Levy submitted notarized paperwork with the victim’s forged signature.
“This defendant’s criminal conduct was widespread and demonstrates an aversion to leading a law-abiding life,” said United States Attorney Eileen M. Decker. “This lengthy prison sentence is the result of various schemes and hopefully will allow Mr. Levy time to consider the benefits of following the law.”
The case against Levy is the product of an investigation by the Federal Bureau of Investigation, the United States Secret Service and the Hawthorne Police Department.
Honduran citizen pleads guilty to lying on passport applicationRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a man from Honduras pleaded guilty last week to submitting false information when applying for a passport.
Henry Arevalo, 28, of Honduras, entered a conditional guilty plea Friday for one count of false statement on a passport application before U.S. Magistrate Judge Carol B. Whitehurst. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to the guilty plea, Arevalo used another person’s name, birthdate and social security number on a passport application on April 17, 2015 at a U.S. Post Office in Calcasieu Parish. He attempted to obtain the passport for personal use.
Arevalo faces up to 10 years in prison, three years of supervised release and a $250,000 fine. A sentencing date was not set.
The U.S. State Department conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Holland Resident, Zachary Stephen Thomas, Arrested for Stealing MailRead the Press Release
Zachary Stephen Thomas Stole Checks and Financial Information from Lakeshore Residents
GRAND RAPIDS, MICHIGAN — Zachary Stephen Thomas, age 32, from Holland, Michigan, was arrested this weekend and appeared today on a criminal complaint charging him with theft and/or unlawful possession of United States mail, and bank fraud. He faces a potential prison sentence of up to 5 years on the mail theft charges and up to 30 years on the bank fraud charges.
"The integrity of the United States mail is of great importance to my office," said U.S. Attorney Pat Miles, Jr. "Theft of the mail, especially theft of financial documents and personal information, can have devastating consequences for the residents of this district. Those who choose to engage in this conduct will be held fully accountable for their actions."
According to an affidavit unsealed in federal court today, Thomas began stealing and unlawfully possessing the mail of residents of Holland, especially the lakeshore community, in December 2015. Thomas routinely stole bank account checks and credit card convenience checks mailed to Holland area residents. Thomas then forged the checks, deposited them into his own bank account, and withdrew large amounts of cash from his bank’s automated teller machine before the bank discovered that the checks were fraudulent. Local law enforcement conducted two searches of Thomas’s apartment and recovered a significant amount of mail addressed to other individuals.
Thomas is presently in the custody of the United States Marshal. His preliminary and bond hearings will occur on Thursday, May 19, 2016, in United States District Court in Grand Rapids, Michigan. The case is being investigated by the United States Postal Inspection Service and the Ottawa County Sheriff’s Office, and is being prosecuted by Assistant United States Attorney Ronald M. Stella.
The charges in a criminal complaint and supporting affidavit are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Harrison County, WV woman sentenced for selling cocaine near local playgroundRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jessica A. McCracken, 33, of Clarksburg, was sentenced today to 21 months in prison for cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
McCracken sold cocaine base near the Harrison Street Playground in Harrison County, West Virginia. She pled guilty in September 2015 to one count of “Distribution of Cocaine Base within 1,000 feet of a Protected Location.”
Assistant U.S. Attorney Sarah Montoro prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided.
Four El Reno Men Plead Guilty for Their Roles in the Failure of the Bank of UnionRead the Press Release
Oklahoma City, Oklahoma – CODY GENE BOMHAK, 34, TERRY GENE BOMHAK, 53, and GARY DEAN BOMHAK, 50, all of El Reno, Oklahoma, entered guilty pleas last week for their involvement in the failure of The Bank of Union, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
In April, 2015, each of the three defendants were separately charged with making a false statement for the purpose of influencing the action of The Bank of Union, in violation of 18 U.S.C. § 1014. At their change of plea hearings before U.S. District Judge Timothy D. DeGiusti, Cody and Terry Bomhak each admitted that their conduct resulted in a loss of between $25,000,000.00 and $50,000,000.00 to The Bank of Union. Gary Bomhak admitted to conduct causing between $3,500,000.00 and $9,500,000.00 in loss to the bank.
In a related case, JUSTON TECH, 39, also from El Reno, previously pleaded guilty to making false statements in order to influence The Bank of Union. At his plea hearing late last year, Tech admitted to causing a loss amount of between $2,500,000.00 and $7,000,000.00 to the bank.
At sentencing, each of the defendants face up to 30 years in prison, a $1,000,000 fine, and up to five years of supervised release. According to the terms of their plea agreements, they will also be ordered to pay restitution to the victims of their conduct in an amount to be determined by the court at the time of sentencing.
This case is the result of an investigation by the Federal Deposit Insurance Corporation and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Julia E. Barry.
Fort Worth Man Faces Five Years in Federal Prison for Making a False Statement in a Bankruptcy CaseRead the Press Release
DALLAS — A Fort Worth man, Alton Alexis, appeared Friday afternoon before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to an Information charging one count of making a false statement under penalty of perjury, announced U.S. Attorney John Parker of the Northern District of Texas.
Alexis, 58, faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. He will remain on bond pending sentencing, which is set for September 2, 2016, before Judge Fitzwater.
According to documents filed in the case, in January 2010, Alexis, on behalf of borrower NSAA Investment Group, signed a promissory note with One World Bank for a loan of approximately $3,744,050 to finance the construction of a movie theatre restaurant. From early 2010 through early 2011, Alexis caused more than $2 million in loan proceeds to be disbursed from One World Bank to accounts in the name of BBA Construction Company and/or NSAA Investment Group. Alexis later submitted three fictitious invoices to One World Bank which caused at least $245,000 of those loan proceeds to be fraudulently diverted to bank accounts he controlled. Alexis then used these diverted loan proceeds to pay his personal debts.
In May 2011, Alexis made a material false statement in a bankruptcy case, In re Alton Alexis and Althea Lynette Alexis, filed in the Northern District of Texas, when he filed an Amended Statement of Financial Affairs that falsely represented he had truthfully disclosed all income received in the two years immediately preceding the commencement of the case. Instead of truthfully disclosing all income, Alexis fraudulently concealed the $245,000 of income, in the form of fraudulently diverted loan proceeds, he received in 2010.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. This defendant is the 12th defendant convicted since July 2014 as part of that initiative.
Internal Revenue Service Criminal Investigation investigated the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Former St. Clair Sheriff's Deputy Pleads Guilty to Stealing Public FundsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former St. Clair County, Mo., sheriff’s deputy and a former county jail inmate each have pleaded guilty to their roles in a wire fraud scheme.
Michael E. Mullaney, 54, of Lowry City, Mo., pleaded guilty today before U.S. Magistrate Judge David P. Rush to stealing public money. Co-defendant William E. Parker, 54, of Fort Ritchie, Fla., formerly of Urich, Mo., pleaded guilty on Feb. 5, 2016, to wire fraud.
Mullaney was a deputy with the St. Clair County, Mo., Sheriff’s Department who arrested Parker for first degree burglary on Feb. 20, 2010. While Parker was incarcerated, he and Mullaney devised a scheme to defraud Work Force West Virginia to claim unemployment benefits for Parker to which he was not entitled.
Mullaney admitted that he obtained personal information from Parker in order to make Parker’s claim for unemployment benefits through Work Force West Virginia. Mullaney completed an Internet form with Parker’s personal information to fraudulently certify Parker’s eligibility for unemployment benefits. Parker was not eligible for unemployment benefits because he was not available and willing to accept full-time suitable work while he was incarcerated.
As a result of the fraud scheme, Parker received $5,388 on a bank debit card between Feb. 25 and May 10, 2010.
Under federal statutes, Mullaney is subject to a sentence of up to one year in federal prison without parole. Parker is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the FBI, the Missouri State Highway Patrol, the St. Clair County, Mo., Sheriff’s Department and the Work Force West Virginia Unemployment Compensation Division.
Former Government Contractor Pleads Guilty to BriberyRead the Press Release
Bribes Paid to Former GSA Employees Totaling $15,000 in Exchange for Contract Work
A former government contractor pleaded guilty today to paying bribes to public officials related to work his company performed for the General Services Administration (GSA), announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Rod J. Rosenstein of the District of Maryland.
Moustafa Ahmed Ibrahim, 37, of Harrisonburg, Virginia, pleaded guilty today before U.S. District Judge George L. Russell III of the District of Maryland to one count of bribery. A sentencing hearing is scheduled for Sept. 9, 2016.
In his plea agreement, Ibrahim admitted that between October 2007 and November 2009, he paid cash bribes totaling at least $15,000 to two GSA building managers in the Washington, D.C., metro area. In exchange for the bribes, the two managers, both of whom have already pleaded guilty to bribery, awarded more than $200,000 in construction and maintenance work at the facilities they managed to Ibrahim’s general contracting company. Each job was for less than $3,000 and so could be billed to a government credit card without an open bidding process, and Ibrahim admitted that in exchange for the work, that he would kick back approximately 10 percent of each job to the relevant GSA employee. As part of the plea agreement, Ibrahim also agreed to forfeiture totaling $15,000.
The GSA Office of Inspector General is investigating the case. Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Kelly O. Hayes of the District of Maryland are prosecuting the case.
Former Government Contractor Pleads Guilty to BriberyRead the Press Release
Baltimore, Maryland – Moustafa Ahmed Ibrahim, 37, of Harrisonburg, Virginia pleaded guilty today to paying bribes to public officials in order to obtain government contracts for his company.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and General Services Administration Inspector General Carol F. Ochoa.
According to his plea agreement, Ibrahim was the owner of a general contracting company that performed construction and maintenance work for government agencies, including GSA, in Silver Spring, Maryland, and the Washington, D.C. area. Ibraham admitted that between October 2007 and November 2009, he paid cash bribes to two GSA Building Managers, both of whom have already pleaded guilty to bribery, in exchange for more than $200,000 in construction and maintenance work at the facilities they managed. Each job was for less than $3,000 and so could be billed to a government credit card without an open bidding process, and Ibraham admitted that in exchange for the work, he would kick back approximately 10% of each job to the relevant GSA employee. The bribes paid to the GSA officials totaled $15,000 and as part of his plea agreement, Ibrahim agreed to forfeiture in that amount.
Ibrahim faces a maximum sentence of 15 years in prison. U.S. District Judge George L. Russell III has scheduled sentencing for September 9, 2016.
United States Attorney Rod J. Rosenstein commended the GSA Office of Inspector General for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kelly O. Hayes and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section, who are prosecuting the case.
Former Fresno County Administrator Indicted for Health Care FraudRead the Press Release
FRESNO, Calif. —Christina Hernandez, 39, resident of Las Vegas, Nevada, appeared in court today and pleaded not guilty to an eleven-count indictment charging her with health care fraud and embezzlement from a health care benefits program, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Hernandez was a provider relations specialist at the Fresno County Department of Behavioral Health, which is responsible for administering mental health services to Fresno County’s Medi-Cal beneficiaries. Hernandez was responsible for reviewing and approving claim forms from private mental health care providers who provided services to Medi-Cal beneficiaries. The indictment alleges that Hernandez submitted claim forms for medical services that were never actually provided and that she subsequently cashed the reimbursement checks for her own benefit. The indictment also alleges that Hernandez stole reimbursement checks that the county issued to doctors for actual medical services provided. In total, it is alleged that Hernandez stole approximately $98,560 from the Fresno County Department of Behavioral Services.
This case was the product of an investigation by the Federal Bureau of Investigation and the Fresno County Sheriff’s Office. Assistant United States Attorney Grant B. Rabenn is prosecuting the case.
If convicted, Hernandez faces a maximum statutory penalty of ten years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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Former Director of Phoenix VA Hospital SentencedRead the Press Release
PHOENIX – Today, Sharon M. Helman, 45, of Surprise, Ariz., was sentenced by U.S. District Judge Steven P. Logan to a term of two years’ probation. Helman previously pleaded guilty to making a false statement to a government agency, a felony offense.
“It is crucial that government officials, who are entrusted with authority over taxpayer-funded government agencies, provide accurate information when completing financial disclosure reports,” stated U.S. Attorney John S. Leonardo. “Today’s outcome appropriately holds the defendant responsible for failing to report tens of thousands of dollars of gifts from a lobbyist while she was serving as the head of the Phoenix VA facility.”
“The FBI recognizes and appreciates the tremendous sacrifice and service our veterans have made for our country. With this in mind, we conducted a thorough and extensive investigation of the allegations surrounding the Phoenix VA. Our investigation revealed that the former director of the Phoenix VA Medical Center failed to report gifts as required under federal law and this outcome holds the defendant accountable,” said FBI Special Agent in Charge Michael D. Deleon.
"Financial disclosure requirements are critical to ensuring that VA is able to assess any potential conflict of interest that VA executives may have," stated Michael E. Seitler, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northwest Field Office. "In this case, Ms. Helman's failure to fully disclose her financial relationships, called into question her actions and decisions as a VA executive."
Helman was director of the Phoenix VA hospital from February 2012 to December 2014. Federal law required Helman to annually complete and file a financial disclosure report and to disclose, among many other things, gifts received during the applicable calendar year. In March 2014, Helman submitted a financial disclosure in which she falsely reported that she received no gifts during 2013. That report was false because during 2013 Helman had, in fact, received gifts totaling more than $19,300. The gifts included an automobile, a check for $5,000, concert tickets, and two round-trip airline tickets.
Helman also filed a false report for 2012, failing to report four gifts of a total value of more than $2,000. Furthermore, although she did not file a financial disclosure report for 2014, Helman received six gifts valued at more than $27,700 between January 2 and July 1 of that year.
All of the gifts were from a former high-level VA employee who once served as Helman’s supervisor. During 2012-2014, that person was an executive consultant, and later vice president, of a consulting and lobbying firm that assisted companies in expanding their business with the VA. Had Helman properly reported the gifts and their source, the VA would have done a conflict-of-interest analysis to determine whether her acceptance of the gifts was permitted under applicable laws and regulations.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Department of Veterans Affairs-Office of the Inspector General. The prosecution was handled by Frank T. Galati, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-00245-PHX-SPL
RELEASE NUMBER: 2016-046_Helman
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former Controller of Company in Lenexa Sentenced for $135,000 EmbezzlementRead the Press Release
KANSAS CITY, KAN. – The former controller of a company in Lenexa was sentenced Monday to 15 months in federal prison for embezzling more than $135,000, Acting U.S. Attorney Tom Beall said.
Alan Wenk, 43, pleaded guilty to two counts of bank fraud. In his plea, he admitted the crimes occurred while he worked as the regional controller and corporate accounts payable manager for Performance Contracting Group, Inc. (PCG), headquartered in Lenexa. The company, with 50 offices throughout the United States, is made up of several companies that provide a wide range of services and products including demolition; lead and asbestos abatement; thermal, fire and acoustical insulation; and recycling processes.
Wenk caused PCG to issue fraudulent checks for payment to him and to business entities he controlled. In all, he fraudulently received 20 checks totaling approximately $135,560.
Beall commended the U.S. Postal Inspection Service and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Former Connecticut Resident Sentenced to Prison for Defrauding Federal Energy ProgramRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WALTER CRAIG BRADWAY, 65, formerly of Glastonbury and currently residing in Holmes Beach, Fla., was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 13 months of imprisonment, followed by three years of supervised release, for fraudulently obtaining more than $9 million in economic stimulus program funds in 2010 and 2011. Judge Thompson also ordered BRADWAY to perform 600 hours of community service.
According to court documents and statements made in court, in 2009, Congress passed the American Recovery and Reinvestment Act, which included provisions for various economic stimulus programs funded in part or in whole by the United States. These programs included the Specified Energy Property Program administered by the U.S. Department of the Treasury, which was referred to as the “Section 1603 program.” The Section 1603 program, which was administered by the National Renewable Energy Laboratory (“NREL”) in Golden, Colorado, provided funds to reimburse eligible applicants a portion of their costs for installing specific energy properties, including the installation of solar panel projects.
Applicants seeking reimbursement for their energy projects were required to submit supporting documentation including engineer-certified design plans for the project, vendor invoices reflecting the costs of installing the energy property and, for projects that were connected to an existing public utility, an interconnection agreement with that utility. Under the rules of the Section 1603 program, reimbursements could not be made until the energy property in question was completed and placed in service. The Department of the Treasury typically reimbursed 30 percent of the cost of approved Section 1603 applications.
BRADWAY was the owner and president of Glastonbury-based DataComm Services LLC (“DCS”). In 2010 and 2011, BRADWAY, through DCS, submitted more than 300 applications for Section 1603 reimbursements for solar panel projects in Connecticut, Massachusetts, Florida, South Carolina, Pennsylvania, Rhode Island, Maine and California. Many of these applications were fraudulent, however, because BRADWAY represented that the project was installed and in service when, in fact, the project had not been completed or even begun. BRADWAY also overstated the size and cost of projects in order to increase the reimbursement amount. In connection with many applications, BRADWAY submitted false documentation, including falsified engineer reports and fake interconnection agreements with local utility companies. As a result of these fraudulent applications, BRADWAY received approximately $9,026,637 in funds that he was not entitled to.
BRADWAY voluntary disclosed his criminal conduct to the Department of Treasury.
Judge Thompson ordered BRADWAY to pay restitution in the amount of $8,935,266.50, which accounts for approximately $91,000 that BRADWAY has paid to date.
On February 1, 2016, BRADWAY pleaded guilty to one count of wire fraud.
This case was investigated by the U.S. Department of Treasury – Office of Inspector General, and was prosecuted by Assistant U.S. Attorney Sarah Karwan.
Former CEO of Virginia Regional Transit Pleads Guilty to BriberyRead the Press Release
ALEXANDRIA, Va. – Mark W. McGregor, 63, of Charles Town, West Virginia, pleaded guilty today to bribery concerning federal program funds for his role in a bribery scheme that caused $380,000 in losses to the U.S. government.
According to the statement of facts filed with the plea agreement, McGregor served as the chief executive officer of Virginia Regional Transit (VRT), a not for profit 501(c)(3) organization that provides transportation services throughout Northern Virginia. VRT is funded by a combination of federal, state and local grants, including from the U.S. Department of Transportation. McGregor engaged in a bribe scheme with co-conspirator Thomas Ahalt, then President of Mobile Auto Truck Repair (Mobile Auto), an automotive repair business in Purcellville, since 2007. Mobile Auto provided automotive repair services to VRT.
According to plea papers, from January 2007 through December 2015, Mobile Auto submitted—and McGregor caused to be approved—false invoices for additional weekly labor charges. McGregor approved and VRT paid to Mobile Auto approximately $380,000 in fraudulent additional weekly labor charges. A portion of the monies VRT paid to Mobile Auto were federal program funds originating from the Federal Transit Administration, an agency within the U.S. Department of Transportation. In exchange, McGregor received regular kickback payments from Ahalt and others associated with Mobile Auto totaling half of the additional weekly labor charges. In total, McGregor received approximately $190,000 in kickback payments.
On April 6, 2016, Ahalt pleaded guilty to conspiracy to commit bribery concerning federal program funds for his role in the scheme. He is scheduled to be sentenced on June 2, and McGregor is scheduled to be sentenced on September 9.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Floyd Sherman, Regional Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General, made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorney Uzo Asonye is prosecuting the case.
Individuals with information related to public corruption in Northern Virginia should call the FBI public corruption hotline at 703-686-6225 or e-mail [email protected].
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-113.
Federal Court Orders Justice Department Desegregation Plan for Cleveland, Mississippi, SchoolsRead the Press Release
Ruling Comes Nearly 60 Years After the Supreme Court’s Decision in Brown v. Board of Education
Late Friday, following a five-decade-long legal battle to desegregate schools in Cleveland, Mississippi, the U.S. District Court for the Northern District of Mississippi ordered the Cleveland School District to consolidate its secondary schools. The court rejected as unconstitutional two alternatives proposed by the school district, agreeing with the Justice Department that the only way to achieve desegregation is by consolidating Cleveland’s high schools and middle schools.
“Six decades after the Supreme Court in Brown v. Board of Education declared that ‘separate but equal has no place’ in public schools, this decision serves as a reminder to districts that delaying desegregation obligations is both unacceptable and unconstitutional,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This victory creates new opportunities for the children of Cleveland to learn, play and thrive together. The court’s ruling will result in the immediate and effective desegregation of the district’s middle school and high school program for the first time in the district’s more than century-long history.”
In the 96-page opinion, the court made clear that the school district operated an inadequate dual system and failed to achieve the greatest degree of desegregation possible given the circumstances. The court concluded the opinion by noting that “the delay in desegregation has deprived generations of students of the constitutionally-guaranteed right of an integrated education. Although no court order can right these wrongs, it is the duty of the[d]istrict to ensure that not one more student suffers under this burden.”
Under the Justice Department’s plan approved by the court – which was developed in consultation with experts in school desegregation, school facilities, school financing and parent and community engagement – the district will consolidate the virtually all-black D.M. Smith Middle School with the historically white Margaret Green Junior High School. The district will also consolidate the virtually all-black East Side High School with the historically white Cleveland High School. Further, the district will review its existing educational programs and identify new programs for the consolidated schools, address staffing considerations and perform necessary maintenance and upgrades to facilities.
The ruling follows years of collaborative work with the local community and private plaintiffs in this case. Community members – from parents and faith leaders, to former teachers and coaches – testified in court in 2012 and 2015. They described the stigma long associated with the district’s black schools and the sense among black children in the community that white children attended better schools. During last May’s hearing, they testified that consolidation was the only way to bridge the divide and expressed a willingness to take the steps, however difficult, to secure equal educational opportunities for their children and grandchildren. Parents of all racial backgrounds testified that they want their children to learn in a diverse environment to prepare them to encounter the world today.
The approved plan commits the district to a path of full engagement with students, parents, educators and community stakeholders in implementing consolidation. Cleveland is a small Mississippi-Delta city of 12,000 residents, divided by railroad tracks that separate east from west as well as black from white. As one community member testified, “[w]e can break down this wall of racism that divides us and keeps us separated, and we could create a new culture in our school system that’s going to unite us and unite our whole city.” The Justice Department shares the sentiments of the court that “the[d]istrict’s commitment to the education of its children will no doubt ensure that the gem that is Cleveland, along with its surrounding areas, only shine brighter as the shadows of segregation recede.”
The Civil Rights Division works to enforce desegregation orders in school districts formerly segregated by law, which have not yet fulfilled their legal obligation to eliminate segregation “root and branch.” The division continues to prioritize enforcement of court orders addressing segregation in our nation’s schools to ensure that all children can access the building blocks of educational success.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Northern District of Mississippi Opinion and Order in Cleveland Case
Duell Pleads Guilty to PerjuryRead the Press Release
ALBANY, NEW YORK – Jennica Duell, age 28, of Schenectady, New York, pled guilty today to three counts of making false declarations before a federal grand jury, announced United States Attorney Richard S. Hartunian and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives New York Field Division. Sentencing is scheduled for September 12, 2016 at 9:00 a.m. in Albany, New York before Senior United States District Court Judge Gary L. Sharpe.
As part of her guilty plea, Duell admitted that she made irreconcilably contradictory statements under oath before a grand jury conducting an investigation into the May 2, 2013 arson at 438 Hulett Street in Schenectady, New York, which caused the deaths of David Terry and three young children, seriously injured another child, and destroyed the building and the personal property inside. Duell admitted that, on May 24, 2013, she testified regarding specific events that occurred on May 1-2, 2013, and then, on January 31, 2014, gave irreconcilably contradictory testimony about those events. The events included declarations about Duell and others traveling from Saratoga Springs to 438 Hulett Street, Duell and others getting gasoline, and how the fire at 438 Hulett Street was started, and by whom.
Duell admitted that:
- On May 24, 2013, Duell’s testimony about the events of May 2, 2013 included the following: Sometime after 3:00 a.m., she and three men traveled from Saratoga Springs to Schenectady so one of the men could confront David Terry so Duell and the man could be together. They stopped at a gas station and filled up a gas can. Then they went to the house at 438 Hulett Street, where the man grabbed the gas can and poured some gas into a water bottle, walked over to the house, and poured gas in the hallway and up the stairs. Duell asked what he was doing, said "don’t do this," and "my babies are in there," and the man said "they are not going to get hurt." After he lit the fire, Duell "saw the flames" and "wanted to get in there . . . but he wouldn’t let me." Before setting the fire, the man said to Duell, "do you want to be free?" Duell said "yes."
- On June 4, 2013, the man was charged by criminal complaint with the arson destruction of the building at 438 Hulett Street, based upon sworn statements by unnamed witnesses reflecting their personal knowledge that he and three others went from Saratoga Springs to Hulett Street, stopping to get gasoline. When they arrived, the man poured gasoline into a clear bottle, walked to the building at 438 Hulett Street, distributed gasoline around, and lit the fire.
- On January 31, 2014, Duell testified that her prior testimony regarding what happened on May 1-2, 2013 was untrue. On February 7, 2014, the criminal complaint charging the man was dismissed without prejudice.
Duell faces a maximum sentence of imprisonment of five years and a $250,000 fine on each count, for a total term of imprisonment of fifteen years, and total fine of $750,000, and a term of supervised release of up to three years.
United States Attorney Richard S. Hartunian said: "Perjury is a serious affront to the integrity of our criminal justice system. It was important to resolve these charges, but we remain completely committed to securing justice for the victims of the arson homicide and their families."
The charges resulted from an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives of the U.S. Department of Justice, the Schenectady Police Department, and the Schenectady Fire Department. The case is being prosecuted by First Assistant U. S. Attorney Grant C. Jaquith and Assistant United States Attorney Wayne A. Myers.
Further questions or inquiries may be directed to First Assistant U.S. Attorney Jaquith at 518-431-0247.
The ATF is offering a reward of up to $40,000 for information leading to the arrest and conviction of the person(s) responsible for the arson that occurred on May 2, 2013 at 438 Hulett Street in Schenectady, resulting in personal injury and death. All information will be treated confidentially and the callers will remain anonymous if requested. Anyone having information should call the ATF Albany Field Office at 518-431-4182, or email [email protected].
Drug Supplier and a Distributor Sentenced to Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Greg Milden, age 41, of Cliffside Park, New Jersey, today to 10 years in prison followed by five years of supervised release for conspiring to distribute and possession with intent to distribute controlled substances. Judge Chasanow also ordered Milden to forfeit $325,743, proceeds of his drug trafficking activities.
Judge Chasanow also sentenced Frederick Davis, age 32, of Gaithersburg, Maryland today to five years in prison followed by four years of supervised release for conspiring to distribute and possession with intent to distribute cocaine base (crack). Judge Chasanow also ordered Davis to forfeit $1,500, proceeds of his drug trafficking activities.
The sentences were 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 J. Thomas Manger of the Montgomery County Police Department (MCPD); Special Agent in Charge Darrell Gilliard of the Naval Criminal Investigative Service (NCIS), Washington Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; Chief T. N. Treschuk of the Rockville City Police Department; Captain Timothy Lloyd of the Hackensack (New Jersey) Police Department; and Montgomery County State’s Attorney John McCarthy.
According to Milden’s plea agreement, from February to June 8, 2015, Milden supplied a co-conspirator with cocaine in Brooklyn, New York, who brought the cocaine to Montgomery County, Maryland for redistribution. Back in Maryland, some of the cocaine was “cooked” into crack before being sold to local distributors.
On May 14, 2015 near Milden’s residence, law enforcement saw Milden place a backpack in the trunk of a car occupied by two individuals. After the car left, the officers stopped the car and recovered $15,703 from the two occupants. One of the occupants consented to a search of her residence in Hackensack, New Jersey where Milden had visited earlier that day. There, law enforcement seized $154,985, most of which was found in shoe boxes, neatly organized by denominations and banded by different colored rubber bands. An industrial-sized roll of plastic wrap commonly used to package kilogram quantities of cocaine was found in the bedroom. Milden used this residence as a stash house to store and package drugs and drug proceeds.
Law enforcement monitored several calls and texts during which Milden set up drug transactions. On June 8, 2015, law enforcement executed a search warrant at Milden’s residence and seized $25,850 in drug trafficking proceeds. Officers also recovered drug ledgers describing Milden’s supply of cocaine and marijuana to other distributors. During the course of the conspiracy, Milden was responsible for the distribution of between five and 15 kilograms of cocaine.
According to Davis’ plea agreement, from February to June 8, 2015, Davis obtained crack cocaine and heroin from a co-conspirator who Milden had supplied, and re-distributed the drugs in Gaithersburg to customers and distributors. After monitoring drug transactions conducted by Davis, law enforcement executed a search warrant at his home on June 8 and seized drug paraphernalia including digital scales and gel capsules, as well as ammunition. During the course of the conspiracy, Davis was responsible for distributing between 28 and 112 grams of crack cocaine.
United States Attorney Rod J. Rosenstein praised the FBI, the Montgomery County Police Department, NCIS, Prince George’s County Police Department and the Rockville and Hackensack (New Jersey) Police Departments for their work in the investigation. Mr. Rosenstein commended the Bergen County State’s Attorney’s Office and Montgomery County State’s Attorney’s Office for their assistance, and thanked Assistant United States Attorneys Daniel C. Gardner and Joseph R. Baldwin, who prosecuted this Organized Crime Drug Enforcement Task Force case.
District Heights Men Charged for Conspiring to Commit Sex Trafficking of a MinorRead the Press Release
Greenbelt, Maryland – A federal criminal complaint has been filed charging Raleigh McClam, age 36, and Savion Sharpe, age 22, both of District Heights, Maryland, with conspiracy to commit sex trafficking of a minor. The complaint was filed on May 5, 2016, and was unsealed on May 13, 2016, upon the arrest of McClam. At a detention hearing today U.S. Magistrate Judge Timothy J. Sullivan ordered that McClam be detained pending trial. Sharpe is detained on related state charges. No federal court appearance has been scheduled for Sharpe.
The charges were 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; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to the affidavit filed in support of the criminal complaint, on December 29, 2015, officers with the Montgomery County Police Department received a 911 call from a female stating that she was a prostitute and was in fear of a man who was outside her Rockville motel room. The caller described the man and stated she was staying in room 257. When officers arrived at the motel they saw McClam and Sharpe sitting in a vehicle in the motel parking lot. Sharpe matched the description supplied by the 911 caller. Sharpe and McClam told the officers that they were guests at the motel. The officers knocked repeatedly on the door of room 257, which was eventually answered by a female (Victim 1). The female denied that she was engaged in prostitution and claimed that Sharpe was her boyfriend, but was unable to provide officers with his name.
Subsequent investigation revealed that Victim 1 was 16 year old. During interviews with Victim 1, she told officers that she met Sharpe in December 2015, when he approached her about working for him as a prostitute. Victim 1 stated that McClam was Sharpe’s manager. According to the affidavit, Victim 1 told officers that McClam drove Sharpe, Victim 1 and another woman to the Rockville motel on the evening of December 28, 2015, and had sex with Victim 1 before she saw any customers, as a kind of “test.” Victim 1 also stated that Sharpe had provided Victim 1 with a cell phone to communicate with him and investigators recovered the phone. A forensic analysis revealed text messages between Sharpe and Victim 1, including messages on December 29, 2015, when police were at the motel in Rockville.
Law enforcement also located multiple online advertisements for prostitution services in the Rockville, Montgomery County, Maryland area, associated with an email account allegedly used by McClam. According to the affidavit, McClam also had a social media account. An undercover officer contacted McClam through that account. During their conversations, McClam indicated he ran an escort service in Rockville and elsewhere and had four girls “working for him.” After providing the undercover with his phone number, which was also found in Victim 1’s phone, the undercover investigator and McClam exchanged text messages and arranged to meet at a restaurant. At the time of the meeting, McClam was arrested a short distance from the restaurant in his vehicle. The vehicle matched the description provided by Victim 1 of the vehicle McClam used to drive her on December 28, 2015, as well as the vehicle occupied by McClam and Sharpe outside the motel on December 29, 2015.
If convicted, McClam and Sharpe each face a maximum of life in prison for conspiracy to commit sex trafficking of a minor.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended FBI and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kelly O. Hayes and Special Assistant U.S. Attorney Francesca Liquori, of the U.S. Justice Department‘s Organized Crime and Gang Section, who are prosecuting the case.
Detroit pill dealer sentenced to four years in prison for Federal drug crimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit drug dealer was sentenced to four years in federal prison for selling pain pills, announced Acting United States Attorney Carol Casto. Derrick Bernard Pritchett, 32, previously pleaded guilty to distribution of oxycodone and alprazolam.
On August 10, 2015, a confidential informant working with the DEA Task Force contacted Pritchett to arrange a drug deal. Pritchett admitted that he met the informant on the 1200 block of Jackson Avenue in Huntington and sold the informant nine 30 mg oxycodone pills and one 2 mg alprazolam pill.
The investigation of Pritchett was conducted by the DEA Task Force. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Defendants Sentenced in Million-Dollar Tax Fraud SchemeRead the Press Release
ATLANTA – Four defendants have been sentenced to federal prison for running a tax fraud scheme that involved using an ancestry/genealogy website to find personal information of victims and then file phony tax returns in their names.
“Identity thieves continue to find innovative ways to exploit the many beneficial aspects of the Internet to harvest information and steal money,” said U.S. Attorney John A. Horn. “These defendants were not seeking ancestors. Instead, they collected the Social Security Numbers of deceased people and filed over $1 million in bogus tax returns.”
“Sophisticated stolen identity refund fraud schemes have the potential to harm many taxpayers and put large amounts of public money at risk,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Shawuana Sanders and her co-conspirators demonstrated a blatant disregard of the integrity of the United States tax system and caused immeasurable hardship to innocent victims. We, along with the United States Attorney's Office, continue to do our part in protecting the sanctity and integrity of the tax system and those individuals whose identities were stolen, as well as recovering any monetary loss against the U.S. Treasury.”
According to U.S. Attorney Horn, the charges and other information presented in court: Four defendants conspired together in a million-dollar tax fraud and identity theft scheme. Defendant Shawuana Sanders orchestrated the scheme. She and defendant Monica Person obtained personal identity information, primarily from an ancestry/genealogy website, but also from other sources. They then filed fraudulent tax returns with the IRS using the names and Social Security numbers found on the website. Many of the victims were deceased at the time of filing.
The fraudulent tax returns claimed false income amounts and dependent information, including dependents whose names were also taken from the ancestry/genealogy website. Sanders and Person had the tax refund checks mailed to various addresses associated with them. Sanders filed over $1.1 million in fraudulent tax returns, and Person filed over $139,000 in fraudulent tax returns, as part of the scheme.
Defendant Tania Zelada worked as a supervisory teller at a bank in Columbus, Georgia. At Sanders’ direction, Zelada cashed 127 fraudulent checks from the scheme worth over $463,000. Zelada received several hundred dollars for each check she cashed.
Sanders’s ex-husband, Jason Sanders, was also involved in the scheme. He mailed some of the fraudulent returns to the IRS, and on occasion shuttled cash and checks between Sanders and Zelada. In addition, before the ancestry/genealogy website scheme, while working as a correctional officer at a jail in Muscogee County, Jason Sanders stole the personal information of inmates and gave it to Shawuana Sanders for her to use in filing fraudulent tax returns in 2008.
United States District Judge Timothy C. Batten, Sr. sentenced the defendants as follows:
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On May 12, 2016, Shawuana N. Sanders, 40, of Kennesaw, Georgia, was sentenced to five years, two months in prison, to be followed by three years of supervised release, and ordered to pay $845,809.76 in restitution.Shawuana Sanders was convicted of conspiracy and aggravated identity in February 2016 after pleading guilty.
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On May 12, 2016, Monica L. Person, 37, of Columbus, Georgia, was sentenced to two years, three months in prison, to be followed by three years of supervised release, and ordered to pay $87,112.65 in restitution.Person was convicted of conspiracy and aggravated identity theft in January 2016 after pleading guilty.
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On April 14, 2016, Tania M. Zelada, 26, of Fortson, Georgia, was sentenced to one year, three months in prison, to be followed by three years of supervised release, and ordered to pay $463,113.02 in restitution.Zelada was convicted of conspiracy in August 2015 after pleading guilty.
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On March 28, 2016, Jason L. Sanders, 33, of Columbus, Georgia, was sentenced to one year, six months in prison, to be followed by three years of supervised release, and ordered to pay $845,809.76 in restitution.Jason Sanders was convicted of conspiracy in August 2015 after pleading guilty.
This case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation.
Assistant United States Attorney Stephen H. McClain prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
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Dallas Neighbors Sentenced on ID Theft and Fraud Conspiracy ConvictionsRead the Press Release
DALLAS — Two Dallas residents have been sentenced for their roles in an ID theft and mail and wire fraud scheme they ran in 2011 and 2012, announced U.S. Attorney John Parker of the Northern District of Texas.
Christain Cowan Felder, 33, was sentenced by U.S. District Judge Jane J. Boyle on Friday afternoon to serve a total of 75 months in federal prison. Last month, her co-conspirator and neighbor, Lawonka King, 41, was sentenced by Judge Boyle to serve a total of 65 months in federal prison. Judge Boyle ordered each to pay $227,240 in restitution, jointly and severally. Each pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud and one count of aggravated identity theft.
According to documents filed in the case, from approximately September 2011 through November 2012, King worked at New York Life Insurance Company where she processed policy applications submitted by the company’s field agents. Those applications contained personal identifying information of the New York Life customers and often financial information, such as bank account information.
During that time, Felder and King conspired with each other and others to misappropriate that information and use it to fraudulently acquire goods and money for their mutual benefit. King provided Felder with policy applications and other customer paperwork, and Felder would use that information to print counterfeit checks drawn on the identity victim’s bank account. Felder then would take the counterfeit checks to Wal-Mart stores where other co-conspirators were employed as cashiers. To cash the counterfeit checks, the co-conspirators scanned the counterfeit checks, often several at once, through a TeleCheck terminal. Felder would then obtain Wal-Mart gift cards and share the proceeds with King and other co-conspirators.
Felder also used the personal identifying information King provided to establish at least nine online accounts at EBay and 11 at PayPal to acquire household items and jewelry. Felder completed 337 online transactions using those accounts, and many of the items purchased were delivered to the defendants’ addresses by Federal Express.
On November 21, 2012, officers with the Lancaster Police Department executed a search warrant at Felder’s residence and seized 118 New York Life policy applications that King had given her. In addition, more than 200 counterfeit checks, bearing the personal identifying information of New York Life clients, were found. Blank check stock was located in a printer’s feeder.
On November 30, 2012, officers with the Lancaster Police Department executed a search warrant at King’s residence and located 14 New York Life policy applications hidden under the cushion of a sofa. Law enforcement also located Wal-Mart gift cards, bank statements and credit cards in names other than King.
The Lancaster Police Department and the U.S. Secret Service investigated the case. Assistant U.S. Attorney Chris Stokes was in charge of the prosecution.
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Dallas Area Man Sentenced to 10 Years in Federal Prison on Multiple Child Pornography ConvictionsRead the Press Release
DALLAS — A Dallas area man, Jamie Jack Collins, 40, was sentenced this afternoon by U.S. District Judge Sam A. Lindsay to 10 years in federal prison, following his guilty plea in October 2015 to an indictment charging two counts of receipt of child pornography and one count of possession of prepubescent child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, on approximately April 28, 2014, Collins “chatted” with another person using the social media application, “Kik,” and during that chat, the person with whom he was chatting sent Collins images of child pornography. On approximately May 24, 2014, Collins again used Kik to “chat” with another person, and that person also sent Collins images of child pornography.
On August 15, 2014, according to documents filed in the case, Collins allowed law enforcement to review his cell phone for the presence of child pornography. Law enforcement located images of child pornography involving prepubescent minors on his phone.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) conducted the investigation. Assistant U.S. Attorney Camille Sparks prosecuted the case.
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