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12 May 2016
Tennessee Resident Admits Defrauding Contributors to Sandy Hook-Related CharityRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that ROBERT TERRY BRUCE, 35, of Nashville, Tenn., pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to one count of wire fraud stemming from a scheme to defraud contributors to an organization he established after the December 14, 2012 school shootings in Newtown.
According to court documents and statements made in court, BRUCE founded the 26.4.26 Foundation, an organization that began soliciting charitable donations in the aftermath of the December 14, 2012 school shootings in Sandy Hook, Connecticut for a variety of purposes, including “to help raise funds for increased school safety, families of victims, memorials to teacher heroes, awareness and prevention in schools across America.”
In early 2013, BRUCE solicited and received contributions to 26.4.26 in connection with a charity athletic event in Gilford, N.H., called the Schools 4 Schools run. BRUCE promoted the event via social media, and solicited contributions to 26.4.26 through an online PayPal account by representing to potential donors that the purpose of the event was “to help raise funds for increased school safety, families of victims, memorials to teacher heroes, awareness and prevention in schools across America.” BRUCE further represented to potential donors that “all proceeds will go to the 26.4.26 Foundation.”
Also in early 2013, BRUCE solicited contributions to 26.4.26 in connection with a charity athletic event in Tennessee called CrossFit Cares. As he had in the New Hampshire event, BRUCE promoted the event via social media, and solicited contributions to 26.4.26 through PayPal by representing to potential donors that “all proceeds will go to the 26.4.26 Foundation” and that the “mission of 26.4.26 is to provide funding for the families of victims, memorials for teacher heroes and to increase safety in schools across the country.”
Rather than using the funds raised to support his purported mission, BRUCE used most of the funds to enrich himself and to support his personal training business. Several of the victim donors are from Connecticut.
Judge Thompson scheduled sentencing for August 30, 2016, at which time BRUCE faces a maximum term of imprisonment of 20 years.
BRUCE has been released on a $20,000 bond since his arrest on February 13, 2015.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Susan Wines. U.S. Attorney Daly also acknowledged the critical assistance provided by the U.S. Attorney’s Office for the Middle District of Tennessee.
Tennessee Man Sentenced for Role in Methamphetamine ConspiracyRead the Press Release
ROANOKE, VIRGINIA – A Tennessee man, who previously pled guilty to being part of conspiracy to distribute methamphetamine, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick Jr. announced.
Jesus Silverstre Santos Jr., 26, of McMinnville, Tennessee, previously pled guilty to one count of conspiring to possess with the intent to distribute and to distribute 50 grams or more of methamphetamine. Today in District Court, Santos was sentenced to 49 months in federal prison.
“We will continue to prosecute individuals who distribute these types of addictive and dangerous substances in our communities,” United States Attorney John P. Fishwick Jr. said today.
According to evidence presented at previous hearings by Assistant United States Attorney Ashley B. Neese, Santos, and other members of the conspiracy, traveled from Tennessee to the West Coast for the sole purpose of picking up methamphetamine to transport it back to Southwest Virginia to be distributed in Virginia, Tennessee and the surrounding areas.
The investigation of the case was conducted by, the Department of Homeland Security, the Drug Enforcement Administration, the Virginia State Police, the Wythe County Sheriff’s Office, the Pulaski County Sheriff’s Office, the Town of Pulaski Police Department, the Town of Dublin Police Department and the New Mexico State Police. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Stilwell Woman Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that, AMBER CLAPHAN, age 33, of Stilwell, Oklahoma, pled guilty to Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A):
The Superseding Indictment filed on March 8, 2016, alleges that from in or about the end of 2013 and continuing until on or about January 27, 2016, in the Eastern District of Oklahoma, the defendant, did willfully and knowingly combine, conspire, confederate and agree together, and with other persons known and unknown, to Possess with Intent to Distribute and the Distribution of 500 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The Investigation revealed that Cody McClendon, an Indian Brotherhood (IBH) gang member, currently an inmate with the Oklahoma Department of Corrections in McAlester, Oklahoma was utilizing a contraband cellular phone that he kept hidden on his person and inside his prison cell to facilitate the sale and distribution of methamphetamine. McClendon was doing this by using the cellular phone to communicate with co-conspirators via audio phone calls, text messages, and by communicating on the social media website Facebook. CLAPHAN was a methamphetamine distributor as well as a drug and money courier for the organization.
The charges arose from a joint investigation by the Oklahoma Bureau of Narcotics, the Tahlequah Police Department, the Muskogee Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the Drug Enforcement Administration. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
The statutory range of punishment is not less than 10 years and not more than life imprisonment up to a $10,000,000.00 fine or both.
Assistant United States Attorney Shannon Henson represented the United States.
Statement of U.S. Attorney Preet Bharara on Sentencing of Former New York State Senate Majority Leader Dean SkelosRead the Press Release
“In the span of just 16 months, we have seen the arrest, prosecution, conviction, and sentencing of both leaders of the New York State legislature. The nearly simultaneous convictions of Sheldon Silver and Dean Skelos, whose corruption crimes were laid bare during fair and public trials, have no precedent. And while Silver and Skelos deserve their prison sentences, the people of New York deserve better. These cases show – and history teaches – that the most effective corruption investigations are those that are truly independent and not in danger of either interference or premature shutdown. That will continue to be our guiding principle in exposing and punishing corruption throughout New York. I thank the career investigators and prosecutors in my office, as well as FBI Assistant Director Diego Rodriguez and his entire team for their tremendous work in these two landmark prosecutions. All New Yorkers who believe in clean government owe them an enormous debt of gratitude.”
Sioux City Woman to Federal Prison for Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine was sentenced May 10, 2016, to more than seven years in federal prison.
Brooke Franke, 37, from Sioux City, Iowa, received the prison term after a February 18, 2016, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Franke admitted her involvement in a conspiracy that distributed more than 150 grams of actual (pure) methamphetamine from 2014 through July 2015 in the Sioux City, Iowa area. During Franke’s arrest, law enforcement executed a search warrant on Franke’s person (body cavity search) and seized approximately four ounces of methamphetamine.
Franke was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Franke was sentenced to 90 months’ imprisonment. A special assessment of $100 was imposed. She must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
Franke is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-4052.
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Sentencings for May 6 - May 11, 2016Read the Press Release
Martin James Goggles, 23, of Riverton, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 11, 2016, for assault with a dangerous weapon with intent to do bodily harm. Goggles was arrested in Fort Washakie, Wyoming. He received 28 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $396.26. This case was investigated by the Bureau of Indian Affairs.
Lily Jenny Washington, 46, of Fort Washakie, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 10, 2016, for assault resulting in serious bodily injury. Washington was arrested in Fort Washakie, Wyoming. She received 34 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Federal Bureau of Investigation.
Alonzo Cecil Burkes, 59, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 9, 2016, for conspiracy to distribute 500 grams or more of methamphetamine. Burkes was arrested in Laramie, Wyoming. He received 140 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $2,500.00. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation, the U.S. Drug Enforcement Administration and the Internal Revenue Service. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Christopher Allen Ricketson, 33, of Las Vegas, Nevada, was sentenced by Federal District Court Judge Alan B. Johnson on May 6, 2016, for possession of child pornography. Ricketson was arrested in Uinta County, Wyoming. He received 88 months imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $4,000.00. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Rochester Man Arrested, Charged with Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Thomas Hopkins, 24, of Rochester, NY, was arrested and charged by criminal complaint with production of child pornography. The charge carries a minimum sentence of 15 years in prison, a maximum of 30 years and a fine of up to $250,000.Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, Hopkins surreptitiously recorded a 13 year old child naked while she was in the bathroom on multiple occasions. The defendant used his iPod to video record the child through a hole in the bathroom wall, and then emailed the sexually explicit videos to himself.
Hopkins made an initial appearance today before U.S. Magistrate Judge Jonathan Feldman. The defendant is being held pending a detention hearing on May 18, 2016 at 1:00 p.m.
The criminal complaint is the culmination of an investigation by Officers of the Rochester Police Department, under the direction of Chief Michael Ciminelli; and Special Agents of the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Adam S. Cohen. The task force includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Rochester Couple Charged with Sex TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Frederick Evans, 38, and LaShara Evans, 36, both of Rochester, NY, were charged by criminal complaint with sex trafficking with force, fraud or coercion and sex trafficking of a minor. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of life and a $250,000 fine.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the complaint, the investigation began when law enforcement spoke with an individual who indicated that she had been trafficked by Frederick Evans, and his now wife, “Shar”, who she later identified as LaShara Evans, since the age of 15. The witness told law enforcement officers she first met Frederick Evans at the age of 15 and he got her involved in prostitution adding he advertised her on Backpage.com. The witness further stated that she and “Shar” were engaged in prostitution activities in Rochester, Syracuse, Watertown and Buffalo. The money would be turned over to Frederick Evans or LaShara Evans.
The witness also disclosed the name of other individuals who were being prostituted by Frederick Evans. A second witness confirmed that when she was 15 or 16 years old, she was engaged in prostitution with the first witness and her “people” in Binghamton and eventually, the entire group was stopped by a New York State Trooper. A review of police records revealed that a NYS Trooper had stopped Frederick Evans, LaShara Medina (the maiden name of LaShara Evans), and the first and second witnesses in December 2011. A third witness indicated that she too had been prostituting for Frederick Evans, starting when she was 17 years old. The third witness indicated Frederick Evans took her to Louisiana and was “abusive.”
The defendants made an initial appearance before U.S. Magistrate Judge Jonathan W. Feldman. LaShara Evans was released on conditions. Frederick Evans is being held pending a detention hearing scheduled for May 16, 2016.
The investigation is the culmination of an investigation on the part of the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen, Special Agent in Charge and the Monroe County Sheriff’s Office under the direction of Sheriff Patrick O’Flynn and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Recruiter Admits Guilt in Smuggling Death of Two Migrants in Trunk at San Diego-Tijuana BorderRead the Press Release
Assistant U.S. Attorneys Patrick J. Bumatay (619) 546-8450 and Michael Wheat (619) 546-8437
NEWS RELEASE SUMMARY – May 12, 2016
SAN DIEGO – Eduard Ervemac Saavedra pleaded guilty in federal court today to charges resulting from the deaths of two unauthorized immigrants who perished in the trunk of a car at the San Ysidro Port of Entry in August 2014.
As part of the plea agreement, Saavedra, a citizen of Peru, admitted to enticing Nicholas George Zakov, 43, to smuggle undocumented aliens into the United States with the prospect of $3,500 cash. After recruiting Zakov, on the morning of August 12, 2014, Saavedra arranged for two Mexican citizens, Tarcisio Casas-Blanco and Jose Aurelio Quiroz-Casas, to be hidden in the trunk of Zakov’s Dodge Challenger in Tijuana, Mexico.
Saavedra then directed Zakov to enter the United States through the San Ysidro Port of Entry with Casas-Blanco and Quiroz-Casas remaining in the trunk, exposing them to rising temperatures with little ventilation. U.S. Customs and Border Protection officers later discovered Casas-Blanco and Quiroz-Casas unresponsive inside the Challenger’s trunk. Medical attention was immediately sought for the two, but they died a short while later of hyperthermia and mechanical asphyxiation.
Zakov, a U.S. citizen, previously pleaded guilty to alien smuggling charges for his role in the deaths of Casas-Blanco and Quiroz-Casas and was sentenced to 84 months in prison by U.S. District Judge Anthony J. Battaglia.
The investigation and arrest of Saavedra was the result of the collaboration of Homeland Security Investigations, U.S. Customs and Border Protection, San Diego Police Department, and the Baja California State Preventive Police Department.
Saavedra pleaded guilty to two counts of encouraging and inducing illegal aliens resulting in death and two counts of bringing illegal aliens into the United States for financial gain. Saavedra faces up to life imprisonment, a mandatory minimum sentence of three years in prison, and a $250,000 fine. Saavedra is scheduled to be sentenced by Judge Battaglia on July 25, 2016 at 11 a.m.
DEFENDANT Criminal Case No. 14CR3066-AJB
Eduard Ervemac Saavedra Age: 44 Tijuana, Mexico
a.k.a. Edward Saavedra
a.k.a. Reenzo Saavedra-Cormeyo
SUMMARY OF CHARGES
Counts 1 and 2: Encouraging and Inducing Illegal Aliens, Aiding and Abetting, Resulting in Death, 8 U.S.C. §1324(a)(1)(A)(iv), (v)(II), and (a)(1)(B)(iv)
Counts 3 and 4: Bringing in Illegal Aliens for Financial Gain, Aiding and Abetting 8 U.S.C. §1324(a)(2)(B)(ii) and 18 U.S.C. § 2
INVESTIGATING AGENCIES
U.S. Customs and Border Protection
Homeland Security Investigations
San Diego Police Department
Baja California State Preventive Police Department
Rapid City Woman Indicted for Theft of Government PropertyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, woman has been indicted by a federal grand jury for Theft of Government Property and Misappropriation by Fiduciary.
Cassandra Koscak, age 39, was indicted on April 19, 2016. Koscak appeared before U.S. Magistrate Judge Daneta Wollmann on May 6, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Koscak, in a fiduciary capacity, stealing over $1,000 in U.S. currency of the Department of Veterans Affairs between March 2012 and December 2012.
The charges are merely accusations and Koscak is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Veterans Affairs, Office of Inspector General. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Koscak was released on bond pending trial. A trial date has not been set.
Rand drug dealer sentenced to eight years in Federal prison for heroin crimeRead the Press Release
CHARLESTON, W.Va. – A Rand heroin dealer was sentenced today to eight years in federal prison for a drug crime, announced Acting United States Attorney Carol Casto. Marcus Manchion, 27, previously pleaded guilty to distribution of heroin.
Manchion admitted that on March 3, 2015, he sold heroin to a confidential informant working with the Kanawha County Sheriff’s Department. The drug deal took place on the 5000 block of Church Drive in Rand. Manchion also admitted to selling heroin to a confidential informant on three other occasions in March 2015. On April 16, 2015, officers executed a search warrant on Manchion’s house in Rand and recovered over 80 grams of heroin and a Glock Model 37 pistol.
The investigation was conducted by the Kanawha County Sheriff’s Department. Assistant United States Attorney Monica D. Coleman is responsible for the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Philadelphia Man Sentenced to 37 Months for Credit Card ConspiracyRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Chernoh A. Jalloh, age 28, of Philadelphia, Pennsylvania, was sentenced in federal court in Greenville, for conspiracy to defraud, a violation of Title 18, United States Code, Section 1029(b)(2). United States District Judge Bruce Howe Hendricks of Charleston sentenced Jalloh to 37 months in the Bureau of Prisons and ordered him to pay over $97,000 in restitution.
Evidence presented at the change of plea hearing established that on August 24, 2015, Jalloh’s vehicle was stopped on Interstate 85 for a traffic infraction. Upon approaching the vehicle, law enforcement observed the smell of marijuana emanating from the vehicle and conducted a search.
During the search of the vehicle, officers located more than 90 credit and debit/gift cards secreted in various locations throughout the vehicle. Of these cards, at least twenty-three (23) were embossed with Jalloh’s name. In the vehicle, officers also discovered a laptop computer and a device capable of encoding the magnetic stripe data on credit, debit, and similar magnetic-striped cards.
All of the twenty-three (23) cards embossed with Jalloh’s name were found to be encoded with magnetic stripe data that did not match the number embossed on the cards.
The case was investigated by agents of the Department of Homeland Security, Office of Investigations, and the Greenville County Sheriff’s Office. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Phenix City Man Sentenced to 30 Months in Federal Prison for Failure to Register as a Sex OffenderRead the Press Release
Montgomery, Alabama – Christopher Quinton Hearlson (36), a resident of Phenix City, Alabama, was sentenced to 30 months in federal prison for failure to register as a sex offender, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
In September of 2015, Hearlson was indicted by a federal grand jury for failure to register as a sex offender. According to court documents, when Hearlson moved to Russell county, he failed to registered as required by law.
Chief United States District Judge W. Keith Watkins sentenced Hearlson to 30 months in federal prison to be followed by a ten year term of supervised release. Hearlson remains in the custody of the United States Marshals Service pending placement by the Bureau of Prisons.
This case was investigated by the United States Marshal’s Service. Assistant United States Attorney Hollie Worley prosecuted the case.
Perry Housing Projects Drug Trafficker SentencedRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Dallas McLamore, 30, of Buffalo, NY, who was convicted of conspiracy to distribute 280 grams or more of crack cocaine within 1000 feet of the Perry Housing Projects, was sentenced to 135 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Timothy C. Lynch and Michael J. Adler, who handled the prosecution, stated that the defendant was part of a narcotics trafficking ring headed by Tyshawn Bradley that operated primarily in the Perry Housing Projects in Buffalo. Bradley’s organization maintained several apartments on the grounds of the projects, operated by the Buffalo Municipal Housing Authority, where members of Bradley’s organization, including the defendant, sold crack cocaine on a daily basis.
The defendant was arrested along with nine others on April 3, 2013 following the execution of search warrants at several locations in the City of Buffalo and Cheektowaga, including at 124 Fulton Street and 305 Perry Street, which are located at the Perry Housing Projects. During the searches at the Perry Housing Projects, officers recovered over 300 grams of crack cocaine and 700 grams of powered cocaine as well as a sawed-off, 9mm semiautomatic rifle.
To date, all 10 defendants have been convicted.
Today’s sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes representatives of the Amherst Police Department, the Buffalo Police Department the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Erie County Sheriff’s Department, the Hamburg Police Department, the Niagara Frontier Transportation Authority Police, the New York State Police, the Town of Tonawanda Police Department, U.S. Border Patrol, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and U.S. Immigration and Customs Enforcement, Office of Enforcement & Removal Operations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.Oregon Man Sentenced to 52 Months in Federal Prison for Child Pornography OffenseRead the Press Release
Fayetteville, Arkansas – Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Edgar Carlstrom, age 33, of Keizer, Oregon, (formerly of Bentonville, Arkansas) was sentenced today to 52 months in federal prison followed by ten years of supervised release on one count of Accessing the Internet with the Intent to View Child Pornography. Carlstrom was also ordered to pay a $3,500 fine. The Honorable Timothy L. Brooks presided over the sentencing in the United States District Court in Fayetteville.
According to court records, in September of 2014, the Northwest Arkansas Internet Crimes Against Children Task Force received information from the National Center for Missing and Exploited Children that a user profile had uploaded pictures depicting child pornography to a Google account. The account was traced back to a residence in Bentonville, Arkansas occupied in part by the defendant Edgar Carlstrom. Agents executed a search warrant on the residence where they located and seized three laptop computers, an external hard drive, a USB drive, and three memory cards in the bedroom. Carlstrom provided computer passwords to the agents at that time and admitted to downloading child pornography. A search of the computers and hard drives yielded a total of over 1,000 images and three videos containing depictions of child pornography in which some of the children were under 12 years of age. Carlstrom was indicted by a federal grand jury on July 15, 2015 and pleaded guilty to the charge on February 5, 2016.
“Child sexual abuse leaves lasting scars on victims and the criminals who view images of this abuse are directly responsible for supporting the spread of these illegal images,” said Raymond R. Parmer Jr., special agent in charge of HSI New Orleans.
This case was investigated by Homeland Security Investigation and the Northwest Arkansas Internet Crimes Against Children Task Force. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Newton County Man Guilty of Burkeville Bank RobberyRead the Press Release
BEAUMONT, Texas – A 22-year-old Newton, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Michael Dwayne Byerly pleaded guilty to bank robbery on May 11, 2016 before U.S. District Judge Thad Heartfield.
According to information presented in court, on June 25, 2014, Byerly, along with co-defendants Michael Xavier Odarius Clark and Keith Collins, Jr. attempted to rob the Sabine State Bank in Burkeville, Texas. On at least two occasions prior to the robbery, the defendant and co-defendants, Clark and Collins, drove to the bank to become more familiar with it and the habits of the employees. They became aware that the manager of the bank, left at approximately the same time every day, and locked up the building using her set of keys before departing. On June 25, 2014, Collins drove Byerly and Clark to the bank and dropped them off for the purpose of committing the robbery. Byerly went inside the bank while Clark stayed outside. Upon entry into the bank, Byerly pointed a gun at the manager and demanded that she open the bank's safe. The manager knew that it would require two keys to access the cash, and claimed that she was part of the janitorial staff and that she was unable to comply. Byerly, knowing this to be untrue, attempted to grab her keys from her and during the ensuing scuffle over the keys, Byerly produced a knife and stabbed the bank manager several times. She was taken to the hospital and survived the attack. A federal grand jury returned an indictment on Aug. 6, 2014.
Although Byerly has agreed to a term of 25 years in federal prison, sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office. Clark and Collins have both previously pleaded guilty to bank robbery and are also awaiting sentencing.
This case is being investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Newton County Sheriff’s Office, the Newton Police Department and the Jasper County Sheriff’s Office and is being prosecuted by Assistant U.S. Attorneys Christopher Tortorice and Chris Rapp.
New York Men Sentenced for Using or Trafficking in an Unauthorized Access Device and Aiding and AbettingRead the Press Release
United States Attorney Randolph J. Seiler announced that two New York men convicted of Using or Trafficking in an Unauthorized Access Device and Aiding and Abetting were sentenced by U.S. District Judge Roberto A. Lange.
Wilton Santana, age 20, and Charlie Aquino, age 22, were each sentenced to 24 months in custody, followed by 2 years of supervised release, $7,726.94 in restitution, joint and several with their co-defendants, and a $100 special assessment to the Federal Crime Victims Fund.
Santana and Aquino were indicted by a federal grand jury on July 15, 2014, and both pled guilty to Count 1 of a 9 count Superseding Indictment.
The convictions arose from activities that occurred between June 23, 2014, and July 5, 2014, when Santana, Aquino, and Francis Frias knowingly used “account takeovers” — posing as established AT&T customers who wanted to upgrade by adding new lines or phones to their existing cell plans. Frias and his co-defendants were provided confidential subscriber information while they were outside an AT&T store. Before Santana, Aquino, or Frias went into an AT&T store, someone else had already called into AT&T and added one of the three of them as an authorized user to the original AT&T customer’s account. Once the cell phones were purchased, Frias mailed them to addresses provided by another individual. The three men were to be paid for each phone they purchased and shipped.
On July 5, 2014, a traffic stop was conducted on Interstate 90 in Jones County. Santana, Aquino, and Frias, all from New York, were in the vehicle. The vehicle was a rental and was due back in Colorado on June 24, 2014. A probable cause search was conducted and a white plastic bag with 14 brand new, in-the-box Apple 5s iPhones were found in the trunk, along with receipts from an AT&T Store in Pierre, South Dakota. The names on the receipts did not match any of the three individuals in the vehicle.
This case was investigated by the Office of Attorney General, Division of Criminal Investigation; the Department of Homeland Security, Secret Service; and the South Dakota Highway Patrol. Assistant U.S. Attorney Jay Miller prosecuted the case.
Santana and Aquino were immediately turned over to the custody of the U.S. Marshals Service. Frias began serving his sentence in June of 2015.
New Mexico Man Sentenced to Federal Prison for Sex Trafficking of ChildrenRead the Press Release
In El Paso, 32-year-old Vernon Dimayuga (aka “Vito”) of Artesia, NM, was sentenced to 100 months in federal prison for sex trafficking of children announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division, and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
In addition to the prison term, United States District Judge Kathleen Cardone ordered that Dimayuga pay a $500 fine and be placed on supervised release for a period of five years after completing his prison term.
On February 26, 2016, Dimayuga pleaded guilty to one count of conspiracy to commit sex trafficking of children by force, fraud or coercion. By pleading guilty, Dimayuga admitted to recruiting, enticing, harboring, and transporting a minor with the intent that the minor engage in a commercial sex act.
Court records allege that from May 2011 through May 2012, Dimayuga recruited and promoted using the Internet three children under the age of 18 to engage in commercial sex acts in El Paso, Midland, Odessa, San Antonio and Killeen.
Federal authorities arrested Dimayuga in Artesia, NM, in September 2015. He has remained in federal custody ever since.
“The arrest, conviction and sentencing of Mr. Dimayuga for sex trafficking of minors demonstrates that the FBI and our partners in the Department of Homeland Security, El Paso Police Department, and El Paso County Sheriff's Office will investigate all instances where children in our community are being harmed or exploited,” said FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
“HSI special agents are committed to working with our law enforcement partners to ensure those responsible for such heinous acts are justly prosecuted,” Waldemar Rodriguez, Special Agent in Charge of HSI El Paso, said.
This case was the result of a joint investigation by the Federal Bureau of Investigation and Homeland Security Investigations as part of the Anti-Trafficking Coordination Team (ACTeam). Assistant United States Attorney Rifian Newaz prosecuted this case on behalf of the Government.
New Jersey Firefighter Charged with Drug DistributionRead the Press Release
BOSTON – A New Jersey firefighter and a Puerto Rican man were arraigned in U.S. District Court in Worcester today in connection with selling heroin in Leominster, Mass.
Carlos Jimenez, 50, of Englishtown, NJ, and Ivan Cruz-Rivera, 47, of Dorado, PR, were charged in a complaint with one count of conspiracy to distribute heroin and one count of possession with intent to distribute and distribution of heroin. Jimenez was arrested in New Jersey on May 2, 2016 and was arraigned in U.S. District Court in Worcester today. Cruz-Rivera was arrested in Puerto Rico on May 3, 2016 and ordered released on conditions during a detention hearing in U.S. District Court in Puerto Rico.
According to the criminal complaint, on Oct. 4, 2013, agents were surveilling garages on Union Street in Leominster where they believed drugs were being sold. Agents observed a Lexus with two men and New Jersey registration entering the property, and leaving 30 minutes later. After the Lexus left, the individual at the garage allegedly sold heroin to a cooperating source, who was accompanied by an undercover agent, for $7,500.
As alleged in court documents, a state trooper followed the Lexus and stopped the vehicle in Sturbridge, Mass. after the driver exceeded the speed limit. The trooper observed that the driver and passenger were visibly nervous – avoiding eye contact and fidgeting. The driver provided the trooper with a New Jersey license and firefighter badge which identified him as Carlos Jimenez, and the passenger provided a Puerto Rican license identifying him as Cruz-Rivera. When questioned about the purpose of the trip to Massachusetts, Jimenez allegedly gave conflicting answers, and said that they had just come from Lawrence. Jimenez denied having weapons or drugs in the car, but said he was “not sure” if there were large sums of cash. When Cruz-Rivera was questioned about transporting large sums of cash in the car, he gave evasive answers before finally stating that there was $1,000 in the car. After Jimenez consented to a vehicle search, the trooper found $44,000 in a black bag in the back seat of the Lexus.
According to court documents, the cash was seized, but Jimenez and Cruz-Rivera were released to maintain the ongoing drug investigation. Subsequently, a cooperating witness provided law enforcement with information regarding Jimenez and Cruz-Rivera’s drug trafficking activity. In approximately 2012, the cooperating witness began purchasing cocaine heroin from Cruz-Rivera. On Oct. 4, 2013, Jimenez allegedly told the cooperator that he drove for the drug delivery because it was less likely that he would get in trouble if they were pulled over because he was a firefighter.
The charging statutes provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Fitchburg Police Chief Ernest F. Martineau; Leominster Acting Police Chief Michael Goldman; and Lunenburg Police Chief James P. Marino, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Michelle L. Dineen Jerrett of Ortiz’s Worcester Branch Office.
The details contained in the charging document are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Mother and Son Sentenced to Prison for Tax Return Preparer Fraud in Farmville and TarboroRead the Press Release
RALEIGH – The United States Attorney’s Office announced that in Federal court on Monday, May 9, 2016, Senior United States District Judge W. Earl Britt sentenced SherrY D. WILLIAMS, 43, of Greenville, North Carolina to 75 months imprisonment, 3 years of supervised release, and ordered to pay $1,050,976 in restitution. Her co-defendant, THADDEUS L. WILLIAMS, 28, of Durham, North Carolina, and the son of SHERRY D. WILLIAMS, was sentenced to 33 months imprisonment, 3 years of supervised release, and and ordered to pay $60,007 in restitution.
SHERRY D. WILLIAMS and THADDEUS L. WILLIAMS were named in a 38-count Indictment filed in the Eastern District of North Carolina on May 20, 2015. On November 2, 2015, the WILLIAMS’ entered separate guilty pleas to making and presenting false tax refund claims to the Internal Revenue Service (“IRS”), in violation of 18 U.S.C. § 287. SHERRY D. WILLIAMS also pleaded guilty to the additional charge of aggravated identity theft, in violation of 18 U.S.C. § 1028A.
According to the charging instrument, other court filings, and the sentencing proceedings, SHERRY D. WILLIAMS worked from approximately May, 2012, to January, 2013, as a manager and tax return preparer at the Farmville, North Carolina, office of Hill’s Tax Service (HTS), a now-defunct, fraudulent tax return preparation business that maintained various offices throughout the Eastern District of North Carolina from 2009 through 2013. HTS was owned and operated by Larry D. Hill, SHERRY D. WILLIAMS’ cousin. Hill was separately charged and convicted of Federal tax crimes relating to his involvement with HTS. On February 4, 2014, Senior United States District Judge W. Earl Britt sentenced Hill to 100 months imprisonment, among other terms of the judgment.
Between approximately May, 2012, and October, 2012, SHERRY D. WILLIAMS organized, deployed, and managed a scheme at HTS’s Farmville office involving the systematic preparation and filing of nearly 400 false Federal income tax returns for tax year 2011. The personal identifiying information (“PII”) used on the fraudulent returns, including names and Social Security numbers, was provided by individuals who were falsely told they could receive “federal program money,” a “stimulus check,” or similar government funds if they had been unemployed and had not filed a tax return for a certain time period. Many of the individuals lured by the scheme were older, unemployed, and receiving disability income. The individuals were told to contact SHERRY D. WILLIAMS, who would determine their “eligibility” for the sham program. If the individual “qualified,” he/she was directed to fax their PII to SHERRY D. WILLIAMS. In turn, SHERRY D. WILLIAMS, aided and assisted by others, prepared and filed false 2011 Forms 1040 in the names of the individuals who had provided their PII. Each fraudulent refund check that resulted from the scheme was typically in excess of $4,000. A small fraction of the refund (e.g., $400-$500) would be wired the individual whose PII was used on the offending return. The remainder of the refund proceeds were distributed among SHERRY D. WILLIAMS and her co-conspirators. According to the investigation, the individuals were never told that a Federal income tax return would be filed in their name, or that the $400-$500 payment they received was, in fact, the proceeds of fraudulent refund checks worth thousands more.
In December, 2012, while still working at HTS, SHERRY D. WILLIAMS, took steps to form her own fraudulent return mill in downtown Tarboro, North Carolina – Best Choice Financial Services (“Best Choice”). By February, 2013, SHERRY D. WILLIAMS had left HTS and was exclusively operating Best Choice with her son, THADDEUS L. WILLIAMS. From that date until approximately July, 2013, SHERRY D. WILLIAMS and THADDEUS L. WILLIAMS prepared and electronically filed nearly 200 false Federal income tax returns for tax year 2012 through Best Choice. The returns reported false household help or “HSH” income and other materially false items. Many of the taxpayers named on the returns included individuals whose PII had been used on returns previously filed by SHERRY D. WILLIAMS at HTS in connection with the “federal program money” scheme.
The investigation of this case was conducted by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Adam F. Hulbig prosecuted the case for the government.
Miramar Brothers Sentenced to 8½ and 7 Years in Prison for their Participation in an Identity Theft SchemeRead the Press Release
Bechir Delva, 24, and Dan Kenny Delva, 27, both of Miramar, were sentenced to 102 months and 84 months, respectively, by United States District Court Judge William P. Dimitrouleas for their participation in an identity theft scheme. Judge Dimitrouleas also ordered the defendants to pay $186,697 in restitution and serve three years of supervised release.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Bechir Delva and Dan Kenny Delva were convicted on February 19, 2016, following a trial before Judge Dimitrouleas, of one count of conspiracy to possess fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(b)(2), one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and five counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to evidence presented at trial, the defendants conspired to possess and did possess debit cards and over 1,600 Social Security numbers issued to other persons. To protect the unauthorized personal identification information, the defendants possessed several firearms, including an AR-15 rifle, a SIG 522 rifle and a .380 pistol. At trial, eight victims testified that they neither knew the defendants nor authorized them to possess their Social Security numbers and other personal information.
Mr. Ferrer commended the investigative efforts of IRS-CI and ICE-HSI. The case was prosecuted by Assistant U.S. Attorney John R. Byrne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Massachusetts Man Sentenced to 51 Months in Prison for Possession of Fentanyl with Intent to DistributeRead the Press Release
CONCORD – United States Attorney, Emily Gray Rice announced today that United States District Court Judge Steven J. McAuliffe sentenced Hector Bienvenido Mateo-Beltre to serve 51 months in federal prison. Mateo-Beltre previously had pleaded guilty to possession of fentanyl with intent to distribute.
According to documents that were filed in United States District Court and statements in the plea proceeding, Mateo-Beltre was arrested on July 12, 2015, after he attempted to deliver over 200 grams of fentanyl to a customer in Manchester, New Hampshire. After his arrest, Mateo-Beltre falsely claimed to be “Kevin Morales” of Dorchester, Massachusetts. Law enforcement officers later determined his true name.
According to statistics maintained by the State of New Hampshire, over half of the drug overdose deaths in New Hampshire in 2015 were related to fentanyl. Because a single gram of heroin or fentanyl can be used to create multiple individual dosage units that can be sold “on the street,” the quantity of fentanyl involved in this case could have generated hundreds of individual doses of fentanyl, each of which had the potential to cause a fatal overdose.
The case was investigated by the Drug Enforcement Administration, with assistance from other law enforcement agencies, including the New Hampshire State Police and the Manchester Police Department. The case was prosecuted by Assistant United States Attorneys Debra Walsh and John J. Farley.
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Mark D. Speer Sentenced for Possession of Child PornographyRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Mark D. Speer, 45, of Lafayette, Indiana, was sentenced before District Court Judge Joseph S. Van Bokkelen for possession of child pornography.
Speer was sentenced to 235 months’ imprisonment and 3 years of supervised release.
In September 2013, while helping babysit a child near Lafayette, Indiana, Speer persuaded a three year old to remove her clothes. He then used his cell phone to visually record the child while making sexually explicit remarks. Speer also used his email account and cell phone to download more than 100 child pornography photos from the Internet.
This case was the result of an investigation by the Federal Bureau of Investigation. This case was handled by Assistant United States Attorney Gary T. Bell.
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Marion County, WV man sentenced for unlawful possession of firearms in furtherance of drug traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Craig Steven Abercrombie, Jr., 32, of Fairmont, West Virginia, was sentenced today to 60 months in prison for unlawful possession of a firearm in furtherance of a drug trafficking crime, United States Attorney William J. Ihlenfeld, II, announced.
Abercrombie was discovered in July 2015 in possession of cocaine and a 9mm pistol in Marion County, West Virginia. He pled guilty in December 2015 to one count of “Possession of a Firearm in Relation to a Drug Trafficking Crime.”
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The Fairmont, West Virginia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge Irene M. Keeley presided.
Manhattan U.S. Attorney Announces Arrest of Joseph Grossmann for Defrauding New York State Pension Fund of over $130,000Read the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas P. DiNapoli, the New York State Comptroller, announced today the arrest of JOSEPH GROSSMANN for fraudulently obtaining the pension of a deceased former New York State employee. The defendant was arrested and presented today in the District of South Carolina.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Joseph Grossmann methodically devised a scheme to steal a deceased New York State employee’s pension money. He allegedly lied, created fake documents, and deceived state officials to ensure he got his hands on money that didn’t belong to him. I want to thank New York State Comptroller Thomas DiNapoli for his work to bring Grossmann to account for this conduct.”
State Comptroller Thomas P. DiNapoli said: “Joseph Grossmann allegedly tried to deceive officials that a deceased New York State employee was alive so he could pocket her retirement checks. Due to my office’s investigation and our partnership with United States Attorney Preet Bharara, Grossmann’s acts were exposed and he now faces federal prosecution. My message to would-be pension scammers is this: we will find you no matter what state you are in and recoup what you steal from the retirement system. I thank U.S. Attorney Bharara for partnering with us in the fight against pension fraud.”
According to the Complaint unsealed today: [1]
From August 2010 until August 2015, GROSSMANN executed a fraud whereby he deceived the New York State and Local Employees’ Retirement System (“NYSLERS”) into believing that a deceased former employee of New York State (“Pensioner-1”) was alive and entitled to continued pension payments. GROSSMANN then defrauded NYSLERS into depositing the payments into a bank account under GROSSMANN’s control.
Upon her retirement from employment with New York State, Pensioner-1 began to receive pension payments from NYSLERS by electronic deposit or mailed check. Pensioner-1 received her first payment on February 1, 1999, in the amount of approximately $1,740. Starting on or about April 30, 1999, Pensioner-1 received a monthly pension payment by either mailed check or electronic deposit.
Pensioner-1 was reported deceased as of August 5, 2010. The death certificate filed with the Probate Court in Kershaw County, South Carolina, lists her social security number, date of birth, and place of death, and GROSSMANN is listed as the “informant” of Pensioner-1’s death. On November 2, 2010, GROSSMANN filed an application for appointment with the same court, seeking to be named the personal representative of Pensioner-1’s estate. This application was approved on the same day.
Around the time of Pensioner-1’s death, NYSLERS learned of her death and attempted to verify that she was deceased and thus no longer eligible for pension payments. NYSLERS sent two letters to Pensioner-1’s last known address of record, and received a phone call in response, explaining that ‘Pensioner-1’ was going to respond to the letter and would provide paperwork showing that her ‘brother’ had been granted her power of attorney. On November 12, 2010, NYSLERS received a written response to its inquiry. Included in this response was a copy of the appointment application that GROSSMANN had filed with the probate court, which omitted the portions concerning anything related to the death of Pensioner-1. This response also included a direct deposit form, requesting that all future pension payments be remitted to an account opened by GROSSMANN on September 17, 2010 – approximately six weeks after Pensioner-1’s death. Since that time, approximately 61 pension payments totalling approximately $130,624.15 have been made by either check or wire.
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GROSSMANN, 67, of Camden, South Carolina, is charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the New York State Comptroller’s Office. He also thanked the United States Marshal’s Service for its assistance in the arrest of the defendant.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jason A. Richman is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced to 15 Years in Prison for Production of Child PornographyRead the Press Release
TUCSON, Ariz. – On May 11, 2016, Glen Kevin Winfrey, 33, of Yuma, Ariz., was sentenced by Senior U.S. District Judge Frank R. Zapata to 15 years in prison. Winfrey had previously pleaded guilty to two counts of production of child pornography. Winfrey’s term of imprisonment will be followed by lifetime supervised release with stringent sex offender conditions, including the condition that he register as a sex offender.
While on active duty as a United States Marine on Marine Corps Air Station, Yuma, Winfrey took three surreptitious video recordings of a 10 year old girl. He then culled still images from those recordings and produced composite images of the child with a superimposed image of an adult male which were arranged to appear as though they were engaged in sex. Winfrey’s laptop also contained approximately 120 images of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by the Department of Homeland Security, Homeland Security Investigations and the Naval Criminal Investigative Service. The prosecution was handled by Lawrence C. Lee, District of Arizona, Tucson.
CASE NUMBER: CR-15-01436-TUC-FRZ
RELEASE NUMBER: 2016-045_Winfrey
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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.
Little Eagle Woman Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that a Little Eagle, South Dakota, woman convicted of Assault with a Dangerous Weapon was sentenced on May 9, 2016, by U.S. District Judge Charles B. Kornmann.
Vivian One Feather, age 23, was sentenced to 21 months in custody, followed by 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
One Feather was indicted by a federal grand jury on May 12, 2015. She pled guilty on February 9, 2016.
The conviction stemmed from an incident on January 1, 2014, when One Feather and the victim, who had been involved in an intimate relationship for approximately six years at the time, got into an argument. One Feather told the victim to leave the house and as the victim was packing his clothes, One Feather requested that the victim stay. The victim continued to pack his belongings, at which point One Feather began to punch him in the face. The victim attempted to leave the residence, causing One Feather to grab a 4-5 inch kitchen knife and stab the victim, once to the arm and once to the ear. The victim bandaged his arm and left.
When interviewed, One Feather stated that she was not physically assaulted during the argument, and was not in fear for her safety or acting in self-defense when she stabbed the victim.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
One Feather was immediately turned over to the custody of the U.S. Marshals Service.
Lincoln Man Sentenced for Producing Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that John Randall, 31, formerly of Lincoln, Nebraska, was sentenced in Lincoln, Nebraska, to 19 years in prison by United States District Judge Richard G. Kopf, for the production of child pornography. Randall was also ordered to pay restitution in the amount of $3,250 to the two minor victims in the case. Following his release from prison, Randall will be on supervised release for 10 years and be required to register as a sex offender.
In August 2014, Homeland Security Investigations received a request from the British Columbia Integrated Child Exploitation Unit for assistance identifying the user of a Skype and Instagram account who was allegedly involved in the transmission and receipt of sexual images with a minor female victim in British Columbia, Canada. Investigation of the email and IP addresses lead agents to Randall, who had been residing in California in 2014 and moved to Nebraska in 2015. Randall was subsequently interviewed and gave agents his cell phone and provided consent for them to analyze the phone.
An examination of the cell phone revealed several videos and images that appeared to be child pornography. The exam also located several conversations with another individual who appeared to be creating child pornography videos containing things specifically requested by Randall in return for payment. Randall was then arrested and interviewed. He admitted he had been trading child pornography with people on an internet based messenger system. Randall was asked about the conversations found on the cell phone and Randall admitted it was a fraud/scam. Randall would offer money to get videos and then he would not pay. As a result of the investigation, law enforcement was able to identify the two minor victims involved who admitted they sent child pornography to Randall because he had offered them money.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity
Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Department of Homeland Security
Lehigh County Man Charged with Enticing A MinorRead the Press Release
PHILADELPHIA - George William Schantz, 42, of Lynn Township, PA, was charged today by Indictment with the enticement of a minor, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a mandatory minimum sentence of 10 years in prison with a maximum possible sentence of life, up to a lifetime of supervised release, a possible fine, a $100 special assessment, and a $5,000 additional special assessment.
The case was investigated by the Pennsylvania State Police, and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. Anyone with additional information about this case can call the FBI at 215-418-4000.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Leader of West Side Street Gang Sentenced to Life in Prison in Connection with Murder and Drug ConspiraciesRead the Press Release
CHICAGO — The head of a violent street gang that terrorized the West Side of Chicago through murder and drug trafficking was sentenced today to life in prison.
While leading the Imperial Insane Vice Lords, NATHANIEL HOSKINS ordered at least one murder and oversaw the operation of an open-air drug market near Humboldt Park in Chicago. Hoskins assigned roles for each member of the gang to play in the drug market, and he personally handled the purchases of heroin and cocaine that fueled it.
More than 30 individuals with alleged ties to the Imperial Insane Vice Lords have been arrested and charged as part of the investigation, and authorities shut down the open-air market.
Hoskins, 47, of Chicago, was convicted in a bench trial last year of participating in drug and murder conspiracies, and leading a racketeering enterprise. U.S. District Judge Elaine E. Bucklo imposed the life sentence in federal court in Chicago.
“Gang-related violence is a tremendous problem in Chicago,” Assistant U.S. Attorney Rajnath P. Laud argued in the government’s sentencing memorandum. “A sentence of life is the only sentence that reflects the seriousness of the offense, particularly given defendant’s leadership role and the other serious crimes he committed as leader of a violent street gang.”
Evidence at trial revealed that Hoskins made it clear to others that he was the king of the gang. He ordered his subordinate gang members to commit violence to strengthen the group’s control over West Side neighborhoods. One such order from Hoskins resulted in the killing of a man whom Hoskins believed was a rival gang member.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; Eddie Johnson, Chicago Police Superintendent; James D. Robnett, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division; and Cook County State’s Attorney Anita Alvarez.
The investigation was conducted through the U.S. Organized Crime Drug Enforcement Task Force (OCDETF) Chicago Strike Force, which ― in addition to the DEA, IRS-CID and CPD narcotics officers ― consists of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, and task force officers from various state and local law enforcement agencies, including the Cook County Sheriff’s Police and the Illinois State Police.
The government is represented by Mr. Laud and Assistant U.S. Attorneys Scott M. Edenfield and Sean Franzblau.
Lansing Man, Tyrone Smith, Sentenced to 25 Years in Federal Prison for Sex Trafficking in West Michigan, the Third Such Case to Be Sentenced in the Last Two YearsRead the Press Release
GRAND RAPIDS, MICHIGAN – Tyrone Smith, 46, of Lansing, Michigan, received a sentence of 25 years in federal prison for sex trafficking numerous women and one minor, U.S. Attorney Patrick Miles announced today. In November 2015, Smith pled guilty to two counts of using force, threats, fraud, and coercion to sex traffic two victims; and one count related to transporting two other victims from Michigan to Chicago for prostitution. Smith previously spent 12 years in prison for second degree murder.
Smith recruited vulnerable, abused, and drug addicted women, as well as a 17-year-old minor, to work under what he branded his "New Stars" prostitution label. He operated a house of prostitution in Lansing and also took the women and the minor to Grand Rapids, Ann Arbor, Detroit, and Chicago for commercial sex. Smith maintained control over the victims with a steady stream of crack cocaine and heroin, and by using force, threats, and violence against them when they disobeyed him. When one of the women left Smith, he found her, broke a window, dragged her from room to room by her hair, brought her back to his prostitution house in Lansing, heated up a metal spoon on the stove and pressed it to her eye, and video recorded her apologizing for her disloyalty to "the family." Another victim, a minor, had a severe history of sexual abuse from a young age, and Smith recruited her after she ran away from home, supplied her with hard drugs, and manipulated her with a combination of violence and what the minor perceived as affection.
One of the victims spoke at the sentencing hearing. She described how she initially felt lucky to be taken in by Smith so she would have a place to stay and not be out on the streets that winter, how Smith at first made her feel loved and special, and how he became extremely violent and manipulative towards her. She explained that Smith once held a pillow over her face and a screwdriver to her eye, threatening to take her eye out, and how he regularly hit her. She also explained that she has a long road of counseling ahead and is hoping one day to put this all behind her and get her life back on track. The judge ordered Smith to pay $20,000 in restitution to her for future counseling, which Smith will pay from prison wages. In announcing the sentence, Chief U.S. District Judge Robert J. Jonker described this as a very serious crime that people need to know is happening in their community.
"Yesterday’s sentencing sends a clear message that sex trafficking, particularly of minors, will not be tolerated," said David Gelios, Special Agent in Charge, FBI Detroit Field Office. "The efforts of the FBI and our law enforcement partners have removed a human trafficker from our streets. We will continue to prioritize the investigation of sexual exploitation crimes, bring to justice those who exploit others for profit, and endeavor to restore the rights and dignity of human trafficking victims."
The FBI, Ingham County Sheriff’s Office, and East Lansing Police Department jointly investigated the Smith case, with assistance from the Michigan State Police, and Assistant United States Attorney Tessa K. Hessmiller prosecuted it.
This was the third federal sentencing for sex trafficking in the Western District of Michigan, after Eddie Jackson received a 30-year sentence in 2014 for sex trafficking three minors in Muskegon and Grand Rapids and Christopher Bryant received a 40-year sentence last year for sex trafficking three minors and an adult. In a fourth case, Anthony Wilson-Lackey, Shyron Smith, and Stephanie Martin all pled guilty in February and are awaiting sentencing. In each case, the traffickers used different techniques to recruit the minors. Sometimes, they used another teenager or young woman to introduce them to minors in person or over social media or text messaging. One of the traffickers recruited a minor at a bus station by asking her if she wanted to make money helping him sell drugs. One of the traffickers recruited a minor over social media and asked if she wanted to make money modeling or strip dancing, and he later asked if she wanted to make $1,000 a night through commercial sex. Several of the minors lived with their families, and the traffickers brought them home after only one day away at a time. Other minors were runaways. All of the traffickers used drugs, cigarettes, alcohol, and money to lure the minors, as well as a combination of "romance" and violence as needed to control the victims. The minors in these four cases were white, black, and Hispanic, and they ranged in age from 14 to 17.
Referring to both the Smith and Bryant sex trafficking cases, Ingham County Sheriff Gene Wriggelsworth stated, "The Ingham County Sheriff’s Office continues its commitment to investigate these insidious crimes. The United States Department of Justice, FBI, Michigan State Police, East Lansing Police Department, and Ingham County Sheriff’s Office worked very hard to bring these cases to the proper conclusion by getting these criminals off the streets."
The Department of Justice (DOJ) investigates and prosecutes child sex trafficking cases as part of Project Safe Childhood, a 2006 nationwide initiative to combat child exploitation. Over the past year, the U.S. Attorney’s Office for the Western District of Michigan prosecuted over a dozen child sexual exploitation cases. Those cases included, for example, a 29-year-old man in Lansing who befriended a 15-year-old girl from the west coast online and coerced and enticed her into sending sexually explicit photographs daily for three years; a man in Grandville who drilled holes in the wall of his 12-year-old stepdaughter’s bedroom to video record her naked; a man who traveled from Las Vegas to Kalamazoo to sexually assault a nine-year-old boy while another man took pictures; and a pair of brothers who produced child pornography of sleeping children in Kent County and elsewhere in Michigan and traded the pictures with each other over email.
"My office has placed prosecuting sex traffickers and others who exploit minors as a high priority," U.S. Attorney Miles advised. "The facts of these cases shock the conscience and are hard to think about. But the victims are real children who have to deal with the repercussions for the rest of their lives after being targeted, exploited, and victimized. The reality is that the internet and cell phones have made it easier and more anonymous for people to find, communicate with, and exploit minors and harder for parents to find out."
To learn more about keeping kids safe from predators online, view this short video from the DOJ: https://www.justice.gov/psc/video/sextortion-public-service-announcement-90-seconds
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Kentucky Anesthesiologist Sentenced to 100 Months for Unlawful Distribution of Controlled Substances, Health Care Fraud, Conspiracy and Money LaunderingRead the Press Release
Anesthesiologist Jaime Guerrero, 48, of Kentuckiana, Kentucky, was sentenced in federal court in Louisville, Kentucky, to 100 months in prison for his role in the unlawful distribution of controlled substances, including the prescription opioid hydrocodone without a legitimate medical purpose and related crimes, announced U.S. Attorney John E. Kuhn Jr for the Western District of Kentucky.
According to the terms of a prior plea agreement, Guerrero agreed to forfeit his license to practice medicine and real property owned by Guerrero Real Estate Investments LLC. Further, Guerrero agreed to pay $827,000 in victim restitution to nine health care benefit programs.
Guerrero, formerly a medical physician with offices in Louisville and Jeffersonville, Indiana, pleaded guilty to 31 counts of a 35 count Superseding Indictment on Jan. 7, including unlawful distribution or dispensing of controlled substances, health care fraud, conspiracy and money laundering.
“The prescribing practices of a very few physicians in Kentucky have caused immeasurable harm,” said U.S. Attorney Kuhn. “Reckless prescribing encourages abuse, creates addicts and builds the foundation for the scourge of heroin that so many pill addicts turn to. The personal and social costs are no less than tragic. My office will aggressively prosecute doctors like Dr. Guerrero who prescribe narcotics without a legitimate medical purpose. We will seek justice and accountability for the harm they do.”
“Doctors take an oath to ‘first, do no harm.’ Dr. Guerrero violated that oath and today’s sentence is a solemn reminder that the cost of health care fraud is not one just paid in money,” said Special Agent in Charge Howard Marshall for the FBI’s Louisville Division. “The FBI and our law enforcement partners are committed to vigorously investigating those who seek to enrich themselves and threaten the public’s safety through fraudulent health care schemes.”
“This doctor was operating as a drug dealer in a white coat,” said Special Agent in Charge Derrick L. Jackson for the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “This sentence should be a wake-up call to physicians across the state: if you’re overprescribing narcotics you are facing a lengthy prison sentence.”
“The dangerous overprescribing of opioid drugs by some providers has had tragic consequences for public health in southern Indiana and western Kentucky,” said Indiana Attorney General Greg Zoeller, who co-chairs the Indiana Prescription Drug Abuse Prevention Task Force. Its website is www.BitterPill.in.gov. “The Indiana Medicaid Fraud Control Unit of my office worked with our colleagues in the U.S. Attorney’s Office to investigate and unravel this illegal scheme, hold the defendant accountable and recoup taxpayers’ funds.”
“Addressing the diversion and abuse of controlled substance prescription medications is a top priority of the DEA,” said Special Agent in Charge Timothy J. Plancon for the U.S. Drug Enforcement Administration’s Detroit Field Division. “In this instance, Jaime Guerrero, formerly an anesthesiologist abused his position of trust and jeopardized the lives of many individuals by dispensing controlled substances to patients without a medical purpose. This sentence should serve as a notice to all medical professionals that if you prescribe medication for personal gain you will be investigated and prosecuted to the fullest extent of the law.”
According to the plea agreement, from Nov. 1, 2009, continuing through Jan. 1, 2013, Guerrero conspired with others to knowingly and intentionally distribute and dispense, Schedule II and III controlled substances to patients, without a legitimate medical purpose and beyond the bounds of professional medical practice. Beginning Nov. 1, 2009, and continuing through May 8, 2014, Guerrero admitted to distributing and dispensing Schedule II and III controlled substances to patients (listed in counts 2-26) without a legitimate medical purpose beyond the bounds of professional medical practice. Beginning on or about Jan. 6, 2010, and continuing through Sept. 16, 2011, Guerrero knowingly and intentionally distributed and dispensed, and caused to be distributed and dispensed Hydrocodone, a Schedule III controlled substance, to patient S.O., without a legitimate medical purpose and beyond the bounds of professional medical practice, which resulted in S.O.’s death on or about Sept. 24, 2011.
Guerrero further pleaded guilty to three counts of health care fraud for fraudulently billing various health care benefit programs and for submitting fraudulent claims for patient health care counseling. Specifically, on May 26, 2011, June 15, 2011, and June 22, 2011, Guerrero saw more than 100 patients on each of the dates, by himself, and spent approximately three minutes or less with each patient and fraudulently billed various health care benefit programs, for office visits at a higher code than the service provided. Between July 9, 2010, and July 22, 2010, Guerrero travelled outside of the United States and directed staff personnel to provide group counseling sessions for patients in his absence. The group sessions were then billed as individual counseling sessions and as if Guerrero personally provided the service. Additionally, between Jan. 1, 2008, and continuing through June 15, 2012, Guerrero falsely and fraudulently submitted over 100 claims to various health care benefit programs for office visits at a higher code than the service provided; for office visits that were not medically necessary or within the course of usual medical practice; submitting claims for services that were not sufficiently documented in the patient’s medical record; and making claims for office visits as though a physician saw the patient, when in fact, a nurse practitioner saw the patient. Guerrero agreed to pay $827,000 in victim restitution to nine health care benefit programs.
Finally, Guerrero pleaded guilty to a single money laundering charge for redeeming (paying the taxes) on a building located at 1201 West Wall Street in Jeffersonville with $89,556.25 in cash derived from unlawful activity - the unlawful dispensing and distribution of controlled substances and health care fraud.
This case was prosecuted by Assistant U.S. Attorneys Joseph Ansari and Lettricea Jefferson-Webb and was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services-Office of Inspector General, the U.S. Drug Enforcement Administration, Indiana and Kentucky Medicaid Fraud Control Units and Louisville Metro Police Department.
Kentuckiana Anesthesiologist Sentenced to 100 Months for Unlawful Distribution of Controlled Substances, Health Care Fraud, Conspiracy, and Money LaunderingRead the Press Release
LOUISVILLE, Ky. – Kentuckiana anesthesiologist Jaime Guerrero was sentenced to 100 months in prison, by United States District Judge Greg N. Stevens today, and according to the terms of a prior plea agreement, agreed to forfeit his license to practice medicine and real property owned by Guerrero Real Estate Investments, LLC. Further, Guerrero agreed to pay $827,000 in victim restitution to nine health care benefit programs announced United States Attorney John E. Kuhn, Jr.
Guerrero, age 48, formerly a medical physician with offices in Louisville, Kentucky, and Jeffersonville, Indiana, pleaded guilty to 31 counts of a 35 count Superseding Indictment on January 7, 2016, including unlawful distribution or dispensing of controlled substances, health care fraud, conspiracy and money laundering.
“The prescribing practices of a very few physicians in Kentucky have caused immeasurable harm," stated U.S. Attorney John Kuhn. "Reckless prescribing encourages abuse, creates addicts, and builds the foundation for the scourge of heroin that so many pill addicts turn to. The personal and social costs are no less than tragic. My office will aggressively prosecute doctors like Dr. Guerrero who prescribe narcotics without a legitimate medical purpose. We will seek justice and accountability for the harm they do."
“Doctors take an oath to ‘first, do no harm.’ Dr. Guerrero violated that oath, and today’s sentence is a solemn reminder that the cost of health care fraud is not one just paid in money. The FBI and our law enforcement partners are committed to vigorously investigating those who seek to enrich themselves and threaten the public’s safety through fraudulent health care schemes,” stated FBI Special Agent in Charge Howard Marshall.
“This doctor was operating as a drug dealer in a white coat,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “This sentence should be a wake-up call to physicians across the state: if you’re overprescribing narcotics you are facing a lengthy prison sentence.”
“The dangerous overprescribing of opioid drugs by some providers has had tragic consequences for public health in southern Indiana and western Kentucky. The Indiana Medicaid Fraud Control Unit of my office worked with our colleagues in the U.S. Attorney’s Office to investigate and unravel this illegal scheme, hold the defendant accountable and recoup taxpayers’ funds,” said Indiana Attorney General Greg Zoeller, who co-chairs the Indiana Prescription Drug Abuse Prevention Task Force. Its website is www.BitterPill.in.gov.
“Addressing the diversion and abuse of controlled substance prescription medications is a top priority of the DEA. In this instance, Jaime Guerrero, formerly an anesthesiologist abused his position of trust and jeopardized the lives of many individuals by dispensing controlled substances to patients without a medical purpose. This sentence should serve as a notice to all medical professionals that if you prescribe medication for personal gain you will be investigated and prosecuted to the fullest extent of the law,” stated Special Agent in Charge of the U.S. Drug Enforcement Administration’s Detroit Field Division, Timothy J. Plancon
According to the plea agreement, from November 1, 2009, continuing through January 1, 2013, Guerrero conspired with others to knowingly and intentionally distribute and dispense, schedule II and III controlled substances to patients, without a legitimate medical purpose and beyond the bounds of professional medical practice. Beginning November 1, 2009, and continuing through May 8, 2014, Guerrero admitted to distributing and dispensing Schedule II and III controlled substances to patients (listed in counts 2-26) without a legitimate medical purpose beyond the bounds of professional medical practice. Beginning on or about January 6, 2010, and continuing through September 16, 2011, Guerrero knowingly and intentionally distributed and dispensed, and caused to be distributed and dispensed Hydrocodone, a Schedule III controlled substance, to patient S.O., without a legitimate medical purpose and beyond the bounds of professional medical practice, which resulted in S.O.’s death on or about September 24, 2011.
Guerrero further pleaded guilty to three counts of health care fraud for fraudulently billing various health care benefit programs and for submitting fraudulent claims for patient health care counseling. Specifically, on May 26, 2011, June 15, 2011, and June 22, 2011, Guerrero saw more than 100 patients on each of the dates, by himself, and spent approximately 3 minutes or less with each patient, and fraudulently billed various health care benefit programs, for office visits at a higher code than the service provided. Between July 9, 2010 and July 22, 2010, Guerrero travelled outside of the United States and directed staff personnel to provide group counseling sessions for patients in his absence. The group sessions were then billed as individual counseling sessions, and as if Guerrero personally provided the service. Additionally, between January 1, 2008, and continuing through June 15, 2012, Guerrero falsely and fraudulently submitted over 100 claims to various health care benefit programs for office visits at a higher code than the service provided; for office visits that were not medically necessary or within the course of usual medical practice; submitting claims for services that were not sufficiently documented in the patient’s medical record; and making claims for office visits as though a physician saw the patient, when in fact, a nurse practitioner saw the patient. Guerrero agreed to pay $827,000 in victim restitution to nine health care benefit programs
Finally, Guerrero pleaded guilty to a single money laundering charge for redeeming (paying the taxes) on a building located at 1201 West Wall Street in Jeffersonville, Indiana, with $89,556.25 in cash derived from unlawful activity - the unlawful dispensing and distribution of controlled substances and health care fraud.
This case was prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb and was investigated by the Federal Bureau of Investigation (FBI), the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), the U.S. Drug Enforcement Administration (DEA), Indiana and Kentucky Medicaid Fraud Control Units, and Louisville Metro Police Department (LMPD).
KC Man Pleads Guilty to Possessing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to possessing an extensive collection of child pornography on his computer.
Colin J. Michael, 35, of Kansas City, waived his right to a grand jury and pleaded guilty before U.S. District Judge Dean Whipple to a federal information that charges him with possessing child pornography.
By pleading guilty today, Michael admitted that he was in possession of child pornography on Aug. 20, 2014. Michael must forfeit to the government an Apple iMac computer and a Hitachi hard drive, which were used to commit the offense.
According to today’s plea agreement, an officer with the FBI Dallas Child Exploitation Task Force identified Michael’s computer on Feb. 16, 2014, as sharing child pornography over the Internet via peer-to-peer file-sharing software. The officer downloaded 2,749 files of possible child pornography from Michael’s computer.
On Aug. 20, 2014, Kansas City FBI Task Force officers executed a search warrant at Michael’s residence. They seized his computer and hard drive from his home office.
Michael admitted to investigators that he had been looking at child pornography for a couple of years. Investigators found 1,200 photos and 80 movies containing child pornography on Michael’s computer and computer media.
Under federal statutes, Michael is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the FBI Dallas Child Exploitation Task Force and the FBI Cyber Crimes Task Force (Kansas City).
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."
Justice Department Settles Civil Contempt Claim against ASCAP for Entering into 150 Exclusive Contracts with Songwriters and Music PublishersRead the Press Release
ASCAP to Pay $1.75 Million and Reform its Licensing Practices
The Department of Justice announced today that the American Society of Composers, Authors and Publishers (ASCAP) has agreed to pay $1.75 million and reform certain practices to settle allegations that ASCAP violated a court-ordered consent decree designed to prevent anticompetitive effects arising from its collective licensing of music performance rights. Despite provisions in that court order prohibiting ASCAP from interfering with its members’ ability to directly license their songs, ASCAP entered into approximately 150 contracts with songwriter and publisher members that made ASCAP the exclusive licensor of their performance rights. As part of the settlement, ASCAP has also promised not to enter into further exclusive contracts and agreed to reform its licensing practices to remove music publishers from overseeing ASCAP’s licensing.
The Department of Justice’s Antitrust Division today filed a petition in the U.S. District Court for the Southern District of New York to have ASCAP held in civil contempt for violating the consent decree. At the same time, the department filed a proposed settlement agreement and order that, if approved by the court, would resolve the department’s concerns.
“By blocking members’ ability to license their songs themselves, ASCAP undermined a critical protection of competition contained in the consent decree,” said Principal Deputy Assistant Attorney General Renata B. Hesse, head of the Justice Department’s Antitrust Division. “The Supreme Court said that ASCAP’s consent decree is supposed to provide music users with a ‘real choice’ in how they can access the millions of songs in ASCAP’s repertory – through ASCAP’s blanket license or through direct negotiations with individual songwriters and publishers. Today’s settlement restores that choice and thereby promotes competition among the songwriters, the publishers and ASCAP. This settlement also sends an important message to ASCAP and others subject to antitrust consent decrees that they must abide by the terms of the decrees or face significant consequences.”
ASCAP is a performing rights organization that licenses public performance rights in compositions held by its hundreds of thousands of songwriter and publisher members. Since 1941, when the United States originally brought a civil antitrust lawsuit against ASCAP for price fixing, ASCAP has been subject to a consent decree, amended twice since then, that imposes a number of restrictions on ASCAP designed to prevent its anticompetitive exercise of market power. Among its restrictions, the consent decree prohibits ASCAP from entering into exclusive contracts with songwriters or music publishers or otherwise impeding direct licensing so that music users retain the ability to seek licenses directly from songwriters or music publishers.
The department’s investigation into ASCAP’s decree violation also revealed the existence of a conflict in the interests of the music publishers that serve on ASCAP’s board of directors. Those publisher board members are customers of ASCAP when ASCAP licenses their performance rights and competitors of ASCAP when they seek to license their rights directly. To ensure that this conflict does not prevent ASCAP and its publisher board members from competing with each other in licensing, ASCAP has agreed in the proposed settlement to cease publisher board members’ involvement in ASCAP’s licensing activities.
The proposed settlement also requires ASCAP to adopt an improved compliance program in order to minimize the likelihood of future consent decree violations.
ASCAP Declaration
ASCAP Declaration Exhibit A
ASCAP Declaration Exhibit B
ASCAP Memorandum
ASCAP Proposed Order
ASCAP Petition
Jury Finds Fortney Guilty of Making False Declaration to Court, Lying to FBI Agent in an Effort to Obstruct SEC CaseRead the Press Release
SALT LAKE CITY – A jury returned a verdict Tuesday evening finding Kevin Carl Fortney, age 55, of Washington, Utah, guilty of making a false declaration before a court of the United States and making a false statement to a federal agent as a part of efforts to obstruct the administration of justice in a Securities and Exchange Commission case pending in federal court.
Fortney and a co-defendant, Roger Stanley Bliss, age 57, of Bountiful, Utah, were charged in an indictment returned in August 2015. Federal prosecutors sought the indictment after U.S. District Judge Robert Shelby referred the case to the U.S. Attorney’s Office requesting a criminal perjury and obstruction investigation be opened against Bliss and Fortney. Judge Shelby made the request following an evidentiary hearing in his court where it was proven that Bliss and Fortney violated his order freezing defendant Bliss’ assets and that they had made false declarations to the court to conceal the conduct. Bliss pleaded guilty to obstruction of justice and false declaration before a court of the United States in September and was sentenced to a year in federal prison in January.
As a part of his guilty plea, Bliss admitted that he understood that the court had issued an ordering freezing all of his assets and that assets purchased with funds from any bank account in his name were subject to that order. He admitted that he arranged to have a third party to whom he owed money, take control of a 17-foot catamaran sailboat that had been purchased with funds from a bank account in his name and was subject to the court’s order freezing his assets. Bliss admitted he transferred the catamaran so it could be liquidated by the third party and the proceeds used to reduce a debt he owed to the third party. He also admitted submitting a false declaration to the court, under penalty of perjury, as a part of a subsequent hearing. Bliss knew the declaration was not consistent with the facts when he made it, according to a statement made as a part of his guilty plea.
Fortney was convicted this week for his role in assisting Bliss, his brother-in-law, in concealing and selling the catamaran. Fortney, under penalty of perjury before a federal court, signed and submitted a declaration he knew was false saying he owned the catamaran, used the catamaran at Bear Lake and moved his catamaran to St. George. The ownership of the catamaran was material to the contempt proceedings in the SEC action.
His conviction for making a false statement to a federal agent relates to his statement to FBI Special Agent Jason Henrikson that in June or July of 2014 he purchased the catamaran from a salesman in Ogden. Evidence at trial proved he made the statement to the agent knowing it was false.
Sentencing for Fortney is scheduled for Aug. 2, 2016, at 2 p.m. He faces up to five years in federal prison for each of the two counts of conviction.
“Mr. Fortney’s deception is an affront to the integrity of our judicial system. The actions he took to help circumvent the court-imposed asset freeze sought by the SEC further injured investor-victims of Bliss’ fraudulent investment scheme,” U.S. Attorney John W. Huber said today. “Those who attempt to obstruct the work of the court by giving false testimony or who knowingly violate orders of the court will face vigorous prosecution,” Huber said.
Asset freeze orders, like the one violated in the Bliss case, serve to prevent the unfair dissipation of assets and ensure the availability of funds for restitution to victims. “Bliss lacks the resources to repay the investor-victims of his Ponzi scheme. Bliss victimized them yet again by recruiting his brother-in-law, Kevin Fortney, to liquidate Bliss’ catamaran sailboat and then to lie about it to the court and to investigators. Bliss deliberately violated Judge Shelby’s asset freeze order, recruited a co-conspirator to his cause, and then provided false and misleading information to influence the court’s decision on the matter. Bliss circumvented the SEC’s efforts to protect investors,” Assistant U.S. Attorney Jacob Strain wrote in a sentencing document filed in the case.
The case is being prosecuted by Assistant U.S. Attorney Jacob Strain and SEC Trial Counsel Amy Oliver, who is a Special Assistant U.S. Attorney. The case is being investigated by special agents of the FBI.
Jury Convicts Rochester Man of Narcotics and Firearms Offenses in A Case Involving Two MurdersRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Angelo Ocasio, 41, of Rochester, NY was convicted following a federal jury trial of conspiracy to possess and distribute five or more kilograms of cocaine, 280 or more grams of crack cocaine, one kilogram or more of heroin and a quantity marijuana and of possessing, carrying, using and discharging firearms during, in relation to and in furtherance of the narcotics conspiracy. The firearms charge related to the murder of Jose Troche in January 2010 and a shooting and murder at 137 Cameron Street in July 2009.
The charges carry a mandatory minimum sentence of 10 years in prison, a maximum of life and a $4,000,000 fine.
According to Assistant U.S. Attorneys Everardo A. Rodriguez and Melissa M. Marangola, who handled the prosecution of the case, Ocasio was arrested along with seven other defendants related to a long-term and violent narcotics trafficking ring in the City of Rochester headed by James Kendrick and his brother Pablo "Paul" Plaza.
Four co-defendants have been convicted. Three other co-defendants, including James Kendrick, his brother Pablo Plaza and their mother, Janine Plaza-Pierce, are scheduled to go to trial on June 6, 2016. Their charges include narcotics and firearms related offenses, two murders and several additional shootings. Francisco Santos was murdered in October 1998, his body was found in May 1999 buried on the Cattaraugus Indian Reservation in Erie County, NY. The second murder charged was that of their relative Ryan Cooper between May and July 1999. Cooper’s body has never been found. The murder of Jose Troche on January 14, 2010 in Rochester will also be at issue in the case. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Co-defendant, Angelo Cruz, was sentenced to 25 years in prison today for participating in the drug conspiracy and in the murder of Francisco Santos.
The conviction is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing of Angelo Ocasio is scheduled for September 7, 2016 at 2:30 p.m. before Chief U.S. District Judge Frank P. Geraci who presided over the prosecution of the case.Jicarilla Apache Man Sentenced to 71 Months for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Shane Lewis Vigil, 29, an enrolled member of the Jicarilla Apache Nation who resides in Dulce, N.M., was sentenced today in federal court in Albuquerque, N.M., to 71 months in prison for his assault conviction. Vigil will be on supervised release for three years after completing his prison sentence.
Vigil was arrested on July 24, 2015, on a criminal complaint charging him with assault with a dangerous weapon and assault resulting in serious bodily injury. According to the complaint, Vigil assaulted his girlfriend, a Jicarilla Apache woman, with an aluminum baseball bat on July 20, 2015. Law enforcement authorities learned about the assault when a social worker reported that the victim had been admitted to a hospital after being severely beaten with a baseball bat.
Vigil was indicted on Aug. 12, 2015, and charged with assault with a dangerous weapon, an aluminum baseball bat, and assault resulting in serious bodily injury. The indictment alleged that Vigil committed the crime on July 20, 2015, on the Jicarilla Apache Reservation in Rio Arriba County, N.M.
On Jan. 26, 2016, Vigil pled guilty to a three-count felony information. The first two counts charged Vigil with assault with a dangerous weapon and assault resulting in serious bodily injury, and arose out of the baseball bat attack on July 20, 2015. The third count charged Vigil with an assault arising out of an attack on a male victim on Nov. 21, 2014, which caused the victim to suffer serious bodily injury.
This case was investigated by the Farmington office of the FBI and the Jicarilla Apache Tribal Police Department. Assistant U.S. Attorneys Raquel Ruiz-Velez and Kyle T. Nayback prosecuted the case.
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.
Indictment: Two Used Stolen Identities to Buy iPhones at a DiscountRead the Press Release
KANSAS CITY, KAN. - Two people were charged Wednesday with using stolen identities to sign phone service contracts qualifying them to buy iPhones at a deep discount, Acting U.S. Attorney Tom Beall said.
Ashley K. Lavallee, 29, Candia, N.H., and Jay Leon, 22, Englewood, N.J., were charged in separate indictments with one count of wire fraud and one count of aggravated identity theft. One indictment alleges Lavallee used a stolen identity to sign up for phone service at an AT&T store in Overland Park, Kan. The other indictment alleges Leon used a stolen identity to sign up for phone service at a Best Buy in Overland Park.
If convicted, each of them faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on the wire fraud count, and two years consecutive to other counts and a fine up to $250,000 on the aggravated identity theft charge. The U.S. Secret Service investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
OTHER GRAND JURY INDICTMENTS
Gabriel Soto-Zamudio, 27, Kansas City, Kan., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred March 24, 2016, in Kansas City, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Kansas Bureau of Investigation, Homeland Security Investigations, and the Kansas City Police Department investigated. Special Assistant U.S. Attorney James Ward is prosecuting.
Donta R. Tanner, Jr., 23, Lawrence, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred April 24, 2016, in Wyandotte County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Lawrence Police Department investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Julio Cesar Perez-Madrigal, 23, Kansas City, Kan., is charged with three counts of possession with intent to distribute methamphetamine, one count of possession of a firearm in furtherance of drug trafficking, two counts of unlawful possession of a firearm by a person who is not U.S. citizen, and two counts of unlawful possession of a firearm by a user of controlled substances. The crimes are alleged to have occurred in 2015 and 2016 in Wyandotte County, Kan.
Upon conviction, the crimes carry the following penalties:
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Count one, possession with intent to distribute methamphetamine: not less than five years and not more than 20 years, and a fine up to $5 million.
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Count two, possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
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Counts three and seven, alien in possession of a firearm: A maximum penalty of 10 years and a fine up to $250,000.
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Counts four and eight, unlawful possession of a firearm by a user of controlled substances: a maximum penalty of 10 years and a fine up to $250,000.
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Counts five and six, possession and possession with intent to distribute methamphetamine: Not less than 10 years and a fine up to $10 million.
The Drug Enforcement Administration investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
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Identity TheftMiami Resident Sentenced to 4 Years in Prison for his Participation in an Tax Fraud Scheme Involving the IRS “Get Transcript” ServiceRead the Press Release
A Miami resident was sentenced to 48 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $172,521 for his participation in an identity theft tax fraud scheme where he used stolen personal identification information (PII) to access the IRS “Get Transcript” service and obtain tax records of his identity theft victims.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Timothy Camus, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration (TIGTA), Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and William Hernandez, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Marvin Ricardo Herard, 26, of Miami, previously pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, the IRS maintained a “Get Transcript” service that allowed an individual taxpayer to request and receive a transcript of their IRS tax records online, including line-by-line tax return information for prior years. To obtain access to the “Get Transcript” service, the user was required to create a user account and provide PII.
Log files from the “Get Transcript” service revealed that an email address controlled by defendant Herard attempted to access 38 different taxpayers’ accounts in “Get Transcript”, and had successfully accessed 22 accounts. Additionally, log files captured the IP addresses from which Herard’s email address was used to access the “Get Transcript” service. For the 2014 tax year, over 100 fraudulent tax returns, seeking over $500,000 in refunds, were filed from these IP addresses. The IRS paid out $172,521 in refunds on these fraudulent tax returns. Some of these fraudulent tax returns were for taxpayers whose information was accessed in the “Get Transcript” service using Herard’s email address.
Law enforcement obtained a federal search warrant for the contents of Herard’s email account. The email account contained over 1,150 unique pieces of PII, including names, dates of births, and Social Security numbers. In addition, there were hundreds of automated messages from the IRS “Get Transcript” service, indicating that Herard’s email account had been used to attempt to access numerous taxpayers’ accounts.
Mr. Ferrer commended the investigative efforts of TIGTA, IRS-CI, and NMBPD. The case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Houston Man Indicted for Sending Threatening Email to Texas Attorney General’s OfficeRead the Press Release
HOUSTON – A federal grand jury in Houston has returned a one-count indictment against Syed Kaleem Razvi for sending a threatening email to the Texas Attorney General’s Office and various employees with other state agencies, announced U.S. Attorney Kenneth Magidson.
Razvi, 55, of Houston, is charged with sending a threat over interstate commerce. Specifically, Razvi allegedly sent an email communication on June 8, 2015, to the Texas Attorney General’s Office, Child Support Division, as well as various employees with other Texas agencies. The indictment alleges that the subject line of the email said “Tell Atty General of Texas this.” The communications allegedly threatened the Attorney General of Texas, as well as all those emailed by threatening “to get up in arms against you all,” and by wishing “God burn your houses and burn the bodies of your own children and yourself.” The email also demanded that the Attorney General of Texas return his money or “FACE TERRORISM,” according to the allegations.
If convicted, Razvi faces up to five years in federal prison. Razvi has been in state custody on related charges since December 2015. He is expected to make an initial appearance on the federal indictment in the near future, at which time the U.S. expects to request his continued detention pending trial.
The FBI investigated in conjunction with the Texas Attorney General’s Office - Criminal Investigations Division. Assistant U.S. Attorneys Ted Imperato and Alamdar Hamdani are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Honduran National Indicted for Violations of the Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JORGE EDUARDO VALLEJO, age 37, a citizen of Honduras, was charged today in a one-count Indictment for violations of the Federal Gun Control Act.
According to the Indictment, on or about July 12, 2014, VALLEJO, an alien illegally in the United States, was found in possession of a SCCY, Model CPX-2, 9mm semi-automatic pistol.
If convicted of these charges, VALLEJO faces a maximum term of imprisonment of ten years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Homeland Security Investigations of the U.S. Department of Homeland Security, in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Healthcare Sale Representative Pleads Guilty to Obstructing Federal InvestigationRead the Press Release
BOSTON – A sales representative for multiple healthcare companies pleaded guilty today in U.S. District Court in Boston in connection with obstruction of an investigation into kickbacks paid to medical professionals.
Terrence Kyle Tackett, 49, of Florence, Ky., pleaded guilty to one count of obstruction of a criminal investigation of health care offenses. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Sept. 14, 2016.
From 2012 to 2013, Tackett worked as a sale representative in Kentucky for a California-based healthcare company, and from August 2013 to February 2015, he worked for a Massachusetts pharmaceutical company. During that period, Tackett gave medical professionals gift cards and personal checks in exchange for ordering or prescribing the products he promoted. During a January 2015 meeting with investigators, Tackett falsely denied and attempted to conceal the kickbacks he paid to physicians and their staffs.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, a fine of 250,000 and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge of U.S. Health and Human Services, Office of Inspector General, Office of Investigations; Mark McCormack, Special Agent in Charge of U.S. Food and Drug Administration, Office of Criminal Investigations, Metro Washington Field Office; and Susan Hensley, Regional Director of U.S. Department of Labor, Employee Benefits Security Administration, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Sara Miron Bloom, Young Paik, and Kriss Basil of Ortiz’s Office, with assistance from the Justice Department’s Consumer Protection Branch and the Food and Drug Administration.
Haverhill Resident Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
CONCORD – United States Attorney Emily Gray Rice announced today that Mara Morillo, 40, of Haverhill, Massachusetts, pleaded guilty to conspiracy to distribute, and possess with intent to distribute, oxycodone and cocaine. Morillo appeared before United States District Court Judge Steven J. McAuliffe to enter her guilty plea.
According to documents that were filed in United States District Court and statements in the plea proceeding, Morillo admitted that she sold oxycodone to a cooperating individual in Haverhill, Massachusetts and admitted that she participated in the distribution of cocaine and oxycodone with others individuals in Massachusetts and New Hampshire. Over $18,000 in cash was seized from her residence during the execution of a search warrant in August 2015.
A sentencing hearing has been scheduled for August 30, 2016.
Morillo is one of six individuals indicted by a federal grand jury on September 23, 2015, and charged with conspiracy to distribute, and possession controlled substances with the intent to distribute. The other defendants are: Franklyn Morillo, 41, of Haverhill, Massachusetts; Juan Rojas, 31, of Haverhill, Massachusetts; Justin Bartimus, 35, formerly of Methuen, Massachusetts; Jorge Medina, 25, of Haverhill, Massachusetts; and Michael Lally, 28, of Salem, New Hampshire.
Lally pleaded guilty on March 22, 2016 and his sentencing is scheduled for June 29, 2016. Bartimus pleaded guilty on May 4, 2016 and his sentencing is scheduled for August 30, 2016. The remaining defendants in the drug conspiracy case are scheduled for trial on September 20, 2016.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The Drug Enforcement Administration’s Tactical Diversion Squad led the investigation with assistance from the Haverhill, Massachusetts Police Department, the Methuen, Massachusetts Police Department, and the Massachusetts State Police. It is being prosecuted by Assistant United States Attorney John J. Farley.
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Hastings Woman Sentenced for Making False RepresentationsRead the Press Release
United States Attorney Deborah R. Gilg announced that Blanca Gama, a/k/a Blanca Chumasero-Gomez, age 41, of Hastings, Nebraska, was sentenced for her conviction for making false representations with respect to the requirements of Social Security. Senior United States District Court Judge Lyle E. Strom sentenced Gama to two years of probation and ordered her to perform 100 hours of community service. Stephanie Hagemeier. Paul Younes, and Kearney Hospitality, Inc. were previously sentenced for their roles in hiring Gama.
The investigation revealed that Blanca Gama, a citizen of Mexico who was not lawfully in the United States, was employed as the supervisor of housekeeping at the Holiday Inn Express in Hastings where Hagemeier is employed as the manager. In 2014, Hagemeier learned Gama was under investigation by the Social Security Administration Office of Inspector General. Gama quit her job at the Holiday Inn Express, but later met with Younes who arranged for her to be employed in the housekeeping department at the Fairfield Inn & Suites in Kearney under the name Elizabeth Gomez. Hagemeier was aware that Gama had been hired under those circumstances.
At Gama’s request, Younes later authorized Gama’s re-hire at the Holiday Inn Express in Hastings. In order to support her re-hire, Gama submitted paperwork using a false name and Social Security Number even though she continued to be referred to as Blanca Gama at that location.
This case was investigated by the Social Security Administration Office of Inspector General, and the Department of Homeland Security Immigration and Customs Enforcement.
Glen Burnie Man Sentenced for Laundering over $2 Million Swindled from Individual VictimsRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Kaushik Kanti Modi, age 43, of Glen Burnie, Maryland, a native of India living illegally in the United States, today to time served, which has been approximately 13 and half months, for a money laundering conspiracy arising from a scheme to launder millions of dollars of fraud proceeds obtained from individual victims through a variety of scams. Judge Motz also ordered Modi to forfeit and/or pay restitution of $857,597.02, the amount involved in the money laundering offense that the government has seized or restrained.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Rodney A. Davis of the Treasury Inspector General for Tax Administration; and Chief James W. Johnson of the Baltimore County Police Department.
“Modi’s involvement in this scheme is just another unfortunate example of criminals willing to enrich themselves at the expense of their victims,”said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s sentence should serve as a reminder that these criminals will bear the consequences of their actions and be sent to prison for their crimes.”
“Crimes such as these prey on honest American taxpayers and today’s sentence serves notice to those committing these crimes that we in the law enforcement community will continue to identify, investigate and prosecute them,” said Special Agent in Charge Rodney A. Davis of the Treasury Inspector General for Tax Administration.
According to his plea agreement, Modi received text messages from conspirators instructing him to buy large numbers of stored value cards, principally GreenDot cards, and to forward the PIN numbers of the cards to other unidentified co-conspirators.
Modi’s co-conspirators loaded money onto the stored value cards using a variety of scams. Some of the money came from calls made by persons impersonating IRS employees who convinced innocent taxpayers that they owed taxes to the IRS, and needed to send money to the co-conspirators to avoid arrest and incarceration. On at least two occasions, victims of the IRS impersonation fraud deposited money directly into accounts held in Modi’s name. Other money was derived by offering merchandise for sale on the internet and then failing to provide the merchandise once money was received from the victim-purchaser.
After money was loaded on the stored value cards, Modi was instructed to use the cards to buy money orders, principally MoneyGram money orders at Walmart stores, and then to deposit those money orders into bank accounts either in Modi’s name or the names of others. From January 1, 2014 to March 24, 2015, Modi deposited 241 money orders totaling $2,077,308.20 into his bank accounts. Moreover, Modi frequently bought the money orders using stored value cards that were activated using the identification of identity theft victims.
At the time of his arrest, Modi admitted that he knew that something was not right about the source of the money involved in the transactions, and accordingly, knew that the purpose of those transactions was to conceal the proceeds of unlawful activity.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the IRS – Criminal Investigation, Treasury Inspector General for Tax Administration, and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Evan T. Shea, who prosecuted the case.
Georgia Man Sentenced to 20 Years for Enticement of a MinorRead the Press Release
TALLAHASSEE, FLORIDA – James Deon Korfhage, 37, of Griffin, Georgia, was sentenced yesterday to 240 months in federal prison, after pleading guilty in December 2015 to enticing a minor to engage in sexual activity. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
According to testimony at sentencing, in March 2015, Korfhage met a 17-year-old minor through a website on which he used a false name and represented himself to be a 19-year-old. Korfhage arranged to meet and have sex with the victim in Tallahassee. On March 4, 2015, Korfhage drove from the Atlanta, Georgia, area to Tallahassee. The victim crept from her parents’ home and met Korfhage, who drove her to a local hotel where the two had sex. Law enforcement agents later discovered that the victim had sent Korfhage nude photographs of herself and that Korfhage had taken photographs of the victim during their sexual activities.
On April 24, 2015, Korfhage was arrested in Georgia on the indictment charging him with using the internet to entice the minor victim to engage in sexual activity. Within minutes of being contacted by police, Korfhage deleted the photographs he had taken of the victim from his cellular telephone. However, a forensic examiner was able to recover them later. The examiner found that Korfhage’s phone also contained other child pornography images.
At sentencing, the government offered evidence showing that Korfhage routinely used the internet to solicit minors for sex. The government also introduced evidence that, while pending trial, Korfhage offered to pay others to intimidate the victim and dissuade her from testifying.
U. S. Attorney Canova praised the work of the United States Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Leon County Sheriff’s Office, and the Gwinnett County Police Department, whose joint investigation led to this successful prosecution. U.S. Attorney Canova noted that, “While the internet offers great opportunities for education and entertainment, it also allows anonymous strangers to prey upon vulnerable children. As parents and as prosecutors, nothing is more important than the protection of children.”
“This criminal has stolen from our society. He has robbed children of their innocence and left them with a lifetime of recovery,” said Susan L. McCormick, special agent in charge of HSI Tampa. “This case is an example of how social media can be used to harm children, and we encourage all parents to stay engaged in their children’s digital presence to stop these unimaginable crimes.”
After incarceration, Korfhage will serve 10 years of supervised release, during which he will be required to complete sex offender treatment, will be prohibited from unsupervised contact with children, and will be subject to a search of his residence, possessions, and electronics. He will be required to register as a sex offender in any location where he resides, works, or attends school.
The case was prosecuted by Assistant United States Attorneys Jason R. Coody and Michael T. Simpson.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Genovese Organized Crime Family Members and Associates Charged in Manhattan Federal Court with Racketeering Offenses, Including Murder Conspiracy, Attempted Murder, Extortion Conspiracy, and Illegal Gambling, as Well as Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Madeline Singas, the Nassau County District Attorney, Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), and Thomas C. Krumpter, the Acting Commissioner of the Nassau County Police Department (“NCPD”), announced the unsealing today of a superseding Indictment charging a total of 18 individuals arising out of a multi-year investigation of racketeering activities by members and associates of the Genovese Organized Crime Family of La Cosa Nostra. The Indictment charges four members and associates of the Genovese Family – namely, Genovese Family soldiers ROBERT DEBELLO and STEVEN PASTORE and Genovese Family associates RYAN ELLIS and SALVATORE DELLIGATTI – with racketeering conspiracy, and various of these defendants with involvement in a murder conspiracy, an attempted murder, an extortion conspiracy, and an illegal gambling operation relating to their participation in the criminal affairs of the Genovese Family, and with firearms offenses. The Indictment also charges a number of the remaining 14 defendants with involvement (along with DELLIGATTI) in a murder-for-hire conspiracy, participation in the illegal gambling operation, and firearms offenses. The case, captioned United States v. Robert DeBello, et al., is pending before United States District Judge Laura T. Swain of the Southern District of New York.
Of the 18 defendants charged in the Indictment, 17 are currently in custody, including 13 defendants who were arrested earlier today as part of a coordinated takedown by the FBI, NYPD, and NCPD. The 17 defendants in custody will be presented today before United States Magistrate Judge Ronald L. Ellis of the Southern District of New York.
Manhattan U.S. Attorney Preet Bharara said: “Today’s charges show that the mob continues to wreak havoc in our communities, including through a recent murder conspiracy, attempted murder, and extortion. With today’s charges, we strike an important blow against the Genovese Crime Family. Whether you are an old school made member of the mob or a young street criminal looking to join it, the message today is clear: the life of a mobster is a dead-end street that ends nowhere good. I thank our law enforcement partners at the NYPD, FBI and Nassau County Police Commissioner, as well as, in particular, the Nassau County District Attorney’s Office, for the incredible work in this important case.”
Nassau County District Attorney Madeline Singas said: “Today’s arrests send a strong message that we are disrupting organized crime in New York. Working with our federal and local partners we are focused on breaking up criminal organizations that try to operate outside of the law. The allegations against some of the defendants – including conspiracy to commit murder, racketeering and gambling – are very serious, and we will continue our joint efforts to dismantle these violent criminal enterprises.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “The crimes of extortion for so-called ‘protection,’ illegal gambling businesses, and conspiracy to commit murder are woven into the history of organized crime families, but so are the federal racketeering charges that wise guys face after committing those criminal activities. Today, 18 defendants were indicted as part of a multi-year investigation by the FBI and our partners at Nassau County Police Department and New York City Police Department. As long as organized crime members and associates keep their criminal ways, we will keep investigating and bringing charges against them.”
NYPD Commissioner Bratton William J. Bratton said: “This racket was as old as La Cosa Nostra. From murder for hire to extortion and gambling, there wasn’t a scheme that was off limits to these soldiers and associates of the Genovese family. The mob may be diminished, but it’s not dead, and it requires our continued vigilance. I commend of the FBI, Nassau County Police, U.S. Attorney, and team of NYPD detectives who made today’s arrests possible.”
Acting NCPD Commissioner Thomas C. Krumpter said: “The indictment of these members of the Genovese Crime Family is an example of how partners in law enforcement utilize talented personnel and resources to work together and bring individuals to justice. The Nassau County Police Department is committed to working with our fellow law enforcement partners to ensure public safety.”
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
Four of the defendants – ROBERT DEBELLO, STEVEN PASTORE, RYAN ELLIS, and SALVATORE DELLIGATTI – are members or associates of the Genovese Organized Crime Family of La Cosa Nostra. The Genovese Family is a criminal organization whose members have engaged in numerous acts of violence and other crimes in the Southern District of New York and elsewhere, including, as relevant in this case, conspiracy to commit murder, attempted murder, conspiracy to commit extortion, and the operation of an illegal gambling business. DEBELLO and PASTORE were “made” soldiers of the Genovese Family, and ELLIS and DELLIGATTI were associates of the Genovese Family. In his capacity as a Genovese Family soldier, DEBELLO reported directly to a Genovese Family captain, often at a social club in lower Manhattan within the Southern District of New York. From at least in or about 2008 through in or about May 2016, DEBELLO, PASTORE, ELLIS, and DELLIGATTI conspired to participate in the criminal affairs of the Genovese Family through a pattern of racketeering activity. For example, in connection with their involvement in the racketeering activity of the Genovese Family, DEBELLO as well as ELLIS and DELLIGATTI participated in a 2014 conspiracy to commit a murder, in an attempted murder, in a conspiracy to commit extortion, and in the operation of an illegal gambling business (the “Illegal Gambling Business”), and committed firearms offenses. PASTORE was also involved in the operation of the Illegal Gambling Business.
Five of the defendants – LUIGI ROMANO, BERTRAM DUKE, TYRONE MCCULLUM, MARCUS GRANT, and SHARIF BROWN – participated in a conspiracy along with Genovese Family associate SALVATORE DELLIGATTI to commit a murder for hire, and committed a related firearms offense.
The nine remaining defendants – LUIGI CAMINITI, SCOTT JACOBSON, FRANK CELSO, JOSEPH TEDESCO, MICHAEL VIGORITO, MICK SOKOL, SPYRO ANTONAKOPOULOS, MICHAEL KARNBACK, and JONATHAN DESIMONE – were involved in the operation of the Illegal Gambling Business.
* * *
Set forth below is a chart containing the names, ages, residences, charges, and maximum penalties for the defendants. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by Judge Swain.
Mr. Bharara praised the outstanding investigative work of the FBI, the NYPD’s Detective Bureau, Criminal Enterprise Investigations, and the NCPD. He also thanked the Nassau County District Attorney’s Office for their participation and support in this ongoing investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Samson Enzer, James McDonald, and Jordan Estes, as well as Special Assistant United States Attorney Jeremy Glicksman, are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
16-122 ###
United States v. Robert DeBello, et al., S4 15 Cr. 491 (LTS)
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering conspiracy
18 U.S.C. § 1962(d)
ROBERT DEBELLO
STEVEN PASTORE
RYAN ELLIS
SALVATORE DELLIGATTI
20 years in prison
2
Conspiracy to commit murder in aid of racketeering activity
18 U.S.C. § 1959(a)(5)
ROBERT DEBELLO
RYAN ELLIS
SALVATORE DELLIGATTI
10 years in prison
3
Attempted murder in aid of racketeering activity
18 U.S.C. § 1959(a)(5)
ROBERT DEBELLO
RYAN ELLIS
SALVATORE DELLIGATTI
10 years in prison
4
Conspiracy to commit murder for hire
18 U.S.C. § 1958
SALVATORE DELLIGATTI
LUIGI ROMANO
BERTRAM DUKE
TYRONE MCCULLUM
MARCUS GRANT
SHARIF BROWN
10 years in prison
5
Participating in an illegal gambling business
18 U.S.C. §§ 1955 and 2
ROBERT DEBELLO
STEVEN PASTORE
RYAN ELLIS
SALVATORE DELLIGATTI
LUIGI CAMINITI
SCOTT JACOBSON
FRANK CELSO
JOSEPH TEDESCO
MICHAEL VIGORITO
MICK SOKOL
SPYRO ANTONAKOPOULOS MICHAEL KARNBACK
JONATHAN DESIMONE
5 years in prison
6
Use of Firearms for Crimes of Violence
18 U.S.C. §§ 924(c)(1)(A)(i) and 2
ROBERT DEBELLO
RYAN ELLIS
Life in prison
7
Use of Firearms for Crimes of Violence
18 U.S.C. §§ 924(c)(1)(A)(i) and 2
SALVATORE DELLIGATTI
Life in prison
8
Use of a Firearm for Murder-for-Hire Conspiracy
LUIGI ROMANO
BERTRAM DUKE
TYRONE MCCULLUM
MARCUS GRANT
SHARIF BROWN
Life in prison
DEFENDANT
AGE
RESIDENCE
ROBERT DEBELLO
a/k/a “Old Man”
a/k/a “Bobby”
a/k/a “Grandpa”
74
Whitestone, Queens, NY
STEVEN PASTORE
56
Staten Island, NY
RYAN ELLIS
a/k/a “Joseph Princi”
a/k/a “Baldy”
a/k/a “Lazy Eye”
a/k/a “Zeus”
34
Bayside, Queens, NY
SALVATORE DELLIGATTI
a/k/a “Jay”
a/k/a “Fat Sal”
40
Oakland Gardens, Queens, NY
LUIGI ROMANO
a/k/a “Louie Sunoco”
38
Whitestone, Queens, NY
BERTRAM DUKE
a/k/a “Birdy”
48
New York, NY
TRYONE MCCULLUM
a/k/a “Ty”
37
Bronx, NY
MARCUS GRANT
27
Bronx, NY
SHARIF BROWN
a/k/a “QB”
31
Bronx, NY
LUIGI CAMINITI
35
Whitestone, Queens, NY
SCOTT JACOBSON
31
Old Beth Page, Long Island, NY
FRANK CELSO
50
West Hempstead, Long Island, NY
JOSEPH TEDESCO
44
Brooklyn, NY
MICHAEL VIGORITO
35
Massapequa, Long Island, NY
MICK SOKOL
41
Brooklyn, NY
SPYRO ANTONAKOPOULOS
31
Elmont, Long Island, NY
MICHAEL KARNBACH
a/k/a “Combat”
43
Brooklyn, NY
JONATHAN DESIMONE
34
Huntington, Long Island, NY
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described in the Indictment should be treated as an allegation.
Fumigation Company and Two Individuals Sentenced in Connection with Illegal Pesticide Application Resulting in Injuries to a MinorRead the Press Release
Sunland Pest Control Services Inc. (Sunland), Grenale Williams, 53, of South Bay, Florida, and Canarie Deon Curry, 40, of Riviera Beach, Florida, were sentenced today in federal court in Fort Pierce before U.S. District Court Judge Jose E. Martinez for the Southern District of Florida in connection with the illegal application of a pesticide that resulted in injuries to a minor child.
U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida and Acting Special Agent in Charge Andy Castro for the U.S. Environmental Protection Agency (EPA), Criminal Investigation Division, Atlanta Area Office, made the announcement.
Sunland was sentenced to five years of probation. Williams and Curry were sentenced to one year in prison.
Sunland, Williams and Curry, previously pleaded guilty for their involvement in the illegal application of sulfuryl fluoride (a pesticide), contrary to the label’s safety requirements, in violation of Title 7, United States Code, Section 136i(b)(1)(B). Sunland also pleaded guilty to making false statements in connection with the investigation, in violation of Title 18, United States Code, Section 1001.
According to court documents, the federal Insecticide, Fungicide and Rodenticide Act (FIFRA) regulates the use of pesticides, including those designated for restricted use due to their potential adverse effects, including serious injury. Application of restricted use pesticides is limited to certified applicators or those under the direct supervision of certified applicators. Sulfuryl fluoride, a commonly used antimicrobial in structural fumigations for termites, is one such restricted use pesticide that is registered with the EPA. At the heart of the safe use of such pesticides is compliance with the product label, which includes the written, printed, or graphic matter associated with the pesticide. Under FIFRA, the label is the law, and strict compliance with it is critical to the safe application of the restricted use pesticide. Federal law also prohibits the making of material false statements in a matter within the jurisdiction of the EPA.
Court records and a joint factual statement indicate that in June 2015 residents contracted with Terminix for a home fumigation for termites under an existing warranty. Terminix, without warning or approval, subcontracted the job to Sunland. The fumigation occurred over a weekend and the residents returned to their home on Sunday, Aug. 16, 2015, to find a clearance tag on the front door indicating that it was safe to enter. During the evening several family members became ill, and medical attention was sought for their nine year old son. It was determined that the family’s symptoms were consistent with pesticide poisoning.
A subsequent investigation revealed that contrary to the label requirements for use of the potentially deadly gas, the defendants failed, among other violations, to: provide the Fact Sheet for the pesticide being used; have the required number of properly trained personnel on site following the application of the pesticide; properly aerate the fumigated space; and conduct clearance testing with an approved and calibrated Low Fumigant Level Detection Device. In addition, a clearance tag was left at the premises indicating it was safe to enter when in fact the requisite procedures had not been completed. The family was falsely assured by Terminix and Sunland that the aeration and clearance requirements had been met. Additionally, Sunland representatives misrepresented the specific brand of pesticide that was used and indicated that the fumigation, aeration and clearance of the home was in accordance with the law when in truth and fact, the defendants were not in compliance.
“Today’s sentencing sends an important message to both corporations and civilians regarding the importance of federal pesticide regulation compliance and the criminal penalties that will be imposed upon the violators,” said U.S. Attorney Ferrer. “Everyone must abide by established safety protocol in order to protect the public from potential harm.”
“We have environmental laws in place to ensure that pesticides are applied safely and responsibly,” said Acting Special Agent in Charge Castro. “When a fumigant is applied illegally, families can become victims of a serious and preventable crime. EPA continues to work in close partnership with the Justice Department to bring cases against those that knowingly threaten the health and safety of the American public.”
U.S. Attorney Ferrer commended the investigative efforts of the EPA, the Florida Department of Agriculture and Consumer Services, Bureau of Pesticide and Incident Response, and the Florida Office of Agricultural Law Enforcement. The case was prosecuted by Special Assistant U.S. Attorney Jodi A. Mazer and Assistant U.S. Attorney Thomas Watts-FitzGerald of the Economic & Environmental Crimes Section.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fumigation Company and Two Individuals Sentenced in Connection with Illegal Pesticide Application Resulting in Injuries to a MinorRead the Press Release
Sunland Pest Control Services, Inc. (Sunland), Grenale Williams, 53, of South Bay, and Canarie Deon Curry, 40, of Riviera Beach, were sentenced today in federal court in Fort Pierce before United States District Court Judge Jose E. Martinez in connection with the illegal application of a pesticide that resulted in injuries to a minor child.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Andy Castro, Acting Special Agent in Charge, United States Environmental Protection Agency (EPA), Criminal Investigation Division, Atlanta Area Office, made the announcement.
Sunland was senetenced to five years of probation. Williams and Curry were sentenced to one year in prison.
Sunland, Williams, and Curry, previously pled guilty for their involvement in the illegal application of sulfuryl fluoride (a pesticide), contrary to the label’s safety requirements, in violation of Title 7, United States Code, Section 136i(b)(1)(B). Sunland also pled guilty to making false statements in connection with the investigation, in violation of Title 18, United States Code, Section 1001.
According to court documents, the federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) regulates the use of pesticides, including those designated for restricted use due to their potential adverse effects, including serious injury. Application of restricted use pesticides is limited to certified applicators or those under the direct supervision of certified applicators. Sulfuryl fluoride, a commonly used antimicrobial in structural fumigations for termites, is one such restricted use pesticide that is registered with the EPA. At the heart of the safe use of such pesticides is compliance with the product label, which includes the written, printed, or graphic matter associated with the pesticide. Under FIFRA, the label is the law, and strict compliance with it is critical to the safe application of the restricted use pesticide. Federal law also prohibits the making of material false statements in a matter within the jurisdiction of the EPA.
Court records and a joint factual statement indicate that in June 2015 residents contracted with Terminix for a home fumigation for termites under an existing warranty. Terminix, without warning or approval, subcontracted the job to Sunland. The fumigation occurred over a weekend and the residents returned to their home on Sunday, August 16, 2015 to find a clearance tag on the front door indicating that it was safe to enter. During the evening several family members became ill, and medical attention was sought for their nine year old son. It was determined that the family’s symptoms were consistent with pesticide poisoning.
A subsequent investigation revealed that contrary to the label requirements for use of the potentially deadly gas, the defendants failed, among other violations, to: provide the Fact Sheet for the pesticide being used; have the required number of properly trained personnel on site following the application of the pesticide; properly aerate the fumigated space; and conduct clearance testing with an approved and calibrated Low Fumigant Level Detection Device. In addition, a clearance tag was left at the premises indicating it was safe to enter when in fact the requisite procedures had not been completed. The family was falsely assured by Terminix and Sunland that the aeration and clearance requirements had been met. Additionally, Sunland representatives misrepresented the specific brand of pesticide that was used and indicated that the fumigation, aeration, and clearance of the home was in accordance with the law when in truth and fact, the defendants were not in compliance.
United States Attorney Wifredo A. Ferrer stated, “Today’s sentencing sends an important message to both corporations and civilians regarding the importance of federal pesticide regulation compliance and the criminal penalties that will be imposed upon the violators. Everyone must abide by established safety protocol in order to protect the public from potential harm.”
“We have environmental laws in place to ensure that pesticides are applied safely and responsibly,” said Andy Castro, Acting Special Agent in Charge of EPA’s criminal enforcement program in Florida. “When a fumigant is applied illegally, families can become victims of a serious and preventable crime. EPA continues to work in close partnership with the Justice Department to bring cases against those that knowingly threaten the health and safety of the American public.”
Mr. Ferrer commended the investigative efforts of the EPA, the Florida Department of Agriculture and Consumer Services, Bureau of Pesticide and Incident Response, and the Florida Office of Agricultural Law Enforcement. The case was prosecuted by Special Assistant U.S. Attorney Jodi A. Mazer and Assistant U.S. Attorney Thomas Watts-FitzGerald of the Economic & Environmental Crimes Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.