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10 May 2016
New Kensington Man Sentenced to 12 Years in Prison for Violating Gun and Drug LawsRead the Press Release
PITTSBURGH – A Westmoreland County resident has been has been sentenced in federal court to 144 months’ imprisonment, followed by five years’ supervised release, on his conviction of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Kevin Witcher, 41, of New Kensington, Pennsylvania.
According to information possessed by the Court, on or about Feb. 3 and 4, 2015, Witcher, a convicted felon, illegally possessed a Ruger, .357 caliber revolver, and a Zastava Arms PAP, Model M85PV pistol. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm. Additionally, Witcher possessed with intent to distribute 100 grams or more of heroin, a Schedule I controlled substance, and 500 grams or more of cocaine, a Schedule II controlled substance, and distributed and possessed with intent to distribute an additional quantity of heroin, while possessing the two firearms in furtherance of drug trafficking.
Assistant United States Attorney Katherine A. King prosecuted this case on behalf of the government.
The Pennsylvania State Police and the Drug Enforcement Administration conducted the investigation leading to the successful prosecution of Witcher.
New Jersey Man Sentenced to 15 Years in Prison for Conspiring to Provide Material Support to ISILRead the Press Release
A West New York, New Jersey, man today was sentenced to 15 years in prison for conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. The announcement was made by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Paul J. Fishman of the District of New Jersey and Special Agent in Charge Timothy Gallagher of the FBI’s Newark Division.
Alaa Saadeh, 24, was sentenced by U.S. District Judge Susan D. Wigenton of the District of New Jersey, after pleading guilty on Oct. 29, 2015, to an information charging him with one count of conspiring with others to provide material support to ISIL. In addition to the prison term, Judge Wigenton sentenced Saadeh to a lifetime of supervised release.
“With this sentence, Alaa Saadeh is being held accountable for conspiring with his brother and others to travel overseas to join ISIL,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is counterterrorism and we will continue to pursue justice against those who seek to provide material support to designated foreign terrorist organizations.”
“Saadeh didn’t just plan to join ISIL, he facilitated his brother’s overseas travel and deliberately took steps to conceal the scheme from law enforcement,” said U.S. Attorney Fishman. “Today’s sentence is an appropriate punishment for his role in a conspiracy that would have supplied new recruits to a terrorist organization that regularly threatens American lives at home and abroad.”
“I want to commend the work of the FBI’s Joint Terrorism Task Force investigators and the prosecutors in the U.S. Attorney’s Office who worked countless hours throughout this investigation to protect the community in their execution of the FBI’s Counterterrorism strategy to detect, penetrate and disrupt potential acts of terrorism in the United States and abroad,” said Special Agent in Charge Gallagher.
According to documents filed in this and related cases and statements made in court:
Saadeh admitted that prior to his arrest on June 29, 2015, he planned to travel overseas to join ISIL along with others. Saadeh discussed the plans to join ISIL with his brother, Nader Saadeh, Samuel Rahamin Topaz and Munther Omar Saleh, and admitted that at various times each of them indicated that they wanted to join ISIL. Saadeh also admitted that he watched ISIL-related videos with Nader Saadeh and Topaz, some of which depicted the execution of individuals – both Muslim and non-Muslim – regarded by ISIL as enemies.
On May 5, 2015, Nader Saadeh, departed the United States with plans to travel overseas to join ISIL as part of the conspiracy. Saadeh admitted assisting Nader Saadeh with these plans by letting him purchase airline tickets using Saadeh’s credit card, removing the SIM card from Nader’s smartphone and resetting the smartphone in an effort to avoid detection. Saadeh also admitted that Saleh assisted Nader Saadeh by giving him contact information for an individual who would facilitate Nader Saadeh’s travel from Turkey to ISIL in Syria.
Saadeh admitted that after his brother left the United States, Saleh and Topaz intended to travel overseas to join ISIL. After becoming aware that the FBI was investigating this matter, Saadeh instructed an individual who knew of Nader Saadeh’s support for ISIL to lie if questioned by the FBI on the subject. Saadeh told this individual to “just play stupid,” “pretend it never happened” and “keep it honest up to a point.”
Saadeh admitted to knowing that ISIL was a designated terrorist organization and was taking over territory overseas, expelling non-Muslims from their homes and executing individuals who did not obey ISIL’s commands.
Saadeh’s alleged co-conspirators are being prosecuted and are currently in federal custody. Topaz and Nader Saadeh both previously pleaded guilty to conspiring to provide material support to ISIL and await sentencing.
Saleh has been indicted on terrorism-related charges in the Eastern District of New York. The charges and allegations against Saleh are merely accusations, and he is presumed innocent unless and until proven guilty.
Assistant Attorney General Carlin and U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, under the direction of Special Agent in Charge Gallagher, and the Joint Terrorism Task Force with the investigation leading to today’s sentencing.
The case is being prosecuted by Assistant U.S. Attorneys L. Judson Welle, Dennis C. Carletta and Francisco J. Navarro of the District of New Jersey, with assistance from Trial Attorney Robert Sander of the National Security Division’s Counterterrorism Section.
Navajo Man Sentenced to 108 Months’ Imprisonment for Voluntary ManslaughterRead the Press Release
PHOENIX, Ariz. – On May 9, 2016, Douglas Lawrence Bedell, Jr., 31, of Dilkon, Arizona, a member of the Navajo Nation, was sentenced by U.S. District Judge Diane J. Humetewa to 108 months’ imprisonment. Bedell had previously pleaded guilty to voluntary manslaughter.
On Jan. 4, 2015, Bedell killed the victim, Brian Lee, also, a member of the Navajo Nation, by stabbing him in the throat. The incident occurred on the Navajo Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Department of Criminal Investigations. The prosecution was handled by Cassie Bray Woo and Brandon Brown, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-15-8023-PCT-DJH
RELEASE NUMBER: 2016-043_Bedell
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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.
National Park Service Recognizes Two United States Attorney’s Office EmployeesRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Assistant United States Attorney Wayne Ault and Senior Civil Investigator Paul Drapac were recognized by the National Park Service, Indiana Dunes National Lakeshore for their outstanding work in a civil case to recover damages to park property.
According to Park Superintendent Paul Labovitz; “On March 10, 2012, an Indiana Harbor Belt train passing through the western portions of Indiana Dunes National Lakeshore started a series of wildfires. As the fires raced through the park, they injured or destroyed a variety of park resources, including habitat for the Karner Blue Butterfly, a federally endangered species. These dangerous fires not only devastated natural and man-made resources, but they also jeopardized the safety of park visitors and local residents. At one point during the emergency, fires threatened several homes resulting in the partial evacuation of the Town of Ogden Dunes.”
According to documents in the case, on February 1, 2016 the Indiana Harbor Belt Railroad Company entered a stipulation and agreed judgment for the damages caused to the Indiana Dunes National Lakeshore. After the Court entered judgment, the company paid $72,500 for the damage it caused to the Indiana Dunes National Lakeshore.
This case was the result of an investigation by the National Park Service. This case was handled by Assistant United States Attorney Wayne Ault and Senior Civil Investigator Paul Drapac.
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Martinsburg, WV man pleads guilty to heroin traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Matthew Dylan Harrison, 25, of Martinsburg, pled guilty today to heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Harrison sold heroin in June 2014 in Berkeley County, West Virginia. He pled guilty today to one count of “Distribution of Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney Stephanie Taylor, also of the Berkeley County, West Virginia Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Malden Man Pleads Guilty to Armed Bank RobberyRead the Press Release
Boston – A Malden man pleaded guilty today in U.S. District Court in Boston to robbing the Hingham Institute for Savings Bank in October 2015.
Anthony Pantone, 56, pleaded guilty to one count of armed bank robbery. U.S. District Court Judge Indira Talwani scheduled sentencing for Aug. 1, 2016.
On Oct.9, 2015, two individuals entered the Hingham Institute for Savings Bank in Boston’s Beacon Hill neighborhood. While one individual, later identified as Russell Dinovo, jumped over the teller’s counter and stole money, the other individual, identified as Pantone, remained in the lobby holding what appeared to be a handgun. During the robbery, Pantone repeatedly said to Dinovo, “hurry up, let’s go” and “get the drawer.” Pantone also told the tellers not to look at the robbers. After putting $16,320 in a duffel bag, the two individuals fled the bank on foot, and were captured with the duffel bag shortly thereafter in a cab. In addition to the cash, an item that looked like a handgun, but was determined to be a fake gun was found in the duffle bag.
Dinovo was charged in a separate indictment with one count of armed bank robbery. His case is pending before U.S. District Court Judge Richard G. Stearns.
The charging statute provides a sentence of no greater than 25 years in prison, five years of supervised release a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Office; and Boston Police Commissioner William Evans, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Local Teacher Arrested on Child Pornography ChargesRead the Press Release
HOUSTON – A 50-year-old Houston man has been charged with distribution, receipt and possession of child pornography, announced U.S. Attorney Kenneth Magidson.
Authorities arrested Jason Dion Johnson Friday, May 6, 2016. He made his initial appearance yesterday, at which time he was ordered into custody pending a detention hearing which is set for tomorrow at 10:00 a.m. before U.S. Magistrate Judge Mary Milloy.
At the time of the investigation, Johnson was employed as a 7th grade Social Studies teacher at Beechnut Academy in Houston, according to the charges.
The investigation began Dec. 6, 2015, as the FBI sought to identify persons using peer-to-peer software to traffic in child pornography, according to the criminal complaint filed in the case. According to the charges, authorities soon discovered a specific computer as offering to participate in the distribution of child pornography movies. Johnson was allegedly identified as the person linked to that computer.
Law enforcement executed a search warrant May 6, 2016, at Johnson’s Houston residence, at which time the criminal complaint alleges investigators found a number of videos and images of prepubescent girls being sexually exploited. Additionally, agents allegedly found several unmarked VHS tapes which revealed the presence of what appeared to be a hidden camera video from a changing area within a school. On these tapes, there are young female students who are observed to be entering the camera’s field of view and removing their clothing while in the process of changing into a uniform, according to the complaint.
Authorities do not believe the footage was taken at Beechnut Academy.
If convicted, Johnson faces a minimum of five and up to 20 years imprisonment for the distribution and receipt as well as another 10 years for the possession of child pornography charges.
FBI investigated.
This case, prosecuted by Assistant U.S. Attorney Kimberly Ann Leo, 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."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.###
Kentucky Tax Return Preparer Pleads Guilty to Federal Tax CrimesRead the Press Release
A Kentucky man pleaded guilty in the U.S. District Court for the Eastern District of Kentucky today to one count of conspiracy to defraud the United States with respect to claims, one count of wire fraud and one count of aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kerry B. Harvey of the Eastern District of Kentucky.
Brian Hamilton admitted that during the years 2011 and 2012 he conspired with others, including his brother, Billy Ray Hamilton, Patsy Carnes and Diana Hill to file false tax returns from the Bailey Switch Pawn Shop in Knox County, Kentucky. According to the plea agreement, the Hamiltons prepared and electronically filed with the Internal Revenue Service (IRS) at least 31 tax returns that contained false and fraudulent information regarding wages, self-employment income, expenses, filing statuses and dependents. The Hamiltons did not list their names as return preparers on these tax returns. In some cases, the Hamiltons filed false tax returns without the knowledge or permission of the taxpayers named on the returns. To aid in the preparing and filing of false tax returns, Hill obtained personal identifying information and Carnes was responsible for keeping files of that information and providing it to the Hamiltons.
He faces a statutory maximum sentence of 10 years in prison for the conspiracy charge and 20 years in prison for the wire fraud charge. He also faces a mandatory two year prison term for the aggravated identity theft charge, which will be in addition to any other term of imprisonment he receives. Hamilton also faces financial penalties, supervised release and restitution.
In January, Carnes and Hill each pleaded guilty to one count of conspiracy to defraud the United States with respect to claims. On April 20, Billy Ray Hamilton, pleaded guilty to conspiracy to defraud the United States, wire fraud and aggravated identity theft for his role in the scheme. He is scheduled to be sentenced on Aug. 2.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Harvey commended special agents of IRS – Criminal Investigation, who investigated the case and Assistant U.S. Attorney Neeraj Gupta of the Eastern District of Kentucky and Trial Attorney Abigail Burger Chingos of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Kansas Sex Offender Charged with Child PornographyRead the Press Release
BOSTON – A previously convicted sex offender was arrested Friday, May 6, 2016 in Kansas in connection with distributing child pornography to a currently incarcerated federal inmate.
Christopher Saemisch, 58, was charged in a criminal complaint with one count of distribution of child pornography. He was arrested on Friday while attending an event at a nudist retreat in McLouth, Kansas. Saemisch was ordered detained during an initial hearing in U.S. District Court in Kansas yesterday afternoon. He will appear in U.S. District Court in Massachusetts on May 31, 2016.
According to the complaint, on March 30, 2016, federal agents received information regarding Saemisch from an inmate at FMC-Devens who has been incarcerated since 1997 for child exploitation offenses. The inmate told agents that he had communicated with Saemisch, a registered sex offender living in Kansas City, who admitted to looking at and storing child pornography as well as his expressed interested in traveling to Europe to have sex with children. The inmate allegedly knew Saemisch from when they were previously incarcerated at the same federal prison facility.
Agents reviewed the inmate’s communications with Saemisch, which included special coded language to discuss the collection and distribution of child pornography. The inmate confirmed that they used the code word “antiques,” when referring to child pornography and the code word “puppies,” to refer to children. Agents then initiated an undercover operation using the inmate to communicate with Saemisch. During their monitored conversations on various messaging apps and web platforms, Saemisch helped the inmate set-up accounts to receive and exchange child pornography, and allegedly sent him child pornography he had stored on various file storage sites. Saemisch was arrested on May 6, 2016 at Gaea Retreat Center in Kansas.
The charging statute provides for a mandatory minimum sentence of 15 years and no greater than 40 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Joe Norwood, Northeast Regional Director of the Federal Bureau of Prisons, made the announcement today. Assistance was also provided by the United States Attorney’s Office for the District of Kansas, as well as the Johnson County and Leavenworth County Sheriffs’ Departments in Kansas. The case is being prosecuted by Assistant U.S. Attorney Jordi de Llano of Ortiz’s Major Crimes Unit.
Members of the public who have questions, concerns or information related to this case, or any information relating to the sexual exploitation of children, should call (617) 748-3274.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’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, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Jury Convicts KC Man of Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man who was wounded in a shoot-out with police officers was convicted in federal court today of illegally possessing a firearm.
Cahlan A. Clay, 28, of Kansas City, was found guilty of being a felon in possession of a firearm. Clay, who has two prior felony convictions, illegally possessed a Jimenez Arms 9mm handgun on Sept. 23, 2012.
According to trial testimony, two uniformed Kansas City police officers who were working off-duty heard multiple gunshots from the area of the Club Luna nightclub, 1520 Grand Ave., at approximately 2:45 a.m. on Sept. 23, 2012. As the officers approached, Clay raised his firearm and pointed it at one of the officers. The officer saw a muzzle flash but was unable to return fire because of the people running in his direction. Clay began running south on Grand Avenue with the officer in pursuit. Clay turned and pointed the gun in the officer’s direction a second time and the officer returned fire. Clay fell when he reached the corner of 16th and Grand.
As the officer turned the corner at 16th and Grand, he found Clay, who had been shot twice, sitting on the ground and leaning against a building with a gun in his hand, pointed at the officer. Clay complied after being told to drop the gun.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Clay has a prior felony conviction for aggravated battery.
Under federal statutes, Clay 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.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about an hour and a half before returning the guilty verdict to U.S. District Judge Roseann Ketchmark, ending a trial that began Monday, May 9, 2016.
This case is being prosecuted by Assistant U.S. Attorneys Patrick Edwards and Courtney R. Pratten. It was investigated by the Kansas City, Mo., Police Department.
Judge Sentences Pittsburgh Heroin Dealer to 20 Years in Federal PrisonRead the Press Release
PITTSBURGH. – A resident of Allegheny Count, Pennsylvania has been sentenced in federal court to 240 months, followed by 10 years supervised release, on his conviction of possession with intent to distribute 100 grams or more of heroin, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence yesterday on Rodney Howard, age 31, of Pittsburgh, Pennsylvania.
According to information presented to the court, on or about September 18, 2014, Howard possessed with the intent to distribute 100 grams or more of a mixture and substance which contained heroin, a Schedule I controlled substance.
Assistant United States Attorneys Cindy K. Chung and Stephen Gilson prosecuted this case on behalf of the government.
U.S. Attorney David Hickton commended the Federal Bureau of Investigation and the Allegheny County Sheriff’s Office for conducting the investigation that led to the successful prosecution of Howard.
Jefferson County, WV man pleads guilty to traveling to engage in sexual conduct with minor victimRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joseph Robert Paper, 32, of Ranson, West Virginia, pled guilty today to traveling across state lines with the intent to engage in sexual conduct with a minor victim, United States Attorney William J. Ihlenfeld, II, announced.
In January 2016, Paper transported a minor female across state lines from Pennsylvania into West Virginia with the intent to engage in illicit sexual conduct. He pled guilty today to one count of “Travel with Intent to Engage in Illicit Sexual Conduct.” He faces up to 30 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn Adkins prosecuted the case on behalf of the government. The West Virginia State Police Crimes Against Children Unit investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Iowa Woman Convicted of Making a False Statement in an Immigration PetitionRead the Press Release
A woman who made a false statement in an immigration petition was convicted by a jury on May 9, 2016, after a one-day trial in federal court in Cedar Rapids.
Tamie Marie Samuels, age 46, from North Liberty, Iowa, was convicted of one count of making a false statement in an immigration matter. The verdict was returned Monday afternoon following about thirty minutes of jury deliberations.
The evidence at trial showed that on March 11, 2015, Samuels filed an immigration petition to help her husband, who she married on February 3, 2015, gain legal status to remain in the United States. Samuels’ husband is from Jamaica and he entered the United States on a visitor visa on February 1, 2015. In the immigration petition, Samuels falsely claimed she had never filed a petition for an alien relative before. Samuels had previously filed a petition for an alien relative in 1997 for her second husband who was from Peru. United States Citizenship and Immigration Services (USCIS) reviews immigration petitions and investigates whether the marital relationships indicate marriage fraud. By denying that she filed a previous immigration petition, USCIS was unaware of Samuels’ previous filing which could have impacted USCIS’ review of the new petition.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Samuels remains free on bond previously set pending sentencing. Samuels faces a possible maximum sentence of ten years imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by the Department of Homeland Security, United States Immigration and Customs Enforcement, Homeland Security Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-0001.
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Husband and Wife Conceal Death of Parent for More Than a Decade to Steal Social Security Retirement BenefitsRead the Press Release
Special Assistant U.S. Attorney Jeffrey D. Hill (619) 546-7924
NEWS RELEASE SUMMARY – May 10, 2016
SAN DIEGO – Terry Lee Anderson and Melanie Jane Anderson of Watauga, Texas, pleaded guilty today in federal court to theft charges, admitting they concealed the death of Melanie’s father, Mervin Hartman, thereby stealing approximately $100,000 in Social Security retirement benefits.
According to court documents, Mervin Hartman died in January 2002 while living in the Philippines. Normally, the Social Security Administration automatically ceases payments upon the death of a retiree, but in this case no death certificate or other notification was provided due to Hartman’s death overseas. As a result, the Social Security Administration continued to directly deposit monthly retirement benefits through 2013 – at which time the SSA/OIG investigation uncovered his death overseas.
The investigation revealed that Hartman’s bank account had been kept active after his death, and that the only people who had accessed the account and withdrawn the funds were the Andersons, who were then living in the Southern District of California.
In entering their guilty pleas, each of the defendants admitted that they had concealed Mervin Hartman’s death from the Social Security Administration and from his bank. They also admitted that they specifically knew Hartman’s retirement benefits should not have continued after his death, and that they stole the money and converted it to their own use.
As a part of their plea agreement, the Andersons agreed to pay restitution in the amount of $95,877.78 to the Social Security Administration. Both are scheduled to be sentenced on August 15, 2016, before U.S. District Judge Marilyn L. Huff.
DEFENDANT Criminal Case No. 16cr1002-H
Terry Lee Anderson Watauga, TX Age: 70
Melanie Jane Anderson Watauga, TX Age: 65
SUMMARY OF CHARGES
Theft of Public Property – Title 18, U.S.C., Section 641
Maximum penalty: 10 years’ imprisonment and $250,000 fineAGENCIES
Social Security Administration / Office of Inspector General
Hudson County, New Jersey, Man Sentenced to 15 Years in Prison for Conspiring to Provide Material Support to ISILRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 15 years in prison for conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, U.S. Attorney Paul J. Fishman, Assistant Attorney General for National Security John P. Carlin, and Special Agent in Charge Timothy Gallagher of the FBI’s Newark Division announced.
Alaa Saadeh, 24, of West New York, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiring with others to provide material support to ISIL. Judge Wigenton imposed the sentence today in Newark federal court.
“Saadeh didn’t just plan to join ISIL: he facilitated his brother’s overseas travel and deliberately took steps to conceal the scheme from law enforcement,” U.S. Attorney Fishman said. “Today’s sentence is an appropriate punishment for his role in a conspiracy that would have supplied new recruits to a terrorist organization that regularly threatens American lives at home and abroad.”
“With this sentence, Alaa Saadeh is being held accountable for conspiring with his brother and others to travel overseas to join ISIL,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is counterterrorism and we will continue to pursue justice against those who seek to provide material support to designated foreign terrorist organizations.”
“I want to commend the work of the FBI’s Joint Terrorism Task Force investigators and the prosecutors in the U.S. Attorney’s Office who worked countless hours throughout this investigation to protect the community in their execution of the FBI’s Counterterrorism strategy to detect, penetrate, and disrupt potential acts of terrorism in the United States and abroad,” stated Newark FBI Special Agent in Charge Timothy Gallagher.
According to documents filed in this and related cases and statements made in court:
Saadeh admitted that, prior to his arrest June 29, 2015, by the FBI Joint Terrorism Task Force (JTTF), he planned to travel overseas to join ISIL along with others. Saadeh discussed the plans to join ISIL with his brother, Nader Saadeh, Samuel Rahamin Topaz, and Munther Omar Saleh, and admitted that at various times each of them indicated that they wanted to join ISIL. Saadeh also admitted he watched ISIL-related videos with Nader Saadeh and Topaz, some of which depicted the execution of individuals – both Muslim and non-Muslim – regarded by ISIL as enemies.
On May 5, 2015, Saadeh’s brother, Nader Saadeh, departed the United States with plans to travel overseas to join ISIL as part of the conspiracy. Saadeh admitted assisting his brother with these plans by letting him purchase airline tickets using Saadeh’s credit card and by removing the SIM card from Nader’s smartphone and resetting the smartphone in an effort to avoid detection. Saadeh also admitted that Saleh assisted Nader Saadeh by giving him contact information for an individual who would facilitate Nader’s travel from Turkey to ISIL in Syria.
Saadeh admitted that, after Nader Saadeh left the United States, Saleh and Topaz intended to travel overseas to join ISIL. After becoming aware that the FBI was investigating this matter, Saadeh instructed an individual who knew of Nader Saadeh’s support for ISIL to lie to the FBI if the individual was interviewed. Saadeh told this individual to “just play stupid,” “pretend it never happened,” and “keep it honest up to a point.”
Saadeh admitted knowing that ISIL was a designated terrorist organization and was taking over territory overseas, expelling non-Muslims from their homes, and executing individuals who did not obey ISIL’s commands.
In addition to the prison term, Judge Wigenton sentenced Saadeh to a lifetime of supervised release.
Saadeh’s alleged conspirators are being prosecuted and are currently in federal custody. Topaz and Nader Saadeh both previously pleaded guilty to conspiring to provide material support to ISIL and await sentencing.
Saleh has been indicted on terrorism-related charges brought by the U.S. Attorney’s Office for the Eastern District of New York. The charges and allegations against Saleh are merely accusations, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Fishman and Assistant Attorney General Carlin credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the JTTF, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys L. Judson Welle, Dennis C. Carletta, and Francisco J. Navarro of the U.S. Attorney’s Office National Security Unit in Newark, with assistance from Trial Attorney Robert Sander of the National Security Division’s Counterterrorism Section.
Defense counsel: Maria Noto Esq., Matawan, New Jersey
Hudson County, New Jersey, Man Pleads Guilty to Equity-Skimming FraudRead the Press Release
TRENTON, N.J. – A West New York, New Jersey, man who fraudulently obtained a federally insured mortgage for a West New York rental property today admitted intentionally failing to make loan payments while using $149,000 in rental income from the property for personal expenses, U.S. Attorney Paul J. Fishman announced.
Ruben Vargas, 65, pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with one count of equity skimming.
According to the documents filed in this case and statements made in court:
On Sept. 21, 2007, Vargas obtained a $417,449 mortgage loan insured by the Federal Housing Administration (FHA), a division of the U.S. Department of Housing and Urban Development (HUD), in order to purchase a property located at 5512 Grant Place in West New York.
Vargas had obtained the loan using supporting documentation that contained inflated income, false employment information and false rental history. By March 1, 2008, he had defaulted on the loan by failing to make timely payments. However, Vargas continued to earn nearly $3,000 in monthly rental income from the property by renting the first and second floors to separate tenants.
From March 2008 through December 2013, while in default on the loan, Vargas received approximately $149,000 in rental income. Vargas admitted that he used the funds for personal expenses instead of paying back the mortgage loan.
The federal equity skimming statute prohibits an individual defaulting on a HUD-insured mortgage note from using rental or other income derived from the property for purposes other than the reasonable and necessary expenses of the property. HUD ultimately paid off Vargas’ past due mortgage loan for losses in the amount of approximately $491,000, inclusive of unpaid principal and interest.
The charge for equity skimming to which Vargas pleaded guilty, carries a maximum penalty of five years in prison and a $500,000 fine. Vargas’s sentencing is scheduled for Aug. 18, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Christopher D. Adams, Holmdel, New Jersey
Hollister Man Sentenced to 30 Years for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Hollister, Mo., man was sentenced in federal court today for producing child pornography.
Michael Shane Tyson, 31, of Hollister, was sentenced by U.S. District Judge M. Douglas Harpool to 30 years in federal prison without parole. The court also sentenced Tyson to a lifetime term of supervised release following incarceration.
Tyson, a former airline pilot, pleaded guilty on Sept. 10, 2015. He admitted that he sexually assaulted a 9-year-old child over a two-year period and created several videos of the abuse with his cell phone.
According to the plea agreement, a Hollister, Mo., police officer responded to Cox Hospital in Branson, Mo., on April 7, 2015, to a report of child molestation. The mother of the child victim told the officer that Tyson had sexually assaulted her daughter the previous week. The mother also told the officer that the abuse had been occurring over the past two years. The child victim did not report the abuse, she said, because Tyson had threatened to kill her if she told anyone.
The child victim was interviewed at the Branson West Child Advocacy Center. She reported that Tyson made videos of her with his cell phone. When she told Tyson she did not want to engage in sexual activities, the plea agreement says, he became angry and threatened her by brandishing a knife taken from a knife block in the kitchen.
Law enforcement officers executed a search warrant at Tyson’s residence and seized seven cell phones, two laptop computers and four flash drives. Investigators discovered several video recordings on one of Tyson’s cell phones in which he placed his phone in the bathroom and secretly recorded two additional child victims, of similar ages to the first victim, undressing, showering and drying off. Investigators also discovered videos and images of the sexual assault of the first child victim on Tyson’s laptop computer, along with 20 images of child pornography that had been downloaded over the Internet.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Guilty Plea in Sex Trafficking ConspiracyRead the Press Release
PROVIDENCE, R.I. – Reginald Chaney, a/k/a “Reggie,” 20, of East Providence, pleaded guilty in U.S. District Court in Providence today to conspiring to transport minors for the purpose of sex trafficking.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Chaney admitted to the court that in January 2015, he conspired with two juveniles to transport two young females, ages 15 and 16, to motels in Seekonk, Mass., and to locations in Providence, Warwick, Charlestown and Narragansett for the purpose of sex trafficking. He is scheduled to be sentenced on August 10, 2016.
Chaney’s guilty plea is announced by United States Attorney Peter F. Neronha; Rhode Island Attorney General Peter F. Kilmartin; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; Providence Police Chief Colonel Hugh T. Clements, Jr.; East Providence Police Chief Christopher J. Parella; and Seekonk, Mass., Police Chief Craig A. Mace.
According to information presented to the court, on January 28, 2015, Providence Police responded to Hasbro Childrens’ Hospital for a report of sexual exploitation offenses involving a 16 year-old female. As a result of information provided to the officers, and a subsequent investigation by Providence Police and Homeland Security Investigations, law enforcement learned that on January 16, 2015, Chaney and two juvenile males conspired to take photographs of the 16 year-old female and a 15 year-old female in various stages of undress, and to post the photographs in advertisements on Backpage.com.
According to information presented to the court, between January 16 and January 28, 2015, Chaney and the two juvenile males conspired to transport the teenage girls from Chaney’s East Providence residence to locations in Massachusetts and Rhode Island for the purpose of offering the girls for prostitution. Based on the information developed by Providence Police and Homeland Security Investigations, Chaney was arrested by East Providence Police on January 29, 2015. He was ordered detained in state custody as a Superior Court probation violator on a 5-year suspended sentence imposed on January 14, 2015, on a weapons charge.
Two juvenile males from East Providence identified as co-conspirators in this matter were arrested on January 29, 2015, and prosecuted in Family Court by the Rhode Island Attorney General’s Office. Brian Desmarais, who was 17 at the time of his arrest, pleaded nolo contendere on November 2, 2015, to two counts of sex trafficking of a minor and one count of conspiracy to commit sex trafficking of a minor. Under the terms of the plea agreement, Desmarais received a certified sentence of 10 years with 19 months plus two days to serve, the remainder suspended with probation. He has begun serving his sentence at the Rhode Island Training School until a “modification hearing” takes place at which time a Family Court judge will determine if the sentence should be modified or continued to be served at the Adult Correctional Institution.
The second juvenile offender, J'Maire Wray, who was 15 at the time of his arrest, pleaded nolo contendere before Family Court Judge Kathleen A. Voccola to two counts of sex trafficking of a minor, one count of conspiracy to commit sex trafficking of a minor, and one count of felony assault. Under the terms of the plea agreement, Wray received a certified sentence of 15 years with six years to serve.
Under certification, both Desmarais and Wray are convicted and their sentences will extend into adulthood.
The cases are being jointly prosecuted by Assistant U.S. Attorney Terrence P. Donnelly and Rhode Island Attorney General Daniel Carr Guglielmo.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Greenwood Men Plead Guilty to Mortgage Fraud ConspiracyRead the Press Release
Contact Person: Bill Watkings (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that John D. Harrison, Jr., age 53, Henry A. Dorn, age 63, Kevin Dempsey, age 45, and C. Jody Hazel, age 42, all of Greenwood , pled guilty today in federal court in Greenville, to conspiracy to commit bank fraud, a violation of Title 18, United States Code, Section 1349. United States District Judge Bruce Howe Hendricks, of Charleston accepted the pleas and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that John Harrison was a real estate developer who developed high end residential properties in North Carolina, South Carolina and Georgia. Henry Dorn, Kevin Dempsey and Jody Hazel were accountants for the accounting firm that prepared Harrison’s financial statements and tax returns. Dorn primarily serviced Harrison’s account. Harrison obtained loans from numerous banks and individuals to fund his real estate developments. A review of Harrison’s financial statements that were provided to banks from August 31, 2000 until May 31, 2008, indicated that Harrison significantly understated his total debt—that is, the financial statements contained false information and this false information was material to the lenders and was meant to influence the actions of the lenders. Dorn prepared these financial statements for Harrison. In essence, Dorn kept two sets of books for Harrison: one with false numbers and one with accurate numbers.
Harrison also entered into Accommodation Borrowing Agreements with Dorn, Dempsey and Hazel in which these three men served as straw purchasers for Harrison. The agreements allow for Harrison to sell the property to Dorn, Dempsey and Hazel and continue to develop and sell the properties. The interest payments would be paid by Harrison and the loans would be paid off when Harrison sold the property. The profit or loss would belong to Harrison and Harrison would pay a fee to Dorn, Dempsey or Hazel totaling 3% of the loan amount. The agreements were not disclosed to the banks until after the loans went past due.
In addition to the undisclosed agreements, Dorn, Dempsey and Hazel all understated their debt when applying for their respective real estate loans—that is, the financial statements contained false information. Law enforcement estimates that federally insured banks lost in excess of $10 million in scheme and artifice to defraud.
Mr. Nettles stated the maximum penalty the Defendants can receive is a fine of $1,000,000 and/or imprisonment for 30 years, plus a special assessment of $100.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Galax Man Pleads Guilty to Methamphetamine Conspiracy ChargeRead the Press Release
ROANOKE, VIRGINIA – A Galax man pled guilty today to Federal drug trafficking charges, United States Attorney John P. Fishwick Jr. announced.
Sylvester Monroe Jackson, 42, of Galax, Virginia, pled guilty today in the United States District Court for the Western District of Virginia in Roanoke to one count of conspiracy to distribute 500 grams or more of methamphetamine.
“Methamphetamine continues to be a priority for law enforcement throughout Virginia,” United States Attorney John P. Fishwick Jr. said today. “We will continue to do all we can to get this dangerous drug out of our communities.”
At sentencing, Jackson faces a mandatory minimum sentence of 10 years in prison and a maximum statutory sentence of life in prison. 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.
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, the Galax Police Department, the Carroll County Sheriff’s Office, the Grayson County Sheriff’s Office and the Wythe County Sheriff’s Office. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Former Santa Claus & Magician for Kid’s Parties Charged with the Manufacturing of Child Pornography Pleads GuiltyRead the Press Release
WILMINGTON – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court yesterday, LEANDER DEWEY JONES, 64, of Raleigh, North Carolina, pled guilty before Senior United States District Judge James C. Fox, to one count of manufacturing child pornography (CP).
JONES, who was employed as a Santa Claus and magician for kids’ parties, was discovered producing CP of his two grandchildren while in his care. On May 29, 2015, Jones brought his desktop computer in for repair to a store in Raleigh, and while examining the computer hard drive for viruses and malware, a computer technician located a folder containing CP. He alerted the store owner who in turn contacted the Raleigh Police Department regarding the CP.
A state search warrant was obtained and a subsequent computer forensics examination of items seized from JONES revealed approximately 4,000 images of CP on the computer and external hard drives. Further, on the CDs and floppy discs, revealed approximately 1,000 images of CP.
At sentencing, scheduled for the court’s August 1, 2016 term, JONES faces up to 30 years imprisonment.
The criminal investigation of this case was conducted by the Raleigh Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Former Police Department Employee Sentenced for Computer Intrusion in Connection with Stolen Identity Refund FraudRead the Press Release
Tampa, FL – U.S. District Judge Virginia Hernandez Covington has sentenced Tonia Bright (53, Tampa) to two years in federal prison for obtaining information from a protected computer for a fraudulent purpose. The Court also ordered her to forfeit $29,057 and to pay restitution totaling $166,026, which are the proceeds traceable to the offenses.
According to court documents, Bright was a civilian employee of the Tampa Police Department and worked as a community service officer. As part of her authorized duties, Bright took reports from citizens related to incidents not requiring the response of a sworn police officer. In this capacity, she had access to local, state, and federal law enforcement databases, including the National Crime Information Center (NCIC) computerized index that contains the personally identifiable information (PII) of millions of individuals. Bright’s use of these databases was restricted to the performance of her authorized duties.
Between 2009 and 2014, Bright accessed NCIC and other password-protected law enforcement databases to obtain PII, and then provided it to her friend, Rita Monique Girven, on at least ten occasions. for the purpose of Girven then used the information to file filing fraudulent federal income tax returns and claim refunds to which she was not entitled. When Girven received the fraudulently obtained refunds, she shared some of the proceeds with Bright.
Girven previously pleaded guilty in a separate case. On November 20, 2015, she was sentenced to 12 years in federal prison.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the Tampa Police Department, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
Former Phoenix Chiropractor Sentenced to Prison for Wire FraudRead the Press Release
PHOENIX, Ariz. – On May 9, 2016, Dr. Randal Curtis Pruitt, 44, of Salt Lake City, Utah, was sentenced by U.S. District Judge Diane J. Humetewa to 18 months in prison. Pruitt was also ordered to pay $478,549 in restitution and perform 100 hours of community service while serving a three-year term of supervised release upon release from prison. Pruitt had previously pleaded guilty to two counts of wire fraud.
“Patients seeking medical treatment expect the utmost discretion from health care professionals, who are persons they entrust with some of their most personal information. Dr. Pruitt abused his special position of trust and today was appropriately held accountable for his conduct,” stated United States Attorney John S. Leonardo.
Pruitt, while operating the Arizona Back Institute in Phoenix in 2010 and 2011, defrauded Synchrony Bank (formerly GE Money Bank) and JP Morgan Chase by assuming the identity of 56 patients and obtaining credit card accounts or lines of credit in their names. Once the credit accounts were obtained, Pruitt submitted false claims for services he had not performed or double billed for services for which he had already been paid. As part of his restitution, Pruitt was also ordered to repay 17 patients who had paid for services but did not receive them after he closed his practice. Pruitt’s license was previously revoked by the Arizona Board of Chiropractic Examiners. At sentencing, Judge Humetewa noted that Pruitt has yet to repay any of his creditors or patients.
The investigation in this case was conducted by the Federal Bureau of Investigation with assistance from the Phoenix Police Department. The prosecution was handled by Frederick A. Battista, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-15-838-01-PHX-DJH
RELEASE NUMBER: 2016-042_Pruitt
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former Campaign Aide Sentenced for Making a False Statement in Federal Investigation Involving 2010 Mayoral CampaignRead the Press Release
WASHINGTON – Vernon Hawkins, who worked on an off-the-books get-out-the-vote effort preceding the 2010 District of Columbia mayoral primary, was sentenced today to six months of incarceration after earlier pleading guilty to making a false statement to federal authorities who were investigating allegations involving his candidate’s campaign.
The sentencing was announced by U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI Washington Field Office’s Criminal Division, and Thomas Jankowski, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Hawkins, 77, was a volunteer advisor for the mayoral candidate. He pled guilty on Aug. 13, 2013 in the U.S. District Court for the District of Columbia. In his plea, he admitted that he took part in a secret effort that channeled funding to his candidate. He also admitted that he later helped provide a potential witness with approximately $8,000 so that the witness would travel and stay out of town so that he would not be available to meet with federal agents investigating the campaign. Also, Hawkins admitted that, during a subsequent interview with the FBI, he stated that he did not know of anyone being asked or told to go out of town, that he never asked anyone to leave town so that they could not meet with investigators, and that he did not help or assist with sending anyone out of town so they would not be able to speak with federal agents in this investigation. He made these false statements in an attempt to influence the federal investigation.
He was sentenced by the Honorable Colleen Kollar-Kotelly. Following his incarceration, Hawkins will be placed on one year of supervised release.
Hawkins is among 13 people who pled guilty to charges in a broader investigation related to federal and local political campaigns, which uncovered evidence of over $3.3 million in illegal contributions to various campaigns between 2006 and 2011. He is among six defendants who pled guilty to offenses directly involving or connected to the 2010 District of Columbia mayoral election, which accounted for $668,800 of the illegal contributions.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate and Special Agent in Charge Jankowski commended the work of those who investigated the case for the FBI and IRS-CI. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Ellen Chubin Epstein, Criminal Investigators Mark Crawford and Melissa Matthews, and Paralegal Specialists Tasha Harris and Corinne Kleinman. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Michael K. Atkinson and Jonathan P. Hooks, who represented the government at sentencing.
Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:
Laurens Resident Charged with Theft of Government Funds
Tanesha Williams, age 31, of Laurens, South Carolina, was charged in a single-count indictment with theft of government funds, a violation of Title 18, United States Code, Section 641. The maximum penalty Williams could receive is ten years imprisonment and a fine of $250,000.00. The case was investigated by agents of the Social Security Administration, Office of Inspector General, and is assigned to Assistant United States Attorney David C. Stephens of the Greenville office for prosecution.Greenville Resident Indicted on Possession of Child Pornography
Christopher Taggart, age 55, of Fountain Inn, South Carolina, was charged in a 1-count indictment with Possession of Child Pornography, a violation of Title 18, United States Code, Section 2252A(a)(5)(B). The maximum penalty Taggart could receive is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the United States Postal Inspection Service and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution. This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.Former Bed Bath & Beyond Assistant Manager Charged with Mail Fraud
Kelvin Abney, age 49, of Simpsonville, South Carolina, was charged in a 2-count indictment with Mail Fraud, a violation of Title 18, United States Code, Section 1341. The maximum penalty Abney could receive is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the United States Postal Inspection Service and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.Director and Employee of Fresh Start Community Development Corporation (FSCDC) Indicted on Conspiracy and Monetary Transactions in Criminally Derived Property
Erick Bradshaw, Sr., age 40, and Augustina Cabral-Rice, age 61, both of Anderson, South Carolina, were charged in a 3-count indictment. Both defendants were charged with Conspiracy, a violation of Title 18, United States Code, Section 371, which carries a maximum penalty of 5 years imprisonment and a maximum fine of $250,000 and with Engaging in Monetary Transactions, a violation of Title 18, United States Code, Section 1957, which carries a maximum penalty of 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Federal Housing Finance Agency, Office of Inspector General; US Postal Inspection Service; Internal Revenue Service, Criminal Investigations; and the Anderson County Sheriff’s Office, and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Federal Court Bars Tennessee Tax PreparerRead the Press Release
A federal court has barred a Nashville-area tax return preparer from preparing returns for others, the Justice Department announced today. The court’s injunction forbids LaVergne, Tennessee, resident Michelle Cole Theus, aka Michelle Cole, and Cole Tax Services from preparing federal tax returns or operating a return-preparation business. It also requires Theus to turn over a complete list of her customers to the government. Theus agreed to entry of the injunction without admitting or denying the factual allegations in the United States’ civil complaint.
According to the United States’ civil complaint in the case, Theus initially prepared accurate returns for her customers, then fraudulently increased the returns’ claimed refund—for example, by adding fictitious dependents or false education credits. Theus then caused the fraudulently inflated portion of the refund, or sometimes the entire refund, to be deposited to her own bank account, the complaint alleges. The Internal Revenue Service (IRS) estimates that Theus has claimed at least $788,220 in fraudulent refunds, according to the complaint.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Exeter Man Sentenced to 132 Months Imprisonment for Distributing Crack Cocaine at CasinoRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Judge Malachy Mannion sentenced Sekou Lashley, age 36, to 132 months’ imprisonment for distributing cocaine base (crack) at the Mohegan Sun Casino in Plains Township, Pennsylvania, on March 19, 2015. Judge Mannion found that Lashley qualified as a career offender, subject to enhanced penalties, after consideration of his extensive criminal history.
Lashley previously pleaded guilty to an indictment that charged him with the sale of four bags of crack cocaine to a confidential informant at the casino bar. Judge Mannion imposed a 120-month sentence for that offense. At the time, Lashley was serving a term of federal supervised release associated with a 2008 conviction, also in the Middle District of Pennsylvania, for conspiring to distribute and possess with intent to distribute more than a kilogram of heroin. Judge Mannion imposed a 12-month sentence for violating the terms of his supervised release, to run consecutive to the 120-month sentence. Lashley also was sentenced to a three-year term of supervised release, to commence at the conclusion of his term of imprisonment.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Erie Man Charged with Violating Federal Bankruptcy LawsRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of violating federal bankruptcy laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Douglas A. Grooms, 45, as the sole defendant.
According to the indictment presented to the court, Grooms concealed property from the United States Bankruptcy Trustee in connection with his bankruptcy case.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dr. Wilcox Sentenced to 100 Months in Federal Prison for Distribution of Oxycodone ConvictionsRead the Press Release
SALT LAKE CITY – Dr. Simmon Lee Wilcox, age 60, of Las Vegas, who was found guilty in January of one count of conspiracy to distribute oxycodone and one count of distribution of oxycodone following a trial in U.S. District Court in Salt Lake City, will serve 100 months in federal prison.
U.S. District Judge Ted Stewart imposed the sentence Monday morning. Wilcox will be on supervised release for 36 months when he finishes his prison sentence. He will self-surrender to begin serving his prison sentence in August.
Evidence at the trial showed Dr. Wilcox wrote about 618 prescriptions resulting in the diversion of approximately 81,000 30-milligram oxycodone pills for non-medical purposes between July of 2010 and March of 2013. Dr. Wilcox wrote hundreds of prescriptions to people using false identifications that were filled at various pharmacies in Utah and Nevada. Those who filled the prescriptions and took possession of the oxycodone either sold it or used it personally.
Five co-conspirators in the case previously pleaded guilty to conspiracy to distribute oxycodone. Benjamin David Grisel, age 49, of Santa Clara, has been sentenced to 48 months in prison; Brenda Grisel, age 48, also of Santa Clara, will serve 12 months in prison. Jeron Scott Hales, age 40, of Hurricane, is serving a 32-month sentence and Jeremy Daniel Perkins, age 36, of Washington, was sentenced to time served. Randall David Ayrton, age 35, of St. George, is serving a 36-month sentenced. As a part of plea agreements reached with federal prosecutors, co-conspirators in the case admitted they conspired with Dr. Wilcox to use his medical license to write prescriptions for oxycodone pills. To facilitate the conspiracy, one of the co-conspirators created false identification documents for the group to use in filling the oxycodone prescriptions at various pharmacies.
The defendants in the case were charged in an indictment returned by a federal grand jury in October 2013 following an investigation by DEA drug diversion investigators.
In a sentencing memorandum filed in anticipation of Monday’s sentencing hearing, federal prosecutors highlight the tragic effects abuse of oxycodone is having throughout the United States. “Utah is not exempt from this tragedy. Just in the past week, the Utah Department of Health has noted that new data shows six people die each week in Utah as a result of overdosing on prescription opioids,” prosecutors noted in the memorandum.
“I have talked before about the heroin and opioid tsunami threatening Utah. In 2012, 31.71 pounds of heroin were seized in Utah. In 2014, that number grew to 244.04 pounds,” U.S. Attorney John W. Huber said today. “The 81,000 oxycodone pills that found their way into our communities through the 618 prescriptions Dr. Wilcox wrote are no different than a drug dealer selling heroin on the corner. In fact, these crimes are worse because they abuse the trust we place in physicians. To stop the wave we are seeing, we need to attack every angle of the heroin and opioid problem in our state,” Huber said.
“DEA takes its responsibility to prevent the distribution of dangerous and addictive drugs to those who do not have a medical reason to have them very seriously,” Acting DEA Assistant Special Agent in Charge John Eddington said today. “We are pleased with the sentence imposed on Dr. Wilcox today and believe it reflects the seriousness of the conduct involved in this case.”
Crawford County Man Charged with Receiving and Possessing Child PornographyRead the Press Release
ERIE, Pa. - A former resident of Crawford County, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
The two-count superseding indictment named Alan Thomas Rigby, 68, as the sole defendant.
According to the indictment presented to the court, Rigby possessed and received computer images depicting minors engaging in sexually explicit conduct.
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.justice.gov/psc.
The law provides for a maximum total sentence of 60 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Connecticut Man Pleads Guilty to Bank Robberies in Rhode Island, Pennsylvania and ConnecticutRead the Press Release
SCRANTON, PA - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on May 5, 2015, David Sandy Lee Parks, age 60, of New Haven, Connecticut, pleaded guilty to six bank robberies, including two bank robberies in Rhode Island.
According to United States Attorney Peter Smith of the Middle District of Pennsylvania, in July 2015, a grand jury in Scranton returned a two-count Indictment alleging that Parks committed the armed robbery of the Peoples Security Bank, Duryea, Pa., on July 3, 2015, and the armed robbery of the Wells Fargo Bank, Plymouth, Pa., on July 10, 2015.
A subsequent Criminal Information charged Parks with four additional bank robberies:
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the Savings Institute Bank & Trust, Westerly, Rhode Island, on February 20, 2015;
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the Coastway Community Bank, Warwick, Rhode Island, on June 16, 2015;
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the Citizen’s Bank, Stonington, Connecticut, on June 24, 2015; and
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the First Niagara, Upper Macungie Township, PA, on July 17, 2015.
On May 5, 2016, Parks appeared before Senior United States District Court Judge Edwin M. Kosik in Federal Court in Scranton, Pa., and pleaded guilty to all six robberies.
Parks has been in custody since July 17, 2015, the day officers from the Upper Macungie Police Department arrested and charged him with the robbery of the First Niagara Bank which occurred earlier that day.
The case was jointly investigated by federal, state and local law enforcement agencies: the Federal Bureau of Investigation, Pennsylvania State Police, the Duryea, Plymouth Township, Upper Macungie, Pittston, Wilkes-Barre, Wilkes-Barre Township, Plains Township, Jenkins Township, West Pittston, Edwardsville, Warwick and Westerly, Rhode Island, Hanover, Kingston Police Departments, and the Luzerne County District Attorney’s Office. The prosecution was conducted and coordinated by Assistant United States Attorney John Gurganus.
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Cohoes Man Charged with Child Pornography PossessionRead the Press Release
ALBANY, NEW YORK – George Muzio, Jr., age 34, of Cohoes, New York, was charged and arrested last week for possessing child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations.
Muzio was charged with possession of child pornography by a criminal complaint filed on May 3, 2016. The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
If convicted on the possession charge, Muzio faces a maximum term of imprisonment of 10 years, a mandatory term of supervised release of 5 years and up to life, mandatory registration as a sex offender, and a maximum $250,000 fine.
Muzio appeared yesterday for a detention hearing before United States Magistrate Judge Daniel J. Stewart. Judge Stewart released Muzio to home confinement, with limited exceptions including for court appearances and work. Muzio must also wear an electronic location monitor.
This case is being investigated by Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Cincinnati Trio Sentenced to up to 25 Years for Armed RobberyRead the Press Release
CINCINNATI – Three Cincinnati men were sentenced in U.S. District Court yesterday for charges related to armed robbery.
Aaron Murray, 22, and Savoy Carpenter, 21 were each sentenced to 300 months in prison and James Crawford, 22, was sentenced to 54 months in prison.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, announced the sentences handed down by U.S. District Court Judge Susan J. Dlott.
The agencies involved in the investigation include:
Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
Cincinnati Police Department
Colerain Police Department
Covington Police Department
Hamilton County Police Association SWAT
Hamilton County Prosecutor’s Office
Hamilton County Sheriff’s Office
Kenton County Sheriff’s Office
Sharonville Police Department
Springfield Township Police Department
Woodlawn Police Department
According to court documents, the three participated in the robbery of the Micro Center electronics store on Mosteller Road in Cincinnati on August 17, 2014, taking approximately $29,000. Specifically, Murray and Carpenter planned and performed the robbery. They mapped out escape routes and rode to the store together.
During the robbery, Murray ordered several customers and employees to the ground, pointed a firearm at the manager of the store and demanded that he take him to the safe. He ordered the manager to empty the contents of the safe into a black trash bag.
Upon fleeing the scene, Murray and Carpenter abandoned Carpenter’s car and ran into a nearby wooded area, where they called Crawford and asked that he come to their rescue. Murray gave Crawford $270 from the proceeds for picking them up and driving them to safety.
Murray also robbed Fifth Third Bank on Ferguson Road in Cincinnati at gunpoint on October 15, 2014, taking approximately $10,900.
Carpenter brandished a firearm while robbing the Family Dollar on Ferguson Road in Cincinnati on October 29, 2014. After an employee advised that he could not open the safe, Carpenter demanded the employee empty the cash register, and took $167 in cash. Nine days later, Carpenter robbed the same store by gunpoint again. During his second robbery at the store, he passed out shopping bags to customers and encouraged them to steal from the store as well. As he was approaching the store, an individual called 911 and Carpenter was apprehended after a brief foot chase.
“These were hostile takeover robberies that terrorized multiple victims,” Acting U.S. Attorney Glassman said. “People who commit crimes like this should expect to end up spending a long time in federal prison. These are serious crimes that warrant the serious penalties that the district court meted out today.”
Acting U.S. Attorney Glassman commended the cooperative investigation by law enforcement, as well as Assistant United States Attorney Anthony Springer, who is representing the United States in this case.
Carlsbad Woman Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Suzanne Marie Villa, 37, of Carlsbad, N.M., was sentenced today in federal court in Las Cruces, N.M., to 24 months in prison for his methamphetamine trafficking conviction. Villa will be on supervised release for three years after completing her prison sentence.
Villa was arrested on Aug. 25, 2015, on a criminal complaint charging her with possession of methamphetamine with intent to distribute on June 12, 2015, in Eddy County, N.M. According to the criminal complaint, Villa was arrested after Pecos Valley Drug Task Force agents notified U.S. Border Patrol Agents at the Border Patrol Checkpoint on Highway 62/180 near El Paso, Texas, to be on the lookout for her vehicle based on investigation indicating that Villa would be transporting drugs to Carlsbad. The U.S. Border Patrol later seized 25.7 grams of methamphetamine and drug paraphernalia from Villa’s vehicle during a checkpoint inspection. Villa was subsequently indicted on Nov. 19, 2015, and charged with conspiracy to possess methamphetamine with intent to distribute on June 12, 2015, in Eddy County.
On Jan. 26, 2016, Villa pled guilty to the indictment. In her plea agreement, Villa admitted that on June 12, 2015, she was stopped by law enforcement officers and found to be in possession of 25.7 grams of methamphetamine together with other items associated with methamphetamine trafficking including a scale, plastic bags, a glass smoking pipe and $820.00 in cash.
This case was investigated by the Las Cruces office of the DEA, the Pecos Valley Drug Task Force and the U.S. Border Patrol. The case was prosecuted by Assistant U.S. Attorney Selesia Lee Winston of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Calipatria State Prison’s Drug Counselor, Inmates and Others Indicted in Drug Smuggling ConspiracyRead the Press Release
Assistant U. S. Attorney Orlando Gutierrez (619) 546-6958
NEWS RELEASE SUMMARY – May 10, 2016
SAN DIEGO – Eight people, including a supervisory drug counselor at Calipatria State Prison and inmates who participated in the drug rehabilitation program, were indicted by a federal grand jury on charges that they were members of a network that smuggled methamphetamine, heroin and marijuana into the prison.
This is the first large-scale drug smuggling conspiracy prosecuted in connection with a prison in the Southern District of California. The drugs and scores of cell phones smuggled into the prison by the drug counselor on one occasion were estimated to have a prison value of nearly $1.2 million.
This is also the first time that the San Diego Federal Bureau of Investigation and California Department of Corrections and Rehabilitation officials have targeted not only the corrupt prison official, but inmates and their conspirators on the outside. Federal law enforcement officials announced today that, going forward, they will continue to take an aggressive stand against this dangerous activity and targeting all involved.
“We are putting everyone on notice: Whatever part you play in the prison smuggling equation, you’re going to be held accountable,” said U.S. Attorney Laura Duffy. “If you smuggle drugs and contraband into prisons located in the Southern District of California, we will prosecute you federally. And if you’re in prison, we’re not going to overlook you just because you’re already there.”
“While occupying a position of trust Ms. Carr is alleged to have facilitated the distribution of drugs within the prison population at Calipatria State Prison, thereby undermining the correction and rehabilitation of its inmates,” commented FBI Special Agent in Charge (SAC), Eric S. Birnbaum. “The smuggling of contraband is not only a threat to the integrity of our prison system, but to the safety of the American public which is why the FBI is committed to rooting out corruption at all levels within our prison system.”
“We take allegations of staff smuggling drugs into prison very seriously,” said CDCR California Department of Corrections and Rehabilitation Secretary Scott Kernan. “CDCR fully investigates, and assists in any prosecutions. In this case, we appreciate the collaboration with the FBI and the U.S. Attorney’s Office.”
The key defendant, Angela Carr, was a supervisory drug counselor at the prison. In that capacity, she routinely met with inmates attending the prison’s substance abuse program. Four of Carr’s co-conspirators are inmates – three of whom participated in her drug-addiction recovery program. One of those inmates, D’Mondo Burns, was a drug counseling mentor to other inmates. The other inmates charged include Ryan Hawes, Nathaniel Frazier and Brandon Carroll.
So while these inmates purported to be seeking help in kicking their drug habits, in fact, they were utilizing the prison’s drug counseling program to smuggle drugs and other contraband into the facility.
Hawes was arrested this morning in Lancaster; Walters was arrested in West Covina and Frazier was arrested in Los Angeles. Burns and Carroll were already in custody; Watson and Turner are at large.
According to a search warrant affidavit, Carr received the drugs from three women who have relationships with inmates at Calipatria. They are identified as Brittney Turner, Tameika Watts and Myesha Walters.
According to the search warrant, Carr would meet the women in parking lots of bowling allies and big-box stores in Palmdale and Moreno Valley to receive the drugs and contraband. Carr then would bring the controlled substances - including methamphetamine, heroin, marijuana, Xanax, Valium, Soma and Norco - into the prison, concealed in chip bags, Quaker Oatmeal boxes and cookie and coffee containers. The indictment also alleges that Carr smuggled as many as 40 cell phones at a time into the prison.
These phones were to be sold to other inmates, and used to coordinate criminal activity both inside and outside the facility. All told, authorities believe Carr smuggled drugs and contraband into the Calipatria prison on at least three occasions.
In return, Carr was paid about $3,500 in total. Prison staff do not end up making as much money from these criminal enterprises as they might expect. Manipulative inmates convince correctional staff to first bring in items that seem innocuous, like tobacco and currency. But once the official has done so, inmates quickly begin pressuring the official, under threat of exposure, to bring in drugs, cell phones or other dangerous contraband including items that could be used as weapons. These crimes endanger the safety of the staff and inmates and undermine the security of the public at large.
Carr’s alleged corruption was discovered in August of 2015 when she was confronted at the staff entrance of the prison, reeking of marijuana. She was found to be secretly carrying all of these contraband items. She had almost a pound of methamphetamine; 4 pounds of marijuana; a quarter-pound of heroin; 409 tablets of Soma, Xanax, Valium and Norco; 212 grams of tobacco; four bottles of cough syrup and 39 cell phones. Carr was detained and her case is pending.
Calipatria State Prison opened in 1992 and houses about 3,661 inmates. There are 1,280 employees at the prison.
The FBI encourages the public to report allegations of public corruption to our hotline at (877) NO-BRIBE (662-7423).
DEFENDANTS Case Number 15cr3087
Angela Carr Age 44 Moreno Valley
Ryan Hawes Age 25 Lancaster
Brittney Turner Age 29 Lancaster
Nathaniel Frazier Age 28 Los Angeles
Tameika Watts Age 29 Los Angeles
D’Mondo Burns Age 26 Calipatria State Prison
Brandon Carroll Age 34 Calipatria State Prison
Myesha Walters Age 34 West Covina
SUMMARY OF CHARGES
Possession of Controlled Substances with Intent to Distribute – Title 21, U.S.C., Section 841(a) (1)
Maximum Penalty: Life in Prison
Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Sections 841(a) (1) and 846
Maximum Penalty: Life in Prison
AGENCY
Federal Bureau of Investigation
California Department of Corrections and Rehabilitation’s Office of Internal Affairs
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
**This case stems from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the agencies noted above. 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.
For Visuals, please see www.justice.gov/usao-sdca/gallery/photos-press-conference-may-10-2016
Blue Springs Man Sentenced for Armed Robbery ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Blue Springs, Mo., man was sentenced in federal court today for his role in a conspiracy to commit several armed robberies at restaurants in the metropolitan area.
Isiah G. Etienne, 21, of Blue Springs, was sentenced by U.S. District Judge Beth Phillips to 10 years in federal prison without parole.
Etienne pleaded guilty to participating in the conspiracy to commit armed robberies, to one count of armed robbery and to one count of using a firearm during a crime of violence.
Etienne is the fourth defendant to plead and guilty and be sentenced for the armed robbery conspiracy and related charges. Mikah M. Labayen, 20, of Blue Springs, was sentenced to six years in federal prison without parole. Renargo L. Martin, 46, of Kansas City, Mo., was sentenced to five years in federal prison without parole. Jeremy Hunter, also known as “Heat,” 26, of Kansas City, was sentenced to 10 years in federal prison without parole.
Co-defendant William H. Parker III, 21, of Kansas City, pleaded guilty on April 19, 2016, and awaits sentencing.
Etienne, Parker, Labayen, Martin and Hunter each admitted that he participated in a conspiracy to rob several fast food restaurants in the Kansas City area in the fall of 2014. Parker, Labayen and Etienne were employed at a Chipotle restaurant in Blue Springs. Using their knowledge of procedures commonly used by such establishments, conspirators would wait until the end of a business day, and then rob restaurants by waiting until an employee opened a door to take trash out of the premises. They rushed the door to gain access, and then forced the manager or shift supervisor to give them access to the restaurant’s safe. Conspirators threatened restaurant employees with an assault rifle in order to force their cooperation.
Conspirators robbed a Chipotle restaurant in Lee’s Summit, Mo., on Nov. 3, 2014, taking $1,600; a Burger King restaurant in Independence, Mo., on Nov. 10, 2014, taking $914 and again on Nov. 30, 2014, taking $565; and a Chipotle restaurant in Blue Springs on Nov. 16, 2014, taking $6,800.
Following these robberies, Parker, Etienne and Labayen were captured after an attempted robbery of a motel.
This case is being prosecuted by Assistant U.S. Attorney Patrick Edwards. It was investigated by the Kansas City, Mo., Police Department, the Lee’s Summit, Mo., Police Department, the Blue Springs, Mo., Police Department and the FBI.
Barge Operator Pays United States over $800,000 in Civil PenaltiesRead the Press Release
As part of a voluntary agreement, Indiana-based American Commercial Lines, Inc. (ACL), and its wholly-owned subsidiary, ACBL Transportation Services, LLC (ACBLTS), have paid the United States $805,440.00 in civil penalties to resolve Clean Water Act (CWA) violations, Acting United States Attorney James L. Porter announced.
"Clean water is a precious resource." Porter said, "When it is threatened in the Southern District of Illinois, this office will not stand idly by. We take seriously our responsibility to uphold and enforce federal environmental laws, and we will continue to vigorously prosecute these cases."
According to a federal complaint filed earlier this year in the Southern District of Illinois, over a span of nearly seven years – from June 2007 to February 2014 – ACL and ACBLTS repeatedly discharged sewage and polluted wastewater to the Ohio River from their barge cleaning facility in Cairo, Illinois, in violation of their National Pollutant Discharge Elimination System permits. The wastewater exceeded permit limits for four separate pollutants: biochemical oxygen demand, total suspended solids, total residual chlorine, and fecal coliform. The complaint states that the companies violated their allotted limits for daily maximum levels and/or monthly averages on at least 554 separate occasions.
Reports submitted by ACL and ACBLTS to the Illinois Environmental Protection Agency show that in many instances, the violations were egregious. On 16 occasions, the amount of fecal coliform in ACL’s discharges measured at least 100 times higher than the permit limit. During another month, the concentration of total residual chlorine in the wastewater rose to more than 700 times the permit limit. Most of the polluted water that ACL and ACBLTS discharged to the Ohio River came from two office septic systems and a marine sanitation device. A barge cleaning station also contributed to the CWA violations described in the complaint.
The objective of the Clean Water Act is to restore and maintain the chemical, physical and biological integrity of the Nation’s waters. In reaching the settlement figure, the United States took into account the seriousness of the violations and the impact they had on the environment, as well as the corrective measures the companies eventually took to eliminate future violations and bring their Cairo facility into compliance. "This settlement illustrates the importance and value of protecting the Ohio River," said Robert A. Kaplan, Acting EPA Region 5 Administrator. "U.S. EPA will take action whenever necessary to protect our freshwater resources."
This case was prosecuted by Assistant United States Attorneys Nathan D. Stump and Nicholas J. Biersbach, in concert with the Environment and Natural Resources Division of the U.S. Department of Justice, the U.S. Environmental Protection Agency, and the Illinois Environmental Protection Agency.
Alien Who Returned to USA Sentenced to PrisonRead the Press Release
SYRACUSE, NEW YORK - Jorge Lopez-Castaneda, 61, of Mariel, Pinar del Rio, Cuba, was sentenced yesterday to serve forty-eight months imprisonment for illegally reentering the United States, announced United States Attorney Richard S. Hartunian. Lopez-Castaneda was sentenced by Senior United States District Judge Thomas J. McAvoy in Albany, New York.
Lopez-Castaneda is a citizen of Cuba who was convicted of Arson in the First Degree in Florida in 1996. Sometime thereafter, he voluntarily left the country. In 2013 he was denied admission to the USA when he tried to cross the border from Mexico. In 2015, he was arrested in Cortland, New York, with no record of having legally entered the country or having applied to do so.
This case was investigated by the United States Department of Homeland Security, Immigration and Customs Enforcement, and was prosecuted by Assistant U.S. Attorney Carina H. Schoenberger.
Albuquerque Man Sentenced for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Jimmy Marquez, 38, of Albuquerque, N.M., was sentenced today in federal court to 60 months in prison followed by four years of supervised release for his methamphetamine trafficking conviction.
Marquez was arrested on June 30, 2015, on an indictment charging him with distributing methamphetamine on April 17, 2015 and May 29, 2015, in Bernalillo County, N.M. The indictment included forfeiture allegations requiring Marquez to forfeit $600 and a motorcycle to the United States.
On Oct. 23, 2015, Marquez pled guilty to one count of distribution of methamphetamine and admitted that on April 17, 2015, he sold 13.6 grams of 98.4% pure methamphetamine to an undercover law enforcement officer.
This case was investigated by the Albuquerque office of the DEA and was prosecuted by Assistant U.S. Attorney Jennifer M. Rozzoni.
7th Street Gang Member Sentenced on Rico ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Sammy Ortiz, 28, of Buffalo, NY, who was convicted of RICO Conspiracy, was sentenced to 57 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that as a member of the 7th Street Gang, the defendant sold cocaine, heroin and marijuana. In addition, Ortiz possessed and stored firearms at his 7th Street residence on behalf of other gang members.
A total of 18 defendants were charged in the prosecution of the 7th Street gang. All 18 defendants have now been convicted.
The 7th Street Gang was responsible for narcotics trafficking, numerous shootings and multiple murders in the 7th Street area of the West Side of Buffalo between 2000 and 2012.
Today’s sentencing is the culmination of an investigation on the part of Special Agents of the FBI Safe Streets Task Force, the New York State Police, under the direction of Major Steven Nigrelli, the Buffalo Police Department under the direction of Commissioner Daniel Derenda and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
9 May 2016
Youngstown man sentenced to life in prison for raping childRead the Press Release
A Youngstown man was sentenced to life in prison after he was convicted of crossing state lines to rape an 11-year old, law enforcement officials said.
Iraephraim Underwood, 59, was convicted following a jury trial of one count of crossing a state line to engage in a sexual act with a person who had not attained the age of 12 years old and one count of crossing a state line to engage in a sexual act with a person who had not attained the age of 18 years old.
This case was prosecuted by Assistant U.S. Attorneys Michael A. Sullivan and Benedict Gullo following an investigation by the Federal Bureau of Investigation, the Youngstown Police Department and the Boardman Police Department.
York Man Sentenced in Prosecution of Latin KingsRead the Press Release
HARRISBURG- On May 5, 2016, a federal judge sentenced a York man to federal prison for his involvement in the importation and distribution of cocaine and heroin in York County.
According to United States Attorney Peter J. Smith, Daniel Pacheco-Morales, age 44, of York, was sentenced to fifteen years in prison. U.S. District Court Judge Yvette Kane indicated during sentencing that the violence associated with his activities and his long history of drug trafficking separated him from the other defendants sentenced in the prosecution of Latin Kings in York.
On April 6, 2015, the day of his scheduled jury trial, Daniel Pacheco-Morales entered a guilty plea to conspiracy to distribute heroin from 2011 to 2013. He also admitted to his participation in conspiracy to distribute heroin throughout York. He later attempted to withdraw his guilty plea, but the court denied his request.
Pacheco-Morales’s sentence is the culmination of a multi-year investigation by the Pennsylvania State Police and the York County Drug Task Force, into the Latin King Street Gang in York. In that investigation, hundreds of purchases of heroin, cocaine, and crack cocaine were made from over one hundred individuals in York, and resulted in the arrest of most of those individuals in a sweep that began on February 6, 2013. Thereafter, the United States Attorney’s Office indicted fifteen individuals for leadership roles in the heroin and cocaine trafficking, including Daniel Pacheco-Morales.
As part of this larger investigation, the United States charged multiple others affiliated with the distribution of heroin and cocaine in York. The other cases are as follows:
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Angel Mendez-Castro, age 27, of York and Puerto Rico, entered a guilty plea to conspiracy to import and distribute kilograms of heroin and cocaine. He was sentenced to fifteen years in prison.
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Christian Mendez-Castro, a/k/a “King Rampage,” age 22, of York and Puerto Rico, entered a guilty plea to conspiracy to distribute heroin and cocaine. He was sentenced to nine years in prison.
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Hector Castro-Padro, age 22, of Puerto Rico and York, entered a guilty plea drug trafficking and possession of a firearm in furtherance of drug trafficking. He was sentenced to six years and six months in prison.
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William Ortiz, age 53, or York, entered a guilty plea to drug trafficking. On August 21, 2014, he was sentenced to 10 years in prison.
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Luis Angel Ortiz, a/k/a “C Lo,” age 31, of York, entered a guilty plea to drug trafficking. On April 15, 2014, he was sentenced to twelve (12) years and six (6) months in prison.
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Jose Cartegena, Jr., a/k/a “Warrior,” age 35, of York, entered a guilty plea to drug trafficking. On April 28, 2014, he was sentenced to five (5) years in prison.
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Marcus Garcia, a/k/a “King Paradise,” age 28, of York, entered a guilty plea to drug trafficking. On September 5, 2014, he was sentenced to six (6) years and five (5) months in prison.
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David Ramsey, a/k/a “King Knuckles,” age 32, of York, entered a guilty plea to drug trafficking. On December 9, 2014, he was sentenced to five (5) years in prison.
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Carlos Villalongo-Martinez, age 38 of York, entered a guilty plea to drug trafficking. On July 29, 2014, he was sentenced to two (2) years in prison.
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Brandon Jones, age 27, of York, entered a guilty plea to drug trafficking. On June 3, 2014, he was sentenced to six (6) years in prison.
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Antonio Navarro-Garcia, a/k/a “King Trigger,” age 22 of York, entered a guilty plea to drug trafficking. On November 25, 2014, he was sentenced to five (5) years in prison.
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Michael Enriquez, a/k/a “King Rage,” age 30, of Camden, New Jersey, entered a guilty plea to drug trafficking. On January 27, 2015, he was sentenced to ten (10) years in prison.
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Hector Rengifo, age 40, of York, entered a guilty plea to drug trafficking on August 4, 2014. He was sentenced to ten (10) years in prison.
- August Ranalli, age 31, of York, was convicted of drug trafficking and conspiracy after bench trial. He was sentenced to twelve (12) years in prison.
Prosecution is assigned to Assistant United States Attorney Michael A. Consiglio.
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Yiwei Zheng Sentenced to Pay $500,000 Fine for Smuggling Elephant Ivory and Rhinoceros HornsRead the Press Release
United States Attorney Andrew M. Luger and Ed Grace, Deputy Assistant Director for the U.S. Fish and Wildlife Service (USFWS), today announced the sentencing of YIWEI ZHENG, A/K/A “Steve Zheng,” 43, for smuggling elephant ivory and illegally exporting rhinoceros horns from the United States to China.
ZHENG was ordered to pay $500,000 into the Lacey Act Reward Fund, which is used by USFWS to reward those who provide information about wildlife crimes and to pay the costs incurred in caring for fish, wildlife or plants that are being held as evidence in ongoing investigations. The defendant was also sentenced to serve three years’ probation, a six-week period of intermittent confinement, and to perform 150 hours of community service.
Under the Lacey Act, it is unlawful to import, export, transport, sell or purchase wildlife, fish or plants that were taken, possessed, transported or sold in violation of a state, federal or foreign law. When it was passed in 1900, the Lacey Act became the first federal law protecting wildlife.
“Those who engage in this illegal trade create demand, and a market for, the exploitation of endangered species such as black rhinoceros,” said Assistant United States Attorney Laura M. Provinzino. “This defendant helped to sustain this illegal market for years, engaging in more than 300 sales and earning more than $1 million. His profit was earned at the expense of these threatened and endangered species.”
“Stopping wildlife trafficking and trade in ivory and rhino continues to be a huge conservation priority for us,” said U.S. Fish and Wildlife Service Deputy Assistant Director for Law Enforcement Ed Grace. “It takes all of us to protect these endangered species, here and around the world.”
According to the defendant’s guilty plea and documents filed in court, on April 30, 2011, ZHENG smuggled elephant ivory out of the United States to a recipient in Shanghai, China. ZHENG also violated the Lacey Act by exporting two rhinoceros horns from the U.S. between July 25, 2010 and July 27, 2010, with knowledge that the two rhinoceros horns were transported and sold in violation of the laws and regulations of the United States, including the Endangered Species Act.
ZHENG operated an online business known as Crouching Dragon Antiques. As part of this business, ZHENG offered for sale and sold a variety of items, including items made of elephant ivory and rhinoceros horn. On May 5, 2011, U.S. Customs and Border Protection officers identified a package containing a number of elephant ivory carvings being shipped from the United States to an individual in Shanghai, China. The shipper was identified as YIWEI ZHENG. The ivory contained within the shipment had not been declared to the U.S. Fish and Wildlife Service upon export nor had ZHENG obtained any Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) permits for the ivory being exported as required.
In total, ZHENG smuggled into and out of the United States and sold in China and elsewhere, elephant ivory, rhinoceros horn and other items worth more than $1,000,000.
ZHENG pleaded guilty on January 13, 2016, and was sentenced today by U.S. District Chief Judge John R. Tunheim in U.S. District Court in Minneapolis.
This case is the result of an investigation by the U.S. Fish and Wildlife Service.
The case was prosecuted by Assistant U.S. Attorney Laura M. Provinzino.
Defendant Information:
YIWEI ZHENG, A/K/A “Steve Zheng,” 43
St. Cloud, Minn.
Convicted:
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Smuggling goods from the United States, 1 count
- Violation of the Lacey Act, 1 count
Sentenced:
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$500,000 fine payable to the Lacey Act Reward Fund
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Three years’ probation
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Six weeks of intermittent confinement
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150 hours community service
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Webster Man Pleads Guilty to Failing to Report More Than $571,000 of Income to IRSRead 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 Brent Derouen, 37, of Webster, NY, pleaded guilty to two misdemeanor counts of failing to file federal income tax returns before U.S. Magistrate Judge Jonathan W. Feldman. The charges carry a maximum penalty of one year in prison and a $100,000 fine.Assistant U.S. Attorney John J. Field, who is handling the case, stated that Derouen operated a stock promotion business, OTC Advisors LLC. In 2009 and 2010, the defendant earned income of approximately $181,000 and $390,000. Derouen knew he was obligated to report this income to the Internal Revenue Service, and pay taxes on it, but deliberately failed to do so. As a result, the defendant has agreed to pay more than $460,000 to the United States for taxes he owes, plus penalties and interest on the unpaid taxes.
The plea is the result of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge.
Sentencing is scheduled for July 11, 2016 at 9:30 before Judge Feldman.
Waterville Man Pleads Guilty to Selling Counterfeit CoinsRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Mwashuma M. Sithole, 31, of Waterville, Maine pleaded guilty today in U.S. District Court to selling counterfeit coins.
Court records show that the defendant began ordering counterfeit Morgan dollars online in May 2014. Over the next several months, the defendant placed orders online for items that looked like genuine Morgan dollar coins. The Morgan dollar is a United States dollar coin minted from 1878 to 1904 and then again in 1921. The coins that the defendant ordered and received were offered as counterfeits and made in China. The defendant would pay about $2 each for the coins. The coins resembled genuine Morgan dollars in appearance, design, and weight.
The defendant sold and pawned several counterfeit Morgan dollars in Maine in 2014. He knew that the coins were counterfeit but told the buyers that the coins were genuine Morgan dollars. He sold and pawned coins in Augusta, Newport, Farmington, Lewiston, and South Portland. Law enforcement officers executed a warrant at the defendant’s residence on January 22, 2015. They seized approximately 1200 counterfeit Morgan coins that belonged to the defendant.
Sithole faces up to 15 years in prison, a $250,000 fine, and he may be ordered to pay restitution. He will also forfeit all of the coins seized from him. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Augusta Police Department, the Franklin County Sheriff’s Office, the Waterville Police Department, the Auburn Police Department, the Lewiston Police Department, the South Portland Police Department, the Newport Police Department, the Maine State Police, and the United States Secret Service.
Two L.A. County Sheriff’s Deputies involved in Use-of-Force Incident against Shackled Inmate Sentenced to PrisonRead the Press Release
LOS ANGELES – Two Los Angeles Sheriff’s deputies who were found guilty after a two-week trial earlier this year of falsifying reports with the intent to obstruct justice related to their assault of a waist-chained inmate were sentenced to prison terms today.
Former deputies Joey Aguiar, 28, and Mariano Ramirez, 40 were sentenced respectively to 18 months and 13 months in prison by the Honorable Beverly Reid-O’Connell. When imposing sentence Judge O‘Connell found that, in addition to falsifying their reports, Aguiar and Ramirez had engaged in excessive force against the shackled inmate, who was struck, kicked, repeatedly hit by a flashlight, and pepper-sprayed, while he was on the ground.
Aguiar was convicted of one count of falsification of records for submitting a report that falsely stated the inmate, Bret Phillips, who is now 44, was beaten after he had attempted to headbutt deputy Aguiar’s face and that Phillips violently kicked at Aguiar. Mr. Phillips did neither, according to testimony presented at the trial.
It was undisputed that Mr. Phillips was waist-chained with handcuffs binding his hands to a chain around his stomach throughout the entire beating.
During the trial, Chaplin Paulino Juarez, who was an eyewitness to the event, testified that he repeatedly raised concerns about what he had seen with senior LASD officials, but was rebuffed. Chaplin Juarez ultimately relayed his concerns to the ACLU. The information provided to the ACLU by the chaplain later came to the attention of the FBI. By this time the FBI had begun a wide-ranging investigation into civil rights abuses by the LASD in custodial settings, particularly excessive uses of force by deputies on the 3000 Floor of the Men’s Central Jail. Another witness, who was an inmate when Mr. Phillips was beaten, testified that he hid in the shower to avoid being seen by LASD personnel as he watched the deputies beat a defenseless and unmoving inmate. During the sentencing, Judge O’Connell stated that she believed the testimony of Chaplain Juarez and Mr. Maestaz.
“These defendants attempted to cover up an unwarranted attack upon an inmate who was restrained with waist chains,” said United States Attorney Eileen M. Decker. “The reprehensible conduct of these defendants in this case undermines the work of law enforcement everywhere, tarnishing the outstanding performance of the vast majority of officers.”
The jury in the case had been unable to reach a unanimous decision on a civil rights offense that alleges the deputies unlawfully beat the victim during the incident on February 11, 2009. The jury reported in open court that it was split 10-2 in favor of guilt. The jury acquitted Aguiar and Ramirez of conspiring to violate the inmate’s civil rights.
The case against Aguiar and Ramirez is the result of an investigation by the FBI, and is one in a series of cases resulting from an investigation into corruption and civil rights abuses at county jail facilities in downtown Los Angeles. As a result of the investigation, 18 current or former members of the Los Angeles Sheriff’s Department have now been convicted of federal charges.
Transnational Drug Trafficking Organization Ringleader Pleads Guilty to Drug Conspiracy and Related ChargesRead the Press Release
TULSA, Okla.—The ringleader of a Tulsa-based drug trafficking organization pleaded guilty today to drug conspiracy, engaging in a continuing criminal enterprise, and conspiracy to sponsor and exhibit an animal in an animal fighting venture, announced U.S. Attorney Danny C. Williams Sr. of the Northern District of Oklahoma. United States District Judge John E. Dowdell presided over the change of plea hearing.
Donald Walters, 35, of Tulsa, was charged in a sixth superseding indictment on August 13, 2014. Walters was charged along with 50 co-defendants who were members and associates of the Hoover Crips Street Gang and the Donald Walters Drug Trafficking Organization in the 241 criminal count indictment. Since the indictment, 32 defendants have pleaded guilty.
According to the plea agreement, Walters admitted that he purchased cocaine and arranged to have it cooked into crack cocaine at drug houses operated by conspirators. The drugs were then sold throughout Tulsa. Walters frequently used telephones to facilitate the drug conspiracy, and he and co-conspirators used coded terms in order to keep the conspiracy a secret. Walters further admitted that he was the leader and organizer of a continuing criminal enterprise with at least five co-conspirators. In addition, from 2011 to 2014, Walters sold, trained, raised, and transported dogs to fight and travelled out of state to fight.
The drugs came from Mexican cartels and were transported through Dallas, Oklahoma City, and Tulsa as they moved toward Ohio and the northeastern United States.
During the investigation of Operation Battlefield, law enforcement discovered that the Hoover Crips and Walters DTO brought approximately $10,000,000 worth of cocaine and marijuana through Tulsa over a three-year period.
At sentencing, Walters faces a mandatory minimum sentence of 20 years of imprisonment and a maximum penalty of life and a fine of up to $20,000,000. Under the terms of the plea agreement, the parties have agreed to a prison sentence of 30 years, subject to the court’s acceptance of the plea agreement at sentencing. In addition to the prison sentence, he will forfeit seized criminal proceeds, facilitating real property and vehicle, and a $10,000,000 criminal forfeiture judgment representing proceeds of the drug conspiracy.
The charges were the result of a three-year U.S. Attorney’s Office, Organized Crime Drug Enforcement Task Force investigation, led by the Tulsa Police Department’s Homicide and Special Investigation Divisions and the Federal Bureau of Investigation, in collaboration with the U.S. Drug Enforcement Administration; the Tulsa County District Attorney’s Office; the U.S. Marshals Service; the Oklahoma Attorney General’s Office; the Tulsa County Sheriff’s Office; the Broken Arrow Police Department; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Oklahoma Highway Patrol; and the Norman Police Department.
Assistant United States Attorneys Allen J. Litchfield, Robert T. Raley, Eric O. Johnston, Andrew J. Hofland, and Catherine Depew prosecuted the case.
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Texas Man Pleads Guilty to Theft of Public Money for Role in Stolen Identity Refund Fraud Scheme Involving IRS “Get Transcript” DatabaseRead the Press Release
A Houston, Texas, man pleaded guilty today in the U.S. District Court for the Southern District of Texas in Houston to one count of theft of public money, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
An indictment returned on Nov. 10, 2015, charged Denzel Roberts, 24, with participating in a scheme that used stolen personal identification information to file false federal income tax returns for tax year 2014. The indictment alleged that participants in the scheme obtained means of identification of actual individuals, including their names and social security numbers, and used this information to access the Internal Revenue Service’s (IRS) “Get Transcript” database. Using the stolen identities and information obtained from the Get Transcript database, other members of the scheme prepared and filed false tax returns fraudulently requesting refunds. According to the plea agreement, Roberts used a fraudulent passport to open several bank accounts into which the refunds were deposited. Roberts withdrew the illicit proceeds, retaining a portion of the money as a fee and providing the remainder of the funds to others.
Roberts faces a statutory maximum sentence of 10 years in prison and a maximum fine of $250,000. As part of his plea agreement, Roberts agreed to pay restitution to the IRS in the amount of $74,341.39. U.S. District Judge Lynn Hughes of the Southern District of Texas set sentencing for Aug. 8.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Magidson thanked special agents of IRS-Criminal Investigation and the FBI Houston Area Cyber Crime Task Force, who investigated the case and Trial Attorneys Michael Boteler and Grace Albinson of the Tax Division, who are prosecuting this case with assistance from Assistant U.S. Attorney Jimmy Sledge of the Southern District of Texas.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
South Paris Man Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that David Foster, 39, of South Paris, Maine pled guilty today in U.S. District Court to being a felon in possession of a firearm.
According to court records, on November 21, 2015, a Maine Game Warden discovered Foster in possession of a rifle in the Paris, Maine area. Foster was prohibited from possessing firearms based on three prior felony convictions for burglary.
Foster faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Maine Warden Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Real Estate Developer Sentenced to Two Years in Prison and $1 Million Fine for Insider TradingRead the Press Release
BOSTON – A Boston-area real estate developer was sentenced to two years in federal prison and ordered to pay a $1 million fine after he was convicted earlier this year of engaging in insider trading for buying – and later selling – shares of Wainwright Bank & Trust Company (“Wainwright”) based on a tip that Wainwright would be acquired. Prior to the acquisition, shares of Wainwright traded on the Nasdaq Stock Market.
Robert H. Bray, 78, of Watertown, was sentenced today by U.S. District Court Judge William G. Young. In January, Bray, the owner of R&B Construction, a construction and real estate development company, was convicted of one count of securities fraud following a four-day trial. In June 2010, Bray was tipped by a friend who was an executive at Boston-based Eastern Bank Corp. that Wainwright would be acquired. The tip – more than two weeks before the acquisition was publicly announced – was passed on a napkin slipped to Bray over drinks at the bar of a Watertown country club where both men are members. Bray ultimately used the tip to trade Wainwright shares for a profit of approximately $300,000, an amount Bray must also forfeit as part of his sentence.
U.S. Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The United States Attorney’s Office also received valuable assistance from the U.S. Securities and Exchange Commission in the course of investigating this case. The case was prosecuted by Stephen E. Frank and Eric P. Christofferson of Ortiz’s Economic Crimes Unit.