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Wednesday 23 March 2016
Convicted Felon from Albuquerque Sentenced to Seven Years for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Pete Pasqual Chavez, 36, of Albuquerque, N.M., was sentenced today in federal court to 84 months in prison for being a felon in possession of a firearm. Chavez will be on supervised release for three years after he completes his prison sentence.
Chavez was arrested on Sept. 16, 2015, on a criminal complaint charging him with being a felon in possession of a firearm and ammunition on Sept. 14, 2015, in Bernalillo County, N.M. According to the complaint, on Sept. 14, 2015, officers of the Albuquerque Police Department (APD) responded to the La Quinta Inn on San Antonio Blvd. NW in Albuquerque after Chavez told hotel personnel that he had just shot a person who was breaking into his vehicle. Upon arrival, the APD officers found a firearm under Chavez’s vehicle. Thereafter the officers executed search warrants for Chavez’s hotel room and vehicle. In the vehicle, the officers found a single projectile that was removed from the inside of the passenger door and a box of Perfecta .45 caliber ammunition. In Chavez’s hotel room, the officers found four rounds of Perfecta .45 caliber ammunition. In the bushes outside Chavez’s room, the officers found a firearm loaded with ten rounds of Perfecta .45 caliber ammunition.
Chavez was indicted on Oct. 7, 2015, and charged with being a felon in possession of a firearm and ammunition. Chavez was prohibited from possessing firearms or ammunition, because he previously had been convicted of attempting to traffic a controlled substance with intent to distribute, possession of a controlled substance, tampering with evidence, shooting from or into a vehicle and use of a telephone to facilitate a drug trafficking crime. Chavez pled guilty to the indictment on Dec. 23, 2015.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and APD.
Assistant U.S. Attorney Norman Cairns prosecuted the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Columbus Man Sentenced to 240 Months for Creating Child Pornography of 14-Month-OldRead the Press Release
COLUMBUS, Ohio – Steven R. Trent, 46, of Columbus, was sentenced in U.S. District Court to 240 months in prison for using a minor female under the age of 2 years to engage in sexually explicit conduct for the purpose of producing child pornography.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, and Columbus Police Chief Kim Jacobs announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
According to court documents, Trent took photographs of the genitalia of a 14-month-old female and his own genitalia on or attempting to penetrate the victim.
Trent pleaded guilty on December 15, 2015 to one count of production of child pornography. He was also sentenced to 20 years of supervised release and ordered to register as a sex offender.
“The nature and circumstances of the defendant’s offense are nothing short of horrendous,” Acting U.S. Attorney Glassman said.
Acting U.S. Attorney Glassman commended the cooperative investigation by the FBI and Columbus Division of Police, as well as Assistant United States Attorney Heather A. Hill, who is representing the United States in this case.
Colombian Man Pleads Guilty to Drug ChargeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Anderson Bryan Lever (39, Colombia, South America) today pleaded guilty to conspiring with others to distribute five kilograms or more of cocaine on board a vessel subject to the jurisdiction of the United States. He faces a mandatory minimum penalty of 10 years, up to life, in federal prison.
According to the plea agreement, on multiple occasions between 2009 and 2013, Lever worked with others to smuggle cocaine into the United States. He repeatedly dispatched cocaine-laden vessels, carrying between 550 and 1,000 kilograms of cocaine, from San Andres Island (SAI), Colombia to Honduras. On each occasion, Lever recruited and paid at least four mariners per vessel.
Lever’s co-conspirators received the cocaine shipments in Honduras and then provided bales of United States currency (containing as much as $500,000 each) to the mariners who had just smuggled the cocaine. The mariners then smuggled the money back to Lever, and the cocaine was transferred to others for eventual unlawful importation into the United States. In total, the mariners Lever hired Lever successfully smuggled in excess of 10,000 kilograms of cocaine.
Lever was arrested on SAI, Colombia, and subsequently extradited to the United States.
This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) investigation, comprised of agents and analysts from the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration, the United States Coast Guard Investigative Service, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. This case is being prosecuted by Assistant United States Attorney Christopher F. Murray. The Office of International Affairs, Department of Justice, assisted with Lever’s extradition from Colombia.
Cleveland man indicted for making threats against the President and a candidateRead the Press Release
A two-count indictment was filed in federal court charging a Cleveland man with making threats against the President and a presidential candidate, said Acting U.S. Attorney Carole S. Rendon.
Jonathan W. Smead, 35, did knowingly and willingly make a threat to take the life of, and to inflict bodily harm upon and against the President of the United States on Feb. 28. Smead also knowingly and willingly made a threat to take the life of, and to inflict bodily harm upon Hillary Clinton on Feb. 28, according to the indictment.
According to a criminal complaint filed in the case:
On Feb. 28 at approximately 10:16 CST, the U.S. Secret Service, Chicago Field Office received a call, which was forwarded to the Secret Service’s Cleveland Office. The caller stated “I want to kill President Obama.” The caller continued to speak about past assassins including John Wilkes Booth and Lee Harvey Oswald. The caller then stated he “wants to kill Hillary Clinton.” The caller then identified himself as Jonathan Smead and provided is Social Security number, date of birth, and said he is living with his grandmother on Spring Road in Cleveland. Finally, Smead stated he “wants federal charges, not little state charges.”
Smead was interviewed on Feb. 29. He admitted to making the phone call and said he had been drinking alcohol prior to making the call. He said he does not wish harm on the President or Clinton. He stated he had recently been watching the television show “The West Wing” and he is very interested in past presidents, specifically Abraham Lincoln and John F. Kennedy. He stated he visited the Texas Book Depository years ago as a tourist. During a consensual search, agents located two books in Smead’s bedroom related to the Kennedy assassination.
This case is being investigated by the U.S. Secret Service, with assistance from the Cleveland Division of Police. It is being prosecuted by Assistant U.S. Attorney Kevin Filiatraut.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An indictment is only a charge and not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland man indicted for distributing fentanyl that killed womanRead the Press Release
A two-count indictment was filed in federal court charging a Cleveland man with distributing fentanyl that killed a woman last year, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Robert J. Johnson, 26, was indicted on two counts of distribution of fentanyl. The charges stem from sales of fentanyl that took place on Aug. 25 and 27, 2015. The Aug. 25 sale resulted in the death of another person, according to the indictment.
That count carries a sentencing enhancement that can result in a 20-year mandatory minimum penalty.
“Fentanyl abuse has caused on unprecedented wave of overdose deaths in our community over the past few weeks,” Rendon said. “The only way we can stem this tide is with a comprehensive approach focused on prevention, treatment, prescribing practices and enforcement. And on the enforcement side, we will continue to aggressively prosecute those who continue to peddle this poison in our community.”
“The heroin epidemic affects not only those who fall victim to drug abuse, but family members, friends, and the community as a whole,” Cleveland Police Commander Gary Gingell said. “Now more than ever it is imperative that those trafficking in heroin are held accountable for their actions as they are responsible for not only promoting drug use, but for the deaths of these victims. I am proud to say that the Cleveland Division of Police partners with the United States Attorney’s Office to ensure that these cases are prosecuted to the fullest extent of the law.”
This case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by the Cleveland Division of Police, with assistance from the Cuyahoga County Medical Examiner’s Office.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Chinese National Pleads Guilty to Conspiring to Hack into U.S. Defense Contractors’ Systems to Steal Sensitive Military InformationRead the Press Release
LOS ANGELES – A Chinese national pleaded guilty today to participating in a years-long conspiracy to hack into the computer networks of major United States defense contractors, steal sensitive military and export-controlled data, and send the stolen information to China.
Su Bin, who is also known as Stephen Su and Stephen Subin, 50, a citizen and resident of the People’s Republic of China, pleaded guilty before United States District Judge Christina A. Snyder.
The guilty plea was announced by United States Attorney Eileen M. Decker Assistant Attorney General for National Security John P. Carlin, Assistant Director Jim Trainor of the FBI’s Cyber Division and Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division.
A criminal complaint filed in 2014 and subsequent indictments filed in Los Angeles charged Su, a China-based businessman in the aviation and aerospace fields, for his role in the criminal conspiracy to steal military technical data, including data relating to the C-17 strategic transport aircraft and certain fighter jets produced for the U.S. military. Su was initially arrested in Canada in July 2014 on a warrant issued in relation to this case. Su ultimately waived extradition and consented to be conveyed to the United States in February 2016.
In a plea agreement filed yesterday in United States District Court, Su admitted to conspiring with two persons in China from October 2008 to March 2014 to gain unauthorized access to protected computer networks in the United States, including computers belonging to the Boeing Company in Orange County, California, to obtain sensitive military information and to export that information illegally from the United States to China.
“Protecting our national security is the highest priority of the U.S. Attorney’s Office, and cybercrime represents one of the most serious threats to our national security,” said United States Attorney Decker. “The innovative and tireless work of the prosecutors and investigators in this case is a testament to our collective commitment to protecting our nation’s security from all threats. Today’s guilty plea and conviction demonstrate that these criminals can be held accountable no matter where they are located in the world and that we are deeply committed to protecting our sensitive data in order to keep our nation safe.”
“Su Bin admitted to playing an important role in a conspiracy, originating in China, to illegally access sensitive military data, including data relating to military aircraft that are indispensable in keeping our military personnel safe,” said Assistant Attorney General Carlin. “This plea sends a strong message that stealing from the United States and our companies has a significant cost; we can and will find these criminals and bring them to justice. The National Security Division remains sharply focused on disrupting cyber threats to the national security, and we will continue to be relentless in our pursuit of those who seek to undermine our security.”
As part of the conspiracy, Su would e-mail the co-conspirators with guidance regarding what persons, companies and technologies to target during their computer intrusions. One of Su’s co-conspirators would then gain access to information residing on computers of U.S. companies and email Su directory file listings and folders showing the data that the co-conspirator had been able to access. Su then directed his co-conspirator as to which files and folders his co-conspirator should steal. Once the co-conspirator stole the data, including by using techniques to avoid detection when hacking the victim computers, Su translated the contents of certain stolen data from English into Chinese. In addition, Su and his co-conspirators each wrote, revised and emailed reports about the information and technology they had acquired by their hacking activities, including its value, to the final beneficiaries of their hacking activities.
“Cyber security is a top priority not only for the FBI but the entire U.S. government,” said Assistant Director Trainor. “Our greatest strength is when we harness our capabilities to work together, and today’s guilty plea demonstrates this. Our adversaries’ capabilities are constantly evolving, and we will remain vigilant in combating the cyber threat.”
“This investigation demonstrates the FBI’s resolve in holding foreign cyber actors accountable regardless of where they reside,” said Assistant Director in Charge Bowdich. “Cybercrime investigators in Los Angeles are among the finest and their efforts toward preserving America's national security in this case should be commended.”
Su’s plea agreement makes clear that the information he and his co-conspirators intentionally stole included data listed on the United States Munitions List contained in the International Traffic in Arms Regulations. Su also admitted that he engaged in the crime for the purpose of financial gain and specifically sought to profit from selling the data the he and his conspirators illegally acquired.
As a result of today’s guilty plea, Su faces a maximum possible sentence of five years’ in federal prison and a fine of $250,000 (or twice the gross gain or gross loss resulting from the offense, whichever is greatest).
Judge Snyder is scheduled to sentence Su on July 13.
This case is being prosecuted by Assistant United States Attorney Anthony J. Lewis of the Terrorism and Export Crimes Section and Trial Attorney Casey Arrowood and Senior Trial Attorney Robert E. Wallace of the National Security Division’s Counterintelligence and Export Control Section, with support from the Justice Department’s Office of International Affairs.
The case is being investigated by the Cyber Division of the FBI Los Angeles Field Office’s Cyber Division with assistance from the United States Air Force’s Office of Special Investigations.
Chinese National Pleads Guilty to Conspiring to Hack into U.S. Defense Contractors’ Systems to Steal Sensitive Military InformationRead the Press Release
A Chinese national pleaded guilty today to participating in a years-long conspiracy to hack into the computer networks of major U.S. defense contractors, steal sensitive military and export-controlled data and send the stolen data to China.
Su Bin, also known as Stephen Su and Stephen Subin, 50, a citizen and resident of the People’s Republic of China, pleaded guilty before U.S. District Judge Christina A. Snyder of the Central District of California.
The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Eileen M. Decker of the Central District of California, Assistant Director Jim Trainor of the FBI’s Cyber Division and Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division.
A criminal complaint filed in 2014 and subsequent indictments filed in Los Angeles charged Su, a China-based businessman in the aviation and aerospace fields, for his role in the criminal conspiracy to steal military technical data, including data relating to the C-17 strategic transport aircraft and certain fighter jets produced for the U.S. military. Su was initially arrested in Canada in July 2014 on a warrant issued in relation to this case. Su ultimately waived extradition and consented to be conveyed to the United States in February 2016.
“Su Bin admitted to playing an important role in a conspiracy, originating in China, to illegally access sensitive military data, including data relating to military aircraft that are indispensable in keeping our military personnel safe,” said Assistant Attorney General Carlin. “This plea sends a strong message that stealing from the United States and our companies has a significant cost; we can and will find these criminals and bring them to justice. The National Security Division remains sharply focused on disrupting cyber threats to the national security, and we will continue to be relentless in our pursuit of those who seek to undermine our security.”
“Protecting our national security is the highest priority of the U.S. Attorney’s Office, and cybercrime represents one of the most serious threats to our national security,” said U.S. Attorney Decker. “The innovative and tireless work of the prosecutors and investigators in this case is a testament to our collective commitment to protecting our nation’s security from all threats. Today’s guilty plea and conviction demonstrate that these criminals can be held accountable no matter where they are located in the world and that we are deeply committed to protecting our sensitive data in order to keep our nation safe.”
“Cyber security is a top priority not only for the FBI but the entire U.S. government,” said Assistant Director Trainor. “Our greatest strength is when we harness our capabilities to work together, and today’s guilty plea demonstrates this. Our adversaries’ capabilities are constantly evolving, and we will remain vigilant in combating the cyber threat.”
“This investigation demonstrates the FBI’s resolve in holding foreign cyber actors accountable regardless of where they reside,” said Assistant Director in Charge Bowdich. “Cybercrime investigators in Los Angeles are among the finest and their efforts toward preserving America's national security in this case should be commended.”
In the plea agreement filed yesterday in the U.S. District Court of the Central District of California, Su admitted to conspiring with two persons in China from October 2008 to March 2014 to gain unauthorized access to protected computer networks in the United States, including computers belonging to the Boeing Company in Orange County, California, to obtain sensitive military information and to export that information illegally from the United States to China.
As part of the conspiracy, Su would e-mail the co-conspirators with guidance regarding what persons, companies and technologies to target during their computer intrusions. One of Su’s co-conspirators would then gain access to information residing on computers of U.S. companies and email Su directory file listings and folders showing the data that the co-conspirator had been able to access. Su then directed his co-conspirator as to which files and folders his co-conspirator should steal. Once the co-conspirator stole the data, including by using techniques to avoid detection when hacking the victim computers, Su translated the contents of certain stolen data from English into Chinese. In addition, Su and his co-conspirators each wrote, revised and emailed reports about the information and technology they had acquired by their hacking activities, including its value, to the final beneficiaries of their hacking activities.
Su’s plea agreement makes clear that the information he and his co-conspirators intentionally stole included data listed on the U.S. Munitions List contained in the International Traffic in Arms Regulations. Su also admitted that he engaged in the crime for the purpose of financial gain and specifically sought to profit from selling the data the he and his co-conspirators illegally acquired.
Su faces a maximum sentence of five years in prison and a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest. Judge Snyder is scheduled to sentence Su on July 13, 2016.
The case is being investigated by the FBI Los Angeles Field Office’s Cyber Division with assistance from the U.S. Air Force’s Office of Special Investigations.
This case is being prosecuted by Assistant U.S. Attorney Anthony J. Lewis of the Central District of California and Trial Attorney Casey Arrowood and Senior Trial Attorney Robert E. Wallace of the National Security Division’s Counterintelligence and Export Control Section, with support from Lisa Roberts of the Justice Department’s Office of International Affairs.
Su Bin Plea Agreement
Charleston heroin dealer sentenced to Federal prison on drug chargeRead the Press Release
CHARLESTON, W.Va. – Acting United States Attorney Carol Casto announced that a Charleston drug dealer was sentenced today to a year and a day in federal prison for a heroin crime. Thomas Kerr Clements, 53, previously pleaded guilty to distribution of heroin.
Clements admitted that on May 27, 2015, he sold heroin to a confidential informant working with law enforcement authorities. The drug deal took place at the defendant’s residence, located in the Rand area of Charleston.
This case was investigated by the Kanawha County Sheriff’s Department, Sheriff’s Tactical Operations Patrol Team. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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California Man Indicted for Traveling to Thailand and Sexually Abusing Minor BoysRead the Press Release
LOS ANGELES – A resident of Montrose was indicted today in a superseding indictment by a federal grand jury in Los Angeles on charges of engaging in illicit sexual conduct in foreign places and sex trafficking of a minor, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and United States Attorney Eileen M. Decker announced today.
Paul Alan Shapiro, 69, was originally indicted on April 22, 2015, on charges relating to his travel to Thailand and illicit sexual conduct with minor boys.
According to the indictment, in February 2010, Shapiro traveled from Los Angeles to Thailand, where Shapiro paid minors as young as 14 years old small amounts of local currency in order to engage in various sex acts with them. Shapiro also allegedly took photographs of himself engaging in sexually explicit conduct with the boys.
“Child predators cannot flee the United States in the hope of having a safe haven for their criminal conduct,” said United States Attorney Eileen M. Decker. “To protect the most vulnerable among us, my office will pursue Americans who seek to exploit children in other countries.”
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations is investigating the case. Trial Attorneys Austin M. Berry and Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case.
“This indictment should serve as a warning to sexual predators who mistakenly believe they can escape justice by exploiting children overseas,” said Joseph Macias, special agent in charge for HSI Los Angeles. “There is no tolerance for the sexual abuse of foreign children by our citizens, and HSI will work closely with our law enforcement counterparts throughout the world to ensure these criminals face justice.”
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Earlier this month, a Northern California man was found guilty in United States District Court in Los Angeles of traveling to Cambodia to have illicit sexual conduct with young girls (see: http://go.usa.gov/cAgP9).
California Man Indicted for Traveling to Thailand and Sexually Abusing Minor BoysRead the Press Release
A resident of Montrose, California, was indicted today in a superseding indictment by a federal grand jury in Los Angeles on charges of engaging in illicit sexual conduct in foreign places and sex trafficking of a minor, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Eileen M. Decker of the Central District of California announced today.
Paul Alan Shapiro, 69, was originally indicted on April 22, 2015, on charges relating to his travel to Thailand and illicit sexual conduct with minor boys.
According to the indictment, in February 2010, Shapiro traveled from Los Angeles to Thailand, where Shapiro paid minors as young as 14 years old small amounts of local currency in order to engage in various sex acts with them. Shapiro also allegedly took photographs of himself engaging in sexually explicit conduct with the boys.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations is investigating the case. Trial Attorneys Austin M. Berry and Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Bonita Springs Man Sentenced to 8 Years in Federal Prison for Distributing Child PornographyRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele has sentenced Christopher Hall (45, Bonita Springs) to eight years in federal prison for distributing child pornography. The Court also ordered him to forfeit the computers he had used to commit the offense. Hall pleaded guilty on November 30, 2015.
According to court documents, on May 9, 2014, an undercover FBI Task Force agent discovered that Hall was sharing child pornography using a peer-to-peer file sharing network. A federal search warrant was then executed at Hall’s residence and his computers were seized. Forensic analyses subsequently revealed more than 2,500 images of child pornography and 9 videos depicting child pornography on those computers. Hall admitted that he had lived alone and was the only person who had used his computers, and that he never shared his secured Internet connection with anyone. He stated that he began downloading child pornography ten years ago.
This case was investigated by the Federal Bureau of Investigation, FBI Child Exploitation Task Force. It was prosecuted by Assistant United States Attorney Charles D. Schmitz.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Bennington County Pizza Restauranteur Arrested in Connection with October 2015 Seizure of More Than 80 Pounds of HeroinRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Marco Antonio Lam Peralta, 42, of South Londonderry, Vermont was arrested yesterday based upon an arrest warrant issued by the United States District Court upon a Criminal Complaint charging Lam Peralta with conspiracy to distribute heroin, a schedule I controlled substance.
As explained in the Criminal Complaint, this case relates to Homeland Security Investigations (HSI) early October 2015 seizure in Miami of a shipment from Guatemala containing more than 40 kilograms of heroin. The shipment was destined for an address in Manchester Center, Vermont. On October 8, 2015, police arrested Diego Mejia Paredes upon his taking delivery of that shipment. The Grand Jury subsequently returned a one count indictment against Mejia Paredes charging possession with intent to distribute more than a kilogram of heroin in connection with the October 8, 2015 delivery. That prosecution is pending.
As explained in the Criminal Complaint against Lam Peralta, additional investigation by the HSI, the Drug Enforcement Administration (DEA), the Vermont State Police (“VSP”), and the United States Border Patrol (USBP) has revealed that Mejia Paredes was working with Lam Peralta in connection with the intercepted shipment, as well as previous shipments from Guatemala which law enforcement believes contained heroin.
United States Attorney Eric S. Miller observed that yesterday’s arrest was the result of extraordinary investigative coordination between DEA, HSI, VSP, and USBP. “The arrest of Mr. Lam Peralta is the result of extraordinary effort by, and cooperation among, DEA, HSI, VSP, and USBP. I am once again pleased to see our federal and State partners working so closely together to stem the flow of heroin into Vermont.”
"As heroin use continues to plague our communities, our collaborative efforts with law enforcement partners serve as a great way to fight back to stem the tide of this dangerous and deadly epidemic," said Matt Etre, special agent in charge of HSI New England. "HSI and our federal, state, and local law enforcement partners are committed to putting an end to this growing scourge."
The United States Attorney emphasizes that all persons charged with crimes, including Lam Peralta, are presumed innocent unless and until they are convicted at trial or pursuant to a guilty plea.
Lam Peralta made his initial appearance before United States Magistrate Judge John M. Conroy this afternoon. He was ordered held in the custody of the United States Marshal’s Service pending a detention hearing, which is scheduled for Monday, March 28, at 1:30pm.
Lam Peralta is represented by Craig Nolan, Esq., of Burlington. Assistant United States Attorney Michael Drescher is the prosecutor.
Barren County, Kentucky, Man Guilty of Defrauding Supplemental Security AdministrationRead the Press Release
Defendant misrepresented his mental condition to qualify for benefits
Ordered to pay restitution to victim agencies
BOWLING GREEN, Ky. – A Cave City, Kentucky, man pleaded guilty in United States District Court today, before District Judge Greg N. Stivers, to defrauding the Supplemental Security Administration because he failed to report income and falsely misrepresented his mental condition in order to receive Supplemental Security Income benefits announced U.S. Attorney John E. Kuhn, Jr.
In court, Gary Hank Thompson, 33, admitted that between August 2009 and April 2013, he made misrepresentations in order to receive Supplemental Security Income benefits from the Social Security Administration in the amount of $24,884, to which he was not entitled. Supplemental Security Income is a federal government program that provides benefits to individuals who are disabled and have limited income and resources.
In his initial application for Supplemental Security Income, Thompson also applied for Medicaid, and during the same period, obtained $81,831.27 in Medicaid benefits.
At various points, including during the initial field interview with Social Security Administration personnel in August 2009, and during the April 15, 2013, redetermination meeting with Social Security Administration personnel in Warren County, Kentucky, defendant Thompson falsely represented his mental condition by slowing his speech and stuttering, and generally saying and doing things to make it seem that he had issues with comprehension, when he did not. Defendant misrepresented his mental condition in this way to qualify for benefits and to continue qualifying for Supplemental Security Income benefits. Thompson’s misrepresentations of his mental condition were material to whether he would receive Supplemental Security Income benefits, as he initially qualified under “organic mental disorders.” When the Social Security Administration was provided with accurate information concerning the Defendant’s mental condition, it reevaluated whether he qualified for Supplemental Security Income and determined he did not.
Additionally, the Defendant made material omissions and misstatements regarding his income and resources, which affected his eligibility for Supplemental Security Income benefits. Between August 2009 and April 2013, the Defendant made multiple statements to the Social Security Administration that he had no gifts, income, or resources. This was not in fact true, as the Defendant later admitted he failed to report amounts of up to $40 a day that he made panhandling, which would have affected his eligibility for Supplemental Security Income benefits.
At sentencing, before Judge Stivers, on June 28, 2016, in Bowling Green, the United States will recommend a 27 month sentence and an order for Thompson to pay restitution of $24,884 to the Supplemental Security Administration and $81,831.27 to the Kentucky Department for Medicaid Services, the victim agencies.
This case is being prosecuted by Assistant United States Attorney Amanda E. Gregory and was investigated by the Office of the Inspector General of the Social Security Administration.
Bank Employee Facing 44 Charges of Theft, Embezzlement and Misappropriation of FundsRead the Press Release
PITTSBURGH - A resident of Bentleyville, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of theft, embezzlement, and misappropriation by a bank employee, United States Attorney David J. Hickton announced today.
The 44-count indictment returned yesterday named Jessica N. Scola, 32, as the sole defendant.
According to the indictment, Scola, on 44 occasions between Jan. 2, 2015 and April 16, 2015, while employed at PNC Bank, embezzled and misapplied the bank's funds through electronic transfers, draft checks, and ATM withdrawals.
The law provides for a maximum sentence of 30 years in prison, a fine of $1,000,000, or both, at each count of the indictment. 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 Carolyn J. Bloch is prosecuting this case on behalf of the government.
The U.S. Secret Service 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.
Baldwin Twp. Woman Charged with Stealing Social Security BenefitsRead the Press Release
PITTSBURGH - A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on a charge of theft of government money, United States Attorney David J. Hickton announced today.
The one-count indictment returned yesterday named Rosemary Thomas, 64, as the sole defendant.
According to the indictment, from January 2001 to February 2014, Thomas converted to her own use $98,949 in Social Security Title II, Old Age, Survivor’s Disability Insurance benefits of another individual - benefits she knew she was not entitled to use.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General, 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.
Atlanta Doctor Who Was a Self-Proclaimed “Private Sovereign Citizen” Sentenced to Prison for Tax EvasionRead the Press Release
ATLANTA – Dr. Debra Johnson-Jordan, who claimed for seven years that she was a “private sovereign citizen” and not subject to federal income tax laws, has been sentenced to one year and one day in federal prison after pleading guilty to a federal tax evasion charge.
“Hard-working taxpayers should not have to shoulder the burden for people, like Dr. Johnson-Jordan, who fail to pay their taxes because of spurious claims that they’re above the law,” said U.S. Attorney John Horn. “This case shows that there are serious consequences for those who intentionally avoid their tax obligations.”
“The law is clear on the issue of taxable income and who is required to file and pay taxes: there is no gray area on the subject,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “We should not forget that the ultimate victims in tax fraud cases are the people of the United States – those honest taxpayers who diligently file tax returns each year. It is our hope that today's sentence will send a strong message, that schemes to avoid paying taxes are a violation of the Federal Tax laws and the consequences of such schemes can and will result in jail time.”
According to U.S. Attorney Horn, the indictment, and other information presented in court: Johnson-Jordan, who practiced medicine in East Point, Georgia, failed to file income tax returns and pay federal income taxes from at least 1997 to 2014. Johnson-Jordan maintained she was exempt from paying federal income taxes despite earnings in excess of $1.5 million dollars because she claimed she was a “private sovereign citizen” and not subject to federal income tax laws. She ignored numerous notices from the IRS explaining her tax liability and warning of criminal penalties if she failed to comply with tax laws. Despite these warnings, Johnson-Jordan sent correspondence to her employer, the IRS and the U.S. Attorney’s office raising frivolous arguments and continued to challenge her tax liability until she was indicted in August 2015.
Debra Johnson-Jordan, 58, of Winder, Georgia, was sentenced to one year, one day in federal prison, three years of supervised release, $100 special assessment, 60 hours of community service and restitution in the amount of $464,432.00 to the IRS.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Jeffrey Brown prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Armed Bank Robber Convicted by Las Vegas Federal JuryRead the Press Release
LAS VEGAS, Nev. – One of two local men who violently robbed a Summerlin bank in January 2015, has been convicted by a federal jury of multiple felony counts, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Jerome Michael Bell, 26, of Las Vegas, was convicted on March 22, 2016, of one count of conspiracy to commit armed bank robbery, one count of armed bank robbery, and one count of using and carrying a firearm during a crime of violence. Bell faces up to five years in prison on the conspiracy charge, up to 20 years in prison on the armed bank robbery charge, and a minimum of seven years consecutive on the firearm charge. He is scheduled to be sentenced by U.S. District Judge James C. Mahan on June 20, at 10 a.m.
“Using a firearm to rob a bank or commercial establishment is a very serious offense and typically harms multiple victims,” said U.S. Attorney Bogden. “We are working with our local police departments and the FBI to make sure these violent criminals are brought to justice, convicted and sentenced in the federal system.”
The co-conspirator, DeShawn Walker, 26, pleaded guilty on March 1 to conspiracy to commit bank robbery and one count of using and carrying a firearm during a crime of violence and is scheduled to be sentenced on June 1, at 10 a.m.
According to the court records and information submitted to the jury, on Jan. 2, 2015, at approximately 8:44 a.m., Bell and Walker entered the Summerlin bank wearing dark clothing, hooded sweatshirts, face coverings, and dark gloves. Bell was brandishing a loaded handgun and pointing it at the tellers, and Walker grabbed an employee from an office and threatened to kill the employee and a teller if they did not meet their demands. Bell robbed some of the tellers of their money, and then they forced all but one of the employees into a small room. Bell then demanded that the remaining employee open the vault, but when the employee was unable to do so, Bell and Walker ran from the bank with the stolen money. Bell left his revolver at one of the teller stations and they fled in a vehicle that had been rented by one of Bell’s relatives. Law enforcement agents and officers tracked the vehicle to an east-side location in Las Vegas and observed the vehicle crash into a truck. Bell was apprehended following a short foot pursuit, and Walker had jumped out of the vehicle before the crash and was apprehended from a shed in an individual’s back yard.
This case was investigated by the FBI and Las Vegas Metropolitan Police Department, as part of the Safe Streets Task Force. The case was prosecuted by Assistant U.S. Attorneys Kathryn Newman and Brandon Jaroch
Animal Rights Activist Sentenced to Six Months of Home Confinement for Vandalizing a Farm and Releasing 2,000 Mink from CagesRead the Press Release
CHICAGO — A Los Angeles man was sentenced today to six months of home confinement for vandalizing a Grundy County fur farm and releasing more than 2,000 mink from their cages.
After releasing the mink, TYLER LANG and an accomplice spray painted the barn with the words, “Liberation is Love.” The pair also poured an acidic substance over two trucks that were parked on the farm in Morris, Ill.
Lang, 27, pleaded guilty last year to one count of conspiring to travel in interstate commerce with the purpose of damaging an animal enterprise.
U.S. District Judge Amy J. St. Eve sentenced Lang to three months’ time already served in prison, six months of community confinement and six months of home confinement, followed by one year of supervised release.
“Lang was not engaging in lawful activism or peaceful protest, but instead was committing a crime,” Assistant U.S. Attorney Bethany K. Biesenthal argued in the government’s sentencing memorandum. “The use of illegal methods of activism – harassment, threats, vandalism – does nothing more than taint the image of law-abiding activists who are attempting to create change through legal protest and lawful demonstration.”
The accomplice, KEVIN JOHNSON, of Los Angeles, pleaded guilty last year to the same charge as Lang. Judge St. Eve sentenced Johnson last month to three years in prison.
The vandalism and releasing of the mink occurred on Aug. 13, 2013. The mink farmers, with assistance from law enforcement, were able to recover 1,600 of the animals. The remaining mink died or were never found. Lang and Johnson also destroyed cards from the cages that identified the breed of each animal, making it impossible to determine the breed of the recovered minks.
The sentencing of Johnson was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The government is represented by Ms. Biesenthal and Assistant U.S. Attorney William Ridgway.
Allentown Man Sentenced to 14 Years in Prison for 2012 White Jewelers RobberyRead the Press Release
HARRISBURG - The United States Attorney=s Office for the Middle District of Pennsylvania announced that Timothy Forbes, 34, of Allentown, Pennsylvania was sentenced today to 14 years by the Honorable William W. Caldwell for Forbes’ robbery conviction following a September 2015 plea.
According to United States Attorney Peter Smith, Forbes, along with Jamell Smallwood and Jesse Brewer, robbed the White Jewelers in York, Pennsylvania of more than fifty Rolex watches valued at over $500,000 on July 12, 2012. In the course of the robbery, Brewer shot the owner of the store, permanently disabling him. Brewer went to trial in September 2015 and a jury convicted him of robbery and firearms offenses. On February 24, 2016, he was sentenced to life imprisonment plus 20 years. Co-defendant Jamell Smallwood of Allentown, Pennsylvania pleaded guilty previously and was sentenced to 17 years for his role in this robbery.
This case was investigated by the Federal Bureau of Investigation and the York Area Regional Police Department, with assistance from the Allentown and New York City Police Departments. This case was prosecuted by Assistant United States Attorney Meredith A. Taylor.
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Albion Man Sentenced for Importing Α-PvpRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Donald Stirk, 36, of Albion, NY, who was convicted of importing α-PVP into the United States, was sentenced to 48 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that on March 5, 2015, Customs and Border Protection officers in Memphis, Tennessee conducted a routine inspection of a package mailed from China and addressed to the defendant in Albion. The inspection revealed that the package contained α-PVP (sometimes known as “flakka”), a Schedule I controlled substance. On March 13, 2015, law enforcement officers inspected another package from China addressed to the defendant, this time at the Albion Post Office, which again revealed α-PVP. Subsequent investigation revealed more such packages at the Albion Post Office. On April 15, 2015, officers performed a controlled delivery of several of the packages to the defendant at his Albion residence and then executed a search warrant at the residence revealing an additional quantity of α-PVP.
The sentencing is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Alabama’s First Day Reporting Center for Ex-offenders Open in BirminghamRead the Press Release
BIRMINGHAM – The Alabama Board of Pardons and Paroles hosted an open house Monday at the state’s first Day Reporting Center in Birmingham. The ceremony showcased the probation and parole officers and other staff, along with treatment providers and community partners who will make the program possible, announced Center Director Benita Daugharty and U.S. Attorney Joyce White Vance.
The non-residential, three-phase reporting center program will offer medium- to high-risk probationers and parolees in the Jefferson County area access to services, including targeted drug treatment, substance abuse intervention and rehabilitation, cognitive behavioral therapy, educational training, and assistance with employment. The program will require participants to perform community service and will foster opportunities for participants to positively transform criminal attitudes, behaviors, values and beliefs.
The program is made possible by a $687,176 Department of Justice, Bureau of Justice Assistance grant.
The DRC is an evidence-based program, modeled after the State of Georgia’s network of day reporting centers serving both urban and rural areas of the state. Alabama’s goal is to expand the program into a network of centers strategically placed to serve those areas of the state that would receive the most benefit. Mobile will be home to Alabama’s next DRC.
Pardons and Paroles Executive Director Phil Bryant stated his strong support for the reentry-minded endeavor. “The dedication of leadership at Pardons and Paroles, among DRC staff, local stakeholders and community partners, as well that of U.S. Attorney for the Northern District of Alabama, Joyce Vance, have all been critical for getting this program up and running,” he said. “Ongoing support will continue to be critical to the success of this program, which is currently serving its first 20 participants. We look forward to measuring the success of this program with help from our research partner and technical assistance provider,” Bryant said.
Board of Pardons and Paroles Chairman Cliff Walker also voiced his support for programming like the DRC to help strengthen the reentry process for offenders being paroled in Alabama. He likened the reentry process in Alabama to a boat full of holes that cannot rise with the tide until the holes – such as lack of employment opportunities, education, and family support -- can be plugged. He championed the DRC as a program that is geared towards filling those holes.
“The evidence that led Alabama to adopt prison reform suggests that when money saved by reducing the number of people in state prison is reinvested in community services to help those people successfully reenter their communities, we can reduce crime while saving on the cost of running our prison system,” Vance said. “The day reporting center in north Birmingham is an outstanding example of a program that seeks to reduce crime through prevention, enforcement and reentry services,” she said. “The center will follow best practices that have been proven in other states to reduce recidivism among ex-offenders.”
Abingdon Woman Sentenced on Methamphetamine ChargeRead the Press Release
ABINGDON, VIRGINIA – An Abingdon woman who was part of a conspiracy to distribute methamphetamine, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced today.
Shanna Danielle Moorefield, 29, of Abingdon, Virginia, previously pled guilty to one count of conspiring to possess with the intent to distribute methamphetamine. Today in District Court, Moorefield was sentenced to 42 months in federal prison and three years of supervised release thereafter.
“Methamphetamine, especially this powerful ‘ice’ form of methamphetamine,’ destroys the lives of those addicted to this dangerous drug,” United States Attorney John P. Fishwick Jr. said today. “My office will continue to be vigilant in working with our local, state and federal law enforcement partners to prosecute those who profit off the addictions of others.”
Moorefield was part of a conspiracy that operated in Southwest Virginia, Eastern Kentucky and Tennessee and transported and distributed “ice” methamphetamine in the area.
The investigation of the case was conducted by the Bristol Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Bristol Office of the Drug Enforcement Administration, the Virginia State Police, the Sheriff's Offices of Washington County, Russell County, Tazewell County, and Smyth County, the Commonwealth's Attorney's Offices of Russell County and Tazewell County and the police departments of Abingdon and Lebanon. Special Assistant United States Attorney Kevin Jayne prosecuted the case for the United States.
2 More in Identity Theft and Cigarette Trafficking Ring Sentenced to Federal PrisonRead the Press Release
Raleigh – The United States Attorney’s Office for the Eastern District of North Carolina announced that yesterday, Chief United States District James C. Dever, III, sentenced MAMADOU LAMARANA BAH, 25, of New York, to serve 72 months in prison, followed by 3 years of supervised release, on charges of Aggravated Identity Theft and Conspiracy to Commit Access Device Fraud. The sentence follows a prior hearing on January 26, 2016 in which codefendant ALPHA OUMAR DIALLO, 24, of New York, was sentenced to 95 months in prison and 3 years of supervised release. BAH and DIALLO were also both ordered to make restitution to victims.
The indictment charged that DIALLO and BAH engaged in a scheme to acquire, among other things, large quantities of cigarettes in North Carolina and elsewhere using counterfeit gift cards. The gift cards utilized by DIALLO and BAH in the scheme were counterfeit because the data encoded in the magnetic strip of the cards had been altered to contain credit and debit card numbers that were not encoded upon them at the time they were manufactured. Conspirators acquired stolen credit and debit card data from sources on the internet. DIALLO and others received the stolen credit and debit card data in the form of internet email accounts to which they had access. Conspirators used the stolen credit and debit card data to fraudulently re-encode cards for later use to purchase cigarettes and other items.
The indictment further charged that after acquiring several counterfeit cards, DIALLO and BAH used the cards, and caused the cards to be used, to purchase numerous cartons of cigarettes. The conspirators would generally travel from one store to another in a vehicle during a single trip to acquire a large volume of cigarettes. After acquiring the cigarettes, conspirators would transport them to other states to be resold at a profit.
The scheme was brought to an end on January 31, 2014 when DIALLO AND BAH attempted to continue the fraud at a gas station Halifax County. The two were caught in possession of numerous counterfeit cards and other evidence of the crime.
Investigation of the case was conducted by the United States Secret Service, with the assistance of the Halifax County Sheriff’s Office, the Wake County Sherriff’s Office, and Raleigh Police Department. Assistant United States Attorney William M. Gilmore represented the United States.
Tuesday 22 March 2016
World Water Day ObservedRead the Press Release
CEDAR RAPIDS, IA – Safe, sufficient, and reliable water resources are essential to the functioning of every aspect and sector of United States society, including agricultural and energy production, industry and economic growth, human and environmental health, and national security. Because of its importance, today marks the international observance known as World Water Day.
World Water Day dates back to the 1992 United Nations Conference on Environment and Development where an international observance for water was recommended. The United Nations General Assembly responded by designating March 22, 1993, as the first World Water Day. It has been held annually since then.
A White House Water Summit is being held today to raise awareness of the importance of water, and to catalyze ideas and actions to help address these issues through innovative solutions. The event will be livestreamed at www.whitehouse.gov, and the public is invited to join in online using the hashtag #WHWaterSummit.
United States Attorney Kevin W. Techau noted that the observance of World Water Day provides an opportunity to learn more about water related issues. Techau noted, “The Department of Justice litigates a wide range of criminal and civil environment enforcement cases under the Clean Water Act. Clean water is a life-giving, life-sustaining resource for the people of Iowa and people across America. The Act was enacted more than four decades ago because Americans realized how critically important this resource is to all of us. I am proud that we continue to use this law to protect the precious resource of water today, here in Iowa.”
Early this year the Federal Court in Cedar Rapids signed a consent decree between the City of Waterloo, the United States and the state of Iowa, which requires the city to comply with the Clean Water Act and take all steps necessary to come into full compliance with the Act.
Last year a Remsen, Iowa, man was sentenced in Federal Court to be confined following his guilty plea to one count of knowingly discharging a pollutant into a waterway of the United States. The discharge resulted in a massive fish kill.
More recently the office filed a four count civil complaint against a concentrated animal feeding operation (CAFO) for discharges of manure and process wastewater being discharged into an unnamed tributary of the Big Sioux River. The complaint is merely an allegation and the named defendant is presumed not liable until shown otherwise. A trial date has not been set. The United States is seeking civil penalties and injunctive relief.
The Clean Water Act (CWA) establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters. The basis of the CWA was enacted in 1948 and was called the Federal Water Pollution Control Act, but the Act was significantly reorganized and expanded in 1972. “Clean Water Act” became the Act's common name with amendments in 1972. It is one of the United States' first and most influential modern environmental laws. As with many other major U.S. federal environmental statutes, it is administered by the U.S. Environmental Protection Agency (EPA), in coordination with state governments.
Emergency events should be reported through the National Response Center at 1-800-424-8802; or on an Environmental Protection Agency form found at: www.epa.gov/enforcement/report-environmental-violations.
Follow us on Twitter @USAO_NDIA.
Winchester Man Sentenced for Computer CrimeRead the Press Release
HARRISONBURG, VIRGINIA – A Winchester man, who previously pled guilty to a federal computer crime, was sentenced today in the United States District for the Western District of Virginia in Harrisonburg, United States Attorney John P. Fishwick Jr. announced today.
Christopher Thomas Wood, 52, of Winchester, Virginia, previously pled guilty to one count of intentionally accessing and exceeding authorized access to a computer. Today in District Court, Wood was ordered to pay a fine of $2,000 and $61,710 in restitution.
“The prosecution of this case should serve as notice to everyone that the United States Attorney’s Office and our partners in law enforcement will investigate and punish those individuals who access protected computers without authorization,” United States Attorney John P. Fishwick Jr. said today.
According to evidence presented at previous hearings by Assistant United States Attorney Grayson Hoffman through a filed statement of facts, Wood worked for a company, “Victim Company,” that had offices and operations in Winchester, Virginia. Wood worked as a web developer in the IT department at Victim Company.
On or about January 8, 2014, the defendant was fired from Victim Company. As a result, Victim Company deactivated Wood’s electronic credentials which had given him access to the company’s internal computer network and file server systems. Shortly after being fired, Wood went home to his residence in the Winchester area, and through his home computer, remotely logged onto Victim Company’s computer system using another employee’s credentials, without that employee’s knowledge or consent.
Wood accessed Victim Company’s database, without their consent, and deleted many files from the company’s servers and disabled some of Victim Company’s accounts. When Victim Company noticed the damage they contacted law enforcement.
On February 4, 2015, law enforcement investigators interviewed Wood at his home, at which time he admitted to logging onto the company’s computer system, without their consent, and while using another employee’s credentials. He admitted that he deleted files and disabled accounts because he was upset about losing his job. IP information obtained by investigators corroborate that a computer in Wood’s home did in fact access Victim Company’s computer systems. It was later determined that Victim Company spent approximately $61,710 as a result of the damage caused by the defendant’s actions.
The investigation of the case was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Grayson Hoffman is prosecuting the case for the United States.
Wilson Man Sentenced to 130 Months for Heroin Trafficking and Firearms ChargesRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, United States District Judge Terrence W. Boyle, sentenced DUPREE TURNER, 29, of Wilson, North Carolina, to a total of 130 months in prison and 5 years of supervised released for three counts of distribution of heroin, one count of possession of firearm by a felon and brandishing a firearm during and in relation to a drug trafficking crime. TURNER previously pled guilty to these charges on November 5, 2015.
Between January 22, 2015, and April 16, 2016, the Greenville Regional Drug Task Force and Wilson Police Department used informants to buy a total of 800 bags of heroin from TURNER during five controlled purchases in Greenville and Wilson. During the controlled purchase on April 16, 2015, TURNER possessed and brandished a handgun. TURNER was arrested in Greenville following the last purchase. Agents located two additional handguns during a search of TURNER’S residence in Wilson. TURNER was prohibited from possessing firearms due to his 2007 convictions in New Jersey for robbery, conspiracy to commit robbery and possession of a sawed-off shotgun.
The investigation of this case was conducted by the Greenville Regional Drug Task Force, the Wilson Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Wheeling woman pleads guilty to heroin traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Alyssa Crow, 27, of Wheeling, pled guilty today to heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Crow sold heroin in November 2014 in Ohio County, West Virginia. She pled guilty today to one count of “Distribution of Heroin.” She 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.
United States Attorney Ihlenfeld prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Washington Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
BOISE – Sergio Maldonado-Farias, 39, of Monroe, Washington, pleaded guilty today in United States District Court to possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. He was charged by the U.S. Attorney’s Office on February 22, 2016.
According to the plea agreement, Maldonado-Farias had stopped his vehicle on the shoulder of I-84 near Jerome, Idaho. An Idaho State Police trooper arrived to assist Maldonado-Farias and subsequently asked for consent to search his vehicle. Mr. Maldonado-Farias granted consent and the officer located two bricks containing methamphetamine. The defendant admitted that he was transporting methamphetamine to distribute to another individual.
Sentencing is set for June 1 2016, before Senior United States District Judge Edward J. Lodge.
The charge of possession with intent to distribute methamphetamine is punishable by up to twenty years in prison, a maximum fine of $1,000,000, and up to three years of supervised release.
The case was investigated by the Drug Enforcement Agency and the Idaho State Police.
Waldorf Man Sentenced to 17 Years in Prison for Distribution of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Richard Spivey, age 52, of Waldorf, Maryland, today to 17 years in prison, followed by lifetime supervised release, for distribution of child pornography. U.S. District Judge George J. Hazel ordered that upon his release from prison, Spivey must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). Spivey was taken into custody immediately following his guilty plea on September 25, 2015 and he remains detained.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
According to Spivey’s plea agreement, between January 29 and 30, 2014, Spivey used a file sharing program to distribute over 2,000 files depicting children engaged in sexually explicit conduct. A search warrant was executed at Spivey’s residence on June 18, 2014, and law enforcement seized numerous electronic devices, including a desktop computer, a laptop computer and two external hard drives. A forensic review of the electronic devices found thousands of image files and hundreds of movie files containing child pornography. Some of the files portrayed sadistic and masochistic conduct and other depictions of violence, as well as images of infants and toddlers.
In addition, on Spivey’s electronic devices law enforcement found videos that Spivey produced, depicting a prepubescent female in different stages of undress. Spivey admitted that he surreptitiously recorded the child while she was undressing, using a hidden camera. These videos constitute child pornography. Finally, Spivey also admitted surreptitiously producing videos of an adult female, while that person was in the bathroom in various stages of undress.
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. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Nicolas A. Mitchell and Kristi A. O’Malley, who prosecuted the case.
Virginia man charged with enticement of a minor and traveling with intent to engage in illicit sexual conductRead the Press Release
A Virginia man was charged in federal court with enticement of a minor and traveling with intent to engage in illicit sexual conduct, law enforcement officials said.
David Lee Boesen, 33, of Hampton, Virginia, was arrested last week at Cleveland Hopkins International Airport after he traveled to Cleveland in order to meet and engage in sexual activity with what he believed to be a 14-year old girl.
From September 2015 through March 2016, Boesen engaged in dozens of sexually explicit conversations over Facebook messaging and through phone conversations with what he believed to be a female child, according to court documents.
Boesen sent numerous images of pornography, and mailed several gifts, including panties, marshmallow hearts, Skittles, cash, a pink stuffed bear holding a heart with the word “Princess” and more candy. He also repeatedly asked what he believed to be a 13-year-old girl (and later, a 14-year-old) to send him explicit images of herself and to promise to engage in sexual conduct with him, according to court documents.
On March 6, Boesen indicated his mother was concerned about him going to Ohio to meet a girl because he had previously been in trouble for meeting an underage girl. The undercover agent suggested that maybe they should not meet if Boesen had concerns. He responded that he was not scared and that he would be together with her forever, according to court documents.
A public records search revealed Boesen’s address and that he is a registered sex offender, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik following an investigation by the Ohio Internet Crimes Against Children Task Force and U.S. Immigration and Customs Enforcement – Homeland Security Investigations.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An charges is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two plead guilty to defrauding banks of $2.5 million through fraudulent short sales of gas stations in Youngstown areaRead the Press Release
A man from Warren, Ohio, and an Indiana man pleaded guilty to defrauding banks out of approximately $2.5 million through fraudulent short sales of gas stations in the Youngstown area and by other means, law enforcement officials said.
Shaukat Sindhu, 56, of Warren, and Tahir Iqbal, 48, of Crown Point, Indiana, are scheduled to be sentenced June 21.
Iqbal pleaded guilty to two counts of conspiracy to commit bank fraud and three counts of bank fraud. Sindhu pleaded guilty to two counts of conspiracy to commit bank fraud, one count of corrupt interference with the administration of the Internal Revenue Service, and one count of marriage fraud.
“These defendants took advantage of a program designed to help troubled property owners and instead gamed it to enrich themselves,” Acting U.S. Attorney Carole Rendon said. “They will deservedly be trading their mansion for a prison cell.”
"These two defendants have accepted responsibility for structuring real estate transactions that defrauded banks out of millions of dollars and lined their personal pockets," said Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office. "The FBI will continue to hold fraudsters like these accountable for their criminal actions."
“Attempting to skirt your income tax obligations by using multiple Social Security numbers, dealing in cash, and concealing income and assets in the names of nominees is a recipe for criminal prosecution,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Sindhu owned several gas stations and other commercial property, but at times failed to make mortgage payments on these properties. Sindhu, Iqbal and others defrauded First Midwest and Consumers National banks by making false and misleading omission and representations about ownership of the properties between 2008 and 2014. Iqbal acted as a straw buyer for Sindhu in a short sale, enriching Sindhu by reducing or eliminating the principle owned on the properties, according to court documents.
Iqbal also served as a straw buyer for Sindhu for a 16,800-square foot, nine-bedroom, 13-bathroom home in Oak Brook, Illinois. That home will be forfeited as part of the plea agreement.
This case is being prosecuted by Assistant U.S. Attorneys Chelsea Rice, Adam Hollingsworth and James Morford following an investigation by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigations and U.S. Immigrations and Customs Enforcement.
Two drug dealers appear in Federal court for heroin crimesRead the Press Release
CHARLESTON, W.Va. – Two heroin dealers appeared today in federal court on drug charges, announced Acting United States Attorney Carol Casto. Gavin Edwards, 32, of South Charleston, was sentenced to five years in federal prison for distribution of heroin. Edwards was also sentenced today to a year in federal prison for violating his supervised release after he served a prison sentence for a 2008 felony drug conviction in federal court. The sentences were ordered to be served consecutively. In a separate prosecution, Justin Randolph, 27, of Charleston, pleaded guilty to distribution of heroin.
Edwards admitted that on December 8, 2014, he sold approximately half a gram of heroin to a confidential informant working with the Metropolitan Drug Enforcement Network Team. Edwards completed the drug deal in the parking lot behind his apartment at 4832 Kanawha Turnpike Avenue in South Charleston. Edwards further admitted that on December 10, 2014, he sold the same confidential informant approximately 1.6 grams of heroin. On December 16, 2014, law enforcement executed a search warrant for the apartment and located over 250 grams of marijuana, over 250 grams of crack, and approximately $5,930 in cash. During the search, law enforcement also recovered an additional $1,569 in cash that Edwards had in his pockets.
In a separate heroin prosecution, Randolph admitted that on January 15, 2015, he sold heroin to a confidential informant working with the Kanawha County Sheriff’s Department. The drug deal took place in the parking lot of the Dunbar Kroger. Randolph faces up to 20 years in federal prison and a $1 million fine when he is sentenced on June 22, 2016.
The Metropolitan Drug Enforcement Network Team investigated the Edwards case. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. Senior United States District Judge David A. Faber imposed the sentence.
The investigation of Randolph was conducted by the Kanawha County Sheriff’s Department. Assistant United States Attorney John J. Frail is handling the prosecution. Randolph’s plea hearing was held before United States District Judge Thomas E. Johnston.
These cases were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Twin Falls County Man Pleads Guilty to Unlawful Possession of FirearmsRead the Press Release
BOISE – Michael A. Southerland, 26, of Twin Falls County, Idaho, pleaded guilty yesterday in United States District Court to unlawful possession of firearms, U.S. Attorney Wendy J. Olson announced. Southerland was indicted by a federal grand jury on November 10, 2015.
According to the plea agreement, Southerland admitted that on October 28, 2015, he knowingly possessed two firearms after having been convicted of felony possession of a destructive device in California.
Southerland was arrested after law enforcement responded to a 911 call to the residence that he shared with his girlfriend, Lillian Cawley, and her daughter. The residence formerly belonged to Glen Cawley, Lillian Cawley’s estranged husband. In March 2015, Glen Cawley was found dead at the residence, having been shot in the back of the head with a shotgun. Lillian Cawley and Southerland subsequently moved into the residence. The murder of Glen Cawley is still under investigation.
Sentencing is set for June 14, 2016, before Chief United States District Judge B. Lynn Winmill.
The charge of unlawful possession of firearms is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
The case was investigated by the Federal Bureau of Investigation and the Twin Falls Sheriff’s Office.
Texas Man Sentenced for Obstructing Federal Hate Crime InvestigationRead the Press Release
CORPUS CHRISTI, Texas - Carlos Garcia, 29, was sentenced to 48 months years in prison for making false statements in connection to the March 8, 2012, assault of a gay African-American man in Corpus Christi, announced U.S. Attorney Kenneth Magidson and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.
Garcia pleaded guilty in January 2016 to one count of false statements to law enforcement. The sentence was imposed today by U.S. District Judge Hayden Head of the Southern District of Texas. Garcia will also serve three years of supervised release following completion of the prison term.
During his plea hearing, Garcia admitted he made false statements to the FBI regarding the assault of a gay African-American man. Garcia denied being present during the assault, when in fact he participated in a portion of the assault.
Garcia is the third and last person to plead guilty in connection to the hate crime. Co-defendants Jimmy Garza Jr. and Ramiro Serrata Jr. were previously sentenced for their roles in the assault, each receiving 15-year sentences for their conduct.
During their pleas, Garza and Serrata admitted they engaged in a protracted assault of a gay, African-American man because of his race and sexual orientation. Garza and Serrata admitted they punched and kicked the man and assaulted him with various weapons, including a frying pan, a mug, a sock filled with batteries, a broom and a belt. Garza also poured bleach onto the victim’s face and into his eyes, and Garza struck the victim in the head with a handgun.
“Individuals who participate in hate crimes will continue to be the focus of federal criminal investigations in this district and this case illustrates that point,” said Magidson. “We simply will not tolerate the actions of anyone associated with these types of crimes, whether an active participant or one that seeks to hinder our efforts by lying, misleading or otherwise providing false information to law enforcement. This office will continue to ensure everyone is ultimately held accountable for their actions in federal court.”
“This defendant lied about the facts of this terrible crime that violated our society’s most basic standards of human decency and dignity,” said Gupta. “The Department of Justice will continue to aggressively prosecute anyone who tries to obstruct justice by lying to law enforcement or covering up criminal activity.”
The charges are the result of an investigation by the FBI’s Corpus Christi Resident Agency with assistance from the Corpus Christi Police Department. Assistant U.S. Attorney Ruben Perez is prosecuting the case along with Trial Attorneys Jared Fishman and Nicholas Durham of the Civil Rights Division’s Criminal Section.
Spanish Citizen Arrested After Illegal EntryRead the Press Release
The U.S. Attorney for the District of Vermont announced that U.S. Border Patrol Agents arrested a Spanish citizen who crossed the Vermont-Canadian border near Canaan on Monday evening, March 21, 2016.
A Criminal Complaint filed in U.S. District Court in Burlington alleges that, at approximately 6:30 PM on March 21, 2016, a concerned citizen reported a man hiding in the woods near her home to a U.S. Border Patrol agent assigned to the Beecher Falls station. Agents responded to the area and encountered Cristian Aquino-Montillo. Aquino-Montillo, 21, claimed to be a citizen of Spain and could not produce any documentation allowing to enter or be present in the United States. Agents arrested Aquino-Montillo and transported him to the Beecher Falls station for further investigation.
Record checks confirmed that Aquino-Montillo is a citizen of Spain. The checks also revealed that he is a permanent resident of the Dominican Republic. He was removed to the Dominican Republic on July 15, 2014, because he remained in the United States after his tourist visa expired.
The Criminal Complaint charged Aquino-Montillo with re-entry after removal. If convicted, he faces a maximum of 2 years imprisonment and a $250,000 fine. Aquino-Montillo also faces removal from the United States and a bar to re-entry.
Aquino-Montillo had a court appearance before U.S. Magistrate Judge John M. Conroy on March 22.
The United States Attorney emphasizes that these charges are merely accusations, and that the defendants are presumed innocent unless and until they are proven guilty.
“We rely upon local residents to report suspicious activity near the border,” said Patrol Agent in Charge Paul Kuhn. “This information prevented a felon from entering the United States.”
The Swanton Sector is responsible for securing the land border between ports of entry in Vermont, New Hampshire and northeastern New York. The assistance of citizens is invaluable to their border security mission and they welcome community members to help them keep our nation’s borders safe and report suspicious activity at 1-800-689-3362.
For more on Customs and Border Protection’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
United States Attorney Eric S. Miller commended the investigative efforts of the United States Border Patrol.
The United States is represented in this matter by Assistant U.S. Attorney Jon Ophardt.
Shoshone Man Sentenced to 130 Years for Producing Child PornographyRead the Press Release
BOISE –William Roger Wilkinson, 54, of Shoshone, Idaho, was sentenced today to 130 years in federal prison for sexually exploiting an eight-year-old child on three occasions by using her to produce sexually explicit images, possessing child pornography and accessing child pornography with intent to view, U.S. Attorney Wendy Olson announced. Chief U.S. District Judge B. Lynn Winmill also sentenced Wilkinson to a term of supervised release of five years, and entered an order forfeiting Wilkinson's interest in his former Shoshone home and real property where the child pornography was produced, and the electronic equipment used to commit the offenses. The proceeds of the forfeiture will be used to satisfy the Court's order of restitution to the victims of the offenses, which totals $155,766.36. Wilkinson was convicted by a jury on October 29, 2015, after a five-day trial.
According to the evidence presented at trial, the investigation began in May 2013, after an eight-year-old child disclosed that Wilkinson had taken sexually explicit pictures of her. Lincoln County Sheriff’s deputies arrested Wilkinson in May 2013, and searched his home in Shoshone, Idaho. During the investigation, Wilkinson was released on bond, but a warrant was issued for his arrest after the investigation revealed child pornography on a desktop computer taken from his residence. Wilkinson fled his place of work in Twin Falls, Idaho, when deputies attempted to arrest him on November 2, 2013. The United States Marshal’s Service Fugitive Task Force in Salt Lake City, Utah, arrested Wilkinson on November 12, 2013. The FBI obtained a warrant to search the truck Wilkinson had driven to Utah and found a laptop computer and other evidence.
A forensic examiner from the FBI’s Intermountain West Regional Computer Forensics Lab located images on both the desktop computer and the laptop computer depicting Wilkinson and the eight-year-old child engaging in sexually explicit conduct. That evidence showed that on November 3, 2012, on December 9, 2012, and on March 3, 2013, Wilkinson knowingly used, persuaded, or coerced an eight-year-old child to take part in sexually explicit conduct and produced visual depictions of that conduct. Data imbedded in the digital photos showed that they were taken at Wilkinson’s home in Shoshone, Idaho. The evidence further showed that Wilkinson searched for, and viewed, websites containing child pornography on his desktop computer.
"Appropriately, Mr. Wilkinson will spend the rest of his life in federal prison, where he can no longer directly harm his young victim or pose any further threat to children," said Olson. "This sentence sends the strong and clear message that those who prey on the most vulnerable among us will face sure and stern punishment."
The case was investigated by agents from the Federal Bureau of Investigation in Idaho and Utah, and deputies from the Lincoln County, Idaho, Sheriff’s Department and the United States Marshals Service.
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.”
Selby Man Sentenced to 40 Years for Producing Child Pornography and Distribution of Child PornographyRead the Press Release
United States Attorney Randolph J. Seiler and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced that a Selby, Walworth County, South Dakota, man convicted of Sexual Exploitation of a Child and Distribution of Material Involving the Sexual Exploitation of Minors was sentenced on March 21, 2016, by U.S. District Court Judge Roberto A. Lange.
Christopher R. Jansen, age 36, was sentenced to 480 months in custody, a lifetime of supervised release, and a $200 special assessment to the Federal Crime Victims Fund. He must also register as a sex offender and have no contact with minors as well as his victims and their immediate family.
Jansen was indicted for Sexual Exploitation of a Child, Distribution of Material Involving the Sexual Exploitation of Minors, and Possession of Child Pornography by a federal grand jury on October 15, 2014. He pled guilty to the first two offenses on November 17, 2015.
Jansen was an attorney who has worked in Central South Dakota. He lived and worked in Walworth County, where he maintained a law firm in Mobridge and a residence in Selby. He was the Walworth County State’s Attorney from approximately 2009 to 2012. Jansen had a professional attorney-client relationship with a family from Central South Dakota, and the minor victims identified in the Superseding Indictment are members of that family. He represented the family on family law related matters. Jansen befriended the client’s family and developed a relationship with the minors. He visited their home, the family visited his home, and there were situations where Jansen was alone with or stayed overnight with the children.
Regarding the charge of Sexual Exploitation of a Child, Jansen engaged in repeat acts of sex with one of the children. He had sexual encounters with the child for approximately 2 years. He videotaped about 8 of these encounters, and maintained these videos on his media within his Selby home. He also produced 6 to 7 images of these encounters and maintained those images on his computer media at his home. He engaged in other sexual encounters with another minor in his client’s family, and he produced videos and images related to sexual acts and sexual contact with at least two of the minors.
Jansen refers to himself as a pedophile and indicated he has been dealing with his attraction to and acting out upon minors for a number of years. He knows his attraction to minors is illegal. He admits he loses control at times and that is when he molests minors and says he sometimes satisfies his desire for children by looking at child pornography.
Regarding the charge of Distribution of Material Involving the Sexual Exploitation of Minors, Jansen was a member of a website that is used to distribute child pornography. The website is an online bulletin board whose primary purpose is the advertisement and distribution of child pornography. The website requires its users to continually upload child pornography in order to gain and keep membership. Since at least December 2013, Jansen was a member of the website and has himself distributed materials containing child pornography, including both materials that involve the family, as well as other child pornography. On the website, Jansen indicated he was interested in boys in the age range of 5 to 12 years old. He used an image of his client’s child as his avatar picture on the website. Law enforcement officers observed images available on the website which establish that Jansen shared images of his client’s child, and the distribution of those materials affected interstate and foreign commerce and were distributed by the use of a computer. Jansen came to possess other images and videos of child pornography as he liked to view images and videos of prepubescent males. He last utilized this child pornography sharing website on approximately Sunday, July 27, 2014, before his arrest by state and federal law enforcement officers two days later on July 29, 2014.
Jansen was arrested on July 29, 2014, following searches of his home and law office. On September 25, 2015, Jansen was sentenced in Hughes County, South Dakota, to serve 50 years in prison for two separate convictions of first degree rape. His federal sentence on child pornography charges was ordered served concurrently to his state court rape charges.
The investigation was conducted by the Federal Bureau of Investigation, the South Dakota Division of Criminal Investigation, with assistance from the Walworth County Sheriff’s Office and the Mobridge Police Department. Supervisory Assistant U.S. Attorney Tim Maher of the District of South Dakota and Acting Assistant Deputy Chief Keith Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case. At the conclusion of his federal sentencing, Jansen was remanded to the custody of the U.S. Marshals Service for transfer back to state authorities to begin serving his state sentence.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Rochester Woman Sentenced for Role in Burglary Leading to Death of Elderly Medina Comic Book CollectorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Arlene Combs, 31, of Rochester, NY, who was convicted of racketeering, was sentenced today to 240 months by U.S. District Judge Richard J. Arcara.
“This case, which began with greed, ended in the murder of a senior citizen,” said U.S. Attorney Hochul. “As this sentence demonstrates, law enforcement will be relentless in pursuing each and every person responsible for Mr. Marciniak’s, regardless of role in that crime.”
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, said that Combs and co-defendant Rico Vendetti hired three men, Donald Griffin, Albert Parsons, and Juan Javier, to travel from Rochester to the Medina, NY home of 78 year old Homer Marciniak to steal Marciniak’s valuable comic book collection in exchange for $1,000 each.
In executing their plan, in the early morning hours of July 4, 2010, Combs, along with Griffin, Parson, and Javier, drove from Rochester to Medina and cut Marciniak’s phone line.
In the early morning hours of the following day, July 5, 2010, the defendants returned to Marciniak’s home. Wearing ski masks and gloves, Griffin, Parsons, and Javier forcibly entered and during the course of the burglary, Marciniak, who had a serious heart condition, awoke and confronted the burglars. Griffin struck Marciniak in the face and then, along with Javier, bound his hands with bed linens. Javier then verbally threatened Marciniak with a BB gun in hand. Parsons, Griffin, and Javier ultimately located the comic book collection along with several strong boxes containing cash, coins, and other valuables.
After Griffin, Parsons, and Javier fled the scene with Combs, Marciniak freed himself and was taken to Medina Memorial Hospital for treatment of his facial injuries. However, after Marciniak was treated and released, he suffered a heart attack, was re-admitted to the hospital, and died shortly thereafter. Medical experts concluded that the blow Griffin struck, as well as the emotional trauma caused by the burglary, directly contributed to Marciniak’s cardiac arrest and resulting death.
Griffin, Parsons, and Javier gave the comic books to Combs who, along with another codefendant, Terry Stewart, took the comic books to Vendetti later in the day on July 5. Once Vendetti learned that the burglary resulted in Marciniak’s death, however, Vendetti disposed of the comic books.
Law enforcement officials within the Rochester Police Department identified the defendants during the course of separate investigation in October 2010. The defendants were arrested soon thereafter. In February and March 2011, Combs attempted to persuade Javier to not communicate with law enforcement about the July 2010 burglary and subsequent death of Homer Marciniak.
The burglary grew out of an organized shoplifting ring that stole hundreds of thousands of dollars in merchandise from retail stores such as Walmart, Sears, Home Depot, JoAnn Fabrics, Tops, and Wegmans. Vendetti, the former owner of Eastside Gold & Car Audio, formerly in Rochester, New York, along with codefendant, Dayon Shaver, purchased the stolen merchandise for 25¢ on the dollar and then sold the stolen merchandise on eBay for about half of its retail value, primarily to out-of-state customers.
Also convicted in connection with this case:
• Rico Vendetti was convicted of racketeering and is scheduled to be sentenced on April 20, 2016.
• Donald Griffin was convicted of committing a violent crime in aid of racketeering: murder, and is scheduled to be sentenced on April 7, 2016.
• Albert Parsons was convicted of a violent crime in aid of racketeering: assault resulting in bodily injury, and is scheduled to be sentenced in May 2016.
• Juan Javier, who was 17 at the time of the burglary, was prosecuted as an adult in Orleans County and sentenced to seven years in state prison.
• Terry Stewart was convicted of racketeering and was sentenced to 55 months in federal prison.
• Dayon Shaver was convicted of conspiring to traffic in stolen goods across state lines on March 21, 2016, and was sentenced to 46 months in federal prison.
• Brandon Meade was convicted of conspiring to traffic in stolen goods across state lines and was sentenced on January 21, 2016 to time-served after serving nine months in federal prison.The sentencing is the result of an investigation on the part of Special Agents from the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the New York State Police, under the direction of Major Craig Hanesworth, the Orleans County Sheriff’s Department, under the direction of Sheriff Scott Hess, the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn, the Medina Police Department, under the direction of Chief Jose Avila and Officers from the Rochester Police Department, under the direction of Chief Michael Ciminelli. Special assistance was provided by Orleans County District Attorney Joseph Cardone.
Roanoke Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
ROANOKE, VIRGINIA – A Roanoke man, who previously pled guilty to being a convicted sex offender who failed to properly register as such, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick Jr. announced today.
Donato Antonio Richardson, 37, of Roanoke, Virginia, pled guilty in December 2015 to one count of failing to register as a convicted sex offender. Today in District Court, Richardson was sentenced to 30 months in Federal prison and five years of supervised release thereafter.
“The Sex Offender Registration and Notification Act is in place to keep our communities safe,” United States Attorney John P. Fishwick Jr. said today. “When those required to submit to the rules of SORNA do not comply, they must be held accountable.”
According to evidence presented at previous hearings by Assistant United States Attorney Charlene R. Day, Richardson was released from the custody of the Federal Bureau of Prisons on July 15, 2015 and began serving a term of supervised release. However, Richardson failed to report to his federal probation officer within 72 hours of his release, as required and also failed to register with the District of Columbia Sex Offender Registry. On August 27, 2015, following an investigation by the United States Marshals Service, Richardson was arrested in Roanoke, Virginia.
The investigation of the case was conducted by United States Marshals Service. Assistant United States Attorney Charlene R. Day prosecuted the case for the United States.
Ringleader of Mortgage Loan Modification Scheme Pleads GuiltyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ARIA MALEKI, 33, of Santa Ana, Calif., pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to conspiring to defraud homeowners across the United States who were seeking mortgage loan modifications.
According to court documents and statements made in court, MALEKI and others jointly operated a series of California-based companies that falsely purported to provide home mortgage loan modifications and other consumer debt relief services to numerous homeowners in Connecticut and across the United States in exchange for upfront fees. The defendants did business, at various times, as “First Choice Financial Group, Inc.,” “First Choice Financial,” “First Choice Debt,” “Legal Modification Firm,” “National Freedom Group,” “Home Care Alliance Group,” “Home Protection Firm,” “Hardship Center,” “Network Solutions Center, Inc.,” “Premiere Financial Center,” “Premiere Financial,” “Rescue Firm,” “International Research Group LLC,” “Hardship Solutions,” “American Loan Center,” “Loan Retention Firm,” “Clear Vision Financial,” “Green Tree Financial Group,” “Green Tree Financial,” “Enigma Fund, Inc.,” “National Aid Group,” “Southern Chapman Group LLC,” “Save Point Financial,” “Best Rate Financial Solutions,” “Best Rate Financial Solution,” “Best Rate Financial,” “Best Rate Finance Group,” “Nation Star Financial,” and “Nation Star Fin Group.”
Acting as representatives of these entities, MALEKI and his co-conspirators cold-called homeowners and offered to provide mortgage loan modification services to those who were having difficulty repaying their home mortgage loans. The defendants charged homeowners fees that typically ranged from approximately $2,500 to $4,300 for their services. To induce homeowners to pay these fees, the defendants falsely represented that the homeowners already had been approved for mortgage loan modifications on extremely favorable terms; the mortgage loan modifications already had been negotiated with the homeowners’ lenders; the homeowners qualified for and would receive financial assistance under various government mortgage relief programs, including the Troubled Asset Relief Program and the Home Affordable Modification Program; and if for some reason the mortgage loan modifications fell through, the homeowners would be entitled to a full refund of their fees.
In fact, the homeowners had not been preapproved for mortgage loan modifications with lenders, mortgage loan modifications had not been negotiated with the lenders, homeowners had not qualified for and did not receive any financial assistance through government mortgage relief programs, and homeowners did not receive a refund of their fees upon request. Few homeowners ever received any type of mortgage loan modification through the defendants’ companies, and few homeowners received refunds of their fees.
Participants in the scheme used pseudonyms and periodically changed their business and operating names to evade detection. The defendants also directed homeowners to mail their checks to addresses and mail boxes that the defendants and their co-conspirators had set up in states other than California.
MALEKI presided over the entire structure of this scheme. As a result, more than 1,000 homeowners suffered losses totaling more than $3 million.
On January 21, 2016, a grand jury in New Haven returned an indictment charging MALEKI and six other California residents with conspiracy and fraud offenses related to this scheme. The defendants were arrested on January 26.
MALEKI pleaded guilty to one count of conspiracy to commit mail and wire fraud, an offense that carries a maximum term of imprisonment of 20 years. He also has agreed to pay restitution of approximately $3 million. Sentencing is scheduled for June 14, 2016.
MALEKI also has agreed to forfeit approximately $350,000 that investigators seized from various bank accounts, approximately $362,000 sized from a Bitcoin account, a $100,000 cashier’s check, and a 2013 Ferrari 458 Italia.
Three other defendants, Mehdi Moarefian, a.k.a. “Michael Miller,” 36, and Daniel Shiau, a.k.a. “Scott Decker,” 30, both of Irvine, Calif., and Serj Geutssoyan, also known as “Anthony Kirk,” 33, of Santa Ana, Calif., previously pleaded guilty to the same charge and await sentencing
This matter is being investigated by the U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Housing Finance Agency – Office of Inspector General, and Federal Bureau of Investigation, with assistance from the Oklahoma Attorney General’s Office.
The case is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and Sarah P. Karwan.
Richmond man indicted in social security fraud schemeRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced the indictment of a Richmond Indiana man on one count of Social Security Fraud. Daniel M. Glunt, 56, was charged by a federal grand jury sitting in Indianapolis for his role in defrauding the treasury of over $55,000.
“Social Security benefits are reserved for those who cannot provide for themselves and need legitimate help from the government,” said Minkler. “Those who choose to take advantage of this and other supplemental income sources will be held strictly accountable.”
Mr. Glunt applied for Supplemental Social Security (SSI) benefits in 2008, claiming he had no sources of earned or unearned income. Glunt certified at the time of his application and many times subsequent, that he had no additional income. Investigators for the Social Security Administration Office of Inspector General learned that Glunt was employed by a trucking company in Cincinnati, Ohio, and had been employed for the majority of time he was collecting SSI. He received SSI benefits continuously from April 2009, until August 2015.
SSI is a federal funded program designed to administer cash assistance to the aged, blind or disabled who have little or no resources to live. The SSI program is directly tied to the applicant’s income and other circumstances that affect financial need. To qualify an applicant must certify that they are unable to engage in substantial gainful work as a result of physical or mental impairment that is terminal or expected to last at least 12 months.
“Supplemental Security Income is a lifeline for many disabled Americans. The Office of the Inspector General is committed to investigating and pursuing those individuals who violate the public trust and defraud American taxpayers. I’m grateful that the U.S. Attorney’s Office shares our determination to ensure the integrity of the Social Security Administration’s programs,” said Special Agent-in-Charge Tracey Thanos, Social Security Administration, Office of the Inspector General.
According to Assistant United States Attorney Cynthia J. Ridgeway who is prosecuting this case for the government, Glunt could face up to five years in prison if convicted.
An indictment is only a charge and not evidence of guilt. All individuals are presumed innocent until proven otherwise in federal court.
Polo Woman Pleads Guilty to Bank EmbezzlementRead the Press Release
ROCKFORD — A Polo, Ill. woman pleaded guilty today in federal court before U.S. District Judge Frederick J. Kapala to embezzling $59,560.88 from First State Bank Shannon-Polo.
KAYLA C. BERGSTROM, 46, of Polo, was First Vice-President of First State Bank, with branches located in Polo and Shannon, Ill.
According to the plea agreement, Bergstrom had the highest security level assigned in the bank’s software program, which controlled all customer bank accounts, the bank’s general ledger accounts, adding new accounts, and the maintenance of all bank accounts. Bergstrom’s responsibilities included reconciling all of the bank’s correspondent accounts including the bank’s correspondent account with US Bank. Bergstrom stated in the plea agreement that between Feb. 23, 2010 and Feb. 3, 2014, she embezzled a total of $59,560.88 from First State Bank by creating 34 separate cash advance tickets for the bank’s correspondent account at US Bank and crediting the amounts of cash advance tickets to her personal account and the business account for her husband’s automobile repair business. Bergstrom admitted in her plea agreement that she concealed her embezzlement by changing the balances on the bank’s US Bank account statements by manually cutting and pasting false account balances on the statements. The deposits of the bank were insured by the Federal Deposit Insurance Corporation.
Bergstrom faces a maximum sentence of 30 years’ imprisonment, a term of supervised release of up to five years following imprisonment, and a fine of up to $1 million. Sentencing for Bergstrom is set for June 28, 2016, at 9:00 a.m. before U.S. District Judge Philip G. Reinhard.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and Joseph Moriarty, Special Agent in Charge for the Chicago Regional Office, Federal Deposit Insurance Corporation - Office of Inspector General.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Plea Agreement
Pitt County Behavioral Health Businessman Sentenced to 20 Years in Federal Prison for Medicaid FraudRead the Press Release
WILMINGTON – The United States Attorney’s Office for the Eastern District of North Carolina announced that yesterday in federal court, TERRY LAMONT SPELLER, 38, of Winterville, North Carolina, was sentenced to 240 months in federal prison and 3 years of supervised release following his prior guilty plea to Health Care Fraud, and Engaging in Monetary Transactions in Criminally Derived Property. SPELLER was also ordered to make restitution of $5,962,189.77 to the victims of the offense, which included the North Carolina Medicaid program and a physician, whose name and identification number SPELLER used to commit the fraud.
Acting United States Attorney John Stuart Bruce stated, “Speller defrauded the taxpayer and attempted to intimidate a federal witness. The U.S. Attorney’s Office will vigorously prosecute those who steal from a program designed to help the less fortunate and those who try to subvert the justice system by threatening witnesses.”
“Speller thought his clever scheme, which included billing for services never rendered, identity theft and a sham nonprofit was undetectable. He was clearly outwitted by law enforcement,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. “Today, Speller received a bill for hard prison time and millions of dollars payable to U.S. taxpayers.”
Special Agent in Charge Thomas J. Holloman III of IRS Criminal Investigation said, “IRS, Criminal Investigation is committed to ‘following the money,’ in this case the taxpayer dollars purloined from the Medicaid system, and removing the financial incentive of crime.”
The Criminal Information to which SPELLER pleaded guilty provides that between 2010 and 2015, TERRY LAMONT SPELLER was an individual doing business through various Outpatient Behavioral Health and Outpatient Health Service providers in Pitt County and surrounding areas within the Eastern District of North Carolina. Through these providers, SPELLER recruited hundreds of Medicaid beneficiaries, mostly children, from various communities in Eastern North Carolina to receive alleged services compensable by Medicaid.
In 2010, North Carolina’s Division of Medical Assistance (DMA), which administers the Medicaid program in this state, began an investigation of one of SPELLER’s companies based upon allegations that the company was billing for services that were not actually rendered. DMA requested that SPELLER produce the underlying medical records to support the provider’s prior claims to Medicaid. SPELLER did not provide records to support the services that were billed. As such, the provider was suspended from further participation in Medicaid programs, and DMA would have rejected further attempts by SPELLER to become a provider.
Count One of the Criminal Information alleged that SPELLER affiliated himself with various other providers that he, and others working with him, used to bill the Medicaid program for millions of dollars in fraudulent claims. Count Two of the Criminal Information charged that SPELLER converted approximately $1 Million of the fraud proceeds into alleged loan payments to a third party. Despite investigation, however, no documentation was recovered to support the existence of the loans. The loan proceeds were then transferred back to SPELLER in cash.
Although SPELLER pleaded guilty, he contested numerous sentencing enhancements, resulting in a full day of testimony and argument before Senior United States District Judge James C. Fox. At sentencing, the Government’s evidence showed that SPELLER began fraudulently billing the Medicaid program in 2010 in connection with a Medicaid provider he operated, known as Carter Behavior Health Services. The evidence showed that stacks of fraudulent medical records were generated to bill the government for fictitious services. After learning of the fraud, North Carolina’s Division of Medical Assistance (DMA), suspended the defendant’s company as a Medicaid provider.
The evidence showed, however, that SPELLER continued to find ways to defraud the Medicaid program. Testimony at the sentencing hearing revealed that SPELLER used the names of other providers, some of which were operated through companies placed in the names of close family members, to continue to submit fraudulent claims.
Much of the testimony focused upon SPELLER’S involvement with a clinic known as the “Medical Office” which operated in Greenville, North Carolina. The evidence showed that SPELLER defrauded the Medicaid program by submitting an altered check to the program for the purposes of establishing a direct deposit into a bank account of an alleged nonprofit business operated by SPELLER, known as Distinct Advantage Behavior Health. After establishing this direct deposit, SPELLER and others fraudulently caused Medicaid to pay out some $4.9 million in funds.
Special Agents with North Carolina’s Medicaid Investigations Division, the United States Department of Health and Human Services Office of the Inspector General, and the Internal Revenue Service Criminal Investigation, executed search warrants at the Medical Office and Distinct Advantage Behavior Health in October of 2014. In a safe inside the defendant’s office, agents recovered the fraudulent check used by SPELLER to deceive the Medicaid program. Agents also found no medical records to support the $4.9 million paid into the defendant’s bank account.
SPELLER’s scheme was halted in May of 2015 when he threatened to kill a witness against him. Evidence at the sentencing hearing showed that when the witness indicated that they would testify against SPELLER, SPELLER drove the witness off of a roadway and displayed a firearm. SPELLER was arrested shortly thereafter on a federal warrant, and has been in custody since that time.
The investigation of this case was conducted by agents of the North Carolina State Bureau of Investigation assigned to the Medicaid Investigations Division of the North Carolina Attorney General’s Office; The Internal Revenue Service - Criminal Investigation; and the United States Department of Health and Human Services Office of the Inspector General. The investigation and prosecution of this matter is being handled in a partnership between the United States Attorney’s Office for the Eastern District of North Carolina and the Medicaid Investigations Division of the North Carolina Attorney General’s Office. Assistant United States Attorney William M. Gilmore of the Economic Crimes Division, and Special Assistant United States Attorney Daniel Spillman of the Medicaid Investigations Division of the North Carolina Attorney General’s Office, each represented the United States.
If you suspect Medicare fraud please report it by phone at 1-800-447-8477 (1-800-HHS- TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Philadelphia Pair Indicted on Drug and Gun ChargesRead the Press Release
PHILADELPHIA - William Upson, a/k/a Jamal, 34, and Todd Smith, a/k/a Tyrone Smith, 37, both of Philadelphia, PA, were charged today by Indictment with drug trafficking and weapons charges, announced United States Attorney Zane David Memeger. The charges include possession with intent to distribute controlled substances, possession with intent to distribute controlled substances within 1,000 feet of a school, possession of a firearm in furtherance of drug trafficking, and possession of a firearm by a convicted felon.
If convicted of all charges, Smith faces a mandatory minimum sentence of 20 years in prison with a maximum sentence of life, at least six years and up to lifetime supervised release, a possible fine, and a $400 special assessment. Upson faces a mandatory minimum sentence of six years in prison with a maximum sentence of life, at least six years and up to lifetime of supervised release, a possible fine, and a $400 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Arlene Fisk.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Partners in Drug Distribution Conspiracy Each Sentenced to More Than 18 Years in PrisonRead the Press Release
TRENTON, N.J. – Two New Jersey men who were partners in a 29-month drug distribution conspiracy involving cocaine, marijuana, ecstasy and methylone were each sentenced to more than 18 years in prison, U.S. Attorney Paul J. Fishman announced.
Christopher Castelluzzo, 31, of Bayonne, New Jersey, was sentenced today to 240 months in prison. Luke Atwell, 34, of Hamilton, New Jersey, was sentenced yesterday to 220 months in prison. Both defendants were convicted of conspiracy to distribute or possess with intent to distribute methylone, cocaine, MDMA, and marijuana following a two-week trial before U.S. District Judge Freda L. Wolfson, who imposed the sentences in Trenton federal court.
According to documents filed in this case and the evidence at trial:
Atwell and Castelluzzo were partners in a drug dealing conspiracy that spanned 29 months. In March 2013, the Drug Enforcement Administration (DEA) conducted an investigation resulting in the seizure of more than six kilograms of methylone at a drug mill in East Orange, New Jersey, that was tied to Atwell and Castelluzzo.
About a month later, in April 2013, agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), seized 2.9 kilograms of methylone that Atwell intended to pick up at the Manville, New Jersey, Post Office. Agents replaced the package with a dummy package, which Atwell picked up and placed in the car he occupied with Castelluzzo. Following the arrest of both defendants outside the Manville Post Office, agents searched various electronic devices of the defendants and uncovered email communications establishing a drug distribution conspiracy dating back to 2010.
In addition to the prison terms, Judge Wolfson sentenced both Atwell and Castelluzzo to three years of supervised release.
U.S. Attorney Fishman credited special agents of HSI, under the direction of Special Agent in Charge Terence S. Opiola, and special agents of the DEA, New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, for the investigation.
Defense counsel:
Castelluzzo: Dawn M. Florio Esq., New York
Atwell: Pasquale F. Giannetta Esq., Wayne
Owner of Home Health Care Agency Sentenced to Five YearsRead the Press Release
NEWARK, N.J. - The owner of a home health agency was sentenced today to 60 months in prison for her role in a $7 million scheme to defraud Medicaid and engage in bribery, money laundering, and tax evasion, U.S. Attorney Paul J. Fishman announced.
Irina Krutoyarsky, 62, of Springfield, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging her with conspiracy to commit health care fraud, bribery, conspiracy to commit money laundering, and tax evasion. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Krutoyarsky owned HHCH Health Care Inc., of Linden, New Jersey, which provided home health aides and health care services to New Jersey residents. Home health aides visit patients at their homes and provide a variety of health care services, such as assistance with eating, dressing, and grooming. These home health aide services were subsidized under the N.J. Medical Assistance Program (Medicaid).
Krutoyarsky and her conspirators defrauded Medicaid by submitting false documents to the N.J. Board of Nursing, the state agency responsible for issuing home health aide certifications. Krutoyarsky falsely represented that prospective home health aides had attended and satisfactorily completed required training and testing. In truth, Krutoyarsky charged prospective home health aides hundreds of dollars for fraudulently obtaining their certifications.
Krutoyarsky also fraudulently billed Medicaid for services not actually rendered to patients. Numerous HHCH home health aides routinely falsified records that claimed they had visited patients and provided them health care services. These home health aides had other jobs, were on vacations overseas, or were in other parts of the state during the times they claimed they were with patients. Home health aides sometimes gave cash kickbacks to patients who were also participating in the scheme. Federal agents introduced a cooperating witness (CW), posing as a prospective home health aide to Krutoyarsky. During one meeting in January 2012, Krutoyarsky and another conspirator meet with the CW to discuss having him join the scheme to defraud Medicaid. In explaining the scheme, Krutoyarsky explained that they would fraudulently bill Medicaid to obtain “free money [from the] Government.”
Krutoyarsky hired individuals with no home health certifications and no status in the country and then sent them to patients’ homes. Krutoyarsky and her conspirators then billed Medicaid, fraudulently claiming that the services had been provided by duly certified home health aides.
Krutoyarsky defrauded Medicaid out of $7 million. She directed certain home health aides to establish checking accounts at a bank near HHCH’s office and then took control of their checkbooks. After Medicaid paid the claims and transferred the funds into HHCH accounts, Krutoyarsky then transferred portions of the money into the aides’ accounts and used the money to purchase, maintain, and pay for real property in New Jersey, New York, Florida; purchase personal property for her own use and benefit; and pay for personal expenses for her own use and benefit and the use and benefit of her family.
Krutoyarsky also bribed an employee of the N.J. Department of Labor (NJDOL), who was working in an undercover capacity with federal agents. In mid-2010, the NJDOL received a complaint that Krutoyarsky was not paying overtime wages to her employees and commenced an investigation. The department demanded Krutoyarsky produce certain HHCH records. Realizing that providing these records would reveal the Medicaid fraud scheme, Krutoyarsky paid approximately $10,000 in a cash bribe to the employee for the purpose of obstructing and unlawfully influencing the NJDOL investigation. The employee, however, was wearing a recording device and recorded Krutoyarsky making the bribe payment on video.
In May 2011, Krutoyarsky paid a second cash bribe of approximately $15,000 to the employee for the purpose of obstructing and unlawfully influencing a second NJDOL investigation related to one of Krutoyarsky’s conspirator’s companies. This bribe payment was also captured on video.
Between 2007 and 2011, Krutoyarsky cheated the IRS out of $907,150 in taxes due and owing to the United States. She sent home health aides to the homes of patients who were not eligible for Medicaid. These patients wrote checks payable to HHCH. A conspirator cashed these checks at check-cashing businesses in New Jersey and equally divided the cash with Krutoyarsky. Krutoyarsky also issued HHCH checks to “no show” employees, who then wrote personal checks back to Krutoyarsky. On her corporate tax returns, she falsely characterized these payments as legitimate business deductions, thus reducing her business’ corporate taxes.
In addition to the prison term, Judge Hayden sentenced Krutoyarsky to three years of supervised release, ordered her to pay $7 million in restitution and entered a forfeiture order for $7 million, including forfeiture of her home in New Jersey and properties in New York City and Florida.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; U.S. Citizenship and Immigration Services; Acting N.J Attorney General Robert Lougy; Acting N.J. State Comptroller Philip James Degnan; Division Director Josh Lichtblau, Office of the State Comptroller, Medicaid Fraud Division; N.J. Division of Consumer Affairs, under the direction of Acting Director Steve C. Lee; the N.J. Board of Nursing; the N.J. Department of Labor, under the direction of Commissioner Harold J. Wirths; U.S. Department of State-Bureau of Diplomatic Security; and the Marlboro Police Department, under the direction of Chief Bruce Hall, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Peter Gaeta and Anthony Moscato of the U.S. Attorney’s Office Criminal Division in Newark.
Today’s sentencing is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov
Defense counsel: Edward V. Sapone Esq., New YorkOwner of Castro Valley Pizzeria Sentenced for Failing to Pay Employment TaxesRead the Press Release
OAKLAND, Calif. – Frank Eugene Gemignani III was sentenced today to 12 months in prison and ordered to pay $255,452 in restitution for failing to pay over employment taxes, announced Acting U.S. Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.
According to the plea agreement, Gemignani, 47, of Concord, operated Pyzano’s Pizzeria in Castro Valley from 1991 through 2012. As the sole proprietor, Gemignani exercised control over Pyzano’s business affairs, including signing and filing Pyzano’s tax returns and paying to the IRS payroll taxes withheld from Pyzano’s employees’ paychecks. From April 1, 2008, through December 31, 2010, Gemignani deducted and collected approximately $184,267 in federal income taxes and Federal Insurance Contributions Act taxes (FICA) from Pyzano’s employees’ wages, but he failed to pass these taxes on to the IRS. Additionally, Gemignani failed to pay at least $63,333 of FICA and Federal Unemployment Tax Act (FUTA) taxes that the business, Pyzano’s, itself owed for 2009 and 2010. Gemignani also claimed a credit for amounts withheld from his Pyzano’s paychecks on his U.S. Individual Income Tax Return, Form 1040, for 2007, even though he knew he had never paid those withholdings over to the IRS. Gemignani was charged by indictment on June 19, 2014, with 11 counts of failure to pay over employment taxes, in violation of Title 26, U.S.C § 7202, and one count of filing a false tax return, in violation of 26 U.S.C. § 7206(1). He pleaded guilty to one count failure to pay over employment taxes.
The sentence was handed down by the Honorable Jeffrey S. White, U.S. District Judge, in Oakland. In addition to the prison term, Judge White also sentenced Gemignani to a one year period of supervised release. Gemignani has been ordered to begin serving his sentence no later than June 6, 2016.
Assistant US Attorney Michael G. Pitman is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Overland Park Business Owner Pleads Guilty to Federal Tax ChargeRead the Press Release
KANSAS CITY, KAN. - An Overland Park business owner has pleaded guilty to a federal tax charge. She agreed to pay $28,037 in restitution.
Becky L. Harper, 48, Overland Park, Kan., who owned and operated the Double Take Salon and Spa in Overland Park, pleaded guilty Monday to one count of making a false statement to the Internal Revenue Service. The company was an S Corporation and she was the sole shareholder. In her plea, Harper admitted her business had gross receipts in 2007 of approximately $973,219, including more than $24,000 in cash. She did not deposit the cash receipts into the bank account for the business. Instead she spent a portion of the cash for business expenses and the remainder for personal expenses. She did not report any wages or salary in 2007.
Sentencing is set for June 13. Both parties have agreed to recommend she serve a year on federal probation and pay restitution. The Internal Revenue Service and Assistant U.S. Attorney Chris Oakley worked on the case.
Orleans County Man Pleads Guilty to Distributing MethyloneRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Allen M. Young, 39, of Barker, NY, pleaded guilty to possession with intent to distribute methylone, before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 30 years in prison and a $2,000,000 fine.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that between October 21, 2011, and December 13, 2012, the defendant conspired with Peter Viera to obtain methylone from China, which Young then distributed. On December 13, 2012, while members of the Orleans County Major Felony Crime Task Force were attempting to execute a search warrant on Young and his car, he fled at a high rate of speed before crashing the car in Ridgeway, NY. Young fled the scene on foot. Nine rounds of .50 caliber ammunition were found in the car. As he fled, the defendant discarded a backpack near the scene of the crash which contained 1.8 pounds of methylone and just over one pound of marijuana.
Young was subsequently arrested in Erie, Pennsylvania on February 14, 2013, and has been in custody ever since. On April 5, 2013, officers executed a search warrant at his residence and seized seven firearms belonging to the defendant.
Peter Viera has also been convicted and will be sentenced on May 5, 2016.
The plea is the result of an investigation on the part of the Orleans County Major Felony Crime Task Force, under the direction of District Attorney Joseph V. Cardone and Sheriff Randall Bower, and the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division.Sentencing is scheduled for June 17, 2016, at 10:30 a.m. before Chief Judge Geraci.
Omaha Man Convicted of Multiple RobberiesRead the Press Release
United States Attorney Deborah R. Gilg announced that Emmanuel Chaplain, age 26, of Omaha, Nebraska, was convicted after a jury trial. The jury found Chaplain guilty of seven counts of interference with commerce by means of robbery, three counts of using or possessing a firearm in furtherance of three of the robberies and felon in possession of a firearm. The Honorable Chief District Judge Laurie Smith Camp presided over the trial that began March 14 in Federal District Court. Sentencing has been set for June 20, 2016. Mr. Chaplain faces 20 years of imprisonment on each robbery, at least five years consecutive to the first robbery in which he used a firearm, and 25 years consecutive on each of the other two charges of possessing and using a firearm in furtherance of the particular robberies for which he used a firearm. He faces 10 years imprisonment for the felon in possession of a firearm charge.
On June 19, 2014, Chaplain and Shane Seizys robbed the Jiffy Lube located at 5819 Maple Street. Later that day they robbed a second Jiffy Lube at 1221 South 120th Street. On June 23, 2014, they robbed the Subway at 5005 Center Street and Chaplain was found guilty of possessing and using a firearm during that robbery. When they left Subway, they went to O’Reilly Auto Parts at 3620 North 72nd Street and robbed it. Within an hour of those two robberies they went to the Kum & Go at 1010 South 154th Street and robbed it. The jury found that Chaplain possessed and used a firearm during the Kum & Go robbery. On July 16, 2014, Chaplain and Seizys robbed the Game Stop at 9959 Redick Circle using a firearm and about 15 minutes later, robbed the KFC located at 7601 North 30th Street.
A bandana found in a car Chaplain was riding in on June 23, 2014, following the Kum & Go robbery, was tested for DNA. The probability that the bandana did not belong to Chaplain was one in 20 sextillion.
After the Game Stop and KFC robberies, three people matching the description of the robbers were seen changing clothes at a vehicle approximately one block away. Omaha Police Officers quickly responded to the area. Seizys and Dilang Dat were immediately arrested. Chaplain fled from police but was caught a short time later. The vehicle they ran from belonged to Chaplain’s brother. In addition to finding clothes in the car that matched those worn in the robberies, there were 5 video game boxes from Game Stop that had Chaplain’s fingerprints on them.
Seizys and Dat previously pleaded guilty and their sentencing hearings have been set for June 20, 2016.
The case was investigated by the Omaha Police Department and the Federal Bureau of Investigation.