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Tuesday 15 March 2016
Troy Man Pleads Guilty to Bank RobberiesRead the Press Release
ALBANY, NEW YORK – Michael C. Matzen, age 35, of Troy, New York, pled guilty yesterday to committing two bank robberies over the course of two days in East Greenbush and Latham.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Federal Bureau of Investigation, Albany Division.
On March 19, 2015, Matzen entered a TD Bank branch in East Greenbush with his face partially covered. He presented a teller with a note demanding money and stating he had a gun. The defendant took $500 and then fled the bank.
The following day, Matzen walked into a Trustco Bank branch in Latham with his face partially covered. Again he presented a teller with a note demanding money and stating he had a gun. The defendant took $5,750 and then fled the bank.
Matzen faces up to 20 years in prison, and a term of post-imprisonment supervised release of up to 3 years, when he is sentenced on July 26, 2016 by United States District Judge Gary L. Sharpe. Matzen also faces a fine of up to $250,000, and may be ordered to forfeit the money he took during the robberies, or pay restitution to his victims. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the Federal Bureau of Investigation in coordination with the Colonie Police Department and East Greenbush Police Department, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.Statement from Head of the Civil Rights Division Vanita Gupta Regarding Ferguson, Missouri, City Council Vote to Approve Consent DecreeRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, released the following statement regarding the Ferguson, Missouri, City Council vote to approve the proposed consent decree with the Department of Justice:
“Tonight, the city of Ferguson, Missouri, took an important step towards guaranteeing all of its citizens the protections of our Constitution. We are pleased that they have approved the consent decree, a document designed to provide the framework needed to institute constitutional policing in Ferguson, and look forward to filing it in court in the coming days and beginning to work with them towards implementation.”
Spring Hill Man Pleads Guilty to Embezzlement SchemeRead the Press Release
Robert Majors, 58, of Spring Hill, Tenn., pleaded guilty on March 10, 2016, to two counts of wire fraud in connection with a scheme to embezzle more than $600,000 from his former employer, announced David Rivera, United States Attorney for the Middle District of Tennessee.
In a plea hearing before U.S. District Court Judge Aleta Trauger, Majors admitted that, while employed for more than seven years as Controller for Irving Materials, Inc. (“IMI”), he fraudulently embezzled more than $600,000 from IMI. Majors stated that he used electronic wire transfers from an IMI bank account into his personal bank account to embezzle the funds. Majors admitted that he concealed his fraud by recording the transfers as company purchases of fixed assets, such as concrete, in the company’s journal entries. Majors admitted to using the embezzled funds for a variety of personal reasons, including paying his mortgage and other loans, credit card bills, to make home repairs, and to pay for a cruise to Italy.
Majors faces up to 20 years in prison on each wire fraud count, a criminal fine of up to $250,000 for each count, and forfeiture of any criminal proceeds. He will also be ordered to pay restitution in the amount of $642,500. Majors will be sentenced by Judge Trauger on June 15, 2016. His sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
The case was investigated by the Federal Bureau of Investigation. The United States is represented by Assistant U.S. Attorney Thomas J. Jaworski.
Southern Tennessee Medical Center, LLC to Pay $2.48 Million to Settle False Claims Act and Overpayment AllegationsRead the Press Release
Southern Tennessee Medical Center, (STMC) located in Winchester, Tenn., has agreed to pay the United States $2,481,856.50 to settle False Claims Act and overpayment allegations, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee. In December 2015 STMC submitted a voluntary self-disclosure to the U.S. Attorney’s Office and to the Office of Inspector General for the Department of Health and Human Services. An investigation by the company’s compliance program into STMC’s billing for in-patient geriatric psychiatric services prompted the self-disclosure.
Based upon an extensive investigation conducted by STMC, the United States alleged that STMC submitted certain claims and received payment for: (1) medically unnecessary days of in-patient geriatric psychiatric services and (2) in-patient geriatric psychiatric services for which a Physician Certification or Recertification was not obtained. The time period covered by the settlement agreement spans January 1, 2009 through December 31, 2014.
“When medical providers self-disclose potential violations directly to the U.S. Attorney’s Office they avoid the costs associated with protracted investigations and minimize the risks of costly fines and exclusion under the False Claims Act,” said Acting U.S. Attorney Jack Smith, for the administration of this settlement. “When potential violations were discovered by this provider’s compliance program, they responded appropriately, avoided harsher penalties and resolved the issue quickly.”
Under the settlement agreement, STMC will pay $1,628,098.50 to resolve the United States’ allegations that it submitted false claims to Medicare primarily during the period from January 2009 to December 2014 for medically unnecessary in-patient geriatric psychiatric services. STMC will also pay $853,758.00 to resolve overpayment allegations relating to the billing of in-patient geriatric psychiatric services for which a Physician Certification or Recertification was not obtained.
"We welcome self-disclosures from the health care community," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. "Working together we can help safeguard taxpayer dollars and strengthen the financial position of the Medicare Trust Fund."
The United States encourages all healthcare providers to self-disclose any known violations that have resulted in the submission of improper claims to federal healthcare programs. This case was investigated by the United States’ Attorney’s Office for the Middle District of Tennessee and the U.S. Department of Health & Human Services Office of Inspector General. Assistant U.S. Attorney Jason Ehrlinspiel represented the United States.
Silver Spring Felon Admits Distributing Acetyl Fentanyl Resulting in Death and Illegal Possession of a FirearmRead the Press Release
Greenbelt, Maryland –Jeffrey Sean Nazari, age 44, of Silver Spring, Maryland, pleaded guilty today to charges of distributing a controlled substance analogue, and being a felon in possession of a firearm. Nazari admitted that death resulted from the use of the acetyl fentanyl analogue that he distributed.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to his plea agreement, Nazari knew and periodically sold heroin and other drugs to the victim for about five years. On January 4, 2015, Nazari and the victim communicated by text message and Nazari agreed to provide the victim with drugs. Nazari went to the victim’s residence and distributed acetyl fentanyl to the victim. The next day, the victim was found dead and the Office of the Chief Medical Examiner determined that the victim’s cause of death was acetyl fentanyl intoxication. The victim died as a result of ingesting the acetyl fentanyl analogue provided by Nazari.
On January 6, 2016, another drug customer went to Nazari’s residence. As the customer left the area, members of law enforcement stopped and searched the customer’s vehicle and recovered residue from the acetyl fentanyl analogue that Nazari had sold to the customer, as well as drug paraphernalia with acetyl fentanyl analogue and heroin residue.
On January 7, 2015, a search warrant was executed at Nazari’s residence. When law enforcement entered, Nazari was in the basement bathroom, attempting to flush drugs down the toilet. Law enforcement seized from the basement bathroom approximately 7.5 grams of acetyl fentanyl analogue, 10 grams of cocaine, and nine grams of testosterone. In addition, members of law enforcement seized two digital scales from the basement bedroom closet, and a loaded .380 caliber handgun from the basement bedroom nightstand. Nazari had previous felony convictions and was prohibited from possessing firearms or ammunition.
Nazari and the government have agreed that if the Court accepts the plea agreement Nazari will be sentenced to between 10 and 15 years in prison. U.S. District Judge Roger W. Titus has scheduled sentencing for July 25, 2016 at 1:00 p.m. Nazari remains detained.
United States Attorney Rod J. Rosenstein praised the DEA, Montgomery County Police Department, and the Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao and Nicolas A. Mitchell, who are prosecuting the case.
Serial Pharmacy Robber Sentenced to 32 Months in PrisonRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Bryan McMahon, 31, of Burlington, was sentenced yesterday for Interference with Commerce by Robbery. Chief District Judge Christina Reiss sentenced McMahon to 32 months in prison, to be followed by three years of supervised release.
According to Court records, McMahon admitted to having committed three pharmacy robberies in Burlington. First, on December 18, 2014, McMahon robbed the Lakeside Pharmacy on Pearl Street in Burlington, Vermont. For this robbery, McMahon was dressed in ski goggles, a surgical mask, gloves, and a Santa Claus hat when he obtained Oxycontin and Methadone by stating “I’ve got something for you” while gesturing to his waist area.
On April 3, 2015, McMahon again robbed the Lakeside Pharmacy while dressed in aviator-style sunglasses, a surgical mask, and rubber gloves, obtaining Methadone by stating “I’m armed; I’ll shoot you; they won’t give it to me at the hospital.” Shoeprints near the scene of this robbery were later matched to a pair of white sneakers recovered from McMahon’s residence.
Finally, on April 27, 2015, McMahon entered the Rite Aid Pharmacy on North Avenue in Burlington, Vermont, wearing an orange vest, surgical mask, and rubber gloves. McMahon approached the pharmacy counter, demanded Methadone, and stated “quickly, I have something.” A short time after he exited the pharmacy, McMahon was confronted by Burlington Police Officers in Ethan Allen Park. A search of McMahon’s jacket revealed the two stolen bottles of Methadone. Burlington Police Officers also recovered an orange vest and surgical mask near the pharmacy. DNA testing by the Vermont Forensic Laboratory located McMahon’s DNA on both items.
United States Attorney Eric S. Miller commended the investigative efforts of the Burlington Police Department, the Vermont Forensic Laboratory, and the Drug Enforcement Administration. The United States was represented by Assistant U.S. Attorney Jonathan Ophardt. McMahon was represented by Assistant Federal Defender Steven L. Barth, Esq.
Scituate Man Admits to Interstate Travel for Illicit Sexual ContactRead the Press Release
PROVIDENCE, R.I. – Randy A. Collins, 44, of Scituate, RI, pleaded guilty in federal court in Providence to interstate travel for illicit sexual conduct, admitting to the court that on September 2, 2015, he left his place of employment in Franklin, Mass., during his workday, to meet with and have sexual contact with a person he believed to be a 14-year-old female. The person he had been communicating with online was actually a law enforcement officer assigned to the Rhode Island Internet Crimes Against Children (ICAC) task force. Collins was arrested by Rhode Island State Police and Homeland Security Investigations when he arrived at a designated location in Cranston, RI, where he thought he was going to meet with the 14-year-old girl.
Collins’ guilty plea is announced by United States Attorney Peter F. Neronha, Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police, and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
Appearing before U.S. District Court Chief Judge William E. Smith on Thursday, Collins admitted to the court that he answered an advertisement posted on Craigslist which he believed had been posted by a 14-year old female seeking to obtain an iPhone6. According to information presented to the court, during the exchange of emails, a Rhode Island State Police Detective posing as the young teenager repeatedly informed Collins that he was communicating with a 14-year-old. Collins acknowledged the information and responded that he was still interested in meeting with her. Collins turned the exchange to a sexual nature and proposed obtaining the iPhone in exchange for sex.
Collins was initially charged on September 4, 2015, by way of a federal criminal complaint and made an initial appearance before U.S. District Court Magistrate Judge Patricia A. Sullivan. Collins was indicted by a federal grand jury on September 30, 2015.
Randy Collins is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on May 26, 2016.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Roofing Contractor Sentenced for Pocketing Employee Payroll Tax WithholdingsRead the Press Release
WILMINGTON, Del. – Robert Smulski, age 58, of Wilmington, Delaware, was sentenced to twelve months and one day of imprisonment and two years of supervised release, and was ordered to pay $484,339.28 in restitution to the Internal Revenue Service for the willful failure to pay over employment taxes. Smulski previously pled guilty to the charges on September 30, 2015. Charles M. Oberly, III, United States Attorney for the District of Delaware, announced the sentence handed down today by the Honorable Gregory M. Sleet, Judge of the United States District Court for the District of Delaware.
Smulski was the owner and President of Smulski Enterprises, Ltd., a roofing company in Wilmington, Delaware. As the owner and President, Smulski was responsible for ensuring that the employees' payroll tax withholdings were paid over to the government. Between 2006 and 2012, Smulski Enterprises withheld payroll taxes from its employees' paychecks. But instead of paying that money over to the IRS, Smulski instead used it to pay himself and his personal creditors.
The unpaid employment taxes from 2006 through 2012 totaled $484,339.28.
This case was investigated by Special Agents of IRS-Criminal Investigation, and was prosecuted by Assistant United States Attorney Jennifer Hall.
Rochester Man Sentenced for Enticement of A 14 Year Old GirlRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that William Martin, Jr., of Rochester, NY, who was convicted of enticement, was sentenced to 10 years in prison and 20 years supervised release by Chief U.S. District Judge Frank P. Geraci.Assistant U.S. Attorney Melissa Marangola, who handled the case, stated that in February 2015, the Rochester Police Department was alerted to text message communications between the defendant and a 14 year old girl as well as the exchange of provocative photographs on Facebook. The minor victim later told police that the two exchanged naked photos and one video.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen, the New York State Police, under the direction of Major Craig Hanesworth, and the Gates Police Department, under the direction of Chief James VanBrederode. The task force includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.Retired High School Teacher Pleads Guilty to Attempting to Engage in Illicit Sex with a MinorRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a retired high school teacher in Sedalia, Mo., pleaded guilty in federal court today to arranging to meet a woman and her 14-year-old daughter (actually an undercover law enforcement officer) for illicit sexual activity.
Paul Robert Cannon, 71, of Sedalia, Mo., pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to attempting to induce a minor to engage in illicit sexual activity.
According to court documents, Cannon posted an advertisement on Craigslist on Jan. 18, 2016, entitled “Grandpa looking for a couple with kids.” The posting read, “Grandpa looking for a couple that would like to include their kids in sexual fun. White man, very discreet, very safe, retired teacher, and well endowed. Age and race are not an issue.”
On Jan. 21, 2016, a detective with the Boone County, Mo., Sheriff’s Department responded to the Craigslist advertisement, portraying himself as a single mother with a 14-year-old daughter. Over the next six days, the detective exchanged numerous e-mails with Cannon. In these exchanges, Cannon described various sex acts he intended to perform with the minor daughter. He also offered to have sex with both the mother and minor daughter together and said he was looking for “a continuing relationship.” The detective also exchanged numerous texts with Cannon in which Cannon described various sex acts he intended to perform with the minor daughter.
The undercover detective arranged to meet Cannon at a Columbia, Mo., restaurant this afternoon. Cannon offered to buy lunch for the mother and daughter before going to their residence for a sexual rendezvous. When Cannon arrived at the restaurant, he was redirected to another nearby restaurant, where he was arrested.
Under federal statutes, Cannon is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the FBI and the Boone County Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Placer County Woman Sentenced to 14 Years in Prison for Multimillion Dollar Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. - United States District Judge John A. Mendez sentenced Vera Kuzmenko, 46, of Loomis, today to 14 years in prison for multiple counts of mail and wire fraud, witness tampering, and money laundering associated with her involvement in a mortgage fraud scheme that cost financial institutions over $16 million, United States Attorney Benjamin B. Wagner announced.
On December 4, 2015, after a 16-day trial, a federal jury returned guilty verdicts for Kuzmenko and Rachel Siders, 40, of Roseville. Siders is scheduled to be sentenced on June 21, 2016.
According to evidence presented at trial, from late 2006 through early 2008, Kuzmenko and Siders engaged in a mortgage fraud scheme involving over 30 properties in the Sacramento area. They were responsible for securing more than $30 million in residential mortgage loans on more than 30 homes purchased through straw buyers. Records introduced at trial showed Vera Kuzmenko received millions of dollars.
Kuzmenko, who had been a licensed real estate agent for part of the scheme, created fraudulent loan applications on behalf of the straw buyers. The loan applications contained materially false information as to the straw buyers’ income, employment, assets, and intent to occupy the residences. The loan paperwork also hid from lenders millions of dollars of payments that went to the defendants. She also served as a straw-buyer herself. With respect to the witness tampering count, the evidence showed that after Kuzmenko learned the FBI was investigating her, she told various witnesses to lie to the FBI and blame a dead woman for the fraud.
U.S. Attorney Wagner stated: “There were many causes for the mortgage crisis that decimated the national economy and hit the Sacramento region so especially hard. One factor that did not help, and that contributed to the explosion of foreclosures in our neighborhoods was the proliferation of mortgage fraud schemes like the one operated by Vera Kuzmenko. My office will continue to seek to hold accountable those who profited from such schemes, and the sentence imposed today is a significant reminder that there is a heavy price to pay for those who seek to profit through fraud.”
“Vera Kuzmenko’s scheme cost financial institutions over $16 million,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Fraud in the mortgage industry has played a major role in almost crippling this nation’s economy. While today’s sentencing cannot reverse the damage caused by these defendants, IRS-CI is committed to investigate individuals who engage in deceptive and fraudulent behavior, fueled by greed.”
“As the mastermind of a scheme to intentionally defraud members of her own community, Vera Kuzmenko, coordinated a network of individuals who perpetrated a multimillion-dollar fraud scheme,” said Assistant Special Agent in Charge Manuel Alvarez of the Federal Bureau of Investigation Sacramento field office. “Her sentence cannot undo the damage done to her community’s trust and financial well-being, but it will ensure justice for victims and serve as a warning to other would-be fraudsters.”
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys Lee S. Bickley and Michael D. Anderson and Special U.S. Attorney David J. Ward are prosecuting the case.
On October 20, 2015, Judge Mendez sentenced co-defendants Peter Kuzmenko, 37, of West Sacramento, to 19 years in prison; Aaron New, 41, of Sacramento, to 11 years and three months in prison; Nadia Kuzmenko, 36, formerly of Loomis, to eight years in prison; and Edward Shevtsov, 52, of North Highlands, to eight years in prison. They were found guilty on February 13, 2015, after a 21-day trial, of multiple counts of mail and wire fraud associated with the mortgage fraud scheme. In addition, Peter Kuzmenko, Edward Shevtsov, and Aaron New were found guilty of money laundering associated with the scheme, and Nadia Kuzmenko was found guilty of witness tampering.
Petersburg Man Sentenced for Armed Robbery and Gun CrimesRead the Press Release
RICHMOND, Va. – Deontae Jamar Hargrave, 23, of Petersburg, was sentenced today to 237 months in prison for two separate offenses, including robbery affecting interstate commerce, and using, possessing, carrying, brandishing and discharging a firearm in furtherance of a crime of violence.
Hargrave was indicted by a federal grand jury on March 4, 2015. According to court documents, on Nov. 3, 2014, Hargrave robbed a 7-Eleven convenience store in Petersburg and brandished a .40 caliber firearm. Hargrave threatened the cashier with the firearm and demanded the funds in the cash register. When they cashier paused, Hargrave raised the firearm next to the cashier and fired a round into a display case behind the clerk. Hargrave obtained approximately $40 and three packs of cigarettes from the robbery. Subsequently, Hargrave sent a threatening letter which was the subject of testimony at the sentencing hearing.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael F. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Office; and John I. Dixon III, Chief of Petersburg Bureau of Police, made the announcement after sentencing by U.S. District Judge Robert E. Payne. Assistant U.S. Attorney S. David Schiller prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-37.
Pennsylvania Man Charged with Hacking Apple and Google E-Mail Accounts Belonging to More Than 100 People, Mostly CelebritiesRead the Press Release
LOS ANGELES – A Pennsylvania man was charged today with felony computer hacking related to a phishing scheme that gave him illegal access to over 100 Apple and Google e-mail accounts, including those belonging to members of the entertainment industry in Los Angeles.
Ryan Collins, 36, of Lancaster, Pennsylvania, has signed a plea agreement and agreed to plead guilty to a felony violation of the Computer Fraud and Abuse Act. In the plea agreement also filed today, Collins agreed to plead guilty to one count of unauthorized access to a protected computer to obtain information.
Although Collins has been charged in Los Angeles, the parties have agreed to transfer the case to Harrisburg in the Middle District of Pennsylvania, near Collins’ home, for the entry of his guilty plea and sentencing. Once he enters the guilty plea, Collins will face a statutory maximum sentence of five years in federal prison. The parties have agreed to recommend a prison term of 18 months, but that recommendation will not be binding on the sentencing judge.
“Today, people store important private information in their online accounts and in their digital devices,” said United States Attorney Eileen M. Decker. “Lawless unauthorized access to such private information is a criminal offense. My Office remains committed to protecting sensitive and personal information from the malicious actions of sophisticated hackers and cyber criminals.”
According to factual basis in the plea agreement, from November 2012 until the beginning of September 2014, Collins engaged in a phishing scheme to obtain usernames and passwords for his victims. He sent e-mails to victims that appeared to be from Apple or Google and asked victims to provider their usernames and passwords. When the victims responded, Collins then had access to the victims’ e-mail accounts. After illegally accessing the e-mail accounts, Collins obtained personal information including nude photographs and videos, according to his plea agreement. In some instances, Collins would use a software program to download the entire contents of the victims’ Apple iCloud backups.
The charge against Collins stems from the investigation into the leaks of photographs of numerous female celebrities in September 2014 known as “Celebgate.” However, investigators have not uncovered any evidence linking Collins to the actual leaks or that Collins shared or uploaded the information he obtained.
Many of Collins’ victims were members of the entertainment industry in Los Angeles. By illegally accessing the e-mail accounts, Collins accessed at least 50 iCloud accounts and 72 Gmail accounts, most of which belonged to female celebrities.
“By illegally accessing intimate details of his victims' personal lives, Mr. Collins violated their privacy and left many to contend with lasting emotional distress, embarrassment and feelings of insecurity,” said David Bowdich, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “We continue to see both celebrities and victims from all walks of life suffer the consequences of this crime and strongly encourage users of Internet-connected devices to strengthen passwords and to be skeptical when replying to emails asking for personal information.”
The case against Collins is the product of an ongoing investigation by the Federal Bureau of Investigation.
Owner of Costa Rican Call Center Sentenced to Nine Years in Prison for Defrauding Elderly through Sweepstakes ScamRead the Press Release
A dual U.S.-Costa Rican citizen was sentenced yesterday to 108 months in prison for his role in a $1.88 million sweepstakes fraud scheme that victimized hundreds of elderly U.S. residents, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina.
Geoffrey Alexander Ramer, 36, formerly of Falls Church, Virginia, was sentenced today by U.S. District Judge Max O. Cogburn Jr. of the Western District of North Carolina. Ramer was also ordered to pay $2,871,430.35 in restitution and to forfeit $1,886,018.
On Sept. 15, 2014, Ramer pleaded guilty to one count of conspiracy to commit wire fraud, eight counts of wire fraud, one count of conspiracy to commit money laundering and four counts of international money laundering in connection with the telemarketing fraud scheme.
According to the plea documents, from 2008 through December 2013, Ramer owned and operated call centers located in Costa Rica. Ramer admitted that he and his co-conspirators called U.S. residents, many of whom were elderly, and falsely informed the victims that they had won a substantial cash prize in a sweepstakes, and that, in order to receive their prize money, the victims were to send money to Costa Rica for a purported refundable insurance fee. After receiving the victims’ money, the co-conspirators would contact the victims to falsely inform them that the prize amount had increased and the victims needed to send additional money for more purported fees, Ramer admitted. According to the plea, Ramer and his co-conspirators would continue these attempts to collect additional money until the victims went broke or discovered the fraud. Ramer admitted that he and his co-conspirators utilized VoIP phones that displayed a Washington, D.C., area code in order to conceal that they were calling from Costa Rica, and sometimes falsely claim to be from a U.S. federal agency to give victims a false sense of security. The co-conspirators kept the victims’ funds, never provided any winnings to the victims and used the funds to continue the call centers’ operation and for the co-conspirators’ personal benefit, Ramer admitted.
Plea documents state that, along with his co-conspirators, Ramer was responsible for causing more than $1.88 million in losses to hundreds of elderly Americans.
The U.S. Postal Inspection Service, the Internal Revenue Service-Criminal Investigation, the FBI, the Federal Trade Commission and the Department of Homeland Security are investigating the case. Senior Litigation Counsel Patrick M. Donley and Trial Attorney William H. Bowne of the Criminal Division’s Fraud Section are prosecuting the case.
North Miami Beach Resident Sentenced to 7 Years in Prison for Stolen Identity Tax and Unemployment Insurance Claims Fraud SchemesRead the Press Release
A North Miami Beach resident was sentenced to 84 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $585,070, for his participation in stolen identity tax and unemployment insurance claims fraud schemes.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), William Hernandez, Chief, North Miami Beach Police Department (NMBPD), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations Miami Office (DOL-OIG), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, and Carlos Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement.
Elton Lloyd Bandoo, a/k/a “Ebdaiceman”, previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, on February 6, 2015, law enforcement executed a federal search warrant at Bandoo's residence. While executing the search warrant, law enforcement seized several computers and external media devices that contained the personal identification information (PII) of approximately 27,000 victims. In addition, law enforcement discovered papers, including billing forms from a medical facility, handwritten lists of names, dates of birth, and Social Security numbers, and printed lists of names, dates of birth, and Social Security numbers, of approximately 1,400 individuals. Bandoo's fingerprints were discovered on the papers containing the victims' PII.
The IRS confirmed that the PII on which Bandoo's fingerprints were discovered was used to file fraudulent tax returns, many in the names of deceased individuals, seeking $1,073,112 in fraudulent refunds. Bandoo’s IP address was used to request $11,804 in unauthorized payments on nine fraudulent unemployment insurance claims.
In total, the amount of intended loss resulting from Bandoo’s fraudulent schemes is $14,826,443.
Mr. Ferrer commended the investigative efforts of IRS-CI, NMBPD, DOL-OIG, ICE-HSI, and ATF. This case was prosecuted by Assistant U.S. Attorney Jamie R. Galvin.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Methamphetamine Trafficker Sentenced to 15 Years in PrisonRead the Press Release
GREENEVILLE, Tenn. -- On March 14, 2016, Tito Charles, 30, of Greeneville, Tenn., was sentenced to serve 15 years in federal prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon his release from prison, Charles will be supervised for 10 years by U.S. Probation.
Charles pleaded guilty to a federal indictment charging him with conspiring to distribute methamphetamine. He was obtaining high purity methamphetamine from sources of supply near Atlanta, Ga., and Chattanooga, Tenn., and distributing the drug in east Tennessee. In February 2015, Greene County deputies arrested Charles in a parking lot in Greeneville, Tenn., with approximately one pound of methamphetamine and $31,391 in cash. He was released on bond later that same day. In March 2015, a multi-agency team investigating the drug trafficking network that Charles was a part of and arrested him again as he was transporting an additional pound of methamphetamine into Greene County via Highway 172.
This investigation was a collaborative effort of several law enforcement agencies including the Greene County Sheriff’s Office, Hawkins County Sheriff’s Office, Third Judicial Drug Task Force, Greeneville Police Department, Tennessee Bureau of Investigation, Tennessee Highway Patrol, Homeland Security Investigations, and Drug Enforcement Administration. The Third Judicial District Attorney’s Office also provided assistance in the prosecution of the case. Assistant U.S. Attorney J. Christian Lampe represented the United States.
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Man Who Murdered Wife Sentenced Federally for Unlawfully Possessing Multiple FirearmsRead the Press Release
Jackson, TN – A Jackson man who fatally shot his wife has been sentenced federally for unlawful possession of multiple firearms. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, Michael Allen Smith Sr., 44, of Jackson, Tennessee, unlawfully possessed multiple firearms, including a Ruger .40 caliber pistol, which he used to fatally shoot his wife.
On August 9, 2013, Jackson Police Department (JPD) officers were dispatched on a shots-fired call in the Hollyridge Cove area of Jackson. Officers arrived on the scene and made contact with two children. One of the children reportedly advised that their father, Smith, had killed their mother, Christy Smith. Upon entering the residence, officers discovered the body of Christy Smith lying unresponsive in the hallway with a large pool of blood coming from her head. The Assistant County Coroner arrived on the scene and pronounced the victim dead. A single gunshot wound to the face in her nose was determined to be the cause of death. The victim also had wounds to the forehead consistent with blunt force trauma.
Subsequent to the murder, JPD investigators spoke with one of the Smiths’ children, who advised that their parents had been arguing for the past couple of days. The child said they overheard Smith threaten their mother earlier that day, stating that Christy Smith was not going to leave him. The defendant eventually left the residence to go pick up his other child. Once Smith returned, he attempted to get Christy Smith to leave with him, but she refused. Smith then instructed the children to leave the residence and deliver peaches to their neighbors. Shortly after leaving, one of the children received a phone call from a relative instructing them to check on their mother. When they
returned, Smith was no longer there, but their mother, Christy Smith, was lying on the floor unresponsive and in a pool of blood.
Law enforcement was able to apprehend Smith in the early morning hours of August 10, 2013. A search warrant was executed on the Smiths’ residence, which yielded multiple firearms that belonged to the defendant.
In August 2015, Smith pled guilty to multiple counts of felony firearm possession.
On Monday, March 14, 2016, Smith was sentenced by Chief U.S. District Judge J. Daniel Breen to 120 months, the statutory maximum allowed under federal law, for unlawfully possessing multiple firearms.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Jackson Police Department.
Assistant U.S. Attorney Matthew Wilson prosecuted this case on the government’s behalf.
Louisville Attorney Guilty of Wire Fraud and Money LaunderingRead the Press Release
Ordered to pay $1,602,327.14 to multiple victims including $268,459.06 to St. Mary’s Church and $245,993.67 to WHAS Crusade for Children
LOUISVILLE, Ky. – A Louisville attorney pleaded guilty in United States District Court yesterday, before Magistrate Judge Dave Whalin, to criminal counts of wire fraud and money laundering, stemming from his activities as the executor of seven estates in Louisville, announced United States Attorney John E. Kuhn, Jr.
“Attorneys are professionally and ethically bound to serve their clients’ best interests,” stated U.S. Attorney John Kuhn. “We simply cannot tolerate attorneys or any other fiduciaries using their positions of trust to steal from those they are obligated to protect. This prosecution serves the principle of justice and vindicates the breach of a trust that is an absolutely essential component of a multitude of professional relationships.”
David Cary Ford, 53, admitted that from November 6, 2008, through February 11, 2015, while a practicing attorney, he served as executor of the estates of Saundra A. Benzinger, Kenneth L. Keith, William T. Lawson, Mary Helen Pfeffer, Elinor E. Starr, Mary Augustine Starr, and Richard Steinmetz. Ford took funds from those estates totaling approximately $1,666,671.18, and used those estates’ funds for personal expenses and enjoyment, including significant gambling activity, instead of using the funds as designated by the decedents of those estates, or for the benefit of the beneficiaries of those estates, in the following amounts:
$ 737,981.00 Estate of Saundra Benzinger
$ 492,862.18 Estate of Elinor Starr
$ 290,315.00 Estate of Mary Starr
$ 62,343.00 Estate of Kenneth Keith
$ 26,300.00 Estate of Richard Steinmetz
$ 17,025.00 Estate of Mary Helen Pfeffer
$ 8,200.00 Estate of William Lawson
Specifically, as executor of these estates, Ford was authorized at various banks to pay estate expenses. However, Ford also used these estate accounts, without authorization, to withdraw cash and to pay his personal expenses with estate client funds. In his capacity as executor, Ford processed these withdrawals of estate funds and mischaracterized them as estate expenses.
Further, Ford admitted that from July 21, 2014, to July 28, 2014, he laundered fraud proceeds by using funds from one estate to conceal the depletion of the funds from another estate. Specifically, to promote his unlawful activity and to conceal or disguise the source and nature of proceeds from that unlawful activity, on July 24, 2014, after depleting the funds of the Estate of Kenneth L. Keith, Ford took $35,960.18 from the estate of Elinor E. Starr, in a cashier’s check, deposited those funds into his escrow account, and then on July 28, 2014, used $25,000 of those funds to pay a beneficiary of the Estate of Kenneth L. Keith.
As part of the plea agreement, Ford agreed to make restitution to the beneficiaries of the estates ($1,554,555.36 to various charities, nonprofits and religious organizations, and $47,771.78 to individuals) in the following amounts:
Victim Amount
St. Mary’s Church
$ 268,459.06
Passionist Community
$ 245,993.67
Passionist Nuns
$ 245,993.67
WHAS Crusade For Children
$ 245,993.67
National Shrine of St. Elizabeth Ann Seton
$ 134,229.53
Franciscan Sisters of Allegany, Inc.
$ 134,229.53
Archdiocese of Louisville
$ 89,486.35
St. Francis of Assisi Church
$ 44,743.18
Catholic Foreign Mission Society of America, Inc.
$ 44,743.18
Sisters of Charity of St. Joseph’s
$ 44,743.18
Nazareth Literary and Benevolent Institution, Inc.
$ 44,743.18
L.S. (an individual)
$ 24,300.50
C.P. (an individual)
$ 17,025.00
Little Sisters of the Poor
$ 5,598.59
L.A. (an individual)
$ 3,099.48
C.B. (an individual)
$ 3,099.48
Holy Family Catholic Church
$ 2,799.30
Our Mother of Sorrows Catholic Church
$ 2,799.30
R.S. (an individual)
$ 82.44
V. S. (an individual)
$ 82.44
P.S. (an individual)
$ 82.44
Total
$1,602,327.14
Ford faces a maximum penalty of forty years’ imprisonment, $750,000 in fines, and supervised release for a period of three years. Sentencing is scheduled on June 6, 2016, in Louisville.
The case is being prosecuted by Assistant United States Attorney Jason Snyder, and it results from an investigation conducted by the Internal Revenue Service – Criminal Investigation Division and the Federal Bureau of Investigation.
Lincoln Man Sentenced for Methamphetamine Conspiracy and Violation of Supervised ReleaseRead the Press Release
United States Attorney Deborah R. Gilg announced that on March 15, 2016, David Lane Erickson, 29, of Lincoln, was sentenced to a total of 123 months in prison for conspiracy to distribute 50 grams or more of a mixture or substance containing methamphetamine; commission of a felony while on pretrial release; and violation of his supervised release terms. Erickson was sentenced to five years (60 months) on the drug charge and a consecutive three months for commission of that offense while on supervised release. In addition, in a separate case, he was sentenced to an additional five years (60 months) consecutive to the other sentences for violating the terms of his supervised release imposed as part of a 2007 federal sentence for conspiracy to distribute methamphetamine and use of a firearm during a drug-trafficking offense. Erickson will serve five years on supervised release following the new prison term. He was also ordered to forfeit $10,500.00 in cash.
Information provided to law enforcement indicated Erickson was involved in the distribution of at least 50 grams, (approximately 1 ¾ ounces), of methamphetamine in the Lincoln area between June 1, 2015, and October 21, 2015. On October 1, 2015, Lincoln Police officers attempted to stop a vehicle driven by Erickson. After a vehicle pursuit, Erickson abandoned the car which was later searched, and officers found four bags containing approximately 43 grams of methamphetamine and $9,000.00 in cash. On October 13, 2015, he was arrested in Omaha by the Metro Fugitive Task Force, and an additional $1,500.00 in cash was found in his possession.
This case was investigated by the Lincoln/Lancaster County Drug Task Force and the Metro Fugitive Task Force.
Lawyer with Former Jersey City, New Jersey, Practice Admits Structuring Cash DepositsRead the Press Release
NEWARK, N.J. – A lawyer who previously practiced in Jersey City, New Jersey, today admitted structuring approximately $200,000 in cash to avoid reporting requirements, U.S. Attorney Paul J. Fishman announced.
Magdy Fouad Anise, a/k/a “Michael Anise,” 52, of Aberdeen, New Jersey, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to Count Two of an indictment charging him with structuring.
According to the documents filed in this case and statements made in court:
Anise was an attorney at Anise & Anise, Attorneys at Law, located in Jersey City. From 2009 through 2011, Anise received cash kickbacks from doctors and others in exchange for personal-injury client referrals. In lieu of cash, Anise asked a doctor who gave him kickbacks to pay him with gold bars, give money to Anise’s church and pay Anise’s mortgage.
Anise admitted that from 2009 through 2012, he made cash deposits into five different bank accounts that he controlled in amounts less than $10,000, the amount that would have triggered the filing of a currency transaction report (CTR) with the IRS.
CTRs require disclosure of the identity of the individual who conducted the transaction and the individual or organization for whom the transaction was completed. Many individuals involved in illegal activities are aware of these reporting requirements and take active steps to cause financial institutions not to file CTRs in order to avoid detection of the movement of large amounts of U.S. currency. These steps are referred to as “structuring” and involve making multiple cash deposits or withdrawals in amounts of $10,000 or less on the same day or consecutive days in order to avoid CTR filings.
The charge of structuring cash transactions to avoid reporting requirements carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for June 22, 2016.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense Counsel: Roy Greenman Esq., Union
Lanham Man Convicted for Bank Fraud ConspiracyRead the Press Release
Baltimore, Maryland – A federal jury today convicted Junaidu Saljan Savage, a/k/a James Kamara, age 29, of Lanham, Maryland, for conspiring to commit bank fraud and for aggravated identity theft arising from a scheme to defraud a bank by using account holders’ personal information to take over their accounts.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge James Murray of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department..
According to testimony at his six day trial, from January 1, 2012 through April 2012, Savage conspired with Jayad Zainab Ester Conteh, Paul Anthony Williams and others to defraud a bank. Conteh, a bank teller, looked up bank account holder information on the computer system without authorization and disclosed the account holders’ personal identifying information to Savage and other co-conspirators. Using that information, Savage would call the bank pretending to be the account holder, change certain account information and order checks on the compromised account to be delivered by overnight mail. Savage and other co-conspirators would obtain those checks, including by intercepting the checks upon delivery at the actual account holders’ addresses. Wilson cashed the checks at bank branches in Maryland.
Trial evidence showed that as a result of the conspiracy at least seven bank account holders’ accounts were improperly accessed, with intended losses of more than $120,000.
Jayad Zainab Ester Conteh, age 24, of Glenarden, Maryland, was convicted after trial and sentenced to 64 months in prison for conspiring to commit bank fraud, bank fraud, aggravated identity theft and unauthorized access to a computer to obtain banking information. Judge Russell also entered an order that Conteh pay $36,400 in restitution to the victim bank and forfeit $36,400.
According to court documents and trial testimony, in July 2014, after Conteh had reported to prison to begin serving her sentence, Savage went to visit her relatives. An audio and video recording of the meeting reveal that Savage told Conteh’s relatives that he was involved in her criminal conduct and would pay the restitution ordered by the Court. In late August 2014, Savage’s girlfriend provided $6,000 in cash to a relative of Conteh as partial payment of Conteh’s restitution.
Co-conspirator Paul Anthony Wilson, a/k/a Anthony Johnson, age 53, of Washington, D.C., was arrested while attempting to cash a check on the account of one of the victims. Wilson pleaded guilty to his role in the conspiracy and was sentenced to 39 months in prison.
Savage faces a maximum sentence of 30 years in prison and a fine of $1 million for the bank fraud conspiracy, and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge George L. Russell III scheduled Savage’s sentencing for June 24, 2016, at 9:30 a.m.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service, Secret Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Thomas P. Windom and Ray D. McKenzie, who are prosecuting the case.
Keshena Teacher Indicted for Theft from Menominee Indian High SchoolRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on March 15, 2016, a federal grand jury returned a single-count indictment against Leona M. Dixon (age: 32) of Keshena, Wisconsin, charging her with one count of theft of property in violation of Title 18 U.S.C. Sections 661 and 1153. If convicted, the defendant faces a sentence of up to 5 years imprisonment, a $250,000 fine, and up to 3 years of supervised release.
According to the indictment, Dixon intentionally stole 23 iPad tablets and 3 laptops from Menominee Indian High School. These items were valued at approximately $8,600.
The case was investigated by the Menominee Tribal Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Investigation leads to federal narcotics and firearms indictmentRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced the indictment of 11 Lafayette-area residents on charges for a variety of narcotics and firearms offenses.
Those named in the 23-count indictment unsealed February 22, 2016 are:
Carroll Griffin, 32, of Lafayette, is charged with one count of conspiracy to distribute cocaine base, one count of conspiracy to distribute methamphetamine, five counts of unlawful use of a communication facility, one count of maintaining a premises for the purpose of distribution of controlled substances, and one count of possession of a firearm in the furtherance of a drug trafficking crime.
Joshua Griffin, 33, of Lafayette, is charged with one count of conspiracy to distribute cocaine base, three counts of distribution of cocaine base, four counts of unlawful use of a communication facility, and one count of maintaining a premises for the purpose of distribution of controlled substances.
Alvontre Griffin, 19, of Lafayette, is charged with one count of conspiracy to distribute cocaine base, four counts of unlawful use of a communication facility, one count of possession of a stolen firearm, and one count of maintaining a premises for the purpose of distribution of controlled substances.
Jeremy Tyler, 29, of Rayne, La., is charged with one count of conspiracy to distribute cocaine base, one count of possession with intent to distribute cocaine base, and one count of unlawful use of a communication facility.
Chester Tyler, 20, of Lafayette, is charged with one count of conspiracy to distribute cocaine base, one count of possession with intent to distribute cocaine base, and one count of unlawful use of a communication facility.
Josh Tyler, 33, of Scott, La., is charged with one count of conspiracy to distribute cocaine base, one count of conspiracy to distribute methamphetamine, and one count of unlawful use of a communication facility.
Nathan George, 34, of Lafayette, is charged with one count of conspiracy to distribute cocaine base, one count of conspiracy to distribute methamphetamine, and one count of unlawful use of a communication facility.
Ronnie Thomas, 35, of Lafayette, is charged with one count of conspiracy to distribute cocaine base, one count of unlawful use of a communication facility, and one count of distribution of cocaine base.
Ashton Ventroy, 26, of Lafayette, is charged with one count of conspiracy to distribute cocaine base, one count of conspiracy to distribute methamphetamine, and one count of unlawful use of a communication facility.
London West, 25, of Duson, La., is charged with one count of conspiracy to distribute cocaine base, one count of unlawful use of a communication facility, one count of possession of a firearm by a convicted felon, and one count of possession of a stolen firearm.
Johnny Huntley, 21, of Duson, is charge with one count of possession of a firearm by a convicted felon and one count of possession of a stolen firearm.
The defendants face various possible penalties depending on the drug quantity involved, their role in the charged offense, and their criminal histories.
The charges resulted from a long-term investigation coordinated by the FBI’s Lafayette Resident Agency Safe Streets Gang Task Force. The FBI, ATF, Lafayette Metro Narcotics Unit, Lafayette Police Department, Lafayette Sheriff’s Office, St. Landry Sheriff’s Office, St. Mary Sheriff’s Office, Iberia Parish Sheriff’s Office, and the Louisiana National Guard Counter Drug Unit participated in the investigation. Assistant U.S. Attorneys Robert C. Abendroth and Kelly Uebinger are prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Independence Man Sentenced to 27 Years for Drug-Trafficking Conspiracy Resulting in Two DeathsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was sentenced in federal court today for his role in a drug-trafficking conspiracy that resulted in the shooting deaths of three persons during a home invasion in Independence and the shooting of a 12-year-old boy in the home.
Kevin M. Finley, also known as “Tubbs,” 36, of Independence, was sentenced by U.S. District Judge Beth Phillips to 27 years in federal prison without parole.
On Sept. 10, 2015, Finley pleaded guilty to participating in a conspiracy to distribute methamphetamine and to two counts of using a firearm during and in relation to the drug-trafficking conspiracy, causing the deaths of two persons.
Finley admitted that he and several co-defendants planned to steal as much as three pounds of methamphetamine by robbing the residence of Martin “Tomas” Dominguez-Gregorio in Independence. During the robbery attempt, in the early morning hours of Nov. 16, 2012, Martin “Tomas” Dominguez-Gregorio, his girlfriend, Maria Guadalupe Hernandez-Corona, and her son, Antonio Hernandez, were killed; Miguel Hernandez, Maria Hernandez’s then-12–year-old son, was wounded.
Finley met with co-defendants Raul Soto, also known as “Choch,” 25, of Kansas City, Kan., Carlos Zambrano, Jr., also known as “Los,” 30, of Kansas City, Mo., and Antonio Cervantes, III, also known as “Taz,” 34, of Independence, to plan the robbery on Nov. 15, 2012. Finley and Soto were both in possession of firearms.
Finley and Soto entered a shed behind the house. Finley admitted that they bound and beat two occupants inside the shed. One of those occupants was Antonio Hernandez. Finley and Soto then dragged Antonio Hernandez into the main house. Finley and Soto demanded drugs and money from the occupants, but the victims denied having any drugs or money. Finley and Soto both fired their weapons inside the house. Finley was responsible for the deaths of Dominguez-Gregorio and Hernandez-Corona, who were both killed by the gunfire. Soto was responsible for the death of Antonio Hernandez, who was killed by the gunfire. Miguel Hernandez was wounded as a result of the gunfire.
Following the robbery, a motorcycle and a TV were removed from the residence and placed into the back of Phillips’ truck.
Soto was sentenced to 27 years in federal prison without parole. Cervantes was sentenced to 10 years in federal prison without parole. Zambrano was sentenced to five years in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorney Patrick C. Edwards. It was investigated by the Independence, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Kansas City, Mo., Police Department.
Guyanese National Convicted of Mortgage FraudRead the Press Release
A Guyanese national was convicted following a federal jury trial on charges stemming from his leadership and participation in an extensive mortgage fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Ravindranauth “Ravi” Roopnarine, 56, of Guyana, was charged by indictment with conspiracy to commit wire fraud and mail fraud, in violation of Title 18, United States Code, Section 1349; mail fraud, in violation of Title 18, United States Code, Section 1341; and wire fraud in violation of Title 18, United States Code, Section 1343. On Friday, March 11, 2016, a twelve-person jury convicted Roopnarine on all three counts, after a four day trial presided over by United States District Judge Jose E. Martinez.
According to publicly filed documents and statements made in court, on December 9, 2010, a Fort Pierce federal grand jury indicted Roopnarine, Gergawattie “Kamla” Seecharan, Bhaardwaj “Deo” Seecharan and Linda Rovetto for their participation in a mortgage fraud scheme. Kamla Seecharan, Deo Seecharan and Rovetto previously pled guilty and were sentenced. Roopnarine in mid-2015 waived extradition and returned from Trinidad and Tobago to the Southern District of Florida.
According to the court documents, Roopnarine recruited and led his co-conspirators in a widespread mortgage fraud scheme involving more than 150 residential real estate properties in Indian River, Miami-Dade, and Orlando-Orange Counties. Roopnarine, along with Kamla Seecharan and her husband Deo Seecharan, conspired to solicit mainly Guyanese residents of Florida and other States to act as straw buyers on fraudulent mortgage loan applications. Approximately 80 individuals served as straw buyers of properties in Vero Lake Estates (VLE), in Indian River County, and other developments. This scheme resulted in the issuance of more than $50 million in fraudulent mortgage loans. The co-conspirators then used the proceeds to purchase additional properties, fund pre-existing fraudulent mortgage loans, and pay kickbacks to the straw buyers. In addition, Kamla Seecharan and Rovetto unlawfully diverted more than $3.5 million in mortgage loans from real estate closing escrow accounts to Raviworld New Homes, Inc., a company managed by Roopnarine and Deo Seecharan.
Kamla Seecharan pled guilty to participating in a conspiracy involving more than $50 million dollars in fraudulent mortgage loan funds, in violation of Title 18, United States Code, Sections 1341, 1343 and 1349. Deo Seecharan and Rovetto each pled guilty to participating in a conspiracy to commit bank fraud involving $3.5 million dollars in diverted real estate escrow funds, in violation of Title 18, United States Code, Sections 1349 and 1344.
U.S. District Judge Jose E. Martinez sentenced Kamla Seecharan and Deo Seecharan, to 121 months and 60 months, respectively, in prison, to be followed by five years of supervised release. In addition, Kamla Seecharan and Deo Seecharan were ordered to pay restitution, in the amount of $2,040,343.14 and $9,041,133.46, respectively. U.S. District Judge Martinez sentenced Rovetto to 42 months in prison.
Judge Martinez has set a sentencing hearing for Roopnarine on May 10, 2016, at 1:30 p.m. in the Fort Pierce U.S. Courthouse. Roopnarine faces a statutory maximum sentence of up to 30 years in prison and/or a $1,000,000 fine.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also thanked the State of Florida Office of Financial Regulation, Bureau of Finance, West Palm Beach Regional Office for their work on this investigation, and the United States Marshals Service for their assistance with the extradition and return of Roopnarine to Florida from Trinidad & Tobago. The case was prosecuted by Assistant U.S. Attorneys Theodore Cooperstein and James V. Hayes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Glen Carbon Man Pleads Guilty to Armed RobberyRead the Press Release
The Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today that Jonathan Michael Malone, 53, of Glen Carbon, Illinois, pled guilty to criminal charges in the United States District Court in East Saint Louis, Illinois. Malone was charged in the first count with Interference of Commerce by Robbery in violation of Title 18, United States Code, Section 1591, in the second count with Brandishing a Firearm During and In Relation to a Crime of Violence in violation of Title 18, United States Code, Section 924(c), and in the third count with Unlawful Possession of a Firearm by a Convicted Felon in violation of Title 18, United States Code, Section 922(g). The armed robbery charge carries a maximum penalty of twenty years in prison, a $250,000 fine, and three years of supervised release. The brandishing of a firearm charge carries a maximum penalty of life in prison and not less than seven years of prison, to run consecutive to any term imposed on the armed robbery charge, a $250,000 fine, and not less than five years of supervised release. The felon in possession of a firearm charge carries a maximum penalty of ten years in prison, a $250,000 fine, and three years of supervised release. Sentencing is set for July 12, 2016.
Court records indicate, and the defendant admitted in open court, that on January 14, 2016, Malone robbed the One Stop Shop Gas Station in Maryville, Illinois. During the robbery, Malone brandished a handgun at the owner. Furthermore, Malone possessed the handgun unlawfully after having been previously convicted of armed robbery.
The case was investigated by the Glen Carbon Police Department, the Maryville Police Department, the Illinois State Police, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney William E. Coonan.
Glen Burnie Felon Sentenced to 12 Years in Prison for Drug TraffickingRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Tercel Baker, age 33, of Glen Burnie, Maryland today to 12 years in prison followed by four years of supervised release for possession with intent to distribute cocaine base.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, on January 8, 2015, and as part of an investigation of drug and gun violations, members of the Maryland State Police and HSI saw Baker leave his apartment and drive away in a Gold Lexus SUV. After Baker committed several traffic violations, they stopped his vehicle. A K9 was ordered to scan the car and alerted for the presence of contraband. A subsequent search of the vehicle, Baker and his apartment resulted in the seizure of a total of 58.4 grams of crack cocaine, 42.84 grams of marijuana, 26 oxycodone pills, a .40 caliber firearm and $12,000 in cash. Baker admitted to law enforcement that he was a middle man, and that he cooked the cocaine into crack at his house.
Baker has two prior felony drug convictions and was on federal supervised release for being a felon in possession of a firearm at the time of this offense.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Patricia C. McLane and A. David Copperthite, who prosecuted the case.
German Shipping Companies Sentenced to Pay $1.5 Million for Illegally Discharging Oil into the OceanRead the Press Release
The German shipping companies Briese Schiffahrts GmbH & Co. KG and Briese Schiffahrts GmbH & Co. KG MS “Extum,” who owned and operated the cargo ship M/V BBC Magellan, pleaded guilty today to failure to maintain an accurate oil record book, in violation of the Act to Prevent Pollution from Ships and tampering with witnesses by persuading them to provide false statements to the U.S. Coast Guard concerning a bypass hose on the vessel that was being used to discharge oil into the sea.
The two companies were sentenced to pay a total of $1.25 million in fines and a $250,000 community service payment to the National Fish and Wildlife Foundation to fund projects that enhance coastal habitats of the Gulf of Mexico and bolster priority fish and wildlife populations. In addition, the ship M/V BBC Magellan is banned from doing business in the United States for the next five years. The pleas and sentences were announced by Assistant Attorney General John C. Cruden for the Justice Department’s Environmental and Natural Resources Division and Acting U.S. Attorney Christopher P. Canova for the Northern District of Florida.
The operation of a marine vessel, such as the M/V BBC Magellan, generates large quantities of waste oil and oil-contaminated waste water. International and U.S. law requires that these vessels use pollution prevention equipment to preclude the discharge of these materials. Should any overboard discharges occur, they must be documented in an oil record book, a log that is regularly inspected by the U.S. Coast Guard.
In March 2015, during an inspection at the Port of Pensacola, the U.S. Coast Guard discovered an improperly attached rubber hose. Officials later determined that, between January and March 2015, the crew of the M/V BBC Magellan, acting on behalf of the vessel’s owner, had installed and illegally used the rubber hose to remove oily wastes from the vessel’s holding tanks and discharged them directly into the ocean. The crew also failed to make the required entries in the vessel’s oil record book. When questioned about the hose’s purpose and how oily wastes were discharged from the ship, the chief engineer instructed other crew members to lie to the Coast Guard.
“Shipping companies that transport commerce across open seas must respect the international laws and obligations of their trade, which exist to prevent the spoiling of oceans and marine habitat,” said Assistant Attorney General Cruden. “This egregious behavior by shipping companies, which included intentional deception and witness tampering, will not be tolerated. We will continue to prosecute companies and their officers for these crimes.”
“Future generations deserve to enjoy clean and safe coastal waters, and we will continue to prosecute environmental crimes to prevent pollution of our natural resources,” said Acting U.S. Attorney Canova. “Our federal environmental laws rightfully require companies to record their oil waste disposal to keep them accountable and to protect our oceans and marine life.”
“When a company knowingly fails to comply with our nation’s environmental laws, it can have a devastating effect on both public health and wildlife,” said Acting Special Agent in Charge Andy Castro of the Environmental Protection Agency’s (EPA) criminal enforcement program in Florida. “The defendants in this case falsified entries in their vessel’s log books to hide the true nature of its open water discharges. Today’s court action should signal to would-be violators that the American people will not allow the flagrant violation of U.S. laws.”
The case was investigated by U.S. Coast Guard Sector Mobile, the U.S. Coast Guard Investigative Service and the EPA. The case was prosecuted by Assistant U.S. Attorney J. Ryan Love for the Northern District of Florida and Trial Attorney Brandy N. Parker of the Environmental Crimes Section of the Department of Justice Environmental and Natural Resources Division.
German Shipping Companies Sentenced to Pay $1.5 Million for Illegally Discharging Oil into the OceanRead the Press Release
PENSACOLA, FLORIDA – The German shipping companies Briese Schiffahrts GmbH & Co. KG and Briese Schiffahrts GmbH & Co. KG MS “Extum,” who owned and operated the cargo ship M/V BBC Magellan, pled guilty today to failure to maintain an accurate oil record book, in violation of the Act to Prevent Pollution from Ships, and tampering with witnesses by persuading them to provide false statements to the U.S. Coast Guard concerning a bypass hose on the vessel that was being used to discharge oil into the sea. The two companies were sentenced to pay a total of $1.25 million in fines and a $250,000 community service payment to the National Fish and Wildlife Foundation to fund projects that enhance coastal habitats of the Gulf of Mexico and bolster priority fish and wildlife populations. In addition, the ship M/V BBC Magellan is banned from doing business in the United States for the next five years. The pleas and sentences were announced by Christopher P. Canova, Acting U.S. Attorney for the Northern District of Florida, and by Assistant Attorney General John C. Cruden for the Justice Department’s Environmental and Natural Resources Section.
The operation of a marine vessel, such as the M/V BBC Magellan, generates large quantities of waste oil and oil-contaminated waste water. International and U.S. law requires that these vessels use pollution prevention equipment to preclude the discharge of these materials. Should any overboard discharges occur, they must be documented in an oil record book, a log that is regularly inspected by the U.S. Coast Guard.
In March 2015, during an inspection at the Port of Pensacola, the U.S. Coast Guard discovered an improperly attached rubber hose. Officials later determined that, between January and March 2015, the crew of the M/V BBC Magellan, acting on behalf of the vessel’s owner, had installed and illegally used the rubber hose to remove oily wastes from the vessel’s holding tanks and discharged them directly into the ocean. The crew also failed to make the required entries in the vessel’s oil record book. When questioned about the hose’s purpose and how oily wastes were discharged from the ship, the chief engineer instructed other crew members to lie to the Coast Guard.
“Future generations deserve to enjoy clean and safe coastal waters, and we will continue to prosecute environmental crimes to prevent pollution of our natural resources,” said Acting U.S. Attorney Christopher P. Canova. “Our federal environmental laws rightfully require companies to record their oil waste disposal to keep them accountable and to protect our oceans and marine life.”
“Shipping companies that transport commerce across open seas must respect the international laws and obligations of their trade, which exist to prevent the spoiling of oceans and marine habitats,” said Assistant Attorney General John C. Cruden for the Department of Justice’s Environmental and Natural Resources Division. “This egregious behavior by shipping companies, which included intentional deception and witness tampering, will not be tolerated. We will continue to prosecute companies and their officers for these crimes.”
“When a company knowingly fails to comply with our nation’s environmental laws, it can have a devastating effect on both public health and wildlife,” said Andy Castro, Acting Special Agent in Charge of the Environmental Protection Agency’s (EPA) criminal enforcement program in Florida. “The defendants in this case falsified entries in their vessel’s log books to hide the true nature of its open water discharges. Today’s court action should signal to would-be violators that the American people will not allow the flagrant violation of U.S. laws.”
The case was investigated by U.S. Coast Guard Sector Mobile, the U.S. Coast Guard Investigative Service, and the EPA. The case was prosecuted by Assistant U.S. Attorney J. Ryan Love for the Northern District of Florida and Trial Attorney Brandy N. Parker of the Environmental Crimes Section of the Department of Justice Environmental and Natural Resources Division.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Fourteen Individuals Charged in Multistate ConspiracyRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg returned a ten-count indictment on February 24, 2016 against fourteen individuals, charging them with a multistate conspiracy to fraudulently obtain cheaper insurance for commercial bus carriers in Pennsylvania and fraudulently impeding and obstructing the proper administration and enforcement of bus safety regulations by the U.S Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA). The indictment was unsealed today following the arrests of eight of the defendants.
According to U.S. Attorney Peter Smith, the individuals charged in the indictment are:
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Pao Hua Yu, age 52, New York, NY, in custody;
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Wen (aka “When”) Zhou, age 41, Syracuse, NY, in custody;
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Ming Di (aka “De”) Yu, age 59, Wind Gap, PA, in custody;
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Shiao Wen Hsieh (aka “Cicely”), age 58, State College, PA, in custody;
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Bing Lin Pan (aka “Pan Bing Lin”), age 55, Flushing, NY, in custody;
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Ming Zhong Yu, age 35, Brooklyn, NY, in custody;
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Yalin Liu (aka “Alan”), age 50, Philadelphia, PA, in custody;
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You Guo Yang (aka “Jackie Wong”), age 43, Flushing, NY, in custody;
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To Lee (aka “Leo”), age 40, Brooklyn, NY, fugitive;
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Tom Chen (aka “Xiao Long Chen and “Xing Lu Chen”), age 53, Brooklyn, NY, fugitive;
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Tian Jian Pan (aka “Dong Sheng Zheng”), age 55, Flushing, NY, fugitive;
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Xiu Cheng Zheng (aka “Ah Sen”), age 55, Court Norcross, GA, fugitive;
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Samantha Mei (aka “Yu Hua Mei”), age 45, Brooklyn, NY, fugitive; and
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Wei Ming He (aka “Wei Ho,” “Weiming He,” “Ming Wei,” “Xue Dong”), age 47, Clemson, South Carolina, fugitive.
The indictment continues an ongoing investigation by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Bureau of Criminal Investigations of the Pennsylvania Attorney General’s Office, and the U.S. Department of Transportation, Office of Inspector General which previously resulted in July 2015 charges against eight restaurant owners and managers in the State College, Pennsylvania area who were engaged in recruiting, placing, harboring, concealing and transporting unauthorized aliens by commercial buses, vans and other vehicles to and from restaurants in the State College area, where they would work and be housed during their employment.
The indictment charges that the defendants owned bus carriers that operated out of New York City. The defendants are alleged to have conspired with each other to defraud state and federal authorities by filing to incorporate their bus carriers in Pennsylvania, falsely representing that the bus carriers were headquartered in Pennsylvania, and that their buses were located and garaged in Pennsylvania when in fact they were operating the bus carriers out of New York City. Using these fraudulent representations, the defendants obtained operating authority along with licenses, stickers and other authority indicating that the buses met federal and state safety standards.
However, in many cases, the buses used by the defendants had not been properly maintained and did not meet the safety requirements to transport travelers in interstate commerce. Inspections of buses routinely revealed unsafe and hazardous conditions on the buses, which caused them to be routinely shut down and their licenses and operating authority terminated by U.S. Department of Transportation. The defendants did not have proper maintenance programs to monitor the safety of buses. Moreover, the defendants knowingly employed drivers who had not undergone pre-employment drug tests, as required by law, and in many cases were not qualified or properly trained to drive commercial buses in interstate commerce. These unsafe and hazardous conditions were knowingly concealed from Pennsylvania and Federal authorities.
Drivers employed by the defendants would routinely operate buses for more than one company and would maintain more than one log in order to conceal their excessive hours of driving time.
When the defendants’ buses and corporations were shut down by state and federal authorities for repeated safety violations, the defendants would immediately create another shell corporation and would fraudulently use the same defective and dangerous buses to transport passengers in interstate commerce. These violations led to safety violations and accidents where passengers were injured and, in some cases, killed.
The indictment also seeks the forfeiture of all assets of the criminal organization.
“Today's operation sends a strong message that HSI and our law enforcement partners are ever vigilant against those seeking to manipulate the system to gain an unfair advantage over their competitors," said Jack Staton, acting special agent in charge of HSI Philadelphia. "The combined resources of a joint federal, state and local law enforcement operation present a formidable obstacle to any alleged criminal group attempting to undercut the many legitimate businesses that play by the rules.”
“The criminal indictments are an important step in addressing those who willfully disregard laws designed to protect all travelers on our nation’s roadways,” said FMCSA Acting Administrator T.F. Scott Darling, III. “We are proud of the rigorous enforcement of federal safety regulations by FMCSA special agents that helped lead to a multi-Agency investigation culminating in today’s action by the U.S. Attorney’s Office. We will continue to vigorously enforce safety regulations with the goal of removing unsafe commercial vehicles, drivers and carriers from our highways and roads.”
In May 2012, FMCSA announced that it had declared 26 bus operations to be imminent hazards to public safety and order to immediately shut down; evidence of criminal activity discovered by FMCSA special agents during the unprecedented year-long investigation was turned over to the U.S. Department of Transportation Office of Inspector General and to the U.S. Department of Justice leading to the criminal indictment by the U.S. Attorney’s Office.
https://www.fmcsa.dot.gov/newsroom/us-department-transportation-shuts-down-26-bus-operations-unprecedented-sweep
The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Bureau of Criminal Investigation of the Pennsylvania Attorney General’s Office, the U.S. Department of Transportation, Office of Inspector General and assisting the investigation was State College, Philadelphia and New York Police Departments, New York Department of Motor Vehicle and New York Department of Transportation. Assistant U.S. Attorneys William Behe and William Houser, along with Special Assistant U.S. Attorney Robert LaBar of the Pennsylvania Attorney General’s Office coordinated the investigation and the grand jury presentation and have been assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
One count of conspiracy to commit mail and wire fraud carrying a maximum penalty under federal law of up to 20 years and $250,000 fine, eight counts of mail fraud carrying a maximum penalty under federal law of up to 20 years and $250,000 fine for each count and conspiracy to defraud carrying a maximum penalty of up to 5 years and a fine of up to $250,000.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Prison Guard Pleads Guilty to Smuggling Drugs into Federal PrisonRead the Press Release
Contact Person: Nick Bianchi (843) 727-4381
Charleston, South Carolina ---- United States Attorney Bill Nettles stated today that Anthony Jermaine Creech, of Blackville, South Carolina, has entered a guilty plea in federal court in Charleston, to providing marijuana to inmates at Estill FCI, a violation of 18 U.S.C. § 1791. United States Magistrate Judge Mary Gordon Baker of Charleston accepted the guilty plea. Sentence will be imposed after a district judge has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on January 8, 2015, Creech, while working as a prison guard at Estill FCI, delivered one ounce of marijuana to an inmate at the prison. When confronted by authorities, Creech admitted to smuggling in marijuana and other contraband to inmates in exchange for money, and resigned his position at the prison. Estill FCI is a medium security federal prison in Estill, South Carolina.
Mr. Nettles stated the maximum penalty is imprisonment for 5 years and/or a fine of $250,000.
The case was investigated by agents of the Federal Bureau of Investigation and the Department of Justice Office of the Inspector General. Assistant United States Attorney Nick Bianchi of the Charleston office is prosecuting the case.
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Former Harris Township Supervisor Convicted of Producing Child Pornography and Obstruction of JusticeRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Christopher G. Lee, age 66, a resident of Boalsburg, Pennsylvania, was convicted Friday of production, receipt and possession of child pornography as well as obstruction of justice. The four-day trial was held before U.S. District Court Judge Matthew W. Brann in Williamsport.
Lee is a former Harris Township Supervisor and the ex-director of the Boal Mansion Museum in Boalsburg, PA. It was because of his affiliation with the Boal Mansion Museum that Lee had access to teenage boys, who volunteered or worked at the museum as docents or tour guides. Some of these boys later became victims of his production of child pornography.
According to U.S. Attorney Peter Smith, the jury returned with the verdict of guilty of producing and receiving child pornography after approximately two hours of deliberation. The jury of six men and six women also convicted Lee of possessing images of child pornography, including images of prepubescent children under the age of 12 years old. Finally, after hearing Lee attempt to have his cousin assist him in having his cellular telephone that was in the custody of the FBI “wiped remotely” in multiple recorded phone calls, the jury convicted Lee of obstruction of justice. These counts carry enhanced penalties requiring a mandatory minimum of 20 years’ imprisonment.
Judge Brann has not scheduled a sentencing date for Lee, but Lee will remain detained pending a sentencing hearing.
This investigation was conducted by the Federal Bureau of Investigation and the State College Police Department and was prosecuted by Assistant United States Attorneys Meredith A. Taylor and Francis P. Sempa.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 30 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Executive Director of Zaneville's Center for Child and Family Development Sentenced for Stealing Program FundsRead the Press Release
COLUMBUS, Ohio – Melissa Daley, 45, of Nashport, Ohio was sentenced in U.S. District Court to 12 months and one day in prison and ordered to pay approximately $103,000 in restitution and a $25,000 fine for filing a false income tax return with the Internal Revenue Service (IRS), wire fraud and money laundering.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division and Ohio Attorney General Mike DeWine announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
According to court documents, since 1992 Daley acted as the Executive Director for the Center for Child and Family Development (CCFD) in Zanesville, Ohio. CCFD, a non-profit organization, provided foster care and residential case services to children as well as adult care services.
In June 2009, on behalf of CCFD, Daley applied to the Ohio Department of Developmental Disabilities (DODD) to allow for CCFD to be a part of the Individual Options Waiver Program (I/O Waiver Program). This program allowed for continued care of adult individuals with mental or developmental disabilities and permitted qualified individuals to remain in their homes and obtain support for their disabilities rather than requiring them to live in an Intermediate Care Facility for the Mentally Retarded. The application was approved by DODD.
Between March 2011 and November 2012 Daley devised a scheme to defraud CCFD, by diverting payments for the waiver program to a personal checking account for Daley. As a result of this fraudulent scheme, Daley received $71,977.31 of CCFD’s I/O Waiver funds that were deposited into her personal checking.
In addition, in August 2011, after having resigned from CCFD, Daley opened a new bank account in the name of CCFD and claimed she was the President of the organization. After opening the account, Daley again caused waiver program funds to be deposited into her bank account. Once Daley received CCFD’s I/O Waiver funds she would immediately transfer the funds into another bank account in the name of Community Base Services, which was a newly formed entity created by Daley. As a result of this fraudulent scheme, Daley received an additional $296,115.00 of CCFD’s I/O Waiver funds into her personal bank account.
Daley did not report any of the funds she fraudulently obtained on her 2011 or 2012 income tax returns. The total unreported income on Daley’s 2011 and 2012 income tax returns was $360,182.37 resulting in additional taxes due and owing to the IRS in the amount of $103,043.07.
Acting U.S. Attorney Glassman commended the cooperative investigation by the FBI, IRS, and Ohio Attorney General’s Medicaid Fraud Unit, as well as Assistant United States Attorney Kenneth F. Affeldt, who is representing the United States in this case.
Former Captain Sentenced for Withholding Evidence Favorable to a Defendant and Obstructing JusticeRead the Press Release
Two Deputies Also Sentenced for Obstructing Justice by Covering up a Fellow Officer’s Use of Force
The Justice Department announced today that Elizabeth Croley, 37, a former captain at the Decatur County, Georgia, Sheriff’s Office, was sentenced to 18 months in prison for willfully withholding evidence favorable to a criminal defendant and for writing a false report to cover up another law enforcement officer’s use of force against a civilian. Robert Wade Umbach, 36, and Christopher Kines, 36, both former deputies at the Decatur County Sheriff’s Office, were also sentenced to 15 months in prison for making false statements to help cover up the use of force.
In June 2015, a federal jury in Albany, Georgia, convicted the defendants after a trial that lasted more than two weeks. The charges arose from a September 2012 incident in which former Grady County, Georgia, Deputy Sheriff Wiley Griffin IV – who is the son of Decatur County Sheriff Wiley Griffin III – used force against Aaron Parrish during an arrest at the Bainbridge BikeFest. The jury found that Croley, Kines and Umbach obstructed justice when they later helped cover up Griffin’s actions. Specifically, the jury convicted Croley of obstructing justice by writing a false report and convicted Kines and Umbach of engaging in misleading conduct by lying to an FBI agent about the incident. Croley was also convicted of violating Aaron Parrish’s constitutionally protected right to a fair trial by intentionally withholding material exculpatory evidence from the district attorney’s office, and in turn, from Aaron Parrish’s criminal defense attorney during a criminal prosecution of Parrish.
During the trial, the jury heard evidence that Griffin struck Parrish in the eye with a metal flashlight while Parrish was being restrained on the ground by other deputies, including defendants Kines and Umbach. The government also presented evidence that, after Parrish complained to the Decatur County Sheriff’s Office about the abuse he had suffered at BikeFest, the sheriff’s office opened a criminal investigation led by Croley that eventually resulted in felony criminal charges against Parrish. During that investigation, Croley took a witness statement from a civilian eyewitness who provided information that would have been materially helpful to Parrish’s defense. However, rather than providing that statement to the district attorney so that it could then be provided to Parrish’s defense attorney for use at trial, Croley intentionally removed the exculpatory statement from the case file. This conduct formed the basis of the civil rights charge on which Croley was convicted.
“When law enforcement officers break the laws they swear to uphold and harm the people they promise to protect, it undermines public trust in our government,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “If officers try to lie or withhold evidence, we will vigorously protect the integrity of our justice system by holding them accountable for their actions and safeguarding the civil rights of all Americans.”
“The public rightfully depends on law enforcement officers to uphold the law faithfully,” said Acting U.S. Attorney G.F. “Pete” Peterman of the Middle District of Georgia. “When these defendants withheld important facts and provided false information in this investigation, they subverted the entire process and damaged the public's faith in the integrity of their former fellow officers. They fully deserve the sentences meted out to them today.”
This case was investigated by the FBI’s Atlanta Field Office, and was prosecuted by Trial Attorneys Christine M. Siscaretti and Risa Berkower of the Civil Rights Division’s Criminal Section, with support from the U.S. Attorney’s Office of the Middle District of Georgia.
Former Captain Sentenced for Withholding Evidence Favorable to A Defendant and Obstructing JusticeRead the Press Release
WASHINGTON – The Justice Department announced today that Elizabeth Croley, 37, a former captain at the Decatur County, Georgia, Sheriff’s Office, was sentenced to 18 months in prison for willfully withholding evidence favorable to a criminal defendant and for writing a false report to cover up another law enforcement officer’s use of force against a civilian. Robert Wade Umbach, 36, and Christopher Kines, 36, both former deputies at the Decatur County Sheriff’s Office, were also sentenced to 15 months in prison for making false statements to help cover up the use of force.
In June 2015, a federal jury in Albany, Georgia, convicted the defendants after a trial that lasted more than two weeks. The charges arose from a September 2012 incident in which former Grady County, Georgia, Deputy Sheriff Wiley Griffin IV – who is the son of Decatur County Sheriff Wiley Griffin III – used force against Aaron Parrish during an arrest at the Bainbridge BikeFest. The jury found that Croley, Kines and Umbach obstructed justice when they later helped cover up Griffin’s actions. Specifically, the jury convicted Croley of obstructing justice by writing a false report and convicted Kines and Umbach of engaging in misleading conduct by lying to an FBI agent about the incident. Croley was also convicted of violating Aaron Parrish’s constitutionally protected right to a fair trial by intentionally withholding material exculpatory evidence from the district attorney’s office, and in turn, from Aaron Parrish’s criminal defense attorney during a criminal prosecution of Parrish.
During the trial, the jury heard evidence that Griffin struck Parrish in the eye with a metal flashlight while Parrish was being restrained on the ground by other deputies, including defendants Kines and Umbach. The government also presented evidence that, after Parrish complained to the Decatur County Sheriff’s Office about the abuse he had suffered at BikeFest, the sheriff’s office opened a criminal investigation led by Croley that eventually resulted in felony criminal charges against Parrish. During that investigation, Croley took a witness statement from a civilian eyewitness who provided information that would have been materially helpful to Parrish’s defense. However, rather than providing that statement to the district attorney so that it could then be provided to Parrish’s defense attorney for use at trial, Croley intentionally removed the exculpatory statement from the case file. This conduct formed the basis of the civil rights charge on which Croley was convicted.
“When law enforcement officers break the laws they swear to uphold and harm the people they promise to protect, it undermines public trust in our government,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “If officers try to lie or withhold evidence, we will vigorously protect the integrity of our justice system by holding them accountable for their actions and safeguarding the civil rights of all Americans.”
“The public rightfully depends on law enforcement officers to uphold the law faithfully,” said Acting U.S. Attorney G.F. “Pete” Peterman of the Middle District of Georgia. “When these defendants withheld important facts and provided false information in this investigation, they subverted the entire process and damaged the public's faith in the integrity of their former fellow officers. They fully deserve the sentences meted out to them today.”
This case was investigated by the FBI’s Atlanta Field Office, and was prosecuted by Trial Attorneys Christine M. Siscaretti and Risa Berkower of the Civil Rights Division’s Criminal Section, with support from the U.S. Attorney’s Office of the Middle District of Georgia.
Former Branson EMT Sentenced to 21 Years for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Branson, Mo., EMT was sentenced in federal court today for producing child pornography.
Nicholas James Dickerson, 31, of Branson, Mo., was sentenced by U.S. District Judge M. Douglas Harpool to 21 years and 10 months in federal prison without parole. The court also sentenced Dickerson to supervised release for the rest of his life following incarceration.
Dickerson, who pleaded guilty on Feb. 26, 2015, was employed by the Western Taney County Fire Protection District as an EMT less than 18 months and was a volunteer firefighter for about eight months. Dickerson was residing in living quarters at a Branson fire station at the time of the offense.
According to court documents, Dickerson sold his iPhone to a Nixa, Mo., business on Feb. 9, 2015. After the transaction was complete, an employee of the business noticed that the “deleted pictures folder” was still present on the screen. The employee saw an image of child pornography and alerted the store owner, who contacted law enforcement.
Investigators identified the nine-year-old victim in the photo, which was taken on Feb. 7, 2015. Dickerson told investigators that he took the photo while sexually abusing the child victim in his living quarters at the fire station, and that he sexually abused the victim on multiple occasions. Dickerson also told investigators he had shown pornography to the child victim on multiple occasions.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Feeding Program Fraud Ring Sees First Defendant Sentenced, Jordan Receives More Than 5 Years PrisonRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced today that United States District Court Judge James M. Moody Jr. sentenced Kattie Jordan, 51, of Dermott, to more than five years in federal prison for her role in the widespread scheme to steal money intended for feeding children in low income areas.
Jordan, who pled guilty to conspiring to commit wire fraud on August 3, 2015, was sentenced to 63 months imprisonment, to be followed by three years of supervised release. She was also ordered to pay joint restitution of $3,629,278.20, along with any other defendants who may be sentenced to the same restitution amount.
Jordan is the first defendant sentenced who was charged in the scheme to fraudulently obtain United States Department of Agriculture (USDA) program funds intended to feed children in low income areas. Anthony Leon Waits, Gladys Elise Waits, Tonique D. Hatton, Jacqueline D. Mills, Dortha M. Harper, and Jordan are charged with conspiring to fraudulently obtain USDA program funds and related crimes.
Jordan and Mills operated as sponsors for separate feeding programs. Gladys Waits and Hatton worked for the Arkansas Department of Human Services, and part of their job was to determine eligibility of sponsors to participate in the feeding programs. Gladys Waits and Hatton approved Jordan’s and Mills’ programs at various times.
Although Jordan and Mills did feed some children, the charges allege that Mills and Jordan submitted claims for many more meals than they actually served. Gladys Waits and Hatton approved applications for Mills and Jordan, which facilitated the payment of these fraudulent claims. Mills and Jordan then made bribe payments to Gladys Waits and Hatton, sometimes directly and at other times indirectly through their relatives.
The amount of Jordan’s fraud, over and above any children actually being fed, was in the millions of dollars. During Tuesday’s sentencing hearing, the United States argued that not only were these millions of dollars not used to provide meals for hungry children, but also that the fraud Jordan and others engaged in impacted the integrity of the feeding programs. The United States argued that, because of the fraud, simply focusing on statistics, such as the amount of money paid through the programs or the number of children allegedly being fed, does not provide an accurate way to gauge the success of these feeding programs.
The remaining defendants in the case are scheduled to stand trial beginning May 16, 2016. The statutory penalty for wire fraud and conspiracy to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release. The statutory penalty for receipt of bribes, paying bribes, and money laundering is not more than 10 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release.
The investigation remains ongoing and is conducted by the United States Department of Agriculture—Office of Inspector General, United States Secret Service, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations, and the United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana K. Harris and Allison W. Bragg.
If anyone is aware of any fraudulent activity regarding feeding programs, please email that information to the United States Attorney’s office at [email protected].
Eight sentenced for heroin, cocaine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Eight individuals were sentenced in federal court in Martinsburg for heroin and cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Six individuals were sentenced for their role in a multi-state heroin trafficking operation led by Brian Alexander Hall, 28, of Baltimore, Maryland. Hall orchestrated a network of associates to transport heroin across state lines for redistribution and sale in Maryland, Pennsylvania, Virginia, and West Virginia. A 163-count federal indictment targeting 41 defendants interrupted the drug trafficking scheme in June 2015.
Jefferey David Murphy, 34, of Martinsburg, pled guilty in November 2015 to one count of “Use of a Telephone to Facilitate the Distribution of Heroin,” one count of “Aiding and Abetting Interstate Travel in Aid of Racketeering,” and one count of “Aiding and Abetting Possession With Intent to Distribute Heroin.” He was sentenced to 48 months in prison on the telephone charge and 51 months in prison on each of the remaining charges. The sentences will run concurrently for a total of 51 months in prison. He was also ordered to forfeit his interest in $29,850 in United States currency.
William Lee Wasson, 38, of Falling Waters, West Virginia, pled guilty in September 2015 to one count of “Use of a Telephone to Facilitate the Distribution of Heroin,” one count of “Aiding and Abetting Interstate Travel in Aid of Racketeering,” and one count of “Aiding and Abetting Possession With Intent to Distribute Heroin.” He was sentenced to 36 months in prison on each count. The sentences will run concurrently for a total of 36 months in prison.
Brandon Kidwell, 24, of Great Cacapon, West Virginia, pled guilty in November 2015 to one count of “Aiding and Abetting Interstate Travel in Aid of Racketeering.” He was sentenced to 24 months in prison.
Robert Hamilton Shanley-Sexton, 24, of Gaithersburg, Maryland, pled guilty in September 2015 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin.” He was sentenced to twelve months and one day in prison.
Cameron Stinebaugh, 28, of Great Cacapon, West Virginia, pled guilty in November 2015 to one count of “Aiding and Abetting Interstate Travel in Aid of Racketeering.” He was sentenced to probation for a term of five years.
Jared Michael Belanger, 36, of Martinsburg, pled guilty in November 2015 to one count of “Interstate Travel in Aid of Racketeering.” He was ordered to forfeit his interest in $8,500 in United States currency and sentenced to probation for a term of five years.
In another matter, Ariana Shanae Parker, 24, of District Heights, Maryland, and Theron Eugene Cobb, 32, of Miami, Florida, were sentenced for heroin and cocaine trafficking.
Cobb was as discovered in possession of cocaine in Berkeley County. He pled guilty in November 2015 to one count of “Possession with Intent to Distribute Cocaine Base.” He was sentenced to 36 months in prison.
Parker sold heroin in Berkeley County, West Virginia. She pled guilty in November 2015 to one count of “Aiding and Abetting Distribution of Heroin.” She was sentenced to probation for a term of three years.
Special Assistant U.S. Attorney Stephanie Taylor, also of the Berkeley County Prosecuting Attorney’s Office, prosecuted Parker and Cobb on behalf of the government. Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted the remaining defendants on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated all of the defendants. The Federal Bureau of Investigation also investigated the multi-state heroin trafficking network.
Chief U.S. District Judge Gina M. Groh presided.
District Man Sentenced to Prison for Armed Robbery in Southeast WashingtonRead the Press Release
WASHINGTON – Joshua Mayo, 18, of Washington, D.C., was sentenced today to a 42-month prison term for two offenses, including an armed robbery and receipt of stolen property taken during another armed robbery, U.S. Attorney Channing D. Phillips announced.
Mayo pled guilty in October 2015, in the Superior Court of the District of Columbia, to charges of armed robbery and receipt of stolen property. The Honorable Todd E. Edelman sentenced him to a total of 72 months in prison, but suspended all but 42 months of the time on the condition that he successfully complete a period of probation.
According to the government’s evidence, on Friday, Aug. 28, 2015 at approximately 7:50 a.m., the victim reported that Mayo approached her after she exited her vehicle in the 1500 block of East Capitol Street SE. Mayo blocked the victim’s path, and stated, “Stop, give me your bags,” while directing her attention to the handle of the pistol that was sticking out from the right front portion of his waistband. The victim handed over her belongings, including her car keys.
Mayo fled the area, but returned several hours later to the parking lot where the victim had previously parked her vehicle. Law enforcement had been canvassing the area for the defendant, and when they attempted to stop him in his vehicle, he fled the area. He was eventually detained after he crashed the vehicle. Law enforcement recovered a black .45-caliber semi-automatic pistol from inside the vehicle, as well as some of the victim’s belongings.
The receipt of stolen property charge stems from Mayo’s possession of a cellphone stolen on April 11, 2015, during another armed robbery in Northeast Washington.
In announcing the sentence, U.S. Attorney Phillips commended the work of the officers, detectives, and others who worked on the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Vivien Cockburn and Derrick Williams, who investigated and prosecuted the cases.
Delmont Man Sentenced to Prison for Role in California to PA Cocaine Trafficking SchemeRead the Press Release
PITTSBURGH - A Westmoreland County resident has been sentenced in federal court to 21 months’ imprisonment on his conviction of conspiracy to distribute 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Tieriq Pinnix, 22, of Delmont, Pa.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Tieriq Pinnix was intercepted over the wire conspiring with others, including his father, Cecil Pinnix, to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to fulfill the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Pinnix.
Collinsville Man Sentenced to 18 Months in Prison for Conspiracy to Commit Mail FraudRead the Press Release
Michael Alan Carver, age 30, from Collinsville, Illinois was sentenced to eighteen 18 months in prison for the offense of Conspiracy to Commit Mail Fraud, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Additionally, Carver was ordered to serve three years supervised release following his release from prison and ordered to pay restitution totaling $7,655.28.
Carver stole United States mail out of area mail boxes with a coconspirator Jeffrey Brown to obtain the means of identification of other persons. As part of the conspiracy the means of identification were used to apply for and activate credit cards of other persons without authorization. Brown fraudulently purchased various merchandise online and at retail stores using the unauthorized access devices and had items delivered to Carver's residence. Carver was indicted jointly with Jeffrey Brown who was previously sentenced in November 2015 and received a sentence of two years in prison.
The successful prosecution is the result of an investigation conducted by the Southern Illinois Identity Theft Task Force consisting of the Internal Revenue Service/Criminal Investigations, the United States Secret Service and the Postal Inspection Service. The Collinsville Police Department also assisted in the investigation. The prosecution was handled by Assistant U.S. Attorney Norman R. Smith.
Colleyville, Texas Man Sentenced to 180 Months in Federal Prison for Running Nearly $4 Million Wind Farm Investment ScamRead the Press Release
DALLAS — David Lyman Spalding, 62, of Colleyville, Texas, was sentenced today by U.S. District Judge Barbara M. G. Lynn to 180 months in federal prison and ordered to pay $3,391,146.80 in restitution, following his conviction at trial on all counts of a superseding indictment charging various offenses related to a wind farm investment scam he ran, announced U.S. Attorney John Parker of the Northern District of Texas.
Spalding was also ordered to forfeit $160,893.31, which represents the proceeds of the sale of his residence on Spring Garden Drive in Colleyville. He has been in federal custody since July 2015.
The government presented evidence at trial that from at least 2003 and continuing through approximately April 2011, Spalding raised approximately $3.7 million from 97 investors in 11 states. Spalding made false representations to get investors to invest in promissory notes issued by Wind Plus, Inc. and Baseload Energy LLC and diverted the funds for his own benefit, to include purchasing real estate and extensive international travel not related to either Wind Plus or Baseload.
When Spalding filed bankruptcy in November 2009 for Wind Plus Inc. and Wind Plus Holdings Inc., he continued to solicit investors for Baseload energy, promising that funds would be used to build infrastructure for renewable energy projects. He also represented that the changes in management were for business purposes when in fact the staff had quit Wind Plus because they were not paid. As part of his fraud, Spalding also represented that investors would be repaid their investments, within varying timeframes from 60 days to one year, when in fact, Spalding did not repay investors within any of the specified timeframes.
In the Wind Plus bankruptcy case, Spalding falsely testified under oath about the number of individuals who were note holders as well as the amount of distributions and withdrawals he had taken.
The FBI investigated the case. Assistant U.S. Attorney Chris Stokes and Special Assistant U.S. Attorney Dan Gividen prosecuted.
# # #Charlotte Man Sentenced to Three Years in Prison for $2 Million Health Care Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that Eric Bernard Mitchell, 44, of Charlotte, was sentenced to 37 months in prison for defrauding Medicaid of over $2 million. U.S. District Judge Max O. Cogburn, Jr. also ordered Mitchell to serve one year under court supervision and to pay $ 2,049,932.12 as restitution to Medicaid. Mitchell pleaded guilty October 2015 to health care fraud and money laundering charges.
U.S. Attorney Rose is joined in making today’s announcement by Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigations Division (MID), Derrick L. Jackson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General for the region including North Carolina, and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to filed court documents and today’s sentencing hearing, from about 2007 to about 2009, Mitchell co-owned and operated Angelic Community and Family Services, L.P. (Angelic), which provided alternative care in a non-institutional setting to Medicaid recipients with intellectual/developmental disabilities. Angelic later became defunct, and in 2009, Mitchell assisted in the creation of another company, identified in court documents as “Company #1,” which provided the same type of services as Angelic. Mitchell operated significant portions of Company #1’s business and had exclusive control of the company’s bank accounts. According to court records, both Angelic and Company #1 were approved by Medicaid to provide such services to beneficiaries and to receive reimbursement from the government program.
Court records show that that from about October 2009 to about June 2014, Mitchell submitted fraudulent claims to Medicaid on behalf of Company #1, seeking reimbursement for services which were never provided to beneficiaries with developmental disabilities. According to court records, Mitchell submitted the fraudulent claims using the Medicaid beneficiary information of former clients of Angelic, who Mitchell knew were approved to receive such services. Over the course of the scheme, Mitchell submitted at least $2.5 million in fraudulent claims using the beneficiaries’ stolen information and to receiving over $2 million in payments from Medicaid.
According to court records, Medicaid directed payments for Company #1’s reimbursement claims, including the fraudulent ones, to multiple bank accounts exclusively controlled by Mitchell. Over the course of the conspiracy, Mitchell used portions of the Medicaid funds to cover personal expenses, including to make multiple car payments to a Mercedes dealer and to pay for various car repair services.
Mitchell will be ordered to report to the Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by HHS-OIG, IRS-CI and MID. Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
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.
Chalmette Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARQUIS JOHNSON, age 32, of Chalmette, pled guilty today to an indictment charging him with four violations of the Federal Controlled Substances Act.
According to court records, JOHNSON conspired with others to possess with the intent to distribute and to distribute a quantity of a mixture or substance containing a detectable amount of heroin, a Schedule I drug controlled substance and a substance containing a detectable amount of cocaine base, a Scheduled II drug controlled substance. In addition to the conspiracy, JOHNSON pled guilty to three substantive distributions of heroin or cocaine base.
On each of the charges, JOHNSON faces a sentence of up to twenty years imprisonment and/or a fine of $1,000,000, a three year term of supervised release following any term of imprisonment, and a mandatory $100 special assessment. U.S. District Judge Susie Morgan set sentencing on June 15, 2016.
U.S. Attorney Polite praised the work of the Special Agents of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Butler County Woman Sentenced to 4+ Years in Prison for Stealing Walmart Customers’ IdentitiesRead the Press Release
PITTSBURGH - A resident of Butler County, Pennsylvania, has been sentenced in federal court to 57 months incarceration and three years supervised release on her conviction of conspiracy, and aggravated identity theft, United States Attorney David J. Hickton announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Jennifer MacVittie, 32.
In connection with the information presented to the court, beginning around October 2013, through May, 2014, Jennifer MacVittie and Robert MacVittie used cell phone cameras to “shoulder surf” social security numbers from Walmart customers nationwide by taking cell phone video images of the customers who were cashing checks at the customer service counters. The stolen information was later used to negotiate counterfeit checks at Walmart stores throughout the U.S., including Pennsylvania, West Virginia, Florida, Texas, Mississippi, Alabama, Kansas and other states. The MacVittie’s were arrested at a casino by law enforcement in Nevada on Nov. 29, 2014.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force conducted the investigation that led to the indictment of the Jennifer MacVittie. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Bucks County Man Charged in Bank Bilking ConspiracyRead the Press Release
PHILADELPHIA - Joseph Rosko, III, 36, of Ambler, PA, was charged by Information, filed on February 19, 2016, with misapplication of bank funds and conspiracy, announced United States Attorney Zane David Memeger.
Rosko was the Commercial Loan Officer at Earthstar Bank in Southampton, PA, from approximately April 2009 until May 2010 and had an Earthstar credit card. Rosko and David Lyster, the Chief Lending Officer (charged elsewhere), agreed that Lyster would eliminate the minimum monthly payment requirement from Rosko’s credit card. Over time, Lyster raised Rosko’s credit limit to $65,000. Rosko exceeded his credit limit on the card and defaulted on the account. One of Rosko’s customers at Earthstar Bank, W.R., had an Earthstar Bank credit card with a credit limit of $15,000, and W.R.’s company had six business loans with Earthstar Bank totaling approximately $250,000. As of March 2010, W.R. had reached the credit limit on his Earthstar credit card, and his company’s loans were non-performing. Rosko solicited Lyster to eliminate the minimum payment term and the cash advance fee on W.R.’s Earthstar Bank credit card. Thereafter, W.R. withdrew almost $50,000 in cash advances on the card. Ultimately, W.R. exceeded the $75,000 credit limit on the credit card, and defaulted on the card.
Rosko obtained a one-third ownership interest in a struggling pizza restaurant owned by J.P. At that same time, W.R. (Rosko’s bank customer) also obtained a one-third interest in the restaurant. J.P. (the original owner) retained a one-third interest. At approximately the same time, Rosko arranged for an Earthstar Bank credit card with a “no minimum payment” term to be sent to J.P. J.P. withdrew more than $30,000 in cash advances on the card. In September 2010, J.P. exceeded the $35,000 credit limit and defaulted on the card.
If convicted, Rosko faces a maximum possible sentence of 35 years in prison, up to five years of supervised release, a possible fine, and a $200 special assessment. Full restitution of as much as $124,891 also shall be ordered.
The case was investigated by Office of Inspector General of the Board of Governors of the Federal Reserve System’s Consumer Financial Protection Bureau, the Office of Inspector General of the Federal Deposit Insurance Corporation, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Baltimore Man Indicted for Carjacking Conspiracy and for Crashing a Stolen Car into NSA Security GateRead the Press Release
Baltimore, Maryland – A federal grand jury today indicted Dontae Small, age 42 of Baltimore, on charges of conspiracy, carjacking, and destruction of government property, after he allegedly rammed a stolen car into a security gate at the National Security Agency in Ft. Meade, Maryland.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Kevin Davis of the Baltimore Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; Anne Arundel County Police Chief Tim Altomare; and the National Security Agency Police.
According to the three count indictment, on October 4, 2015, Small and his co-conspirators were riding in a white minivan in the Federal Hill neighborhood of Baltimore, looking for victims to rob. At about 10:09 p.m. Small texted a male co-conspirator the following message: “Get the dude cpming down da st.I parked on smoking a pipe” [sic].
Three of the co-conspirators approached Victim 1 on Covington Street, pointed a silver handgun at the victim and demanded that the victim give them the keys to his car, a 2008 Acura TSX. The conspirators then took the car. On that same night, two of the conspirators approached Victims 2 and 3. One of the conspirators brandished a silver handgun and asked what was in Victim 2’s pockets. Victims 2 and 3 fled and one of the conspirators grabbed a cellular phone that had fallen from Victim 3’s pocket as they ran.
The indictment alleges that Small took the stolen Acura and drove it from Baltimore to Anne Arundel County, Maryland, crashing the car into a security gate protecting the National Security Agency on October 7, 2015.
Small faces a sentence of 15 years in prison for carjacking; a maximum of 10 years in prison for destruction of government property; and a maximum of five years in prison for conspiracy. An initial appearance in U.S. District Court in Baltimore has not yet been scheduled. Small remains detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended FBI, the Baltimore City Police Department, Baltimore City State’s Attorney’s Office, Anne Arundel County Police Department, and National Security Agency Associate Directorate for Security and Counterintelligence for their work in the investigation and thanked the Fort George G. Meade Directorate of Emergency Services for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Sandra Wilkinson, who is prosecuting the case.
Ayden Man Sentenced to More Than 19 Years for Receipt of Child PornographyRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court, United States District Judge Louise W. Flanagan sentenced ANDREW DALE MOORE, 29, of Ayden, North Carolina, to 235 months imprisonment, followed by a lifetime of supervised release and a $5,000 fine.
MOORE was named in an eleven count Indictment filed on May 12, 2015. On July 15, 2015, MOORE pled guilty to one count of Receipt of Child Pornography.
The investigation revealed that on September 15, 2014, ANDREW DALE MOORE, a registered sex offender in Pitt County, North Carolina, contacted his sex offender counselor and acknowledged reoffending. Specifically, MOORE indicated that his criminal activities began between the ages of 14 and 16 and since that time, he has had sexual contact with at least 17 minor females between the ages of 2 to 14. Additionally, the defendant acknowledged reoffending since his release from custody on July 8, 2013, as well as possessing child pornography.
Based on the information, the Pitt County Sheriff’s Office
obtained a search warrant. On September 16, 2014, a search was completed at MOORE’s residence in Ayden, North Carolina. During the search, agents located and seized two computers, two cellular phones, multiple media storage devices, compact discs (CD’s) and digital video discs (DVDs). Forensic examination revealed child pornography (CP) on one of MOORE’s cellular phones. Agents determined that the defendant utilized the phone to access the internet and search for CP through peer-to-peer (P2P) file sharing programs.
The defendant provided an unprotected statement to agents in which he acknowledged receiving and collecting CP through the use of a P2P program. Additionally, the defendant obtained CP after he met individuals with similar interests on social networking sites. MOORE advised that he chatted with individuals who sent files containing CP to him through a Dropbox link. Agents were able to recover at least 150 still images and 50 videos containing CP from MOORE’s Dropbox account. Additionally, forensic examination uncovered at least 1,000 images and 100 videos stored on the defendant’s cellular phone. The defendant’s collection contained material that portrayed sadistic or masochistic conduct. Based on the investigation, MOORE is responsible for receiving and possessing at least 12,400 images of CP through the use of a computer or interactive computer service.
Investigation of this case was conducted by the Pitt County Sheriff’s Office. Assistant United States Attorney Ethan Ontjes represented the government.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Atlantic Beach Attorney Pleads Guilty to EmbezzlementRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that William Reid Penuel (37, Ponte Vedra Beach) has pleaded guilty to embezzlement from a bankruptcy estate. He faces a maximum penalty of five years in federal prison and restitution estimated at approximately $151,000. A sentencing date has not yet been set.
According to court records, between March 2015 and July 2015, Penuel was serving as the Chapter 7 Trustee in a pending business bankruptcy case in Tallahassee, Florida when he embezzled estate funds held in a bank account, in Duval County. At the time, Penuel was a licensed attorney whose office was located in Atlantic Beach. After becoming the Chapter 7 Trustee for the debtor, Premier Bank Holding Company, Penuel assumed responsibility for approximately $909,000 in estate funds, which he deposited into his bank account. Penuel began diverting estate funds, which had been authorized by the bankruptcy court to pay certain expenses, to his own use. As the authorized signor on the estate bank account, Penuel made withdrawals and then re-deposited the monies into other accounts that he controlled. Once the funds were placed into his operating account, Penuel withdrew the funds. The scheme involved over 20 withdrawals from the estate bank account, totaling approximately $151,239.
This case was investigated by the Federal Bureau of Investigation – Jacksonville Office. It is being prosecuted by Assistant United States Attorney Dale Campion.
Atlanta Kilogram Cocaine Supplier Sentenced to 100 Months in PrisonRead the Press Release
Contact Person: JD Rowell (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Bryant Christopher Ford of Mableton, Georgia was sentenced today in federal court in Columbia, South Carolina, after having pled guilty to conspiracy to possess with intent to distribute cocaine in violation of federal law. Chief United States District Judge Terry L. Wooten of Columbia sentenced Ford to 100 months incarceration, followed by 3 years supervised release. As part of the sentence, Judge Wooten also ordered that Ford is required to forfeit over $300,000.00 in cash and other assets he purchased or used during the drug trafficking conspiracy.
Evidence presented at the change of plea hearing established that the FBI conducted surveillance on Ford and Harold McFadden from April through June of 2015. On June 16, 2015, Agents followed McFadden to an apartment complex near Augusta, Georgia, where McFadden and Ford met out of view of the surveillance agents. Shortly after Ford and McFadden met, McFadden was stopped by Troopers with the South Carolina Highway Patrol that were working with the FBI. A search of McFadden’s van revealed 5 kilograms of powder cocaine hidden in an aftermarket “trap” compartment behind the dash of the van. Paperwork in the van confirmed that McFadden had purchased the van from Ford several months prior.
On that same day, FBI Agents in the Southern District of Georgia received approval to execute a search warrant at Ford’s home in Mableton, Georgia. The search revealed $304,431.00 in cash (some of which was in heat sealed bags), approximately 28 grams of powder cocaine, an industrial money counting machine, heat sealing equipment and other paraphernalia associated with drug use and/or trafficking.
Facts presented at Ford’s guilty plea and sentencing demonstrated that Ford supplied McFadden with between 40-50 kilograms of powder cocaine and over 600 kilograms of marijuana during the course of their drug dealing activities. In total, Ford agreed to forfeit the money that was seized at his house ($304,431.00), two vehicles, and four Rolex watches. The defendant also agreed to pay a $250,000.00 money judgment.
McFadden was sentenced to 70 months, followed by 3 years of supervised release on January 19, 2016, after having pled guilty to conspiracy to possess with intent to distribute cocaine.
The case was investigated by agents of the Federal Bureau of Investigation and Sumter City Police Department. Assistant United States Attorney JD Rowell of the Columbia office prosecuted the case.
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