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22 April 2016
U.S. Attorney Polite Announces Events in Honor of National Reentry WeekRead the Press Release
U.S. Attorney Kenneth A. Polite announced that his Office will observe National Reentry Week through the following special events and programs:
Monday, April 25, 2016 Launching of National Reentry Week
2:00 pm with U.S. Department of Housing and Urban Development (HUD)
Principal Deputy Assistant Secretary Lourdes Castro Ramirez
Educare of New Orleans
Columbia Parc Facility
3801 St. Bernard Avenue
New Orleans, LA
Wednesday, April 27, 2016 Reentry Challenges…Bridging the Gap
8:30 am Pollock Federal Correctional Complex
1000 Airbase Road
Pollock, LA
Thursday, April 28, 2016 Reentry Simulation hosted by the U.S. Attorney’s Office
10:00 am for the Southern District of Alabama
Arthur Outlaw Convention Center
1 South Water Street
Mobile, AL
In visiting with inmates at the federal prison, Polite will be the first sitting U.S. Attorney in Louisiana to visit Pollock FCC. He will be joined by Lilia Valdez-Lindsley of the Veterans Administration and Hakim Kashif, a former federal inmate who has successfully returned to the New Orleans community as a college student and criminal justice advocate.
Earlier today, the Eastern District of Louisiana kicked off its National Reentry Week activities when 11 returning citizens graduated from the Rise and Recover post-release reentry program. A partnership between the U.S. Probation Office, the U.S. District Court, the Federal Defenders Office, the U.S. Marshals Service, and the U.S. Attorney’s Office, Rise and Recover provides individuals with job training, life skills, conflict resolution skills, and drug treatment. If the individual completes the 14-month program, he or she receives a one-year reduction in supervised release time.
The Obama Administration has taken major steps to make our criminal justice system fairer, more efficient, and more effective at reducing recidivism and helping formerly incarcerated individuals contribute to their communities. An important part of that commitment is preparing those who have paid their debt to society for substantive opportunities beyond the prison gates, and addressing obstacles to successful reentry that too many returning citizens encounter.
As part of this effort, the Department of Justice designated the week of April 24-30, 2016, as National Reentry Week. Leadership from across the Administration are traveling during National Reentry Week in support of these many events and are encouraging federal partners and grantees to work closely with stakeholders like federal defenders, legal aid providers, and other partners across the country to increase the impact of this effort.
Two More Men Plead Guilty to Drug-trafficking ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two more defendants pleaded guilty in federal court today to their roles in a large-scale conspiracy to distribute cocaine in Boone County, Mo.
Ronnie Lee Gillette, 55, of Kingdom City, Mo., and Tyrone Dewayne Jackson, 36, of Boonville, Mo., pleaded guilty in separate hearings before U.S. Magistrate Judge Matt J. Whitworth to participating in a conspiracy to distribute cocaine in Boone County from November 2011 to August 2014. Gillette also pleaded guilty to using a telephone to facility the drug-trafficking conspiracy.
By pleading guilty today, Gillette admitted that he worked for co-defendant Kenneth Scott, Sr., 47, and assisted him in transporting cocaine and in delivering and selling crack cocaine to others, including co-defendant Malcolm Desean Redmon, also known as “Harp,” 32, of Columbia.
On June 20, 2014, Gillette made a trip to Kansas City to pick up powder cocaine for Scott and delivered it to the residence of co-defendant Teka Hayes, 51, Columbia. Scott and Redmond then converted the powder cocaine to crack cocaine at the residence. On July 22, 2014, Gillette went to Hayes’s residence again and picked up cocaine.
Jackson admitted that he ordered powder cocaine from Scott, and it would either be delivered to Jackson by Scott or Gillette, or Jackson would make arrangements to pick it up. According to today’s plea agreement, Perez also would deliver some controlled substances to Jackson, including marijuana and a small amount of cocaine.
Jackson admitted that, while involved in the conspiracy, in addition to the amounts he received from Perez, he was directly responsible for receiving at least eight ounces of powder cocaine from Scott and then reselling it. Jackson admitted that he also acquired at least two ounces of powder cocaine and three pounds of marijuana for resale from Perez during his participation in the conspiracy.
Gillette, Jackson, Scott, Redmon, Perez and Hayes are among 20 defendants who have pleaded guilty.
Under federal statutes, Gillette and Jackson are each subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS-Criminal Investigation, the Columbia, Mo., Police Department, the Boone County, Mo., Sheriff’s Department, the U.S. Marshal’s Service, MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group), the Drug Enforcement Administration and the Boone County, Mo., Prosecuting Attorney’s Office.
Ten Year Prison Sentence in Stolen Guns CaseRead the Press Release
Gulfport, Miss – Octavia Jermaine Winters, 32, of Gulfport, was sentenced today by U.S. District Sul Ozerden to 10 years in federal prison followed by three years of supervised release for stealing firearms from a licensed dealer, announced U.S. Attorney Gregory K. Davis.
Winters was also ordered to pay restitution of $9,008.68 and a $4,000 fine. The case involved the theft of 52 firearms from Friendly Pawn and Auto in Saucier, Mississippi.
This case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives, the Drug Enforcement Administration and the Harrison County Sheriff’s Department. It was prosecuted by Assistant United States Attorney Annette Williams.
Tampa Man Convicted of Multiple Identity Theft and Credit Card Fraud ConspiraciesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that a federal jury has found Yannier Arias guilty of 17 counts of conspiracy, aggravated identity theft, and access device fraud. He faces a maximum penalty of 5 years in federal prison on the conspiracy charges and 10 years’ imprisonment on the access device fraud, followed by 2 years on the aggravated identity theft charges. His sentencing hearing is scheduled for August 9, 2016. Arias was indicted on August 27, 2015.
According to evidence presented at trial, Arias first conspired with another Tampa man, Dariel Sardinas Lopez, to “skim” credit card numbers from identity theft victims at various gas stations in Hillsborough, Pinellas, and Sarasota counties; produce counterfeit credit cards encoded with that stolen account information; and then use those counterfeit cards to make thousands of dollars of fraudulent purchases in Florida and Michigan. After Lopez was arrested, Arias entered a second conspiracy with Jose Ojeda Vera, another Tampa man. It again involved the use of counterfeit cards encoded with the account information of identity theft victims to make similar purchases, including at luxury retailers such as Versace, Armani, and Louis Vuitton. All of the victims still had their cards in their possession when they learned that their accounts had been unlawfully used.
This case was investigated by the United States Secret Service Financial Investigative Strike Team (FIST) and the Florida Department of Law Enforcement. It was tried by Assistant United States Attorneys Kelley Howard-Allen and Eric K. Gerard.
Springfield Business Owner Pleads Guilty to Structuring Financial TransactionsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., business owner has pleaded guilty in federal court to structuring financial transactions in an effort to evade federal reporting requirements.
Douglas Gooch, 55, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush on Thursday, April 22, 2016, to structuring financial transactions to evade federal reporting requirements. Gooch owns and operates a wholesale business selling antiques, jewelry and coins in Springfield. Gooch purchases and sells antiques, jewelry and coins.
Gooch made 18 withdrawals from his bank account between June 29 and Nov. 1, 2011. Each withdrawal was for an amount under $10,000. Most withdrawals were made on consecutive days or within days of each other and most withdrawals were for $9,000. Collectively, if the withdrawals were conducted as one financial transaction, the amount of the single withdrawal would total $137,200.
Under federal law, any financial institution that engages in a currency transaction (such as a deposit or withdrawal) in excess of $10,000 with a customer must report the transaction to the Department of the Treasury by filing a Currency Transaction Report. Gooch admitted to bank personnel that his withdrawals were purposely done in amounts under $10,000 in order to avoid filing a Currency Transaction Report.
Gooch also admitted that he made 10 withdrawals from his credit union account between July 25 and Oct. 6, 2015. Each withdrawal was for an amount under $10,000. Collectively, if the withdrawals were conducted as one financial transaction, the amount of the single withdrawal would total $85,000.
In total, during the two time periods in which Gooch knew of the Currency Transaction Report threshold and expressed his desire to withdraw monies in amounts that evaded this reporting requirement, Gooch’s structured withdrawals totaled $222,200.
Under federal statutes, Gooch is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Federal Deposit Insurance Corporation and the Springfield, Mo., Police Department.
Somersworth Man Pleads Guilty to Illegal Possession of Four FirearmsRead the Press Release
Concord, N.H.— United States Attorney Emily Gray Rice announced that Joseph Ruhland, 42, of Somersworth, New Hampshire, pleaded guilty to a federal indictment charging him with the illegal possession of four firearms in violation of 18 U.S.C. § 922(g)(1).
According to the indictment, statements made in court, and other public records in the case, the government received information in June 2015 that Ruhland was in possession of multiple firearms at his home in Somersworth, New Hampshire. Ruhland is prohibited from possessing firearms under federal law as a result of a prior felony conviction. Following the issuance of a court-ordered search warrant for Ruhland’s residence, law enforcement recovered: (1) a Sig Sauer, Model P250, 9 millimeter pistol, loaded with 10 rounds of 9 millimeter ammunition; (2) a High Standard, Model Double-Nine, .22 caliber revolver, loaded with 9 rounds of .22 caliber ammunition; (3) a Cobra Enterprises, Model C22LR, .22 caliber Derringer pistol; (4) a Haskell (Hi-Point), Model JHP, .45 caliber Pistol; and approximately 45 rounds of assorted additional ammunition. A federal indictment charging Ruhland with illegal possession of the firearms was returned by a grand jury sitting in Concord on October 7, 2015.
Ruhland’s plea agreement includes a binding stipulated sentence of 30 months’ incarceration. A sentencing hearing has been scheduled for August 1, 2016, in front of U.S. District Judge Landya McCafferty. At that time, the Court will decide whether to accept the plea agreement and impose the agreed-upon period of incarceration, as well as any other conditions of Ruhland’s sentence.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives with assistance from the Somersworth Police Department and is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Six Individuals Face Charges Related to Opioid OverdosesRead the Press Release
CINCINNATI – A federal grand jury has charged three Cincinnati residents with distributing heroin and/or fentanyl that resulted in the overdose deaths of at least three individuals. Three other individuals were charged with distributing heroin and/or fentanyl that caused serious physical harm, including non-fatal overdoses.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Timothy Plancon, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Cincinnati Police Chief Eliot Isaac, Hamilton County Sheriff Jim Neil, Hamilton County Coroner Dr. Lakshmi Sammarco and other members of the Hamilton County Heroin Coalition announced the indictments.
“Heroin and, increasingly, fentanyl are literally killing people in our community,” Acting U.S. Attorney Glassman said. “We are committed to using every tool at our disposal, including federal resulting-in-death charges where appropriate, to combat this epidemic.”
The indictments allege that John Wade, 45, Jerome Gray, 33, and Rasheena Jones, 20, each distributed drugs containing a mix of heroin and fentanyl that resulted in the overdose deaths of its users.
Wade is charged with one count of distribution resulting in an overdose death, two counts of distributing heroin and one count of possession of a firearm in furtherance of a drug trafficking offense. Gray is charged with one count of distribution resulting in an overdose death and two counts of distributing heroin. Jones is charged with one count of distribution resulting in an overdose death and one count of distributing heroin.
Also charged with allegedly distributing heroin is: Shana Gadomski, 30, and Erik Grider, 26, who were each charged with one count of distributing a controlled substance containing heroin. Both Gadomski and Grider have pleaded guilty to the charge, and Gadomski has been sentenced to 18 months in prison.
Jason Stover, 30, was charged and pleaded guilty to maintaining a property for the purpose of distributing a controlled substance. He faces a potential maximum sentence of 20 years in prison.
Distribution of a controlled substance containing heroin carries a potential maximum sentence of 20 years in prison. If that distribution results in death it can be punishable by up to life in prison.
Acting U.S. Attorney Glassman commended the investigation of this case by the Hamilton County Heroin Coalition, and Assistant United States Attorney Timothy D. Oakley, who is prosecuting the cases.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Six Charged in Four Overdose Death InvestigationsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that six men were arrested this week on various federal heroin charges. The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to a criminal complaint charging JONATHAN FISHER, 35, of Norwich, on April 9, 2016, Norwich Police responded to a medical emergency at FISHER’s residence. The emergency involved an 18-year-old male who had died from an apparent heroin overdose. FISHER was not present at the time law enforcement had arrived. A search of the victim’s wallet revealed one used glassine baggy and 10 unopened baggies marked with a particular brand stamp. A field test of the substance in the baggies yielded a positive presence for both heroin and fentanyl.
Approximately one month prior to the overdose death, FISHER was arrested by Norwich Police after he was found in possession of numerous baggies of heroin that were marked with the same stamp.
On April 12, 2016, Norwich Police arrested FISHER at a Norwich hotel. A search of FISHER’s wallet contained two glassine baggies containing suspected heroin and marked with the same brand stamp. A search of the hotel room where FISHER had been staying revealed more than 300 bags of heroin, prescription narcotics, more than one pound of marijuana, a digital scale and hundreds of empty glassine bags marked with the same stamp.
FISHER was charged by federal complaint on April 20 and is detained.
According to a criminal complaint charging JORGE MORALES, also known as “Capone,” 29, of Shelton, on April 15, 2016, a 21-year-old female was found unresponsive at her Bridgeport residence and was transported to the hospital. The victim has since been removed from life support and died.
Bridgeport Police recovered two baggies of suspected heroin packaged in glassine baggies from the bed next to where the victim was located. The baggies were marked with a particular brand stamp. A cellular telephone seized from the victim revealed numerous calls and text messages between the victim and MORALES in the days leading up the victim’s overdose. In addition, on April 15, 2016, law enforcement conducted a controlled purchase of heroin, marked with the same brand stamp, from MORALES.
MORALES was charged by federal complaint on April 20 and is detained.
According to a criminal complaint charging TIMOTHY PAPROCKI, 33, of Ledyard and RUDY HERNANDEZ, 43, of New London, on April 12, 2016, Groton Town Police responded to a report of a medical emergency involving a 25-year-old male. The victim, who had used heroin and/or fentanyl, was transported to the hospital where he was pronounced deceased. The investigation, which has included witness interviews and the review of cellphone records and text messages, revealed that the victim arranged to purchase heroin from PAPROCKI. PAPROCKI then purchased heroin from HERNANDEZ and distributed it to the victim.
On April 14, 2016, New London Police and other law enforcement conducted a search of HERNANDEZ’s residence and seized heroin, cocaine and multiple cellular telephones.
PAPROCKI and HERNANDEZ were charged by federal complaint on April 20 and are detained.
According to a criminal complaint charging DANIEL GAMERO, 23, of Hartford, and CHARLIE TACURI, 19, of Hartford, since February 2016, Hartford Police have been investigating the distribution of heroin marked with a particular brand stamp. During the course of the investigation, there have been at least two overdose deaths to which heroin marked with the stamp has been linked, one in Vernon on February 1 and one in Granby on March 22. Between February and April 2016, law enforcement conducted four controlled purchases of heroin mark with the same stamp from GAMERO and TACURI.
GAMERO and TACURI were arrested on April 21. On that date, a search of GAMERO’s Preston Street residence revealed hundreds of bags of heroin, marijuana and a firearm. GAMERO and TACURI are detained.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
These investigations are being conducted by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, Bridgeport High Intensity Drug Trafficking Area Task Force (“HIDTA Task Force”) and Hartford Task Force; the Statewide Narcotics Task Force, the Regional Community Enhancement Task Force, the U.S. Marshals Service and the Norwich, Bridgeport, Monroe, Groton Town, New London and Hartford Police Departments. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon and Wilton Police Departments. The HIDTA Task Force includes participants from the Connecticut State Police and the Norwalk, Stamford, Stratford, Milford, Bridgeport and Trumbull Police Departments. The Hartford Task Force includes participants from the Bristol, East Hartford, Hartford, Manchester, New Britain, Wethersfield and Willimantic Police Departments.
These cases are being prosecuted by Assistant U.S. Attorneys Robert Spector, Avi Perry, Douglas Morabito and Gordon Hall.
Re-entry Business Summit at CCAC Encourages Employers to Hire Returning CitizensRead the Press Release
PITTSBURGH –A National Institute of Justice survey revealed that between 60 and 75 percent of ex-offenders are jobless up to a year after release yet many employers can’t find qualified employees to fill their jobs. (http://www.nij.gov/topics/corrections/reentry/pages/employment.aspx)
In light of this information a cluster of community organizations formed the Allegheny County Anchored Re-Entry Consortium (ACAR), which today is hosting an educational program for employers entitled Business Leaders’ Summit: Reentrants Work! at Community College of Allegheny County – Allegheny Campus. The Summit is designed to provide employers with valuable information they need to consider hiring formerly incarcerated individuals, also known as returning citizens or reentrants. Specifically, the Reentrants Work! Summit is designed to share best practices from leading employers along with a “How to Guide”; discuss the business case for hiring reentrants; and detail the cost-benefit analysis and tax credits for hiring reentrants. Nearly 200 business leaders, elected officials and heads of nonprofits were invited to attend.
U.S. Attorney David J. Hickton, Allegheny County Executive Rich Fitzgerald, CCAC President Dr. Quintin B. Bullock and Michael J. Smith, President and CEO Goodwill of Southwestern Pennsylvania welcomed participants. Ron Painter, President of the National Association of Workforce Investment Boards, provided the keynote address. Two 30-minute panels followed: the first - “Making the Business Case for Hiring Re-entrants” featured corrections and public policy officials and a second panel - “Models of Best Practice” – featured employers and reentrants. Pittsburgh Mayor William Peduto and CCAC President Bullock provided closing remarks.
“We are committed to preparing those who have paid their debt to society for substantive opportunities beyond the prison gates and addressing obstacles to successful reentry that too many returning citizens encounter,” stated U.S. Attorney Hickton. “Supporting successful reentry is an essential part of our mission to promote public safety – because by helping individuals return to productive, law-abiding lives, we can reduce crime and make our neighborhoods better places to live.”
“In the county, we spend a great deal of time, effort and money providing those who are in the criminal justice system with the tools and resources they need to turn their lives around, but that effort is for naught if there are not organizations willing to look past their records to the individual they are and the skills and talents that they bring to the table,” said County Executive Fitzgerald. “We are trying to lead by example, which is why the county enacted a ‘Ban the Box’ policy last year. When permissible, we look at job applicants on a case by case basis with any criminal record just one piece of the overall process. This is an important conversation to have, and we’re proud to be part of it with our corporate partners.”
“CCAC is pleased to support the efforts of the Allegheny County Anchored Re-Entry Consortium and to host the ACAR Business Leaders’ Summit. With our shared commitment to providing innovative programming designed to transform lives, we look forward to our continued collaboration and to the positive outcomes that are sure to result for the individuals who are being reintegrated into their communities, as well as for the employers and for the region as a whole,” said CCAC President Bullock.
Pennsylvania Department of Corrections Secretary John Wetzel added, “Every American benefits when an individual who was incarcerated re-enters society and becomes a good citizen. Meaningful employment is a critical component in achieving that objective.”
Mayor Peduto said, “Ex-offenders are our returning Americans that deserve a second chance like anyone else. We are missing out on a huge potential source of our workforce if we aren't considering them in our hiring decisions.”
The ACAR began as an initiative led by CCAC to establish credit and non-credit programs for reentrants. The ACAR has since evolved into a consortium of members from local government, community service agencies, faith-based organizations, corrections, the justice system, training and education institutions partnering to reduce recidivism through training, educational and employment opportunities.
Pittsburgh Man Pleads Guilty to Contempt of Court ChargeRead the Press Release
PITTSBURGH -A Squirrel Hill resident pleaded guilty in federal court to a charge of contempt of court, United States Attorney David J. Hickton announced today.
Dov Ratchkauskas, 49, of Pittsburgh, Pa., pleaded guilty yesterday to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Ratchkauskas is a defendant in a mortgage fraud case, and in 2011 the Court released him on conditions of bond that limited his travel to the Western District of Pennsylvania, required him to turn in his passport, and prohibited him from obtaining a new passport. Shortly after his arraignment, the defendant sought permission of the Court to travel to Hawaii, but the Court denied the motion. After a Superseding Indictment and numerous continuances, the defendant agreed to plead guilty, and, on Feb. 20, 2015, the Court scheduled the change of plea hearing for Feb. 24, 2015. On Feb. 20, 2015, Ratchkauskas, while in Florida without the permission of the Court, applied for a U.S. passport on an expedited basis. Later investigation revealed that he had traveled back and forth from Florida several times between December 2014 and February 2015. He did not have permission to travel to Florida or anywhere else outside of the Western District of Pennsylvania. While on bond, the defendant also obtained an Israeli passport without the permission of the Court. Ratchkauskas is a citizen of both the United States and Israel, and he has bank accounts in Israel. Interviews of associates indicated that the defendant intended to flee the United States to Israel, but the defendant was arrested before he could flee. The defendant, however, while admitting to willfully violating the conditions of bond, denies that he intended to flee the Country.
Judge Fischer scheduled sentencing for Aug. 25, 2016. The law provides for a total sentence of life in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The United States Secret Service and the Criminal Investigation Division of the Internal Revenue Service conducted the investigation that led to the prosecution of Ratchkauskas.
Pair Sentenced for Making False Statements in Regards to Healthcare ProgramsRead the Press Release
HARRISONBURG, VIRGINIA – A pair of Winchester residents, who previously pled guilty to submitting false timesheets for payment to Virginia Medicaid, were sentenced yesterday in the United States District Court for the Western District of Virginia in Harrisonburg, United States Attorney John P. Fishwick Jr. and Virginia Attorney General Mark R. Herring announced today.
Kevin Lavelt Freeman, 51, and Cassie Lee Davis, 48, both of Winchester, Virginia, previously pled guilty to federal charges related to making false statements as they relate to a healthcare program.
Freeman previously pled guilty to one count of making false statements in connection with a healthcare program and one count of making false statements in connection to a healthcare benefits program. Yesterday in District Court, he was sentenced to 18 months of federal incarceration and two years of supervised release thereafter. In addition, Freeman was also ordered to pay $28,176 in restitution to the Department of Medical Assistance Services.
Davis previously pled guilty to one count of making false statements related to a healthcare matter and one count of healthcare fraud. Yesterday in District Court, she was sentenced to time served, five days, and ordered to pay restitution in the amount of $28,176 to the Department of Medical Assistance Services.
“We are proud to work alongside the Medicaid Fraud Control Unit of the Virginia Attorney General’s Office on these very important prosecutions,” United States Attorney John P. Fishwick Jr. said today. “Protecting the integrity of important social programs such as Medicaid and Medicare is of the utmost importance to law enforcement.”
“The great relationship between our Medicaid Fraud Control Unit, the U.S. Attorney’s Office, the Department of Medical Assistance Services, and our law enforcement partners is critical to holding providers accountable for fraud that weakens important healthcare programs and does a real disservice to the vulnerable patients who rely on them,” said Virginia Attorney General Mark R. Herring.
According to evidence presented at previous hearings by Assistant United States Attorney Grayson Hoffman and Assistant Attorney General and Special Assistant United States Attorney Vaso Doubles, Davis and Freeman, from July 2012 to August 2012, conspired to defraud the special caregiver program covered under Virginia Medicaid. During this time period Freeman was incarcerated. Davis, however, submitted, on at least two occasions, timesheets for payment to the Virginia Medicaid program for services that were never rendered by Freeman. In addition, Davis also falsified bills by making materially false statements or representations about the services Freeman provided her during the time he was incarcerated.
Davis and Freeman communicated by telephone about their fraud during Freeman’s incarceration. These telephone calls were recorded and a number of the calls included discussions between Davis and Freeman regarding the manner in which they were defrauding the Virginia Medicaid Program.
The investigation of the case was conducted by the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit, the Federal Bureau of Investigation and the United States Department of Health and Human Services Office of the Inspector General. Assistant United States Attorney Grayson Hoffman and Assistant Attorney General and Special Assistant United States Attorney Vaso Doubles prosecuted the case for the United States.
North Canton man charged with conspiracy to commit wire fraud and bankruptcy fraudRead the Press Release
A two-count criminal information was filed against James W. Wallace, of North Canton, charging him with conspiracy to commit wire fraud and bankruptcy fraud, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio,and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.
Aged Shelf Corporation Scheme
The information alleges that Wallace, and Joseph Beck of Allentown, Pennsylvania, acting together and with others, from approximately January 2009 through December 2012, engaged in a scheme to defraud at least fifteen small business owners of at least $1,500,000 through an investment and loan scam. Wallace and Beck, acting through their companies Wallace Financial and Washington Integrity, fraudulently induced individuals to purchase “aged shelf corporations,” which served no legitimate business purpose other than to funnel money back to Wallace and Beck for their personal use. Wallace and Beck told potential buyers, who were individuals who often could not get funding from traditional financial institutions, that they could get them loans substantially greater than any available to them from commercial institutions through the purchase of an “aged shelf corporation” through Wallace Financial and Washington Integrity.
“Aged shelf corporations” were corporations that had been created some years before, but had never engaged in any business and were corporations on paper only. Wallace and Beck allegedly induced the would-be borrowers to believe that with the purchase of these previously created but dormant corporations they would qualify for private loans, credit cards with high credit limits, and other credit opportunities in amounts greater than were otherwise available to them from financial institutions. It is further alleged that Wallace and Beck misinformed buyers by telling them that they had “private lenders” waiting to lend money to the owners of these “aged shelf corporations” when they knew that no such private lenders existed. Wallace and Beck allegedly also falsely told would-be borrowers that other individuals had successfully obtained funding, but shrouded the details of their prior “successes” as well as the identities of their “private lenders” under a veil of mystery, citing proprietary and trade secrets, when no customers in fact received any private funding.
The information further alleges that Wallace and Beck fraudulently misrepresented that the money that customers paid to Wallace Financial and Washington Integrity for aged shelf corporations was used to obtain trade references, gain high PAYDEX scores (credit scores for corporations), and effect private placement of the loans. Wallace and Beck falsely told customers that their profit in the transaction would come later, after loans had been funded, from a percentage of the loans they succeeded in acquiring. Meanwhile, Wallace and Beck allegedly used a substantial share of the money to pay for personal expenses including strip clubs, jewelry, tattoo salons, meals at restaurants and bars, vacations and resort hotels, testosterone supplements, luxury products, sports equipment, tanning salons, payments on personal loans and mortgages, cash withdrawals, and transfers to personal accounts.
Bankruptcy Fraud
The information also alleges that, after agents with the FBI executed a search warrant on Beck’s residence and offices in Pennsylvania, and after former Wallace Financial and Washington Integrity customers filed civil lawsuits against Wallace, that he filed a false bankruptcy petition, under penalty of perjury, in the Northern District of Ohio. It is alleged that in the bankruptcy petition, titled In re: James Wallace, Case No. 12-61185, Wallace falsely withheld information regarding: his involvement with Beck and Washington Integrity; the number and amounts of creditors and debts owed by Wallace and his companies; bank accounts he possessed; his interests in executory contracts in the forms of the aged shelf corporation agreements he held with customers of Wallace Financial and Washington Integrity; and by falsely claiming a negative gross income for the two years preceding his bankruptcy filing.
If convicted, the defendant’s sentence will be determined by the Court after review of the factors unique to this case, including the defendant’s prior criminal record, his role in the offense and the characteristics of the criminal conduct. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Om Kakani, following an investigation by the Federal Bureau of Investigation.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove the defendant guilty beyond a reasonable doubt.
New Orleans Woman Pleads Guilty to Social Security FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MYRNA SHILOH, 56, of New Orleans, pled guilty yesterday to theft of public money.
According to the court documents, SHILOH lived with Individual “A”. Individual “A” was receiving Social Security Benefits until she died on May 16, 1998. After she passed away, checks continued to be sent from the Social Security Administration to Individual “A’s” address in New Orleans. From February 3, 1999 to March 3, 2015, SHILOH cashed the checks totaling $152,179.60.
In addition, SHILOH forged the name of Individual “A” on the check, deposited the forged checks into her account, and changed her address after Hurricane Katrina in order to keep getting the checks.
SHILOH faces a possible maximum sentence of ten years in prison and/or a fine of $250,000 and up to three years of supervised release. SHILOH will be ordered to pay restitution to the Social Security Administration. U.S. District Judge Lance M. Africk set sentencing for July 21, 2016.
U.S. Attorney Polite praised the work of the United States Secret Service, Office of Inspector General in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.
New Brighton Man Sentenced to Probation with Home Detention for Gun OffenseRead the Press Release
PITTSBURGH – A resident of Beaver County, Pennsylvania, has been sentenced in federal court to 60 months probation, with the first four months to be served on home detention with electronic monitoring, on his conviction of possession of a stolen firearm. In addition, Nolder, Jr. will pay $15,421.23 in restitution, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence yesterday on Daniel Thomas Nolder, Jr., 26, of New Brighton, Pennsylvania.
According to information presented to the court, from in and around Aug. 1, 2014, through Dec. 15, 2014, Nolder Jr., aided and abetted Timothy Brown, Jr., who possessed, bartered, and disposed of 53 stolen firearms. Federal law prohibits individuals from possessing, bartering, and disposing of stolen firearms.
This case involved the theft of firearms from a licensed gun store which were ultimately traded for heroin.
Assistant United States Attorney Cindy K. Chung prosecuted this case on behalf of the government.
U.S. Attorney David Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Rochester Police Department, Aliquippa Police Department, Pittsburgh Bureau of Police, and, Pennsylvania State Police – Beaver Barracks, for conducting the investigation leading to the successful prosecution of Nolder, Jr.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crimes.
Nevada Business Owner and Bookkeeper Plead Guilty to Federal Employment Tax CrimesRead the Press Release
The owner of several Reno, Nevada landscaping and rock hauling businesses pleaded guilty in federal court today to one count of failure to file over employment taxes, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Daniel G. Bogden of the District of Nevada. The bookkeeper for the businesses pleaded guilty to one count of willful failure to file taxes.
According to court documents, Kyle Archie, 44, of Reno, was the part owner of Reno Rock Inc., GKPA Inc. and D Rockeries Inc. during the years 2001 through 2010. As part of his plea, Kyle Archie admitted that he was responsible for the day-to-day operations of the businesses and therefore had a legal duty to collect, truthfully account for and pay over to the Internal Revenue Service (IRS) federal income taxes and Federal Insurance Contribution Act taxes that were withheld from the wages of the businesses’ employees during the years 2003 through 2009. Kyle Archie further admitted that although he collected these taxes from his employees’ wages and held them in trust, he failed to pay over the employment taxes to the IRS for the third quarter of 2008.
Linda Archie, 67, of Reno, who is Kyle Archie’s mother, worked as the bookkeeper for Reno Rock Inc., GKPA Inc. and D. Rockeries Inc. during the years 2001 through 2010. In that capacity, she was responsible for maintaining the books and records of the companies and filing documents with various government agencies. In her plea agreement, Linda Archie admitted that between 2003 and 2009 she failed to file Employer’s Quarterly Federal Tax Returns (Forms 941) on behalf of these businesses to account for the taxes that were withheld from the employees’ wages.
U.S. District Judge Miranda M. Du of the District of Nevada set sentencing for Aug. 15. Kyle Archie faces a statutory maximum sentence of five years in prison and a $250,000 fine. Linda Archie faces a statutory maximum sentence of one year in prison and a $100,000 fine. Both defendants have also agreed to pay restitution to the IRS. In the plea agreement, the government asserts that the tax loss is $1,242,260. The defendants have admitted that their actions caused a loss to the IRS of at least $545,000.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Bogden commended special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Carla B. Higginbotham of the District of Nevada and Trial Attorney Kathleen M. Barry of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
National Prescription Drug Take Back Day, April 30, 2016Read the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), together with Drug Enforcement Administration (DEA) Resident Agent in Charge Michael Puralewski, announced that the next National Prescription Drug Take Back Day will be on Saturday, April 30, 2016, from 10:00 AM to 2:00 PM.
The following sites have been designated to receive unused prescription drugs:
- Naval Base Guam (Navy Exchange Food Court)
- Agana Shopping Center (Across Vitamin World)
- Agat Village Mayor's Office
- Andersen Air Force Base (Exchange & Commissary)
- Dededo Village Mayor’s Office
- Rota Health Center
- Saipan Commonwealth Health Center
- Tinian Health Center
We would like to remind the public that:
- Unused or expired prescription medications are a public safety issue, leading to accidental poisoning, overdose, and abuse.
- Pharmaceutical drugs can be just as dangerous as street drugs when taken without a prescription or a doctor’s supervision.
- The non-medical use of prescription drugs ranks second only to marijuana as the most common form of drug abuse in America.
- The majority of teenagers abusing prescription drugs get them from family and friends – and the home medicine cabinet.
- Unused prescription drugs thrown in the trash can be retrieved and abused or illegally sold. Unused drugs that are flushed contaminate the water supply. Proper disposal of unused drugs saves lives and protects the environment.
- Take-back programs are the best way to dispose of old drugs.
The first National Prescription Drug Take-Back Day event was held nationwide in September 2010. Guam and the NMI have participated every year since. The purpose of the National Drug Take-Back Initiative is to help prevent increased pill abuse and theft, to encourage the public to rid their household of unused prescription drugs that pose a safety hazard and can contribute to prescription drug abuse, and to provide a venue for persons who want to dispose of unwanted and unused prescription drugs for safe disposal by DEA.
For more information on prescription drug abuse, go to: www.dea.gov, www.getsmartaboutdrugs.com, or www.justthinktwice.com.
Mexican National Sentenced to Lengthy Prison Term for Trafficking Large Quantities of Crystal MethamphetamineRead the Press Release
ASHEVILLE, N.C. – Santiago Sanchez, 39, of Mexico, was sentenced today to 210 months in prison followed by five years of supervised release for trafficking large quantities of crystal methamphetamine, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Sanchez pleaded guilty in December 2015 to one count of possession with intent to distribute methamphetamine.
U.S. Attorney Rose is joined by Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Janie Sutton, Acting Director of the North Carolina State Bureau of Investigation; Sheriff Charles S. McDonald of the Henderson County Sheriff’s Office; Sheriff Donald J. Hill of the Polk County Sheriff’s Office; Sheriff Dudley Greene of the McDowell County Sheriff’s Office; Chief Allen Lawrence of the Marion Police Department; and Chief Tammy Hooper of the Asheville Police Department.
“Through the homemade meth production operation Sanchez devised and ran, he was able to produce and sell large quantities of crystal meth. Sanchez even involved his own children in his illegal activities using them to translate to further his drug manufacture and distribution. Sanchez illegally entered our country and began to poison our citizens through distribution of this illegal and devastating drug,” said U.S. Attorney Rose. “We now welcome him to the confines of the United States Bureau of Prisons where he will serve a lengthy and well-deserved sentence.”
Special Agent in Charge Salter stated, “All participating agencies played a crucial role in the eradication of this criminal network. Sanchez’s methamphetamine trafficking activities posed a significant threat to the quality of life in Buncombe, Henderson, Polk Counties and surrounding areas. The removal of this dangerous individual makes these communities safer today. I want to thank our federal, state and local law enforcement counterparts and the United States Attorney’s Office, who had a direct impact in making this investigation a success.”
According to filed court documents and statements made in court, from at least March 2015 to May 2015, Sanchez was responsible for trafficking large amounts of crystal methamphetamine in Buncombe, Henderson and Polk Counties and elsewhere. Over the course of the investigation, law enforcement observed Sanchez conducting numerous drug transactions, at times using his minor children as translators on the phone or even handing him the container with the narcotics. Law enforcement executed a search warrant at Sanchez’s residence and an adjacent outbuilding located in Polk County and seized more than a pound of crystal methamphetamine, an Igloo thermos containing 1,680.9 grams of liquid methamphetamine, a burner, a pot with a lid, cutting agents and other drug paraphernalia used by Sanchez to convert the liquid methamphetamine into crystal methamphetamine. Law enforcement also seized from the residence several firearms, ammunition and $3,200 in cash.
Sanchez is in federal custody and will be transferred to custody of the Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole. In addition to the imposed sentence, U.S. District Judge Martin Reidinger ordered the defendant be deported to Mexico upon completion of his prison term.
In making today’s announcement, U.S. Attorney Rose noted that multiple agencies worked together to bring this prolific crystal methamphetamine trafficker to justice and thanked the DEA, the SBI, the Henderson County Sheriff’s Office, the Polk County’s Sheriff’s Office, the McDowell County Sheriff’s Office, the Marion Police Department and the Asheville Police Department for investigating this case.
Assistant United States Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville handled the prosecution.
Louisiana Company to Pay over $700,000 in Penalties and Costs to Settle U.S. and Louisiana Claims for Atchafalaya River Basin Oil Spills and Violations of Spill Prevention RulesRead the Press Release
In the most recent federal-state coordinated enforcement efforts against oil spills in and around the Gulf of Mexico, ORB Exploration LLC (ORB) has agreed to pay civil penalties and state response costs and to implement corrective measures to resolve alleged violations of the Clean Water Act and state environmental laws stemming from three crude oil spills that occurred in 2013 and 2015 from two of ORB’s Louisiana facilities at Frog Lake and Crocodile Bayou – both located in the Atchafalaya River Basin – as well as violations of Spill Prevention, Control and Countermeasure (SPCC) regulations at ORB’s Frog Lake oil storage barge, announced the Department of Justice, U.S. Coast Guard (USCG) and the Environmental Protection Agency (EPA).
Under a consent decree lodged today in federal court, ORB will pay $615,000 in federal civil penalties for the spills and other Clean Water Act violations, pay the Louisiana Department of Environmental Quality (LDEQ) $100,000 for civil penalties and response costs and carry out injunctive relief measures to improve spill response preparedness and prevent future oil spills.
“This settlement holds ORB accountable for the harms to the environment caused by its oil spills into threatened, sensitive natural areas and requires the company to take important corrective measures including improving its environmental compliance and preventing future spills from its oil production facilities,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “I am grateful for the close relationship with our federal and state partners that brought such a successful resolution to this case”
“Discharges of oil into the navigable waters of the United States are an ongoing concern as they pose an obvious and serious risk to the marine environment,” said Rear Admiral Dave Callahan, Eighth Coast Guard District Commander. “This enforcement action emphasizes our dedication to protecting our natural resources and preventing future pollution from these facilities.”
“Louisiana’s wetlands are vital to the state’s economy, communities and ecology, providing protection from storm surges and habitat for wildlife,” said Regional Administrator Ron Curry for EPA. “Companies must be held accountable when their actions threaten these important natural resources.”
“This joint action shows that LDEQ is committed to pursuing anyone who does something to harm our state’s environment,” said Dr. Chuck Carr Brown, LDEQ Secretary. “Our mission is to protect human health and the environment and those two things are too precious to risk by allowing unscrupulous operators to flout environmental laws in the name of profit.”
As part of a joint action filed with LDEQ, the complaint alleges that ORB spilled over 1,000 barrels of Louisiana crude oil into the Atchafalaya River Basin during the three spills. The largest occurred at Frog Lake in 2013, after a corroded oil transfer pipeline ruptured in a flooded wetland area. The cleanup took over a year and a half and required significant state-federal cooperation. The other two releases occurred in September and October of 2015, from ORB’s Frog Lake and Crocodile Bayou oil production facilities into bayou waters surrounding the facilities.
In the complaint, the United States asserts penalty and injunctive relief claims for the spills. It also alleges Clean Water Act violations for ORB’s failure to comply with a USCG order addressing the 2013 cleanup. The SPCC violations were discovered during a 2015 EPA inspection of ORB’s Frog Lake oil production barge. For its part, LDEQ asserts state-law claims for civil penalties for the discharges, failure to file a timely report and failure to provide updated notice to the state hotline and for reimbursement of LDEQ’s response costs.
The corrective measures ORB is required to take include improving secondary containment capability at the Frog Lake facility, increasing the frequency of facility inspections and monitoring for oil spills, providing additional advance notice to the USCG before any future oil transfer operation and installation of accurate gauges on production and transfer equipment to allow for and improve accountability and spill detection capabilities.
The Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the navigable waters of the United States or adjoining shorelines in quantities that may be harmful to the environment or public health. EPA’s SPCC regulations establish procedures, methods and equipment requirements and also require facilities to develop and implement SPCC Plans toward the goal of preventing oil from reaching navigable waters and adjoining shorelines. The penalty paid to the United States will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Funds Center. Those funds will be available to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances to waters of the United States or adjoining shorelines.
The proposed consent decree, lodged in the Middle District of Louisiana, is subject to a public comment requirements and court review and approval. A copy of the consent decree is available on the Department of Justice website at https://www.justice.gov/enrd/consent-decrees.
Los Lunas Man Sentenced to 60 Months for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – James Sparks, 38, of Los Lunas, N.M., was sentenced today in federal court in Albuquerque, N.M., for his methamphetamine trafficking conviction. Sparks was sentenced to 60 months in federal prison followed by a four-year term of supervised release.
Sparks was charged in an indictment filed on Nov. 5, 2015, with possession of methamphetamine with intent to distribute on June 16, 2014, in Valencia County, N.M. He was arrested on Nov. 10, 2015, after he was transferred to federal custody from state custody where he was being held on related state charges which were later dismissed in favor of federal prosecution.
On Jan. 22, 2016, Sparks pled guilty to the indictment. In entering his guilty plea, Sparks admitted that on June 16, 2014, Valencia County Sheriff’s deputies stopped him for speeding on his motorcycle. He attempted to run from deputies when they discovered that Sparks was in possession of more than five grams of methamphetamine and drug paraphernalia, but was eventually apprehended and arrested by the deputies.
This case was investigated by the Albuquerque office of the DEA and the Valencia County Sheriff’s Office with assistance from the 13th Judicial District Attorney’s Office.
Assistant U.S. Attorney Rumaldo R. Armijo prosecuted the case as part of the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Valencia County, under this initiative.
Last Week of April Designated as 2016 National Reentry WeekRead the Press Release
KNOXVILLE, Tenn. – The Department of Justice has designated April 24-30, 2016, as National Reentry Week, to focus on ex-offenders reentering communities post-incarceration. U.S. Attorney General Loretta Lynch supports the position that the successful reentry of ex-offenders is an essential component of the department’s mission to promote public safety because crime can be reduced and neighborhoods made better places to live by helping individuals lead productive law abiding lives after they have paid their debt to society through incarceration.
The U.S. Attorney's Office for the Eastern District of Tennessee will participate in several reentry events throughout the district during National Reentry Week. On Monday, April 25, 2016, Tuesday, April 26, 2016, and Thursday, April 28, 2016, the U.S. Attorney's Office, U.S. Probation Office, and other partners will host call-in meetings in Chattanooga, Knoxville and Johnson City, where ex-offenders meet with various community service providers to seek assistance in making a positive and law abiding transition into their community.
National Reentry Week is one part of a much larger effort known as the Smart on Crime Initiative. This initiative includes a concerted effort by law enforcement and community partners to be both smart and tough on crime. The initiative has three major components that include crime prevention, rigorous prosecution of the most serious and violent criminals, and the successful reentry of ex-offenders. Acting U.S. Attorney Nancy Harr implemented an ongoing Smart on Crime program for the district in January 2016. This program is overseen by Assistant U.S. Attorney Brooklyn Sawyers in the Knoxville headquarters office.
For more information on National Reentry Week, please see: https://www.justice.gov/opa/blog/national-reentry-week. For more information on Smart on Crime, including reentry, go to: https://www.justice.gov/sites/default/files/ag/legacy/2013/08/12/smart-on-crime.pdf.
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Justice Department Releases Investigative Findings on University of New Mexico’s Response to Sexual Assault AllegationsRead the Press Release
ALBUQUERQUE – The Justice Department today announced that according to its comprehensive investigation, the University of New Mexico’s (UNM) handling of reports by students of sexual harassment – including sexual assault – fail to comply with federal law. The Justice Department delivered a letter setting forth these findings to President Robert G. Frank of UNM this morning.
The investigation was launched on Dec. 5, 2014, in response to complaints from multiple students alleging that UNM did not adequately respond to their reports of sexual assault. It was conducted under Title IV of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972, both of which prohibit sex discrimination in education programs. The investigation examined UNM’s policies and practices for preventing sexual assault and sexual harassment, as well as for investigating and responding to student complaints of sexual assault, sexual harassment and retaliation.
The investigation found that although UNM had strengthened its response to sexual harassment and sexual assault over the past year, it remains out of compliance with Title IX and Title IV in key respects. The department specifically found that students, faculty and staff lacked basic understanding about reporting options, duties and obligations, as well as where to turn for help. The investigation also found significant gaps in UNM’s procedures, training and practices for investigating and resolving allegations of sexual assault and harassment, resulting in a grievance process that complainants and respondents alike described as confusing, distressing and rife with delays. More generally, in focus groups and interviews, many UNM students expressed reluctance to report sexual assault to UNM because they lacked confidence in the school’s response.
The department also found that students who have experienced harassment and assault have difficulty accessing services and supports. Without appropriate supports in place, some of these students experienced severe and lasting educational impacts, including suspending their academic coursework, dropping out of extracurricular activities, losing scholarships and even withdrawing from UNM.
The department found that UNM must take the following measures to fully comply with these laws:
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Provide comprehensive and effective training to all students, faculty and staff that gives notice of UNM’s prohibition on sexual harassment, including sexual assault; information about reporting options, duties and obligations; details on where to go for assistance; and information on grievance procedures and potential outcomes;
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Revise UNM’s policies, procedures and investigative practices to provide a grievance procedure that ensures prompt and equitable resolution of sexual harassment and sexual assault allegations;
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Adequately investigate or respond to all allegations by students who have alleged sexual assault or sexual harassment, including allegations of retaliation for reporting sexual assault or sexual harassment;
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Take prompt and effective steps to eliminate a hostile environment, prevent its reoccurrence and address its effects; and
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Ensure that the individuals designated to coordinate Title IX efforts receive adequate training and coordinate these efforts effectively.
“Our findings reveal how a flawed system for responding to sexual assault fails all those involved – from victims seeking adequate protection, to accused students demanding fair hearings, to faculty looking for clear instruction,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the department’s Civil Rights Division. “These failures diminish educational opportunities and threaten community confidence in the integrity and fairness of the university’s policies and practices. The Justice Department commends UNM officials for starting to implement key changes in a number of areas, and we look forward to working closely with them to expand and enhance these early steps of progress.”
“Campus sexual assault and sexual harassment are civil rights issues,” said U.S. Attorney Damon P. Martinez of the District of New Mexico. “They are primarily perpetrated against women and undermine their basic rights. When perpetuated against students, sexual assault and sexual harassment deny them the right to live and learn in a safe educational environment. Colleges and universities are obligated to stop and prevent sexual violence against their students and to respond effectively when they receive reports of sexual assault. We appreciate the university’s continuing efforts to address the serious deficiencies identified by our investigation so that we can improve the safety of women and other students and reduce barriers in education.”
UNM cooperated fully with the department’s investigation, and has committed to continue to cooperate with the department to timely resolve these findings under mutually agreeable terms that will provide accountability to the public and accomplish the remedial measures within a fixed period of time.
The investigation was conducted jointly by the Civil Rights Division’s Educational Opportunities Section and the U.S. Attorney’s Office of the District of New Mexico. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office of the District of New Mexico is available on its website at www.justice.gov/usao/nm.
The enforcement of Title IV and Title IX are top priorities of the Civil Rights Division. For more information about the administration’s efforts on prevention and response to sexual assault and sexual harassment on college and university campuses, please visit www.notalone.gov.
UNM Findings Letter
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Justice Department Releases Investigative Findings on University of New Mexico’s Response to Sexual Assault AllegationsRead the Press Release
The Justice Department today announced that according to its comprehensive investigation, the University of New Mexico’s (UNM) handling of reports by students of sexual harassment – including sexual assault – fail to comply with federal law. The Justice Department delivered a letter setting forth these findings to President Robert G. Frank of UNM this morning.
The investigation was launched on Dec. 5, 2014, in response to complaints from multiple students alleging that UNM did not adequately respond to their reports of sexual assault. It was conducted under Title IV of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972, both of which prohibit sex discrimination in education programs. The investigation examined UNM’s policies and practices for preventing sexual assault and sexual harassment, as well as for investigating and responding to student complaints of sexual assault, sexual harassment and retaliation.
The investigation found that although UNM had strengthened its response to sexual harassment and sexual assault over the past year, it remains out of compliance with Title IX and Title IV in key respects. The department specifically found that students, faculty and staff lacked basic understanding about reporting options, duties and obligations, as well as where to turn for help. The investigation also found significant gaps in UNM’s procedures, training and practices for investigating and resolving allegations of sexual assault and harassment, resulting in a grievance process that complainants and respondents alike described as confusing, distressing and rife with delays. More generally, in focus groups and interviews, many UNM students expressed reluctance to report sexual assault to UNM because they lacked confidence in the school’s response.
The department also found that students who have experienced harassment and assault have difficulty accessing services and supports. Without appropriate supports in place, some of these students experienced severe and lasting educational impacts, including suspending their academic coursework, dropping out of extracurricular activities, losing scholarships and even withdrawing from UNM.
The department found that UNM must take the following measures to fully comply with these laws:
- Provide comprehensive and effective training to all students, faculty and staff that gives notice of UNM’s prohibition on sexual harassment, including sexual assault; information about reporting options, duties and obligations; details on where to go for assistance; and information on grievance procedures and potential outcomes;
- Revise UNM’s policies, procedures and investigative practices to provide a grievance procedure that ensures prompt and equitable resolution of sexual harassment and sexual assault allegations;
- Adequately investigate or respond to all allegations by students who have alleged sexual assault or sexual harassment, including allegations of retaliation for reporting sexual assault or sexual harassment;
- Take prompt and effective steps to eliminate a hostile environment, prevent its reoccurrence and address its effects; and
- Ensure that the individuals designated to coordinate Title IX efforts receive adequate training and coordinate these efforts effectively.
“Our findings reveal how a flawed system for responding to sexual assault fails all those involved – from victims seeking adequate protection, to accused students demanding fair hearings, to faculty looking for clear instruction,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the department’s Civil Rights Division. “These failures diminish educational opportunities and threaten community confidence in the integrity and fairness of the university’s policies and practices. The Justice Department commends UNM officials for starting to implement key changes in a number of areas, and we look forward to working closely with them to expand and enhance these early steps of progress.”
“Campus sexual assault and sexual harassment are civil rights issues,” said U.S. Attorney Damon P. Martinez of the District of New Mexico. “They are primarily perpetrated against women and undermine their basic rights. When perpetuated against students, sexual assault and sexual harassment deny them the right to live and learn in a safe educational environment. Colleges and universities are obligated to stop and prevent sexual violence against their students and to respond effectively when they receive reports of sexual assault. We appreciate the university’s continuing efforts to address the serious deficiencies identified by our investigation so that we can improve the safety of women and other students and reduce barriers in education.”
UNM cooperated fully with the department’s investigation, and has committed to continue to cooperate with the department to timely resolve these findings under mutually agreeable terms that will provide accountability to the public and accomplish the remedial measures within a fixed period of time.
The investigation was conducted jointly by the Civil Rights Division’s Educational Opportunities Section and the U.S. Attorney’s Office of the District of New Mexico. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office of the District of New Mexico is available on its website at www.justice.gov/usao/nm.
The enforcement of Title IV and Title IX are top priorities of the Civil Rights Division. For more information about the administration’s efforts on prevention and response to sexual assault and sexual harassment on college and university campuses, please visit www.notalone.gov.
Jason Loera Pleads Guilty to Federal Receipt of Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Jason Loera, 47, a former political consultant and resident of Albuquerque, N.M., who currently resides in Los Angeles, Calif., pled guilty today in federal court in Albuquerque to receiving a visual depiction of a minor engaged in sexually explicit conduct. Loera entered his guilty plea under a plea agreement that permits him to appeal from a court order denying his motion to suppress evidence.
Loera was arrested in Los Angeles in June 2013 on an indictment filed in the U.S. District Court for the District of New Mexico. The indictment charged Loera with two counts of receiving child pornography and one count of possessing child pornography. According to the indictment, Loera committed these offenses in in Bernalillo County, N.M.
The indictment against Loera subsequently was superseded twice, most recently on March 8, 2016. The six-count second superseding indictment charged Loera with three counts of receiving child pornography and three counts of possessing child pornography. It alleged that Loera received child pornography on three occasions between March 31, 2010 and April 15, 2010, and that he possessed child pornography on a laptop computer and two CDs on Nov. 20, 2012, in Bernalillo County.
During today’s change of plea hearing, Loera entered a guilty plea to Count 3 of the second superseding indictment charging him with receiving child pornography on April 15, 2010. In his plea agreement, Loera admitted using his laptop computer to download from the internet an electronic file that he knew contained child pornography. The file contained 45 images of a prepubescent girl, many of which showed the girl engaged in sexually explicit conduct. Loera also admitted that when the FBI searched his residence on Nov. 20, 2012, he knowingly possessed child pornography on his laptop computer and two CDs. Loera admitted that he had more than 600 images of child pornography, some of which depicted violence.
Loera, who had been on conditions of release under pretrial supervision since June 2013, was ordered to surrender himself to the custody of the U.S. Marshals Service by June 1, 2016. Thereafter, he will remain in federal custody pending his sentencing hearing, which has yet to be scheduled. At sentencing, Loera faces a statutory mandatory minimum of five years and a maximum of 20 years in prison followed by a term of supervised release to be set by the court. Loera will be required to register as a sex offender after completing his prison sentence.
The case was investigated by the Albuquerque Division of the FBI and the New Mexico Regional Computer Forensic Laboratory. It is being prosecuted by Assistant U.S. Attorneys Dean S. Tuckman and Kristopher N. Houghton as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Lynch in Missoula on April 21, 2016 and entering pleas of Not Guilty were:
- CHRISTOPHER CONVERSE HARLING, of Missoula, appeared on charges of receipt of child pornography. If convicted of the charge contained in the indictment, HARLING faces 20 years in prison, $250,000 in fines, and lifetime supervised release. The case was investigated by the Internet Crimes Against Children Task Force, Montana Division of Criminal Investigation and Missoula Police Department. PACER Case Reference. 16-18
Appearing before U.S. Magistrate Johnston in Great Falls on April 19, 2016 and entering pleas of Not Guilty were:
- FX DRILLING COMPANY, of Shelby, appeared on charges of negligent discharge of oil into waters of the United States in a quantity that may be harmful. If convicted of the charge contained in the indictment, FX DRILLING COMPANY faces 5 years in prison, $500,000 in fines, and 1 year supervised release. The case was investigated by the Environmental Protection Agency. PACER Case Reference. 16-20
- ERIC J. MARTELL, a 44-year-old resident of Wolf Point, appeared on charges of obstruction of the mail. If convicted of the charge contained in the indictment, MARTELL faces 6 months in prison and $5,000 in fines. The case was investigated by the United States Postal Service Office of Inspector General. PACER Case Reference. 16-02
Appearing before U.S. Magistrate Johnston in Great Falls on April 13, 2016 and entering pleas of Not Guilty were:
- JACQUELINE MARIE KIRKALDIE, a 29-year-old resident of Harlem, appeared on charges of possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charge contained in the indictment, KIRKALDIE faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 16-32
Appearing before U.S. Magistrate Ostby in Billings on April 13, 2016 and entering pleas of Not Guilty were:
- DAVID LAWRENCE SCHEIN, a 59-year-old resident of Billings, appeared on charges of conspiracy to manufacture methamphetamine, possession with intent to distribute methamphetamine, and manufacturing methamphetamine. If convicted of the most serious charges contained in the indictment, SCHEIN faces 20 years in prison, $1,000,000 in fines, and 4 years supervised release. The case was investigated by the Bureau of Land Management. PACER Case Reference. 16-39
Appearing before U.S. Magistrate Ostby in Billings on April 12, 2016 and entering pleas of Not Guilty were:
- MATTHEW STONEY OLSON, a 37-year-old resident of Circle, appeared on charges of receipt of child pornography, and possession of child pornography. If convicted of the most serious charge contained in the indictment, OLSON faces 20 years in prison, $250,000 in fines, and lifetime supervised release. The case was investigated by the Homeland Security Investigations and Montana Division of Criminal Investigation. PACER Case Reference. 16-30
Appearing before U.S. Magistrate Johnston in Great Falls on April 11, 2016 and entering pleas of Not Guilty were:
- CLIFFORD AIMSBACK, a 21-year-old resident of Browning, appeared on charges of assault resulting in serious bodily injury and assault with a dangerous weapon. If convicted of the most serious charge contained in the indictment, AIMSBACK faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-33
- CHRISTIE MARIE FARMER, a 37-year-old resident of Browning, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, FARMER faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs, Drug Enforcement Administration and Federal Bureau of Investigation. PACER Case Reference. 16-28
- THOMAS BLACKFACE GRANT, a 67-year-old resident of Heart Butte, appeared on charges of aggravated sexual abuse. If convicted of the most serious charge contained in the indictment, GRANT faces life in prison, $250,000 in fines, and lifetime supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 16-34
- JOHN ALVIN HODSON, a 44-year-old resident of Browning, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, HODSON faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs, Drug Enforcement Administration and Federal Bureau of Investigation. PACER Case Reference. 16-25
- JOSIE MARIE MAFFITT, a 38-year-old resident of Great Falls, appeared on charges of possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, MAFFITT faces 40 years in prison, $5,000,000 in fines, and 4 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 16-31
- LAVONNIE JEAN MCMANUS, a 39-year-old resident of Hungary Horse, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, MCMANUS faces 20 years in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs, Drug Enforcement Administration, and Federal Bureau of Investigation. PACER Case Reference. 16-26
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indictment Unsealed Charging Drug and Gun Conspiracies Involving Eastside Hollygrove ResidentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced today’s unsealing of a two-count Indictment charging JONATHAN LAWRENCE, a/k/a “Chop,” a/k/a “Mego,” age 29; DONALD MARCELIN, a/k/a “Snook,” a/k/a “Black,” a/k/a “Golfer,” age 39; BRANDON HALL, a/k/a “B-Hilly,” age 26; and BRIAN MAXSON, a/k/a “Chin,” age 32, all of New Orleans, with violations of the Federal Controlled Substances Act and the Federal Gun Control Act. Count One charges all four defendants with a conspiracy to distribute and possess with intent to distribute a quantity of heroin. Count Two charges defendants LAWRENCE, HALL, and MAXSON with a conspiracy to possess a firearm in furtherance of their drug-trafficking activities.
If convicted of the drug charge, each defendant faces a maximum sentence of twenty years of imprisonment, a $1,000,000 fine, and at least three years of supervised release. If convicted of the firearm charge, each defendant faces a maximum sentence of twenty years of imprisonment, a $250,000 fine, and not more than three years of supervised release.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation’s New Orleans Division’s Violent Gang Task Force, the Drug Enforcement Administration (DEA), the New Orleans Police Department (NOPD), and the Jefferson Parish Sheriff’s Office (JPSO) in investigating this matter. Assistant U.S. Attorney Brandon Long is in charge of the prosecution.
Identity Thief Goes to Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas - Paul Michael Dye, 49, of Corpus Christi, has been sentenced to federal prison for identity theft, announced U.S. Attorney Kenneth Magidson. Dye pleaded guilty Oct. 29, 2015.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Dye to serve 30 months for possessing five or more identification documents with the intent to defraud as well as another 24 months for the identity theft which must be served consecutively. The court also revoked his supervised release he was serving for a prior securities fraud conviction resulting in another 21 months in prison, six months of which will be served consecutively to his new sentence. The total five-year sentence will be followed by three years of additional supervised release. Dye was further ordered to pay full restitution to his victims.
Dye was arrested March 16, 2015. At that time, he was in possession of numerous identity documents in the names of others including three Texas driver’s licenses, three Texas ID cards, one Florida ID, five Social Security cards, two Medicare health insurance cards, seven credit cards and a variety of other student IDs, heath plan IDs and work IDs. Dye also had an assortment of stolen, counterfeit and forged checks. The documents found in Dye’s possession included a fraudulent Texas driver’s license bearing Dye’s photograph but the name and identifying information of another individual.
Agents discovered that between March 8, 2015, and March 11, 2015, 22 counterfeit checks in the name appearing on Dye’s fraudulent driver’s license totaling $5,818.58 were passed at retailers in Corpus Christi and Portland. The routing number and account number on all of these checks actually belonged to an individual whose stolen identifying information was found in Dye’s possession.
An examination of a notebook found in Dye’s vehicle revealed pages of identifying information including names, addresses, dates of birth, Social Security numbers, driver’s license numbers, driver’s license issue and expiration dates, bank account routing and account numbers and other information for dozens of individuals. Through the course of the investigation, agents discovered that a number of the driver’s licenses and ID cards had been used to pass or cash counterfeit and forged checks in the Corpus Christi area and Dye had additional fraudulent checks ready to be passed in his possession.
Dye was also found to be on federal supervised release as the result of a prior conviction for making, possessing and uttering counterfeited securities.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by the Corpus Christi Police Department and the U.S. Secret Service. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Harrisburg Man Indicted on Federal Drug and Firearm ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Andre Hairston, age 34, of Harrisburg, was indicted by a federal grand jury in Harrisburg on April 20, 2016, on charges of being a convicted felon illegally in possession of a four firearms which were also stolen, selling one of the stolen firearms, possession with the intent to distribute synthetic marijuana and criminal conspiracy.
According to U.S. Attorney Peter Smith, the charges arise out of the arrest of Hairston in July 2015 when he sold a stolen handgun. Another stolen handgun was recovered from Hairston’s car. Further investigation led to the recovery of two other stolen handguns and synthetic marijuana that was packaged for distribution.
The investigation was conducted by the Federal Bureau of Investigations Violent Crimes Task Force, the Harrisburg Police Department, the Pennsylvania State Police, the Lower Paxton Township Police, and the Dauphin County Probation and Parole Office. The case is being prosecuted by Assistant United States Attorney William A. Behe.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
Indictments 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.
The maximum penalty under federal law for each firearm count of the indictment is a 10 year term of imprisonment, a term of supervised release following imprisonment, and a fine. The drug counts of the indictment carry 20 year maximum terms of imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Grandview Man Sentenced to 27 Months in Prison for Methamphetamine DistributionRead the Press Release
BOISE - Jose Antonio Diaz-Juarez, 45, of Grandview, Idaho, was sentenced yesterday in United States District Court to 27 months in prison for conspiracy to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Diaz-Juarez to forfeit $8,200 in drug proceeds. He will be deported to Mexico at the end of his prison term. Diaz-Juarez pleaded guilty on January 14, 2016.
According to his plea agreement, Diaz-Juarez, who was living in Grandview Idaho, conspired to distribute methamphetamine in the state of Idaho between July 24, 2015, and September 8, 2015. The defendant and his co-conspirators arranged for three separate deliveries of methamphetamine to the Boise area. An investigating officer discovered the conspiracy and was able to intervene.
Codefendant, Daniel Valdenegro-Zafiro, 24, of Elko, Nevada, was sentenced on April 19, 2016, to 52 months in prison for conspiracy to distribute methamphetamine. Judge Winmill also ordered Valdenegro-Zafiro to forfeit $8,200 in drug proceeds. He will be deported to Mexico at the end of his prison term. Valdenegro-Zafiro pleaded guilty on January 20, 2016.
Codefendant, Diego Alejandro Alcantar-Armenta, 29, of Elko, Nevada, was sentenced on March 21, 2016, to 42 months in prison for conspiracy to distribute methamphetamine. Judge Winmill also ordered Alcantar-Armenta to forfeit $8,200 in drug proceeds. He will be deported to Mexico at the end of his prison term. Alcantar-Armenta pleaded guilty on January 11, 2016.
The case was investigated by the Drug Enforcement Administration, Ada County Sheriff’s Office, Elmore County Sheriff’s Office, Owyhee County Sheriff’s Office, and the Elko Combined Narcotic Unit of Elko, Nevada.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
Grand Prairie Man Sentenced to More Than 17 Years in Federal Prison on Enticement of a Minor ConvictionRead the Press Release
DALLAS — Michael Joseph Carr, 25, of Grand Prairie, Texas, was sentenced yesterday by U.S. District Judge Jane J. Boyle to serve 210 months (17.5 years) in federal prison, following his guilty plea in December 2015 to one count of enticement of a minor, announced U.S. Attorney John Parker of the Northern District of Texas.
Carr has been in federal custody since his arrest in May 2015 on a related federal criminal complaint.
According to documents filed in the case, on March 24, 2015, officers with the Grand Prairie Police Department responded to a call regarding a 15-year-old female who was missing from her guardian’s residence. While driving through the neighborhood, officers observed a suspicious vehicle parked at a church on Tamara Lane in Grand Prairie. Two individuals occupied the rear passenger area. The male occupant, later identified as Carr, opened the door and immediately began apologizing. The other occupant was identified as the missing girl, Jane Doe, who stated she and Carr met on an online social media website.
A subsequent search of Jane Doe’s mobile device revealed that she was using the Kik instant messaging application to engage in sexually explicit communications with another Kik user, later identified as Carr. Carr admits that he used the Internet, Kik and his cell phone to entice Jane Doe to engage in sexual activity with him.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 that aims to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 Project Safe Childhood (PSC) cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
For more information regarding the National Strategy to Combat Child Exploitation, Prevention and Interdiction, please visit: https://www.justice.gov/psc/national-strategy-child-exploitation-prevention-and-interdiction.
The Grand Prairie Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
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Georgia Husband and Wife Plead Guilty in Stolen Identity Tax Refund Fraud Scheme Involving IRS “Get Transcript” DatabaseRead the Press Release
Used Stolen Personally Identifiable Information to Gain Access to the Get Transcript Database
An Austell, Georgia husband and wife pleaded guilty today to charges relating to their involvement in a stolen identity income tax refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney John A. Horn of the Northern District of Georgia.
Anthony Alika, 42, pleaded guilty to one count of conspiracy to commit money laundering. His wife Sonia Alika, 27, pleaded guilty to one count of illegally structuring cash withdrawals to evade bank reporting requirements.
“With the number of stolen identity refund fraud victims increasing at an alarming rate, the Justice Department, working with the Internal Revenue Service (IRS) and its other federal, state and local law enforcement partners, remains committed to investigating these abusive schemes and criminal networks, prosecuting these offenders, and seeking lengthy prison terms and monetary penalties,” said Acting Assistant Attorney General Ciraolo. “The guilty pleas of Anthony Alika, Sonia Alika and Rapheal Atebefia in connection with their attempt to infiltrate and abuse the “Get Transcript” database are yet another example of these continued efforts. The investigation and successful prosecution of these defendants sends a clear message to those individuals engaged in, or considering, this criminal conduct that the Department will bring all available resources to bear to hold them accountable.”
“The IRS is committed to working with our law enforcement partners to pursue identity thieves, and we continue to make important progress in Georgia as well as elsewhere across the country,” said IRS Commissioner John Koskinen. “The IRS is also continuing to strengthen its operations and working with state revenue departments and the tax industry to provide further protections for taxpayers against identity theft.”
“Criminals continually discover more sophisticated methods of stealing personal information and unfortunately seek to capitalize on this theft by filing phony tax returns demanding excessive refunds,” said U.S. Attorney Horn. “Because this is a growing problem, we are applying additional resources to help stem the tide and protect both our personal information and precious tax dollars.”
In January 2016, Anthony Alika and Sonia Alika were charged with laundering the proceeds from a stolen identity refund fraud scheme. The indictment alleged that Anthony Alika, along with Rapheal Atebefia, 33, of Austell, Georgia, obtained means of identification of actual individuals, including their names and social security numbers, and used this information to access the IRS “Get Transcript” database. The indictment further alleged that Anthony Alika, Atebefia, and others obtained prepaid debit cards from stores located in multiple states, registered the cards in the names of the stolen identities, filed false income tax returns using the stolen identities and information obtained from the Get Transcript database, and directed the IRS to deposit the tax refunds onto these cards. To conceal their fraud, Anthony Alika, Atebefia and others were alleged to have used the prepaid debit cards to purchase money orders, which Anthony Alika, Sonia Alika and Atebefia deposited into bank accounts and then structured cash withdrawals of the proceeds in order to prevent the bank from filing Currency Transaction Reports (CTRs).
As part of his guilty plea, Anthony Alika admitted that during 2015 he received money orders from several individuals and deposited those money orders into bank accounts in his name or had his wife deposit them into bank accounts in her name. Anthony Alika would then structure out cash withdrawals from his bank accounts in amounts less than $10,000 to evade the bank reporting requirements. Anthony Alika admitted that the funds used to purchase the money orders were the proceeds of illegal activity, including the filing of fraudulent tax returns using stolen identities. Sonia Alika admitted as part of her guilty plea that between February and June 2015, she withdrew more than $250,000 from multiple bank accounts she controlled in amounts less than $10,000 to prevent the bank from filing CTRs.
U.S. District Judge Thomas W. Thrash, Jr. set sentencing for July 27. Anthony Alika faces a statutory maximum sentence of 20 years in prison and Sonia Alika faces a statutory maximum sentence of 10 years in prison. They also face substantial monetary penalties, restitution and forfeiture. In March, Atebefia pleaded guilty to one count of money laundering for his role in this scheme. He is scheduled to be sentenced on June 22.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Horn commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case and Trial Attorneys Michael C. Boteler and Charles M. Edgar, Jr. of the Tax Division and Assistant U.S. Attorney Brian Pearce of the Northern District of Georgia, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Teacher Sentenced for Possession of Child PornographyRead the Press Release
DAYTON – William Foreman, 71, of Kettering, Ohio was sentenced in U.S. District Court to 60 months in prison for possessing child pornography.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio and Marlon V. Miller, Special Agent in Charge, Homeland Security Investigations (HSI), announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
According to court documents, the case stemmed from a child exploitation investigation in the United Kingdom that included emails with a subject named “Bill.” In the communication, “Bill” – later identified as Foreman – discussed his attraction to young children and his access to them through his business. Investigators discovered Foreman had been certified/licensed to teach in the state of Ohio since 1975. Specifically, the records indicated he was certified to teach handicapped children in grades Kindergarten through 12th grade and all students in grades Kindergarten through 8th grade.
It was discovered that Foreman’s username was associated with several websites that contained stories of child erotica, including more than 70 stories authored by Foreman and posted as early as 1998.
While visiting Foreman’s home, the defendant told investigators he was a teacher with Dayton Public Schools and currently tutored special needs students at hospitals or in their homes.
Upon executing forensic analysis of Foreman’s computer and memory cards, investigators discovered multiple pornographic pictures and videos of young girls approximately seven to 11 years old.
“Possession of child pornography is a real crime that harms real children,” Acting U.S. Attorney Glassman said. “The facts of this case are all the more egregious because they involve a school teacher spending his private time watching the rape of school-aged children.”
“The facts of this case are particularly troubling given the defendant’s career choice and ready access to children,” said Miller. "Cases like these only heighten our resolve to seek out predators, especially those in positions of trust, to ensure they are held accountable."
Foreman pleaded guilty on November 30, 2015 to one count of possession of child pornography.
Acting U.S. Attorney Glassman commended the cooperative investigation by HSI, as well as Assistant United States Attorney Sheila G. Lafferty, who is representing the United States in this case.
Former Office Manager Pleads Guilty to Stealing over $300,000 from EmployerRead the Press Release
WASHINGTON – Bianca Bush-Bronson, 37, the former office manager for a consulting and lobbying firm, pled guilty today to a federal charge stemming from a scheme in which she embezzled more than $300,000 from her employer, announced U.S. Attorney Channing D. Phillips and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.
Bush-Bronson, of Washington, D.C., pled guilty to a charge of wire fraud in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, Bush-Bronson faces a likely range of 30 to 37 months in prison and a fine between $10,000 and $100,000. As part of her plea agreement, she must pay $303,972 in restitution. The Honorable Tanya S. Chutkan scheduled sentencing for July 7, 2016.
According to the government’s evidence, Bush-Bronson worked from April 2011 to October 2012 for a business identified in court documents as “Company A,” a consulting and lobbying firm in the District of Columbia. She maintained responsibility for the company’s day-to-day financial operations, including preparing checks, depositing funds, performing reconciliation of funds in bank accounts, and serving as a point of contact with the bank.
From June 2011 through October 2012, according to the government’s evidence, Bush-Bronson issued checks drawn on the company’s account to herself, to cash, and to third parties for her own benefit. To conceal this activity, she made false entries in internal books and records. In total, she issued at least $45,786 in checks in this manner, using the money for, among other things, a down payment on a car, a mortgage payment, and a payment to her dentist.
Bush-Bronson also used the company’s credit card to make $258,186 in unauthorized purchases for her own personal use at various retailers, including a jewelry store, department stores, and a salon, as well as for restaurants, airline tickets, and hotel stays.
In announcing the plea, U.S. Attorney Phillips and Assistant Director in Charge Abbate commended the work of those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tasha Harris, Legal Assistant Angela Lawrence, and former Paralegal Specialist Heather Sales. Finally, they commended Assistant U.S. Attorneys Michelle A. Zamarin and David A. Last, who prosecuted the case.
Former Morgan City Housing Authority director, employee plead guilty to conspiracy chargeRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that the former director of the Morgan City Housing Authority and a former employee pleaded guilty to charges related to theft of more than a half a million dollars.
Charles E. Spann, 78, of Kingsport, Tenn., and Tori D. Johnson, 38, of Morgan City, La., pleaded guilty before U.S. Magistrate Judge Carol B. Whitehurst to one count of conspiracy to defraud the United States. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to the guilty plea, Spann, Johnson and two other Morgan City Housing Authority employees received $514,764.14 in bonus payments to which they were not entitled from 2007 to 2013. In 2007, a one-time bonus for work performed in the wake of hurricanes Katrina and Rita was granted. After the one-time bonuses were sent to all employees of the housing authority, Johnson requested from Spann, who was director of the housing authority, that she, Spann and two other employees, Diana L. Pace, 64, and Sandra L. Greene, 59, both of Morgan City, continue to receive bonuses. Johnson wrote false justifications for the bonuses and Spann signed off on them. The bonuses were not approved by the civil service board or the Morgan City Housing Authority Board of Directors. Span received $111,657.47, and Johnson received $100,040.23 to which they were not entitled.
The defendants face five years in prison, three years of supervised release, a $250,000 fine and restitution. A sentencing date of June 27, 2016 was set for Spann and Johnson.
The U.S. Office of Housing and Urban Development, Office of Investigations, conducted the investigation. Assistant U.S. Attorneys Kelly P. Uebinger and Robert F. Moore are prosecuting the case.
Foreign National Sentenced to 36 Months in Prison for Human SmugglingRead the Press Release
A Guatemalan woman was sentenced today to 36 months in federal prison for conspiracy and human smuggling related to a scheme to smuggle undocumented migrants from India into the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas and Special Agent in Charge Shane Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in San Antonio made the announcement.
Rosa Astrid Umanzor-Lopez, 36, was extradited to the United States from Guatemala and later pleaded guilty to one count each of conspiracy to smuggle undocumented migrants into the United States for profit and human smuggling in the Southern District of Texas. Umanzor-Lopez was sentenced today by U.S. District Judge Ewing Werlein Jr. of the Southern District of Texas. She is expected to face deportation proceedings following her release from prison.
At the plea hearing and in related court documents, Umanzor-Lopez admitted that between January 2011 and her arrest in Guatemala on Feb. 4, 2014, she and other conspirators recruited individuals in India who were willing to pay large sums of money to be smuggled into the United States. For their smuggling operations, Umanzor-Lopez and her co-conspirators used a network of facilitators to transport groups of undocumented migrants from India through South America and Central America and then into the United States by air travel, automobiles, water craft and foot, she admitted. Umanzor-Lopez also admitted that many of these smuggling events involved illegal entry into the United States via the U.S.-Mexico border near McAllen and Laredo, Texas.
Three other members of the conspiracy have also been convicted and sentenced, and a fourth remains a fugitive.
HSI agents in McAllen and Houston investigated the case with the assistance of U.S. Customs and Border Protection’s Alien Smuggling Interdiction Unit. Trial Attorney Ann Marie E. Ursini of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys Leo J. Leo III and Casey MacDonald of the Southern District of Texas prosecuted the case. The Criminal Division’s Office of International Affairs provided significant support with the defendant’s extradition.
The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Foreign National Sentenced for Human SmugglingRead the Press Release
HOUSTON - A Guatemalan woman was sentenced today to 36 months in federal prison for conspiracy and human smuggling related to a scheme to smuggle undocumented migrants from India into the United States.
U.S. Attorney Kenneth Magidson made the announcement along with Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Shane Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in San Antonio.
Rosa Astrid Umanzor-Lopez, 36, was extradited to the United States from Guatemala and later pleaded guilty to one count each of conspiracy to smuggle undocumented migrants into the United States for profit and human smuggling. U.S. District Judge Ewing Werlein Jr. sentenced Umanzor-Lopez today. She is expected to face deportation proceedings following her release from prison.
At the plea hearing and in related court documents, Umanzor-Lopez admitted that between January 2011 and her arrest in Guatemala on Feb. 4, 2014, she and other conspirators recruited individuals in India who were willing to pay large sums of money to be smuggled into the United States. For their smuggling operations, Umanzor-Lopez and her co-conspirators used a network of facilitators to transport groups of undocumented migrants from India through South America and Central America and then into the United States by air travel, automobiles, water craft and foot, she admitted. Umanzor-Lopez also admitted that many of these smuggling events involved illegal entry into the United States via the U.S.-Mexico border near McAllen and Laredo.
Three other members of the conspiracy have also been convicted and sentenced, and a fourth remains a fugitive.
HSI agents in McAllen and Houston investigated the case with the assistance of U.S. Customs and Border Protection’s Alien Smuggling Interdiction Unit.
Assistant U.S. Attorneys Leo J. Leo III and Casey MacDonald prosecuted the case along with Trial Attorney Ann Marie E. Ursini of the Criminal Division’s Human Rights and Special Prosecutions Section. The Criminal Division’s Office of International Affairs provided significant support with the defendant’s extradition.
The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Fitzgerald Physician Indicted on Drug ChargesRead the Press Release
On Tuesday, April 12, 2016, Dr. Edd Colbert Jones, III, from Fitzgerald, Georgia, was indicted on 17 counts of narcotics charges in the Middle District of Georgia, announced Acting United States Attorney G.F. Peterman, III.
The Grand Jury charged Dr. Jones with one count of conspiracy to distribute and dispense controlled substances including Oxycodone, Alprazolam and Diazepam and sixteen counts of unlawful dispensation of controlled substances.
Dr. Jones made his initial appearance before U.S. District Court Judge Charles H. Weigle on April 22, 2016. At that time, he was advised of the charges against him, his rights and maximum possible penalties. Dr. Jones pled not guilty and was granted terms of release on bond.
The case was investigated by the Drug Enforcement Administration and the Ben Hill County Sheriff’s Office. Assistant United States Attorney Leah E. McEwen is prosecuting the case for the government.
A copy of the indictment is attached. The indictment is only an allegation of criminal conduct. Dr. Jones is presumed innocent until and unless proven guilty in a court of law. If convicted, Dr. Jones faces a potential maximum penalty of twenty (20) years imprisonment, a $1 million fine, or both.
For additional information, contact Pamela Lightsey, Public Information Officer, at 478-621-2603 or [email protected].
Federal Court Bars Mississippi Tax Return Preparer from Preparing Returns for OthersRead the Press Release
The U.S. District Court for the Southern District of Mississippi permanently barred Teresa Chism of Durant, Mississippi, from preparing federal tax returns for others, the Justice Department announced today.
According to the government’s civil complaint, Chism, who operated her business as Lady T. Taxes, prepared federal income tax returns that fraudulently overstated her customers’ claims for refunds. She did so by claiming refundable credits, including the Earned Income Tax Credit (EITC) and credits for education expenses, that her customers either were ineligible to receive, or were not entitled to receive in the amounts claimed on the returns, the complaint alleged. The complaint further alleged that Chism frequently fabricated Forms W-2 and submitted them with a tax return as evidence of a customer’s eligibility for the EITC.
The United States alleged in the complaint that Chism prepared at least 2,845 returns since 2010. Audits of 220 returns prepared by Chism claiming the EITC and/or other refundable credits revealed that 98 percent of these returns claimed credits totaling more than $1 million that Chism’s customers were not eligible to receive, according to the complaint.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
EOIR Swears in Two Immigration JudgesRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced the investiture of two immigration judges. Acting Chief Immigration Judge Michael C. McGoings presided over the investiture during a ceremony held April 21, 2016, at the U.S. Court of Appeals for the Armed Forces in Washington, D.C.
After a thorough application process, Attorney General Loretta E. Lynch appointed Kuyomars Golparvar and Robin J. Rosche to their new positions.
“We are pleased to welcome these appointees to the immigration judge corps,” said McGoings. “We look forward to continuing to hire qualified people to fill these important public service positions.”
Biographical information follows.
Kuyomars Golparvar, Immigration Judge, York Immigration Court
Attorney General Loretta E. Lynch appointed Kuyomars Golparvar to begin hearing cases in April 2016. Judge Golparvar received a Bachelor of Arts degree in 1998 from The George Washington University and a Juris Doctor in 2002 from the University of Pittsburgh School of Law. From 2004 through April 2016, Judge Golparvar served in various capacities, including: division chief, section chief, senior advisor to the principal legal advisor, deputy chief counsel, and assistant chief counsel for Immigration and Customs Enforcement, Department of Homeland Security. From 2003 through 2004, Judge Golparvar was an associate attorney for Deasy & Whitehill PC, in Pittsburgh. In 2013, Judge Golparvar joined the faculty at The George Washington University Law School where he serves as an adjunct professor. Judge Golparvar is a member of the District of Columbia and Pennsylvania Bars.
Robin J. Rosche, Immigration Judge, Chicago Immigration Court
Attorney General Loretta E. Lynch appointed Robin J. Rosche to begin hearing cases in April 2016. Judge Rosche received a Bachelor of Science degree in 1997 from the University of Wisconsin-Milwaukee, a Juris Doctor in 2000 from Marquette University Law School, and a Master of Laws in 2005 from the University of London, University College. From 2014 through March 2016, Judge Rosche served as a general attorney for Customs and Border Protection, Department of Homeland Security (DHS). From 2005 through 2014, Judge Rosche served as an assistant chief counsel for Immigration and Customs Enforcement, DHS. From 2000 through 2004, Judge Rosche served as an assistant district attorney for the Milwaukee County District Attorney’s Office. From 1988 through 1997, Judge Rosche served in various capacities including: uniformed patrol officer, undercover officer and detective for the Milwaukee Police Department in Wisconsin. From 1983 through 1987, Judge Rosche served as a security police investigator for the U.S. Air Force at Ramstein Air Base, in Germany. Judge Rosche is a member of the State Bar of Wisconsin.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR's immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR's Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
District Man Sentenced to Six Years in Prison for Beating a Man and Joining in Slashing a Bystander Who Attempted to Stop the AttackRead the Press Release
WASHINGTON – Frank G. Smith, 34, of Washington, D.C., was sentenced today to six years in prison on charges of aggravated assault and simple assault for his role in an attack of two men that took place in December 2013 near the entrance to the U Street Metro station in Northwest Washington, U.S. Attorney Channing D. Phillips announced.
Smith was found guilty by a jury in February 2016, following a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Florence Pan. Following completion of his prison term, he will be placed on three years of supervised release.
According to the government’s evidence, in the early morning hours of Dec. 21, 2013, Smith and others attacked a man who had been involved in a traffic dispute with one of Smith’s friends. That man was taken down to the ground near the U Street Metro entrance, at 10th and U Streets NW, and Smith and his friends began kicking him as he lay on the ground defenseless.
A second man, a Good Samaritan, saw the beating taking place. He yelled at Smith and Smith’s friends to stop kicking the man on the ground, who appeared unconscious. When they refused to stop, the Good Samaritan intervened by pushing Smith and the others away from the man on the ground. One of Smith’s friends then began fighting with the Good Samaritan. As the Good Samaritan separated from his first attacker, he noticed that he was cut and bleeding across the right side of his chest. Smith then continued attacking him, at which point the Good Samaritan felt and saw that his left hand had been cut to the bone between his index finger and thumb. As the police arrived on the scene, Smith stopped his attack and attempted to walk away, but he was stopped by the police and identified at the scene by the victim who was cut.
No knife or sharp object was recovered from Smith, but he had blood on his face and clothes. Subsequent DNA analysis revealed that the Good Samaritan’s DNA was found on Smith’s clothes.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by Bode Technologies. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Jennifer Clark; Paralegal Specialists Lynda Randolph, Donville Drummond, and Allison Daniels; Criminal Investigator Melissa Matthews; Litigation Technology Supervisor Joshua Ellen, and Patricia A. Riley, Special Counsel to the U.S. Attorney, and Assistant U.S. Attorney Chrisellen Kolb. Finally, he praised the work of former Assistant U.S. Attorney Kathleen Connolly, who secured the indictment, and Assistant U.S. Attorneys Laura Crane and Fernando Campoamor-Sanchez, who tried the case.
District Man Pleads Guilty to Second-Degree Murder of Man During Noontime Robbery in Northeast WashingtonRead the Press Release
WASHINGTON – Tavon Pinkney, 20, William Bass, 18, and Kalif Brown, 22, all of Washington, D.C., pled guilty today to charges stemming from the shooting death of a man last year in Northeast Washington, U.S. Attorney Channing D. Phillips announced.
Pinkney pled guilty in the Superior Court of the District of Columbia to a charge of second-degree murder while armed. The plea, which is contingent on the Court’s approval, calls for a sentence of 17 years in prison. Bass pled guilty to assault with intent to rob while armed. His plea, which also is contingent on the Court’s approval, calls for a sentence consistent with the District of Columbia Voluntary Sentencing Guidelines. Finally, Brown pled guilty to robbery. His plea, also contingent on the Court’s approval, calls for five years in prison.
All three defendants will be sentenced by the Honorable Robert E. Morin on July 8, 2016.
According to the government’s evidence, just before noon on February 16, 2015, the defendants were driven to the 300 block of 61st Street NE for purposes of conducting a PCP transaction with the victim, Rico Myers, 25, and his friend. Once there, the defendants entered an alley and Pinkney pulled a gun, demanding the victim’s possessions.
Bass began going through Mr. Myers’s pockets, while Brown robbed Mr. Myers’s friend. Mr. Myers began struggling to defend himself and Pinkney then shot him four times. The defendants ran to the waiting car on 61st Street NE, which then drove off.
Mr. Myers ran out of the alley and collapsed on a sidewalk in the 300 block of 61st Street NE. He was taken to a hospital, where all efforts to save his life were unsuccessful. An autopsy performed by the Maryland Office of the Chief Medical Examiner determined the cause of death to be multiple gunshot wounds and the manner of death to be homicide.
In announcing the guilty pleas, U.S. Attorney Phillips commended the work of the detectives of the Criminal Investigations Division, Homicide Branch, crime scene officers, and the Sixth Police District of the Metropolitan Police Department, as well as Special Agent Benjamin Inman of the FBI’s Cellular Analysis Survey Team. He also expressed appreciation for the work of the D.C. Department of Fire and Emergency Medical Services and the Maryland Office of the Chief Medical Examiner. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Diana Lim, Victim/Witness Security Specialist M. Laverne Forrest, and Paralegal Specialist Lashone Samuels. Finally, he praised the work of Assistant U.S. Attorney Michael Spence, who investigated and prosecuted the case.
Department of Justice to Launch Inaugural National Reentry WeekRead the Press Release
Attorney General Lynch and Secretary Castro to Kickoff National Reentry Week in Philadelphia
Justice Department to Announce New Efforts to Improve Outcomes for Justice-Involved Individuals Including Youth
As part of the Obama Administration’s commitment to strengthening the criminal justice system, the Department of Justice designated the week of April 24-30, 2016, as National Reentry Week. Attorney General Loretta E. Lynch and U.S. Department of Housing and Urban Development Secretary Julián Castro will travel to Philadelphia on MONDAY, APRIL 25, 2016, to hold events as part of National Reentry Week with public housing advocates, legal services providers and community leaders where they will announce new efforts to improve outcomes for justice-involved individuals including youth.
Later in the week, the Attorney General will visit a Federal Bureau of Prisons (BOP) facility in Talladega, Alabama, to highlight reentry programs in prison. Similarly, Deputy Attorney General Sally Q. Yates will visit a federal women’s prison in Texas and will later hold a media availability at Santa Maria Hostel, a specialized residential substance abuse, mental health and trauma facility. Acting Director Thomas Kane of the Bureau of Prisons will accompany both Attorney General Lynch and Deputy Attorney General Yates on their visits.
“Too often, justice-involved individuals who have paid their debt to society confront daunting obstacles to good jobs, decent housing, adequate health care, quality education, and even the right to vote,” said Attorney General Lynch. “National Reentry Week highlights the many ways that the Department of Justice – and the entire Obama Administration – is working to tear down the barriers that stand between returning citizens and a meaningful second chance – leading to brighter futures, stronger communities, and a more just and equal nation for all.”
The Obama Administration has taken major steps to make our criminal justice system fairer, more efficient and more effective at reducing recidivism and helping formerly incarcerated individuals contribute to their communities. Removing barriers to successful reentry helps formerly incarcerated individuals compete for jobs, attain stable housing, and support their families. An important part of that commitment is preparing those who have paid their debt to society for substantive opportunities beyond the prison gates, and addressing collateral consequences to successful reentry that too many returning citizens encounter.
Leadership from across the Administration are traveling during National Reentry Week in support of these many events and are encouraging federal partners and grantees to work closely with stakeholders like federal defenders, legal aid providers and other partners across the country to increase the impact of this effort. National Reentry Week events are being planned in all 50 states, the District of Columbia, Puerto Rico and the Virgin Islands. U.S. Attorney’s Offices alone are hosting over 200 events and BOP facilities are holding over 370 events.
ATTORNEY GENERAL LYNCH AND SECRETARY CASTRO HOLD NATIONAL REENTRY WEEK EVENT
WHO: Attorney General Loretta E. Lynch
U.S. Department of Housing and Urban Development Secretary Julián Castro
WHEN: MONDAY, APRIL 25, 2016
2:30 p.m. EDT
WHERE: Raymond Rosen Manor Auditorium
2301 W. Edgley St.
Philadelphia, PA 19121
OPEN PRESS (Media Gather Time: 1:30 p.m. EDT; Final Access: 2:00 p.m. EDT)
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Members of the media must RSVP for the above events to Heather Fluit at [email protected] and [email protected] by Monday, Apr. 25, 2016, at 9:00 a.m. EDT. Space is limited and not guaranteed. Press inquiries regarding logistics should be directed to Heather Fluit at [email protected] and [email protected]. Following the event, Attorney General Lynch and Secretary Castro will hold a media availability.
ATTORNEY GENERAL LYNCH VISITS FEDERAL BUREAU OF PRISONS FACILITY IN ALABAMA
WHO: Attorney General Loretta E. Lynch
Acting Director Thomas Kane of the Bureau of Prisons
WHEN: FRIDAY, APRIL 29, 2016
WHERE: FCI Talladega
565 East Renfroe Road
Talladega, AL 35160
POOLED PRESS
NOTE: This event is pooled press. There is no RSVP for this event. Press inquiries should be directed to the Office of Public Affairs at [email protected].
DEPUTY ATTORNEY GENERAL YATES VISITS FEDERAL WOMEN’S PRISON FACILITY AND HOLDS MEDIA AVAILABILITY AT REENTRY CENTER
Federal Women’s Prison
WHO: Deputy Attorney General Sally Q. Yates
Acting Director Thomas Kane of the Bureau of Prisons
WHEN: TUESDAY, APRIL 26, 2016
WHERE: FPC Bryan
1100 Ursuline Avenue
Bryan, TX 77803
OPEN TO PRE-CREDENTIALED MEDIA
NOTE: This event is open only to pre-credentialed media. There is no RSVP for this event.
Media Availability at Reentry Center
WHO: Deputy Attorney General Sally Q. Yates
WHEN: TUESDAY, APRIL 26, 2016
4:30 p.m. CDT / 5:30 p.m. EDT
WHERE: Santa Maria Hostel
2605 Parker Road
Houston, TX 77093
OPEN PRESS (Media Gather Time: 3:30 p.m. CDT / 4:30 p.m. EDT; Final Access: 4:00 p.m. CDT / 5:00 p.m. EDT)
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Members of the media must RSVP for the above events to [email protected] by Monday, Apr. 25, 2016, at 5:00 p.m. EDT. Space is limited and not guaranteed. Press inquiries regarding logistics should be directed to Emily Pierce at [email protected] and Wyn Hornbuckle at [email protected].
OTHER WHITE HOUSE AND DEPARTMENT OF JUSTICE EVENTS SURROUNDING NATIONAL REENTRY WEEK INCLUDE:
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On Monday, April 25, 2016, the White House will hold an event with the Brennan Center on the costs of incarceration.
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On Monday, April 25, 2016, Deputy Attorney General Sally Q. Yates will deliver remarks before a screening of “Pull of Gravity” a documentary that follows returning inmates as they encounter reentry obstacles, hosted by the Justice Department as part of National Reentry Week. Assistant Attorney General Leslie R. Caldwell of the Criminal Division will also participate.
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On Monday, April 25, 2016, Director Lisa Foster of the Office for Access Justice will hold a joint event in Los Angeles with the Department of Housing and Urban Development to announce new efforts to improve outcomes for justice-involved youth.
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On Monday, April 25, 2016, Director Lisa Foster of the Office for Access Justice will attend a Conviction and Sentence Alternatives (CASA) Program Graduation Ceremony in Los Angeles.
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On Tuesday, April 26, 2016, Assistant Attorney General Karol V. Mason of the Office of Justice Programs will attend a girls mentoring event at a local detention facility. The event is sponsored by the U.S. Attorney’s Office for the District of Columbia.
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On Tuesday, April 26, 2016, Acting Associate Attorney General Bill Baer will deliver remarks at a reentry event at Central Union Mission, sponsored by the U.S. Attorney’s Office for the District of Columbia. Assistant Attorney General Karol V. Mason of the Office of Justice Programs will participate in Q+A.
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On Tuesday, April 26, 2016, Second Chance Fellow Daryl Atkinson of the Office of Justice Programs will deliver remarks at a reentry simulation in Birmingham sponsored by the U.S. Attorney’s Office for the Northern District of Alabama.
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On Wednesday, April 27, 2016, the White House will host the Fair Chance Opportunities Champions of Change event in South Court Auditorium.Attorney General Loretta E. Lynch will deliver remarks and Deputy Attorney General Sally Q. Yates will moderate a panel at the event.
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On Thursday, April 28, 2016, the head of the Civil Rights Division, Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division will deliver remarks at a reentry event at Mickey Leland Transitional Housing Facility, sponsored by the U.S. Attorney’s Office for the District of Columbia.
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On Friday, April 29, 2016, Principal Deputy Director Bea Hanson of the Office on Violence Against Women will visit a federal women’s prison in West Virginia.
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On Friday, April 29, 2016, the Department of Labor will host a celebration of the 50th Anniversary of the Bonding Program.Deputy Attorney General Sally Q. Yates will deliver remarks at the event.
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Department of Justice and EPA Announce $50 Million Settlement to Clean up Contamination at Eastern Tennessee Superfund SiteRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced that OXY USA Inc., a subsidiary of Occidental Petroleum Company, has agreed to clean up contaminated water and sediments in the Ocoee River and one of its watersheds at the Copper Basin Mining District Superfund Site in Polk County, Tennessee. The settlement requires the company to spend an estimated $40 million to maintain and operate a water treatment system, prevent access by the public to contaminated water and monitor contamination in the Ocoee River.
In addition, OXY USA Inc. will reimburse EPA approximately $10.8 million toward costs incurred in its past cleanup actions at the site. The company will also reimburse EPA and the state of Tennessee for costs incurred by those agencies in overseeing the work required by the settlement
“This settlement is the product of excellent cooperation between private parties, and the state and federal government to find a long term solution to cleaning up the contamination at the Copper Basin site,” said Assistant Attorney General John Cruden of the Justice Department’s Environment and Natural Resources Division. “This agreement will yield lasting benefits for water quality in this Ocoee River watershed.”
“This settlement marks a significant turning point in the remediation and restoration of an area that has borne the brunt of contamination from industrialized operations for over a century,” said Regional Administrator Heather McTeer Toney of EPA’s Southeast Region. “The provisions incorporated by these consent decrees exemplifies the hard work by multiple federal agencies, the state of Tennessee, Tennessee Valley Authority and OXY USA to ensure the remediation and recovery of the Ocoee River and the North Potato Creek and Davis Mill Creek Watersheds continues well into the future.”
“This settlement formalizes the cooperation and commitments exhibited between the company and regulators over the past two decades,” said Tennessee Department of Environment and Conservation Commissioner Bob Martineau. “This major project follows a shared goal of compliance and achievement of long-term water quality performance in the Copper Basin that benefits our natural resources and the citizens of Tennessee.”
Pursuant to earlier agreements with EPA and the state of Tennessee, OXY constructed and installed a system to collect and treat contaminated water and sediments from the Davis Mill Creek watershed prior to discharge in the Ocoee River. Under the settlement lodged today, OXY will continue to operate and maintain the system, including any necessary refurbishments of the plant. In addition, the Tennessee Valley Authority (TVA) agreed to implement measures at its dams along a 38-mile stretch of the Ocoee River in order to prevent contaminants from becoming airborne. EPA will oversee the work, which will implement the cleanup remedy required by the agency’s 2011 and 2014 Records of Decision for the Ocoee River and the Davis Mill Creek watershed, respectively.
From the mid-1800s until 1989, the Copper Basin Mining District Superfund Site was the location of extensive copper, iron and sulfur mining operations, mineral processing and sulfuric acid production. Throughout that time, wastes generated through those operations, which included sulfuric acid, lead, mercury, PCBs and other contaminants, were disposed of in, on and around Davis Mill Creek and North Potato Creek, both of which discharge to the Ocoee River. These contaminants can still be found in the sediments and surface water at the site.
EPA, the Tennessee Department of Environment and Conservation and OXY began response work at the Copper Basin Mining District Superfund Site in 1990. Over the last 25 years, EPA has overseen extensive work at the site, including the construction of two water treatment plants (WTPs). The first WTP went online in 2002 and the second in 2005. To date, 535,231 kilograms of hazardous waste, oil, equipment and soil contaminated with lead and polychlorinated biphenyls have been removed from the site and properly disposed. The volume of water treated to date is 8,266,257,000 gallons at the London Mill Wastewater Treatment Plant, 9,761,564,000 gallons at the Cantrell Flats Wastewater Treatment Plant, and 49,362,271,000 gallons at the North Potato Creek Water Treatment Plant, totaling 67,390,092,000 gallons.
Also under the consent decree, the United States, on behalf of the Department of Defense and the Department of Commerce, agreed to pay OXY approximately $12.6 million to settle claims for OXY’s past and future cleanup costs, based primarily on the United States’ ownership and operation of a portion of the site between 1941 and 1946.
Taking into account the settlement being lodged today and the work previously performed at the site, over $217 million is being devoted to cleaning up the contamination at this site.
The settlement, lodged in the Eastern District of Tennessee today as two consent decrees, will be posted in the Federal Register and available for public comment for a period of 30 days. The consent decree can be viewed on the Justice Department website: www.justice.gov/enrd/Consent_Decrees.html. The Justice Department also concurrently filed a complaint initiating the case that the consent decrees resolve.
For more information on the site, please visit: https://cumulis.epa.gov/supercpad/cursites/csitinfo.cfm?id=0406638
Department of Justice Designates April 24-30, 2016, as National Reentry Week in Support of Its Smart on Crime InitiativeRead the Press Release
The United States Attorney’s Office in the Eastern District of Tennessee is smart on crime, and aggressive in pursuit of justice. Our office is composed of attorneys, paralegals, legal assistants and support staff who are dedicated to the mission of the Department of Justice. In 2013, the U.S. Department of Justice launched a comprehensive review of the criminal justice system to ensure that federal law is administered fairly, equitably, and effectively. We were directed to target the most serious offenses, prosecute the most dangerous criminals, direct assistance to crime ‘hot spots,’ and pursue new ways to promote public safety, deterrence, efficiency, and fairness. This initiative from former Attorney General Holder came to be known as Smart on Crime.
We knew we had excelled for many years at these tasks, but we saw the challenge of finding new ways to look at deterrence, efficiency and fairness. We were also challenged to facilitate the successful reentry of former offenders, who have paid their debt to society through incarceration.
In 2015, the U.S. Attorney’s Office developed its Smart on Crime Initiative by devoting a fulltime Assistant U.S. Attorney, Brooklyn Sawyers, to coordinate the initiative across East Tennessee. Our initiative includes a crime prevention program in which the U.S. Attorney’s Office provides a live presentation about positive living and choices and consequences to juvenile offenders in Knox County Juvenile Court and the Richard Bean Juvenile Detention Center. One goal of the prevention program is to dismantle the proverbial school-to-prison pipeline in East Tennessee. The initiative also includes rigorous prosecution of criminals who violate federal law and whose bad acts will likely only be curtailed through a federal prison sentence.
The initiative also seeks to help former offenders who return to East Tennessee live law-abiding lives. While it may seem like new business for the U.S. Attorney’s Office to provide assistance to these former offenders, it is not new at all. The U.S. Attorney’s Office has always been involved when returning former offenders seek early release for good behavior while incarcerated. Our Assistant U.S. Attorneys have gone to prisons and half-way houses to explain the consequences of further criminal behavior after release. Another way to protect this community and seek justice is to remove obstacles that stand in the way of any citizen living a law-abiding life. Our Smart on Crime Initiative allows us to do just that by partnering with Chief U.S. Probation Officer, Tony Anderson, and his office. Through that partnership, we convene community resource providers who are already in the business of providing services that former offenders need, and have them explain their services to the former offenders who may avail themselves of those services. The meetings occur across the district in Chattanooga, Knoxville, and Johnson City on a monthly or quarterly basis. Topics thus far have included substance abuse treatment, how to obtain a driver’s license, housing options, and much more.
Community service providers who have contributed to the Chattanooga effort include: the Bureau of Alcohol, Tobacco, Firearms and Explosives, Chattanooga; Bureau of Prisons Half-Way House; United Way 2-1-1; Tennessee Department of Human Services; Pastor Ternae Jordan and Mt. Canaan Baptist Church; Tennessee Career Center; Chattanooga State Community College; BlueCross BlueShield; Marion County Chaplain; Father to the Fatherless; Stephen’s Table; Northside Neighborhood House; Christian Women’s Job Corp; Behind the Bars; and Joe Johnson Mental Health Center. Community service providers who have contributed to the Knoxville reentry effort include: Knoxville Leadership Foundation; Tennessee Department of Safety; Knox County Health Department; Knoxville Police Department; Federal Bureau of Investigation, Knoxville Division; Susannah House; Helen Ross McNabb; Cokesbury Church; Focus Group Ministries; and Pastor James Davis and Eternal Life Harvest Center. Community service providers who have contributed to the Johnson City reentry effort include: Grace Fellowship Church; Summit Leadership Foundation; Frontier Health; Families Free; Drug Enforcement Administration, Johnson City; and Johnson City Police Department.
The importance of these community service organizations coming together to help former offenders cannot be understated. Convening these organizations in a central location for former offenders increases accessibility and the likelihood that they will use the services. Further, by understanding what their communities offer, former offenders are better prepared to live law abiding lives, which impacts the safety of all the residents of East Tennessee.
Attorney General Loretta Lynch echoed similar sentiment when she designated the week of April 24-30, 2016, as National Reentry Week. She emphasized the importance of preparing those who have paid their debt to society for substantive opportunities beyond the prison gates, and addressing obstacles to successful reentry.
The U.S. Attorney’s Office will participate in National Reentry Week, because we all have an interest in reducing crime in our communities. By encouraging former offenders to live crime-free lives and become productive citizens supporting their families and their communities, we can make a difference. Our activities this week will include in-house training and our regularly scheduled call-in meetings throughout the week. There are many opportunities for the community to become involved as well. If you are interested in this initiative, please consider volunteering for a community-based organization that is dedicated to serving all people. By working together, we can all be smart on crime.
Nancy Harr, Acting U.S. Attorney
Danville Real Estate Agent Sentenced to Four Years in Prison for Bank Fraud and Money Laundering SchemeRead the Press Release
OAKLAND – Anthony Keslinke, 48, of Danville, was sentenced to four years in prison today for his leadership role in a large-scale bank fraud conspiracy and a separate money laundering conspiracy, announced United States Attorney Brian J. Stretch, Drug Enforcement Administration Special Agent in Charge John J. Martin, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.
Keslinke pleaded guilty in May of 2015 to one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering. In pleading guilty, Keslinke admitted that he used straw buyers to purchase real estate throughout Northern California between 2011 and 2014. Keslinke identified properties, including his own properties, that were potential candidates for a “short sale.” A “short sale” is a sale of real estate in which the sale proceeds are less than the balance owed on the mortgage loan pertaining to the property and often occurs when a borrower cannot pay the mortgage loan.
In furtherance of the scheme, Keslinke submitted offers to the financial institutions on behalf of straw buyers. In order to induce a bank to accept a short sale offer, Keslinke would draft fraudulent financial hardship letters and submit them on behalf of the seller of a property. In addition, in order to give the appearance to the financial institutions that the properties were worth significantly less than true fair market value, Keslinke often altered engineering and pest reports associated with the properties. Moreover, in furtherance of his scheme, Keslinke often altered bank account documents to create the appearance that the straw buyers had sufficient funds to purchase the properties in cash. Once a financial institution accepted a particular property for a short sale, Keslinke used his own funds to purchase the property in the name of the straw buyer. After a short sale was completed on a particular property, Keslinke maintained control of the property and often sold the property for a significant financial gain. Keslinke admitted using this mortgage fraud scheme to orchestrate the short sale of properties in Danville, Walnut Creek, and Kings Beach, California.
Keslinke also admitted that between August of 2013 and February of 2014, he met on multiple occasions with an undercover agent purporting to be a drug dealer. Keslinke accepted a total of $550,000 from the undercover agent. In an attempt to conceal the true source of the funds, Keslinke repeatedly deposited the money received from the undercover agent into business bank accounts under his control. Keslinke then attempted to launder the money by wiring it from his business bank accounts to an account controlled by the undercover agent. Keslinke routinely kept 8-10% of the money provided to him from the undercover agent as a fee for his services.
The sentence was handed down by United States District Judge Jon S. Tigar. In addition to the prison term, Judge Tigar also ordered the defendant to pay a forfeiture judgment in the amount of $2,086,405 and a fine of $50,000. Keslinke also agreed to forfeit $1,722,426 in cash seized from his residence and his bank accounts. Judge Tigar also ordered Keslinke to pay $1,427,916 in restitution to the victims of the charged crimes. Judge Tigar also sentenced Keslinke to a three-year period of supervised release.
Assistant U.S. Attorneys Aaron Wegner and David Countryman are prosecuting the case with the assistance of Vanessa Vargas and Carolyn Jusay. The prosecution is the result of an investigation by the DEA and IRS. The Contra Costa Sheriff’s Office and Livermore Police Department also provided assistance during the investigation. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations.
Daniel E. Lurye Sentenced for Distribution of MethamphetamineRead the Press Release
FORT WAYNE – The United States Attorney for the Northern District of Indiana, David Capp, announces that on April 21, 2016, Daniel E. Lurye, 39, of Phoenix, AZ was sentenced to 140 months imprisonment and 5 years supervised release following his plea of guilty to distribution of methamphetamine.
According to documents filed in the case, on or about April 4, 2014, Lurye knowingly and intentionally distributed more than 50 grams of methamphetamine.
This investigation was conducted by the United States Drug Enforcement Administration and United States Postal Inspection Service along with the assistance of the Indiana State Police, LaGrange County Sheriff’s Department and Kendallville Police Department. This case was prosecuted by Assistant United States Attorney Lovita Morris-King.
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Corporate Executive Sentenced to Six Months in Federal Prison and Fined $5,000Read the Press Release
DALLAS — Helen Tantillo, 59, of Austin, Texas, was sentenced today by U.S. District Judge Sam Sparks of the Western District of Texas to serve six months in federal prison, to be followed by a three-year term of supervised release, and pay a $5,000 fine. Tantillo was convicted in January 2016 in federal court in Austin on an indictment charging two counts of lying to Special Agents of the Federal Bureau of Investigation in the public corruption investigation of Dallas County Commissioner John Wiley Price and others. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas and U.S. Attorney Richard L. Durbin, Jr., of the Western District of Texas.
Tantillo was an executive at BearingPoint when the firm won a contract in 2005 to digitize Dallas County records. She will remain on bond; no reporting date was set.
At trial, the jury found that Tantillo lied in an interview with the FBI in June 2014, when she falsely claimed that a temporary $10,000 increase in Christian Campbell’s consulting fees was to make a charitable donation to the favorite charity of another Dallas County Commissioner. Contrary to her false statement, Tantillo knew that the increase was at least, in part, in order to pay Kathy Nealy.
The jury also determined that Tantillo told a second lie to FBI agents in that same interview when she claimed that, after an earlier interview with FBI agents, she called her former BearingPoint supervisor, who supposedly reminded her that the charitable donation was the reason for Campbell’s increased monthly payment. Phone records and other evidence at trial demonstrated that this call never happened.
The FBI and Internal Revenue Service Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Walt M. Junker and J. Nicholas Bunch and Deputy Criminal Chief Assistant U.S. Attorney Katherine Miller prosecuted the case.
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Child Molester Sentenced to 20 Years in Prison for Online Child Pornography OffenseRead the Press Release
Ocala, Florida – Senior U.S. District Judge Wm. Terrell Hodges yesterday sentenced Robert Toole (51, Ocala) to 20 years in federal prison for the online receipt of child pornography. Toole pleaded guilty on November 6, 2015.
According to court documents, in 2014, a Marion County Sheriff’s Office investigation into online child pornography resulted in the execution of a search warrant at Toole’s house in Ocala. There, deputies discovered computer equipment that contained more than 10,000 images of child pornography, many involving prepubescent children under the age of 12. In addition, Toole had many images of child pornography that he had taken of himself violating his daughter when she was a child. In powerful testimony during the sentencing hearing, Toole’s daughter described how her father’s conduct had begun when she was as young as three years old, and continued through her teenage years.
“This prosecution lent a voice to one of the many victims of child pornography, and gave closure to a young woman who has carried these wounds for many years,” said U.S. Attorney A. Lee Bentley, III.
“This criminal has committed one of the most heinous crimes imaginable,” said Susan L. McCormick, special agent in charge of HSI Tampa. “Because of the hard work of our HSI special agents, the Marion County Sheriff’s Office and the U.S. Attorney’s Office, this predator will spend the next 20 years in federal prison contemplating his crimes.”
This case was investigated by the Marion County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Daniel C. Irick.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
California Man Sentenced for Marijuana and Money Laundering ConspiraciesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that James Parish, 31, of Carlsbad, California, who was convicted of conspiracy to distribute 100 kilograms or more of marijuana and money laundering conspiracy, was sentenced to 120 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that between January and September 2014 the defendant sent packages of marijuana from the Carlsbad, California area to Western New York. The marijuana was then distributed and more than $800,000 in proceeds shipped back from Western New York to the defendant in California.
The investigation featured numerous successful law enforcement interceptions and discoveries. For example, On August 21, 2014, the Drug Enforcement Administration seized a package that a person was attempting to ship at a local shipping company. The package contained $66,705 in United States currency. On that same date, the DEA seized a second package containing $77,000 in United States currency that was shipped to a shipping company in Carlsbad, California. On September 26, 2014, DEA agents executed a search warrant at co-conspirator Benjamin Golembiewski’s Buffalo residence and seized $224,123 in United States currency.
Regarding seizures of drugs, on September 18, 2014, Parish dropped off two large boxes at the shipping company in Carlsbad to be shipped to the Buffalo area. These boxes were seized by the DEA and found to contain a total of 30 pounds of marijuana.
The investigation concluded on September 30, 2014, when the defendant traveled from California to Buffalo to collect approximately $600,000 in payments for the shipped marijuana. Parish, who was arrested at the Buffalo Niagara International Airport, was planning to stay at a hotel on Genesee St. in Cheektowaga. The investigation determined that Parish shipped a box to the hotel in his name, and upon locating the box, discovered that it contained an AirSoft Gun, a taser, a bullet proof vest, a knife, handcuffs, a flashlight, a tourniquet strap, a bandage kit and a GPS tracking device.
Defendant Golembiewski was sentenced to 37 months in prison.
Today’s sentencing is the result of an investigation on the part of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, and the Niagara Frontier Transportation Authority Police, under the direction of Chief George W. Gast.
Businessman Indicted for Fraud and Money Laundering Involving Charter School ConstructionRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment against NATHIAN D. HOSSLEY, age 50, of Baton Rouge, Louisiana. The indictment charges the defendant with five counts of wire fraud, in violation of Title 18, United States Code, Section 1343, one count of mail fraud, in violation of Title 18, United States Code, Section 1341, and one count of engaging in monetary transactions in property derived from specified unlawful activity, in violation of Title 18, United States Code, Section 1957. The indictment also includes a forfeiture allegation which requires the defendant to forfeit the proceeds of his fraud if convicted.
The Indictment alleges that the defendant engaged in a scheme to defraud Bouma Construction ("Bouma"), a full-service construction company headquartered in Grand Rapids, Michigan, from March 2014 through December 2014. According to the Indictment, Bouma hired a company owned by the defendant, First Millennium Construction ("FMC"), to serve as a subcontractor in the construction of the Impact Charter School in Baker, Louisiana.
The Indictment further alleges that, unbeknownst to Bouma, the defendant provided false information in a "Qualification Statement" submitted to Bouma in connection with FMC’s bid for the Impact Charter School project. Additional allegations in the Indictment state that, without knowledge of the defendant’s history of federal convictions, Bouma hired FMC and agreed to pay over $1.2 million for its work on the project.
The Indictment further alleges that, after being hired, the defendant submitted, or caused to be submitted through FMC employees, multiple applications for disbursements of payments by Bouma to FMC in accordance with their contractual agreement. These applications for payments allegedly made false representations related to the amount of work that had been completed by FMC and the amount of money that FMC had paid and still owed to certain subcontractors. It also allegedly omitted the names of numerous subcontractors to which the defendant owed money for work on the project.
The defendant also allegedly forged and caused to be forged signatures of certain FMC subcontractors on joint check agreements and lien waivers for the purpose of obtaining $96,125 in joint checks from Bouma. According to the Indictment, the defendant then forged or caused to be forged the subcontractors’ endorsements on these checks, which were then deposited into the FMC’s bank account. This money was allegedly intended for the four subcontractors, not FMC. Finally, the Indictment alleges that the defendant arranged for another individual to submit a false affidavit claiming responsibility for the forged signatures, which was then sent to the District Attorney for the 19th Judicial District.
The Indictment alleges further that Bouma ultimately paid over $948,000 to FMC, less than half of which was paid to subcontractors to which the defendant owed money for work on the Impact Charter School project and that, during the relevant time period, the defendant diverted tens of thousands of dollars from FMC’s bank account to sources which benefitted him personally.
United States Attorney Green stated: "My office is committed to rooting out and aggressively pursuing dishonest businesspeople who seek to advance themselves through fraud. We look forward to continuing to work closely with the FBI and our other federal, state, and local partners to appropriately address any such criminality."
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Ryan Crosswell and Rene Salomon.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Baltimore Man Pleads Guilty to Conspiring to Commit Sex Trafficking of a MinorRead the Press Release
Baltimore, Maryland – Derrel Pitts, a/k/a “Foolish,” age 27, of Baltimore, pleaded guilty today to conspiracy to commit sex trafficking in connection with his prostituting of a minor female.
The guilty plea 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, Chief James W. Johnson of the Baltimore County Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Baltimore County State’s Attorney Scott Shellenberger.
According to court documents and statements at today’s plea hearing, from November 2014 through February 19, 2015, Pitts conspired with his “bottom” girl, a prostitute who also worked for Pitts, and others to commit sex trafficking of a 17 year old minor. Specifically, Pitts admitted that he instructed the minor victim on pricing for different sexual activities and that he received a portion of the money the victim received from sex customers for performing commercial sex acts.
On February 18 through February 19, 2015, Pitts transported and arranged for the transportation of the minor victim to a motel on Joppa Road in Towson, Maryland, where he directed the victim to engage in commercial sex acts with customers. Pitts rented the motel room and used, or allowed the victim to use, his cell phone to post photographs of the minor victim on an online website advertising her for prostitution and providing a telephone number where the victim could be reached for a “date,” or a commercial sex act.
On February 19, 2015, members of the Maryland Child Exploitation Task Force (MCETF), which included officers/agents from the Baltimore County Police and the Maryland State Police (MSP), rescued the victim at the motel in Towson after undercover officers made a “date” for prostitution with the victim, who directed them to her location. Prior to entering the motel room, law enforcement observed Pitts walking away from the room and towards the front of the motel.
As a result of his guilty plea, Pitts will be required register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Pitts and the government have agreed that if the Court accepts the plea agreement Pitts will be sentenced to between 78 and 96 months in prison followed by up to a lifetime of supervised release. U.S. District Judge George L. Russell III has scheduled sentencing for August 18, 2016 at 9:30 a.m.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force, created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Maryland State Police and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.