Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
19 April 2016
Latest Phase of Large Ice Methamphetamine Prosecution ConcludesRead the Press Release
ABINGDON, VIRGINIA – The latest phase of an investigation into a major ice methamphetamine conspiracy that distributed large amounts of the drug into Virginia, Kentucky, and Tennessee concluded yesterday in District Court with the sentencing of the final defendant, United States Attorney John P. Fishwick Jr. announced today.
J.B. Buckner, 56, of Radford, Virginia, pled guilty in October 2015 to one count of conspiring to possess with the intent to distribute methamphetamine. Yesterday in District Court, Buckner was sentenced to 70 months in federal prison and ordered to forfeit $25,000.
“The ice methamphetamine this conspiracy dealt in is dangerously addictive,” United States Attorney John P. Fishwick Jr. said today. “These individuals ran a complex operation that brought drugs from Southwestern United States into Virginia, Kentucky, and Tennessee. These actions had a devastating effect on our community and, for that, these individuals have been justly held accountable.”
Buckner is the last of ten defendants convicted as a result of the latest phase of a long-running investigative operation headed by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and U.S. Drug Enforcement Administration, which has been executed in multiple phases. The operation has dismantled a methamphetamine distribution network which brought numerous pounds of “ice” methamphetamine into the area.
According to evidence presented at yesterday’s sentencing hearing by Special Assistant United States Attorney Kevin L. Jayne, this particular phase of the ice methamphetamine conspiracy operated in Virginia, Kentucky and Tennessee. From approximately 2013–2014, individuals were receiving ice methamphetamine from sources of supply located in the Southwestern United States. The individuals would typically transport this methamphetamine to Virginia, Kentucky, and Tennessee via interstate highways, coordinating among themselves to avoid law enforcement drug interdiction efforts along the way. Return payment to the sources of supply would occur by hand-to-hand cash transactions or electronic money transactions.
Ultimately the District Court sentenced nine defendants in this phase to terms of imprisonment. The District Court also ordered certain defendants to forfeit 25 illegal firearms, including assault-style rifles; $160,000 in proceeds from the crime and approximately 10 acres of real property in Abingdon, Virginia, which was used in commission of the crime.
The investigation of the case was conducted by the Bristol Office of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Bristol Office of the U.S. Drug Enforcement Administration, the Virginia State Police, the Sheriff’s Offices of Washington County, Russell County, Tazewell County, and Smyth County, the Commonwealth’s Attorney’s Offices of Russell County and Tazewell County and the police departments of Abingdon and Lebanon. Special Assistant United States Attorney Kevin L. Jayne prosecuted the case for the United States.
Las Cruces Residents Plead Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Two residents of Las Cruces, N.M., pleaded guilty today in federal court to methamphetamine trafficking charges.
David S. Thompson, 29, and Marlene C. Sandoval, 38, were arrested in Nov. 2015, on a criminal complaint charging them with methamphetamine trafficking charges on Oct. 16, 2015, in Doña Ana County, N.M. Thompson and Sandoval were arrested after law enforcement officers found crystal methamphetamine inside the vehicle Thompson and Sandoval were driving during a routine traffic stop. Thompson and Sandoval were subsequently indicted on Feb. 17, 2016, and charged with conspiracy and possession of methamphetamine with intent to distribute.
During today’s proceedings, Thompson and Sandoval each entered a guilty plea to a conspiracy to possess methamphetamine with intent to distribute charge. They admitted being pulled over for speeding on Oct. 16, 2015, by New Mexico Department of Transportation officers. After obtaining consent from Thompson and Sandoval to search their vehicle, the officers found 499 grams of methamphetamine in a shoe in the vehicle. Thompson and Sandoval also admitted that they intended to distribute the methamphetamine in Las Cruces.
At sentencing, Thompson and Sandoval each face a maximum penalty of 20 years in federal prison followed by not less than three years of supervised release. Both remain in custody pending sentencing hearings which have yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA, the New Mexico Department of Transportation Police, the Las Cruces Police Department and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force. Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Johnstown Woman will Spend 5 Years on Probation for Drug Trafficking ConspiracyRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to five years’ probation, the first year of which to be served as home confinement, on her conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Donna M. Hawk, 50, of Johnstown, Pa.
According to information presented to the court, from Jan. 31, 2013, to April 23, 2013, Hawk, along with others, conspired to distribute less than 28 grams of cocaine base, in the form commonly known as “crack.”
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Hawk.
Inmate at United States Penitentiary at Canaan Charged with Assault on Corrections OfficerRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a grand jury in Scranton has indicted a federal inmate at the United States Penitentiary at Canaan for assaulting a federal corrections officer.
According to United States Attorney Peter Smith, the indictment charges Orlando Garcia-Mata, age 24, formerly of Texas, with punching a corrections officer in the face on March 22, 2016.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Prosecution has been assigned to Assistant United States Attorney Robert J. O’Hara
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty which can be imposed under federal law is 8 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Inmate at Federal Correctional Institute at Allenwood Charged with Assaults on Two Corrections OfficersRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a grand jury in Scranton has indicted a federal inmate at the Federal Correctional Institute at Allenwood for assaulting two federal corrections officers.
According to United States Attorney Peter J. Smith, the indictment charges Demetrius Catching, age 25, formerly of Lexington, Kentucky, with punching one corrections officer and kicking another corrections officer on March 7, 2016.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service
Prosecution has been assigned to Assistant United States Attorney Robert J. O’Hara
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty which can be imposed under federal law is 8 years of imprisonment, a term of supervised release following imprisonment, and a $100,000 fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Hazard Doctor, his Wife and their Clinic Convicted in Massive Drug Trafficking and Health Care Fraud SchemeRead the Press Release
LONDON, Ky.—A federal jury in London has convicted a doctor, his wife and their clinic of drug trafficking, health care fraud and money laundering, for orchestrating a scheme in which they made millions of dollars by unlawfully prescribing large amounts of prescription pills to citizens of eastern Kentucky.
Dr. James "Ace" Chaney, 51, was convicted of conspiracy to commit drug trafficking, 62 counts of illegal distribution of controlled substances, 2 counts of maintaining a premise for drug distribution, conspiracy to commit money laundering, 20 counts of money laundering, conspiracy to commit health care fraud and 84 counts of health care fraud.
Lesa Chaney, 50, the President and CEO of Ace Clinique of Medicine, LLC, was convicted of conspiracy to commit drug trafficking, 2 counts of maintaining a premise for drug distribution, conspiracy to commit money laundering, 20 counts of money laundering, conspiracy to commit health care fraud and 84 counts of health care fraud.
Ace Clinique of Medicine, LLC, was found guilty on over 180 counts of drug trafficking, health care fraud and money laundering.
The jury rendered its verdict after 13 hours of deliberation, following seven weeks of trial.
From 2006 to 2014, James and Lesa Chaney owned and operated Ace Clinique of Medicine, LLC, in Hazard, Ky. The evidence established that Dr. Chaney pre-signed prescriptions for controlled substances, to be filled out by clinic staff while he was vacationing or otherwise not present at the clinic. The evidence also established that Dr. Chaney knowingly provided prescriptions for controlled substances to individuals who were diverting the pills for sale and to individuals that were abusing the drugs. Dr. Chaney also required all of his patients to undergo monthly urine drug screening to test for the presence of the drugs he prescribed, as well as illegal narcotics. When the results showed the patients were not taking the prescribed pills, or were taking illegal narcotics, Dr. Chaney directed his staff to alter the test results to falsely indicate an appropriate result. These fraudulent test results were then submitted to Medicare, Medicaid and private insurers for payment. From 2009 to 2011, they billed Medicare for more urine drug screen tests than any provider or laboratory in Kentucky.
The evidence at trial also showed that patients would frequently wait eight hours or longer, each month, to be seen by a health care provider at the clinic. The examinations would then typically be of short duration and the patient would receive a prescription for controlled substances. The Chaneys would nonetheless bill for an office visit that falsely indicated a thorough physical examination had occurred. The evidence further showed that the Chaneys billed Medicare for work Dr. Chaney allegedly did while he was vacationing outside of the United States. Dr. Chaney also wrote prescriptions for controlled substances to an employee of the clinic, which he then took for himself.
The Chaneys billed Medicare more than $9,500,000 and billed Medicaid more than $6,300,000 during the period of the conspiracy. The money the Chaney’s made from the scheme was used for personal purchases, including a private plane, houses, vehicles, travel and personal luxury items.
"The defendants in this case combined a massive illegal drug distribution scheme with a massive healthcare fraud scheme," said Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky. "The resulting criminal enterprise harmed countless Kentuckians, and sent the fraudulent bill to the American taxpayer. It is difficult to overestimate the importance of this victory in the effort to rid eastern Kentucky of this sort of criminal conduct, which has caused so much damage to our communities. Our trial team and our law enforcement partners at the FBI and the Kentucky State Police performed admirably in bringing these defendants to justice and they deserve our thanks."
"The devastation of patients’ lives to facilitate the Chaney’s’ lavish lifestyle caused great harm to the people of southeastern Kentucky," said Howard S. Marshall, Special Agent in Charge of the Louisville Division of the FBI. "The Federal Bureau of Investigation and its law enforcement partners will stay committed to the dismantlement of significant drug trafficking organizations in Perry County and the rest of Kentucky."
U.S. Attorney Harvey, Special Agent in Charge Marshall and Richard Sanders, Commissioner of the Kentucky State Police, jointly announced the verdict.
The investigation was conducted by the FBI and the Kentucky State Police.
Assistant U.S. Attorneys Roger West and Andrew Sparks prosecuted this case on behalf of the federal government.
The Chaneys are scheduled for sentencing on August 25, 2016, at 1:30 p.m. The most serious offenses carry a maximum penalty of 20 years in prison. The Court, however, will impose sentence after consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
Georgia Man Sentenced to 175 Months in Federal Prison for Wire Fraud, Money Laundering and Theft ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jorge Salazar, age 58, of Georgia was sentenced today to 175 months’ (14 years and six months) imprisonment by United States District Court Judge Sylvia H. Rambo in Harrisburg for wire fraud, money laundering and aggravated theft charges.
According to United States Attorney Peter Smith, the charges against Salazar were a result of a fraudulent investment scheme he carried out in Adams County, Pennsylvania from 2012 through 2014. As part of the scheme, Salazar falsely represented he was a lawyer and investor from Atlanta, Georgia. He also represented that investors could invest up to $49,999 through his company and that investors would receive a return of up to three times their investment within six months. Approximately, 19 people invested $360,000 with Salazar. Once he received the investors’ monies, Salazar fled to Kentucky where he was arrested.
The investigation revealed that Salazar spent a significant percentage of the fraud proceeds to purchase an RV and a home in Kentucky.
Salazar was indicted by a grand jury in Harrisburg in November 2014, as a result of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigations, and the Pennsylvania State Police. The case was prosecuted by Assistant United States Attorney Joseph J. Terz.
# # #
Former Tyler Insurance Agent Sentenced to 36 Months in Prison for $5.4 Million Dollar “Ponzi” SchemeRead the Press Release
TYLER, Texas – A 64 year old former insurance agent was sentenced to serve 36 months in federal prison for wire fraud and money laundering announced U.S. Attorney John M. Bales today.
Robert Hahn, a former Tyler, Texas insurance agent entered a guilty plea on November 19, 2015 to charges of wire fraud and money laundering. At that hearing Hahn admitted that he started a fraudulent scheme, commonly known as a “Ponzi scheme” before January 2007 and he continued it until he was confronted by F.B.I. and I.R.S. agents on February 4, 2015. Hahn admitted he falsely represented to approximately 100 different individuals that he was spearheading fund raising for a group of doctors, in Tyler, Texas, who were raising capital for debt retirement, construction of, or improvements to, health care facilities, and medical equipment purchases. Hahn told potential “investors” that the group of doctors he represented would pay an annual interest rate of 20% on their loans or investments. Hahn then collected funds from the “investors” and deposited them into his insurance business or personal checking accounts. Hahn would periodically make “interest” payments, in cash, to investors, representing a 20% return on the fictitious loans or investments, utilizing funds he had derived from earlier investors. Upon request, Hahn would return principle loan or investment funds to the investors in the form of a check drawn on his insurance or personal checking accounts, using funds he had received from other investors. Hahn admitted that there never was a group of doctors raising capital. Hahn admitted he simply made up this story to obtain and maintain funds for his personal use.
As a result of the scheme, Hahn collected approximately $5,479,600.00 from ninety-four (94) individuals. In furtherance of the scheme, during the relevant time period, Hahn returned or distributed approximately $4,072,470.00, in proceeds from the fraud scheme to some of the individuals in the form of returned “principle” and “interest” or “earnings”. Thirty-one (31) of these individuals enjoyed a combined total, net gain of $1,407,130.00; while sixty-six (66) of them suffered a combined total net loss of $1,757,280.00.Hahn cooperated fully with investigators from the onset of the investigation and voluntarily surrendered all of his accounting records pertaining to the scheme. As part of his plea agreement with the government, Hahn agreed to surrender the net proceeds from the sale of his home and the sale of his insurance business to the court for restitution to his victims. In addition, since the investigation began in February, Hahn has deposited 20% of his monthly gross income into an account designated for victim restitution. At the time of sentencing the balance in that account had reached approximately $16,000.00. Hahn also agreed to assign the proceeds from the sale of 80,500 shares of stock in a privately owned corporation to the court for distribution to the victims; however, at this point in time there is no commercial market for those shares.
The government initiated collection proceedings against the fraud scheme proceeds paid to investors who profited from their “investments” with Hahn. At the time of sentencing, those proceedings had generated approximately $146,000.00 which will be deposited into an account designated for victim restitution.
This case was investigated by the Federal Bureau of Investigation, Tyler Office, the Internal Revenue Service, Criminal Investigations Division, the Texas State Securities Board, and prosecuted by Assistant U.S. Attorney Jim Noble.
Former Tax Preparer from Adrian, GA, Sentenced to 46 Months in Prison for Preparing False Tax ReturnsRead the Press Release
Statesboro, GA: Lakesia Mills, 35, of Adrian, Georgia, was sentenced last week by United States District Court Chief Judge Lisa Godbey Wood to 46 months in prison for making false statements on 784 amended tax returns.
Evidence presented at hearings in this case showed that Mills prepared amended tax returns for others that exploited the First Time Homebuyer’s Credit. Mills fraudulently claimed her clients qualified for the $8,000 credit, and then supported the false returns with phony bank statements, closing documents, and insurance records. The 784 amended returns prepared by Mills exposed the United States to a potential loss of $6,012,500, approximately $572,132 of which was distributed by the IRS before the scheme was detected.
United States Attorney Edward J. Tarver said, “This defendant stole hundreds of thousands of dollars from the U.S. Treasury, and would have stolen much more if not swiftly detected by the IRS. Her sentence should serve as a lesson to all who are tempted to follow her example, as our office will advocate a lengthy prison stay for anyone who lies on tax returns and defrauds our tax system.”
“Lakesia Mills did a disservice to legitimate tax preparers who comply with the tax laws of the Internal Revenue Service,” said Veronica Hyman-Pillot, Special Agent in Charge, Atlanta Field Office. “Mills not only violated the integrity of our tax system, but also placed an unfair burden on hardworking taxpayers. Stealing from the U.S. Treasury is no different from stealing from your neighbors, your friends and your own community. Today’s sentence should serve as a warning to other return preparers that are considering similar criminal activities.”
In addition to her prison sentence, Mills was ordered to pay restitution, as well as serve 12 months of supervised release after she is released from prison. Regarding the length of the prison sentence, Tarver noted that there is no parole in the federal system.
IRS Special Agent Joshua Graham conducted the investigation of Mills. Assistant United States Attorney Jennifer Solari prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Secretary of Kentucky’s Personnel Cabinet Pleads Guilty to Accepting KickbacksRead the Press Release
LEXINGTON, Ky.—Timothy M. Longmeyer, the former Secretary of the Kentucky Personnel Cabinet, admitted in federal court today that he solicited and accepted over $200,000 in kickbacks from a private consultant during his tenure.
Longmeyer, 48, pleaded guilty to bribery of a public official, before U.S. District Judge Karen Caldwell.
Longmeyer admitted that, while serving as Secretary of the Personnel Cabinet, he solicited and agreed to accept $212,500, in exchange for assistance in securing multi-million dollar contracts for a consultant. Over the course of the scheme, Longmeyer received $197,500 in cash and $6,000 in straw campaign contributions to various political campaigns, for a total of $203,500.
Longmeyer oversaw the Kentucky Employees’ Health Plan ("KEHP") and used his position to persuade insurance companies, who provided KEHP healthcare coverage, to hire the consultant to organize focus groups and telephone surveys. In return, Longmeyer accepted recurring payments from the consultant, including cash and straw contributions.
According to the plea agreement, Longmeyer agreed to accept $90,000 from the consultant in November 2014 and $100,000 from the consultant in December 2014. The consultant later used the proceeds from contracts with Humana, Inc., to make a series of payments to Longmeyer between November 2014 and June 2015, totaling $175,000 in cash and $6,000.00 in straw contributions.
In addition, in September 2015, Longmeyer agreed to accept approximately $22,500 from the consultant. The consultant used the proceeds from a contract with Anthem Blue Cross Blue Shield to make two cash payments to Longmeyer, totaling $22,500.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Howard Marshall, Special Agent in Charge, Federal Bureau of Investigation, jointly announced the guilty plea. Assistant U.S. Attorneys Andrew T. Boone and Kathryn M. Anderson are prosecuting the case on behalf of the federal government.
Longmeyer is scheduled to be sentenced on August 18, 2016 at 1:00 p.m. He faces up to 10 years in prison and a maximum fine of $250,000. However, any sentence following a conviction would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
Former Secretary of Kentucky’s Personnel Cabinet Pleads Guilty to Accepting KickbacksRead the Press Release
Timothy M. Longmeyer, the former Secretary of the Kentucky Personnel Cabinet, admitted in federal court today that he solicited and accepted over $200,000 in kickbacks from a private consultant during his tenure.
Longmeyer, 48, pleaded guilty to bribery of a public official, before U.S. District Judge Karen Caldwell for the Eastern District of Kentucky.
Longmeyer admitted that, while serving as Secretary of the Personnel Cabinet, he solicited and agreed to accept $212,500, in exchange for assistance in securing multi-million dollar contracts for a consultant. Over the course of the scheme, Longmeyer received $197,500 in cash and $6,000 in straw campaign contributions to various political campaigns, for a total of $203,500.
Longmeyer oversaw the Kentucky Employees’ Health Plan (KEHP) and used his position to persuade insurance companies, who provided KEHP healthcare coverage, to hire the consultant to organize focus groups and telephone surveys. In return, Longmeyer accepted recurring payments from the consultant, including cash and straw contributions.
According to the plea agreement, Longmeyer agreed to accept $90,000 from the consultant in November 2014 and $100,000 from the consultant in December 2014. The consultant later used the proceeds from contracts with Humana Inc., to make a series of payments to Longmeyer between November 2014 and June 2015, totaling $175,000 in cash and $6,000 in straw contributions.
In addition, in September 2015, Longmeyer agreed to accept approximately $22,500 from the consultant. The consultant used the proceeds from a contract with Anthem Blue Cross Blue Shield to make two cash payments to Longmeyer, totaling $22,500.
U.S. Attorney Kerry B. Harvey for the Eastern District of Kentucky, and Special Agent in Charge Howard Marshall for the Federal Bureau of Investigation, jointly announced the guilty plea. Assistant U.S. Attorneys Andrew T. Boone and Kathryn M. Anderson are prosecuting the case on behalf of the federal government.
Longmeyer is scheduled to be sentenced on Aug. 18. He faces up to 10 years in prison and a maximum fine of $250,000. However, any sentence following a conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
Former Office Manager Pleads Guilty to Embezzling from Drilling and Blasting CompanyRead the Press Release
TULSA, Okla.—A former office manager with Dykon Explosive Demolition Company pleaded guilty today to embezzling from the Tulsa-based precision drilling and blasting contractor who estimated their total losses to be $884,890.08, announced United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
Monica Lynn Miller, 49, of Tulsa, was responsible for employee payroll and paying vendors. She was charged by an information on March 17, 2016. Sentencing is scheduled on July 27, 2016.
According to the plea agreement, Miller admitted that, from 2009 to March 2015, she devised a scheme to defraud Dykon Explosive Demolition Company. She admitted to using a company credit card for personal benefit, sent unauthorized wire transfers to her personal bank account, and falsified company bank statements and “QuickBook” entries to hide her fraudulent theft. Furthermore, Miller admitted that in March 2014, she fraudulently wired $3,450 from the company’s bank account to her personal bank account.
The maximum statutory penalty is 20 years in prison and a fine of $250,000. In addition, Miller faces a criminal forfeiture money judgment representing proceeds obtained as a result of her wire fraud scheme.
The case is being investigated by the Tulsa Police Department. Assistant U.S. Attorneys Trent Shores and Catherine Depew are prosecuting the case.
###
Former Mohegan Sun Vice President and Associate Indicted for Money Laundering Conspiracy and Other Federal ChargesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Vice President of Player Development for the Mohegan Sun Casino at Pocono Downs and an associate have been charged with multiple federal crimes in a 21count indictment returned by a federal grand jury in Scranton.
According to United States Attorney Peter Smith, Robert Pellegrini, age 50, of Fairview Township, and Mark Heltzel, age 51, of Dallas, are charged with conspiracy to commit money laundering, multiple counts of access device fraud and aggravated identity theft.
The grand jury alleged that Pellegrini, Heltzel, and an unindicted coconspirator defrauded the Mohegan Sun Casino at Pocono Downs by engaging in a scheme involving the use of stolen names in PINs (personal identification numbers) that were tied to players’ loyalty club cards.
It is alleged that, with the assistance of an unindicted coconspirator, Pellegrini used the stolen information to create duplicate player club cards, which he then loaded with “free play” credits. The fraudulently created cards were then allegedly given to Heltzel by Pellegrini for Heltzel to gamble with, primarily at poker slot machines. The indictment alleges that the scheme began in May 2014 and continued to April 2015, allegedly netting the defendants winnings in the approximate amount of $422,147.
The charges stem from an investigation by the Internal Revenue Service Investigations, the Pennsylvania State Police and the cooperation and assistance of the Luzerne County District Attorney’s Office. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years’ imprisonment and a $500,000 fine. The government is also seeking forfeiture of the proceeds of the alleged criminal acts. Each crime also carries a term of supervised release following 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.
# # #
Former Greene County Sheriff's Deputy Pleads Guilty to Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Greene County, Mo., Deputy Sheriff has pleaded guilty in federal court to receiving and distributing child pornography.
Juan T. Jones, 28, of Springfield, Mo., pleaded guilty before U.S. Magistrate Judge David P. Rush on Monday, April 18, 2016, to the charge contained in a Jan. 19, 2016, federal indictment. Jones was a Greene County Deputy Sheriff at the time of the offense.
An officer with the Southwest Missouri Cyber Crimes Task Force Officer opened the investigation on Sept. 25, 2015, after a CyberTip from Dropbox to the National Center for Missing and Exploited Children. Dropbox had discovered many video and image files that contained child pornography, which had been uploaded by Jones.
Investigators executed a search warrant at Jones’s residence on Jan. 6, 2016. While the warrant was being executed, they contacted Jones at his place of employment, the Greene County Sheriff’s Department. Jones admitted to investigators that he had looked at child pornography for as long as 10 years. Jones also admitted that he had exchanged child pornography images on Tumblr. Investigators discovered numerous images of child pornography on Jones’s cell phone.
Under federal statutes, Jones is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 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. 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 Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crime Task Force and the FBI.
Former East Cleveland detective sentenced to nearly six years in prison, last of three corrupt officers sent to prisonRead the Press Release
A former East Cleveland police detective was sentenced to nearly six years in prison for his role in a conspiracy in which he kept thousands of dollars from alleged drug dealers, much of which was seized through illegal searches and fabricated reports, law enforcement officials said.
Antonio Malone, 34, of Cleveland, was sentenced to 71 months in prison and ordered to pay more than $23,000 in restitution. He previously pleaded guilty to one count of conspiracy against rights and one count of Hobbs Act conspiracy.
Malone is the last of three former East Cleveland police officers sent to prison for their roles in the conspiracy.
Torris Moore, of South Euclid, was sentenced to nine years in prison after pleading guilty late last year to one count each of conspiracy against rights, Hobbs Act conspiracy and false statements to law enforcement and two counts of theft concerning programs receiving federal funds.
Eric Jones, of Cleveland Heights, was sentenced to nearly four years in prison after pleading guilty to one count of conspiracy against rights and one count of Hobbs Act conspiracy.
“These three officers are a disgrace to the badge they wore and the community they swore to protect,” said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio. “They personally profited from the drug trade that has ravaged East Cleveland. They deserve to be sent to prison for their extensive crimes, which undercut the credibility of law enforcement and the court system.”
“These officers acted like cunning criminals rather than honorable public servants who swore to protect and serve,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “They are now all behind bars for their reprehensible, unlawful conduct.”
“When detectives target and rob a drug dealer and then create false evidence to cover up their own crimes, those officers are Benedict Arnolds,” Cuyahoga County Prosecutor Timothy J. McGinty said. “They have betrayed all the dedicated law enforcement officers, alive and dead, who gave their lives upholding the law and protecting our communities. So this officer now deserves to switch places with the drug dealer whose conviction we had to vacate and who has been released from prison.”
Moore was a sergeant at the East Cleveland Police Department, where she supervised the Street Crimes Unit. Malone and Jones were detectives assigned to the Street Crimes Unit. The defendants were familiar with several drug traffickers, according to court documents.
From 2014 through June 2014, they conspired to unlawfully enter premises and exceed the scope of lawful entry, thereafter conducting unlawful searches and seizures, used their power to seize money and property for themselves under the guise of legitimate search warrants, and created and approved false reports, affidavits and other documents to conceal their illegal searches and seizures, according to court documents.
These illegal searches took place in East Cleveland but also outside city limits, in various locations throughout Greater Cleveland. The conspirators placed false and inaccurate information in police reports. This false information was used to obtain search warrants, according to court documents.
The conspirators seized money and property during these searches, and diverted some of the seized money and property for their own use. Malone provided false information to the Cuyahoga County Prosecutor’s Office about certain investigative techniques in order to conceal their illegal conduct, including attributing information to a confidential informant that did not exist, according to court documents.
For example, on Sept. 10, 2012, Jones presented an affidavit to an East Cleveland Municipal Judge, which the conspirators knew contained false and misleading statements. The judge, unaware of false information, issued a search warrant for a home on Sheldon Avenue. Moore, Malone, Jones and another officer then executed the search warrant and seized $20,000. On Sept. 11, Moore, Malone and Jones met at a park in East Cleveland and divided a portion of the $20,000, which each officer receiving between $2,000 and $3,000. Jones then authored a report reflecting that they had seized a total of $11,173, according to court documents.
On June 20, 2013, SCU officers, including Moore, searched a home on East 85th Street. Malone, without a search warrant, forced his way into a room that was secured by a padlock and seized approximately $100,000 in cash. Moore, Malone and Jones removed a portion of the cash before causing the remainder to be secured in the East Cleveland Police Department’s evidence room. Later that day, the three officers met at an East Cleveland park and divided the money, with each receiving about $10,000. Malone later wrote the search resulted in the recovery of $74,670, according to court documents.
On June 19, 2014, Malone encountered a parked car driven by a known drug trafficker, identified in the indictment only as M.M. Malone arrested M.M., who told the officer he had approximately $11,000 or $12,000 in the car’s glove box. Malone agreed to release M.M. but insisted on towing the car. Malone said: “I looked out for you. You gotta look out for me,” before instructing M.M. to get the cash from the glove box but to leave behind $3,000. Malone removed $3,000 from M.M.’s car but did not list the money when he completed the vehicle’s inventory form, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Edward F. Feran following an investigation by the Federal Bureau of Investigation – Cleveland Division, with assistance from the East Cleveland Police Department and Cuyahoga County Prosecutor’s Office.
Former Day Care Operator Pleads Guilty to Tax FraudRead the Press Release
WASHINGTON - Ruth G. Leach, 53, who owned and operated a day care center in the District of Columbia, pled guilty today to a federal tax evasion charge for failing to turn over more than $260,000 in payroll taxes that were withheld from her employees, announced U.S. Attorney Channing D. Phillips and Special Agent in Charge Thomas Jankowski of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Leach, of Upper Marlboro, Md., pled guilty in the U.S. District Court for the District of Columbia to a charge of willfully failing to pay over employment taxes. The charge, a felony, carries a statutory maximum of five years in prison and potential financial penalties. Under federal sentencing guidelines, Leach could face a likely range of 18 to 24 months in prison and a fine of up to $75,000. She also must pay $263,153 in restitution to the IRS. The Honorable Senior Judge Royce C. Lamberth scheduled sentencing for June 28, 2016.
According to the government’s evidence, Leach owned and operated a business called Little Angels Child Care Center, Inc., which provided child care services for toddlers and young children. From 2006 through 2010, she ran the day-to-day operations of the business, which at various times employed several teachers and staff. She paid wages to her employees and deducted payroll taxes, including federal income, Social Security, and Medicare taxes.
For the first quarter ending March 2006 through the fourth quarter ending December 2010, Leach willfully failed to truthfully account for the payroll taxes withheld from the wages of Little Angels Child Care Center employees. She failed to pay over a total of $263,153 in payroll taxes, instead keeping and using the funds for her personal expenses. She did not report this money in her own personal income taxes.
In announcing the plea, U.S. Attorney Phillips and Special Agent in Charge Jankowski commended the work of those who investigated the case from IRS-Criminal Investigation. They also acknowledged the assistance of Paralegal Specialist Kristy Penny of the U.S. Attorney’s Office for the District of Columbia. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Lionel André and Derrick Williams, who prosecuted the case.
Former Barrio Azteca Member Sentenced to 200 Months in Federal Prison for Distribution of Heroin Resulting in DeathRead the Press Release
This morning, 32-year-old former Barrio Azteca member Danny Ortiz of El Paso was sentenced to 200 months in federal prison for distribution of heroin resulting in death announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division and Socorro Police Chief Carlos Maldonado.
In addition to the prison term, Senior United States District Judge David Briones ordered that Ortiz be placed on supervised release for six years after completing his prison term.
In April 17, 2015, Socorro Police officers discovered the body of a suspected heroin overdose victim, 35–year-old Kellie Kondrat. The resulting investigation revealed that the defendant supplied the heroin which caused her death.
On February 10, 2016, Ortiz pleaded guilty to one count of conspiracy to possess with intent to distribute over 200 grams of heroin. By pleading guilty, Ortiz admitted that on several occasions between March 5, 2015, and May 19, 2015, he delivered heroin to the deceased as well as other individuals.
Ortiz has remained in federal custody since his arrest by HSI agents on May 19, 2015.
“HSI along with our local law enforcement partners will continue to aggressively investigate those who engagein drug trafficking, and stop them from pumping poison into our communities,” said Waldemar Rodriguez. “This lengthy sentence sends out a clear message to transnational criminal organizations that operate in the El Paso area - the bigger the crime, the longer the time.”
This case was investigated by the Immigration & Customs Enforcement (ICE) Homeland Security Investigations (HSI) together with the Socorro Police Department.
Fifth Defendant Pleads Guilty to Armed Robbery ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to his role in a conspiracy to commit several armed robberies at restaurants in the metropolitan area.
William H. Parker III, 21, of Kansas City, pleaded guilty before U.S. District Judge Beth Phillips to participating in the conspiracy to commit armed robberies, to one count of armed robbery and to one count of using a firearm during a crime of violence.
Four co-defendants have also pleaded guilty to their roles in the armed robbery conspiracy and to related charges. Mikah M. Labayen, 20, of Blue Springs, was sentenced to six years in federal prison without parole. Renargo L. Martin, 46, of Kansas City, Mo., was sentenced to five years in federal prison without parole. Jeremy Hunter, also known as “Heat,” 26, of Kansas City, was sentenced to 10 years in federal prison without parole. Isiah G. Etienne, 21, of Blue Springs, is scheduled to be sentenced on May 10, 2016.
Parker, Labayen, Martin, Hunter and Etienne each admitted that he participated in a conspiracy to rob several fast food restaurants in the Kansas City area in the fall of 2014. Parker, Labayen and Etienne were employed at a Chipotle restaurant in Blue Springs. Using their knowledge of procedures commonly used by such establishments, conspirators would wait until the end of a business day, and then rob restaurants by waiting until an employee opened a door to take trash out of the premises. They rushed the door to gain access, and then forced the manager or shift supervisor to give them access to the restaurant’s safe. Conspirators threatened restaurant employees with an assault rifle in order to force their cooperation.
Conspirators robbed a Chipotle restaurant in Lee’s Summit, Mo., on Nov. 3, 2014, taking $1,600; a Burger King restaurant in Independence, Mo., on Nov. 10, 2014, taking $914 and again on Nov. 30, 2014, taking $565; and a Chipotle restaurant in Blue Springs on Nov. 16, 2014, taking $6,800.
Following these robberies, Parker, Etienne and Labayen were captured after an attempted robbery of a motel.
Under federal statutes, Parker is subject to a sentence of up to 40 years in federal prison without parole, plus a consecutive sentence of at least seven years in federal prison without parole for the firearm offense. 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 Edwards. It was investigated by the Kansas City, Mo., Police Department, the Lee’s Summit, Mo., Police Department, the Blue Springs, Mo., Police Department and the FBI.
Federal jury finds Kentucky veteran guilty of defrauding the Veterans Health AdministrationRead the Press Release
HUNTINGTON, W.Va. – Acting United States Attorney Carol Casto announced that a federal jury sitting in Huntington returned a guilty verdict yesterday in the trial of a Kentucky veteran for defrauding the Veterans Health Administration. Phillip M. Henderson, 50, of Olive Hill, Kentucky, was convicted following a five-day jury trial. The jury required only an hour of deliberations before finding Henderson guilty.
Henderson served in the United States Army from 1983 to 1986. After he was discharged, Henderson filed multiple claims for benefits with the United States Department of Veterans Affairs (VA). In 1995, Henderson received a diagnosis from the VA of Retinitis Pigmentosa, an inherited and degenerative eye disease which can lead to total blindness. After this diagnosis, Henderson continued to undergo VA eye examinations through 2013, during which time VA medical staff continued to conduct tests to determine the extent of his vision loss. The results of these tests relied significantly, if not completely, on Henderson’s cooperation and accurate reporting of his vision levels.
Witnesses for the United States, including four medical doctors, testified that Henderson falsely responded to the vision testing and significantly misrepresented his vision loss. Witnesses further testified that Henderson pretended he could barely read the letters on the eye charts and pretended that his peripheral vision was severely reduced. As part of his scheme to defraud the VA, Henderson did not reveal that he had a Kentucky driver’s license and that he could and did drive.
Henderson received the maximum disability and healthcare benefits he could get for his claimed disability and vision loss. VA benefits representatives testified that from 1996 to 2015, Henderson received approximately $697,000 in disability compensation. In addition to this monthly monetary compensation, Henderson also received an $11,000 grant to purchase an automobile in 2006, which was intended for another person to drive Henderson, and another $10,000 grant towards the installation of an in-ground swimming pool, which was intended for his exercise and to maintain his well-being as a blind veteran. Further, Henderson received the maximum healthcare benefits possible for him and his family based upon his claimed diagnosis and vision loss. During the same time period, Henderson received the highest priority in getting medical treatment from the VA, free medical and dental services, free prescriptions, reimbursement for travel from his home in Kentucky to the VA Medical Center in Huntington for medical appointments, free training for the blind in Connecticut and Alabama for extended periods of time, and free equipment designed to assist the blind, such as canes, computers, talking telephones, and night vision goggles. In sum, Henderson received over $75,000 in VA healthcare benefits to which he was not entitled.
Henderson faces up to 10 years in federal prison, a fine of up to twice the gain or loss that resulted from his conduct, and an order of restitution when he is sentenced on August 1, 2016.
The United States Department of Veterans Affairs – Office of Inspector General, Pittsburgh Resident Agency, and the Federal Bureau of Investigation conducted the investigation. Assistant United States Attorneys Eumi Choi and Jennifer Rada Herrald handled the prosecution and tried the case before a federal jury. Chief United States District Judge Robert C. Chambers presided over the trial.
-
Follow us on Twitter: SDWVNews
-
Fargo Man Pleads Guilty in Connection with Shooting During Taco John’s RobberyRead the Press Release
FARGO - U. S. Attorney’s Christopher C. Myers announced that on April 19, 2016, Carl Eugene Smith, 24, Fargo, ND, pled guilty before U. S. District Judge Ralph R. Erickson to a two-count Indictment charging him with Interference with Commerce by Threats or Violence- Hobbs Act Robbery, as well as Use of a Firearm in Furtherance of a Crime of Violence.
On or about September 3, 2015, Smith and other co-conspirators were involved in robbing the Taco John’s restaurant located at 2601 32nd Ave. S., Fargo, as the restaurant was beginning to close. During the robbery Smith fired two shots, with one of the shots hitting an employee in the leg, causing injury that required medical treatment.
Judge Erickson has set sentencing for July 15, 2016, at the U. S. District Court in Fargo, ND.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) as well as the Fargo Police Department.
U. S. Attorney Christopher C. Myers is prosecuting the case.
Fairfax Man Pleads Guilty to Sex Trafficking a 15 Year-Old GirlRead the Press Release
ALEXANDRIA, Va. – Derek Leon Mantilla, 21, formerly of Fairfax, pleaded guilty today to sex trafficking of minor.
Based on court documents, from at least November 2014 through February 2015, Mantilla, together with Ismael Antonio Mendez and Caitlyn Ann Smith, recruited a 15 year-old girl to engage in commercial sex acts to pay off a debt that was owed to Mantilla by Mendez. The adults taught the girl how to prostitute, took photos of her to use in advertisements, and created advertisements for commercial sex that were posted on the Internet. The three adults knew the girl was a minor and instructed her to lie about her age to customers. Over a three month period, the adults traveled with the girl through various states, including Virginia, for the purposes of advertising and engaging the girl in commercial sex. During that period, the girl worked seven days a week and saw an average of 10 to 12 customers a night. Once the girl had earned enough to pay off the debt, the Mantilla directed her to leave the adults, and she did.
Co-defendants Ismael Antonio Mendez and Caitlyn Ann Smith previously pleaded guilty in the case.
Mantilla faces a mandatory minimum of 10 years and a maximum penalty of life in prison when sentenced on July 8. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler, Jr., Chief of the Fairfax County Police Department, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Whitney Dougherty Russell and Special Assistant U.S. Attorney Lauren Britsch are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-91.
Estranged Joplin Couple Sentenced to 20 Years for Child Porn After Reporting Each OtherRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man and woman were sentenced in federal court today for receiving child pornography over the Internet after the estranged couple turned each other in to law enforcement.
Ernest “Andy” Britten, 37, of Joplin, Mo., and his ex-wife, Kendra Britten, 34, of Miami, Okla., formerly of Joplin, were sentenced in separate appearances before U.S. District Judge Stephen R. Bough. Ernest and Kendra Britten were each sentenced to 20 years in federal prison without parole, the maximum statutory penalty. The court also ordered them to each pay a $40,000 fine and sentenced them to supervised release for the rest of their lives following incarceration.
On Jan. 19, 2016, Kendra Britten pleaded guilty to receiving child pornography over the Internet. On Oct. 5, 2015, Ernest Britten pleaded guilty to receiving child pornography over the Internet.
On Nov. 10, 2011, Kendra Britten brought a computer into the Joplin Police Department because there was child pornography on the computer. The computer, a Smildon Raidmax Gaming Deluxe, was utilized by Kendra and her then-husband, Ernest Britten. Kendra Britten decided to turn in the computer after Ernest Britten threatened to report her for possessing child pornography.
Investigators discovered 59 videos and 29 images of child pornography on the computer. The videos included children ages 3 to 14. The videos included bondage. According to court documents, the Brittens utilized a peer-to-peer file-sharing network to download child pornography.
Officers were unable to locate the Brittens and the case was suspended. On Jan. 8, 2014, officers were contacted by the Miami, Okla., Police Department, which requested information for their investigation of the Brittens for manufacturing child pornography and sexually abusing an 8-year-old victim.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crime Task Force and the Missouri State Highway Patrol.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Elma Man Arrested, Charged with Possession and Receipt of Child PornographyRead 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 Kevin D. Waczkowski, 31, of Elma, NY, was arrested and charged by criminal complaint with possession and receipt of child pornography. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 20 years and a fine of $250,000.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that according to the complaint, on April 15, 2016, following an online undercover investigation, a search warrant was executed at the residence of the defendant who is a maintenance technician with the Iroquois Central School District. Law enforcement officers seized a desktop computer and a laptop computer. An initial forensic analysis recovered images of child pornography.
The complaint is the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes the Buffalo Police Department, Cheektowaga Police Department, and Niagara County Sheriff’s Office.
Elkins man pleads guilty to role in counterfeit money schemeRead the Press Release
ELKINS, WEST VIRGINIA – Marc G. Collett, 34, of Elkins, pled guilty to fraudulently using counterfeit money to obtain authentic currency and other goods, United States Attorney William J. Ihlenfeld, II, announced.
Collett conspired with other individuals to repeatedly exchange counterfeit money in order to obtain authentic United States currency, debit cards, and merchandise in Harrison County, West Virginia in late 2014.
Collett pled guilty to one count of “Uttering Counterfeit Obligations or Securities – Aiding and Abetting.” He faces up to 20 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah Montoro prosecuted the case on behalf of the government. The United States Secret Service, the Clarksburg, West Virginia Police Department, and the West Virginia State Police are investigating.
Draper Woman Sentenced to Four Years Imprisonment After Passing $35 in Counterfeit CurrencyRead the Press Release
ABINGDON, VIRGINIA – A local woman, who previously pled guilty to a pair of federal counterfeiting charges, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced today.
Kendra Lane Dalton, 38, of Draper, Virginia, was serving a sentence of supervised release from a 2014 conviction for possessing and passing counterfeit currency when she was arrested in November 2015 after passing $35 in counterfeit currency at convenience stores in Abingdon and Washington County, Virginia. At the time of her arrest, she was in possession of almost $1,300 in additional counterfeit bills.
She pled guilty in February 2016 to two counts of possessing and attempting to use counterfeit United States currency. Today in District Court, Dalton was sentenced to two years imprisonment on those charges and an additional two years for violating the terms of her supervised release. The sentences are to be served consecutively. She was also ordered to repay the stores.
“Defending and protecting the integrity of our currency is imperative to maintaining the public’s trust in government,” United States Attorney John P. Fishwick Jr. said today.
According to evidence presented at previous hearings by Assistant United States Attorney Jennifer R. Bockhorst, Dalton admitted that on two separate occasions, November 8, 2015 and November 9, 2015, she attempted to pass counterfeit U.S. currency. At the sentencing hearing, Dalton also admitted to having manufactured the counterfeit currency in her possession.
The investigation of the case was conducted by the Washington County Sheriff’s Office and the United States Secret Service. Assistant United States Attorney Jennifer R. Bockhorst prosecuted the case for the United States.
Department of Justice Releases the 2016 National Strategy for Child Exploitation Prevention and InterdictionRead the Press Release
Attorney General Loretta E. Lynch today announced that the Department of Justice released the 2016 National Strategy for Child Exploitation Prevention and Interdiction. The strategy provides a comprehensive threat assessment of the nature and scope of the current dangers facing our nation’s children, including child pornography offenses, sextortion and live-streaming of child sexual abuse, child sex trafficking, child sex tourism and sex offense registry violations. For the first time, the strategy also dedicates an entire section to the unique challenges confronting child exploitation in Indian Country.
“No matter what form child exploitation takes and no matter how technologically advanced it is, it demands the full attention of law enforcement, policymakers, community leaders and service providers alike,” said Attorney General Loretta Lynch. “This strategy examines existing efforts, assesses new threats and plots a course for the future. It identifies innovative ways in which the federal government and its partners can address child exploitation. And it reaffirms our unwavering commitment to ensure that every child in America is able to reach his or her potential, free of violence and abuse.”
The strategy analyzes the work of federal law enforcement agencies and prosecutors, as well as other agencies and offices that play important roles by supporting victims, providing grants to state, local and tribal governments and non-profit partners and educating the public about the dangers of child exploitation. 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.
Despite the vigorous and coordinated efforts to combat the different aspects of child exploitation, the department also recognized that more work remains and that the response must continue to evolve with the threat. To that end, the strategy outlines four goals and objectives that build upon the department’s accomplishments in combating child exploitation: investigations and prosecutions; outreach and education; victim services; and policy initiatives.
As part of its public outreach efforts, the department is also unveiling a public service announcement that specifically addresses the issue of sextortion – a crime where someone threatens to distribute your private and sensitive material if you don’t provide them images of a sexual nature, sexual favors or money. Made in conjunction with the National Center for Missing and Exploited Children, the video highlights the ways in which malicious actors can use the internet to obtain and use private material to extort innocent individuals of all ages. The announcement concludes by directing individuals with tips or leads regarding suspected crimes of sexual exploitation to file a report at www.cybertipline.org.
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. 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.
Crack-Cocaine Supplier and Dealer for New Jersey Grape Street Crips Gang Plead Guilty to Drug Trafficking ChargesRead the Press Release
NEWARK, N.J. – Two Newark, New Jersey, men admitted their roles in a drug trafficking conspiracy controlled by the New Jersey set of the Grape Street Crips, U.S. Attorney Paul J. Fishman announced today.
Leonardo Arroyo, a/k/a “Leo,” 32, pleaded guilty today before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with conspiracy to distribute 280 grams or more of crack-cocaine. Rakeem Hankerson, a/k/a “Rocco,” 25, pleaded guilty yesterday before U.S. District Judge Madeline Cox Arleo to a superseding information charging him with conspiracy to distribute 28 grams or more of crack-cocaine.
According to documents filed in this case and statements made in court:
The New Jersey Grape Street Crips gang controlled drug trafficking and other criminal activities in various areas of Newark, including the neighborhood of 6th Avenue and North 5th Street. Arroyo supplied both cocaine and crack-cocaine to gang members who used and shared a dedicated cell phone to accept orders for, and distribute, thousands of clips of crack-cocaine to other crack-cocaine distributors. These gang-members included Hakeem Vanderhall, a/k/a “Keem,” a/k/a “Sugar Bear,” Eric Concepcion, a/k/a “Eddie Arroyo,” a/k/a “E-Wax,” a/k/a “Wax,” Tyquan Clark a/k/a “Tah,” Christopher Coelho, a/k/a “Brazil,” and Rashan Washington, a/k/a “Shoota.”
Hankerson was a member of the New Jersey Grape Street Crips who purchased distribution quantities of crack-cocaine from more senior gang members and sold it to retail level customers on the street.
To protect their gang and drug territory, the New Jersey Grape Street Crips operating in the 6th Avenue and North 5th Street location used “community guns” that were easily accessible to gang members. During the course of the investigation, law enforcement agents seized numerous firearms, including a .410 caliber assault rifle, a.45 caliber Thompson semi-automatic carbine, a 7.62 caliber assault rifle, and numerous semi-automatic handguns.
The charge to which Arroyo pleaded guilty carries a minimum of 10 years in prison, a maximum of life in prison, and a $10 million fine. The charge to which Hankerson pleaded guilty carries a minimum of five years in prison, a maximum of 40 years in prison, and a $5 million fine. Sentencing for Arroyo and Hankerson are set for July 26, 2016 and July 25, 2016, respectively.
Clark, Hamilton, Coelho, and numerous other gang members and associates have pleaded guilty to their role in the conspiracy and await sentencing. Charges against Vanderhall, Concepcion, and Washington remain pending. The charges and allegations against them are merely accusations, and they are presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, for the investigation leading to the guilty pleas. U.S. Attorney Fishman also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, police officers and detectives of the Department of Public Safety and Newark Police Division, under the direction of Director Anthony A. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the OCDETF/Narcotics Unit of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Defense counsel:
Arroyo: Susan Cassell, Ridgewood, New Jersey
Hankerson: John P. Holliday, Trenton, New Jersey
Convenience Store Owner Admits to Million Dollar Food Stamp Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – Sami Almuhtaseb, 45, of Smithfield, R.I., owner of Oasis Market, a convenience store located in Providence, pleaded guilty in federal court on Friday to defrauding the Supplemental Nutrition Assistance Program (SNAP) of more than $1.1 million dollars. Almuhtaseb admitted to the court that he allowed SNAP recipients to exchange food stamp benefits for cash, in return charging them a surcharge of 100% which he pocketed.
Sami Almuhtaseb’s guilty plea is announced by United States Attorney Peter F. Neronha, William G. Squires, Special Agent in Charge of the Northeast Region of the United States Department of Agriculture Office of Inspector General, and Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI.
According to information presented to the court, between November 2009 and December 2015, the defendant’s store redeemed $2,755,125 in SNAP benefits. Over $1,259,320.99 or 45% of the food stamp transactions were for transactions of $100 or more. Over 72% of the SNAP transactions at the store were from transactions in excess of $50. Legitimate SNAP transactions at a convenience store rarely involve a transaction of $50 or more.
According to court documents, at least $1.1 million dollars worth of the SNAP funds received by Almuhtaseb were the result of fraudulent transactions. These fraudulently obtained funds were deposited into two bank accounts controlled by Almuhtaseb. The defendant withdrew over $770,000 in cash or checks payable to himself from these two accounts. An analysis of bank records revealed that the Almuhtaseb also withdrew over $40,000 of cash from one of the accounts at ATMs located at casinos.
Appearing before U.S. District Court Chief Judge William E. Smith, Sami Almuhtaseb pleaded guilty to conspiracy to commit Supplemental Nutrition Assistance Program fraud and to money laundering.
He is scheduled to be sentenced on July 22, 2016.
The matter was investigated by the United States Attorney’s Office, the United States Department of Agriculture Office of Inspector General, and the FBI.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Clinton Man Pleads Guilty to Distributing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Clinton, Mo., man pleaded guilty in federal court today to distributing child pornography over the Internet.
Benjamin A. Bowers, 27, of Clinton, pleaded guilty before U.S. District Judge Dean Whipple to the charge contained in an April 15, 2015, federal indictment.
By pleading guilty today, Bowers admitted that he shared images of child pornography over the Internet using a peer-to-peer file-sharing network.
Law enforcement officers from the Clay County, Mo., Sheriff’s Department and the Missouri State Highway Patrol were conducting an investigation into peer-to-peer networks that shared child pornography online. In November 2013, they downloaded multiple images of child pornography that were being shared from Bowers’s computer.
Officers with the Clinton Police Department and the Missouri State Highway Patrol executed a search warrant at Bowers’s residence on Dec. 10, 2013, and seized several items, including computers and external components. Examiners discovered approximately 7,699 photos and 177 videos that contained child pornography, as well as 3,032 images of child erotica, on his computers and related media. The content includes depictions of toddlers and prepubescent minors.
Under federal statutes, Bowers is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 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. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the FBI, the Clinton, Mo., Police Department, the Missouri State Highway Patrol and the Clay County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Chinese National Sentenced to Home Detention for Role in Test Taking SchemeRead the Press Release
PITTSBURGH - A Chinese national has been sentenced in federal court to six months home detention on her conviction of conspiracy in relation to a scheme involving the fraudulent taking of college entrance exams, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Yue Zou, 22, of Blacksburg, Virginia.
According to information presented to the court, Yue Zou paid two individuals to take the SAT and TOEFL examinations on her behalf. Using counterfeit passports that contained Zou’s identifying information and the impostor’s photograph, two test-takers earned scores on the two college entrance examinations, which were then used by Zou to earn admission to Virginia Tech University. Zou was also able to obtain an F-1 Visa to enter the United States as a student on the basis of that fraudulent admission.
Prior to imposing sentence, Judge Conti stated that her sentence reflected the seriousness of the offense in that it allowed people who otherwise would not have been eligible to enter the U.S. to enter and also brought unfairness to the American education system.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security, Homeland Security Investigations and the Department of State for the investigation leading to the successful prosecution of Zou.
Champaign Real Estate Developer Pleads Guilty to Bank FraudRead the Press Release
Urbana, Ill. - A Champaign, Ill., real estate developer, Gene T. Hardwick, 73, entered a plea of guilty yesterday to a single count of bank fraud related to a $3.9 million bank loan he received in 2007.
Hardwick obtained the bank loan to construct a 64-unit apartment building in Champaign. After receiving the loan, Hardwick admitted that he used some of the loan proceeds to purchase the lot, at 611 East Park Street, but diverted other loan proceeds to personal expenses. During yesterday’s court proceedings, the government advised the court that these personal expenses included a trip to France and multiple credit card payments.
The fraud was discovered when a FDIC examiner drove to 611 East Park Street in Champaign to inspect the building and discovered an empty lot. At the time the FDIC examiner discovered the fraud, the amount loaned was approximately $2.4 million.
Under the terms of the plea agreement, the defendant has agreed to continue to make restitution payments to the bank and may be imprisoned for up to two years. Hardwick is scheduled for sentencing before U.S. District Judge Colin S. Bruce on Aug. 22, 2016.
The FDIC Inspector General’s Office conducted the investigation; Assistant U.S. Attorney Jason M. Bohm is prosecuting the case.
California Resident Pleads Guilty to Mortgage Fraud Conspiracy ChargesRead the Press Release
Tampa, Florida - United States Attorney A. Lee Bentley, III announces that Gary Hughes (36, San Diego, CA) today pleaded guilty to one count of mortgage fraud conspiracy involving bank fraud. He faces a maximum penalty of 30 years’ imprisonment.
According to the plea agreement and court proceedings, in 2005, entities controlled by co-conspirators entered into a contract to purchase The Arbors, an apartment complex in Hillsborough County, Florida. The new owners of The Arbors then engaged in a plan to convert the complex from rental to condominium units.
Hughes and his co-conspirator, Brendan Bolger, aided the developers in the sale of numerous condominium units at The Arbors through his company, Capital Management Guarantee, LLC. In order to induce buyers to purchase units, Bolger created an addendum to the purchase contract that offered buyers various incentives, such as rental supplements, money to defray maintenance costs, and a design credit to upgrade the unit’s amenities. When the buyers cancelled the design credit within 10 days of signing the addendum, Bolger paid a kickback for the amount of the design credit to the buyer from Capital Management’s bank account. In this manner, Bolger and other co-conspirators failed to disclose to buyers’ mortgage lenders material facts about the financing of the sale of The Arbors condominiums. Bolger and others referred prospective buyers to Hughes in order to obtain financing for their unit purchases.
Specifically, Hughes’s role in the conspiracy as a mortgage broker consisted of originating mortgages for units through Envision Lending and Set 2 Go Loans. The loan applications Hughes submitted contained material misrepresentations, including false occupancy and inflated borrower income and asset information. These loan applications were submitted to FDIC insured institutions and other mortgage lenders. Additionally, through his company, HUMAR Investments, Hughes and a co-conspirator provided the borrowers cash to close loans without disclosing the payments to the lenders.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency, Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay Hoffer.
Bridgeport Man Charged with Conspiring with Easton Man to Defraud Distressed HomeownersRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Bridgeport has returned a superseding indictment charging BRADFORD BARNEYS, 50, of Odenton, Maryland, with conspiring with TIMOTHY W. BURKE in a long-running fraud scheme that targeted distressed homeowners throughout Connecticut. BARNEYS is an attorney licensed to practice in Connecticut and has an office in Bridgeport.
The 12-count superseding indictment, which was returned on March 30, 2016, was unsealed today.
BURKE, also known as “Bill Burke,” “William Burke,” “Kerry Saunders,” “Pat Riley,” “Jim Caldwell,” “Jim Saunders,” “Tom Morrisey,” “Jimmy,” “Phil Burke,” “Phil,” “Burt,” “James Burke,” and “M. Soler,” 64, of Easton, was originally charged by indictment on February 10, 2016, with mail fraud, wire fraud, tax evasion, money laundering and identity theft offenses. The superseding indictment charges him with additional mail fraud and money laundering counts.
According to the indictment, since at least April 2011 and continuing to at least September 2014, BURKE and BARNEYS conspired to defraud individuals, mortgage lenders and the U.S. Department of Housing and Urban Development (HUD) by falsely representing to homeowners who were in, or facing, foreclosure on their homes that he would purchase their homes and pay off their mortgages. The distressed homeowners agreed to sign various documents, including quitclaim deeds, indemnification agreements, management agreements and third party authorization letters, which BURKE and BARNEYS presented to them on the understanding that, by signing the documents, they would be able to walk away from their homes without the burdens of their mortgage or other costs associated with home ownership. BURKE also told homeowners that the process of negotiating with the lenders can take time and that, in the meantime, to ignore any notices regarding foreclosure. After he gained control of these houses, BURKE rented out the properties to tenants by advertising the properties on craigslist.com and other means and falsely representing to tenants that BURKE owned the property. BARNEYS, acting as BURKE’s attorney, met or spoke with homeowners to reassure them about their sale to BURKE.
The indictment further alleges that BURKE or one of his agents then collected rent from tenants, in person, and BURKE used the funds for his own benefit. When tenants failed to pay rent, BARNEYS would evict them so that BURKE could obtain another tenant for the property.
BURKE failed to negotiate with the homeowners’ mortgage lender or pay expenses associated with the home, including the homeowners’ mortgages and property taxes, and he failed to pay any rental income he was collecting to the homeowners. Many of the properties BURKE purportedly purchased were ultimately foreclosed upon by the mortgage lender.
It is alleged that BURKE undertook extensive efforts to disguise his true identity from his victims through the use of multiple aliases and business entities, and to conceal the sources of and expenditures from his criminal proceeds. BURKE is associated with multiple entities, including Quality Asset Management Services, LLC; Birmingham Investments, LLC; the Birmingham Group of Companies; Saunders Associates; New Haven Investments; Realty Partners Group; Preston Associates II; Landlord Maintenance Services, LLC; Turnkey Construction Services LLC; The Complete Handyman, LLC; and Woodbridge Associates. He is also alleged to have used the name of another individual in connection with his fraud without that person’s knowledge or consent.
The indictment also alleges that BURKE evaded paying more than $1 million in federal taxes.
The indictment further alleges that in approximately 2002, BURKE was indicted by a federal grand jury in New Jersey on charges of conspiracy, mail fraud, and equity skimming. BURKE subsequently pleaded guilty to conspiracy to commit both equity skimming and mail fraud, and he was sentenced to prison. BURKE was released from federal custody in approximately August 2007 and began his federal supervised release at that time. One of the special conditions of BURKE’s supervised release was that he refrain from employment in the real estate business or mortgage industry.
The indictment charges BURKE with one count of conspiracy, five counts of mail fraud, one count of wire fraud, one count of aggravated identity theft, one count of tax evasion, and three counts of money laundering. If convicted, BURKE faces a maximum term of imprisonment of 20 years on each count of conspiracy, mail fraud, wire fraud, and money laundering; a maximum term of imprisonment of five years for tax evasion, and a mandatory, consecutive two-year term of imprisonment for aggravated identity theft.
The indictment charges BARNEYS with one count of conspiracy and one count of mail fraud, each of which carries a maximum term of 20 years in prison.
BARNEYS and BURKE appeared today before U.S. Magistrate Judge Donna F. Martinez and entered pleas of not guilty to the charges.
BURKE has been detained since November 19, 2015, when he was arrested on a criminal complaint. BARNEYS is released on a $50,000 bond.
The case is assigned to U.S. District Judge Michael P. Shea in Hartford.
This matter is being investigated by Internal Revenue Service – Criminal Investigation Division, the U.S. Department of Housing and Urban Development – Office of Inspector General, and U.S. Postal Inspection Service, with the critical assistance of the Middletown, Plainville, Easton and Coventry Police Departments, the Connecticut State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case is being prosecuted by Assistant U.S. Attorney David T. Huang.
U.S. Attorney Daly stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Individuals who believe they have been victimized by this alleged scheme and citizens with information that will be helpful to this ongoing investigation are encouraged to call 860-240-9735.
Boone County felon sentenced to Federal prison for gun crimeRead the Press Release
CHARLESTON, W.Va. – A Boone County man was sentenced to a year and a day in federal prison for a gun crime, announced Acting United States Attorney Carol Casto. Blain Salmons, Jr., 40, of Alum Creek, previously pleaded guilty to being a felon in possession of a firearm.
Salmons admitted that on October 29, 2015, he was arrested by the Boone County Sheriff’s Department. At the time of his arrest, it was determined that Salmons had been hunting out of season and he was found to be in possession of a Glenfield Model 30A, .30-30 rifle. Salmons was prohibited from possessing any firearm under federal law because of felony convictions from 1997 in Kanawha County Circuit Court for kidnapping and aggravated robbery.
The Boone County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Timothy D. Boggess handled the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
-
Follow us on Twitter: SDWVNews
-
Baton Rouge Man Convicted of Mailing Threatening Letters to Federal and State CourthousesRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that BRIAN CAVALIER, age 33, of Baton Rouge, Louisiana, has been convicted of making threats by mail, in violation of Title 18, United States Code, Section 844(e). As a result of his conviction, the defendant faces a term of imprisonment, fines, restitution, and a term of supervised release following his release from imprisonment. The defendant is scheduled to appear before Chief U.S. District Judge Brian A. Jackson for sentencing on August 18, 2016, at 9:30 a.m.
During his guilty plea hearing in court today, CAVALIER admitted that on November 1, 2013, he mailed a threatening letter to the United States District Court for the Middle District of Louisiana in which he falsely and maliciously conveyed that a bomb had been planted in the federal courthouse and that the bomb was set to detonate within twenty-four (24) hours. CAVALIER had also placed a small amount of a white powdery substance inside the letter’s envelope, and the letter falsely stated that anyone who inhaled the powder would die a “painful death” within 24 hours. CAVALIER’S letter also falsely stated that there were “shooters” outside the federal courthouse and that anyone who attempted to exit the courthouse would be “shot to death.”
In connection with his plea, CAVALIER also admitted that approximately one month later, on or about December 2, 2013, he mailed a second threatening letter, this time to the 19th Judicial District Court in Baton Rouge, which also falsely and maliciously conveyed that a bomb had been planted in the state courthouse and that the bomb would soon detonate. The defendant also falsely represented that there were armed men with “high power guns” watching the building and that they would kill people inside the building, too. This second letter also contained a small amount of suspicious white powder, wrapped in plastic. At the time CAVALIER sent both letters, he was in state custody in the Avoyelles Detention Center, in Cottonport, Louisiana, on unrelated charges.
This matter is being investigated by the Federal Bureau of Investigation, working in close coordination with the Louisiana Department of Corrections, the Baton Rouge Fire Department, the East Baton Rouge Parish Sheriff’s Office, and other law enforcement agencies. The matter is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief of the Criminal Division.
Andrew Ford Sentenced to Federal Prison for Role in Crime WaveRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on April 19, 2016, Andrew Jerome Ford, 28, Fargo, ND, was sentenced before U. S. District Judge Ralph R. Erickson to serve eight (8) years and six (6) months in prison for Interference with the Commerce by Threats and Violence- Hobbs Act Robbery and Possession of a Firearm in Furtherance of a Crime of Violence. Judge Erickson also sentenced Ford to serve three (3) years of supervised release and required him to pay a $200 special assessment to the Crime Victims’ Fund.
On September 28, 2015, Bottle Barn Wine and Liquor, 2515 South University Dr., Fargo, and The Spirit Shop Liquor Store, 1404 33rd St. S., Fargo, were robbed within an hour of each other. Co-defendant Carlos Bethel pled guilty to robbing Bottle Barn while brandishing a firearm, while Ford pled guilty to possessing a firearm while robbing the Spirt Shop. Both men acknowledged being the getaway driver for one another in the robberies.
As part of the plea agreement Ford acknowledged he participated or aided and abetted the following crimes:
(a) A home invasion on June 24, 2015, in Hillsboro, North Dakota, where currency was stolen;
(b) A burglary resulting in a stolen firearm in Hillsboro in or about July through September 2015;
(c) A burglary of a vehicle in Fargo, North Dakota, in which monetary instruments were stolen on or about August 24, 2015, and on or about September 24, 2015;
(d) A burglary of a residence in Fargo, resulting in the theft of five firearms on or about September 24, 2015;
(e) Setting fire to four dumpsters in Fargo in an effort to determine law enforcement response time on or about September 28, 2015, as well as robbery of The Spirit Shop Liquor Store in Fargo;
(f) The pistol whipping assault of a victim by Carlos Bethel resulting in serious bodily injury including unconsciousness on or about September 19, 2015 in Fargo; and,
(g) Conspiracy to distribute marijuana in North Dakota.
U.S. Attorney Chris Myers noted after the sentencing: "This sentence sends a strong message that violent crime will not be tolerated in Fargo, Hillsboro, or any community we serve and will use all tools available to fight violent crime and the illegal use and possession of firearms. This case is another great example of local, state, and federal partners joining together to solve what can be best described as a wave of criminal activity that started last summer in the Red River Valley."
Co-defendant Carlos Bethel is scheduled to be sentenced April 25, 2016, at 2:15 PM, in U. S. District Court, Fargo, ND.
This case was investigated by the Fargo Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATFE).
U. S. Attorney Christopher C. Myers prosecuted the case.
Acting U.S. Attorney Meets with Islamic Center Leadership to Highlight Continued Partnership to Combat Anti-Muslim BacklashRead the Press Release
CINCINNATI – Acting U.S. Attorney Benjamin C. Glassman met this morning with members of the board of directors of the Islamic Center of Greater Cincinnati. The gathering is part of a continued effort to foster understanding and safety for Muslim American communities within the Southern District of Ohio.
Today’s meeting was one of 14 events in 11 federal judicial districts across the United States. The series of events around the country are addressing backlash against Muslim, Arab, Sikh and South Asian Americans following the tragic terrorist attacks in Brussels, Paris and San Bernardino, Calif. The events are also designed to build on both the Justice Department’s prosecutorial work in countering post-September 11th backlash, as well as its outreach efforts, including the new interagency initiative to combat religious discrimination throughout the country.
From April 12 through May 6, U.S. Attorneys in California, Colorado, Idaho, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, Ohio and Utah will work with community leaders and law enforcement to address discrimination, violence and harassment targeting people because of what they look like, which country they come from or where they worship. The aim is to reaffirm the Department of Justice’s commitment to protecting civil rights and preventing and prosecuting hate crimes.
“Divisive rhetoric and religious intolerance directed toward Muslim Americans are wrong,” Acting U.S. Attorney Glassman said. “Just like every religious group, Muslim Americans should not be blamed for the criminal actions of a few individuals. Places like the Islamic Center of Greater Cincinnati serve our community by building bridges of understanding with other faith communities, providing education for young people, and enriching worship for many of our neighbors.”
“It was extremely important to have Mr. Glassman visit the Islamic Center of Greater Cincinnati today, as a positive relationship with law enforcement is a priority for the Center,” said Shakila T. Ahmad, President of the Board of Directors of the Islamic Center of Greater Cincinnati. “The hate rhetoric and rise in discrimination towards Muslim Americans is at such a high level that collaboration between the Muslim American community, the greater community and law enforcement is imperative for all Americans and our founding American values.”
Since Sept. 11, 2001, the Department of Justice has investigated more than 1,000 incidents involving acts of violence, threats, assaults, vandalisms and arsons targeting Arab, Muslim, Sikh and South Asians, and those perceived to be members of these groups. The Civil Rights Division and the U.S. Attorney’s Offices throughout the country have brought prosecutions against more than 60 defendants in such cases, with 57 convictions to date.
The Civil Rights Division is leading the interagency initiative to combat religious discrimination, which includes combatting illegal restrictions on religious properties like mosques.
18 April 2016
Winnfield resident sentenced to 70 months in prison for failure to register as a sex offenderRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that a Winnfield resident was sentenced last week to 70 months in prison for failing to register as a sex offender after moving to Louisiana from Michigan.
Dexter Lavar Powell, 38, of Winnfield, La., was sentenced Friday by U.S. District Judge Dee D. Drell on one count of failure to register as a sex offender. Powell was also sentenced to five years of supervised release. According to the January 12, 2016 guilty plea, Powell traveled to Louisiana from Michigan between November 2013 and May 2014. On May 7, 2014, Powell applied for and received a Louisiana identification card that did not have the required “sex offender” label listing a Winnfield address. He began living and working in Winn Parish in May 2014. Even after being contacted by authorities and told to register, he never registered as a sex offender in Louisiana. While not registered as a sex offender, Powell committed and pleaded guilty in March 2015 to felony cruelty to a juvenile in Winn Parish. After repeated attempts to capture him, the U.S. Marshals Service arrested him on September 2, 2015. Powell is required to register as a sex offender for life based on a 2000 conviction for attempted kidnapping of a 9-month-old child in Michigan.
The U.S. Marshal’s Service and Winnfield Police Department conducted the investigation. Assistant U.S. Attorney Michael O’Mara is prosecuting the case.
Vermont Man Sentenced to Ten Years on Federal Heroin and Gun ChargesRead the Press Release
CONCORD, N.H. – Robert Orth, 30, of South Ryegate, Vermont, was sentenced in United States District Court for the District of New Hampshire on federal charges of possessing with intent to distribute more than 100 grams of heroin, possessing a firearm in furtherance of his heroin trafficking, and possessing a firearm as a previously convicted felon. The Court imposed a term of ten years’ imprisonment.
On May 29, 2014, at approximately 9:45 P.M., a Nashua police officer witnessed a Gold Nissan Maxima, bearing New Hampshire plates, drive through a stop sign, travel over a double yellow line, and come to an abrupt halt in the middle of the road with its left turn-signal on. The officer initiated a vehicle stop, and upon making contact, noted that there were three male occupants in the vehicle. Occupying the front passenger seat was Robert Orth. During the traffic stop Orth became argumentative and yelled to one of the other occupants to, “…take the [stuff and]… run and hide it.” That occupant grabbed a jacket that was inside the vehicle and ran from the scene. During a foot pursuit, the occupant dropped the jacket and was subsequently captured by the police. A search of the jacket revealed more than 200 grams of heroin and a loaded handgun. During a subsequent interview, Orth admitted that both the heroin and the handgun belonged to him.
The Nashua, New Hampshire Police Department was the lead investigative agency and received assistance from by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives in New Hampshire. The case was prosecuted by Assistant United States Attorneys Nick Abramson and Seth Aframe.
###
Van Buren, Arkansas Man Pleads Guilty to Possession of Counterfeit ObligationRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MARK BRANDON WEEKS, age 41, of Van Buren, Arkansas, pled guilty to POSSESSION OF A COUNTERFEIT OBLIGATION, in violation of Title 18, United States Code, Section 472 and 2, punishable by not more than 20 years imprisonment, a fine of up to $250,000.00 or both.
The charges are a result of an investigation by the Muskogee Police Department, the Sallisaw Police Department and the United States Secret Service. The defendant was indicted in January, 2016.
The Indictment alleged that on or about August 10, 2015, in the Eastern District of Oklahoma, the defendant, MARK BRANDON WEEKS, did with intent to defraud, possess counterfeit obligations of the United States, that is: Seventy (70) counterfeit $100 Federal Reserve Notes, which he knew to be falsely made, forged and counterfeited.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
Assistant United States Attorney Timothy Hammer represented the United States.
United States Attorneys Available to Receive Election ComplaintsRead the Press Release
ROBERT L. CAPERS and PREET BHARARA, the United States Attorneys for the Eastern and Southern Districts of New York, respectively, announced today that special telephone numbers have been set up to receive complaints of possible violations of federal election laws relating to the upcoming primary elections in New York City and other counties in their districts.
The United States Attorneys said that their Offices will be available to receive complaints at the following numbers on Tuesday, April 19, 2016:
(718) 254-6323 (for Brooklyn, Queens, Staten Island, Nassau and Suffolk counties)
(212) 637-0840 (for Manhattan, Bronx, Dutchess, Orange, Putnam, Rockland,
Sullivan and Westchester counties)
In addition, complaints of possible violations of federal election laws may be made directly to the Federal Bureau of Investigation (FBI) at (212) 384-1000.
Spokespeople for the United States Attorneys said that the enforcement of federal laws protecting the rights of all eligible persons to vote for the candidates of their choice is a high priority of the Department of Justice.
It is unlawful under federal law to deny or abridge anyone’s right to vote because of race, color or national origin. Federal laws also require local election authorities to make voting accessible to disabled and elderly voters. Voters who require assistance because of blindness, disability or inability to read and write have the right to receive such assistance from a person of their own choosing. In counties with substantial numbers of non-English speaking voters, federal laws prohibit the denial or abridgement of a voter’s ability to participate in the election process in certain languages other than English (i.e., Spanish, Chinese, Korean).
In addition, certain activities designed to subvert the integrity of the election process are federal crimes. It is a federal crime, for example, to deprive citizens of their right to fair elections or to conspire to do so. Specific election laws also make it a crime to bribe or intimidate voters, to cause ballots to be cast fraudulently in the names of individuals who did not vote (“ballot stuffing”), to vote more than once, or to alter or falsely report the vote count. It can also be a federal offense to challenge qualified voters without cause and in bad faith or to harass persons seeking to vote for the purpose of discouraging their vote.
The Offices of the United States Attorneys said that the ability of federal law enforcement authorities to detect and eliminate improper restrictions on voting rights and to prosecute election fraud depends to a large extent on the watchfulness and cooperation of the voters. It is therefore imperative that those who have been asked to participate in illegal election practices, who have been the subject of such practices, who have observed such practices, or who have information bearing on such practices, make that information known promptly to the FBI or the United States Attorneys at the telephone numbers listed above.
The United States Attorneys also noted that the following additional telephone numbers are available on April 19 for citizens to call for routine inquiries, such as where to vote or how late the polls are open, or to register complaints that may concern violations of New York State election laws:
IN NEW YORK CITY
City Board of Elections
Main Office (212) 487-5300
(212) 868-3692
Bronx (718) 299-9017
Brooklyn (718) 797-8800
Manhattan (212) 886-2100
Queens (718) 730-6730
Staten Island (718) 876-0079
IN COUNTIES OUTSIDE NEW YORK CITY
County Boards of Elections
Dutchess (845) 486-2473
Nassau (516) 571-2411
Orange (845) 291-2444
Putnam (845) 278-6970
Rockland (845) 638-5172
Suffolk (631) 852-4500
Sullivan (845) 794-3000
Westchester (914) 995-5700
Assistant United States Attorney Catherine M. Mirabile is responsible for overseeing the handling of complaints of voting rights abuses and election fraud for the Eastern District of New York.
Assistant United States Attorney David J. Kennedy is responsible for overseeing the handling of complaints of voting rights abuses and election fraud for the Southern District of New York.
United States Attorneys Available to Receive Election ComplaintsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Robert L. Capers, the United States Attorney for the Eastern District of New York, announced today that special telephone numbers have been set up to receive complaints of possible violations of federal election laws relating to the upcoming primary elections in New York City and other counties in their districts.
The United States Attorneys said that their Offices will be available to receive complaints at the following numbers on Tuesday, April 19, 2016:
(212) 637-0840 (For Manhattan, Bronx, Dutchess, Orange, Putnam, Rockland, Sullivan and Westchester counties)
(718) 254-6323 (For Brooklyn, Queens, Staten Island, Nassau and Suffolk counties)
In addition, complaints of possible violations of federal election laws may be made directly to the Federal Bureau of Investigation at (212) 384-1000.
It is unlawful under federal law to deny or abridge anyone’s right to vote because of race, color, or national origin. Federal laws also require local election authorities to make voting accessible to disabled and elderly voters. Voters who require assistance because of blindness, disability, or inability to read and write have the right to receive such assistance from a person of their own choosing. In counties with substantial numbers of non-English speaking voters, federal laws prohibit the denial or abridgement of a voter’s ability to participate in the election process in certain languages other than English (i.e., Spanish, Chinese, Korean).
In addition, certain activities designed to subvert the integrity of the election process are federal crimes. It is a federal crime, for example, to deprive citizens of their right to fair elections or to conspire to do so. Specific election laws also make it a crime to bribe or intimidate voters, to cause ballots to be cast fraudulently in the names of individuals who did not vote (“ballot stuffing”), to vote more than once, or to alter or falsify the vote count. It can also be a federal offense to challenge qualified voters without cause and in bad faith or to harass persons seeking to vote for the purpose of discouraging their vote.
The United States Attorneys also noted that the following additional telephone numbers are available on Election Day for citizens to call for routine inquiries, such as where to vote or how late the polls are open, or to register complaints that may concern violations of New York State election laws:
IN NEW YORK CITY
City Board of Elections
Main Office (212) 487-5300
(212) 868-3692
Bronx (718) 299-9017
Brooklyn (718) 797-8800
Manhattan (212) 886-2100
Queens (718) 730-6730
Staten Island (718) 876-0079
IN COUNTIES OUTSIDE NEW YORK CITY
County Boards of Elections
Dutchess (845) 486-2473
Nassau (516) 571-2411
Orange (845) 291-2444
Putnam (845) 278-6970
Rockland (845) 638-5172
Suffolk (631) 852-4500
Sullivan (845) 794-3000
Westchester (914) 995-5700
Assistant United States Attorney David J. Kennedy is responsible for overseeing the handling of complaints of voting rights abuses and election fraud for the Southern District of New York.
Assistant United States Attorney Catherine Mirabile is responsible for overseeing the handling of complaints of voting rights abuses and election fraud for the Eastern District of New York.
Two Massachusetts Men Plead Guilty to Fentanyl Distribution ConspiracyRead the Press Release
CONCORD, N.H. – Israel Garcia, 56, of Lawrence, Massachusetts and Maximo Brito-Tejeda, 36, a citizen of the Dominican Republic most recently residing in Lawrence, Massachusetts, pleaded guilty in United States District Court for the District of New Hampshire to five counts of distribution of the Schedule II controlled substance fentanyl and one count of conspiracy to distribute fentanyl, announced United States Attorney Emily Gray Rice.
During a law enforcement investigation, officers received information from a cooperating source indicating that Garcia and an individual later identified as Brito-Tejeda were actively involved in the distribution of drugs in and around the Massachusetts and Southern New Hampshire areas. As part of the investigation, law enforcement officers used the cooperating individual and an undercover officer to make controlled purchases of the Schedule II narcotic controlled drug fentanyl from Garcia and Brito-Tejeda on five occasions in August and September, 2015. On each occasion, Garcia and Brito-Tejeda met the cooperating individual and/or the undercover officer in New Hampshire and sold them approximately ten grams of fentanyl.
On September 25, 2015, officers approached Garcia and Brito-Tejeda in an attempt to arrest them. Garcia fled but was apprehended within seconds and Brito-Tejeda locked himself in his car, emptied bags containing fentanyl onto the floor mat and poured his drink over the drugs. He also attempted to swallow plastic bags containing additional quantities of fentanyl. That same day, the Drug Enforcement Administration executed a search warrant at the residence occupied by Brito-Tejeda where Garcia and Brito-Tejeda stored and packaged drugs. A scale, packaging materials, and an additional quantity of fentanyl were recovered at this residence.
Garcia and Brito-Tejeda will be detained pending sentencing hearings which are both presently scheduled for July 14, 2016. The statutory maximum sentence for the conspiracy charge is forty years in prison and criminal fines of up to $5,000,000. Each distribution charge carries a statutory maximum sentence of twenty years in prison and criminal fines of up to $1,000,000. The actual sentences will be determined by the court at sentencing after a presentence investigation report is completed.
The case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Seth Aframe.
###
Three Texas Tax Return Preparers Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
Defendants Prepared Tax Returns for Clients that Contained False and Inflated Expenses and Credits
Three El Paso, Texas, residents were sentenced to prison for preparing and conspiring to prepare false income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Richard L. Durbin Jr. for the Western District of Texas.
Belia Mendoza, 60; Margarita Hernandez, 36; and Denise Duchene, 46, were convicted on Feb. 3 following a jury trial of conspiracy to defraud the United States for their involvement in a fraudulent tax return preparation scheme and numerous counts of aiding and assisting in the preparation and filing of materially false tax returns.
“Tax return preparers owe a duty to their clients to prepare true and accurate tax returns for filing with the Internal Revenue Service (IRS),” said Acting Assistant Attorney General Ciraolo. “When preparers intentionally include false items on tax returns, they are not only violating that duty to their clients, but they are also violating the law and exposing themselves to significant penalties, including incarceration.”
“The sentencing of these three tax return preparers sends a clear warning to unscrupulous tax preparers who break the law and abuse the tax system,” said Special Agent in Charge William Cotter of the IRS-Criminal Investigation’s San Antonio Field Office. “Knowingly falsifying documents filed with the IRS is a crime and IRS-Criminal Investigation works year-round pursuing those tax preparers who enrich themselves while cheating their clients and the U.S. Treasury.”
At today’s sentencing hearing, U.S. District Judge Frank Montalvo sentenced Mendoza to 96 months in prison, followed by five years of supervised release and ordered her to pay restitution to the IRS in the amount of $35,391. On April 15, Hernandez was sentenced to 10 months in prison, followed by three years of supervised release and ordered to pay $18,150 in restitution to the IRS. Also on Friday, Duchene was sentenced to 33 months in prison, followed by three years of supervised release and ordered to pay $2,394 in restitution to the IRS.
According to evidence and witness testimony introduced at the trial, Mendoza was the owner of Mendez Tax Services (MTS), a tax preparation business she operated out of her home in El Paso. Hernandez and Duchene, relatives of Mendoza’s, were employees of MTS hired and trained by Mendoza to prepare tax returns for clients for tax years 2008, 2009 and 2010. From February 2009 until June 2011, Mendoza, Hernandez and Duchene conspired to prepare and submit to the IRS numerous false Forms 1040 (U.S. Individual Income Tax Returns).
To maximize their clients’ fraudulently claimed income tax refunds, Mendoza, Hernandez and Duchene placed materially false items on the clients’ tax returns, at times without the knowledge or consent of the clients, including false or inflated figures for unreimbursed employee business expenses, child and dependent care expenses and education credits. Income tax returns prepared by the defendants also included false filing statuses and improperly claimed Earned Income Tax Credits.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Durbin commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorney Joseph M. Giannullo of the Tax Division and Assistant U.S. Attorneys Adrian Gallegos and Rifian Newaz of the Western District of Texas, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Southside York Gang Member Enters Guilty Plea to Racketeering ConspiracyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania and the Bureau of Alcohol, Tobacco, Firearms and Explosives announced today that a member of the “Southside” located in York, Pennsylvania pled guilty to racketeering conspiracy.
According to United States Attorney Peter Smith, Richard Nolden, age 30, of York, entered a guilty plea in federal court today to racketeering conspiracy. Under the agreement, Nolden will receive a sentence of 25 years. Nolden is currently serving a sentence of 15 to 40 years’ incarceration for the January 23, 2012, murder of Sherrod Snellings.
Nolden’s plea comes as the last defendant in the Southside indictment. The federal indictment, which was returned on September 17, 2014, brought racketeering and drug trafficking charges against twenty-one members of the Southside. In the indictment, the Southside is identified as a criminal enterprise whose purpose is to protect its territory and power through intimidation, violence and threats, generate profits primarily through open-air drug dealing within its territory and violent crime, defend and retaliate on behalf of gang members, and assist members through retaliation against witnesses and thwarting efforts of law enforcement.
From September to November 2015, twelve other co-defendants went to trial. All twelve were convicted of racketeering conspiracy, drug trafficking conspiracy and/or drug trafficking after an eight-week jury trial this fall. The other eight co-defendants entered guilty pleas to racketeering conspiracy in the case. All of these defendants are being scheduled for sentencing before U.S. District Court Judge Yvette Kane.
In this case, the maximum penalty Richard Nolden faces is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Sierra National Forest Marijuana Cultivator Sentenced to 3 Years in PrisonRead the Press Release
FRESNO, Calif. — Humberto Ceballos-Rangel (Ceballos), 38, of Tuxpan, Jalisco, Mexico, was sentenced today to three years in prison in connection with his involvement in a large marijuana cultivation operation found by law enforcement last summer in the Sierra National Forest in Madera County, United States Attorney Benjamin B. Wagner announced.
According to court documents, Ceballos was found at a campsite within a marijuana cultivation site that caused significant damage to public land and natural resources. Native vegetation was cut to accommodate the marijuana plants, foot trails, and cooking and sleeping areas. Water was also diverted from a nearby creek to irrigate the marijuana plants. Agents found and removed from the site insecticide, propane tanks, and a large quantity of trash and hose line. Ceballos pleaded guilty on January 19, 2016.
In sentencing Ceballos, U.S. District Judge Lawrence J. O’Neill ordered Ceballos to pay $8,750 in restitution to the U.S. Forest Service for the costs of cleaning up the site.
The case was the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Justice’s Campaign Against Marijuana Planting (CAMP), the California Department of Fish and Wildlife, and Madera County Narcotic Enforcement Team (MADNET). Assistant United States Attorney Karen A. Escobar prosecuted the case.
Quebec Man Sentenced for Lying to Border OfficersRead the Press Release
PLATTSBURGH, NEW YORK – Torran Mitchell-Terrance, age 23, of Snye, Quebec, was sentenced on Friday for making false statements to border officers.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations.
United States District Court Judge David N. Hurd sentenced Mitchell-Terrance to serve 141 days in jail – time that Mitchell-Terrance had already served as of Friday – and to serve an additional 1 year of supervised release.
On April 2, 2012, Mitchell-Terrance presented himself at the Massena Point of Entry, New York, for inspection by United States Customs and Border Protection officers. During that inspection, he signed a written declaration representing himself to be another person, who was his relative.
The government filed a complaint on April 3, 2012 and arrested Mitchell-Terrance, and he was released on conditions including that he remain in the United States. Mitchell-Terrance fled pretrial supervision in September 2012 and was indicted by a Plattsburgh grand jury in November 2012. Mitchell-Terrance remained a fugitive until early 2016, when he turned himself in.
This case was investigated by Homeland Security Investigations and U.S. Customs and Border Protection, and was prosecuted by Assistant U.S. Attorney Elizabeth Horsman.
Pittsburgh Man Pleads Guilty in Drug Trafficking ConspiracyRead the Press Release
PITTSBURGH – An Allegheny County man pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.
Aaron Reed, 35, of Pittsburgh, PA, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Aaron Reed was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Judge Hornak scheduled sentencing for Aug. 16, 2016. The law provides for a minimum sentence of five years in prison, a maximum sentence of 40 years in prison, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Reed.
Orange County Tax Return Preparer Arrested on Tax Fraud ChargesRead the Press Release
LOS ANGELES – The owner of a Tustin tax preparation business called First Quality Tax Services was arrested this morning on federal charges that allege he prepared and filed fraudulent federal income tax returns claiming false deductions for his clients.
Thomas P. Butcher, 61, of Rancho Santa Margarita, was arrested by special agents with IRS Criminal Investigation pursuant to an indictment returned by a federal grand jury on April 13.
The 38-count indictment charges Butcher with 37 counts of aiding and assisting in the preparation of fraudulent income tax returns and one count of obstructing the administration of Internal Revenue laws.
The indictment alleges that for tax years 2009 through 2011, Butcher prepared and filed tax returns that claimed false credits and deductions that clients were not entitled to receive. The tax returns included fraudulent education credits, as well as false deductions for charitable donations and unreimbursed employee expenses. The fraudulent deductions and credits lowered the taxpayers’ income tax liability.
The indictment also alleges that Butcher submitted bogus receipts for charitable donations and employee-related expenses when filing 2009 tax returns.
“Today’s tax deadline reminds us that our system depends on every citizen filing honest income tax returns,” said United States Attorney Eileen M. Decker. “Butcher is charged with systematically filing false and fraudulent returns for his clients without their knowledge. Butcher’s arrest underscores this office’s commitment to protect innocent taxpayers and preserve the integrity of our tax system through the prosecution of corrupt tax professionals.”
Butcher is expected to be arraigned on the indictment this afternoon in United States District Court in Santa Ana, California.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
Each of the 38 counts in the indictment carries a statutory maximum penalty of three years in federal prison.
This case is the product of an investigation by IRS Criminal Investigation.
“On this final day of the 2016 tax filing season, those who might consider preparing false tax returns are reminded of the extremely negative consequences of doing so,” stated IRS Criminal Investigation’s acting Special Agent in Charge Anthony J. Orlando. “Today’s arrest of Mr. Butcher again emphasizes that the Internal Revenue Service and U.S. Attorney’s Office will continue their aggressive pursuit of those who attempt to defraud America’s tax system.”
Return preparer fraud is one of the Internal Revenue Service’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. Additional information about and enforcement efforts by the United States Department of Justice may be found on the Tax Division’s website.
Ninth Defendant Pleads Guilty in Methamphetamine ConspiracyRead the Press Release
ABINGDON, VIRGINIA – The ninth member of a methamphetamine conspiracy that trafficked large quantities of the drug from Atlanta, Georgia to Southwest, Virginia, pled guilty today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced today.
Brandin Travis Hyde, 38, pled guilty today to one count of conspiring to possess with the intent to distribute methamphetamine and one count of possessing a firearm while being an unlawful user of a controlled substance.
“Methamphetamine is being brought into the Western District of Virginia in waves and is devastating our communities,” United States Attorney John P. Fishwick Jr. said today. “We will continue to work with our partners in law enforcement to dismantle large, wide-ranging distribution conspiracies like the one this defendant was involved with.”
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, Hyde was part of a methamphetamine conspiracy that transported and distributed multiple pounds of crystal methamphetamine between Atlanta, Georgia, Northeast Tennessee and Southwest Virginia.
In April 2015, Hyde was interviewed in Bristol, Virginia and admitted that on multiple occasions he accompanied Jeremy Bartley to Atlanta, Georgia to pick up five ounces of crystal methamphetamine. Hyde also admitted to carrying a firearm trafficking in methamphetamine. Hyde returned to Southwest Virginia with the methamphetamine and further distributed it to others.
To date, eight other individuals have pled guilty to being part of the conspiracy. Dawn Rossalyn Vincente, Summer Deborah Booher, Dakota Wayne Barker, Carrie Taylor, Jeffrey Bruce Bartley, Stacey Lee Doane, Melissa Mendora Harless and Connie Diane Strouth have each pled guilty to one count of conspiring to possess with the intent to distribute methamphetamine.
The investigation of the case was conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bristol, Virginia Police Department, the Bristol, Tennessee Police Department, the Abingdon Police Department and the Washington County Sheriff’s Office. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.