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12 April 2016
Stockbroker Pleads Guilty to Securities Fraud for Operating $1.4 Million Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – Charles Caleb Fackrell, 36, of Booneville, N.C. appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to one count of securities fraud for operating a $1.4 million Ponzi scheme, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and North Carolina Secretary of State Elaine F. Marshall.
According to filed court documents and today’s plea hearing, beginning from in or about May 2012 to about December 2014, Fackrell executed a Ponzi scheme using approximately $1.4 million in funds he solicited from at least 20 victim investors in Wilkes County and elsewhere. According to court records, Fackrell was a stockbroker who used his position of trust to solicit victim investors and steer them away from legitimate investments to purported investments with “Robin Hood, LLC,” “Robinhood LLC,” “Robin Hood Holdings, LLC,” “Robinhood Holdings, LLC” and related entities (collectively, “Robin Hood”). These were entities Fackrell controlled and through which he could access the victims’ funds.
Court records indicate that Fackrell solicited his victim investors by making false and fraudulent representations, including that the investors’ money would be invested in, or secured by, gold and other precious metals, when in fact Fackrell spent only a fraction of investor money on such assets. According to court records, Fackrell also falsely told victims that Robin Hood was a very safe investment, paying guaranteed annual returns of 5% to 7%. According to court records, contrary to the promises he made to his victims and instead of investing the victims’ funds as promised, Fackrell used the majority of the money to cover personal expenditures, including hotel expenses, groceries, and medical bills, to make purchases at various retail shops and to make large cash withdrawals. Fackrell also used a portion of the victims’ money to make purported “interest” payments to investors who demanded their money back and to induce further investments from existing investors and their friends and family members. In all, according to court records, Fackrell diverted over $700,000 of his victims’ money – nearly half of the investor money he obtained – back to other investors in Ponzi fashion payments.
According to court records, in an attempt to conceal his fraud, Fackrell asked a third party to destroy a computer and documents related to the Ponzi scheme, explaining that he was in trouble with the U.S. Securities and Exchange Commission.
“Fackrell is an unscrupulous scammer that betrayed those who trusted him with their nest egg. Instead of using his clients’ money for legitimate investments, as he promised he would, Fackrell focused on enriching himself and perpetuating his fraud through lies. Thanks to the great work of our law enforcement partners Fackrell’s business of siphoning his clients’ money is over,” said U.S. Attorney Rose. “This case is an example of how financial predators will use lies and deceit to get their hands on people’s hard-earned money, quickly turning trusting investors into financial fraud victims,” Rose added.
“At its most basic level, this is a case about greed and the abuse of trust. Charles Fackrell had no regard for the victims he betrayed, making empty promises for big investment returns. Now he will be held accountable for his actions because of the agents and prosecutors who worked so diligently to bring him to justice,” said Special Agent in Charge Strong.
“This case is particularly egregious because unlike the majority of registered stock brokers, this scam artist betrayed the trust of his clients for his own personal gain and benefit,” Secretary Marshall said. “We are extremely proud of assembling a case that has resulted in a guilty plea today.”
Fackrell was detained following his guilty plea. The securities fraud charge carries a maximum prison term of 20 years and a $5 million fine. A sentencing date for the defendant has not been set.
The case is being investigated FBI and the Securities Division of the North Carolina Department of the Secretary of State. U.S. Attorney Rose also thanked the North Carolina State Bureau of Investigation, the Yadkinville Police Department and Kinston’s Department of Public Safety for their invaluable assistance in this investigation.
The prosecution is being handled by Assistant United States Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte.
St. Francis Man Charged with Assaulting Federal OfficersRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for two counts of Assaulting, Opposing, Resisting, and Impeding a Federal Officer.
James Two Charger, age 24, was indicted on March 15, 2016. He appeared before United States Magistrate Judge Mark A. Moreno on March 30, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction for each count is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
It is alleged that on March 1, 2016, Two Charger assaulted one officer by hitting the officer in the abdomen and side as the officer attempted to arrest Two Charger. Two Charger then spit directly at another officer’s face.
The charge is merely an accusation and Two Charger is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribal Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson is
prosecuting the case.
Two Charger was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been scheduled for May 25, 2016.
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St. Albans man pleads guilty to Federal gun crimesRead the Press Release
CHARLESTON, W.Va. – A St. Albans man pleaded guilty today to two federal gun crimes, announced Acting United States Attorney Carol Casto. Christopher Ayash, 47, entered his guilty plea to possession of a firearm with an obliterated serial number and to possession of six firearms in furtherance of a federal drug trafficking crime.
Ayash admitted that he arranged for the illegal shipment of drugs, including oxycodone and coca leaves, a precursor used to manufacture cocaine, through the mail to West Virginia. On October 7, 2015, a federal search warrant was executed at Ayash’s St. Albans residence and law enforcement discovered a secret room hidden behind a fireplace. The secret room housed a laboratory set up by Ayash to manufacture cocaine and other controlled substances. Law enforcement seized over 60 firearms from the residence, including fully automatic weapons, silencers, and a handgun with an obliterated serial number. Ayash admitted that he possessed six of the firearms in furtherance of his drug trafficking crimes. As part of his plea, Ayash agreed to forfeit $300,000 to the United States. He also agreed to demolish a strip club he owned in St. Albans and to transfer the property to Kanawha County.
When he is sentenced on July 11, 2016, Ayash faces up to five years in prison for possession of a firearm with an obliterated serial number, and at least five years and up to life in prison for the other gun crime.
The investigation was conducted by the United States Postal Inspection Service, the Metropolitan Drug Enforcement Network Team, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of several other law enforcement agencies. Assistant United States Attorney Haley Bunn is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
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. This case was also prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities, including the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and other drugs in communities across the Southern District.
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Rosebud Man Sentenced for Felon in Possession of a FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on April 5, 2016, by United States District Court Judge Roberto A. Lange.
Anthony Farmer, age 32, was sentenced to 27 months in custody, 3 years of supervised release, and $100 special assessment to the Federal Crime Victims Fund. Farmer was also ordered to forfeit his firearm.
Farmer was indicted for Felon in Possession of a Firearm and Failure to Register as a Sex Offender by a federal grand jury on June 9, 2015. He pled guilty to Felon in Possession of a Firearm on January 20, 2016.
On March 16, 2010, Farmer was convicted of Abusive Sexual Contact with a Child and received a 48 months custody sentence, to be followed by a 5 year term of supervised release. On August 2, 2013, Farmer began his term of supervised release.
On April 1, 2015, Farmer was arrested for sex offender registration violations and was in possession of a .22 caliber rifle at the time of his arrest.
This case was investigated by Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Farmer was immediately turned over to the custody of the U.S. Marshals Service.
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Rosebud Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on April 11, 2016, by United States District Court Judge Roberto A. Lange.
Dwight Black Spotted Horse, age 31, was sentenced to 21 months in custody, 5 years supervised release, and $100 special assessment to the Federal Crime Victims Fund.
Black Spotted Horse was indicted for Failure to Register as a Sex Offender by a federal grand jury on December 8, 2015. He pled guilty on February 9, 2016.
On April 23, 2007, Black Spotted Horse was sentenced to 70 months in federal custody for Sexual Abuse of a Minor. As a result of his conviction, he is required to register as a sex offender. Between September 14, 2015, and November 6, 2015, Black Spotted Horse, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under Federal Law, failed to properly register as a sex offender in Pennington county and elsewhere.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Black Spotted Horse was immediately turned over to the custody of the U.S. Marshals Service.
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Rosebud Man Charged with Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Child Abuse and Operating a Motor Vehicle Under the Influence of Alcohol with a Minor Present in the Motor Vehicle.
Colton Poorman, age 36, was indicted on March 15, 2016. He appeared before United States Magistrate Judge Mark A. Moreno on March 30, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction of child abuse is up to 15 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. The maximum penalty upon conviction of operating a motor vehicle under the influence of alcohol with a minor present in the motor vehicle is up to 1 year in custody and/or a $100,000 fine, 1 year of supervised release, and $25 to the Federal Crime Victims Fund. Restitution may also be ordered.
It is alleged that on October 11, 2015, Poorman committed the public offense of driving or control of a vehicle while under the influence of alcohol and that there was a minor child in the vehicle who had not attained the age of seven years.
The charge is merely an accusation and Poorman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson is prosecuting the case.
Poorman was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
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Rochester Man Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Kevin Small, 25 of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possessing a firearm not registered in the National Firearms Registry, that is, a sawed-off shotgun. The charge carries a maximum sentence of 10 years in prison, a fine of $250,000.00, or both.Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated on April 5, 2014, the Rochester Police Department responded to the area of 177 Sixth Street in Rochester for a report of a burglary in progress. The caller indicated she heard glass break and saw a male climb through the window of the house next door. The caller also described a person with a gray pullover and blue hat getting into a dark station wagon, headed north on Sixth Street. A short while later, officers observed Small, who matched the description provided by the caller, enter a store in the area. The defendant was stopped, detained and brought back to the location of the burglary for further investigation which ultimately determined that Small resided at the location but had been locked out by his girlfriend. The defendant was entering the location through the window to get his belongings which he was putting in the dark colored station wagon. Officers searched the vehicle and found the sawed off shotgun, a 12 gauge, Iver Johnson Excel single shot shotgun.
The plea is the culmination of an investigation on the part of Rochester Police Department, under the direction of Rochester Police Department Chief Michael Ciminelli, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid.
Sentencing is scheduled for July 14, 2016, at 3:00 p.m. before Judge Wolford.
Rochester Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Edwin Murray, 51 of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession with intent to distribute cocaine and possession of a firearm in the furtherance of a drug trafficking crime. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a fine of $1,000,000 or both.Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated on August 20, 2014, members of Rochester Police Department executed a search warrant in the downstairs apartment at 54 Miller Street in Rochester. During the execution of the search warrant, an investigator encountered Murray, who was the only person in the house at the time, in a bedroom. Under a bed, investigators found a black shoe box. Inside they found a clear plastic bag that contained 84 smaller ziplock baggies. Each baggie contained a white rocky material which was later identified as crack cocaine. Officers also located a wallet which contained $346.00 in United States Currency and marijuana. Officers also found a Ruko-Armscor Model M14 .22 caliber long rifle and a magazine for the rifle, which contained six rounds of .22 caliber ammunition.
The plea is the culmination of an investigation on the part of Rochester Police Department, under the direction of Rochester Police Department Chief Michael Ciminelli, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid.
Sentencing is scheduled for July 14, 2016, at 2:00 p.m. before Judge Wolford.
Richfield man guilty of illegally dealing firearms after he sold 300 firearms over three yearsRead the Press Release
A Richfield Township man pleaded guilty in federal court to illegally dealing firearms after he sold approximately 300 firearms over a three-year period, said Acting U.S. Attorney Carole S. Rendon and Donald J. Soranno, Special Agent in Charge of the ATF’s Columbus Field Division.
Timothy J. Cassinger, 48, is scheduled to be sentenced July 13.
Cassinger was not a licensed firearms dealer but sold approximately 300 firearms between June 2012 and October 2015. Many of the weapons were purchased from federal firearms licensees and then resold by Cassinger at gun shows or online, according to court documents.
Eleven firearms originally purchased by Cassinger were intercepted by Spanish authorities in September 2014, on a ship destined for Beirut, Lebanon . Other firearms purchased by Cassinger were later recovered in Cleveland, Columbus, East Cleveland, New York City and other cities, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Kelly M. Galvin following an investigation by the ATF.
Puerto Rico Resident Sentenced to More Than 13 Years in Prison for Bank Fraud SchemeRead the Press Release
On April 4, 2016, Rosa E. Castrillón-Sánchez, a resident of Puerto Rico, was sentenced to 159 months in prison, to be followed by three years of supervised release, and was ordered to pay $5 million in restitution to victims affected by a scheme to defraud individuals and financial institutions on the island.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Pedro Gomez, Special Agent in Charge, United States Secret Service (USSS), Puerto Rico Office, Carlos Cases, Special Agent in Charge, Federal Bureau of Investigation (FBI), Puerto Rico Office, and Monsita Lecaroz, Assistant United States Trustee, Office of the United States Trustee, made the announcement.
Castrillón-Sánchez pled guilty on December 13, 2013 to one count of conspiracy to commit bank fraud and wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028(a)(1).
According to court documents, Castrillón-Sánchez befriended individuals and falsely represented that she was the beneficiary to a Certificate of Deposit (“CD”) or trust for a large amount of money that was frozen at a local bank in Puerto Rico. Castrillón-Sánchez would request that an individual provide her with a sum of money or take out a personal loan to assist in the releasing of the funds – with full repayment promised as soon as the CD was unfrozen. As part of the scheme, Castrillón-Sánchez and other co-conspirators used false documents and lease agreements to obtain some of the loans and would distribute payments to individuals using Western Union wire transfers and money orders. From April 2005 to March 2010, Castrillón-Sánchez and her co-conspirators fraudulently induced over 90 individuals to loan the defendant over $5,000,000 in cash, based on false representations and promises that the individuals would be repaid in a short period of time.
Castrillón-Sánchez’s conspired with her mother Rosa Sanchez Mercado, Jorge Rivera Izquierdo, and others to use proceeds from the fraudulent scheme. Castrillón-Sánchez stored documents used to facilitate the scheme at the home she shared with Sanchez Mercado. Rivera Izquierdo assisted with the purchase of a Toyota Sequoia on September 13, 2008, using $40,000 of proceeds from the fraudulent scheme as down payment. On May 29, 2009, Rivera Izquierdo assisted with the purchase of a second vehicle, a BMW 335i, using $63,419.50 of proceeds from the scheme as payment for the vehicle.
Rivera Izquierdo was found guilty, at trial, of two counts of money laundering in connection with the purchase of the two vehicles using money derived from the fraudulent scheme. Rivera Izquierdo was sentenced on April 27, 2015 to 42 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $201,503.73.
Co-defendants Carmen Sosa Barreto, Luis Roriguez Barreto, Limarie Amalbert Birriell, Amarilys Pagan Estrella, and Noemi Delgado Alice previously pled guilty and were sentenced to probation.
Sanchez Mercado pled guilty on February 1, 2013 to one count of conspiracy to commit bank fraud and wire fraud, in violation of Title 18, United States Code, Section 1349. Sanchez Mercado is scheduled to be sentenced on May 3, 2016.
Mr. Ferrer commended the investigative efforts of IRS-CI, USSS, and FBI, and thanked the United States Trustee’s Office for its assistance. The case was prosecuted by Assistant United States Attorney H. Ron Davidson and Special Attorneys to the Attorney General Charles R. Walsh and Luke V. Cass.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Prior Felon from Taos Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Ivan Lujan, 32, of Taos, N.M., was sentenced today in federal court in Santa Fe, N.M., to 51 months in prison followed by three years of supervised release for violating the federal firearms laws.
Lujan was arrested on Oct. 28, 2015, on a criminal complaint charging him with being a felon in possession of a firearm on Oct. 9, 2015, in Bernalillo County, N.M. Lujan was prohibited from possessing firearms or ammunition because of his previous convictions in the 8th Judicial District of New Mexico for trafficking a controlled substance, possession of cocaine, aggravated assault with a deadly weapon, and possession of a firearm or destructive device by a felon.
On Nov. 12, 2015, Lujan entered a guilty plea to a felony information charging him with being a felon in possession of a firearm. In his plea agreement, Lujan admitted that on Oct. 9, 2015, he possessed a semiautomatic pistol even though he was prohibited from doing so because of his status as a convicted felon.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bernalillo County Sheriff’s Office and the Albuquerque Police Department. Assistant U.S. Attorney Jacob Wishard prosecuted the case.
Press AdvisoryRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian will conduct a press conference tomorrow (Wednesday April 13, 2016) at 2 PM in the Syracuse U.S. Attorney’s Office to announce a case of interest to the media.
Wednesday, April 13, 2016
2:00 PM
U.S. Attorney’s Office
100 S. Clinton Street
Syracuse, New York
9th FloorPremiertox Pays United States and Tennessee $2.5 Million to Resolve False Claims Act LawsuitRead the Press Release
Settlement covers alleged conduct in Kentucky
LOUISVILLE, Ky. - PremierTox 2.0, Inc. has paid $2.5 million to resolve alleged violations of the False Claims Act, announced John E. Kuhn, Jr., United States Attorney for the Western District of Kentucky. PremierTox is a company that provides drug urine screening services to citizens of Kentucky and Tennessee. The government alleged that PremierTox submitted false claims when billing Medicare, TennCare and Kentucky Medicaid for drug urine screening services. PremierTox previously did business in Tennessee under the name Nexus.
“Losses caused by health care fraud amount to tens of billions of dollars every year,” said U.S. Attorney John Kuhn, of the Western District of Kentucky. “Often those losses are passed along to consumers in the form of increased costs. For that reason, my office will work with federal, state, and local law enforcement to uncover these activities and recover every dollar.”
The settlement resolves the government’s allegations that PremierTox and Nexus submitted three types of false claims during the period of September 2011 through June 2014. During that period, PremierTox was under different, former ownership and management. The government alleged that PremierTox had a swapping arrangement, in which Nexus gave below cost discounts on its urine drug screen tests to patients in Tennessee without insurance, in exchange for physicians’ referring their patients with Medicare or TennCare coverage to Nexus. The government also contended that, in Tennessee, Nexus submitted excessive claims to Medicare and TennCare for laboratory testing that was beyond what was medically reasonable and necessary. In addition, the government claimed that, in Kentucky, PremierTox provided point of care testing cups to medical offices free of charge to induce those providers to use PremierTox’s services.
Under the settlement agreement, PremierTox paid a total of $2,500,000. Of that amount, $2,125,000 covers the conduct in Tennessee, and $325,000 covers the conduct in Kentucky. The United States will receive $1,757,300 under the settlement, and Tennessee will receive $325,200.
"Medically unnecessary lab tests and financial incentives from labs to doctors in exchange for referrals are costing the taxpayers millions of dollars," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "This settlement is one of many that are sending a strong message to the lab industry that they need to clean up their act."
The allegations resolved by today’s settlement were originally raised in two lawsuits filed against PremierTox in Tennessee and Kentucky under the qui tam, or whistleblower provision of the False Claims Act. This provision allows private citizens to bring civil suits on behalf of the government and to share in any recovery.
The lawsuit in Tennessee was filed by a former office manager of a pain clinic in Cookeville. The relator in this case will receive $361,250. The relator who brought the lawsuit in Kentucky is the former CEO of PremierTox and will receive and $56,250.
The Tennessee lawsuit remains pending against several other defendants whom the United States and Tennessee allege violated the False Claims Act and the Tennessee Medicaid False Claims Act.
This case was investigated by the U.S. Department of Health & Human Services Office of Inspector General and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. The United States is represented in these cases by Assistant U.S. Attorneys Ellen Bowden McIntyre for the Middle District of Tennessee and Ben Schecter of the Western District of Kentucky. The State of Tennessee is represented by Assistant Attorney General Phillip Bangle.
The two cases are docketed as United States ex rel. Norris v. Anderson, No. 3:12-cv-00035 (M.D. Tenn.) and United States ex rel. Duncan v. Nexus Lab, Inc., No. 1:14-cv-89-R (W.D. Ky.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
Online Con Artist Sentenced to Prison for Fraud SchemeRead the Press Release
PITTSBURGH - A Maryland resident has been sentenced in federal court to 24 months and one day imprisonment, supervised release for three years and ordered to pay more than $1.2 million in restitution on his conviction of wire fraud and aggravated identity theft, United States Attorney David J. Hickton announced today.
United States District Judge Gustave Diamond imposed the sentence on Sigismond Senyo Segbefia, 29, of Silver Spring, Maryland.
According to the information presented to the court, Segbefia engaged in an online romance scam and defrauded victims out of money by posing as other persons on popular dating websites ChristianMingle.com and Match.com. He also is accused of wiring illicit funds to Ghana.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the successful prosecution of Segbefia.
Oldham County Man Guilty of Aiding and Abetting the Sex Trafficking of A ChildRead the Press Release
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. today announced the guilty plea of an Oldham County, Kentucky, man before Senior District Judge Charles R. Simpson III, in United States District Court, to a charge of aiding and abetting the sex trafficking of a minor
“Howard Chambers subjected this young girl to repeated sexual abuse,” stated U.S. Attorney John Kuhn. “Acting with unfathomable selfishness, he chose to traumatize a child in favor of his own self-gratification. The goal of my office is to obtain a sentence of incarceration that insures Chambers will never touch another child. I do want to thank the law enforcement officers and our prosecutor who worked tirelessly together in the investigation of these crimes. I want the public to know we are doing everything in our power to protect the most vulnerable members of our community.”
Howard Key Chambers, 65, admitted today in court, that he and Christopher Kosicki helped each other to carry out the sex trafficking of a child. Chambers admitted to travelling to co-defendant, Christopher Kosicki’s home in Louisville, to engage in sexual activity with a 10-year-old turned 11-year-old child, between six and eight times, from 2013 until August 2014. The two helped each other entice, harbor, provide, obtain, and maintain a person that had not attained the age of 14 years who was caused to engage in commercial sex acts. Commercial sex acts include any sex act, on account of which anything of value is given to or received by any person. On several occasions, Chambers gave Kosicki money after engaging in sexual activity with the child (age 10 and then 11). On at least one occasion, Chambers admitted to giving money directly to the child after engaging in sexual activity with her. Additionally, on one occasion, Kosicki photographed Chambers engaging in sexual activity with the child.
In 2013, Chambers met co-defendant Kosicki via Craigslist.com. The two communicated online and, eventually, Chambers travelled from Oldham County to Louisville to meet Kosicki at Kosicki’s residence. The criminal activity took place at Kosicki’s Louisville home.
Kosicki was sentenced to serve 50 years in prison, followed by a life term of Supervised Release, by Chief District Judge Joseph H. McKinley Jr., on February 1, 2016. Kosicki pleaded guilty to multiple child sexual exploitation charges, including sex trafficking of a child and the production of child pornography involving 10 children, on July 23, 2015, in U.S. District Court in Owensboro, Kentucky. Kosicki, 27, pleaded guilty in total to 15 charges, in a Superseding Indictment, including sex trafficking a child under age 14, and aiding and abetting another person to cross a state line with intent to engage in sexual acts with a person who had not attained the age of 12 years.
Law enforcement officials first became aware of Kosicki’s criminal conduct after arresting Raymond Shadburn in Seymour, Indiana, on September 24, 2014, on child exploitation charges. During a post-arrest interview, Shadburn provided information that led law enforcement to Kosicki’s residence in Louisville. Shadburn is being prosecuted in the Southern District of Indiana.
Sentencing will be held before Chief Judge McKinley, on July 5, 2016, in Louisville, Kentucky.
Assistant United States Attorneys Jo E. Lawless and Spencer McKiness prosecuted the case. The Indianapolis Police Department, District of Columbia Metro Police, Louisville Metro Police, and the Federal Bureau of Investigation (FBI) conducted the investigation.
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."
Monmouth County, New Jersey, Man Charged with Production and Receipt of Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was arrested today for allegedly soliciting an underage girl to produce images of herself engaged in sexually explicit conduct and send the images to him through an online instant messaging application, U.S. Attorney Paul J. Fishman announced.
Matthew Kaminsky, 49, of Matawan, New Jersey, is charged by complaint with one count of production of images containing child pornography, and one count of receiving images containing child pornography via the internet. He is scheduled to appear later today before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court.
According to documents filed in this case and statements made in court:
Kaminsky allegedly met various underage girls through online chat applications and sent them naked pictures of himself. In late January of 2015, over the course of several days, he began corresponding with a 13-year-old girl over an online chat application and induced her to take nude pictures of herself and to send them to him.
In March 2015 law enforcement officers recovered computer equipment belonging to Kaminsky containing images and videos appearing to be of child sexual abuse.
Law enforcement officers located and interviewed the 13-year-old girl Kaminsky had chatted with online in January of 2015, and she confirmed that she had chatted online with Kaminsky and had sent him nude pictures of herself at his request.
The count of receipt of child pornography carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. The count of production of child pornography carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Molly S. Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Mexican National Arrested in New Mexico Based on Seizure of More Than Seven Pounds of HeroinRead the Press Release
ALBUQUERQUE – Aaron Martin Mercado-Gracia, 30, a Mexican national from Durango, Mexico, made his initial appearance today in federal court in Albuquerque, N.M., on a criminal complaint charging him with possession of more than seven pounds of heroin with intent to distribute. Mercado-Gracia remains in federal custody pending a preliminary hearing and a detention hearing scheduled for April 13, 2016.
The federal charge against Mercado-Gracia was announced by U.S. Attorney Damon P. Martinez, 13th Judicial District Attorney Lemuel Martinez, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Tex., and New Mexico State Police Chief Pete Kassetas.
Mercado-Gracia was arrested on March 25, 2016, after New Mexico State Police officers allegedly found approximately 3.28 kilograms (7.25 pounds) of heroin concealed in the vehicle Mercado-Gracia was driving during a routine traffic stop on Interstate 40 in Cibola County, N.M.
If convicted of the charge in the criminal complaint, Mercado-Gracia faces a statutory penalty of a mandatory minimum of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusation and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the New Mexico State Police with assistance from the 13th Judicial District Attorney’s Office for the State of New Mexico.
Assistant U.S. Attorney Eva M. Fontanez is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with Bernalillo County, DEA, Healing Addiction in our Community (HAC) and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Maumelle Man Sentenced to 20 Years Imprisonment for Production of Child PornographyRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, Special Agent in Charge Raymond R. Parmer, Jr., of the New Orleans Field Office for Homeland Security Investigations, and William J. Bryant, Director of the Arkansas State Police, announced today that Seth Christian Ganahl, age 42, of Maumelle, Arkansas, was sentenced to 20 years imprisonment and a lifetime of supervised release for production of child pornography.
An indictment handed down by a Grand Jury in the Eastern District of Arkansas on February 4, 2015, charged Ganahl with two counts of attempted enticement of a minor to engage in sexual activity, one count of enticement of a minor to engage in sexual activity, one count of transportation of a minor with the intent to engage in sexual activity, one count of attempted production of child pornography, and two counts of production of child pornography.
The charges in the indictment were based on an investigation that began in August 2014, when a minor disclosed to her mother and the Maumelle Police Department that Ganahl had previously asked her to engage in illicit sexual activity on multiple occasions. After the minor’s disclosure, a second minor disclosed that Ganahl had also asked her to engage in illicit sexual activity.
Ganahl was arrested by the Maumelle Police Department on August 27, 2014. Electronic devices seized and searched pursuant to federal search warrants revealed that Ganahl was using the name Christian Canon, and his business, Little Rock Models, to entice minors to send him photographs and videos of the minors engaged in sexually explicit conduct. Ganahl would then pay the minors for the photographs and videos.
On April 12, 2016, Ganahl entered a plea to one count of production of child pornography. Ganahl admitted to meeting minors on various social networking websites and communicating with them via Skype. Ganahl admitted that he asked a minor, via Skype, to send him a nude photograph with his name and the date on it to prove she was not law enforcement. After sending the photograph, the minor later asks Ganahl "do I have to be over a certain age to do this? I will be 16 this month if that is alright." Ganahl responded, "your age is perfect." Ganahl then asked the minor for multiple photographs and videos of her engaging in sexually explicit conduct and paid her at least $900 for the images. Ganahl also admitted to doing a sexually explicit photo shoot at his home with the minor where he made her wear a dog collar and chain.
"The conduct by the defendant in this case continues to show the dangers of the internet and the ability of adults to easily manipulate and prey on children through the internet," Thyer said. "My office hopes that a sentence of 20 years imprisonment plus lifetime supervision sends the message that the internet is not anonymous and we will continue to locate these perpetrators who hide behind screen names and false personas to take advantage of the most vulnerable among us."
Pursuant to a Rule 11(c)(1)(C) plea agreement, the United States and Ganahl agreed to the sentence of 20 years imprisonment. United States District Judge Kristine G. Baker also sentenced Ganahl to a lifetime of supervised release following imprisonment.
"Individuals who produce child pornography are directly responsible for what is, in plain language, the rape of children. Production of child pornography steals the innocence of children and destroys lives," Parmer said. "Criminals who prey on children will continue to be one of the agency’s highest priorities in order to protect the innocent from these terrible crimes."
"This case began with a call to the Arkansas State Police Child Abuse Hotline by the Maumelle Police Department," Bryant said. "It illustrates the importance of a teamwork approach, beginning with the public, and working together with multiple law enforcement agencies to identify and arrest those individuals who prey on innocent children," Bryant said.
The investigation was conducted by the Little Rock Office of Homeland Security Investigations, the Arkansas State Police Crimes Against Children Division, and the Maumelle Police Department. The case was prosecuted by Assistant United States Attorney Kristin Bryant.
Manderson Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that a Manderson, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on April 5, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Hermis Tall, a/k/a Hermis Earl Janis, Jr., age 25, was sentenced to time served, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Tall pled guilty to Assault Resulting in Serious Bodily Injury on January 4, 2016.
The conviction stems from Tall assaulting a female near Manderson between October 23 and 24, 2014. The assault resulted in the victim receiving cuts to her face, bruising to her head and neck, and injury to her hips and pelvic area.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
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Man from Mexico, aggravated felon arrested in New Iberia sentenced for reentering the United States illegally 3 timesRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a man from Mexico was sentenced to 18 months in prison on charges that he reentered the United States illegally at least three times.
Felipe Escobar-Martinez, 41, of Veracruz, Mexico, was sentenced by U.S. District Judge Dee D. Drell on one count of illegal reentry of a removed alien. According to the December 22, 2015 guilty plea, the defendant was arrested in New Iberia, La. Escobar-Martinez admits he is a national of Mexico and was removed from the United States in 1999, 2000 and 2005. The defendant also admits that in June 2000, he was convicted of a crime qualifying as an aggravated felony in Maricopa County, Ariz.
United States Immigrations and Customs Enforcement conducted the investigation. Assistant U.S. Attorney Dominic Rossetti prosecuted the case.
Man Sentenced to 150 Months in Prison for Child Pornography and Drug OffensesRead the Press Release
TUCSON, Ariz. – Yesterday, Tule Israel Alonso-Castaneda, 27, of Douglas, Ariz., was sentenced by U.S. District Judge David C. Bury to serve 150 months in prison. Alonso-Castaneda had pleaded guilty to four counts of distribution of child pornography and one count of possession with intent to distribute marijuana. Alonso-Castaneda’s term of imprisonment will be followed by lifetime supervised release, with stringent sex offender conditions, including the condition that he register as a sex offender.
On Dec. 8, 2010, Alonso-Castaneda was arrested at a U.S. Border Patrol checkpoint when the vehicle he was driving was found to contain 87 pounds of marijuana. In addition to finding the load of drugs he intended to traffic, Border Patrol agents also found cell phone containing images of child pornography. After the defendant was placed on pretrial release for the drug offense on Dec. 13, 2010, he absconded to Mexico until he was re-arrested on June 13, 2014. On Nov. 30, 2011, Alonso-Castaneda was indicted for child pornography offenses by a Federal Grand Jury after the investigation revealed that he was actively trading images of child sexual abuse with a group of other like-minded individuals.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by the Nogales Border Patrol and Department of Homeland Security - Immigrations and Customs Enforcement, Nogales, Arizona. The prosecutions were handled by Carin C. DuryJe and Gordon E. Davenport, III, District of Arizona, Tucson.
CASE NUMBER: CR-11-00050-DCB
CR 11-04067-DCB
RELEASE NUMBER: 2016-032_Alonso-Castaneda
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Little Rock, Iowa Man Sentenced for Transmitting Information about a MinorRead the Press Release
United States Attorney Randolph J. Seiler announced that a Little Rock, Iowa man convicted of Use of Interstate Facilities to Transmit Information about a Minor was sentenced on April 11, 2016, by United States District Court Judge Karen E. Schreier.
Lance Eugene Hunter, Jr., age 30, was sentenced to 18 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Hunter was indicted by a federal grand jury on June 2, 2015. He pled guilty on January 26, 2016.
Hunter responded to an advertisement on the Internet website of Backpage.com that was posted as part of a law enforcement undercover operation. Using his cell phone to send text messages, Hunter agreed to meet at a location in Sioux Falls to have sex with a fictitious 15 year-old girl. Law enforcement officers arrested Hunter after he attempted to leave the scene. They found the cell phone used for text messages as well as $100 in cash.
This case was investigated by the South Dakota Division of Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Hunter was ordered to self-surrender on May 2, 2016.
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Kansas Business Owner Convicted on Federal Tax ChargesRead the Press Release
A Leawood, Kansas, business owner was convicted today of tax fraud following a month-long jury trial, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Barry R. Grissom of the District of Kansas.
The jury found Kathleen Stegman, 58, guilty of four counts of tax evasion relating to her evasion of corporate income taxes for the years 2008 and 2009 and individual income taxes for the years 2007 and 2008. Stegman and her husband, Christopher Smith, 51, were both acquitted on the charge of conspiracy to defraud the United States and Stegman was acquitted on one count of tax evasion.
Stegman owned Midwest Medical Aesthetics Center in Leawood, which provided aesthetic services including microdermabrasion, laser hair removal and anti-aging procedures and products. Smith owned Encompass Construction Group in Independence, Missouri.
“Today’s verdict is a reminder to business owners that they cannot use their companies as their personal piggy banks,” said Acting Assistant Attorney General Ciraolo. “All taxpayers must file true and accurate returns with the IRS to report their income and expenses. Those that fail to do so face significant consequences, including criminal prosecution, prison and monetary penalties.”
According to the evidence at trial, Stegman under-reported her company’s gross receipts and overstated her company’s expenses on the corporate tax returns filed with the Internal Revenue Service (IRS). Stegman also diverted income from the company for her personal use and failed to report the income on her tax returns. The government also presented evidence that Stegman and Smith agreed to fabricate a repairs and maintenance contract between Smith and Midwest Medical in order to increase the company’s business deductions and divert money from the company to their personal use. In December 2010, Stegman wrote a check in the amount of $50,575 to Encompass Construction, which was drawn on Midwest Medical’s bank account. Smith used the money to buy gold coins that were shipped to Stegman’s business address in Leawood. On Midwest Medical’s 2010 corporate tax return, Stegman fraudulently deducted this payment as a business expense for repairs and maintenance.
“Today’s verdict is an important victory for America’s taxpayers who play by the rules and have no tolerance for those who make up their own rules,” said Special Agent in Charge Karl Stiften of IRS-Criminal Investigation. “There is no such thing as free money and there are no awards or incentives for creativity when it comes to crime.”
Stegman faces a statutory maximum sentence of five years in prison and a $250,000 fine on each count of tax evasion. A sentencing date has not yet been set.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Grissom thanked special agents of IRS Criminal Investigation, who investigated the case and Trial Attorneys Ryan R. Raybould and John T. Mulcahy from the Tax Division and Assistant U.S. Attorney Jabari B. Wamble of the District of Kansas, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
KCK Man Charged with Kidnapping Three Victims, Carjacking, Firearms ViolationsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Kan., man has been charged in federal court with kidnapping and robbing three women and forcing them to drive around with him and two accomplices.
Jamerl M. Wortham, 30, of Kansas City, Kan., was charged in a four-count criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Monday, April 11, 2016. Wortham will have an initial court appearance later today.
According to an affidavit filed in support of the federal criminal complaint, Kansas City, Kan., police officers attempted to stop a 2004 silver Jaguar in the area of 3rd and Central on Saturday, April 9, 2016. The Jaguar had been reported as stolen. During the traffic stop the vehicle fled and struck a bridge median. The driver, Wortham, was taken into custody after a foot pursuit. Inside the Jaguar, officers found a loaded sawed-off Coast To Coast Master-Mag 20-gauge shotgun with the serial number filed off.
Also in the vehicle was a woman identified as T.J., who was released from the scene. According to the affidavit, T.J. later arrived at the Central Patrol Division in Kansas City, Mo., to report that she and her roommate, identified as Y.C., were crime victims. She told police that they had been carjacked and that two unidentified men had kidnapped them and forced them to drive around in her roommate’s car, a red 2009 Toyota Camry. She also told police officers there was a third kidnapping victim, identified as M.M. She stated that Y.C. and M.M. were forced to ride with the other two men in Y.C.’s Toyota while T.J. was forced to ride with Wortham in the stolen Jaguar.
T.J. did not mention the kidnapping to police officers at the time of Wortham’s arrest, she said, because Wortham and the other two men had threatened to harm the other girls if anyone spoke to the police. She believed the other two men were watching as Wortham was apprehended and the other two victims’ lives were in danger. T.J. went home after she left the crash scene to check and see if Y.C. was home. When she arrived home and Y.C. was still missing, T.J. contacted the police department to report the carjacking, robbery and kidnapping.
According to the affidavit, T.J. and Y.C. were approached by two unknown men while they were depositing their paychecks at an ATM at about 2 a.m. Saturday, April 9, 2016. One of the men walked up to the driver’s side, grabbed Y.C. and demanded her money. The other man approached the passenger side door and pointed a shotgun at T.J. He forced T.J. into the backseat of the Camry and got into the vehicle. The first man forced Y.C. into the passenger seat as he got into the driver’s seat.
While the second man held the shotgun, the first man demanded the women’s money, ATM cards and bags. He drove the Camry, with the two women still in the vehicle, to an apartment complex in Kansas City, Kan. They allegedly met Wortham, who was driving the Jaguar he had stolen earlier. Wortham and the third victim, M.M. (who had been in the Jaguar), got into the Camry. They drove to another ATM, the affidavit says, and T.J. and Y.C. were forced to withdraw money using their ATM cards. They drove to a gas station and purchased some drugs, the affidavit says, and made several other stops before eventually returning to the Jaguar.
During the drive, the affidavit says, one of the men forced the victims to smoke PCP as he used methamphetamines. When they reached the apartment complex, T.J. was forced to get into the Jaguar with Wortham, who also took the shotgun. The other two victims remained in the Camry with the other two men. Both vehicles left together. Soon after that, police officers stopped Wortham and arrested him. The other men watched as Wortham was taken into the custody, the affidavit says, and fled in the opposite direction.
According to the affidavit, the two men drove the victims to the Blue Springs, Mo., area, where they again stopped to buy drugs. One of the men was dropped off near a gas station in Kansas City, Kan., and Y.C. was told to get into the driver’s seat and drive to the bus stop. At about 9 a.m. they arrived at 108 Askew Avenue in Kansas City, Mo., where M.M. jumped out of the car and ran away.
After M.M. escaped, the affidavit says, the man told Y.C. to drive away and she did. As they drove away, they began to argue. Y.C. slammed on the brakes and caused the man to hit his face. She attempted to force him out of her car, while at the same time trying to get someone’s attention by hitting the horn with her knee. When that didn’t work, she attempted to run from the car but the man grabbed her by the hair. Once she freed herself from his grip, she ran from the car as he chased her. Y.C. used the keys to set off the vehicle alarm in an attempt to get someone’s attention. She ran several blocks and flagged down a motorist who took her back to her car.
The third victim, M.M., later told police that she was at Harpo’s Bar, 4109 Pennsylvania Ave., Kansas City, Mo., around 11 p.m. on Friday, April 8, 2016. She went outside to wait on the curb and got into a car she thought was her Uber car, but actually was the stolen Jaguar driven by Wortham.
The criminal complaint charges Wortham with carjacking, using a firearm during the carjacking, kidnapping and using a firearm during the kidnapping.
Dickinson cautioned that the charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the FBI, the Kansas City, Mo., Police Department and the Kansas City, Kan., Police Department.
Justice Department, Federal Trade Commission Issue Joint Statement on Preserving Competition in the Defense IndustryRead the Press Release
The Department of Justice and the Federal Trade Commission (FTC) today issued a joint statement reaffirming the importance of preserving competition in the defense industry. The statement describes the agencies’ framework for analyzing defense industry mergers and acquisitions and emphasizes that the antitrust agencies work closely with the Department of Defense, which is in a unique position to assess the impact of proposed defense industry consolidation on its ability to fulfill its mission.
“The Department of Justice is committed to preserving competition for current and future defense procurement,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “In light of recent speculation about possible future consolidation, we thought it timely to reinforce that message. Working with our colleagues at the Department of Defense, our mission in reviewing proposed defense industry consolidation is to ensure that our military continues to receive the most effective and innovative products at competitive prices in both the short- and long-term thereby protecting our national security, American soldiers, sailors, marines and air crews, and our nation’s taxpayers.”
“Competition is the essential ingredient that leads to high-quality products at lower prices,” said Chairwoman Edith Ramirez of the Federal Trade Commission. “This is especially critical when it comes to America’s defense industry, which provides the weapons and equipment that our men and women in uniform rely on every day.”
In the joint statement, the federal antitrust agencies emphasize that the particular aspects of the defense industry, such as high barriers to entry, the importance of investment in research and development and the need for surge capacity, can be central to reviewing defense industry mergers and acquisitions. The joint statement also states that defense industry mergers should not adversely affect short or long-term innovation and must maintain a sufficient number of competitors, including both prime and subcontractors, to ensure that competition for current, planned and future procurement remains robust.
The antitrust agencies will continue their close working relationship with the Department of Defense as established by the Defense Science Board Task Force on Antitrust Aspects of Defense Industry Consolidation and are committed to the long-standing practice of giving the Department of Defense's assessment substantial weight in areas where it has special expertise and information, such as national security.
DOJ-FTC Statement (April 12, 2016)
Justice Department Honors Contribututions to Crime Victims' Rights and Services at National CeremonyRead the Press Release
WASHINGTON – Attorney General Loretta E. Lynch today recognized crime victim survivors, advocates and allied professionals at the National Crime Victims’ Rights Service Awards ceremony. This year’s event honored 10 individuals and programs for their extraordinary actions to bring positive and lasting change in the lives of crime victims.
“The extraordinary individuals being honored today are inspiring examples of service and selflessness,” said Attorney General Loretta Lynch. “Whether they are conducting research, championing new policies, or working directly with victims in need, these honorees are helping to revive hopes, restore futures, and reclaim lives. I am deeply grateful for their contributions, and I am proud to say that the Justice Department stands with them in the work of ensuring that every victim of crime in the United States receives the assistance that they need and deserve.”
This year’s theme—Serving Victims, Building Trust, Restoring Hope—focuses the observances for the 2016 Crime Victims’ Rights Week, April 10-16. President Reagan proclaimed the first Victims’ Rights Week in 1981, calling for greater sensitivity to the rights and needs of victims. The Justice Department’s Office for Victims of Crime leads communities across the country in observing National Crime Victims’ Rights Week and hosts an annual award ceremony.
Following is a list of the award recipients, who were nominated by their colleagues in the field and selected by the Attorney General:
- Tomorrow’s Leaders Award – new award for 2016 – honors and highlights youth up to 24 years old who dedicate their efforts to supporting victims of crime.
Recipient: Miki K. Nishizawa of Waipahu, Hawaii.
- Award for Professional Innovation in Victim Service Award recognizes a program, organization or individual who helps expand the reach of victims’ rights and services.
Recipient: Choctaw Nation Victim Services of Hugo, Oklahoma.
- The Crime Victims Financial Restoration Award recognizes individuals, programs, organizations or teams that develop innovative ways of funding services for crime victims or instituted innovative approaches for securing financial restoration for crime victims.
Recipients: Stephen J. Pfleger and Laura D. Rottenborn of the U.S. Attorney’s Office for the Western District of Virginia.
- The Crime Victims’ Rights Award honors those whose efforts to advance or enforce crime victims’ rights benefit crime victims at the state, tribal, or national level. Recipient: Russell P. Butler, Esq., Executive Director of Maryland’s Crime Victims’ Resource Center from Upper Marlboro, Maryland.
- The National Crime Victim Service Award honors extraordinary efforts in direct service to crime victims.
Recipient: National Domestic Violence Hotline of Austin, Texas.
- The Ronald Wilson Reagan Public Policy Award honors leadership, innovation and vision that lead to noteworthy changes in public policy that benefit crime victims.
Recipient: Dr. John P. J. Dussich of Fresno, California.
- The Special Courage Award recognizes extraordinary bravery in the aftermath of a crime or courageous act on behalf of a victim or potential victim.
Recipients: Kim Case of Jefferson City, Missouri and Brenda Tracy of Salem, Oregon.
- The Vision 21 Crime Victims Research Award recognizes individual researchers or research teams that make a significant contribution to the nation’s understanding of crime victims’ issues.
Recipient: Dr. Anne P. DePrince of Denver.
Descriptive narratives and videos of the contributions of recipients are available at Office for Victims of Crime’s Gallery: https://ovcncvrw.ncjrs.gov/Awards/AwardGallery/gallerysearch.html.
About the Office of Justice Programs (OJP)
OJP, headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP can be found at www.ojp.gov.
Justice Department Honors Contributions to Crime Victims’ Rights and Services at National CeremonyRead the Press Release
Attorney General Loretta E. Lynch today recognized crime victim survivors, advocates and allied professionals at the National Crime Victims’ Rights Service Awards ceremony. This year’s event honored 10 individuals and programs for their extraordinary actions to bring positive and lasting change in the lives of crime victims.
“The extraordinary individuals being honored today are inspiring examples of service and selflessness,” said Attorney General Loretta Lynch. “Whether they are conducting research, championing new policies, or working directly with victims in need, these honorees are helping to revive hopes, restore futures, and reclaim lives. I am deeply grateful for their contributions, and I am proud to say that the Justice Department stands with them in the work of ensuring that every victim of crime in the United States receives the assistance that they need and deserve.”
This year’s theme—Serving Victims, Building Trust, Restoring Hope—focuses the observances for the 2016 Crime Victims’ Rights Week, April 10-16. President Reagan proclaimed the first Victims’ Rights Week in 1981, calling for greater sensitivity to the rights and needs of victims. The Justice Department’s Office for Victims of Crime leads communities across the country in observing National Crime Victims’ Rights Week and hosts an annual award ceremony.
Following is a list of the award recipients, who were nominated by their colleagues in the field and selected by the Attorney General:
- Tomorrow’s Leaders Award – new award for 2016 – honors and highlights youth up to 24 years old who dedicate their efforts to supporting victims of crime.
Recepient: Miki K. Nishizawa of Waipahu, Hawaii.
- Award for Professional Innovation in Victim Service Award recognizes a program, organization or individual who helps expand the reach of victims’ rights and services.
Recipient: Choctaw Nation Victim Services of Hugo, Oklahoma.
- The Crime Victims Financial Restoration Award recognizes individuals, programs, organizations or teams that develop innovative ways of funding services for crime victims or instituted innovative approaches for securing financial restoration for crime victims.
Recipients: Stephen J. Pfleger and Laura D. Rottenborn of the U.S. Attorney’s Office for the Western District of Virginia.
- The Crime Victims’ Rights Award honors those whose efforts to advance or enforce crime victims’ rights benefit crime victims at the state, tribal, or national level.
Recipient: Russell P. Butler, Esq., Executive Director of Maryland’s Crime Victims’ Resource Center from Upper Marlboro, Maryland.
- The National Crime Victim Service Award honors extraordinary efforts in direct service to crime victims.
Recipient: National Domestic Violence Hotline of Austin, Texas.
- The Ronald Wilson Reagan Public Policy Award honors leadership, innovation and vision that lead to noteworthy changes in public policy that benefit crime victims.
Recipient: Dr. John P. J. Dussich of Fresno, California.
- The Special Courage Award recognizes extraordinary bravery in the aftermath of a crime or courageous act on behalf of a victim or potential victim.
Recipients: Kim Case of Jefferson City, Missouri and Brenda Tracy of Salem, Oregon.
- The Vision 21 Crime Victims Research Award recognizes individual researchers or research teams that make a significant contribution to the nation’s understanding of crime victims’ issues.
Recipient: Dr. Anne P. DePrince of Denver.
Descriptive narratives and videos of the contributions of recipients are available at Office for Victims of Crime’s Gallery: https://ovcncvrw.ncjrs.gov/Awards/AwardGallery/gallerysearch.html.
About the Office of Justice Programs (OJP)
OJP, headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP can be found at www.ojp.gov.
Jury Convicts Decatur Man for Murder ConspiracyRead the Press Release
Urbana, Ill. – A jury deliberated for approximately four hours before returning a verdict of guilty this afternoon against Kelton Snyder, 23, of Decatur, Ill., for conspiracy to murder a witness, Paige Mars, also of Decatur. Last month, on March 7, Snyder admitted that he and co-conspirator Matthew Vogt robbed the Circle K convenience store at 1685 South Baltimore in Decatur on April 3, 2015. Snyder also admitted that he brandished a 12-gauge shotgun during the robbery, and that at the time, he was a convicted felon.
The trial began last week, on April 5, one year after the death of 19-year-old Mars, on April 5, 2015. During four days of trial, the government presented evidence that Snyder met with Vogt, on April 5, 2015, because he feared that Mars, who served as the robbery getaway driver, might go to law enforcement about the robbery. The government presented evidence, including surveillance camera recordings of the robbery, where Snyder is clearly seen holding a shotgun, the same weapon used to murder Mars. Evidence also included text and Facebook messages that Mars questioned Snyder about information she had heard, that Snyder was violent to women. Mars’ body was found on April 6, 2015, in the vicinity of the sanitation district. Also on April 6, officers executed a search warrant at Snyder’s grandmother’s home, where Snyder had been living in a basement bedroom, in the 300 block of S. 19th Street, Decatur. Officers recovered 20-gauge and 12-gauge shotgun shells from Snyder’s bedroom. On May 15, 2015, officers recovered a Mossberg 12-gauge shotgun hidden along a path in the sanitation district, which was the shotgun used during the robbery and in the murder.
The case is being prosecuted in federal court by Assistant U.S. Attorneys Jason Bohm and Katherine Boyle. The Decatur Police Department and FBI conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Macon County Sheriff’s Office.
Sentencing is scheduled for Aug. 22, 2016. The statutory penalty for conspiracy to murder a witness is life in prison. Snyder remains in the custody of the U.S. Marshals Service.
Juneau Man indicted on distribution of child pornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today Gilbert Valadez-Garcia, a Mexican citizen working in Juneau, was indicted for the distribution of child pornography.
Gilberto Valadez-Garcia, 39, a citizen of Mexico, was arraigned today before U.S. Chief Magistrate Judge Deborah M. Smith on the sole charge of distribution of child pornography. Valadez-Garcia pled not guilty to the charge and was ordered detained pending trial.
Assistant U. S. Attorney Jack S. Schmidt, who is prosecuting the case, indicated that Valadez-Garcia faces a mandatory minimum sentence of five years and a potential maximum sentence of 20 years in prison, and a $250,000 fine, or both if convicted. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Trial was scheduled for June 20, 2016.
The charges against Valadez-Garcia are the result of an investigation conducted by the Federal Bureau of Investigation (FBI). If the public has any further information, questions, or concerns about the activities of Valadez-Garcia please contact the FBI at (907) 265-8254.
This case is being brought as part of Project Safe Childhood. In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Jamaican National Arrested in Broward and Charged in Connection with International Lottery Scheme Based in JamaicaRead the Press Release
A Jamaican national is charged in the Southern District of Florida with participating in an international telemarketing scheme based in Jamaica.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Delany De-Leon Colon, Acting Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, made the announcement.
Joseph C. Smith, 28, of Montego Bay, Jamaica was arrested in the Southern District of Florida for his role in a Jamaica based telemarketing fraud scheme. Smith is charged, by indictment with conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349, mail fraud, in violation of Title 18, United States Code, Section 1341 and wire fraud, in violation of Title 18 United States Code, Section 1343. Smith faces a statutory maximum sentence of 20 years in prison.
According to the indictment, beginning in or about June 2010, Smith’s co-conspirators are alleged to have contacted individual victims in the United States and falsely informed them that they had won a lottery. These co-conspirators told victims they had to pay between several hundred to several thousand dollars, in order to collect their purported lottery winnings. The co-conspirators then instructed the victims on how to send this money, and to whom, including directing that the funds be sent to Smith.
Mr. Ferrer commended the investigative efforts of USPIS, U.S. Immigration and Customs Enforcement's Homeland Security Investigations (ICE-HSI), Miami Field Office, U.S. Marshals Service, Broward County Drug Task Force and the Miami-Dade Police Department Economic Crimes Bureau. The case is being prosecuted by Assistant United States Attorney Bertha R. Mitrani.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Indictment Unsealed Charging Wichita Police Lieutenant with Wire FraudRead the Press Release
WICHITA, KAN. - An indictment unsealed here today charges a Wichita police lieutenant with making fraudulent reports so she would be paid for working a part-time job while she was on duty, U.S. Attorney Barry Grissom said.
Heather D. Bachman, 40, Wichita, Kan., is charged with seven counts of wire fraud and one count of making a false statement to a federal investigator.
The indictment alleges Bachman defrauded the Wichita Police Department by working part time for Orion Security Services while on duty and being paid by the police department. She is alleged to have committed wire fraud by emailing timesheets to Orion.
In count four, she is accused of sending an email to Orion making a claim for mileage. The indictment alleges that in fact she used a marked Wichita Police Department patrol car owned by the City of Wichita. In count six, she is accused of electronically reporting to the city that she worked from 1 p.m. to 11 p.m. on July 2, 2015, which was not true. In count seven, she is accused of electronically filing a tax return to the Kansas Department of Revenue that did not accurately report her earnings from part-time jobs. In count eight, she is accused of making a false statement to an FBI investigator that she never used a Wichita Police Department vehicle to transport a person for her part-time job. In fact, she transported a jewelry company representative and jewelry in her marked patrol car on Feb. 17, 2015.
If convicted, she faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each wire fraud count and a maximum penalty of five years and a fine up to $250,000 on the charge of making a false statement. The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indiantown Resident Guilty of Being a Felon in Possession of a FirearmRead the Press Release
On April 8, 2016, a Fort Pierce jury found an Indiantown resident guilty of being a felon in possession of a firearm.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and William Snyder, Sheriff, Martin County Sheriff’s Office (MCSO), made the announcement.
Andrew Cunningham, III, 32, of Indiantown, Florida was convicted at trial, of being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g). Cunningham faces a maximum statutory sentence of 10 years in prison. He is scheduled to be sentenced by U. S. District Court Senior Judge Paul Huck on June 17, 2016.
According to the court record, including testimony at trial, on May 4, 2015, MCSO Deputies responded to 911 calls reporting that Cunningham had broken a window at a cousin’s residence and threatened relatives after breaking another cousin’s truck window. During the early morning hours of May 5, 2015, Cunningham was brought to the Indiantown Emergency Medical Services (EMS) Station. Cunningham had been shot in the abdomen while outside his residence, but refused to name his shooter. During the course of the shooting investigation, law enforcement responded to Cunningham’s residence. MCSO deputies received consent to search the residence for evidence of the shooting and discovered Cunningham’s bloody jacket, with a bullet hole consistent with his gunshot injury, inside the defendant’s bedroom. In the pocket of the jacket, MCSO detectives found a Ruger .357 revolver, wrapped in a bandana. Cunningham was previously convicted of felony offenses and was prohibited from possessing a firearm.
This case is the result of Project Safe Neighborhoods (PSN). PSN is a Department of Justice nationwide initiative that combines traditional law enforcement activities with community-based support and intervention programs. The two primary goals of the PSN initiative are to reduce and prevent violent crimes and to help past offenders adjust and re-enter the community.
Mr. Ferrer commends the investigative efforts of the ATF and MCSO for their work on this case. The case was prosecuted by Assistant U.S. Attorneys Carmen M. Lineberger and Daniel E. Funk.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Illegal Alien Sentenced to Prison for Possession of a FirearmRead the Press Release
An illegal alien who possessed a firearm was sentenced yesterday to one year in federal prison.
Rufino Rolon-Polo, age 36, a Mexico citizen residing in Hampton, Iowa, received the prison term after a December 29, 2015, guilty plea to one count of possession of a firearm by an alien unlawfully in the United States.
The evidence showed that on November 1, 2015, defendant was seen firing a gun in an alley in Hampton, Iowa. On November 2, 2015, Rolon-Polo was interviewed by officers from the Hampton Police Department and gave consent to search his apartment. During the search of the apartment, officers found a stolen .22 caliber revolver in Rolon-Polo’s dresser. Rolon-Polo later admitted he was a citizen of Mexico and was illegally and unlawfully in the United States. Federal law prohibits illegal aliens from possessing firearms.
Rolon-Polo was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Rolon-Polo was sentenced to twelve months imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Rolon-Polo is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Hampton, Iowa Police Department, the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement Removal Operations, and the Bureau of Alcohol, Tobacco and Firearms.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-3046.
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Hurricane man pleads guilty to Federal arson and witness tampering crimesRead the Press Release
BECKLEY, W.Va. – A Hurricane man pleaded guilty today to a federal arson crime and a federal witness tampering crime, announced Acting United States Attorney Carol Casto. Jimmie Arnold Harper, Jr., 36, entered his guilty plea to aiding and abetting arson and conspiracy to tamper with a witness.
Harper was a Nationwide Mutual Insurance agent with an office in Winfield. Harper admitted that on September 14, 2015, he arranged for a fire to be set at his own residence at 7 Stonegate Drive in Scott Depot. Harper planned for the use of a long range remote firing system to ignite the fire. He placed a chair with a tire in it in an interior room of his residence with the intent for that area to be the ignition spot of the fire. After staging the area, the drywall was knocked out of the wall so that the fire would spread further into the framing of the house. Prior to setting the fire, Harper moved his valuables, such as furnishings and personal items, out of the residence and into a storage unit in the Winfield area. He also arranged to be out of town so the residence would be empty. Another individual drove by the residence in the early morning hours and hit the button on the remote firing system to ignite the fire. The Teays Valley Fire Department was dispatched to the residence and one firefighter fell through the floor in the kitchen and sustained minor burns to his lower extremities. On September 15, 2015, Harper called in a fire claim to his insurance company, Auto Club Insurance Association, for $624,200 in structural damage and $468,150 in personal property loss.
On December 23, 2015, Seth T. Radcliffe, a longtime friend of Harper, was facing kidnapping charges. Harper admitted that on January 24, 2016, he met with witnesses in Radcliffe’s case in an attempt to influence testimony before a federal grand jury. Before the meeting, Harper spoke to Radcliffe about the plan and obtained a letter written by Radcliffe that was read aloud during the meeting. The meeting took place in Harper’s vehicle in the parking lot of a convenience store in MacArthur in Raleigh County. During the meeting with the witnesses, Harper emphasized that the kidnapping charges against Radcliffe needed to go away because of the severe penalties. Harper also suggested limiting answers that could be damaging to Radcliffe by responding with “I don’t know” or “I don’t remember.” Harper admitted that he knew Radcliffe’s letter was not factually correct and was intended to corruptly influence witness testimony. Unbeknownst to Harper, the passenger in the vehicle during the meeting was acting as a confidential informant for law enforcement and recorded the entire meeting.
On January 26, 2016, a federal grand jury sitting in Beckley returned an indictment against Seth T. Radcliffe for one count of kidnapping and one count of discharging a firearm during a crime of violence. On February 9, 2016, a grand jury subpoena was served on Harper for the letter written by Radcliffe. On January 24, 2016, prior to the meeting with the witnesses in Radcliffe’s case, Harper directed the confidential informant to remove the last page of the letter. This page contained twelve numbered paragraphs written by Radcliffe setting forth points Radcliffe wanted to make to defeat the charges. After receiving the grand jury subpoena, Harper instructed the confidential informant to throw the last page of the letter out of his car window along Interstate 77. Law enforcement recovered this page of the letter on February 9, 2016, from Interstate 77.
Harper faces at least 7 years and up to 60 years in federal prison when he is sentenced on August 10, 2016.
The West Virginia State Police Bureau of Criminal Investigation, the West Virginia State Fire Marshal’s Office, the West Virginia Office of the Insurance Commissioner, the FBI, and the Raleigh County Sheriff’s Office conducted the investigation. Assistant United States Attorney Monica D. Coleman is handling the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
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Hogansburg Man Arraigned on Human Smuggling ChargesRead the Press Release
PLATTSBURGH, NEW YORK – Jacob Wesley Martin, age 26, of Hogansburg, New York, was arraigned last month on human smuggling charges.
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.
Martin was indicted on January 20, 2016, for his alleged role in the attempted for-profit smuggling, into the United States from Canada, of three young men from India on September 2, 2015. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
An alleged co-conspirator, Louie John McDonald, age 37, of Snye, Quebec, is being prosecuted in Ontario by provincial and federal crown prosecutors, for his alleged role in the smuggling attempt. In the attempt, two of the three Indian men were killed by drowning when a jet ski capsized in the St. Lawrence River.
If convicted of all charges, Martin faces a minimum term of imprisonment of 5 years, a fine of up to $250,000, and a post-imprisonment supervised release term of 5 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
Martin was arraigned in Syracuse, New York, before United States Magistrate Judge Therese Wiley Dancks, on March 11, 2016. Five days later, he was released with conditions pending trial, which is scheduled for August 8, 2016 in Albany, before United States District Court Judge Mae A. D’Agostino.
This case is being investigated by Homeland Security Investigations’ Border Enforcement Security Task Force with assistance by the Akwesasne Mohawk Police Service, the Canada Border Services Agency, the Royal Canadian Mounted Police, the United States Border Patrol, Customs and Border Protection Office of Field Operations, the Saint Regis Mohawk Tribal Police Department, and the Utica Police Department, and is being prosecuted by Assistant U.S. Attorneys Elizabeth Horsman and Cyrus Rieck.
Hobbs Man Sentenced to 151 Months in Federal Prison for Trafficking Drugs in Lea and Bernalillo CountiesRead the Press Release
ALBUQUERQUE – Joe Padilla, 34, of Hobbs, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 151 months in federal prison followed by four years of supervised release for his conviction on narcotics trafficking charges.
Padilla was one of eight defendants charged as the result of an investigation primarily targeting a drug trafficking organization operating in Lea County, N.M., that allegedly was led by co-defendant Leroy Castillo, 34, of Hobbs, N.M. The investigation, which was led by the FBI and Lea County Drug Task Force (LCDTF) with assistance from the DEA and New Mexico State Police, was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Padilla was arrested in Feb. 2015, on an indictment charging him and co-defendants Castillo, Richard Armijo-Romero, 24, of Moriarity, N.M., Sergio Garza, 35, also of Hobbs, Ruben Estrada, 54, of Las Vegas, N.M., and Charlie Gutierrez, 35, of Albuquerque, N.M., with trafficking narcotics in Lea and Bernalillo Counties, N.M., between late April 2014 and early May 2014. Count 1 of the seven-count indictment charged all six defendants with participating in a cocaine trafficking conspiracy in Lea County in late April and early May 2014. Count 2 charged the six men with participating in a conspiracy to distribute cocaine in Bernalillo County, N.M., on May 1, 2014. Counts 3 and 4 charged Castillo with possession of cocaine and heroin with intent to distribute on May 1, 2014 in Lea County, and Counts 5 and 6 charged Garza with possession of cocaine with intent to distribute on May 1, 2014. Count 7 charged Garza with using and carrying a firearm in relation to a drug trafficking crime.
Padilla was also charged in a separate seven-count indictment filed in June 2014, along with co-defendants Castillo, Mario Flores, 30, of Artesia, N.M., Anthony Pisana, 30, of Roswell, N.M., and Rolando Cantu, 40, of Hobbs. Count 1 of the indictment charged the four men with participation in a methamphetamine trafficking conspiracy from Feb. 2014 through May 2014, in Lea County. Counts 2 and 3 charged certain defendants with possession of methamphetamine with intent to distribute in Eddy and Lea Counties in March 2014, and Counts 4 through 7 charged certain of the defendants with using telephones to facilitate drug trafficking crimes in
Feb., March and April 2016.
Padilla pled guilty on April 7, 2015, to participating in a cocaine trafficking conspiracy and a methamphetamine trafficking conspiracy and to using a telephone to facilitate a drug trafficking crime. Padilla admitted that on April 29, 2014, he agreed with his co-conspirators to deliver money for the purchase of four kilograms of cocaine to an individual in Albuquerque. Padilla also admitted that on March 1, 2014, he communicated with a co-defendant regarding the purchase and distribution of three ounces of methamphetamine.
With the exception of Castillo, all co-defendants have entered guilty pleas. Castillo, who has yet to be arrested, is considered a fugitive. Individuals with information regarding the whereabouts of Castillo are asked to call the FBI at 505-622-6001. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
These cases were investigated by the Las Cruces, Roswell and Albuquerque offices of the FBI and the LCDTF, with assistance from the Las Cruces office of the DEA, the New Mexico State Police and the Phoenix Police Department. The cases are being prosecuted by Assistant U.S. Attorneys Terri L. Abernathy and Shaheen P. Torgoley.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Hagerstown Man Charged with Sex Trafficking of a ChildRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Richard Dane Small, age 31, of Hagerstown, Maryland, today on charges of transporting a minor to engage in sex, and sex trafficking of a minor.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Frederick County Sheriff Charles A. “Chuck” Jenkins; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Frederick County State’s Attorney J. Charles Smith.
According to the indictment, and affidavit in support of the previously filed complaint, on June 22, 2015, the Frederick County Sheriff’s Office received a tip concerning possible prostitution at a hotel room in Frederick. During subsequent surveillance of the hotel, Small was seen leaving the hotel room with two girls and driving away. Police stopped the vehicle in Frederick for an expired vehicle registration. Small and the girls initially identified themselves using false names. The girls were 15 and 17 years old.
The indictment alleges that in June 2015 Small traveled to Johnstown, Pennsylvania with the 15 year old girl to pick up the 17 year old girl, and transported the girls to hotels and other locations in Maryland. Small recruited and enticed the girls to engage in prostitution for him.
According to the indictment, Small persuaded the 15 year old girl to make herself available for prostitution by posting ads on a website. Small directed the 15 year old girl to take calls from clients responding to the ads. Small received the money that she made from prostituting.
Small faces a minimum mandatory sentence of 10 years in prison and a maximum of life in prison followed by up to lifetime of supervised release for both charges. Small is currently detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended the Frederick County Sheriff’s Office, HSI Frederick and Frederick County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Matthew J. Maddox and Seema Mittal, who are prosecuting the case.
Guatemalan Man Sentenced to over Two Years in Prison for Identity TheftRead the Press Release
A Guatemalan man who unlawfully used the Social Security number of a U.S. citizen was sentenced yesterday to more than two years in federal prison.
Efrain Ramos-Gutierrez, age 35, a Guatemalan citizen residing in Postville, Iowa, received the prison term after a December 28, 2015, guilty plea to one count of misuse of a Social Security Number and one count of Aggravated Identity Theft.
The evidence showed that Ramos-Gutierrez used the name and Social Security Number that he knew belonged to another to work in Postville, Iowa. In 2006, Ramos-Gutierrez was arrested in South Dakota by immigration officials, released pending further immigration hearings, and ordered to leave the United States by December 2006. Rather than leave the United States, Ramos-Gutierrez moved to Missouri in 2006, and then to Iowa in 2010 where he obtained work in Postville using the real name and Social Security Number of a U.S. Citizen. On December 11, 2014, Ramos-Gutierrez used the same name and Social Security Number to obtain insurance.
Ramos-Gutierrez was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Ramos-Gutierrez was sentenced to 25 months imprisonment. A special assessment of $200 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Ramos-Gutierrez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-1024.
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Guard, Inmates Charged with Smuggling Drugs into CCA Leavenworth Detention CenterRead the Press Release
KANSAS CITY, KAN. - U.S. Attorney Barry Grissom Monday announced federal charges alleging a guard joined with two inmates and four people outside prison to smuggle methamphetamine, synthetic marijuana, and alcohol and cigarettes to inmates in the CCA Leavenworth Detention Center.
The Leavenworth Detention Center is a detention facility with 1,126 beds located at 100 Highway Terrace in Leavenworth, Kan. It is operated by the Corrections Corporation of America (CCA), a private company that contracts with the Federal Bureau of Prisons, Immigration and Customs Enforcement and the U.S. Marshals Service.
A criminal complaint filed Sunday in U.S. District Court in Kansas City, Kan., alleges the conspirators built an elaborate system for getting contraband into the prison and moving money from inmates behind bars to a man outside the prison who obtained the contraband that he gave to the guard to smuggle into the prison. Outside the prison, inmates’ friends and family members participated by helping to move money from buyers to sellers by wire transfers and other means.
“The criminal complaint alleges that inside the prison methamphetamine and other contraband was delivered to inmates during meetings of the 12 Step Program, in the prison library and during church services,” Grissom said.
Federal charges in the criminal complaint include:
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Conspiracy to distribute methamphetamine (count one).
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Providing methamphetamine to CCA inmates (count two).
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Providing synthetic marijuana to CCA inmates (count three).
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Providing tobacco products to CCA inmates (count four).
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Possessing methamphetamine in CCA (count five).
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Possessing synthetic marijuana in CCA (count six).
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Possessing tobacco products in CCA (count seven).
The following defendants are charged:
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Anthon Aiono , 28, Platte City, Mo., a correctional officer at CCA: counts one, two, three and four.
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Stephen Rowlette, 35, an inmate at CCA: Counts one, five, six and seven.
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Karl Carter, 41, an inmate at CCA: Counts one, five, six and seven.
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David Bishop, also known as Mr. Green, 68, Sedalia, Mo.: Counts one, two, three and four.
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Alica Tackett, 29, Independence, Mo., Stephen Rowlette’s wife: Counts three and four.
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Catherine Rowlette, 59,Sedalia, Mo., mother of Stephen Rowlette: Counts one, two, three and four.
Among the allegations in the criminal complaint and affidavit are these:
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The investigation began in 2015 after federal investigators learned that drugs and other contraband were regularly entering the CCA.
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Inside the prison, inmates took deliveries of contraband during meetings of the 12-step program, in the law library and during church services.
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During phone calls from CCA, inmates gave family members and friends instructions on how to get money to the people who provided the contraband. In some cases, they argued over the phone about how to purchase Wal-Mart money grams.
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During one phone conversation, inmates talked about getting “blistered” on drugs and walking around like “zombies” behind bars.
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In one phone call from behind bars, an inmate directed family members to try “Superflea,” a flea market in Kansas City, Mo., to find synthetic marijuana for sale.
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Inmates devised a scheme for disguising money arriving in incoming mail by using large manila envelopes with the names of law firms and concealing the money beneath a letter-sized white envelope affixed to the front of the envelope.
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Inside CCA, contraband was expensive. In one conservation, an inmate described a pack of cigarettes costing $150 in CCA.
Upon conviction, the crimes carry following penalties:
Count one (methamphetamine conspiracy): A maximum of 20 years and a fine up to $1 million.
Counts two and five (providing or possessing methamphetamine in prison): A maximum of 20 years in federal prison and a fine up to $250,000.
Counts three, four, six and seven (providing or possessing contraband in prison): A maximum penalty of six months and a fine up to $100,000.
The case was investigated by the U.S. Marshals Service, the Kansas Bureau of Investigation, the U.S. Secret Service, the Internal Revenue Service and the Social Security Administration – Office of Inspector General. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
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Greenfield Restaurant Owner Pleads Guilty to Cooking the BooksRead the Press Release
BOSTON – Ioanis Dimitriou, 48, of Montague, pleaded guilty yesterday in U.S. District Court in Springfield to five counts of filing false tax returns from 2008 to 2012. Sentencing is scheduled for Aug. 30, 2016.
Dimitriou was the owner of a restaurant in Greenfield, Mass., which generated a substantial amount of cash sales which he took from the business and did not declare as income. Dimitriou systematically deleted records from his computer system and kept two sets of books which depicted the actual sales of the business and the sales disclosed on his tax returns. As a result, Dimitriou paid only five percent of the more than $232,000 in taxes that he owed.
The charging statute provides a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000 and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; made the announcement today. The case is being prosecuted by Alex J. Grant of Ortiz’s Springfield Branch Unit.
Government Contractor Charged with Sex Trafficking and Sexually Exploiting Minors AbroadRead the Press Release
A government contractor is charged with sexually exploiting and trafficking in children, while working overseas.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Christopher Rennie Glenn, 36, of West Palm Beach, Florida is charged by superseding indictment with: two counts of conspiracy to commit sex trafficking by fraud and of a minor in violation of Title 18, United States Code, Section 1594(c); two counts of sex trafficking by fraud and of a minor, in violation of Title 18, United States Code, Section 1591(a)(1); four counts of attempting to engage in sex trafficking by fraud and of a minor, in violation of Title 18, United States Code, Section 1594(a); one count of traveling overseas with the intent to engage in illicit sexual conduct, in violation of Title 18, United States Code, Section 2423(b); one count of sexually assaulting a minor, in violation of Title 18, United States Code, Section 2243(a); and one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(A). All of the charged conduct occurred outside of the United States, in either Iraq or Honduras, and largely while Glenn, a United States citizen, was working as a network system administrator contracted by the United States Department of Defense. Title 18, United States Code, Sections 1596, 3261, and 3271, provide for extraterritorial jurisdiction in the sex trafficking and child exploitation offenses charged.
Glenn is accused of engaging in an elaborate scheme to sexually exploit young girls in 2010 and from 2012 through 2014 in Honduras, where he had moved to work at the U.S. Army Southern Command’s Joint Task Force Bravo, in Soto Cano Air Base. The criminal complaint filed in August of 2015 claims that Glenn, with the aid of coconspirators, fraudulently recruited young girls living in rural villages to work as housekeepers at his home. In exchange, Glenn promised to pay a significant amount of money to the families. The government alleges that, shortly after the girls’ arrival to Glenn’s home in Honduras, he sexually assaulted the girls, or sought to “marry” the minors to engage in sexual acts with them. Some victims claim that Glenn gave them pills that made them sleepy and dizzy. Some pills seized by law enforcement from Glenn’s Honduras residence in March of 2014 were determined to be drugs that can be used as sedatives. At the detention hearing, the Government further alleged that Glenn had engaged in sexual acts with a minor female from Mexico and that, in 2005, he possessed electronic images of this sexual abuse in Iraq while working as a government contract worker. These images of child pornography were also recovered from Glenn’s residence in Honduras in 2014.
Glenn was initially arrested in February 2014, and charged in the Southern District of Florida with national-security and espionage related violations (Case No. 14-80031-CR-KAM(s)). In 2015, Glenn pled guilty to charges in that case and was sentenced to a ten-year term of imprisonment.
The child exploitation charges are the culmination of a two-year long investigation led by the FBI Miami Field Office’s Violent Crimes Against Children Squad. The case is being prosecuted by Special Prosecutions Assistant United States Attorneys Barbara A. Martinez, Olivia S. Choe, and Vanessa Singh Johannes, from the United States Attorney’s Office for the Southern District of Florida.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Golden Valley Woman Sentenced for Mail Theft in Mohave CountyRead the Press Release
FLAGSTAFF, Ariz. – Yesterday, Nicole Leigh Davis, 35, of Golden Valley, Ariz., was sentenced by U.S. District Judge Susan R. Bolton to 12 months in federal prison to be followed by three years of supervised release. Davis previously pleaded guilty to one count of felony possession of stolen mail.
The investigation was initiated by the Mohave County Sheriff’s Office, which was investigating a stolen travel trailer in which Davis was living. Davis was found to be in possession of over 300 pieces of stolen mail, including numerous stolen credit cards, identification cards, and Social Security cards.
“Unscrupulous people like Ms. Davis, who steal the identities of others and use them for personal gain, cause not only financial loss but also great inconvenience to innocent people in the community. We will do all we can under the law to insure that such people are held accountable as was Ms. Davis,” stated United States Attorney, John Leonardo.
"This sentence should serve as a strong deterrent to others who would consider stealing another's identity," said Inspector in Charge Keith Fixel. "The U.S. Postal Inspection Service remains dedicated to our mission of protecting our nation's mail system from criminal misuse."
The investigation in this case was conducted by the United States Postal Inspection Service and the Mohave County Sheriff’s Office. The prosecution was handled by the Flagstaff U.S. Attorney’s Office.
CASE NUMBER: CR-16-08010-1-PCT-SRB
RELEASE NUMBER: 2016-031_Davis
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or more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Fugitive Convicted of Federal Tax Crimes Arrested by the U.S. Marshals Service in Arizona After More Than 14 Years on the RunRead the Press Release
A fugitive and former lawyer, who had been on the run since being sentenced to more than six years in prison on tax charges in 2002 was apprehended last week in Phoenix, Arizona, by the U.S. Marshals Service, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Palle Bognaes aka Pono, 74, was convicted in 2001 following a two-week jury trial in Reno, Nevada, of conspiracy to defraud the United States, obstructing the administration of the internal revenue laws, tax evasion and failure to file income tax returns. On Jan. 28, 2002, U.S. District Judge David W. Hagen of the District of Nevada sentenced Bognaes to 80 months in prison. Bognaes failed to report to prison in March 2002 to begin serving his sentence and remained a fugitive until he was apprehended on April 2.
The evidence at trial demonstrated that Bognaes, a lawyer, engaged in a scheme in which he created Unincorporated Business Organizations (UBOs) for his clients. Bognaes then instructed his clients to transfer title of their assets into the UBOs and told them that they did not have to pay personal income taxes on those assets. Bognaes collected significant fees for his services. Bognaes referred to these UBOs by various names, including Massachusetts Trust, Common Law Trust and Pure Trust Organizations.
Bognaes also assisted co-defendant Jose Gastanaga of Reno, in setting up a UBO. Together they conspired to evade the payment of more than $2 million in taxes owed by Gastanaga. Bognaes assisted Gastanaga by attempting to prevent the Internal Revenue Service (IRS) from seizing two homes for nonpayment of those taxes and obstructed the IRS’s sale of Gastanaga’s interest in a ranch located in Paradise Valley, Nevada. Bognaes also created UBOs for several other clients, including doctors and chiropractors and taught his clients how to conduct their transactions through the use of nominees and by wiring funds offshore to Turks and Caicos. For one client, Bognaes generated fake receipts to support $67,000 of false deductions during an IRS audit.
At the time of his arrest, Bognaes contended that his name was Sam Smith. However, after the FBI confirmed that the individual arrested was, in fact, Bognaes, he was transferred to the custody of the Bureau of Prisons to begin serving his prison term.
Acting Assistant Attorney General Ciraolo commended the diligent investigation of the U.S. Marshals Service in Phoenix and in Reno for bringing Bognaes to justice after 14 years. Acting Assistant Attorney General Ciraolo also thanked IRS – Criminal Investigation, who investigated this case and Trial Attorney Lori A. Hendrickson of the Tax Division and Assistant U.S. Attorney Anastasia King, formerly of the Tax Division, who prosecuted this case with valuable assistance from the U.S. Attorney’s Office in Reno.
Four Individuals Indicted in April Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the April 2016 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
JASON WAYNE CAREY, age 36, of Wagoner, Oklahoma
Felon In Possession Of Explosive
Felon In Possession Of Firearm And AmmunitionThe Indictment alleges that on or about March 29, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, an explosive, to-wit: Hexamethylene triperoxide diamine (HMTD), a firearm, to-wit: Seekins Precision Model SP223, .223 cal. semi-automatic rifle and ammunition, in which all had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Wagoner County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and are in violation of Title 18, United States Code, Sections 842(i)(1) and 844(a)(1) and Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment; up to a $250,000.00 fine or both.
Assistant United States Attorney Christopher Wilson
MARQUE DESHARD THOMAS, age 40, of Austell, Georgia
Possession Of A Counterfeit Obligation Of The United States
Possession Of A Counterfeit Security Of An OrganizationThe Indictment alleges that on or about February 28, 2016, in the Eastern District of Oklahoma, the Defendant, MARQUE DESHARD THOMAS, did with intent to defraud, possess counterfeit obligations and securities of the United States, which he knew to be falsely made, forged and counterfeited and did knowingly possess counterfeited securities from organizations which operate in interstate commerce, with intent to deceive another.
The charges arose from an investigation by the Davis Police Department and the Oklahoma Highway Patrol and are in violation of Title 18, United States Code, Sections 472 and 2, punishable by not more than 20 years imprisonment; up to a $250,000.00 fine or both and Title 18, United States Code, Sections 513(a) and 2, punishable by not more than 10 years imprisonment; up to a $250,000.00 fine or both.
Assistant United States Attorney Dean Burris
LEON RICHARD AUTRY, age 42, of Cookson, Oklahoma
Possession With Intent To Distribute Methamphetamine
Possession Of A Firearm In Furtherance Of A Drug Trafficking Crime
Felon In Possession Of FirearmThe Indictment alleges that on or about March 2, 2016, within the Eastern District of Oklahoma, the defendant, LEON RICHARD AUTRY, did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance. It is further alleged that on that same date, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms, which had been shipped and transported in interstate commerce and did possess those firearms in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States, that is, Possession with Intent to Distribute Methamphetamine.
The charges arose from an investigation by the Cherokee County Sheriff’s Office, the Tahlequah Police Department and the Bureau of Alcohol, Tobacco and Firearms. The charges are in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 10 years imprisonment or more than Life, up to a $8,000,000.00 fine or both; Title 18, United States Code, Section 924(c)(1)(A), punishable by not less than 5 years imprisonment, up to a $250,000.00 fine or both and Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to $250,000.00 fine or both .
Assistant United States Attorney Shannon Henson
LUKE AUSTIN HOMER, age 35, of McAlester, Oklahoma
Felon In Possession Of Firearm
Possession With Intent To Distribute MethamphetamineThe Indictment alleges that on or about March 5, 2016, in the Eastern District of Oklahoma, the defendant, LUKE AUSTIN HOMER, did knowingly and intentionally possess with intent to distribute a mixture and substance containing a detectable amount of methamphetamine and having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce a firearm, which had been shipped and transported in interstate commerce. The charges arose from an investigation by the Pittsburg County Sheriff’s Office and the Drug Enforcement Administration.
The charges are in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by not more than 20 years imprisonment, up to a $1,000,000.00 fine or both and Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Dean Burris
Former President of Financial Services Firm Sentenced to Prison for Investment Fraud SchemeRead the Press Release
RICHMOND, Va. – James E. Dunivan, Jr., 52, of Powhatan, was sentenced today to 27 months in prison for wire fraud. Dunivan was also ordered to pay $500,000 in restitution to victims of the offense.
Dunivan pleaded guilty on January 15. According to court documents, Dunivan was formerly the president of Virginia Financial Associates, Inc., an insurance and investment firm located in Richmond. Between May 2012 and January 2015, Dunivan engaged in a scheme to defraud two investors by convincing both to invest in two separate limited liability companies (LLCs). Dunivan represented to one investor that an LLC established by Dunivan would operate a hedge fund, and that the investor’s money would be used as capital to establish, market, and operate the hedge fund. Between May 2012 and July 2013, the investor provided Dunivan with $425,000 for investment in the hedge fund. Instead of using the investor’s money for the promised purposes, Dunivan used the funds to pay for personal and lifestyle expenses—including mortgage payments for his personal residence and over $20,000 in private school tuition—and to make interest payments owed to the investor and others related to separate investments. Between September 2014 and January 2015, Dunivan then solicited money from a second investor, representing to that investor that an LLC established by Dunivan would function as a proprietary trading firm, and that the investor’s money would be used to trade futures. After initially obtaining $50,000 from the investor, Dunivan then told the investor that the investor’s capital account had increased due to trading gains, causing the investor to invest another $25,000. In fact, Dunivan used most of the investor’s money for his own personal expenses.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Douglas F. Mease, Special Agent in Charge of the U.S. Secret Service’s Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge James R. Spencer. Assistant U.S. Attorney Dominick S. Gerace prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-202.
Former Employee Sentenced to Federal Prison for EmbezzlingRead the Press Release
A woman who embezzled from her employer for more than five years was sentenced today to more than two years in federal prison.
Teresa Meeks, age 60, from Cedar Rapids, Iowa, received the prison term after a December 22, 2015, guilty plea to one count of wire fraud.
In a plea agreement, Meeks admitted that, while employed as an accountant for Primus Construction, Inc. in Cedar Rapids, she embezzled more than $350,000 from the company and related companies over a five year period. Meeks wrote checks to herself from company bank accounts and then covered up those checks by altering the company’s books to make the checks appear to have been used to pay legitimate business expenses or voided. In total, Meeks stole $377,610.36 in this way from September 2009 through October 2014, when her embezzlement was discovered.
Meeks was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Meeks was sentenced to 33 months’ imprisonment. A special assessment of $100 was imposed, and she was ordered to make $379,980.88 in restitution to Primus Construction, Inc. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Meeks is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-98-LRR.
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Former East Cleveland police officer sentenced to nearly four years in prisonRead the Press Release
A former East Cleveland police officer was sentenced to nearly four 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, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Eric Jones pleaded previously guilty to one count of conspiracy against rights and one count of Hobbs Act conspiracy
Malone, of Cleveland, and Antonio Jones, of Cleveland Heights, were detectives assigned to the Street Crimes Unit. They were supervised by Sgt. Torris Moore. The unit, including Moore, Malone and Jones, were familiar with several drug traffickers, according to court documents.
From 2014 through June 2014, the defendants 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, which Moore reviewed, knew was incorrect, but she failed to correct the inaccuracies. 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 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.
Torris Moore pleaded 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. She was sentenced to nine years in prison
Officers Antonio Malone pleaded guilty to one count of conspiracy against rights and one count of Hobbs Act conspiracy. His sentencing is pending.
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 Bank Teller Sentenced to Prison for Cashing Fraudulently Obtained Tax Refund ChecksRead the Press Release
Cashed More Than 360 Checks Totaling More Than $780,000
A Columbus, Georgia, resident was sentenced today to 18 months in prison for her role in a stolen identity refund fraud conspiracy, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney G.F. Peterman, III for the Middle District of Georgia.
According to court documents, between February 2013 and May 2014, Vicky Wheeler, 55, worked as a bank teller at a SunTrust Bank branch in Columbus. Wheeler was approached by several co-conspirators who wanted her to cash fraudulently obtained tax refund checks in exchange for a fee. Wheeler was informed that the tax refund checks were generated from tax returns filed using stolen identities. To disguise the fraudulent nature of the checks, Wheeler made false entries on the face of the checks to make it appear as if she received identification when the checks were cashed. Wheeler never received any forms of identification. In total, Wheeler received and cashed approximately 361 fraudulent tax refund checks, including U.S. Treasury checks and tax refund checks issued by financial institutions that claimed $780,760.17 in tax refunds.
“The prosecution of stolen identity refund crimes remains a top priority of the department,” said Acting Assistant Attorney General Ciraolo. “These cases are not limited to those individuals who file fictitious tax returns. We will vigorously pursue participants at all levels of these schemes, including those who steal identities and those who, like Ms. Wheeler, assist in cashing the refund checks that result from the fraud.”
“Stolen identity refund fraud results in major loss of revenue to the United States Government,” said Special Agent in Charge Veronica F. Hyman-Pillot of the Internal Revenue Service-Criminal Investigation (IRS-CI). “Vicky Wheeler abused her position of trust and allowed greed and deceit to fuel criminal behavior. Today she is being held accountable for her actions. Her prison sentence and restitution order should send a message that refund fraud, greed, and deceit does not payoff in the end.”
In addition to the prison term, U.S. District Judge Clay D. Land ordered Wheeler to serve three years of supervised release and pay restitution in the amount of $780,760.17.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Peterman commended special agents of IRS-CI and the U.S. Secret Service, who investigated the case and Trial Attorney Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Crawford L. Seals of the Middle District of Georgia, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Bank Teller Sentenced to Prison for Cashing Fraudulently Obtained Tax Refund ChecksRead the Press Release
WASHINGTON – A Columbus, Georgia resident was sentenced today to 18 months in prison for her role in a stolen identity refund fraud conspiracy, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney G.F. Peterman, III for the Middle District of Georgia.
According to court documents, between February 2013 and May 2014, Vicky Wheeler, 55, worked as a bank teller at a SunTrust Bank branch in Columbus. Wheeler was approached by several co-conspirators who wanted her to cash fraudulently obtained tax refund checks in exchange for a fee. Wheeler was informed that the tax refund checks were generated from tax returns filed using stolen identities. To disguise the fraudulent nature of the checks, Wheeler made false entries on the face of the checks to make it appear as if she received identification when the checks were cashed. Wheeler never received any forms of identification. In total, Wheeler received and cashed approximately 361 fraudulent tax refund checks, including U.S. Treasury checks and tax refund checks issued by financial institutions that claimed $780,760.17 in tax refunds.
“The prosecution of stolen identity refund crimes remains a top priority of the department,” said Acting Assistant Attorney General Ciraolo. “These cases are not limited to those individuals who file fictitious tax returns. We will vigorously pursue participants at all levels of these schemes, including those who steal identities and those who, like Ms. Wheeler, assist in cashing the refund checks that result from the fraud.”
“Stolen identity refund fraud results in major loss of revenue to the United States Government,” said Special Agent in Charge Veronica F. Hyman-Pillot of the Internal Revenue Service-Criminal Investigation’s (IRS-CI). “Vicky Wheeler abused her position of trust and allowed greed and deceit to fuel criminal behavior. Today she is being held accountable for her actions. Her prison sentence and restitution order should send a message that refund fraud, greed, and deceit does not payoff in the end.”
In addition to the prison term, U.S. District Judge Clay D. Land ordered Wheeler to serve three years of supervised release and pay restitution in the amount of $780,760.17.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Peterman commended special agents of IRS-CI and the U.S. Secret Service, who investigated the case and Trial Attorney Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Crawford L. Seals of the Middle District of Georgia, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Florida Man Charged with Insurance Fraud ViolationsRead the Press Release
PHILADELPHIA – Samuel Mangel, 53, of Boca Raton, Florida, was charged by indictment, unsealed today, in an insurance fraud scheme, announced United States Attorney Zane David Memeger. Mangel is charged with wire fraud relating to the sale of life insurance policies and engaging in the business of insurance after having been convicted of a felony involving dishonesty.
The indictment alleges that Mangel ran businesses in Jenkintown, Pennsylvania, that brokered the sale of life insurance policies and that were involved in the business of issuing insurance policies. The indictment alleges that, in brokering the sale of the life insurance policies, Mangel falsely represented to the sellers of the policies the full commissions and full amounts that the buyers agreed to pay and that Mangel falsified records to hide the additional payments by the buyers. As the broker, Mangel received the full commission payments, which were supposed to be used, in part, to pay the other agents. The indictment also alleges that Mangel, after having been convicted of a criminal felony involving dishonesty, illegally engaged in the business of insurance in the issuance of $7.5 million of life insurance policies.
If convicted of all charges, Mangel faces a statutory maximum term of 85 years in prison, mandatory restitution, a possible fine, a period of supervised release, and forfeiture may be ordered.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Sarah L. Grieb.
Indictments are accusations. A defendant is presumed innocent unless and until proven guilty.