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Tuesday 23 February 2016
Scotland Neck Man Sentenced for Selling HeroinRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, Chief United States District Judge James C. Dever, III, sentenced GERALD WHITAKER, 41, of Scotland Neck, North Carolina, to 120 months in prison and 3 years of supervised released for distribution of heroin. WHITAKER previously pled guilty to these charges on November 23, 2015.
Between June 21, 2013, and July 22, 2013, the Halifax County Sheriff’s Office and the North Carolina Alcohol Law Enforcement used an informant to buy 182 doses of heroin from WHITAKER on four occasions in Scotland Neck, N.C.
WHITAKER received an enhanced punishment as a career offender based on his four prior state convictions for selling cocaine.
The investigation of this case was conducted by the Halifax County Sheriff’s Office and the North Carolina Alcohol Law Enforcement. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
San Diego Man Who Stole Thousands of Pounds of Copper Wire from Midway Post Office SentencedRead the Press Release
Assistant U. S. Attorney Meghan E. Heesch (619) 546-9442
NEWS RELEASE SUMMARY – February 23, 2016
SAN DIEGO – James Stephen Dudley, who caused over $100,000 in damage to the Midway Post Office by breaking in and stealing copper wire, has been sentenced to 30 months in custody. U.S. District Court Judge Janis L. Sammartino also ordered Dudley to pay back the U.S. Postal Service for the cost to repair the building damages as restitution.
Dudley was charged in October 2015 with theft of government property, theft of postal service property, and forcibly breaking into a post office with intent to commit larceny after U.S. Postal Inspectors saw him break into the Midway Post Office located at 2535 Midway Drive on September 16, 2015. According to court records, Dudley had cut the lock on the fence of the Post Office to get inside.
After spending several hours in the Post Office stripping copper wire in the middle of the night, Postal Inspectors saw Dudley drive his vehicle onto Postal property and load approximately 673 pounds of copper wire inside it. Dudley was arrested but had planned to scrap the copper wire from the Post Office for cash as he had done on at least five prior occasions during 2015. Dudley pleaded guilty to theft of government property in December 2015.
Judge Sammartino, in sentencing Dudley on February 19, 2016, ordered him to pay restitution to the U.S. Postal Service for the full amount of the damage to the Midway Post Office, $123,984.08.
U.S. Attorney Laura Duffy said, “This office is committed to protecting the integrity of government buildings which ensures the employees who serve the public have a safe place to do their important work.”
“Today's sentence should send a clear message,” said Los Angeles Postal Inspector in Charge Robert Wemyss. “The Postal Inspection Service will not tolerate attacks on our facilities. Postal Inspectors will aggressively investigate these cases and bring the thieves to justice.”
DEFENDANT Case Number 15cr2685-JLS
James Stephen Dudley Age 40
SUMMARY OF CHARGES
Title 18, United States Code, Section 641 (theft of government property) - Maximum penalty: 10 years in prison; $250,000 fine
Title 18, United States Code, Section 1707 (theft of postal service property) - Maximum penalty: 3 years in prison; $250,000 fine
Title 18, United States Code, Section 2115 (forcibly breaking into a post office with intent to commit larceny) - Maximum penalty: 5 years in prison; $250,000 fine
AGENCIES
U.S. Postal Inspection Service
San Diego Police Department
Rosebud Woman Indicted on Assault ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, woman has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Tianna Arellano, age 29, was indicted on February 17, 2016. She appeared before U.S. Magistrate Judge Mark A. Moreno on February 19, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction for each charge is up to 10 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.
The Indictment alleges that on or about December 26, 2015, Tianna Arellano assaulted an individual with a knife with intent to do bodily harm and that said assault resulted in serious bodily injury.
The charges are merely an accusation and Arellano 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 Kirk W. Albertson is prosecuting the case.
Arellano was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rosebud Man Indicted for Assaulting a Federal OfficerRead 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 Assaulting a Federal Officer.
Dustin Bear Heels, age 27, was indicted on February 17, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 19, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 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.
The Indictment alleges that on or about February 2, 2016, Dustin Bear Heels assaulted a Federal Officer by using a dangerous weapon and inflicting bodily injury.
The charge is merely an accusation and Bear Heels is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Law Enforcement Services. Assistant U.S. Attorney Kirk W. Albertson is prosecuting the case.
Bear Heels was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rochester Man Pleads Guilty to Heroin and Gun PossessionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney William J. Hochul Jr. announced today that Mario Velasquez, 36, pleaded guilty before U-S District Judge Charles J. Siragusa to possession with intent to distribute heroin and possession of a firearm in furtherance of drug trafficking activities. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life, a fine of $1,000,000, or both.
Assistant U.S. Attorney Douglas E. Gregory, who is handling the case, stated that in June 2015, agents with the Drug Enforcement Administration, the Greater Rochester Area Narcotics Enforcement Team (GRANET) and the Rochester Police Department conducted an investigation into Mario Velasquez and the sale of heroin from his residence and a nearby residence on Electric Avenue in Rochester. After making a series of undercover purchases of heroin from Velasquez, a search warrant was executed at both locations. Officers recovered over 350 individual bags of heroin packaged for street level sales, a loaded handgun, assorted live ammunition and approximately $2,400 in cash. Velasquez was arrested at his residence.
The plea is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the Rochester Police Department, under the direction of Chief Michael Ciminelli, and the Greater Rochester Area Narcotics Enforcement Team (GRANET).
Sentencing is scheduled for May 26, 2016 before Judge Siragusa.
Restaurant Manger Sentenced for Harboring Undocumented WorkersRead the Press Release
KANSAS CITY, KAN. – A man who managed a restaurant in Ottawa, Kan., was sentenced Tuesday for harboring undocumented workers, U.S. Attorney Barry Grissom said today. He was sentenced to six months in federal custody, followed by six months home confinement and a fine of $4,000. After serving his sentence, he will be on supervised release for three years.
Alex Sanchez, Jr., 36, who was the manager of El Mezcal Mexican Restaurant in Ottawa, Kan., pleaded guilty to one count of harboring undocumented workers for commercial advantage. In his plea, he admitted that in 2011 he paid a fine of $22,589 fine when Immigration and Customs Enforcement found him in violation of rules for I-9 employee eligibility verification forms.
Despite the fine, he continued to employ workers in 2012 who he knew were not legally in the United States. He provided housing for the undocumented workers and paid them in cash.
Grissom commended Immigration and Customs Enforcement, Assistant U.S. Attorney Chris Oakley and Special Assistant U.S. Attorney Colin Wood for their work on the case.
Repeated Illegal Re-Entry Results in 28 Months Imprisonment for Mexican NationalRead the Press Release
HONOLULU -- United States District Judge Leslie E. Kobayashi sentenced Palemon Alexander Delatorre, age 37, to 16 months imprisonment and three years of supervised release on February 16, 2016, for re-entering the United States from Mexico without permission. In a related hearing conducted immediately after his sentencing, Judge Kobayashi revoked Delatorre's supervised release in another criminal immigration case and sentenced him to an additional 12 months imprisonment to be served consecutively to the 16 months imprisonment.
United States Attorney Florence T. Nakakuni said that according to court documents and information presented in court, Delatorre was previously convicted in this district court in September 2014, of re-entering the United States in May 2014 after having been deported in April 2014 following his apprehension by the Hawaii Police Department in Kona. Only two months prior to that deportation, in February 2014, Delatorre had been allowed to voluntarily leave the United States after being arrested by the Hawaii Police Department in Kona for contempt and traffic-related offenses.
According to information produced to the court, after he served approximately three and a half months in prison on his prior conviction for illegal re-entry, Delatorre, who also was sentenced to a one-year term of supervised release, was again deported back to Mexico in September 2014. Subsequently, Delatorre unlawfully re-entered the United States and was again arrested by the Hawaii Police Department in March 2015, resulting in the illegal re-entry charge and violation of a term of supervised release for which he was sentenced on February 16.
The investigation was conducted by Immigration and Customs Enforcement’s Homeland Security Investigations, assisted by the Hawaii Police Department. The prosecution was handled by Assistant U.S. Attorney Tracy Hino.
Registered Sex Offender Indicted on Child Pornography ChargesRead the Press Release
PROVIDENCE, R.I. – Jason D. Boudreau, 41, of Woonsocket, was arraigned on Monday in U.S. District Court in Providence on a 33-count federal indictment charging him with 33 counts of allegedly accessing with intent to view child pornography. A federal grand jury returned the indictment on February 16, 2016.
Boudreau has been detained in federal custody since his arrest and initial appearance before U.S. District Court Magistrate Judge Lincoln D. Almond on December 29, 2015, on a federal criminal complaint issued in this matter.
Boudreau’s indictment and arraignment is announced by United States Attorney Peter F. Neronha; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; and Woonsocket Acting Police Chief Captain Michael R. Lemoine.
According to court documents, it is alleged that between August 16 and October 9, 2015, Boudreau digitally accessed more than 750 images of alleged child pornography with the intent to view.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
According to court documents and information presented to the court, Boudreau was convicted in Rhode Island state court in March 2012 for 2nd degree child molestation and in January 2014 for possession of child pornography. At the time of sentencing for possession of child pornography, Boudreau was ordered to register as a sex offender.
Accessing child pornography is punishable by a mandatory minimum sentence of 10 years in federal prison, with a maximum of 20 years imprisonment.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose.
The matter was investigated by the Rhode Island State Police Internet Crimes Against Children Task Force, Homeland Security Investigations and the Woonsocket Police Department.
Homeland Security Investigations agents were assisted by members of the Branford, Conn., police department at the time the defendant was located and arrested in Connecticut on December 29, 2015.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Recruiter in Multi-Million Dollar Mortgage Fraud Sentenced to PrisonRead the Press Release
LOS ANGELES – A Los Angeles man who recruited churches into a $4.2 million mortgage scheme that defrauded Broadway Federal Bank has been sentenced to serve one year and one day in federal prison.
Chester Peggese, 59, received the prison sentence yesterday from United States District Judge Manuel L. Real, who also ordered the defendant to pay $4.2 million to Broadway Federal Bank and $38,609 to the Internal Revenue Service.
Peggese pleaded guilty in 2015 to one count of bank fraud and one count of subscribing to a false tax return.
“It is beyond dispute that mortgage fraud does significant harm to the country,” said United States Attorney Eileen M. Decker. “Crimes like these in the aggregate place financial institutions in jeopardy, which in turn places the entire economy in jeopardy.”
According to the plea agreement filed in the case, Peggese acted as a “consultant” who targeted Los Angeles-area churches with promises of new mortgages to purchase property or refinanced mortgages from Broadway Federal Bank. Between 2007 and 2009, Peggese met with representatives of churches and obtained financial information required for the loan applications. Others involved in the scheme altered the financial information to make it appear the churches were more financially sound than they actually were, and Peggese caused these false loan applications to be submitted to Broadway Federal Bank.
A bank insider, Paul Ryan, provided a template for presenting financial information for the churches that ensured the loan applications would be approved. Based on the false information concerning the financial status of the churches, Broadway Federal Bank issued loans to the churches. Peggese received his payment from the escrow accounts and paid kickbacks to Ryan.
Ryan, 48, also of Los Angeles, pleaded guilty in 2014 to one count of receiving bribes and rewards as a bank employee. Ryan is scheduled to be sentenced by United States District Judge S. James Otero on May 9, at which time he will face a statutory maximum sentence of 30 years in federal prison. Ryan has agreed to pay restitution of $353,925 to Broadway Federal Bank.
When Peggese pleaded guilty, he admitted submitting false financial information for an unidentified church to Broadway Federal Bank in 2007. As a result of this false information, Broadway Federal Bank issued a $1.33 million loan. When the church defaulted on the loan, Broadway Federal Bank suffered a $403,010 loss.
In relation to the tax count, Peggese admitted he failed to report $106,325 of business income that he received in 2008, at least a portion of which was derived from the scheme to defraud Broadway Federal Bank. In addition, for calendar years 2007 and 2009, Peggese had additional gross business receipts not reported on his tax returns of $39,900 and $13,536, respectively. As a result of this unreported income, the total taxes owed by Peggese for the years 2007 through 2009 is $38,609.
The investigation into Peggese and Ryan was conducted by the Federal Bureau of Investigation, IRS Criminal Investigation, the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Federal Deposit Insurance Corporation’s Office of Inspector General.
Portage Man Pleads Guilty in Money Laundering SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Portage, Pa. pleaded guilty in federal court in Johnstown on a charge of conspiring to commit money laundering, United States Attorney David J. Hickton announced today.
Gary E. Vaughn, 41, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from Jan. 1, 2012, to Jan. 22, 2014, Vaughn, along with co-defendants, conspired with one another, and with others, to commit certain offenses against the United States, that is, to knowingly conduct and attempt to conduct financial transactions affecting interstate and foreign commerce, which involved property representing the proceeds of a specified unlawful activity, that is, mail fraud, with the intent to promote the carrying on of the specified unlawful activity, and that while conducting and attempting to conduct such financial transaction knew that that property involved in the financial transaction represented the proceeds of some form of unlawful activity.
It was part of the conspiracy that the direction of and business decisions at Gary’s Steals and Deals were made by Tonia Vaughn and/or Gary E. Vaughn. It was further part of the conspiracy that, on a daily basis, customers would bring stolen new merchandise [aka “new in package (NIP)” or “new in box (NIB)”] to Gary’s Steals and Deals for purchase by Gary’s Steals and Deals. It was further part of the conspiracy that, on a daily basis, employees of Gary’s Steals and Deals would purchase the stolen new merchandise, knowing it had been stolen. It was further part of the conspiracy that employees at Gary’s Steals and Deals would tender a monetary percentage of the retail value of the stolen new merchandise back to the customer. It was further part of the conspiracy that on frequent occasions, the same customer(s) would bring numerous identical stolen new items of merchandise to Gary’s Steals and Deals (including but not limited to razor blades, pet products, teeth whitening strips, ink cartridges, jackets, Lego sets), which were repetitively purchased from the customer(s) by employees at Gary’s Steals and Deals. It was further part of the conspiracy that the stolen merchandise that had been purchased from the customers by Gary’s Steals and Deals was thereafter sold by Gary’s Steals and Deals over the Internet on websites such as Ebay and Amazon. It was further part of the conspiracy that Gary’s Steals and Deals utilized the mail to deliver the stolen merchandise to persons who had purchased such merchandise over the Internet. It was further part of the conspiracy that Gary’s Steals and Deals would receive monetary payments for the stolen merchandise that had been sold over the Internet. It was further part of the conspiracy that, in connection with the above-described offense (mail fraud) the named defendants obtained proceeds of such conduct.
Judge Gibson scheduled sentencing for June 9, 2016, at 11 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation, Laurel Highlands Resident Agency, conducted the investigation that led to the prosecution of Vaughn.
Pittsburgh Man Sentenced to 5 Years in Prison for Dealing Crack CocaineRead the Press Release
PITTSBURGH -A Pittsburgh resident of Pittsburgh, PA, has been sentenced in federal court to five years (60 months) imprisonment, to be followed by four years of supervised release, on his conviction of violations of federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Dwayne Allen, aka Dewayne Allen, 41.
According to information presented to the court, in 2013 and 2014, the Federal Bureau of Investigation and other agencies targeted Allen and other drug traffickers in the Homewood section of Pittsburgh. On Dec. 5, 2013, the agents utilized a confidential informant to purchase one ounce of crack cocaine from Allen for $1,300. The informant made another slightly larger purchase of crack cocaine for $1,900 from Allen on Jan. 28, 2014. And on Feb. 14, 2014, the informant paid $4,000 to Allen and obtained 3 ounces of crack cocaine.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the FBI Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation leading to the prosecution of Allen.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pain Doctor Sentenced to 6 Years in Prison for Overprescribing Controlled SubstancesRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Glenn Davis, 63, of Johnstown, Pa., pleaded guilty to 24 counts of the Indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea to Counts one through 24, from June 4, 2012 to August 29, 2012, Dr. Davis prescribed and distributed thousands of Schedule II controlled substances (i.e., Oxycodone and Methadone) to “Patient A” outside the usual course of professional practice.
Immediately following his guilty plea, Dr. Davis was sentenced by Judge Gibson to 72 months imprisonment, followed by three years of supervised release, and a $2,400 special assessment.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Office of the Pennsylvania Attorney General, the Cambria County Drug Task Force, and the Internal Revenue Service Criminal Investigation Division conducted the investigation that led to the prosecution of Davis.
Owner of Burley Income Tax Preparation Business Pleads Guilty to Preparing Falsified Income Tax Returns for ClientsRead the Press Release
BOISE – Cruz “Kelly” Chacon, 42, of Burley, Idaho, pleaded guilty yesterday in United States District Court to preparing false income tax returns for clients of her business, “Kelly’s Tax Service,” U.S. Attorney Wendy J. Olson announced.
Chacon pleaded guilty to one count of assisting, advising, and counseling clients to submit materially false federal income tax returns to the IRS. According to the plea agreement, the IRS estimates that from 2008 through 2011, Chacon and some of her employees at Kelly’s Tax Service submitted over 2,500 federal falsified income tax returns. They did this primarily by claiming tax credits to which their clients were not entitled. Specifically, Chacon and her employees would prepare tax returns that claimed the “child tax credit” and the “additional child tax credit” for taxpayers who did not qualify for these credits. This had the effect of increasing clients’ tax refunds, which helped the defendant to generate business. As part of her plea agreement, Chacon has agreed to pay $81,384.00 in restitution.
Sentencing is set for May 9, 2016, before Chief U.S. District Judge B. Lynn Winmill.
“Those who intentionally submit falsified income tax returns to the IRS victimize all taxpayers because we all share the costs of paying for the improper tax refunds,” said Olson. “We will continue to work closely with the IRS to root out this illegal activity, especially where a tax preparation business assists individuals in breaking the law.”
“Choose carefully when hiring a tax preparer and avoid tax preparers who claim they can obtain larger refunds than other preparers,” said Stephen Boyd, IRS Criminal Investigation Special Agent in Charge for the State of Idaho. For tips on Choosing a Tax Professional go to www.irs.gov.
Advising, assisting, and counseling in the preparation of a false income tax return punishable by up to three years imprisonment, a $250,000 fine, a term of supervised release of one year, and a $100 special assessment.
The case was investigated by the IRS Criminal Investigations division.
Otero County Prison Inmate Sentenced to 12.5 Years in Federal Prison for Scheme to Smuggle Drugs into Otero County PrisonRead the Press Release
ALBUQUERQUE – An inmate formerly housed at the Otero County Prison Facility (OCPF) in Chaparral, N.M., was sentenced today in federal court in Las Cruces, N.M., for his participation in a conspiracy to smuggle methamphetamine and heroin into the OCPF. Gary Borja, 28, of Albuquerque, N.M., was sentenced to 151 months in federal prison followed by three years of supervised release.
Borja was one of six individuals charged in April 2014, in a criminal complaint with conspiracy to violate the federal narcotics laws by smuggling controlled substances into the OCPF. The other defendants charged with participating in the conspiracy were Luis Delgadillo, 39, of El Paso, Texas, who was a corrections officer at OCPF during the conspiracy, Ana Lopez, 26, of Albuquerque, N.M., Nancy Salas, 37, of Alamogordo, N.M., and Armando Lopez, 29, of Anthony, Texas and Eric Lovato, 32, of Alamogordo, who were both inmates at the OCPF. All six defendants subsequently were indicted on Aug. 20, 2014, and charged with conspiracy to distribute methamphetamine and heroin from Dec. 2013 through April 26, 2014, in Otero County, N.M.
The FBI initiated an investigation into the case in Jan. 2014, after receiving information from the New Mexico Corrections Department showing that Delgadillo was smuggling heroin and methamphetamine into the OCPF. The investigation, which included a review of recorded inmate telephone calls and OCPF surveillance video, physical surveillance and the results of inmate drug testing, identified the six defendants as members of a conspiracy who smuggled narcotics into the OCPF between Jan. 2014 and April 2014.
Borja pled guilty to the indictment on Nov. 12, 2014, and admitted to conspiring with his co-defendants to smuggle drugs into the OCPF, more specifically, Borja admitted recruiting Delgadillo to help smuggle the drugs into the jail. In Dec. 2013, Delgadillo smuggled one ounce of methamphetamine into the jail; on Feb. 5, 2014 and March 14, 2014, Delgadillo smuggled one ounce of heroin into the jail; and on April 26, 2014, a co-conspirator of Borja’s met with Delgadillo and gave him 25 grams of methamphetamine, 11 grams of heroin and ten Suboxone pills to smuggle into the jail.
The five co-defendants have entered guilty pleas to the indictment. On Jan. 12, 2016, Delgadillo was sentenced to 40 months in prison followed by three years of supervised release. On June 24, 2015, Ana Lopez was sentenced to 30 months in federal prison followed by two years of supervised release. On Feb. 18, 2016, Armando Lopez was sentenced to 84 months in prison followed by three years of supervised release and Lovato was sentenced to 70 months in prison followed by three years of supervised release. Salas has yet to be sentenced.
This case was investigated by the Las Cruces office of the FBI and the New Mexico Corrections Department and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative 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 trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Northeast Pennsylvania Check Casher Charged in Stolen Identity Refund Fraud SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Diego Rojas, age 42, of Dunmore, Pennsylvania, was indicted on January 19, 2016 by a federal grand jury in Scranton for conspiracy to make false claims against the government. The case was unsealed on February 19, 2016 following Rojas’ initial appearance before U.S. Magistrate Judge Joseph F. Saporito, Jr.
Rojas owned and operated Dunmore Cash Checking, a check-cashing, tax preparation and money transfer business in Dunmore. In 2013 Rojas deposited more than 350 United States treasury checks, at least 250 of which were identified as Stolen Identitiy Refund Fraud (SIRF) checks. The approximate value of these checks was $1,600,000. Each of these checks was deposited into a bank account that Rojas owned under the name of Dunmore Cash Checking between January and November 2013.
According to United States Attorney Smith, the prosecution of fraudulent tax refund schemes that rob tax payers as well as the government is a high priority in this district.
The Department of Justice views the prosecution of Stolen Identity Refund Fraud, or “SIRF,” as vital. These schemes disrupt the orderly administration of the income tax system for hundreds of thousands of law abiding taxpayers nationwide and have cost the United States Treasury billions of dollars. SIRF crimes are often perpetrated by criminal enterprises with key individuals at all stages of the scheme: those who steal Social Security Numbers and other personal identifying information, those who file false returns with the Internal Revenue Service, those, including check cashers, who facilitate obtaining the refunds, and those who promote the schemes. These criminal enterprises exploit the highly automated systems for storing personal information, preparing and filing tax returns electronically, and generating income tax refunds quickly—often in the form of electronic payments. Everyone with a Social Security Number is potentially vulnerable to having his or her identity stolen. The IRS estimates that during the 2013 filing season alone, over 5 million tax returns were filed using stolen identities, claiming approximately $30 billion in refunds.
The charges in the present case are the result of ongoing investigations by the Scranton Office of the Internal Revenue Service, Criminal Investigation, with assistance from the Pennsylvania State Police, the Hazelton, Taylor, Dickson City, Dunmore and Olyphant Police Departments, and the Lackawanna and Luzerne County District Attorneys’ Offices. The case is assigned to Assistant United States Attorney Evan Gotlob for prosecution.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years imprisonment, a term of supervised release following imprisonment, and a $500,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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North Carolina Grocery Store Owner Sentenced to Prison for ConspiracyRead the Press Release
A Wendell, North Carolina, man was sentenced to 20 months in prison today following his plea of guilty to commit theft of government funds, Acting Assistant Attorney General Caroline D. Ciraolo of the Department of the Justice’s Tax Division and Acting U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina announced.
According to court documents, Jose Alfonso Rodriguez Collado, 54, operated two grocery stores in Middlesex and Siler City, North Carolina. In 2012, co-conspirators brought Rodriguez fraudulently obtained U.S. Treasury checks, which Rodriguez cashed without receiving identification for the individuals listed on the checks, or any other source of authority for the co-conspirators to cash the checks. Rodriguez initially was not a licensed check casher, but one co-conspirator gave him $50,000 to qualify for a check-cashing license. In exchange for cashing the fraudulently obtained U.S. Treasury checks, Rodriguez was paid a fee for cashing the checks in excess of that allowed for under North Carolina law. In addition, Rodriguez cashed checks in excess of $10,000 and failed to file Currency Transaction Reports as required by law. The conspiracy caused a loss to the government of $2,502,348.
In addition to the prison term, U.S. District Court Judge Louise W. Flanagan of the Eastern District of North Carolina ordered Rodriguez to serve three years of supervised release following his prison term, and pay restitution to the IRS in the amount of $2,502,348.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Bruce commended special agents of Internal Revenue Service Criminal Investigation who investigated the case and Trial Attorneys Lauren Castaldi and Nathan Brooks of the Tax Division, who prosecuted the case.
More information about the Tax Division and its enforcement efforts can be found on the division’s website.
North Carolina Grocery Store Owner Sentenced to Prison for ConspiracyRead the Press Release
WASHINGTON – A Wendell, North Carolina man was sentenced to 20 months in prison today following his plea of guilty to commit theft of government funds, Acting Assistant Attorney General Caroline D. Ciraolo of the Department of the Justice’s Tax Division and Acting U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina announced.
According to court documents, Jose Alfonso Rodriguez Collado, 54, operated two grocery stores in Middlesex and Siler City, North Carolina. In 2012, co-conspirators brought Rodriguez fraudulently obtained U.S. Treasury checks, which Rodriguez cashed without receiving identification for the individuals listed on the checks, or any other source of authority for the co-conspirators to cash the checks. Rodriguez initially was not a licensed check casher, but one co-conspirator gave him $50,000 to qualify for a check-cashing license. In exchange for cashing the fraudulently obtained U.S. Treasury checks, Rodriguez was paid a fee for cashing the checks in excess of that allowed for under North Carolina law. In addition, Rodriguez cashed checks in excess of $10,000 and failed to file Currency Transaction Reports as required by law. The conspiracy caused a loss to the government of $2,502,348.
In addition to the prison term, U.S. District Court Judge Louise W. Flanagan of the Eastern District of North Carolina ordered Rodriguez to serve three years of supervised release following his prison term, and pay restitution to the IRS in the amount of $2,502,348.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Bruce commended special agents of Internal Revenue Service Criminal Investigation who investigated the case and Trial Attorneys Lauren Castaldi and Nathan Brooks of the Tax Division, who prosecuted the case.
More information about the Tax Division and its enforcement efforts can be found on the division’s website.
Mount Jackson Man Pleads Guilty to Cocaine ChargeRead the Press Release
HARRISONBURG, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the guilty plea of a Mount Jackson man to a federal cocaine charge.
Victor Enrique Velez-Sellas, 31, of Mount Jackson, Va., waived his right to be indicted and pled guilty yesterday in the United States District Court for the Western District of Virginia in Harrisonburg to one count of conspiring to distribute 500 grams or more of cocaine.
“It is a priority of the United States Attorney’s Office to prosecute those individuals who distribute illegal drugs in our communities,” United States Attorney John P. Fishwick Jr. said today.
According to evidence presented at yesterday’s guilty plea hearing by Assistant United States Attorney Jeb Terrien, between 2013 and February 2015 Velez-Sellas participated in a conspiracy to distribute cocaine. The defendant often obtained drugs from sources in Puerto Rico, North Carolina and West Virginia. He then sold the drugs, or provided them on consignment, to other drug dealers located in and around Winchester, Virginia.
Velez-Sellas was arrested on February 18, 2015 by law enforcement officer on Interstate 81 in Frederick County, Virginia while the defendant was in the process of traveling to make a sale of cocaine. At the time of his arrest, the defendant was in possession of a digital scale, a Ruger P89 9mm pistol and 568.2 grams of cocaine.
The investigation of the case was conducted by the Drug Enforcement Administration and the Northwest Virginia Regional Drug and Gang Task Force. Assistant United States Attorney Jeb Terrien is prosecuting the case for the United States.
Missouri Tax Preparation Business Owner Indicted for Tax EvasionRead the Press Release
The owner of a St. Louis, Missouri, tax return preparation business was arrested today after a federal grand jury sitting in St. Louis returned an indictment on February 18 charging two counts of tax evasion, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the indictment, from 2005 to 2011, Semere Tsehaye, 38, was the owner and operator of at least 20 Instant Tax Service (ITS) franchise locations operating in and around East Saint Louis, Illinois; Kansas City, Kansas; Kansas City and Saint Louis, Missouri. ITS was a brand name of ITS Financial LLC, a nationwide tax preparation business headquartered in Dayton, Ohio. Tsehaye owned and operated his ITS franchise locations using two entities named A&S Tax Service LLC (A&S) and ERI Enterprises, LLC (ERI).
During the years 2010 and 2011, Tsehaye generated fraudulent financial summaries that understated the gross receipts generated by A&S and ERI and provided them to his tax return preparer. Tsehaye’s tax return preparer used these financial summaries to prepare Tsehaye’s individual income tax returns, which Tsehaye then filed with the Internal Revenue Service (IRS). These tax returns were false in that they underreported A&S and ERI’s gross receipts by a total of approximately $506,000 in 2010 and $1.03 million in 2011.
If convicted, Tsehaye faces a statutory maximum sentence of five years in prison and a $250,000 fine on each count of tax evasion.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case and Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Tax Division, who are prosecuting the case. Acting Assistant Attorney Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of Missouri for their assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Missouri Man Sentenced for Theft, Lacy Act ViolationsRead the Press Release
KANSAS CITY, KAN. – A Missouri man was sentenced Tuesday to two years on federal probation during which he is banned from hunting for stealing a tractor and hunting in Kansas in violation of the federal Lacy Act, U.S. Attorney Barry Grissom said. In addition, he was ordered to pay a $5,000 fine, and $6,894 in restitution.
Thomas Morgan, 31, Blue Springs, Mo., pleaded guilty to one count of transporting a stolen vehicle across state lines and one count of violating the Lacy Act, which prohibits interstate transportation of wildlife that was illegally taken. In his plea, Morgan admitted a Rice County deputy stopped him in November 2013 after Morgan had been hunting deer in Stafford County without a license or deer permits. Morgan had been illegally hunting in the dark. Investigators found deer heads in his car. A search warrant at his home turned up heads, antlers, skulls and capes of deer.
During the investigation, agents of the U.S. Fish and Wildlife Service learned Morgan was involved in the theft of a Kubota tractor in Miami County. The tractor was found at Morgan’s residence.
Grissom commended the U.S. Fish and Wildlife Service, the Kansas Department of Wildlife, Parks and Tourism, the Rice County Sheriff’s Department, the Miami County Sheriff’s Department and Assistant U.S. Attorney Chris Oakley for their work on the case.
Michigan pair charged with attempting to provide marijuana to federal inmateRead the Press Release
A federal grand jury returned a three-count indictment charging Kauba Simpson, 28, and Makoyia D. Jenkins, both of Dearborn, Michigan, with attempt to provide marijuana to a federal inmate and attempt to possess marijuana by a federal inmate, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
The indictment alleges that on or about August 30, 2014, Jenkins attempted to provide marijuana to Simpson, an inmate in the Elkton Federal Correctional Institution, which he attempted to possess. It also alleges that Jenkins made a false and fraudulent statement to a correctional officer at Elkton FCI, in that she indicated the marijuana was not in her possession, when in fact, it was.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Elkton Federal Correctional Institution. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
McLaughlin Man Charged with Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Child Abuse.
Fritz Wallace Eagle Shield, III, age 40, was indicted on February 17, 2016. He appeared before U.S. Magistrate Judge William D. Gerdes on February 19, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction 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. Restitution may also be ordered.
The Indictment alleges that on or about December 27, 2015, Eagle Shield abused, exposed, tortured, tormented, and cruelly punished a child who had not attained the age of seven.
The charge is merely an accusation and Eagle Shield is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Eagle Shield was released on bond pending trial. A trial date has not been set.
Mark Berger Convicted of Drug TraffickingRead the Press Release
LYNCHBURG, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today that following a jury trial in the United States District Court for the Western District of Virginia in Lynchburg, Mark Berger has been convicted on federal drug trafficking charges.
Mark Andrew Berger, 42, of Roanoke, Va., was convicted yesterday evening following a jury trial in United States District Court in Lynchburg. Berger was convicted of conspiracy to traffic in cocaine.
“The United States Attorney’s Office continues to be vigilant in our investigation and prosecution of drug trafficking offenses,” United States Attorney John P. Fishwick Jr. said today. “This conviction shows our commitment to making our communities safer by taking those individuals who distribute illegal drugs off our streets.”
According to evidence presented at trial by Assistant United States Attorney Donald Wolthuis, Berger, and others, conspired to distribute cocaine between 2000 and February 2015. Berger also maintained a property, specifically 1118 Tompkins Avenue in Roanoke, Va., for the purpose of manufacturing, distributing and using crack cocaine.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Donald Wolthuis prosecuted the case for the United States.
Man Pleads Guilty to Drug, Gun ChargesRead the Press Release
DANVILLE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced that a local man pled guilty yesterday in the United States District Court for the Western District of Virginia in Danville to drug and gun charges.
Gordon Lawrence Penn, 62, Martinsville, Va., pled guilty yesterday to one count of possession with the intent to distribute cocaine and one count of possessing a firearm in furtherance of a drug trafficking crime.
“The United States Attorney’s Office will continue to prosecute those individuals who deal in illegal drugs and possess illegal firearms,” United States Attorney John P. Fishwick. “Keeping drugs off our streets is paramount to keeping our communities safe.”
The investigation of the case was conducted by the Martinsville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Andrew Bassford is prosecuting the case for the United States.
Lynchburg Woman Pleads Guilty to Fraud ChargesRead the Press Release
LYNCHBURG, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the guilty plea of a Lynchburg woman charged with a variety of fraud charges.
Catherine Pankey, 62, of Lynchburg, Va., pled guilty today in the United States District Court for the Western District of Virginia in Lynchburg to one count conspiracy to commit mail and wire fraud and two counts of student loan fraud.
“Today’s conviction holds accountable a number of individuals who committed a variety of frauds,” United States Attorney John P. Fishwick Jr. said today. “The United States Attorney’s Office will continue to pursue federal charges in cases involving financial fraud.”
The investigation of the case was conducted by The investigation of the case was conducted by the United States Department of Education- Office of the Inspector General, the United States Secret Service, the Virginia State Police, the Campbell County Sheriff’s Office and the Lynchburg Police Department. Assistant United States Attorney Jennifer R. Bockhorst will prosecute the case for the United States. Assistant United States Attorney Jennifer Bockhorst is prosecuting the case for the United States.
Louisville Chiropractor Guilty of Health Care FraudRead the Press Release
Billed private insurance companies and government health care agencies for services that were not performed
LOUISVILLE, Ky. – A Louisville chiropractor pleaded guilty to numerous charges today, including health care fraud, obstruction of a criminal investigation, and tampering with a witness for his role in billing private insurance companies and government health care agencies for services that were never performed, announced United States Attorney John E. Kuhn, Jr.
According to the plea agreement, Devin Thauberger, age 46 , conspired to submit fraudulent claims to Medicare, Passport, Anthem, Humana, Geico, Shelter, Nationwide, Allstate and other insurance carriers, that falsely and fraudulently sought reimbursement for services which were never provided to patients, including times in which Thauberger was out of the country and unable to provide services.
Between April 2009 and March 2014 the defendant admits to knowingly executing a scheme to defraud health care benefit programs by submitting claims for services, which were never performed. According to the charges, false claims were submitted and billed on at least thirteen occasions and totaled nearly $214,672.11. Then between May 2015 and July 2015, Thauberger, while being on bond, aided and abetted by others, submitted claims to Allstate, a health care benefit program, for services which were never performed.
Also, beginning in August 2013, and continuing until at least July 2014, Thauberger admitted to willfully obstructing the criminal investigation of Federal health care violations by altering or causing patient records to be altered and attempting to influence the testimony of witnesses.
During all times relevant to this indictment, Thauberger was a doctor of chiropractic, licensed to practice in the state of Kentucky, and had been a chiropractor for approximately nine (9) years. Thauberger Chiropractic, P.S.C. (TCP) was a Kentucky corporation located at 8511 Preston Highway, in Louisville, Kentucky. Defendant Thauberger was the president and sole owner of TCP from 2005 through all times relevant to this Indictment.
Co-defendant Trisha Muir, pleaded guilty to a single charge on September 1, 2015, before District Judge Greg N. Stivers. According to the plea agreement, beginning in 2010, she became employed by TCP and reported directly to defendant Thauberger. By April 2011, Muir was responsible for billing for services purportedly provided by TCP, which included submitting reimbursement claims to insurance companies and patients for chiropractic services purportedly provided by TCP. After Muir became aware of the investigation, she admitted to participating in concealing the fraud, and instructed others to do the same, by making changes to patient files and other documentation to support the fraudulent billings.
At sentencing, the United States has agreed to dismiss counts 3, 4, 5, and 6 of the Second Superseding Indictment, agree that a sentenced of 41 months in prison is the appropriate disposition of this case, not object that the last 5 months of the sentence be served on home incarceration and stipulate that the amount of loss involved in this case is $214,672.11 which the defendant must pay by the date of sentencing. Sentencing is scheduled before Judge Stivers on June 2, 2016, in Louisville.
This case is being prosecuted by Assistant United States Attorneys Lettricea Jefferson-Webb and Joe Ansari and is being investigated by the Federal Bureau of Investigation (FBI), the U.S. Department of Health and Human Services Office of Inspector General and the Kentucky Office of Attorney General’s Kentucky Medical Fraud Control Unit.
Local Woman Pleads Guilty to Counterfeit ChargesRead the Press Release
ABINGDON, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today that a local woman has pled guilty to a pair of counterfeiting charges in the United States District Court for the Western District of Virginia in Abingdon last Friday.
Kendra Lane Dalton, 38, pled guilty last week to two counts of attempting to use counterfeit United States.
“No matter the scale of the operation, bringing charges against those who attempt to undermine our financial system by counterfeiting money must be taken seriously,” United States Attorney John P. Fishwick Jr. said today.
Last week in District Court, Dalton admitted to attempting to pass counterfeit U.S. currently on two separate occasions, November 8, 2015 and November 9, 2015.
The investigation of the case was conducted by the Washington County Sheriff’s Office and the United States Secret Service. Assistant United States Attorney Jennifer Bockhorst is prosecuting the case for the United States.
Local Man Pleads Guilty to Methamphetamine ChargesRead the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the guilty plea of a local man charged in the United States District Court for the Western District of Virginia in Roanoke to drug charges.
Derek Ryan McGhee, 38, Roanoke, Va. pled guilty yesterday in District Court to conspiracy to distribute methamphetamine.
“Methamphetamine is a drug that has ravaged parts of Southwest Virginia for years. The United States Attorney’s Office will continue to identify and prosecute those individuals who distribute this dangerous substance,” United States Attorney John P. Fishwick Jr. said today.
The investigation of the case was conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco and Firearms and the Virginia State Police. Assistant United States Attorney Andrew Bassford is prosecuting the case for the United States.
Local Daycare Worker and Brownsville Man Get Significant Sentences for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Christina Cortez, 39, of Corpus Christi, and Matthew Harbin, 30, of Brownsville, have been handed long prison terms for producing child pornography, announced U.S. Attorney Kenneth Magidson. Harbin was also sentenced for child pornography charges stemming from the Northern District of Alabama. Cortez and Harbin pleaded guilty Sept. 23, 2015.
Today, Senior U.S. District Judge Hayden Head sentenced Harbin to a total of 35 years in federal prison. He was ordered to serve 300 months for the Corpus Christi charges and another 120 months for the Alabama case which will be served consecutively for a total of 420 months in federal prison. The sentence will be followed by a lifetime of supervised release. Cortez was sentenced to 20 years in federal prison to be immediately followed by 20 years of supervised release. Both must register as sex offenders. At the hearing, the victim’s mother gave a statement explaining how the crime affected her daughter and family.
The court also heard that the case began after Harbin was identified as providing images to an undercover officer in England. Using the email address [email protected], Harbin provided three photos of a child clothed and not sexually posed, but that appeared to be taken at a daycare facility. Harbin told the undercover officer he had more pictures, wanted to trade and asked the undercover officer if they had a daughter and how young they were “in to.” Harbin later sent five more pictures of what appears to be the same female child, but that were sexually explicit in nature. One image depicts the child laying down on a blue mat with her dress lifted and her lower body exposed. Other images depicted an adult female’s hand making contact with a child’s private area.
Further investigation revealed Harbin had previously received the images from Cortez in July 2014. In their communications, Cortez claimed to work at a daycare facility where she produced the images. Cortez admitted taking and sending the images of the same female child involved in sexually explicit conduct to Harbin. The child’s genitals appear to be the focus of all three of the aforementioned images, one of which includes the child fondling herself.
In their communications, both Harbin and Cortez indicated a desire to engage with children. During one conversation, Cortez told Harbin “I would love to watch us with her. 2 & half.”
Today, the court also heard from a Homeland Security Investigations (HSI) agent from Alabama. The agent testified Harbin is a convicted sex offender from Alabama who fled to Brownsville following the issuance of a federal arrest warrant for child. In that case, Harbin admitted to trading child pornography two or three times per month with individuals online. The agent also testified that a search of Harbin’s email accounts uncovered multiple conversations with other individuals regarding the sexual abuse of children. Agents seized various electronic devices from Harbin on which forensic analysis revealed more than 2800 images and more than 130 videos of child pornography.
A Brownsville HSI agent also provided testimony today. The agent explained that when Harbin was arrested in Brownsville, a search of his email accounts also uncovered multiple conversations with more individuals regarding the sexual abuse of children. A forensic analysis of Harbin’s electronic devices from his Brownsville arrest revealed more than 3,500 images and more than 360 videos of child pornography.
Both Cortez and Harbin have remained in custody since their arrest and will remain there pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation by HSI, U.S. Secret Service and the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
Leader of Marijuana Trafficking Network Sentenced to Almost 25 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – The leader of a drug trafficking network responsible for transporting more than one ton of marijuana to the Charlotte area and laundering over $1.7 million in drug proceeds was sentenced today by Chief U.S. District Judge Frank D. Whitney, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Ryan Tucker, 31, of Charlotte, was ordered to serve 292 months in federal prison, to be followed by 10 years of supervised release.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in Atlanta and the Carolinas; Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI); and Chief Kerr Putney of the Charlotte Mecklenburg Police Department.
According to filed court documents and court proceedings, from in or about 2008 to in or about 2014, Tucker used individuals operating as “couriers” to transport well in excess of 2,000 pounds of marijuana from California to the Charlotte area. Court records indicate that Tucker’s network of drug couriers included Tucker’s father, Frederick Elwood Tucker, a retired SBI narcotics agent, and an unindicted commercial pilot who used a private jet to transport a shipment. According to court records, in most instances, Tucker’s couriers transported the packaged marijuana in vehicles and commercial freight carriers.
Court documents show that Tucker also utilized his and other individuals’ bank accounts to launder more than $1.7 million of the proceeds of his drug trafficking. In court today, Tucker’s prison sentence was enhanced, based on other relevant factors, including Tucker’s possession of firearms, his leadership role, his extensive criminal history, and an incident in which he shot and killed a person who was attempting to rob his residence of drugs or drug money.
Ryan Tucker’s father, Frederick Elwood Tucker, 69, of Lead, South Dakota, was previously sentenced to 37 month in prison, and three years of supervised release for his role in the drug conspiracy.
The defendant will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation, codenamed “All Tuckered Out,” which is being led by HSI, IRS, and CMPD. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The ongoing investigation and prosecution for the government is being handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Leader of A Colombian Drug Trafficking Organization Sentenced to 25 Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ERICSON VARGAS CARDONA, a/k/a “Sebas,” was sentenced in Manhattan federal court to 25 years in prison for conspiring to traffic in cocaine and using a semiautomatic assault weapon in furtherance of the cocaine trafficking conspiracy. In October 2013, VARGAS CARDONA was extradited to the United States from Colombia, where he was arrested pursuant to a provisional arrest warrant that was issued in response to a request by the U.S. Government in connection with this case. VARGAS CARDONA pled guilty on April 14, 2015, and was sentenced today by Chief U.S. District Judge Loretta A. Preska.
Manhattan U.S. Attorney Preet Bharara said: “Ericson Vargas Cardona led a criminal enterprise that specialized in cocaine and violence – and lots of both. Armed with machine guns, explosives, and a grenade launcher, Vargas Cardona distributed his drugs all over the world, including the United States. Thanks to the incredible dedication of the agents of the Drug Enforcement Administration, Vargas Cardona is no longer a global threat.”
According to the Indictment, documents publicly filed in Colombia in extradition proceedings, publicly filed documents in Manhattan federal court, and statements made at court proceedings in this case, including today’s sentencing:
From 2000 to August 2012, VARGAS CARDONA was a member of La Oficina de Envigado (“La Oficina”), a Colombia-based narcotics trafficking organization that began as a debt-collection agency associated with the United Self-Defenses Forces of Colombia (“AUC”), a right-wing paramilitary organization. La Oficina collected debts on behalf of narcotics traffickers, invested in narcotics shipments, and eventually began producing cocaine independently. La Oficina distributed thousands of kilograms of cocaine from Colombia to locations worldwide, including the United States. In addition, La Oficina engaged in the systematic bribery of Colombian officials.
As a member of La Oficina, VARGAS CARDONA, among other things, worked as a sicario, or assassin, engaged in debt collection activities, and established a cocaine laboratory. In 2009, VARGAS CARDONA assumed control of La Oficina. At the time of VARGAS CARDONA’s arrest by Colombian authorities on August 8, 2012, he was found at a property that was used to store an arsenal of weapons and explosives. Colombian authorities recovered, among other things, 69 bars of C4 explosive, over 190 electrical detonators, more than 2,900 manual detonators, one rocket-propelled grenade launcher, one M-60 machine gun, nine submachine guns, over 50 hand grenades, 28 rifles, nine silencers, and thousands of rounds of ammunition.
* * *
In addition to his prison term, VARGAS CARDONA, 42, was sentenced to five years of supervised release.
Mr. Bharara praised the outstanding efforts of the New York Field Office of the U.S. Drug Enforcement Administration (“DEA”) and the DEA’s Bogotá, Colombia, Country Office.
The case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Edward Y. Kim and Michael Ferrara are in charge of the prosecution.
Kuna Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOISE – Jonathan Dillard, 49, of Kuna, Idaho, pleaded guilty today in United States District Court to possession and access with intent to view child pornography, U.S. Attorney Wendy J. Olson announced. Dillard was indicted by a federal grand jury on July 15, 2015.
According to the plea agreement, Dillard admitted accessing a Yahoo chat group to access and view images of child pornography in November and December of 2013. In January of 2014, investigators with the Idaho Attorney General's Office Internet Crimes Against Children Unit executed a search warrant at Dillard's residence in Kuna, Idaho and seized computers and electronic storage devices. In his plea agreement, Dillard admitted possessing 57 images of child pornography, and 13 videos containing child pornography, on his laptop computer, a flash drive, and two DVDs. Dillard also admitted that he had previously been convicted of Possession of Child Pornography in U.S. District Court in 2003. Sentencing will be scheduled at a later date before U.S. District Judge Stanley A. Bastian, serving by designation from the Eastern District of Washington.
Possession and access with intent to view child pornography is punishable by a mandatory minimum 10 years, and up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life, and a $100 special assessment. As part of his plea, Dillard also agreed to forfeit a laptop computer, a flash drive, and 2 DVDs used in the commission of the charged offense.
The case was investigated by the Idaho Attorney General's Office's Internet Crime Against Children (ICAC) Unit, with assistance from the Ada County Sheriff's Office. The ICAC Unit is a coalition of state and local law enforcement agencies that works with the ICAC Task Force to investigate and prosecute individuals who use the internet to criminally exploit children.
The 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.”
Kittanning Woman Gave False Information to Social Security to Continue Receiving BenefitsRead the Press Release
PITTSBURGH – An Armstrong County resident pleaded guilty in federal court to a charge of making false statements to the Social Security Administration, United States Attorney David J. Hickton announced today.
Sona Marie Murphy, 38, of Kittanning, Pa., pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that on July 30, 2012, in order to ensure continued receipt of disability insurance payments, Murphy submitted a signed statement to the Social Security Administration falsely reporting that she was not working, did not have wages or self-employment income, and had not worked since 2009. The Social Security Administration - Office of Inspector General gathered evidence, however, establishing that Murphy had worked as a waitress at the Burrell Inn, located in Lower Burrell, Pa., as well as owned and was operating a catering business, most recently doing business as Sweet Pea's Catering and Sweets and "Every Day is an Occasion."
Judge Fischer scheduled sentencing for June 16, 2016, at 9:30 a.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court allowed Murphy to remain on bond.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Social Security Administration - Office of Inspector General conducted the investigation that led to the prosecution of Murphy.
Kent County Tax Return Preparer, Andres Orrego-Hernandez, Sentenced for Conspiring to Defraud the Government and Aiding in the Filing of A False Tax ReturnRead the Press Release
GRAND RAPIDS, MICHIGAN – Grand Rapids resident Andres Orrego-Hernandez, age 31, was sentenced to 18 months’ imprisonment by U.S. District Judge Paul L. Maloney for conspiracy to defraud the government and aiding in the filing of a false tax return, U.S. Attorney Patrick A. Miles, Jr. announced today. In addition to the prison term, U.S. District Judge Maloney ordered Orrego-Hernandez to pay $371,648.00 in restitution to the IRS, and to serve two years of court supervision following his release from prison.
Orrego-Hernandez had pled guilty before Magistrate Judge Phillip J. Green in November, 2015. According to the plea agreement filed with the court, Orrego-Hernandez admitted his role in the conspiracy and in aiding and assisting in the preparation of false and fraudulent federal income tax returns. The returns filed inflated income and/or the number of dependents to qualify for the earned income credit and/or inflated or claimed entirely false deductions or credits to qualify for larger refunds. Orrego-Hernandez directed the portion of the client refunds attributable to his criminal activity to bank accounts he controlled. Orrego-Hernandez’s actions defrauded the United States of $371,648.00.
In November 2015, U.S. District Judge Paul L. Maloney sentenced co-defendant Humberto Manrique-Mendoza to 18 months imprisonment, followed by 24 months of supervised release, 200 hours of community service in lieu of a fine. He also ordered Manrique-Mendoza to pay restitution in the amount of $371,648 to the IRS, joint and severally with Orrego-Hernandez.
IRS-CI Special Agent in Charge Jarod J. Koopman stated, "Most professional tax preparers provide a great service to their clients. However, those like Orrego-Hernandez and Manrique-Mendoza should remind us all of the importance of selecting a reputable tax return preparer."
This case was investigated by Special Agents of IRS-Criminal Investigation and Assistant U.S. Attorney B. Rene Shekmer prosecuted the case.
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KC Man Pleads Guilty to Armed Craigslist RobberiesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to his role in a conspiracy to commit a series of armed robberies against victims who were lured through an advertisement posted on Craigslist.
Debvon Buckner, 24, of Kansas City, pleaded guilty before U.S. District Judge Roseann Ketchmark to one count of participating in the robbery conspiracy, five counts of aiding and abetting the robberies and one count of aiding and abetting the discharge of a firearm during a crime of violence.
By pleading guilty today, Buckner admitted that he participated in a conspiracy between May 1 and Sept. 19, 2014, to rob several individuals at gunpoint. Buckner knew that co-conspirators robbed a Hispanic family on June 25, 2014, when the victims responded to a false advertisement for a Samsung television on Craigslist. After that robbery, Buckner agreed to be the primary point of contact with the victims, as conspirators continued using Craigslist to lure victims to be robbed. Buckner made initial contact with the victims, while his co-conspirators robbed them at gunpoint.
Buckner admitted that he participated in five additional armed robberies in which conspirators posted false advertisements to buy or sell items on Craigslist in order to entice their victims to meet so that conspirators could steal money and electronics.
July 16, 2014, Armed Robbery and Shooting
The final robbery occurred on the evening of July 16, 2014, when three victims met Buckner at 5500 E. 84th Terrace, Kansas City, Mo., to look at a Hyundai Sonata that was falsely listed for sale in a Craigslist advertisement. Buckner’s two co-conspirators were hiding, armed with firearms. Buckner accompanied two of the victims as they took a test drive in the vehicle and made a purchase offer. Buckner agreed, but stated he needed to call his wife about the purchase and walked away. As he walked away, the two co-conspirators appeared and each pointed a firearm at the victims and demanded money.
The victims tried to return to their car, but Buckner’s conspirators shot the two adult victims multiple times. Conspirators took money and personal property (including a purse that contained $500) from the victims then shot one of the victims again, striking him an additional time. Conspirators fled from the area in the Hyundai Sonata, which was found shortly afterward behind an abandoned house. One of the victims was transported to a local hospital for life-threatening injuries from multiple gunshot wounds.
July 16, 2014, Armed Robbery #2
Earlier on the same day, on the afternoon of July 16, 2014, another victim had been contacted by Buckner, who said he wanted to purchase an XBOX One that the victim had listed for sale on Craigslist. The victim arranged to meet Buckner at Ridge Pointe Apartments in Kansas City, Mo. When he arrived, Buckner approached him and asked to see the XBOX. When the victim handed him the XBOX, Buckner’s two co-conspirators appeared and each pointed a firearm at the victim and demanded the XBOX One, XBOX games, and the accessories. They took those items then fled to their vehicle.
July 17, 2014, Arrest
The next day, Kansas City police detectives located Buckner in the area of East US 40 Highway and Sterling Avenue, Kansas City, Mo., and set up surveillance. When Buckner boarded a metro bus, police officers took him into custody. He possessed the phone that was used to contact several victims and wore the Samsung Galaxy watch that had been stolen from the victim of an earlier robbery.
In addition to the two robberies on July 16, 2014, Buckner admitted to his role in three earlier armed robberies.
July 3, 2014, Armed Robbery
On July 3, 2014, another victim was robbed while trying to buy an XBOX from a Craigslist advertisement. The victim met Buckner at Ridge Pointe Apartments after he had agreed to give him $160 and a Samsung Galaxy watch to buy the XBOX. One co-conspirator was in hiding and armed with a firearm while another co-conspirator waited in the getaway vehicle. When Buckner refused to make the exchange, the victim began walking back to his car. Buckner’s co-conspirator appeared, pointed a firearm at him and demanded money. The two men took the watch and the cash then fled.
June 30, 2014, Armed Robbery
One victim responded on June 30, 2014, to purchase a cell phone that was advertised on Craigslist. She decided not to purchase the phone and began to walk away, when Buckner’s co-conspirators pointed firearms at her and demanded money. After she gave the men $100 they demanded her car keys, cellphone and purse. She pressed the panic button on her car keys and when the alarm sounded, all three of the men ran.
June 30, 2014, Armed Robbery #2
Another victim met Buckner later that night on the same date. She had been contacted about purchasing an XBOX One that she posted for sale on Craigslist. When she arrived (with three other persons, one of whom was a minor) at Ridge Pointe Apartments, Buckner showed her that he had cash to make the purchase. As soon as she took out the XBOX, he took it and ran. Buckner’s co-conspirators, armed with handguns, approached and pointed the guns at the victims in the vehicle. They demanded all of their money, purses, and XBOX games and controllers. One of the victims asked for her purse back, and one of the conspirators said, “Get back in the car or I’ll shoot you” and racked the slide on his gun.
Under federal statutes, Buckner is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Matthew P. Wolesky and Jess E. Michaelsen. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Judge Sentences Pittsburgh Heroin Dealer to 8 Years in Federal PrisonRead the Press Release
PITTSBURGH - A local resident has been sentenced in federal court to 8 years (96 months) imprisonment, to be followed by five years of supervised release, on his conviction of violations of federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Natel Blessitt, 39, of Pittsburgh, Pa.
According to information presented to the court, on March 5, 2014, and again on Sept. 23, 2014, Blessitt distributed and possessed with intent to distribute heroin.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the FBI Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police for the investigation that led to the prosecution of Blessitt.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Jackson County Resident Sentenced for Methamphetamine OffenseRead the Press Release
On February 23, 2016, Michael F. Halliday, 34, of Elkville, was sentenced on a methamphetamine offense, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Halliday, who had previously pled guilty to one count of conspiracy to distribute and manufacture methamphetamine, was sentenced to 84 months in federal prison, 3 years’ supervised release, and fined $300.00. Evidence at the plea and sentencing hearings established that Halliday was involved with others in manufacture and distribution of methamphetamine. Halliday cooked methamphetamine with others. Halliday obtained pseudoephedrine and collected pseudoephedrine from others for use in the manufacture of methamphetamine. At sentencing, the judge found that Halliday was responsible for the possession of 167.92 grams of pseudoephedrine. The offense occurred between 2013 and June 2015, in Perry, Jackson, and Randolph Counties. One co-defendant has previously been sentenced for his role in the methamphetamine conspiracy. Five co-defendants have pled guilty and are awaiting sentencing. Four co-defendants have pled not guilty and are awaiting an April 18, 2016, jury trial. As to those co-defendants, remember that they are presumed innocent until proven guilty in court.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Percy Police Department, Steeleville Police Department, Mascoutah Police Department, Illinois State Police Methamphetamine Response Team, DuQuoin Police Department, Pinckneyville Police Department, and Drug Enforcement Administration. The Randolph and Perry County State’s Attorney’s Offices also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Indictment Unsealed Charging One More Defendant in Kidnapping, Murder of Junction WomanRead the Press Release
TOPEKA, KAN. – An indictment unsealed in federal court here Thursday charges one more defendant with kidnapping and killing a Junction City woman, U.S. Attorney Barry Grissom said.
Shantrell D. Woody, 26, Fort Riley, Kan., is charged with one count of kidnapping resulting in death.
Three other defendants charged previously with the same count were:
Larry L. Anderson, 26, who is being held in the Geary County Jail.
Marryssa M. Middleton, 23, who is being held in the Geary County Jail.
Drexel A. Woody, 24, who is being held in the Geary County Jail.
The body of Amanda Clemons, 24, of Junction City, was found in February 2014 in Geary County, Kan.
The indictment alleges that on Feb. 7, 2014, the defendants kidnapped the victim and held her on the Fort Riley military installation. While they were holding her they killed her.
If convicted, they face a maximum penalty of life in federal prison without parole. The Junction City Police Department, the Grandview Plaza Police Department, the Geary County Sheriff’s Office, the Riley County Police Department, the Fort Riley Criminal Investigation Division and the FBI investigated. Assistant U.S. Attorney Jared Maag, Assistant U.S. Attorney Tony Mattivi are prosecuting. Grissom also thanked the Geary County Attorney for his assistance.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Unsealed Charging FLDS Church Leaders with Conspiracy to Divert SNAP BenefitsRead the Press Release
SALT LAKE CITY – A two-count indictment unsealed Tuesday afternoon in U.S. District Court in Salt Lake City charges 11 leaders and members of the Fundamentalist Church of Jesus Christ of Latter-day Saints (FLDS Church) with conspiracy to commit Supplemental Nutrition Assistance Program (SNAP) benefits fraud and conspiracy to commit money laundering. The defendants include leaders of the church.
The indictment alleges church leaders diverted SNAP proceeds from authorized beneficiaries to leaders of the FLDS Church for use by ineligible beneficiaries and for unapproved purposes. A large percentage of FLDS Church members living in the Hildale, Utah – Colorado City, Arizona, community known as Short Creek receive SNAP benefits, amounting to millions of dollars in benefits per year.
Charged in the indictment are Lyle Steed Jeffs, age 56, John Clifton Wayman, age 56, Kimball Dee Barlow, age 51, Winford Johnson Barlow, age 50, Rulon Mormon Barlow, age 45, Ruth Peine Barlow, age 41, and Preston Yates Barlow, age 41, all of Hildale; Seth Steed Jeffs, age 42, of Custer, South Dakota; and Nephi Steed Allred, Hyrum Bygnal Dutson, age 55, and Kristal Meldrum Dutson, age 55, all of Colorado City. Lyle Jeffs is the brother of Warren Jeffs. In the physical absence of Warren Jeffs, Lyle Jeffs handles the daily affairs of the organization, including its financial matters. Another of Warren Jeffs’ brothers, Seth Jeffs, leads a congregation of FLDS members in rural Custer County, South Dakota. Arrest warrants were issued for all defendants charged in the indictment.
“This indictment is not about religion. This indictment is about fraud,” U.S. Attorney John W. Huber said today. “This indictment charges a sophisticated group of individuals operating in the Hildale-Colorado City community who conspired to defraud a program intended to help low-income individuals and families purchase food.”
Washington County Sheriff Cory Pulsipher, who helped initiate the investigation and has officers participating on the FBI’s Public Corruption Task Force, emphasized the role his local investigators played in starting the investigation. “What started as a small investigation quickly grew to a point where it was important to work with federal agencies to build a case to present to a grand jury.” Washington County Attorney Brock R. Belnap, whose office also participated in the investigation, will participate in prosecuting the case as a Special Assistant U.S. Attorney.
Arrest warrants were executed Tuesday morning in Salt Lake City, in the FLDS community encompassing Hildale, Utah and Colorado City, Arizona, and in Custer County, South Dakota. The case is being investigated by the FBI, Washington County Sheriff’s Office, IRS Criminal Investigation, the U.S. Department of Agriculture’s Office of Inspector General, and the Washington County Attorney’s Office. The Arizona Department of Economic Security, the Mohave Sheriff’s Office, the FBI’s Minneapolis and Phoenix Field Offices, and the U.S. Attorney’s Office in South Dakota assisted with the case. Custer County, South Dakota Sheriff Rick Wheeler also assisted with the investigation and arrests Tuesday.
“Today’s indictment is the culmination of the tireless efforts of the FBI Public Corruption Task Force, which includes the IRS-Criminal Investigation, the U.S. Department of Agriculture’s Office of Inspector General, the Washington County Sheriff’s Office and the Washington County Attorney’s Office. The violations included in the indictment are especially egregious since they allege that leaders of the conspiracy directed others to commit crimes, for which only certain people benefited. This type of conduct represents nothing less than pure theft. The FBI and its law enforcement partners will actively pursue those entities or persons who unlawfully manipulate and control government programs for their own gain,” Eric Barnhart, Special Agent in Charge of the FBI’s Salt Lake City Field Office said today.
"IRS Criminal Investigation uses its financial expertise to unravel complex financial transactions and money laundering schemes designed to conceal the true source of funds," stated Acting Special Agent in Charge Aimee Schabilion. "We are committed to working with our federal agency partners in combatting frauds against the government."
Washington County Attorney Brock R. Belnap, who will help prosecute the case, expressed appreciation for the efforts of the many agencies involved in the investigation. "I am grateful for the numerous partners who have worked diligently on this case. It is our shared hope that this action will help innocent families receive the food assistance that they genuinely need while holding people accountable who conspire to divert those resources to illegal purposes."
Special Agent in Charge Lori Chan, Office of Inspector General (OIG) of the U.S. Department of Agriculture (USDA), Western Region, stated, “Protecting the integrity of the Supplemental Nutrition Assistance Program (SNAP) is a major investigative priority for the Office of Inspector General. Vendors who engage in SNAP fraud exploit the program’s needy beneficiaries, and misuse the substantial funding that taxpayers provide. OIG is dedicated to ensuring SNAP funds are used for their intended purpose – feeding individuals and families. We look forward to continuing to work with our law enforcement partners to combat SNAP fraud.”
The U.S. Department of Agriculture’s Food and Nutrition Service operates the SNAP program to provide assistance to low-income individuals and families to purchase food products.
The authority to determine eligibility and to certify individual SNAP recipients who qualify for the program is delegated to individual states. Persons in need of benefits apply with the appropriate state agency. Approved applicants receive an Electronic Benefits Transaction Card (EBT card), similar to a bank debit card, that is linked to a SNAP account. EBT cards have a magnetic strip containing recipient information and the benefit amount. When a recipient presents a SNAP EBT card to a retailer to pay for eligible food items, the retailer debits funds from the recipient’s available SNAP benefits. SNAP benefits apply only to the purchase of eligible food items. Recipients cannot exchange their benefits for non-food items, household goods or cash. Only members of the recipient household may use the program benefits.
The indictment alleges that starting in about 2011, FLDS leaders, including Lyle Jeffs, instituted the “United Order” within the ranks of the Church. Participation in the United Order purports to constitute the highest level of worthiness and spiritual preparedness in the church. Devout FLDS members aspire to eligibility in the United Order. Adherents to the United Order must donate all of their material assets to the FLDS Storehouse, a communal clearinghouse charged with collecting and disbursing commodities to the community. United Order policy also dictates that members must obtain their food and household commodities solely through the FLDS Storehouse, according to the indictment.
The indictment alleges that the defendants engage in a variety of overt acts in furtherance of a conspiracy to defraud the SNAP program by diverting SNAP proceeds from authorized beneficiaries to leaders of the FLDS Church for use by ineligible beneficiaries and for unapproved purposes. Church leaders, including Lyle Jeffs, Seth Jeffs, John Wayman and Kimball Barlow, held meetings in which they disseminated storehouse protocols, according to the indictment. These protocols dictated methods for unlawfully diverting SNAP benefits to the FLDS Storehouse as well as instruction on how to avoid suspicion and detection by the government, according to the indictment.
FLDS members transferred their SNAP benefits to FLDS controlled stores without receiving eligible food products at the time of the transactions. For example, on Oct. 16, 2015, an FLDS member conducted a SNAP transaction for $800 without receiving eligible food products at the time of the transaction. On one occasion, John Wayman collected EBT cards from legitimate beneficiaries, provided the cards to another individual, and directed that person to use the SNAP funds to purchase food and goods for non-eligible persons.
SNAP fraud proceeds also financed ineligible purposes. For example, the indictment alleges that in March 2015, using SNAP fraud proceeds, Kimball Barlow signed a check for $16,978 to Orchid’s Paper Products Company for the purchase of paper products. During the period May 31, 2013, through September 22, 2014, the indictment alleges Ruth Barlow signed five checks totaling $13,561 made payable to John Deere Financial. The SNAP fraud proceeds were used for installment payments on a 2013 John Deere load tractor. SNAP fraud proceeds were also used for 16 checks totaling $30,236 payable to Ford Motor Credit for installment payments on a 2012 Ford F-350 purchased by Winford Barlow about Sept. 29, 2012.
The money laundering count of the indictment alleges the defendants conspired to conceal and disguise the nature, location, source, ownership and control of proceeds of a specified unlawful activity while conducting or attempting to conduct financial transactions. The indictment also seeks a money judgment equal to the value of the proceeds traceable to the alleged criminal offenses.
The potential penalty for conspiracy count is five years in prison. The money laundering count carries a potential penalty of 20 years in prison.
An indictment is not a finding of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.
Lyle Steed Jeffs and John Clifton Wayman were arrested Tuesday morning in Salt Lake City. They are scheduled to make an initial appearance on the charges Wednesday at 10 a.m. in Room 7.1 of the federal courthouse in Salt Lake City.
Seth Steed Jeffs was arrested Tuesday morning in Custer County, South Dakota, and will have an initial appearance in federal court in South Dakota.
Defendants arrested Tuesday in the Hildale – Colorado City area will appear Wednesday at 10 a.m. in federal court in St. George. At this time, Ruth Peine Barlow and Kristal Meldrum Dutson have been taken into custody. (Will update through the day.)
Hugo Man, Woman Sentenced for Firearm Possession and Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MICHAEL DANGELO JOHNSON, age 27, and LACEY SHARELL FREEMAN, age 27, both of Hugo, Oklahoma, were sentenced in federal court.
JOHNSON was sentenced to 60 months imprisonment, followed by 5 years of supervised release for POSSESSION OF FIREARM IN FURTHERANCE OF DRUG TRAFFICKING CRIME, in violation of Title 18, United States Code, Section 924(c).
FREEMAN was sentenced to 32 months imprisonment, followed by 5 years of supervised release for POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
The charges are a result of an investigation by the Choctaw County Sheriff’s Department and the Federal Bureau of Investigation. The defendants were indicted in August, 2015 and pled guilty in September, 2015.
The Indictment alleged that beginning on or about June 30, 2015, in the Eastern District of Oklahoma, LACEY SHARELL FREEMAN, did knowingly and intentionally possess with the intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
It was also alleged that on or about June 30, 2015, within the Eastern District of Oklahoma, MICHAEL DANGELO JOHNSON, did knowingly possess a firearm in furtherance of a drug trafficking crime.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendants will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which they will serve their nonparoleable sentences.
Assistant United States Attorney Dean Burris represented the United States.
Former U.S. Navy Contractor Pleads Guilty to False Statement ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Navy Contractor has pleaded guilty to submitting a False Statement to the government in connection with $4.4 million contract to renovate warehouses at the Naval Support Facility in Mechanicsburg, PA .
According to United States Attorney Peter Smith, Andrew Persuad, age 43, of Mt Holly Springs, Pennsylvania, was indicted in October 2015. Persuad pleaded guilty to one count of false statements before Senior U.S. District Court Judge Sylvia Rambo.
The Indictment alleged that Persaud was the President and Corporate Director of Persuad Companies, Inc., a Virginia and Maryland based construction company that entered into a $4.4 million contract in 2011 to renovate warehouses at the Naval Support Activity (NSA) facility in Mechanicsburg.
Persuad hired approximately 17 sub-contractors to work on the project which began in May of 2012. In June and July of 2012 Persuad submitted invoices to the Navy for progress payments. In the documents Persuad attached signed Certifications stating that all of his subcontractors had been paid for their work. Relying on Persuad’s representations, the Navy paid Persaud $1,206,470 between June and August of 2012.
However, by September of 2012 most of the subcontractors had walked off the job site and the Navy terminated Persaud’s contract after it learned, contrary to Persuad’s Certifications, that none of the subcontractors had received any payment for their work on the project.
The Navy had required Persuad to purchase a materials/labor bond prior to his first contract draw, the premium for which cost Persuad $53,539. As a result, the subcontractors filed claims and eventually received payments from the bond carrier for their work totaling $1,281,753.
Under the terms of a plea agreement with the government Persaud has agreed that the loss suffered by the victims in the case is $1,206,470. Persaud has also agreed to make restitution in this amount and has agreed to forfeit the sum of $1,206,470.
The offense is punishable by a maximum of 5 years imprisonment and a $250,000 fine. No date has been set as yet for sentencing.
The case was investigated by the Inspector General’s Offices of the U.S. Navy and Department of Defense, and is being prosecuted by Assistant U.S. Attorney Kim Douglas Daniel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Software Company Employee Sentenced to 30 Months in Prison for Sending Damaging Computer Code to Company ServersRead the Press Release
A Union, New Jersey, man was sentenced today to 30 months in prison following his guilty plea to one count of causing the transmission of computer code and, as a result, damaging computers and causing at least $5,000 in losses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina and Special Agent in Charge John A. Strong of the FBI in North Carolina.
Nikhil Nilesh Shah, 33, was sentenced by U.S. District Judge Louise W. Flanagan of the Eastern District of North Carolina, who also ordered Shah to pay $324,462 in restitution.
According to the plea agreement, from 2007 to 2012, Shah was an information technology manager at Smart Online Inc., a company located in Durham, North Carolina, that developed platforms for the creation of mobile applications. Shah admitted that in March 2012, he left Smart Online to work for another technology company, and on June 28, 2012, he sent malicious computer code to Smart Online’s computer servers in Durham and Raleigh, North Carolina, deleting much of Smart Online’s intellectual property.
The FBI’s Raleigh Office investigated the case. Senior Trial Attorney Richard D. Green of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Hulbig of the Eastern District of North Carolina prosecuted the case.
Former Software Company Employee Sentenced to 30 Months in Prison for Sending Damaging Computer Code to Company ServersRead the Press Release
WASHINGTON – A Union, New Jersey, man was sentenced today to 30 months in prison for one count of causing the transmission of computer code and, as a result, damaging computers and causing at least $5,000 in losses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina and Special Agent in Charge John A. Strong of the FBI in North Carolina.
Nikhil Nilesh Shah, 33, was sentenced by U.S. District Judge Louise W. Flanagan of the Eastern District of North Carolina, who also ordered Shah to pay $324,462 in restitution.
According to the plea agreement, from 2007 to 2012, Shah was an information technology manager at Smart Online Inc., a company located in Durham, North Carolina, that developed platforms for the creation of mobile applications. Shah admitted that in March 2012, he left Smart Online to work for another technology company, and on June 28, 2012, he sent malicious computer code to Smart Online’s computer servers in Durham and Raleigh, North Carolina, deleting much of Smart Online’s intellectual property.
The FBI’s Raleigh Office investigated the case. Senior Trial Attorney Richard D. Green of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Hulbig of the Eastern District of North Carolina are prosecting the case.
Former Residents of Las Vegas, N.M., Indicted on Federal Spice Trafficking and Money Laundering ChargesRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, announced today that two former residents of Las Vegas, N.M., who recently relocated to Kingman, Ariz., have been indicted on drug trafficking and money laundering charges.
Ray L. Smith, 50, and Tamara Phillips, 47, are charged in a four-count indictment filed in the U.S. District Court for the District of New Mexico on Feb. 9, 2016. The couple was arrested in Kingman on Feb. 18, 2016, and made their initial appearances in federal court in Flagstaff, Ariz., on Feb. 19, 2016. During the judicial proceedings in Arizona, the court ordered the U.S. Marshals Service to transfer Smith and Phillips to New Mexico to face the charges against them. Smith and Phillips remain in federal custody pending detention hearings that will be scheduled after they return to New Mexico.
The indictment charges Smith and Phillips with participating in a conspiracy to distribute synthetic cannabinoids, more commonly known as “spice,” maintaining premises for the purpose of distributing spice, and participating in a conspiracy to launder drug proceeds. The indictment alleges that between Feb. 2010 and Feb. 2016, Smith and Phillips participated in a conspiracy to distribute spice from three businesses in New Mexico and Arizona that are owned by Smith and jointly managed by Smith and Phillips
According to the indictment, Smith and Phillips used the three businesses, “Smokin Body Jewelry” stores located in Las Vegas, Raton and Kingman, to sell spice. The indictment alleges that employees at the three stores sold spice to customers while acting at the direction of Smith and Phillips. The indictment includes information about two alleged drug transactions that occurred on Sept. 29, 2015: the first involved the sale of $1,687.46 of spice by an employee at the Raton store, and the second involved the sale of $1,556.91 of spice by an employee at the Las Vegas store.
The indictment includes forfeiture allegations which seek to forfeit property and other assets that constitute the proceeds of the drug trafficking offenses charged in the indictment or were used to facilitate those crimes including eight parcels of real property located in New Mexico and Arizona, funds in 18 bank accounts, a safety deposit box, and three vehicles.
The indictment is the result of a year-long investigation led by the DEA’s offices in Albuquerque, N.M., and Flagstaff, Lake Havasu and Yuma, Ariz., with assistance from the Raton Police Department and the Mohave Area General Narcotics Enforcement Team. During the course of the investigation, approximately one pound of spice was allegedly purchased from businesses operated by Smith and Phillips and approximately 22 kilograms (48 pounds) of spice was seized from a storage facility allegedly rented by Smith and Phillips.
During law enforcement operations executed on Feb. 18, 2016, law enforcement agents and officers seized 18 bank accounts, a safety deposit box and the eight parcels of real property identified in the indictment. They also executed six search warrants, including search warrants for each of the three stores, a second commercial property in Kingman, and two residences in Kingman. The estimated aggregate value of the real property, currency and other assets seized on Feb. 18, 2016, exceeds $2.3 million, including approximately $220,000 in cash. The agents and officers also seized approximately 11 kilograms (24.2 pounds) of precursor chemicals allegedly shipped from China in the primary residence of Smith and Phillips. In addition, approximately 25 kilograms (55 pounds) of suspected spice with a street value of $250,000 was seized from the stores and the residence of Smith and Phillips.
If convicted on the charges in the indictment, Smith and Phillips each face a statutory maximum penalty of 20 years in prison. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the DEA’s offices in Albuquerque, N.M., and Flagstaff, Lake Havasu and Yuma, Ariz., with assistance from the Raton Police Department and the Mohave Area General Narcotics Enforcement Team. Assistant U.S. Attorney Shaheen P. Torgoley is prosecuting the case.
The synthetic cannabinoids charged in the indictment are commonly referred to as synthetic marijuana or “spice.” According to the DEA, over the past several years, there has been a growing use of synthetic cannabinoids. Smoke-able herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular because they are easily available and, in many cases, more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These substances, however, have not been approved by the Food and Drug Administration for human consumption, and there is no oversight of the manufacturing process. Synthetic cannabinoids often are labeled as incense to mask their intended purpose.
Smith Phillips Indictment
Former Port St. Lucie Police Officer Pled Guilty to Child ExploitationRead the Press Release
A former police officer with the Port St. Lucie Police Department pled guilty yesterday to multiple federal child exploitation charges before United States District Court Judge Robin L. Rosenberg in Fort Pierce, Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and John A. Bolduc, Chief, Port St. Lucie Police Department, made the announcement.
Michael Edwin Harding, 28, of Port St. Lucie, pleaded guilty to three counts of distributing material involving sexual exploitation of minors, in violation of Title 18, United States Code, Section 2252(a)(2), possession of material involving sexual exploitation of minors, in violation of Title 18, United States Code, Section 2252(a)(4)(B), attempt to coerce and entice a minor to engage in sexual activity, in violation of Title 18, United States Code, Section 2422(b), and producing child pornography, in violation of Title 18, United States Code, Section 2251(a)(e). Harding is facing a 5 year mandatory minimum term of imprisonment and a maximum of 20 years’ imprisonment, for each count of distribution of child pornography; a maximum of 20 years’ imprisonment for possessing child pornography; a mandatory minimum of 10 years’ imprisonment and a potential life sentence for the attempted enticement of a minor child to engage in sexual activity; and a 15 year mandatory minimum sentence of imprisonment and a maximum term of 30 years’ imprisonment for producing child pornography. In addition, Harding faces a lifetime term of supervised release and will be required to register as a sex offender.
According to filed documents and statements made in court, Harding distributed videos and still images involving the sexual exploitation of minors on three separate dates. Between July 23, 2015, and August 4, 2015, Michael Harding posted multiple images and videos to a chat room on a popular social media application. The still images and videos depicted minor children engaging in sexually explicit acts. The images posted to the chat room were discovered during a forensic examination of a cell phone owned by Harding.
During the execution of a search warrant at Harding’s house, agents with HSI located electronic devices and thumb drives containing hundreds of videos and still images depicting the sexual exploitation of minors. A large number of the images and videos depicted prepubescent minors engaging in sexual acts with adults.
Additionally, Harding attempted to coerce and entice a minor to engage in sexual activity over the internet. Chat messages recovered from Harding’s phone memorialized a conversation between the defendant and another individual, wherein they claimed to have custody of minor children whom they offered to exchange for their own sexual gratification.
Harding also produced child pornography by using his cell phone to create a video depicting his sexual contact with a child under the age of 12. A thumbnail image from the video was located on Harding’s cell phone during a computer forensic examination.
Harding is scheduled to be sentenced on May 16, 2016, by U.S. District Court Judge Robin L. Rosenberg in Fort Pierce, Florida.
This case is part of Operation Predator, an international law enforcement initiative, led by ICE-HSI, to combat the sexual exploitation of children. Through this collaborative effort, law enforcement strives to protect children from sexual predators, including individuals who travel overseas in order to engage in sexual conduct with minors, individuals who possess, trade and produce child pornography, criminal alien sex offenders, and child sex traffickers. Anyone with information about suspected child exploitation is encouraged to call 1‑866‑872-4973. For additional information regarding the initiative and resources, visit www.ice.gov.
Mr. Ferrer commended ICE-HSI for their investigative efforts and the Port St. Lucie Police Department for their assistance with this investigation. The case is being prosecuted by Assistant United States Attorneys Daniel E. Funk and Russell R. Killinger.
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.
Former Firefighter Sentenced to Five Years in Prison for Wildland Arson Fire on Federal LandRead the Press Release
SACRAMENTO, Calif. — Benjamin Cunha, 33, of Placerville, was sentenced today to five years in prison for arson, United States Attorney Benjamin B. Wagner announced. In addition, United States District Judge John A. Mendez ordered Cunha to pay $246,862 in restitution to Cal Fire.
According to court documents, Cunha, a seasonal CAL FIRE firefighter from 2001 to 2003, admitted to setting at least 30 wildland fires during the summers of 2006 and 2007. Two of these fires burned onto federal land. Cunha indicated that his motivation for setting the fires was to overcome boredom, to earn overtime pay for fighting the fires, and to impress his peers.
“As he admitted in his plea agreement, this defendant set a multitude of fires with a callous disregard for the danger to life and property that he was inflicting,” said U.S. Attorney Wagner. “Today’s sentence is a just result that takes a serial arsonist off the streets.”
“Benjamin Cunha set over 30 fires in El Dorado and Amador Counties. ATF worked with our local partners and utilized several resources to perfect an investigation for federal prosecution,” said Special Agent in Charge Jill A. Snyder. “Cunha had no consideration for CAL FIRE fighters’ safety when he set the fires, placing them in grave danger during the fire suppression efforts.”
On October 6, 2015, Cunha pleaded guilty to one count of arson for the July 6, 2007, Mine Fire, a vegetation fire that burned approximately 80 acres including federally owned land. Cunha admitted to using a distinctive time-delay incendiary device, which he had also used to start many of his other fires.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from CAL FIRE. Assistant United States Attorneys William S. Wong and Audrey B. Hemesath prosecuted the case.
Former Employee of Sporting Goods Distributor Convicted of Embezzling over $300,000 from Orange County CompanyRead the Press Release
SANTA ANA, California – A former office manager for an independent sporting goods distributor was found guilty this afternoon of three counts of wire fraud for using company checks and credit cards to embezzle more than $300,000 from her Los Alamitos-based employer.
Juliana James England, 60, of Cedar Rapids, Iowa, was found guilty of the three felony counts for embezzling money from her former employer, Callan Western Sales Company (CWS).
The evidence at trial showed that England charged company credit cards and wrote company checks to herself to obtain the company’s funds. As part of her scheme, she altered company records and created false bank stubs to give to the company’s accountant.
England was hired by CWS in 2000 to be a part-time secretary and office manager in charge of office administration, which including preparing checks for the signature of Michael Callan, the founder of the company. England was also in charge of maintaining the company’s check ledger, coding the payments, and providing monthly bank statements to the company’s accountant.
From March 2003 to July 2007, England wrote at least 55 checks payable to either herself or her creditors totaling more than $33,000. To cover her tracks, England wrote false notations on the check stubs to indicate payment to a legitimate company vendor. After using these checks for her personal use, she altered the company’s bank statements and provided these altered statements to the CPA.
England also used company credit cards for unauthorized expenses which totaled nearly $280,000. She used CWS Visa and American Express credit cards for personal expenses and made unauthorized online payments from the CWS bank account to these credits cards in an attempt to conceal the unauthorized purchases.
“Workers who steal from their employers can face consequences far beyond mere termination,” said United States Attorney Eileen M. Decker. “Embezzlement is a serious criminal offense. The defendant’s conduct in this case was egregious in that she sought to conceal her crimes by altering business documents and bank records. In the end, those efforts became compelling evidence of the embezzlement.”
England was ordered to surrender herself to the United States Marshals Service on March 1. England is scheduled to be sentenced by United States District Judge James V. Selna on June 20, at which time she will face a statutory maximum penalty of 60 years in federal prison.
England is also facing charges in the Eastern District of Arkansas for making false statements to the Social Security Administration to obtain disability benefits.
This case was the product of an investigation by Federal Bureau of Investigation and the Los Alamitos Police Department.
Former Chairman of International Credit Union Sentenced to 12 Years in Prison for Wire FraudRead the Press Release
GAINESVILLE, FLORIDA – Samuel J. Cusumano, 66, of Orlando, Florida, was sentenced late yesterday to 12 years in prison and ordered to pay $7.8 million in restitution for wire fraud in connection with his fraudulent solicitation from investors of the Swedish-registered Storehouse Credit Union. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
During his guilty plea on June 24, 2015, Cusumano admitted that, between 2007 and 2009, as the chairman of the board of Storehouse, he promoted the international credit union as a high yield investment opportunity through intentionally misleading presentations and materials. Cusumano fraudulently induced investors to transfer monies to investment accounts under Cusumano’s control by misrepresenting the rates of return being generated by the business. He falsely claimed that Storehouse used professional currency traders when, in fact, Cusumano personally executed all trades from his home, investing primarily in the Foreign Currency Exchange Market. Although the business was actually losing money, Cusumano created fraudulent financial statements to convince investors that Storehouse was reaching or exceeding the high rates of return that Cusumano had promised them. When investors discovered that they were unable to withdraw their funds due to trading losses, a financial review was conducted. The review revealed that investor funds had been depleted, that earnings had been overstated, and that Cusumano had used a large portion of the investors’ funds to pay personal expenses. The 347 victims of the scheme resided in the United States, including in the Northern District of Florida, as well as Canada, Great Britain, and Australia.
The case resulted from an investigation by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the Florida Office of Financial Regulation. It was prosecuted by Assistant United States Attorney Gregory P. McMahon.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Former California Attorney Sentenced to 60 Months for His Role in International Investment Fraud SchemeRead the Press Release
A Las Vegas man was sentenced today to 60 months in prison for his role in an investment fraud scheme that promoted fraudulent investment opportunities and caused more than $5 million in losses to investors.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Laura A. Bucheit of the FBI’s Las Vegas Field Office made the announcement.
Joseph Micelli, 62, was sentenced by U.S. District Judge Kent J. Dawson of the District of Nevada, who also ordered Micelli to pay $5.65 million in restitution and to forfeit $505,220 in fraudulent proceeds.
As part of his plea, Micelli admitted that he conspired with others in the United States and Switzerland to promote investments and loan instruments that he knew to be fraudulent. The conspirators told victims that, for an up-front payment, a Swiss company known as the Malom Group A.G. would provide access to lucrative investment opportunities and substantial cash loans. In connection with his plea, Micelli admitted that he held himself out to investors as an attorney, when in fact he had lost his license to practice law. In addition, as part of an effort to defraud an investor who held an equity stake in a corporation that had filed for bankruptcy, Micelli submitted a sworn affidavit to the U.S. Bankruptcy Court for the District of New Hampshire, in which he made false statements about the Malom Group’s ability to provide financing to the debtors.
Five other defendants have been charged in the case, two of whom were convicted at trial in December, two of whom are at large in Switzerland and one of whom is awaiting extradition from Canada.
The FBI’s Las Vegas Field Office investigated this case. Assistant Chief Brian R. Young and Trial Attorneys Melissa Aoyagi and Anna G. Kaminska of the Criminal Division’s Fraud Section are prosecuting this case with assistance from the Criminal Division’s Office of International Affairs and the U.S. Attorney’s Office for the District of Nevada. The U.S. Securities and Exchange Commission’s Enforcement Division, which referred the matter to the department and is conducting a parallel civil enforcement investigation, also provided valuable assistance.
Today’s conviction is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Former Aide at a Prince George’s County Elementary School Facing Federal and State Charges Related to Sexual Abuse of Multiple ChildrenRead the Press Release
Greenbelt, Maryland – Deonte Carraway, age 22, of Glenarden, Maryland, was charged by federal criminal complaint today with eight counts of producing child pornography, involving six minor victims ranging in age from nine to 11 years old. An indictment was also returned today in Prince George’s County Circuit Court charging Carraway with child sexual abuse; second degree sex offense; attempted second degree sex offense; third degree sex offense; fourth degree sex offense; and second degree assault. Carraway was a “Dedicated Assistant” for Judge Sylvania Woods Elementary School in Prince George’s County.
The investigation is ongoing and investigators are asking anyone with information about possible victims or details about Mr. Carraway to call 1-800-CALL-FBI (1-800-225-5324).
The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Prince George’s County State’s Attorney Angela D. Alsobrooks; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Hank Stawinski of the Prince George’s County Police Department.
“Many criminals take advantage of anonymous internet messaging services to transmit child pornography,” said U.S. Attorney Rod J. Rosenstein. “One alert relative checked a child’s smartphone, found a naked photo and called the police. That call may have prevented more children from being abused.”
“Today’s indictment is for one victim, but we will continue to work with our law enforcement partners to ensure that Mr. Carraway is held accountable for his actions, said Prince George’s County State’s Attorney Angela D. Alsobrooks. “It is my hope that we will be able to do this with as minimal impact as possible to the children so that we can help them and their families begin the healing process from these unspeakable incidents.”
“We are asking the public to continue coming forward in this case because there could be additional victims out there. We need people to call 1800-CALL-FBI. No matter how insignificant you think your information may be, please call,” said Kevin Perkins, Special Agent in Charge, FBI- Maryland. “Parents and primary caregivers are the first and most important line of defense against such terrible crimes. You know your child better than anyone else. Continue to be part of their lives and know who else is.”
“The manpower devoted to this case is on par with some of the most complex cases this police department has ever worked. Investigators have already spent more than 3,000 hours talking with victims, witnesses and family members and examining evidence. The ultimate goal is to ensure justice is served for each and every affected child and his or her loved ones,” said Chief Hank Stawinski of the Prince George’s County Police Department.
The affidavit filed in support of the federal criminal complaint alleges that from October 11, 2015 through January 8, 2016, on at least eight separate occasions Carraway coerced and persuaded multiple children to engage in sexually explicit conduct in order to produce videos of that conduct. Carraway met several of the victims at the school where he worked and other victims reported that Carraway recruited them from his choir group.
According to the affidavit, Prince George’s County Police arrested Carraway on February 4, 2016, after the family member of one of Carraway’s victims found a sexually explicit photo the victim had sent to Carraway using the Kik messenger application on his phone. Kik lets users send text, pictures, and videos within the Kik app. Kik users are identified by usernames rather than phone numbers. According to the affidavit, Carraway also used Kik to communicate with other victims. On February 11, 2016, a federal search warrant was signed authorizing a search of Carraway’s cellular phones and other digital items. A subsequent forensic analysis of one of Carraway’s cellular phones revealed approximately 38 videos depicting children engaged in sexually explicit conduct, including the videos that are the basis of these federal charges. The videos were taken using Carraway’s cell phone and were recorded at the homes of some of the victims and in the basement of a residence. The videos include Carraway engaging in sexual activity with victims, as well as directing the victims to engage in sexually explicit conduct.
According to the affidavit, law enforcement interviewed the victims who reported that Carraway engaged in, and directed other instances of sexually explicit conduct involving the victims, some of which Carraway allegedly videotaped, including at the school where he worked.
Carraway faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison followed by up to lifetime of supervised release for each of the eight counts of production of child pornography. No court appearance has been scheduled in U.S. District Court in Greenbelt. Carraway remains detained on the related state charges.
An indictment or criminal complaint is not a finding of guilt. An individual charged by indictment or criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
The case is being investigated by the FBI Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat sex crimes involving children, made up of members from ten state and federal law enforcement agencies.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein and Prince George’s County State’s Attorney Angela D. Alsobrooks commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Daniel C. Gardner and Kristi N. O’Malley, who are prosecuting the federal case.