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Tuesday 23 February 2016
Final Defendant Sentenced for Theft and Trafficking of 30 FirearmsRead the Press Release
RICHMOND, Va. – Jonathan Xavier Thorne, 21, of Richmond, was sentenced today to 84 months in prison for his role in the theft of firearms from a federally licensed firearms dealer. Thorne was also sentenced to three years of supervised release and ordered to pay $2500 in restitution.
Thorne pleaded guilty on Sept. 9, 2015. According to court documents, on May 22, 2015, Thorne, along with his brother, Jerell Markes Broadie, 23, and co-conspirators Meleke Daquan Osborne, 22, and William Grieger, 23, made plans to break into the American Family Pawn shop located in Powhatan. During the early morning hours of May 25, 2015, Thorne, Broadie and Osborne traveled to the American Family Pawn Shop and broke in to the store through a back window and smashed several glass cases, stealing 31 firearms, 11 of which were high capacity and capable of holding more than 15 rounds of ammunition. While leaving the store one of the men dropped a firearm in the parking lot before making their getaway.
Of the 30 firearms the men stole, Thorne and Broadie each kept one, sold 11 to Grieger, and sold the remaining 17 to an alleged family member located in the Tidewater area. Grieger kept one of his 11 firearms, and sold the remaining 10 to an alleged gang member from New York. All of the firearms sold within a matter of hours after the robbery.
Grieger was sentenced on Nov. 3, 2015, to 78 months in prison. Osborne was sentenced on Dec. 1, 2015, to 70 months in prison. Broadie was sentenced on Jan. 12, 2016, to 84 months in prison.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge James R. Spencer. Assistant U.S. Attorney Angela Mastandrea-Miller prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-115 and 3:15cr116.
Elkton Man Sentenced on Methamphetamine ChargesRead the Press Release
HARRISONBURG, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentencing of an Elkton man who was previously convicted of distributing methamphetamine.
Mark Anthony Rome Elliott, 38, of Elkton, Va., pled guilty in August 2015 to one count of possessing with the intent to distribute 500 grams or more of a substance containing methamphetamine. Today in the United States District Court for the Western District of Virginia in Harrisonburg, Elliott was sentenced to 168 months of federal incarceration, a sentence agreed to as part of his plea agreement.
“Methamphetamine continues to be a problem throughout the Western District of Virginia. The United States Attorney’s Office, along with our partners in law enforcement, will continue to 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 Federal Bureau of Investigation, the RUSH Task Force and the Northwest Virginia Regional Drug Task Force. Assistant United States Attorney Grayson Hoffman prosecuted the case for the United States.
Easthampton Man Pleads Guilty to Federal Cocaine and Marijuana ChargesRead the Press Release
BOSTON – An Easthampton man pleaded guilty today in U.S. District Court in Worcester in connection with distributing cocaine and marijuana.
David Dulchinos, 50, pleaded guilty to one count each of distribution of cocaine and distribution of marijuana. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for May 24, 2016.
On Feb. 7, 2014, Dulchinos distributed controlled substances to an individual cooperating with federal agents. The transaction was captured on video and audio recordings. Dulchinos pleaded guilty to distributing nearly 400 grams of cocaine and 27 grams of marijuana in connection with that transaction.
The charge of distribution of cocaine provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. The charge of distribution of marijuana provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Easthampton Police Chief Bruce McMahon, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Eagle Butte Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, Opposing and Impeding a Federal Officer.
Norman Blue Coat, age 32, 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 November 11, 2015, at Eagle Butte, Blue Coat, Jr., forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with an officer from the Cheyenne River Sioux Tribe, resulting in the infliction of bodily injury to the officer. The alleged incident happened while the officer was employed with the Cheyenne River Sioux Tribe, assigned to perform law enforcement functions, and was engaged in his official duties.
The charge is merely an accusation and Blue Coat, Jr., is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Blue Coat, Jr., was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Dupree Man Charged with Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that a Dupree, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Orville Belt, Jr., age 41, 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 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 January 1, 2016, at Dupree, Belt unlawfully assaulted the victim with shod feet, resulting in serious bodily injury to the victim.
The charges are merely an accusation and Belt is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Belt was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Defendants Convicted of Distributing Thousands of Pounds of Marijuana Ordered to Forfeit California Grow Farm and FirearmsRead the Press Release
United States Attorney Andrew M. Luger today announced that ALEXANDER EDWARD HEYING, 33, who was sentenced last month to serve 140 months in prison after being convicted in after trial November 2014 of conspiracy to distribute several tons of marijuana and conspiracy to commit money laundering, was ordered on February 23, 2016, to forfeit his Ukiah, Calif., farm on which he grew marijuana, a residence in Minnetonka, Minn., a truck and two guns. Also convicted in this conspiracy were PETER GREGORY HEYING, 29, and ACACIA LAUREN RUIZ, 35. PETER HEYING and RUIZ pleaded guilty in October 2014 to the charges against them and were sentenced on January 22, 2016.
As proven at trial and according to the defendants’ guilty pleas, between at least 2003 and October 2012, the HEYING brothers and RUIZ conspired to distribute marijuana in Minnesota. During the course of the conspiracy, the co-conspirators were responsible for trafficking several tons of marijuana into Minnesota, primarily from large-scale grow farms in California.
As a result of the conspiracy and money laundering convictions, the United States moved to forfeit property because the property facilitated the conspiracy, including the grow farm from which marijuana was harvested and sold.
These cases resulted from an investigation conducted by the Drug Enforcement Administration, Criminal Investigation Division of the IRS, Hennepin County Sheriff’s Office, West Metro Drug Task Force, Southwest Hennepin Drug Task Force, West Hennepin Public Safety, Wisconsin Department of Justice, Division of Criminal Investigation, Medina Police Department and the Orono Police Department.
This case was prosecuted by Assistant U.S. Attorneys LeeAnn Bell, Surya Saxena and Craig Baune.
Defendant Information:
ALEXANDER EDWARD HEYING, 33
Minnetonka, Minn.Convicted:
- Conspiracy to distribute marijuana, 1 count
- Conspiracy to commit money laundering, 1 count
Sentenced:
- 140 months in prison
PETER GREGORY HEYING, 29
Minnetonka, Minn.Convicted:
- Conspiracy to distribute marijuana, 1 count
- Conspiracy to commit money laundering, 1 count
Sentenced:
- Three years in prison
ACACIA LAUREN RUIZ, 35
Ukiah, Calif.Convicted:
- Conspiracy to distribute marijuana, 1 count
- Conspiracy to commit money laundering, 1 count
Sentenced:
- Time served
Contractor Sentenced to 19 Months in Prison for Attempting to Bribe West New York, New Jersey, Official to Eliminate More Than $8.7 Million in Fire Code ViolationsRead the Press Release
NEWARK, N.J. – A West New York, New Jersey, man was sentenced today to 19 months in prison for paying cash bribes to a West New York fire official to eliminate millions of dollars in outstanding fines and penalties on buildings with fire code violations, U.S. Attorney Paul J. Fishman announced.
Victor Coca, 50, previously pleaded guilty before U.S. District Judge Esther Salas to Count One and Count Two of an indictment charging him with paying bribes to a local government employee. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Coca was the owner and president of a general contracting company in West New York. Two buildings in West New York had outstanding fines for fire code violations. The first building, located on Bergenline Avenue and owned by a friend of his, had approximately $14,500 in fines and penalties for outstanding fire code violations. Coca agreed to pay a fire official for the West New York Bureau of Fire Prevention, a witness who was voluntarily cooperating with federal authorities, a $2,000 cash bribe to eliminate the outstanding fire code fines and penalties. On March 27, 2014, Coca handed the fire official a $2,000 cash bribe.
The second building, located on Hudson Avenue and partly-owned by Coca, had more than $8.7 million in fines and penalties for outstanding fire code violations. Coca paid a $5,000 cash bribe to the fire official in return for the fire official purportedly reducing the amount due to the West New York Bureau of Fire Prevention to the initial fine amount of $5,000.
In addition to the prison term, Judge Salas sentenced Coca to two years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Andrew Campi in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Conn. Resident Admits to Travelling to RI to Engage in Illicit Sexual ConductRead the Press Release
PROVIDENCE, R.I. – Joshua T. Robinson, 36, of Colchester, Conn., pleaded guilty in U.S. District Court in Providence, RI, to interstate travel to engage in illicit sexual conduct, admitting to the court that he traveled from his home to Cranston, RI, expecting to meet with and engage in sexual relations with a 14-year old girl.
Robinson’s guilty plea on February 18, 2016, is announced by United States Attorney Peter F. Neronha and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
According to court documents and information presented to the court, beginning in late August 2015, Robinson engaged in a series of emails with a person he believed to be a 14-year old girl in Rhode Island. Over the next several days, with each additional email, Robinson’s comments to the teenager became increasingly sexually explicit. He requested and arranged to meet with the teenager to engage in sexual activity.
However, the person purporting in the emails to be the 14-year old girl was, in fact, members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force. On September 4, 2015, Robinson was arrested in Cranston, RI, by members of the ICAC Task Force when he arrived at a location where he believed he was going to meet with the teenager.
Robinson is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on May 12, 2016. Travel with intent to engage in illicit sexual conduct is punishable by statutory penalties of up to 30 years in federal prison and lifetime supervised release.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by federal, state and local law enforcement agents and officers assigned to the Rhode Island State Police ICAC Task Force.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Carl Junction Woman Pleads Guilty to Child Porn after Posting Images on Victim's FacebookRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Carl Junction, Mo., woman pleaded guilty in federal court today to possessing child pornography after she posted nude photos of a 15-year-old victim on the victim’s Facebook page.
Michelle Renee McCoy, 49, of Carl Junction, pleaded guilty before U.S. Magistrate Judge David P. Rush to possessing child pornography.
According to today’s plea agreement, McCoy took an iPhone 5C from the 15-year-old victim after an argument on March 28, 2014. The victim was contacted by her cousin on May 14, 2014, to let her know that there were nude pictures of her on her Facebook page. Multiple friends and family members called the victim regarding the nude photos they saw on her Facebook page. The images, which portrayed the victim in a variety of sexually explicit poses, had been taken when she was 14 or 15 and saved on her iPhone.
The victim was unable to log into her account as the password had been changed. The victim was able to shut down the account after resetting her password.
Carl Junction police officers contacted McCoy, who admitted she had the victim’s iPhone but refused to give the phone to law enforcement. Officers later received a search warrant for McCoy’s residence and seized an Apple MacBook Pro laptop, an Apple iPad and three Apple iPhones, including the victim’s phone.
Investigators learned that, two weeks before taking away the victim’s iPhone, McCoy had asked to see her phone so she could run an update on it. McCoy discovered the nude photos of the victim on the victim’s phone and sent them to her own iPhone 5S, where she saved them to her camera roll. Investigators found the child pornography images on McCoy’s iPhone and on McCoy’s MacBook Pro laptop. They also discovered that the victim’s phone had been backed up to McCoy’s laptop less than 15 minutes after police officers had been at McCoy’s residence and asked her for the phone.
McCoy’s daughter told law enforcement officers that McCoy had shown her the nude pictures of the victim that were on her cell phone. She said McCoy was showing the pictures at a family gathering. McCoy also told her daughter that she had the pictures on her laptop. After the photos were posted on Facebook, McCoy told her daughter that she had posted the pictures and changed the victim’s Facebook password so she would not be able to take them down.
Under federal statutes, McCoy is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
McCoy must forfeit to the government the Apple iPhone and Apple MacBook Pro laptop that were used to commit the offense.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Republic, Mo., Police Department, the Carl Junction, Mo., Police Department, and the Southwest Missouri Cybercrime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Canfield physician charged for withholding taxes from employees but not paying the money over to governmentRead the Press Release
A physician from Canfield was charged with failing to pay over Social Security, Medicare and employment taxes collected from his employees, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Guy Ficco, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office.
Nicholas M. Garritano, 54, is charged with a willful failure to pay over taxes.
"This defendant took out the taxes from his employees but kept the money for himself," Rendon said. "He victimized his workers and those who paid their fair share of taxes."
"Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS," Ficco said. "The failure to pay over withheld taxes is a serious offense and IRS Criminal Investigation vigorously pursues anyone who collects taxes and fails to timely remit those taxes."
The indictment alleges that during 11 quarters spanning from 2009 through 2012, Garritano was president and sole shareholder of a corporation run by the name “Dr. N.M. Garritano, Inc.,” located in Canfield. Garritano was responsible for the corporation’s business and financial operations. Garritano caused the corporation to pay taxable wages and salaries to its employees, from which federal income and FICA taxes were withheld, according to the indictment.
Garritano filed quarterly forms with the Internal Revenue Service on behalf of the corporation relating to the employment taxes. Although the corporation withheld substantial employment taxes from the wages of its employees for each quarter, the defendant failed to pay over the full amount of the withheld taxes to the IRS, according to the indictment.
The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall following an investigation by IRS-CI.
If convicted, the defendant's sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
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.
Butler County Man Sentenced to 7 Years in Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH - A former resident of Butler County, Pennsylvania, has been sentenced in federal court to 84 months imprisonment, to be followed by ten years of supervised release, on his conviction of possession of child pornography, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence yesterday on Edward Wesley Bayne, III, 47, formerly of Seven Fields, Pa.
According to information presented to the court Bayne, III, the former Mayor of Seven Fields, Pennsylvania, on Jan. 17, 2013, unlawfully possessed in computer graphics files thousands of photographs and videos depicting minors engaged in sexually explicit conduct that he had obtained via Internet file-sharing networks.
Prior to imposing the sentence, Judge Cohill stated that he factored in the serious nature of Bayne's offense, his lack of criminal history and his personal characteristics, and harm perpetrated against the hundreds of child victims depicted in the videos and photographs. In addition to the terms of imprisonment and supervised release, the court ordered Bayne to pay $12,000 in restitution, to be divided among four child victims who had formally requested restitution in the case.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Bayne, III.
Buffalo Man Sentenced for Bank RobberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Isaiah Brown, 28, of Buffalo, NY, who was convicted of bank robbery, was sentenced to 57 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that on July 9, 2015, Brown entered the First Niagara Bank at 2853 Delaware Avenue in Kenmore, NY wearing a brown wig. The defendant passed a note to the teller demanding money and threatening that he had a gun. Brown made off with a specific amount of money.
The defendant also admitted that on July 3, 2015, he robbed the First Niagara Bank at 1726 Hertel Avenue in Buffalo using the same method.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. CohenBritish Man Named in Federal Grand Jury Indictment that Charges Him with Coming to U.S. to Have Sex with Pre-Teen BoysRead the Press Release
LOS ANGELES – A federal grand jury today indicted a British man on federal charges alleging that he travelled to the Coachella Valley in late January in order to engage in illicit sexual conduct with boys who were 10 and 12 years old.
Paul Charles Wilkins, 70, of Littleport in East Cambridgeshire, England, who had dual United States-United Kingdom citizenship, was charged today with one count of traveling with the intent to engage in illicit sexual conduct and one count of attempted sex trafficking of children.
While the first count of the indictment relates to Wilkins travel to the United States to allegedly have sex with two pre-teen boys, the attempted sex trafficking charge stems from a deal he allegedly brokered with an undercover investigator in which Wilkins allegedly paid $250 to have sex with a 9-year-old boy at an apartment he had rented in Palm Springs.
“My office is committed to protecting children from predators – whether the predators are foreign or domestic,” said United States Attorney Eileen M. Decker. “When this defendant’s original plan was thwarted, he made other arrangements to sexually abuse a child. He must be held accountable for these crimes.”
Wilkins was arrested on February 11 at his rented apartment after paying the money to an undercover operative. He was charged in a criminal complaint that remains under seal and was ordered held without bond. Wilkins is scheduled to be arraigned in United States District Court on March 4.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The charge of traveling with the intent to engage in illicit sexual conduct carries a statutory maximum sentence of 30 years.
The charge of attempted sex trafficking of children carries a mandatory minimum sentence of 15 years in federal prison and statutory maximum penalty of life without parole.
The investigation into Wilkins was conducted by special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI)
“This case serves as a strong reminder that the abuse of children in the U.S. by citizens of any country is an unconscionable crime that will not be tolerated,” said Joseph Macias, special agent in charge for HSI Los Angeles. “Pedophiles who mistakenly believe they can escape detection by traveling to countries other than their own to commit child sex crimes should be on notice that HSI will use all the resources at its disposal to combat this reprehensible behavior and seek justice for the victims.”
Bridgeport Man Sentenced to 21 Months in Federal Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LORENZO CARTER, 21, of Bridgeport, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 21 months of imprisonment, followed by three years of supervised release, for unlawful possession of a firearm by a convicted felon.
According to court documents and statements made in court, on April 8, 2015, law enforcement officers located a .22 caliber handgun that CARTER had placed on the tire of a vehicle parked on Trumbull Avenue in Bridgeport. Prior to that date, CARTER had been convicted of carrying a pistol without a permit and illegally receiving a pistol, both felony offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
CARTER has been detained since his arrest on April 8, 2015. He pleaded guilty on October 14, 2015.
This matter was investigated by the FBI Safe Streets Task Force and the Bridgeport Police Department. This case is being prosecuted by Assistant U.S. Attorney Jennifer Laraia.
Ashland Man Pleads Guilty to Employment Tax FraudRead the Press Release
RICHMOND, Va. – Michael Manning, 52, of Ashland, who operated two masonry contractor construction companies, pleaded guilty today to charges of failing to collect, account for and pay over employment taxes to the Internal Revenue Service (IRS).
According to court documents, Manning was the president of Manning Construction and Manning-Carhen Construction. Manning controlled the businesses’ finances and was responsible for filing the Employer’s Quarterly Federal Tax Returns, Forms 941 and paying over to the IRS the federal income, social security and Medicare taxes withheld from the wages of the businesses’ employees. For the third and fourth quarters of 2014, Manning willfully failed to comply with these legal obligations by failing to pay over more than $800,000 in withheld taxes to the IRS. Additionally, as part of his plea, Manning admitted that Manning Construction regularly and deliberately created false financial statements for submission to financial institutions in order to comply with that business’s existing loan covenants, to encourage banks to lend new funds to the company, or to enable the renewal of existing loans.
Manning faces a maximum penalty of five years in prison when sentenced on May 31, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Caroline D. Ciraolo, Acting Assistant Attorney General of the Justice Department’s Tax Division, made the announcement after the plea was accepted by U.S. District Judge M. Hannah Lauck.
The case was investigated by IRS-Criminal Investigation, and is being prosecuted by Assistant U.S. Attorneys Thomas Garnett and Jasmine Yoon, along with Trial Attorney Melanie Smith of the Tax Division.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-17.
Artesia Man Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Eduardo Duran, Jr., 34, of Artesia, N.M., was sentenced today in federal court in Las Cruces, N.M., to 84 months in prison followed by five years of supervised release for his methamphetamine trafficking conviction.
Duran was arrested on May 6, 2015, on a criminal complaint alleging that he possessed methamphetamine with intent to distribute in Eddy County, N.M., on Feb. 9, 2015. According to the complaint, Pecos Valley Drug Task Force agents executed a search warrant at a residence in Carlsbad where they seized a large sum of cash, several packages of Suboxone, a small amount of marijuana, drug paraphernalia and approximately 780 grams of methamphetamine.
On Oct. 7, 2015, Duran pled guilty to a felony information charging him with conspiracy to possess methamphetamine with intent to distribute. In entering the guilty plea, Duran admitted that on Feb. 9, 2015, he possessed approximately 780 grams of methamphetamine which was seized by officers who executed a search warrant at his residence.
This case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force. Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Arrests Made, Indictment Unsealed in Federal Case Charging FLDS Church Leaders and Others with Conspiracy to Divert SNAP Benefits, Money LaunderingRead 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.)
Ambulance Company Employee Sentenced to 37 Months in PrisonRead the Press Release
PHILADELPHIA – Thael Kuran, 24, of Philadelphia, PA, was sentenced today to 37 months in prison for a health care fraud scheme involving Brotherly Love Ambulance, Inc. In addition to the prison term, U.S. District Court Judge Gerald J. Pappert ordered three years of supervised release, restitution in the amount of $2,015,712.52, and a $200 special assessment.
Through Brotherly Love, Kuran transported patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements. Kuran and other conspirators falsified reports to make it appear that the patients needed to be transported by ambulance when he knew that the patients could be safely transported by other means and, in fact, many of them could walk. In addition, Kuran and other conspirators paid kickbacks to patients to ensure that they would use Brotherly Love Ambulance for services which were not medically necessary. The company also billed Medicare for ambulance services for patients who were not transported by ambulance, but whom Kuran and others transported in personal vehicles. Kuran and others completed documentation of these transports that made it appear that the patients had been transported in an ambulance and that misrepresented the medical care provided to and safety precautions taken for these patients. As a result of the fraudulent scheme at Brotherly Love, the Medicare program paid more than $2 million for fraudulent claims from Brotherly Love.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the Federal Bureau of Investigation, and the U.S. Department of Labor Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Mary E. Crawley and Paul W. Kaufman.
Alfredo Beltran Leyva Pleads Guilty to International Drug Trafficking Conspiracy ChargesRead the Press Release
Attorney General Loretta E. Lynch announced today that Alfredo Beltran Leyva, also known as Mochomo, one of the leaders of the Beltran Leyva Organization, a Mexican drug-trafficking cartel responsible for importing multi-ton quantities of cocaine and methamphetamine into the United States, pleaded guilty to participating in an international narcotics trafficking conspiracy.
Assistant Director Joseph S. Campbell of the FBI’s Criminal Investigative Division, Acting Administrator Chuck Rosenberg of the Drug Enforcement Administration (DEA) and Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) joined the Attorney General in making the announcement.
“For decades, Alfredo Beltran Leyva helped to lead one of the world’s most notorious drug cartels, causing widespread violence and disrupting lives,” said Attorney General Lynch. “With this guilty plea, justice has been done, and Beltran Leyva will be held accountable for his crimes. This conviction is the result of our close partnership with the Mexican government, and it should serve as a reminder that our countries will not rest in the fight against drug trafficking and violent crime.”
“This plea is the result of the unwavering commitment to aggressively investigate the leaders of transnational criminal organizations throughout world,” said Assistant Director Campbell. “The significant and constant cooperation between our domestic and international law enforcement partners aided significantly in this successful outcome.”
“Alfredo Beltran Leyva and his criminal network destroyed families and communities,” said Acting Administrator Rosenberg. “He oversaw a violent organization responsible for pushing dangerous drugs like cocaine and methamphetamine onto the streets of America and his guilty plea marks the end of his criminal reign and the beginning of his life behind bars.”
“Today’s guilty plea sends the strongest possible message to drug traffickers,” said Executive Associate Director Edge. “HSI and our law enforcement partners, both in the United States and around the world, will continue to work tirelessly to disrupt and dismantle international drug trafficking organizations and bring them to justice.”
Leyva, 45, was indicted on Aug. 24, 2012, for conspiracy to distribute cocaine and methamphetamine for importation into the United States. The defendant was extradited from Mexico to the United States on Nov. 15, 2014, and pleaded guilty before U.S. District Judge Richard J. Leon of the District of Columbia.
In court, the defendant admitted that he was part of a conspiracy to import large quantities of drugs into the United States. At the hearing, the government proffered evidence that from 1990 until his arrest in January 2008, the defendant was a leader of the Beltran Leyva Organization, a global criminal enterprise that was responsible for importing multi-ton quantities of cocaine and methamphetamine into the United States. Beltran Leyva admitted that he and his organization obtained tonnage quantities of cocaine from South American suppliers, which the defendant and his organization helped finance and which were transported to Mexico via air, land and sea. Once the cocaine reached Mexico, the defendant’s organization transported it to central key points in Mexico, including to Culiacan, Sinaloa, which was also the central point for the collection of billions of dollars from drug trafficking proceeds in the United States. Additionally, the government’s evidence would have shown that the organization carried out acts of violence, including murders, kidnappings, tortures and violent collections of drug debts, in order to sustain the drug importation operation. Further, the government’s evidence would have shown that the organization made payments to public officials to ensure that the organization’s drug shipments passed through Mexico uninhibited.
On May 30, 2008, the president added the Beltran Leyva Organization to the Department of Treasury’s Office of Foreign Asset Control’s Specially Designated Nationals and Blocked Persons list pursuant to the Foreign Narcotics Kingpin Designation Act. On Aug. 20, 2009, the president specifically designated Beltran Leyva as a specially designated drug trafficker under the same Kingpin Act.
The FBI’s El Paso Office led the investigation in partnership with the DEA’s New York Field Division and HSI’s New York Office as part of the Organized Crime Drug Enforcement Task Force. Deputy Chief Andrea Goldbarg, Assistant Deputy Chief Amanda Liskamm and Trial Attorney Adrian Rosales of the Criminal Division’s Narcotic and Dangerous Drugs Section and Assistant U.S. Attorney Marcia M. Henry of the Eastern District of New York are prosecuting the case. The Criminal Division’s Office of International Affairs and the U.S. Attorneys’ Offices of the Eastern District of New York, the Southern District of Florida, the Southern District of Texas, the Northern District of Georgia and the Northern District of Illinois provided substantial assistance. The Justice Department thanks the government of Mexico for their assistance in this matter.
Albuquerque Man Sentenced to Ten Years for Distributing Child PornographyRead the Press Release
ALBUQUERQUE – Ruben Nieto, 45, of Albuquerque, N.M., was sentenced in federal court yesterday afternoon to 120 months in prison for his conviction for distributing child pornography. He will be on supervised release for five years after completing his prison sentence. Nieto was ordered to pay $1,000 to each of the two victims whose images were used in the child pornography distributed by Nieto. Nieto also will be required to register as a sex offender.
Nieto was arrested by the FBI on Nov. 13, 2014, on a criminal complaint charging him with distribution of a visual depiction of a minor engaged in sexually explicit conduct and possession of a visual depiction of a minor engaged in sexually explicit conduct. Nieto was charged with committing both offenses in Bernalillo County, N.M., from March 24, 2014 through March 27, 2014. On Dec. 3, 2014, Nieto was indicted and charged with distributing child pornography.
According to court filings, the FBI initiated a federal investigation into Nieto in May 2014, after receiving a referral from the Bernalillo County Sheriff’s Office (BCSO) and the New Mexico Office of the Attorney General (NMOAG), both of which are members of the New Mexico Internet Crimes Against Children (ICAC) Task Force. In Jan. 2014, investigators identified an IP address that was being used to download and share child pornography. Investigation revealed that the IP address was subscribed to the residence in which Nieto lived until April 2014. In May 2014, investigators executed a search warrant at the residence and seized computers and computer-related media that contained child pornography after learning that Nieto regularly used the computer while he lived in the residence.
On July 29, 2015, Nieto pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Albuquerque office of the FBI, the BCSO, the NMOAG and the New Mexico ICAC Task Force.
The case was prosecuted by Assistant U.S. Attorney Shammara H. Henderson as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMOAG. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Albuquerque Man Pleads Guilty to Federal Firearms and Counterfeiting ChargesRead the Press Release
ALBUQUERQUE – Phillip Pacheco, 29, of Albuquerque, N.M., pleaded guilty today in federal court to being a felon in possession of firearms and counterfeiting U.S. securities. Under the terms of his plea agreement, Pacheco will be sentenced to 84 months in federal prison followed by a term of supervised release to be determined by the court.
Pacheco was indicted on May 28, 2015, and charged with being a felon in possession of firearms and counterfeiting U.S. securities on July 1, 2013, in Bernalillo County, N.M. At the time, Pacheco was prohibited from possessing firearms because he previously had been convicted of marijuana trafficking, armed robbery, conspiracy to commit armed robbery, aggravated assault with a deadly weapon and being a felon in possession of a firearm.
Pacheco was arrested in Aug. 2015, after he was transferred to federal custody from state custody where he was being held on related state charges. The state charges have since been dismissed in favor of federal prosecution.
During today’s proceedings, Pacheco pled guilty to the indictment. In entering the guilty plea, Pacheco admitted that on July 1, 2013, he possessed three firearms even though he was prohibited from possessing firearms because of his status as a convicted felon. Pacheco further admitted that he fraudulently made 147 counterfeit Federal Reserve Notes with a total face value of $9,820.00.
Under the terms of his plea agreement, Pacheco must forfeit the three firearms found in his possession on July 1, 2013. He also must forfeit the equipment he used to make the counterfeit Federal Reserve Notes.
Pacheco remains in custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney David M. Walsh is prosecuting the case.
5 Iberia Parish Sheriff’s Office employees plead guiltyRead the Press Release
LAFAYETTE, La. – Principal Deputy Assistant Attorney General Vanita Gupta and U.S. Attorney for the Western District of Louisiana Stephanie A. Finley announced today that three former and two current employees of the Iberia Parish Sheriff’s Office pleaded guilty to their roles in beating inmates at the Iberia Parish Jail.
Those pleading guilty before U.S. District Judge Patricia Minaldi today to one count of deprivation of civil rights are: Robert E. Burns, 46, Youngsville, La.; Byron Benjamin Lassalle, 34, Erath, La.; Wade Bergeron, 40, Milton, La.; Bret Klein Broussard, 35, Broussard, La.; and Wesley Hayes, 36, St. Martinville, La. Additionally, Lassalle and Hayes pleaded guilty to one count of civil rights conspiracy. Lassalle and Broussard are currently employed by the Iberia Parish Sheriff’s Office. The other three defendants no longer work there.
Each of the defendants, except Burns, faces 10 years in prison and a $250,000 fine for each count. Burns faces one year in prison and a $100,000 fine. They all face three years of supervised release.
The FBI and the U.S. Department of Justice, Civil Rights Division, participated in the investigation. Assistant U.S. Attorney Joseph G. Jarzabek, and Special Litigation Counsel Mark Blumberg and Trial Attorney Tona Boyd of the U.S. Department of Justice, Civil Rights Division, are prosecuting the case.
20 Individuals Indicted and Arrested for Defrauding the Department of EducationRead the Press Release
SAN JUAN, P.R. – On February 17, 2016, a Federal grand jury returned a ninety-three count superseding indictment charging a total of 52 defendants, including 20 additional employees of Rocket Learning, LLC with conspiracy to commit mail fraud, mail fraud, theft of government money and property, and aggravated identity theft, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Department of Education-Office of Inspector General, the FBI and ICE-HSI are in charge of the investigation. The superseding indictment was unsealed earlier today.
As part of the conspiracy in the superseding indictment, the additional individuals indicted are either “teacher leaders” or “teachers” who provided tutoring services as employees of Rocket Learning, LLC. They participated in the scheme to submit fraudulent attendance information for payment by supervising, or participating in fraudulent biometric attendance entries, signing blank or false manual attendance forms, and/or signing false post-test forms indicating that students received the services when they did not.
The superseding indictment alleges one count of conspiracy to commit mail fraud, a violation of Title 18 United States Code, Sections 1349 and 1341 and twenty-six counts of mail fraud, a violation of Title 18, United States Code, Section 1341, related to payments caused to be made via the U.S. Mail to Rocket Learning, Inc., for twenty six fraudulent invoices submitted from 2011 - 2013 to the Puerto Rico Department of Education; one count of theft of public money, a violation of Title 18, United States Code, Section 641, related to the approximately $954,297.00 in Title I Federal Funds unlawfully received; and sixty-five counts of aggravated identity theft, a violation of Title 18, United States Code, Section 1028A(a)(1), related to the use of means of identification of another person by using the name and signature of real students, in relation to the theft of public money charged in the indictment.
“The U.S. Attorney’s Office will continue its efforts to investigate and prosecute those who abuse their access to government funds, and fraudulently obtain moneys destined to help children in our communities,” said Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
“This case reveals once again that there will always be those among us who will endeavor to steal money from even the most vulnerable of populations; in this case, our community’s children. Regrettably, nearly one million dollars in taxpayer funds was lost to a scheme by people willing to sacrifice the futures of the children this federal program was intended to benefit. The FBI and its law enforcement partners recognize the harm caused to Puerto Rico by those who divert public monies to their own use, and will continue to prioritize the investigation and prosecution of these crimes,” said Douglas A. Leff, Special Agent in Charge, Federal Bureau of Investigation.
The defendants are:
- Maria Plaza- Teacher Leader at Hector I. Rivera School
- Wanda Figueroa Figueroa- Teacher Leader at Antonio Serrano Gonzalez School
- Aracelis Rivera Rivera- Teacher at Hector I. Rivera School
- Annette Coppin Bald- Teacher at Ines Maria Mendoza School
- Idalis Torres Torres Torres- Teacher at Nueva Superior de Loiza School
- Jessica Marrero Santana- Teacher at Eugenio Maria de Hostos School
- Keila Silva Sanchez - Teacher at Jesus T. Pinero School
- Monica Ortiz Alicea- Teacher at Antonia Saez Irizarry School
- Nayda Torres De Leon-Teacher at Maria Dolores Faria School
- Guillermo Morales Muñiz- Teacher at Francisco Matias Lugo School
- Raquel Roman Bonilla- Teacher at Joaquin Vazquez School
- Joel Torres Beltran- Teacher at Manuel Mendez Liciaga School
- Laurie Baerga Castro- Teacher at Adrin Torres Torres School
- Angel Velez Rosa- Teacher at Berwind Intermedia School
- Florentino Perez Gonzalez- Teacher at Berwind Intermedia School
- Ivelisse Vazquez Garcia- Teacher at Dr. Ramon Tellado School
- Maritza Rosario Medina- Teacher at Antonia Serrano Gonzalez School
- Ana Oben- Teacher at Luis Munoz Rivera School
- Mariam Candelaria- Teacher at Antonia Serrano Gonzalez School
- Margarita Arroyo Heredia- Teacher at Antonia Serrano Gonzalez School
The case is being prosecuted by Assistant United States Attorney Seth A. Erbe. If found guilty, defendants are facing a maximum penalty of 20 years in prison and two additional years for each corresponding aggravated identity theft count. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Monday 22 February 2016
“Pill Mill” Medical Director Convicted in Scheme to Distribute Oxycodone Without a Medical NeedRead the Press Release
Baltimore, Maryland – A federal jury convicted physician William Crittenden III, age 52, of Kensington, Maryland late Friday of conspiring to distribute oxycodone and alprazolam, and eight separate counts of unlawfully distributing oxycodone.
The guilty verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
“William Crittenden prescribed opioid drugs to people who had no medical need for the drugs,” said U.S. Attorney Rod J. Rosenstein. “Pharmaceutical pills can be just as harmful as illegal drugs when they are used without proper oversight.”
According to evidence presented at the 11 day trial and court documents, in March 2011, co-defendants Michael Resnick, Alina Margulis and Gerald Wiseberg opened Healthy Life in Owings Mills, Maryland as a purported pain management clinic. Healthy Life later moved to a larger space in Timonium, Maryland, until it closed on May 15, 2012. Both Healthy Life locations attracted large and unruly crowds. Customers caused disturbances outside the locations, used narcotics inside the clinic itself, and engaged in narcotics transactions in the parking lot. Over 80% of the customers of Healthy Life were from out of state.
Wiseberg interviewed and hired Crittenden to serve as one of the first medical directors at Healthy Life because Wiseberg believed that Crittenden would write prescriptions for narcotics to customers without a legitimate medical need. Customers to Healthy Life paid at least $300 for an initial visit and at least $250 for all subsequent visits and the fees were collected upfront. Crittenden was paid $1,500 a day by the managers of Healthy Life, and received a total of $104,500 over just four months while he was engaged in the scheme. During this time, Crittenden knowingly provided prescriptions to individuals who were addicted to oxycodone and only wanted more pills to feed their addictions. Crittenden also knowingly provided prescriptions to individuals who wanted to sell the narcotic pills on the street. Finally, Crittenden knowingly provided prescriptions to Healthy Life customers even after their urinalysis results showed the presence of illicit substances such as cocaine and marijuana.
Crittenden was the medical director of Healthy Life until his resignation in August 2011 when the Maryland Board of Physicians - the agency authorized to issue licenses to practice medicine in Maryland and to discipline licensees - initiated an investigation into Crittenden’s prescribing practices. This investigation ultimately led the Maryland Board of Physicians to suspend Crittenden’s medical license.
Wiseberg, who was not a doctor, established the standard operating procedures for Healthy Life, including which drugs the prescribing physician could prescribe and the maximum dosage amounts of these drugs. Healthy Life also accepted cash payments in exchange for providing prescriptions for large amounts of oxycodone, alprazolam and other drugs, to customers who did not have a legitimate medical need for the drugs.
To maximize profits, they also encouraged the prescribing physicians, including Crittenden, to prescribe the maximum amount of oxycodone to each customer; and established that prescriptions would be written for 28-day cycles as opposed to 30-day cycles. Additionally, Margulis and Resnick handled complaints by Healthy Life customers who were unhappy with the prescriptions they received, particularly when a medical provider might prescribe less oxycodone than the customer wanted. In those instances, Margulis and Resnick would intervene and ask the prescribing medical provider to reconsider, knowing it would lead the provider to give the customer what the customer wanted.
Crittenden was acquitted on 15 of the drug distribution counts.
Crittenden faces a maximum sentence of 20 years in prison. A sentencing date will be scheduled in the near future.
Michael Resnick, a/k/a Michael Reznikov, age 54, and his wife, Alina Margulis, age 49, both of Brooklyn, New York; Gerald Wiseberg, a/k/a Gerry Wiseberg and Jerry Wiseberg, age 82, of Boca Raton, Florida; along with Daniel Alexander, age 53, of Pikesville, Maryland, who served as a medical director at Healthy Life after Crittenden resigned, previously pleaded guilty to conspiracy to distribute oxycodone and alprazolam. Margulis also pleaded guilty to money laundering, and Resnick also pleaded guilty to structuring currency deposits. Resnick and Margulis have agreed to the entry of an order to forfeit $280,000, the amount of illicit profits they received from the scheme. Alexander has agreed to the entry of an order to forfeit $30,000, the amount he was paid for his activities at Healthy Life. Chief U.S. District Judge Catherine C. Blake has scheduled sentencing for Wiseberg on March 7, Resnick and Margulis on March 18, and Alexander on March 25.
United States Attorney Rod J. Rosenstein commended DEA, IRS-CI, Baltimore County Police Department and Baltimore County State’s Attorneys’ Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jason D. Medinger and Peter J. Martinez, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Whitesboro Man Sentenced to 60 Months for Methamphetamine Distribution and Possession of AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that KENNY RAY SMITH, age 52, of Whitesboro, Oklahoma, was sentenced to 60 months imprisonment, followed by 3 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) and FELON IN POSSESSION OF AMMUNITION, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about February 13, 2015, in the Eastern District of Oklahoma, the defendant 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 further alleged that on or about February 13, 2015, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, ammunition which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Oklahoma Bureau of Narcotics and the District 16 District Attorney’s Drug Task Force.
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 defendant will remain in the custody of the United States Marshals Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Christopher Wilson represented the United States.
VA Medical Center ICU Nurse Pleads Guilty to Theft of Prescription Drugs, Falsifying Employment ApplicationRead the Press Release
PROVIDENCE, R.I. – Lisa M. McManaman, 47, of Providence, a former registered nurse in the intensive care unit of the Providence VA Medical Center, pleaded guilty on Friday to stealing prescription drugs from the VA Medical Center and to failing to disclose on her employment application with the VA that she was previously terminated from a similar position at another hospital in Rhode Island.
Appearing Friday before U.S. District Court Chief Judge William E. Smith, McManaman pleaded guilty to one count of theft of government property and one count of false statements. McManaman’s guilty plea is announced by United States Attorney Peter F. Neronha; Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
At the time of her guilty plea, McManaman admitted to the court that on dozens of occasions between May 2015 and October 2015, she used an override feature of an automated medication dispensing system (AMDS) to obtain controlled substance pills, including but not limited to oxycodone and morphine, that were not prescribed for nor provided to patients. According to court records, in the month of September 2015 alone, McManaman used the override feature of the AMDS 19 times and removed approximately 240 controlled substance pills that were not prescribed by a physician and that were not administered to patients.
Additionally, McManaman admitted to the court that in March 2014, she provided false information on her job application for employment at the Providence VA Medical Center when she stated that she had not been terminated from any employment within the previous 5 years. An investigation revealed that in November 2013, McManaman had been fired from her previous job as a nurse in the intensive care unit of a hospital in Rhode Island.
McManaman is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on May 13, 2016.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
The matter was investigated by the United States Department of Veterans Affairs, Office of Inspector General, and the DEA.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
U.S. Attorney Holds Roundtable Discussion with Police Chiefs, Sheriffs and Other Law Enforcement Representatives of District's Westernmost CountiesRead the Press Release
ASHEVILLE, N.C. – On Friday, February 19, 2016, U.S. Attorney Jill Westmoreland Rose convened a roundtable discussion with police chiefs, sheriffs and other law enforcement representatives of the district’s westernmost counties, to discuss law enforcement related issues impacting their communities.
The meeting was held at the Eastern Band of Cherokee Indians Justice Center in Cherokee, N.C., and was attended by C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and representatives of The Yancey County Sheriff’s Office, the Swain County Sheriff’s Office, the Jackson County Sheriff’s Office, the Haywood County Sheriff’s Office, the Macon County Sheriff’s Office, the Maggie Valley Police Department, the Brevard Police Department and the Cherokee Police Department.
“As the district’s chief federal law enforcement officer and a representative of the Justice Department, it is important to reach out to our local police departments and sheriffs’ offices to discuss some of the law enforcement issues they are currently facing,” said U.S. Attorney Rose, following Friday’s roundtable discussions. “Local law enforcement agencies know and understand the unique needs of their communities, and their input ensures that we are effectively deploying federal resources to maximize the positive impact on the lives of the people in those communities.”
Among the issues discussed was the need for additional law enforcement training; the impact of crime in small and rural communities; conducting collaborative investigations and focusing on law enforcement initiatives that deliver greater local impact; joint terrorism-related investigations; as well as the epidemic of opiate and heroin overdose deaths. Over the course of the meeting, U.S. Attorney Rose emphasized the importance of developing and maintaining strategic partnerships with local law enforcement agencies and reiterated her office’s commitment to ensuring their needs are met.
“We rely on the dedicated service and assistance of our partners in local law enforcement agencies to keep our communities safe. They are important partners and teammates and I have tremendous respect and gratitude for their professionalism, partnership and hard work. Following today’s discussion, I am confident that we all have an increased understanding of each other’s needs in accomplishing our common goal: the safety and well-being of the people in our communities.”
Two Chinese nationals charged with defrauding GoodyearRead the Press Release
Xin Franco Fan, 40, and Rex Xu Yu, 41, two Chinese nationals, were arrested and charged on February 19, 2016 with wire fraud and honest services wire fraud for defrauding Goodyear, said FBI Special Agent in Charge Stephen D. Anthony and Acting U.S. Attorney Carole S. Rendon.
"The FBI takes its responsibility to aggressively protect US companies from the vulnerabilities associated with operating overseas seriously, including significant fraud as alleged in this investigation," Anthony said. "Individuals who participate in fraud schemes should not underestimate the resolve of the FBI to work closely with companies such as Goodyear to root out these schemes and bring the perpetrators to justice."
"These two defendants were engaged in a multi-year scheme designed to steal tens of thousands of dollars from Goodyear," Rendon said. "Goodyear is to be commended for promptly reaching out to law enforcement when they uncovered this scheme. Because of their quick action, we are now able to hold these men accountable for their conduct."
According to a criminal complaint, Fan and Yu were employees of Goodyear Orient Company (Private) Limited, or GOCPL, a subsidiary of Goodyear, located in Singapore and with offices in China. GOCPL manages all of the natural rubber purchasing, delivery, financing and quality certifications for Goodyear’s global operations. Goodyear, through GOCPL, spends approximately $1 billion annually to acquire natural rubber for its operations.
As a condition of their employment, Fan and Yu are obligated to act in the best interests of Goodyear when purchasing natural rubber. In 2015, Goodyear received an anonymous tip that Fan and Yu were receiving kickback payments in connection with GOCPL’s raw materials purchases. With the cooperation of Goodyear executives, an investigation into the matter led to a complaint being filed in the Northern District of Ohio federal court and arrest warrants being issued for Fann and Yu.
A complaint 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.
Tax Preparer Sentenced to 51 Months for Filing False Tax Returns and Lying on A Loan ApplicationRead the Press Release
CHARLOTTE, N.C. – Malik Shropshire, 43, of Charlotte was sentenced today to 51 months in prison for filing false tax returns and lying on a loan application, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank D. Whitney ordered Shropshire to serve 3 years under court supervision following his prison term, and to pay $582,933 as restitution to IRS and $7,749.24 to a credit union he defrauded.
U.S. Attorney Rose is joined by Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), in making today’s announcement.
According to filed court documents and today’s sentencing hearing, Malik Shropshire worked as a tax preparer and a financial advisor in the Charlotte area, and aided and assisted in the preparation of hundreds of false tax returns which were filed with the IRS. Court records show that Malik Shropshire’s sister, Nkhenge Shropshire, was the owner of “Tax Connections,” a tax return preparation business also located in Charlotte. According to court records, from 2010 through 2012, Malik Shropshire conspired with his sister and others, to execute a fraudulent tax fraud scheme involving the filing of fraudulent tax returns. Court records indicate that Malik Shropshire recruited individuals to have their tax returns prepared and filed through his sister’s business and elsewhere, promising in exchange large tax refunds. Court records show that Malik Shropshire obtained the fraudulent refunds by filing tax returns that contained fraudulent information, including false Schedule C businesses, false dependents, and false refundable education credits. As a result of using the fraudulent information, court records show that the taxpayers’ tax liabilities decreased, they received larger tax refunds, and they qualified for the Earned Income Tax Credit. According to court records, the tax loss associated with the fraudulent returns is $582,933.00.
In addition to the fraudulent tax scheme, court records show that Malik Shropshire, assisted by his sister, lied on loan applications and was able to obtain a credit card and a car loan, using fake social security numbers, false income information and false employment information. According to court records, Malik Shropshire used the auto loan to purchase a Land Rover vehicle. Subsequently, he defaulted both on the auto loan, and the credit card, after he maxed out its $10,000 limit. Malik Shropshire pleaded guilty to conspiracy to defraud the IRS and to making false statements on a loan application in June 2015.
In handing down Malik Shropshire’s sentence today, Judge Whitney emphasized that this was a very serious, sophisticated crime and noted the importance of general deterrence so “would be fraudsters” would not participate in tax refund fraud schemes.
Malik Shropshire has been in federal custody since August 2015. Upon designation of a federal facility he will be transferred to the custody of the Federal Bureau of Prisons. Nkhenge Shropshire was previously sentenced for her participation in the scheme.
The investigation was handled by IRS-CI. Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte prosecuted the case.
St. Petersburg Man Sentenced to More Than 12 Years for Child Exploitation OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Jorge Valencia (43, St. Petersburg) to 12 years and 11 months in federal prison for receiving child pornography and attempting to entice a minor. The Court also ordered Valencia to forfeit items that he had used while committing the offenses, including a laptop and an iPhone. Valencia pleaded guilty on September 24, 2015.
According to court documents, in January 2015, an undercover FBI task force officer discovered that Valencia was using an online file-sharing program to share files depicting child pornography. Subsequently, a search warrant was executed at Valencia’s residence and several of his electronic devices were seized for evaluation.
The forensic analyses of the devices revealed that since at least 2012, Valencia had been using a phone messaging app to chat with individuals, he believed to be under the age of 18, for the purpose of soliciting sexually explicit pictures from them. A large collection of child pornography, including numerous videos and images depicting children under the age of 12, were also found on his devices.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rachel Jones.
It is another case 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.
St. Petersburg Man Sentenced to Fifteen Years for Firearm and Drug OffensesRead the Press Release
Tampa, Florida – United States District Judge Elizabeth Kovachevich has sentenced Tom Kelly (St. Petersburg, 32) to 15 years in federal prison for possessing a firearm as a convicted felon and for conspiring to possess with the intent to distribute crack cocaine. He pleaded guilty in October 2015.
According to court documents, Kelly operated a drug house in St. Petersburg. During the execution of a search warrant at his home in October 2014, law enforcement officers found Kelly in possession of two loaded firearms, crack cocaine, powder cocaine, and prescription pills. Kelly has multiple prior felony convictions for drug and firearm offenses, and is therefore prohibited from possessing a firearm or ammunition under federal law. The officers also seized more than $100,000 of jewelry and cash from the residence and other locations as proceeds of the drug distribution scheme.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorney Rachel K. Jones.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
South Carolina Native Sentenced to 180 Months for Leadership Role in a-PVP Trafficking and International Money Laundering ConspiraciesRead the Press Release
GREENEVILLE, Tenn. – On Feb. 19, 2016, Joshua Lee Lindsey, 30, of Lyman, S.C., was sentenced by the Honorable Pamela L. Reeves, U.S. District Court Judge, to serve 180 months in federal prison for his leadership role in an extensive a-PVP (alpha-pyrrolidinopentiophenone) distribution conspiracy and an international money laundering conspiracy involving northeast Tennessee, southwest Virginia, western North Carolina and western South Carolina.
A-PVP is a synthetic drug primarily ordered from China, which is commonly referred to on the street as “gravel” or “flakka.” Common effects on users include: extreme paranoia; hallucinations; elevated blood pressure; extremely high body temperature; excited delirium; staying awake for days; hostility and having exceptional strength without apparent fatigue. These characteristics make the drug not only very dangerous for the user but also for law enforcement responding to people who are high on it. A-PVP has been referred to by users of the substance as “meth on steroids.”
According to his plea agreement on file with U.S. District Court, Lindsey admitted that between January 2012 and October 2014 he conspired to distribute and was accountable for a conservative estimate of between 35,000 and 75,000 grams (35 to 75 kilograms) of a-PVP. Lindsey and Randall Scott Braddock, 50, of Hendersonville, N.C., became involved in obtaining a-PVP from China and redistributing it for profit as early as January 2012. Braddock was also charged in this case and was previously sentenced to serve 192 months in federal prison.
The investigation in this case resulted in the recovery of a large number of emails between Lindsey and a particular a-PVP supplier in China. In these emails, Lindsey asked for the “most potent” and “top quality” a-PVP they had available. He asked for the “big rocks,” because “demand was high” and was concerned because there had been complaints about a recent drop in potency. Lindsey asked that the supplier in China label the a-PVP as acrylic paint and made up a fake name of ‘AcryliCO’ for the company to ship to him to avoid detection from law enforcement. He requested the supplier send the a-PVP to his address in South Carolina, instead of North Carolina or Tennessee because his partner Braddock had a previous arrest in North Carolina for dealing in a-PVP and other substances. In an email to the supplier Lindsey wrote, “I already gave u good business in n.c. and Landrum s.c, All that was brought to you by me! Scott Braddock and Rick lowe! The whole nc tn boom last year! You’re welcome!” Lindsey expressed his gratification to the China a-PVP supplier by emailing,” You have been a blessing for me! My life is much better now!”
Lindsey later recruited and hired other individuals from South Carolina to assist in the conspiracy by providing them money to send to the supplier in China via Western Union. After the 500 to 1,000 gram shipments of a-PVP were received in South Carolina, Lindsey instructed the others to repackage it into 50 gram bags and deliver them to Braddock in Hendersonville, N.C., for distribution to a very large number of other dealers and customers, primarily in northeast Tennessee.
Others who were charged and previously sentenced in this conspiracy include Richard McNeal Hillman, Ronnie Lee Shelton, Austin Michael Stallard, Johnny Michael Stallard, Desera Jade Allen, Phillip Wayne Mullins, Johnny White, Michael Ray Mangum, Eric Matthew Vance, Evelyn Vickers, James Elmer Mclain, Joshua Brandon Hinkle and Richard Allen Lowe, who were sentenced to serve 188 months, 235 months, 121 months, 180 months, 151 months, 151 months, 120 months, 120 months, 135 months, 110 months, 110 months, 110 months and 80 months in federal prison respectively.
Law enforcement agencies participating in the investigation included: the Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; Sullivan County Sheriff’s Office; Kingsport Police Department; Hawkins County Sheriff’s Department; Johnson City Police Department; Greeneville, Tennessee Police Department; Hendersonville, North Carolina Police Department; and Scott County, Virginia Sheriff’s Office. Assistant U.S. Attorney Wayne Taylor represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Ship Captain Pleads Guilty to Felony Obstruction Related to Pollution from Tanker Ship Traveling to CharlestonRead the Press Release
Contact: Office of Public Affairs (202) 514-2007
Washington—A Filipino citizen and the captain of the tanker ship, T/V Green Sky, pleaded guilty today to one felony count in federal court in Charleston, South Carolina, for obstructing a U.S. Coast Guard investigation into pollution crimes aboard the vessel.
Genaro Anciano, 52, who was the highest ranking officer aboard the ship, pleaded guilty to one count of Obstruction of an Agency Proceeding. The charge stems from a Coast Guard investigation in late August 2015 into the bypass of pollution prevention equipment, including the use of a “magic device,” on the Green Sky. In court papers, the defendant stated that members of the ship’s engine room, including a senior officer, admitted to illegally discharging overboard. These admissions occurred prior to the August 2015 Coast Guard inspection at the Port of North Charleston. During the investigation, Anciano made several false and misleading statements to the Coast Guard to cover up the illegal conduct.
The T/V Green Sky is a 30,263 gross ton, ocean-going vessel that operates as a petroleum and chemical tanker. The vessel is approximately 600 feet in length and is registered in Liberia. The vessel is owned by an entity incorporated in the Marshall Islands. Over the course of several days, the normal operation of the Green Sky generates thousands of gallons of bilge wastes that are contaminated with petroleum products and oil residues. These bilge wastes must be removed for the vessel to operate safely.
Both the United States and Liberia are parties to the MARPOL treaty, which regulates the overboard discharge of bilge waste. It was prohibited to discharge bilge wastes from the T/V Green Sky without first running that effluent through the ship’s oily water separator. According to the MARPOL treaty, all overboard discharges from the vessel’s bilges had to be recorded in the T/V Green Sky’s oil record book. A bypass of the oily water separator, which is not recorded in the oil record book, jeopardizes the accuracy and integrity of that document. It is a separate federal crime for oceangoing vessels to enter a U.S. port with a false oil record nook.
Anciano’s sentencing has not been scheduled.
The case was investigated by the U.S. Coast Guard Investigative Service with assistance from inspectors from Sector Charleston as well as Legal from U.S. Coast Guard in Miami. The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division and Assistant U.S. Attorney Matt Austin of the U.S. Attorney’s Office for the District of South Carolina in Charleston.
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San Antonio Mother and Son Charged in Million Dollar Bank Fraud and Aggravated Identity Theft Scheme Involving Relative’s ChurchRead the Press Release
In San Antonio, a mother and son have surrendered to federal authorities based on an alleged million dollar fraud scheme involving a local church owned by a different family member announced United States Attorney Richard L. Durbin, Jr., U.S. Secret Service Special Agent in Charge Lee Dotson, and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
A 12-count federal grand jury indictment, returned last week, charges 23–year-old Brennan R. Diaz and 44–year-old Deborah A. Diaz with one count of conspiracy to commit bank fraud and one count of money laundering, The indictment also charges Brennan Diaz with four substantive counts of bank fraud, two counts of aggravated identity theft and two counts of money laundering. Deborah Diaz is charged with two substantive counts of bank fraud and one count of aggravated identity theft.
According to the indictment, between February 2015 and October 2015, the defendants conspired to defraud the La Obra Milagrosa Church (aka “The Miracle Center Church”) of more than $1 million. Both defendants were associated with the TMC Church which was owned by Brennan’s grandfather. Neither defendant had authority to sign TMC Church checks. The indictment alleges that Brennan Diaz wrote, and fraudulently forged his grandfather’s signature on, approximately 50 TMC Church business checks made payable to himself. Defendant Deborah Diaz allegedly forged her father’s signature on three TMC Church business checks made payable to herself. The total amount of those fraudulent checks is estimated to be $1,094,100.00.
Upon conviction, bank fraud calls for up to 30 years in federal prison; money laundering calls for up to ten years in federal prison; conspiracy to commit bank fraud calls for up to 30 years in federal prison; and, aggravated identity theft calls for mandatory two years in federal prison. Brennan Diaz surrendered to federal authorities this morning. He was released this afternoon on a $30,000 bond pending trial. Deborah Diaz surrendered to authorities on Friday. She is currently on a $50,000 unsecured bond pending trial.
This joint investigation is being conducted by the Financial Crimes Section of the U.S. Secret Service South Texas Regional Task Force and the Internal Revenue Service-Criminal Investigation. Other agencies involved in the Task Force include the San Antonio Police Department, Bexar County Sheriff’s Office, Bexar County District Attorney’s Office and Texas Department of Public Safety-Criminal Investigations Division. Assistant United States Attorney Thomas P. Moore is prosecuting this case on behalf of the Government.
Salem Man Pleads Guilty to Child Pornography PossessionRead the Press Release
CONCORD, NEW HAMPSHIRE: Matthew Castricone, 27, of Salem, New Hampshire, pled guilty on Monday in United States District Court for the District of New Hampshire to possessing child pornography, announced United States Attorney Emily Gray Rice.
An investigation by the Federal Bureau of Investigation and the Salem, New Hampshire Police Department resulted in the issuance of a search warrant for Castricone’s Salem residence. When that warrant was executed in October 2015, officers discovered dozens of videos of child pornography located on Castricone’s personal computer.
Scheduled for sentencing in May 2016, Castricone faces a maximum prison term of 10 years, to be followed by a term of at least 5 years of supervised release and a fine of up to $250,000.
The case was investigated by the Federal Bureau of Investigation (Boston and New Hampshire offices), and the Salem, New Hampshire Police Department. The case is being prosecuted by Assistant United States Attorney Nick Abramson.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Rochester Father, Two Sons Arrested and Charged with Drug Trafficking; Large Quantities of Drugs and Weapons SeizedRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Blake Rivera, 31, of Greece, NY, his brother Chayanne Rivera, 25, of Gates, NY, and their father, Victor Rivera, 51, of Rochester, NY, were arrested and charged by criminal complaint with conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine, 280 grams or more of crack cocaine and 100 grams of heroin, and possession of firearms in furtherance of drug trafficking. The charges carry a mandatory minimum 15 years in prison, a maximum of life and a $10,000,000 fine.“As all in our community know, the most deadly substances killing our residents consist of heroin and firearms,” said U.S. Attorney Hochul. “Thanks to exceptional police work, not only have massive quantities of these ‘assassins’ been removed, but even larger amounts of equally dangerous crack and powder cocaine. Any person in any way involved in trafficking these toxins should expect to be prosecuted to the fullest extent of the law.”
DEA Special Agent in Charge James Hunt stated, “An eight-month investigation into an illicit family drug business resulted in 14 firearms and 9 kilograms of cocaine seized and taken off our streets; as well as the arrest of three drug traffickers. Through collaborated efforts, law enforcement identified and arrested a major cocaine source of supply contaminating the Greater Rochester New York area.”
Assistant U.S. Attorney Everardo A. Rodriguez, who is handling the case, stated that according to the complaint, the Drug Enforcement Administration and Rochester Police have been investigating the drug trafficking activities of the three defendants for nine months. During the investigation, officers conducted multiple controlled purchases from the defendants.
On December 4, 2015, officers from the New York State Police intercepted a suspicious FedEx package addressed to a fictitious name at 164 Curtis St. The package contained approximately 612 grams of heroin. Subsequently, on February 17, 2016, four search warrants were executed at the residences of the defendants and a storage location used by the defendants.At Blake Rivera’s residence at 276 Woodsmoke Lane, officers found an assault style rifle loaded with a magazine that contained 30 rounds of ammunition and cash totaling $346, 460.
During a search of 164 Curtis Street where Victor Rivera lived and where Blake and Chayanne stored and distributed drugs, officers recovered approximately 1.5 kilograms of cocaine and 533 grams of crack cocaine. In addition officers seized a .357 magnum revolver, a 9mm handgun, and AK 47 rifle, two 12 gauge shotguns, ammunition and $3,924 in cash.
At the residence of Chayanne Rivera at 245 Colwick Road, officers seized an AK 47 style firearm among other evidence.
Inside the storage unit on Brighton Henrietta Town line Road in Rochester, officers found a 1998 BMW sedan with 6.8 kilograms of cocaine in the trunk and seven firearms: one SKS style firearm loaded; two handguns; two AK-47 style firearms; one shotgun; and one AR-15 style firearm as well as several loaded magazines and loose ammunition.
In total, officers seized:
• Approximately 8.3 kilograms of cocaine,
• Approximately half a kilogram of crack cocaine,
• 14 firearms, most of them loaded, and
• Approximately $375,456 in cash.Blake Rivera made an initial appearance this morning before U.S. Magistrate Judge Marian W. Payson. Victor and Chayanne Rivera will appear this afternoon. All will be held pending detention hearings later this week.
The criminal complaint 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, with assistance from several law enforcement agencies including the New York State Police, under the direction of Major Craig Hanesworth; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, the Greece Police Department, under the direction of Chief Patrick Phelan, the Monroe County Sheriff’s Office, under the direction of Patrick O’Flynn, and the Monroe County District Attorney’s Office, under the direction of Sandra Doorley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Previously Convicted Harrisburg Man Charged with Possession of A FirearmRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal Grand Jury in Harrisburg returned an indictment on February 3, 2016 charging Dane Burnell Merritt, age 52, with possession of a firearm after having been previously convicted of a felony offense.
According to United States Attorney Peter Smith, the indictment was unsealed February 19, 2016 following Merritt’s initial appearance before U.S. Chief Magistrate Judge Martin C. Carlson. The case arose as a result of an arrest of Merritt by Harrisburg Police in October of 2015.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Police Department. Prosecution has been assigned to Assistant U.S. Attorney Chelsea Schinnour.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
Indictments 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.
The maximum penalty under federal law is 10 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Paige Industrial Services Agrees to Resolve False Claims Act AllegationsRead the Press Release
Baltimore, Maryland – Government contractor Paige Industrial Services, Inc. has agreed to pay the United States between $450,000 and $675,000 to resolve allegations under the False Claims Act that the company submitted false claims to the Department of Health and Human Services. In a related parallel criminal proceeding involving a Paige subcontracting company, construction company owner Luis Alonso Valle, age 46, of Silver Spring, Maryland, pleaded guilty on February 11, 2016 to an illegal pattern and practice of hiring unauthorized aliens.
The settlement and guilty plea were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (DHHS); Acting Special Agent in Charge John Dolce, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (DOL); Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
This settlement resolves allegations that Paige Industrial Services submitted claims from 2006 to 2013 falsely certifying that it had complied with the Davis-Bacon Act. The Davis-Bacon Act required Paige to pay certain prevailing wages and fringe benefits to its employees, or the employees of its subcontractors, while working under a government contract performing construction at the National Institute of Health (NIH) campus in Bethesda, Maryland. Paige, which provided construction and maintenance services to government agencies, allegedly failed to meet the requirements of the statute while certifying that it had. Paige denies the allegations.
“Contractors are required be truthful in their certifications to federal agencies,” said U.S. Attorney Rod J. Rosenstein.
“This office is committed to investigating allegations of fraud involving the Davis-Bacon Act, which requires that contractors and subcontractors pay prevailing wages to their workers on government projects,” stated Acting SAC John Dolce, U.S. Department of Labor’s Office of Inspector General - Washington Regional Office. “The joint criminal and civil resolutions announced today reflect the seriousness with which our agency and its law enforcement partners pursue allegations of wrongdoing that affect the American workforce.”
As part of the settlement, Paige has agreed to make additional payments above a minimum settlement payment of $450,000, depending on the financial performance of the company over the next five years.
The civil settlement resolves a lawsuit filed in the District of Maryland under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government's recovery. (U.S. ex rel. Brandon Owens and Stevan Reba v. Gilbane, Inc, Gilbane Building Company, Inc, and Paige Industrial Services, Inc.) The claims resolved by this settlement are allegations only, and there has been no determination of liability.
In a related parallel criminal proceeding, Valle Services, LLC., was a subcontractor to Paige at the NIH campus in Bethesda. According to his plea agreement, Luis Valle owned and operated Valle Services, a construction company that provided unskilled laborers to clean up after demolition projects. From at least January 2010 to June 2013, Valle paid some of his employees by handwritten checks without withholding required payroll taxes of at least $54,641. Additionally, Valle failed to pay a matching employer share of the payroll tax of at least $54,641. These wages were not included on W-2 forms distributed to the employees at the end of the year.
Furthermore, from March 2008 to August 2013, Valle hired at least 19 illegal aliens to work in the United States, and paid them weekly through checks that he typically distributed in person from his vehicle at a parking lot. Valle approved the hiring of at least five of the illegal aliens to work on a federal contract at the Bethesda NIH campus, which contract was subject to the provisions of the Davis-Bacon Act.
U.S. District Judge Paul W. Grimm sentenced Valle on February 11, 2016 to three years’ probation and imposed the condition that Valle not employ any unauthorized aliens. Judge Grimm also entered an order that Valle forfeit $57,000, which represents a $3,000 fine for each of the 19 unauthorized aliens that he illegally hired.
The settlement was a result of an investigation by the U.S. Attorney's Office for the District of Maryland, DHHS, DOL-OIG, IRS-CI, FBI and HSI Baltimore. The investigation was handled by Assistant U.S. Attorneys Thomas Barnard and Sujit Raman.
New York Man Sentenced to Federal Prison for Selling Counterfeit MerchandiseRead the Press Release
A man who sold counterfeit merchandise at a “Clearance Sale” located on 16th Ave. S.W. in Cedar Rapids, Iowa, was sentenced today to more than three years in federal prison.
Yahya Jawad, age 57, from Binghamton, New York, received the prison term after a September 29, 2015, guilty plea to one count of trafficking in counterfeit goods.
In a plea agreement, Jawad admitted that on January 9, 2015, he was selling counterfeit merchandise at a “Clearance Sale.” Law enforcement officers purchased three counterfeit items from him including a pair of headphones that appeared to be “Beats Audio” headphones and two purses. One appeared to be a “Michael Kors” purse and the other a “Louis Vuitton” handbag. After confirming that these items were counterfeit, law enforcement officers returned to the “Clearance Sale” and seized additional counterfeit items, including more headphones and purses, as well as other clothing items. In total, law enforcement seized more than $150,000 worth of counterfeit merchandise. Evidence at the sentencing hearing today also established that in December 2015, while on release pending sentencing, Jawad ran a similar “Liquidation Sale” in Topeka, Kansas. Law enforcement in Kansas ultimately conducted a search of this sale and seized more than $280,000 worth of additional counterfeit merchandise.
Jawad was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Jawad was sentenced to 41 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Department of Homeland Security and the Kansas Attorney General’s Office.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 15-CR-83.
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New Haven Man Sentenced to 5 Years in Prison for Selling CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on February 19, JEBRELL CONLEY, also known as “City,” 27, of New Haven, was sentenced by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by six years of supervised release, for possessing with intent to distribute crack cocaine.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence, and an offer of help for those who want it.
According to court documents and statements made in court, on February 18, 2015, New Haven police officers executed a search warrant at a residence frequented by CONLEY and seized approximately 32 grams of crack cocaine, packaging materials and Grape Street Crips regalia consisting of a number of clothing items. CONLEY was arrested on state charges at that time.
The Grape Street Crips had become the focus of heightened law enforcement scrutiny after members of the group were involved in an outbreak of gun violence in New Haven, and CONLEY had attended a Project Longevity call-in.
CONLEY has been detained since his arrest. On October 19, 2015, he pleaded guilty to one count of possession of at least 28 grams of crack cocaine with intent to distribute.
CONLEY will begin serving his federal sentence at the conclusion of a state prison term that he is serving for an unrelated offense.
This matter was investigated by the New Haven Police Department and is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Nashville Gang Member Sentenced to Fifteen Years in Prison for Witness Tampering Connected to A Shooting in Public HousingRead the Press Release
Michael Calloway a/k/a Oso, 21, of Nashville, Tenn., was sentenced Friday to serve 15 years in prison, after previously pleading guilty to being a felon in possession of ammunition, conspiracy to tamper with a witness and attempting to obstruct justice, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
According to the statement of facts, on the morning of April 12, 2015, Calloway and Laquanda Boyce were assaulting a woman at the J.C. Napier housing development when another person intervened and tried to protect the woman being assaulted. Later in the afternoon, Calloway and Boyce returned with Calloway carrying a firearm. Upon seeing the witness again, Calloway fired eight or nine shots at him, striking him once in the leg. The gunshot victim was treated at Vanderbilt Hospital and subsequently identified Calloway as the shooter.
Calloway was arrested the following day and learned that he would likely face federal firearms charges. He and Boyce then devised a scheme to pay the witness $1200 in exchange for his refusal to testify or for testifying that he had mistakenly identified Calloway as the person who had shot him.
Calloway and Boyce were subsequently indicted on witness tampering and obstruction charges.
In imposing the fifteen year sentence, United States District Judge Todd Campbell remarked that the offenses were serious and “goes to the heart of the criminal justice system” and that the fifteen year sentence was warranted by the egregious nature of the crime.
Laquanda Boyce, 33, also of Nashville, pleaded guilty on September 4, 2015, to conspiracy to tamper with a witness and will be sentenced on February 25, 2016.
This case was investigated by the Metropolitan Nashville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
Muskogee Man Sentenced to 30 Months for Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that STEVE ARBY CHANDLER, II, age 45, of Muskogee, Oklahoma, was sentenced to 30 months imprisonment, followed by 5 years of supervised release for FAILURE TO REGISTER AS SEX OFFENDER, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3).
The charge arose from an investigation by the Muskogee Police Department and the United States Marshals Service.
The Indictment alleges that from on or about April 3, 2014 until on or about July 3, 2014, in the Eastern District of Oklahoma, and elsewhere, STEVE ARBY CHANDLER, II, defendant herein, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Michigan on or about January 31, 1990, for the felony offense of Criminal Sexual Conduct 2nd Degree, traveled in interstate commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
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 defendant will remain in the custody of the United States Marshals Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Christopher Wilson represented the United States.
Milton man pleads guilty to possessing child pornographyRead the Press Release
HUNTINGTON, W.Va. – A Milton man faces up to 20 years in federal prison after pleading guilty today to possession of over 600 images of child pornography, announced Acting United States Attorney Carol Casto. Mark Allen Angle, 47, entered his guilty plea in federal court to the child pornography crime.
Angle admitted that on March 19, 2015, he possessed images of prepubescent minors engaged in sexual acts. The images were contained on his personal computer and multiple media devices found at his residence in Milton. The investigation revealed that Angle was using peer-to-peer file sharing programs to download, receive, and distribute child pornography. The court scheduled sentencing for May 31, 2016.
The West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, and the United States Department of Homeland Security, Homeland Security Investigations, conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution. The hearing was held before Chief United States District Judge Robert C. Chambers.
This case is being brought as part of the United States Attorney’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Mexican National Sentenced to Five Years for Trafficking Methamphetamine in New MexicoRead the Press Release
ALBUQUERQUE – Francisco Calvillo, 52, a Mexican national illegally residing in El Paso, Texas, was sentenced today in federal court in Las Cruces, N.M., to 60 months in prison for his methamphetamine trafficking conviction. Calvillo will be deported following his term of incarceration.
Calvillo was arrested in April 2015, after U.S. Border Patrol agents at the Border Patrol Checkpoint on I-25 in Doña Ana County, N.M., found a handgun in the vehicle’s center console and approximately .77 kilograms (1.7 pounds) of methamphetamine concealed under Calvillo’s clothes.
On Aug. 17, 2015, Calvillo pled guilty to a felony information charging him with conspiracy to possess methamphetamine with intent to distribute. Calvillo admitted that on April 10, 2015, he drove his car to the Border Patrol checkpoint on I-25 where agents found .77 kilograms of methamphetamine in the waistband of his pants. Calvillo further admitted that he conspired with others to transport the methamphetamine from Mexico into the United States.
This case was investigated by the U.S. Border Patrol and the DEA and was prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Mexican National Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Massiel Segoviano-Fierro, 24, a Mexican national illegally residing in the United States, pleaded guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge.
Segoviano-Fierro and his co-defendant Juan Carlos Nieblas-Ruelas, 27, also a Mexican national illegally residing in the United States, were arrested in Nov. 2015, and charged by criminal complaint with conspiracy and possession of methamphetamine with intent to distribute on Nov. 23, 2015, in Bernalillo Country N.M. The two men were arrested after Segoviano-Fierro attempted to sell approximately ten pounds of methamphetamine to an undercover law enforcement agent.
During today’s proceedings, Segoviano-Fierro pleaded guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering his guilty plea, Segoviano-Fierro admitted that on Nov. 23, 2015, in Bernalillo County, he attempted to sell methamphetamine to an individual who unbeknownst to him was an undercover law enforcement agent. Segoviano-Fierro further admitted that he collaborated with Nieblas-Ruelas to obtain approximately ten pounds of methamphetamine to sell and distribute in Albuquerque.
On Jan. 22, 2016, Nieblas-Ruelas plead guilty to a felony information charging him with possession of methamphetamine with intent to distribute and admitted that on Nov. 23, 2015, he retrieved methamphetamine from a trailer house in Albuquerque which he then gave to Segoviano-Fierro to distribute and sell in Albuquerque.
At sentencing, Segoviano-Fierro and Nieblas-Ruelas each face a maximum penalty of 20 years in federal prison and will be deported following their terms of incarceration. Both men remain in custody pending sentencing hearings which have yet to be scheduled.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the New Mexico State Police and is being prosecuted by Assistant U.S. Attorney David M. Walsh.
Mexican National Charged with Violating Federal Narcotics Trafficking Laws in New MexicoRead the Press Release
ALBUQUERQUE – Jose Tiburcio Hernandez-Aguilar, 57, a Mexican national, made his initial appearance today in federal court in Las Cruces, N.M., on a criminal complaint charging him with violating the federal narcotics trafficking laws. Hernandez-Aguilar remains in custody pending a preliminary hearing and a detention hearing which have yet to be scheduled.
Hernandez-Aguilar was arrested on Feb. 20, 2016, by the U.S. Border Patrol and the DEA for possession of methamphetamine with intent to distribute in Doña Ana County, N.M. The criminal complaint alleges that on that day, U.S. Border Patrol Agents allegedly found 14 bundles of methamphetamine weighing approximately 3.62 kilograms (eight pounds) in a hidden compartment in Hernandez-Aguilar’s vehicle.
If convicted of the crime charged in the criminal complaint, Hernadez-Aguilar faces a statutory minimum of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the U.S. Border Patrol and the Las Cruces office of the DEA and is being prosecuted by Assistant U.S. Attorney Luis Martinez of the U.S. Attorney’s Las Cruces Branch Office.
Man Sentenced to Federal Prison for Unlawfully Possessing Two HandgunsRead the Press Release
A man who stole two handguns and broke into five homes in Minnesota and Iowa was sentenced on February 16, 2016, to more than three years in federal prison.
Raymond Hochstetler, age 26, of Seymour, Iowa, received the prison term after a guilty plea of one count of possession of firearms by an unlawful drug user and one count of possession of stolen firearms.
In a plea agreement, Hochstetler admitted he was a regular user of marijuana and methamphetamine in April 2014. He further admitted that he stole two handguns in Minnesota, and then, on April 8, 2014, drove from Minnesota into Northern Iowa with the two guns and a juvenile girl. At the sentencing hearing, Hochstetler admitted that he also broke into five homes, three in Minnesota and two in Iowa during his April 8, 2014 trip. The judge at the sentencing hearing described Hochstetler’s trips as a “crime spree.”
Hochstetler was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Hochstetler was sentenced to 41 months’ imprisonment and fined $5,000. A special assessment of $200 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
The case was investigated by the Mitchell County Sheriff’s Office and the Iowa Division of Criminal Investigation.
The case was prosecuted by Special Assistant United States Attorney Fedline Ferjuste.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-cr-02025-LRR.
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Louisville Man Charged in the Shooting of A United States Postal CarrierRead the Press Release
Louisville, Ky. – A Louisville man appeared before U.S. Magistrate Judge Dave Whalin today, charged by Criminal Complaint with the assault of a United States Postal Carrier (while engaged in the performance of his official duties) and with the discharge of a firearm during the commission of a violent offense, announced United States Attorney John E. Kuhn, Jr.
Marcus Bennett, a/k/a MIZ, was arrested Saturday, February 20, 2016, and charged in a criminal complaint, that was unsealed today in federal court. The charges are in connection with the shooting of United States Postal Carrier Da’Ron Lester on February 10, 2016. According to an Affidavit by the United States Postal Inspection Service, in support of the complaint, Bennett was seated in the passenger seat of a 2009 Pontiac G8, when his brother, Eric Bennett, allegedly opened fire on Lester. Eric Bennett, 37, was arrested February 16, 2016, by Louisville Metro Police and charged in Jefferson County Circuit Court with attempted murder and first-degree assault. Marcus Bennett lives at a residence on South 38th Street in Louisville, which is in Lester’s postal delivery area. Lester was performing his official duties as a United States Postal Service (USPS) employee when he was shot multiple times on Dearborn Avenue in Louisville. At the time of the shooting, Lester indicated that he knew the person who shot him and subsequently stated to inspectors that he was shot by Eric Bennett. A search of Lester’s cell phone found a listing for MIZ (Marcus Bennett) in his contacts.
Marcus Bennett remains in federal custody with a bond hearing scheduled for Wednesday, February 24, 2016 before Magistrate Judge Whalin. Bennett faces a mandatory minimum sentence of ten years to life in prison for the charge of discharging a firearm during the commission of a violent offense and faces up to 20 years in prison for the assault of a federal employee while engaged in the performance of his official duties.
This case is being prosecuted by Assistant United States Attorneys Scott Davis and Marisa Ford, and the United States Postal Inspection Service (USPIS) is conducting the investigation.
The charge of a person by Criminal Complaint is an accusation only and that person is presumed innocent until and unless proven guilty.
Local Bingo Operators Charged with Fraud Conspiracy, Illegal Gambling Operation, and Money LaunderingRead the Press Release
PENSACOLA, FLORIDA – Larry L. Masino, 65, of Gulf Breeze, and Dixie L. Masino, 63, of Pensacola, were arraigned today in the U.S. District Court in Pensacola after a federal grand jury returned an indictment charging them with wire fraud conspiracy, operating an illegal gambling business, money laundering conspiracy, and money laundering. The indictment was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
The indictment alleges that, between 2006 and 2015, Larry and Dixie Masino conspired to defraud local charities out of millions of dollars. The Masinos operated Racetrack Bingo Inc. in Fort Walton Beach on behalf of a number of charitable organizations in Okaloosa County. According to the indictment, Racetrack Bingo Inc. was an illegal gambling business in violation of Florida law because the Masinos compensated themselves and their employees, instead of using bona fide charity members, to run bingo games. The indictment further alleges that the Masinos charged the charities grossly inflated lease fees. By law, those proceeds should have gone to the charities. The indictment also alleges that Larry and Dixie Masino conspired to launder more than $5.8 million in proceeds of their illegal bingo operation through the deposit of profit distribution checks from Racetrack Bingo Inc. The trial is scheduled for April 18, 2016.
This case resulted from a joint investigation by the Florida Department of Law Enforcement, the Internal Revenue Service—Criminal Investigation, the Federal Bureau of Investigation, and the Okaloosa County Sheriff’s Office. Assistant United States Attorney Alicia H. Kim is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The U.S. 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 U.S. 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]Loan Officer Pleads Guilty to Concealing Mortgage Fraud ConspiracyRead the Press Release
SACRAMENTO, Calif. — Christian Parada-Renteria, 40, of Woodland, pleaded guilty today to one count of concealing a widespread conspiracy to commit wire fraud and one count of concealing a mail fraud transaction in connection with a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.
According to court documents, Parada-Renteria was a loan officer at Delta Homes and Lending Inc., a Sacramento-based real estate and mortgage lending company. Delta Homes opened one office in 2003 and eventually had five offices in Sacramento and Woodland.
Between October 2004 and May 2007, Delta Homes’ founder and president Moctezuma Tovar, 46, and other real estate agents, loan officers, and loan processors engaged in a mortgage fraud conspiracy. Parada-Renteria, a loan officer, assisted the conspirators with loan applications that contained lies, including false statements regarding a borrower’s income, employment, rent history, credit rating, etc. Parada-Renteria concealed the scheme by taking steps to make sure the truthfulness of the loan applications and supporting documentation provided by Delta Homes was not questioned by the lenders.
According to the plea agreement, in August or September 2006, Parada-Renteria handled the loan file for the purchase of a Citrus Heights property. The borrower did not have sufficient funds required by the lender to fund the loan. Parada-Renteria concealed the fraudulent loan of $6,000 by a co-conspirator to the borrower that would inflate the borrower’s bank account balance so that the lender would fund the loan. Once the loan had closed, Parada-Renteria took the repayment from the borrower and reimbursed the co-conspirator from his own bank account.
The aggregate sales price of the homes involved in the conspiracy was in excess of $10 million, and as a result of the conspiracy, mortgage lenders and others suffered losses of at least $4 million.
Parada-Renteria is scheduled to be sentenced by Senior U.S. District Judge William B. Shubb on June 6, 2016, along with co-defendants, Tovar and Manuel Herrera, 36, both of Sacramento, Sandra Hermosillo, 53, of Woodland, and Jun Michael Dirain, 43, of Antelope, who have already pleaded guilty in this case. Parada-Renteria faces a maximum statutory penalty of six years in prison and a $500,000 fine. Each of the other defendants faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Co-defendants Jaime Mayorga, 36, and Ruben Rodriguez, 38, both of Sacramento, have a trial date of April 5, 2016. The charges against Mayorga and Rodriguez are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Jean M. Hobler and Brian A. Fogerty are prosecuting the case.