Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
7 April 2016
Mission Man Charged with Conspiracy to Distribute Methamphetamine and Marijuana and Possession of FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person.
Norman Lee Ritter, age 48, was indicted on March 15, 2016. He appeared before U.S. Magistrate Mark A. Moreno on April 1, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is at least 5 years, up to 40 years, in custody and/or a $5,000,000 fine, at least 4 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between February 1, 2015, and March 15, 2016, Ritter knowingly and intentionally combined, conspired, confederated and agreed with other persons to knowingly and intentionally distribute and possess with intent to distribute methamphetamine and marijuana in South Dakota. The Indictment further alleges that on or about September 17, 2015, in Todd County, Ritter knowingly possessed a firearm and was prohibited from doing so because he had previously been convicted of a felony, was a fugitive from justice, and was a user of and addicted to a controlled substance.
The charges are merely an accusation and Ritter is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, and Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Ritter was remanded to the custody of the U.S. Marshals Service pending trial. Trial has been set for June 7, 2016.
###
Metairie Man Sentenced to Six Years in Prison for Receipt of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALBERT J. DOYLE, JR., age 47, of Metairie, was sentenced today for crimes involving the sexual exploitation of children.
U.S. District Judge Eldon E. Fallon sentenced DOYLE to 72 months incarceration to be followed by ten years of supervised release. In addition, DOYLE was ordered to register as a sex offender under the Sex Offender Registration Notification Act.
According to court records, this investigation developed in April 2015 as a result of an undercover investigation conducted by the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”). After determining DOYLE was downloading images depicting the sexual victimization of children, HSI executed search warrants at DOYLE’s residences in Metairie and Baton Rouge. DOYLE was arrested during the execution of the search warrant after confessing to downloading and possessing images and videos depicting child pornography. HSI computer forensic examiners conducted a search of DOYLE’s seized computer equipment and located approximately 563 videos and 6,385 images depicting the sexual victimization of children on DOYLE’s electronic devices.
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."
U.S. Attorney Polite praised the work of the U. S. Department of Homeland Security-HSI in investigating this matter. Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba was in charge of the prosecution.
Maryland Men Indicted for Conspiracy to Transport Stolen GoodsRead the Press Release
Baltimore, Maryland – A federal grand jury indicted William Albert Engel, Jr., age 40, of Baltimore and Brian Nelson Halsey, age 42, of Westminster, Maryland, formerly of Dundalk, Maryland, on charges arising from a scheme to steal property from shopping mall kiosks and sell the stolen property online. The indictment was returned on March 29, 2016 and unsealed today upon the arrest of Halsey.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to the two-count indictment, from October 7, 2014 through July 30, 2015, the defendants conspired to steal property, including designer sunglasses, with a retail value of more than $500,000, and sell the items online. Specifically, the indictment alleges that Engel and others engaged in at least six thefts from shopping mall kiosks, stealing designer sunglasses and other items. Engel provided the stolen property to Halsey and others, who sold the property through an online market, then used the U.S. Postal Service to ship the stolen property to the buyers. The indictment alleges that Halsey provided proceeds from the sale of the stolen property to Engel and also helped to finance Engel’s travel and travel expenses to other states to commit thefts in order to obtain more property for sale.
The indictment alleges that Engel broke into kiosks and stores in shopping malls in Capre Girardeau and St. Louis, Missouri; Myrtle Beach and Florence, South Carolina; and Hagerstown, Maryland, stealing a total of 1,276 pairs of designer sunglasses and 18 luxury watches. Engel brought the stolen items back to Halsey in Maryland. On August 28, 2015, Halsey possessed 790 pairs of stolen designer sunglasses at his home in Maryland. Some of the sunglasses were traceable to thefts and burglaries allegedly committed by Engel in Missouri and South Carolina.
Engel and Halsey face a maximum sentence of five years in prison for the conspiracy and a maximum of 10 years in prison for transportation of stolen goods. Halsey had an initial appearance today in U.S. District Court in Baltimore and was detained pending a detention hearing scheduled for Tuesday, April 12, 2016 at 1:30 p.m. before U.S. Magistrate Judge Beth P. Gesner. No court appearance has been scheduled for Engel, who is in custody on related state charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended FBI and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Aaron S. J. Zelinsky, who is prosecuting the case.
Maryland Man Sentenced on Federal Heroin and Cocaine ChargeRead the Press Release
HARRISONBURG, VIRGINIA –A Maryland man, who authorities said was responsible for selling heroin that led to at least six overdoses in the Winchester, Virginia, area, three of which were fatal, was sentenced today in federal court, United States Attorney John P. Fishwick Jr. announced.
Christopher Rojuan Giles, a.k.a. “C” and “Charlie,” 28, of Randallstown, Maryland, previously pled guilty to a one count Information charging him with conspiracy to distribute more than 1,000 grams of heroin, which resulted in six overdoses, more than 280 grams of cocaine base (“crack”), and powder cocaine. Giles admitted that between February 2013 and October 2014, he and other members of the conspiracy conspired to distribute these drugs in and around Winchester, Virginia, and elsewhere, including West Virginia.
Today in the United States District Court for the Western District of Virginia in Harrisonburg, Giles was sentenced to 25 years in Federal prison.
“Heroin is destroying families and communities all across the Commonwealth and only through the type of cooperative law enforcement we are seeing in places like Winchester and up and down the Shenandoah Valley will we in the law enforcement community begin to make progress in putting an end to this tragic epidemic,” United States Attorney John P. Fishwick Jr. said today.
“This case is an example of what can be accomplished with the cooperative efforts of the Drug Enforcement Administration, the Northwest Virginia Regional Drug and Gang Task Force, and the United States Attorney’s Office,” Virginia State Police Supervisory Special Agent Jay Perry, coordinator of the Task Force, said. “The hundreds of investigative hours that were put into this case resulted in multiple convictions of heroin dealers both locally and from the Baltimore, Maryland area. Tragically, this investigation, like many others, began with a fatal overdose. Through the diligent efforts of investigators and prosecutors we were able to identify and target the larger scale dealers from Baltimore that were supplying our region.”
“The sentencing of Mr. Giles today ends a tragedy that played out in our communities in Western Virginia, affecting dozens of families and loved ones of his victims. Mr. Giles will now face the consequences of his actions. Prescription opioids like OxyContin and hydrocodone are fueling the demand for heroin. This addiction is tearing the fibers of communities, of our families, apart. This investigation is just one of many that exemplify drug law enforcement’s efforts to investigate and dismantle drug trafficking organizations, like Mr. Giles’ organization, responsible for fueling heroin addiction and overdose deaths,” said Special Agent in Charge of the Washington Field Division of the Drug Enforcement Administration, Karl C. Colder.
According to evidence presented at previous hearings by Assistant United States Attorney Elizabeth G. Wright, Giles, who operated in various locations in and around Baltimore, Maryland, was a major source of heroin for lower-level dealers and heroin users in the Winchester area. Evidence presented also proved that the heroin Giles distributed led to at least six heroin overdoses, including three fatal overdoses. The overdoses include the death of T.R.C. on November 17, 2013, the death of R.F.L. on March 19-20, 2014, the overdose of J.H.H. on March 21, 2014, the overdose of B.D.W. on April 5, 2014, the overdose of G.R.F. on September 5, 2014, and the death of B.E.W. on October 10, 2014.
As part of his plea, Giles specifically admitted he provided the heroin that led to the non-fatal overdoses of J.H.H. and B.D.W. and the fatal overdose of R.F.L., as noted above, in March and April 2014. Three other defendants, Colin Patrick Butler, 31, of Cross Junction, Virginia, David Josueh Medina, 35, of Cross Junction, Virginia, and Eric Keith Pennington, 33, of Middletown, Virginia, have previously been sentenced in federal court based upon the overdose of J.H.H. Two other defendants, Stephanie Diane Alkire, 23, of Winchester, Virginia, and Donna Jean Jenkins, 37, of Winchester, Virginia, have previously been sentenced in federal court based upon the overdose of B.D.W. Two other defendants, Scott Matthew Pierce, 45, of Stephens City, Virginia, and Brandy Dawn Kelly, 37, of Stephens City, Virginia, have previously been sentenced in federal court based upon the overdose of R.F.L.
One other defendant, Warren Evans, Jr., 39, of Windsor Mill, Maryland, has entered a plea of guilty to conspiracy to distribute more than 1,000 grams of heroin, more than 280 grams of crack, and powder cocaine, and conspiracy to distribute heroin that resulted in the fatal overdose of R.F.L. At sentencing, Evans faces a statutory penalty of between 20 years and life in prison.
The investigation of these cases was conducted by the Northwest Virginia Regional Drug and Gang Task Force and the Drug Enforcement Administration, Winchester Resident Office. The Task Force includes law enforcement from the counties of Frederick, Clarke, Shenandoah, Warren and Page as well as the cities and towns of Winchester, Front Royal and Strasburg, and the Virginia State Police. Assistant United States Attorney Elizabeth G. Wright prosecuted the cases for the United States.
Marrero Man Pleads Guilty to Theft of Government Funds Related to Hurricane KatrinaRead the Press Release
U.S. Attorney Kenneth A. Polite announced that PRENTISS MARTIN, age 51, of Marrero, pled guilty today to theft of government funds.
According to court documents, the Federal Emergency Management Agency (FEMA), an agency of the United States under the Department of Homeland Security, provided federal funds to the Hazard Mitigation Grant Program (HMGP), which provided grants to states and local governments to implement long-term hazard mitigation measures after a major disaster declaration.
MARTIN executed application documents with the HMGP to receive federal grant funds to reconstruct his house on Bay Street in New Orleans, Louisiana, which was damaged by Hurricane Katrina. In support of his HMGP Home Reconstruction Grant application, MARTIN submitted fraudulent documents. As a result of his fraudulent submissions, MARTIN accepted and received federal HMGP grant monies in the amount of $80,000 to reconstruct his house in New Orleans, Louisiana. When special agents from the U.S. Department of Homeland Security, Office of Inspector General traveled to MARTIN’s property on Bay Street, they observed a vacant lot.
MARTIN faces a maximum term of imprisonment of ten years, a fine of $250,000 and three years of supervised release following any term of imprisonment. U.S. District Judge Eldon E. Fallon set sentencing for July 21, 2016.
U.S. Attorney Polite praised the work of the Department of Homeland Security, Office of the Inspector General, in investigating this matter. Assistant United States Attorney Loan "Mimi" Nguyen is in charge of the prosecution.
Maple Heights man indicted for selling heroinRead the Press Release
A three-count indictment was filed charging a Maple Heights man with distributing heroin, said Acting U.S. Attorney Carole S. Rendon.
Rodney A. Haynes, 34, sold heroin on three occasions in the fall of 2015, according to the indictment.
Prosecutors are seeking to seize more than $12,000 in cash seized as part of the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Marisa Darden and Margaret Sweeney following an investigation by the Drug Enforcement Administration.
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.
Local Pizza Restaurant Owner Charged on Federal Child Exploitation ChargesRead the Press Release
St. Louis, MO – Loren Copp was charged in a criminal complaint alleging that he produced child pornography. He will appear for his initial appearance in federal court on Friday, April 8, 2016.
According to the affidavit filed with the criminal complaint, Copp owned and operated a business at 4601 Morganford Road, St. Louis, known as "Dojo Pizza." After multiple complaints that minor females were living there, law enforcement obtained state and federal search warrants, which were executed between November and December 2015. Multiple types of digital media were seized and analyzed and found to contain child pornography.
If convicted, production of child pornography carries a maximum penalty of 30 years in prison and/or fines up to $250,000. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
As is always the case, charges set forth in a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty
Letcher Father and Son Sentenced on Conspiracy and Tax CrimesRead the Press Release
United States Attorney Randolph J. Seiler announced that Theodore “Ted” J. Nelson, Jr., age 68, and his son, Steven A. Nelson, age 46, both of Letcher, South Dakota, were sentenced on April 4, 2016, for conspiracy to defraud the United States, failure to file income tax returns, and impeding the Internal Revenue Service.
U.S. District Judge Karen E. Schreier sentenced Theodore Nelson to seventy months in prison, and his son Steven Nelson to twelve months and one day in prison, and ordered to pay restitution jointly and severally in the amount of $1,842,102.14. In May 2015, they were found guilty of tax crimes as a result of a federal jury trial in Sioux Falls, South Dakota.
The Nelsons were indicted by a federal grand jury on July 9, 2013. Ted Nelson was charged with one count of conspiracy to defraud the United States, six counts of failure to file income tax returns, and one count of impeding the Internal Revenue Service. Steven Nelson was charged with one count of conspiracy to defraud the United States, seven counts of failure to file income tax returns, and one count of impeding the Internal Revenue Service.
The Nelsons inherited a family farm and business from Ted Nelson’s parents. They planted and sold grain, raised cattle, performed custom work for neighbors, ran hunting/lodging businesses, leased out their land, and sold some of the land.
The Internal Revenue Service placed a lien against Ted Nelson’s real estate in January 2004. After that time, the Nelsons created over 30 trusts, corporations, LLCs, and other entities, in an effort to hide their ownership of the farm and its income. Also in 2004, the Nelsons opened a series of bank accounts with themselves or another person as signors, using false tax identification numbers and Social Security numbers. Steve Nelson filed income tax returns through 1996 and Ted Nelson filed them through 1998, and then both stopped filing.
“The lesson learned from this case should be very clear,” said U.S. Attorney Seiler. “Regardless of how elaborate your strategy is, and no matter what you do for a living, if you intentionally dodge your responsibility to pay your fair share of taxes, federal prison will be a consequence of that decision.”
“As filing season comes to an end, the sentencings imposed on the Nelson’s should send a message to those taxpayers who are thinking about participating in fraudulent tax schemes," said Shea Jones, Special Agent in Charge of the St. Paul Field Office. "The sentencings of Theodore Nelson and Steven Nelson again emphasizes that the Internal Revenue Service and U.S. Attorney’s office will continue their aggressive pursuit of those who would attempt to defraud America's tax system."
This case was investigated by the Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorneys John E. Haak and Ann M. Hoffman prosecuted the case.
Steven Nelson was ordered to self-surrender to the U.S. Marshals Service on April 18, 2016. Ted Nelson, who was remanded to the custody of the U.S. Marshals Service after trial, remains in custody.
# # #
Leader of Major Drug Trafficking Ring and Seven Co-Conspirators Sentenced to PrisonRead the Press Release
STATESVILLE, N.C. – One of the leaders and seven co-conspirators of a major drug ring responsible for trafficking more than 450 kilograms of cocaine to Western North Carolina and funneling millions in drug proceeds back to Mexico were sentenced earlier this week, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Richard L. Voorhees presided over the sentencing hearings.
The eight men sentenced on Monday and Tuesday in federal court in Statesville are:
-
David Maldonado-Rendon, 33, of Mexico – Sentenced to 210 months and five years of supervised release.
-
Pedro Maldonado-Sanchez, 24, of Mexico – Sentenced to 87 months and five years of supervised release.
-
Larry Woodley, 26, of Landon, S.C. – Sentenced to 66 months and three years of supervised release.
-
Juan Pablo Diaz-Herrera, 26, of Troutman, N.C. – Sentenced to 57 months and three years of supervised release.
-
Germaine Woodley, 42, of Waxhaw, N.C. – Sentenced to 48 months and three years of supervised release.He was also ordered to forfeit $1.2 million in drug proceeds.
-
Miguel Ibarra-Espinoza, 35, of Mexico – Sentenced to 46 months and five years of supervised release.
-
Alberto Pedraza, 56, of Farmville, N.C. – Sentenced to 46 months and three years of supervised release.
-
Brian Maldonado-Reyes, 22, of Madera, California – Sentenced to eight months and three years of supervised release.
Three more main participants of the drug conspiracy, Fortino Maldonado-Guillen, James Davis, and the drug ring’s co-leader Maria Abernethy, aka Rosy Maldonado, will be sentenced on June 8, 2016. Two other indicted co-conspirators, Saloman Maldonado and Saul Maldonado-Guillen, aka Valeria Maldonado-Guillen, remain fugitives. Over the course of the investigation, law enforcement also seized approximately $750,000 in U.S. currency, six vehicles and five properties.
According to filed documents and statements made during court proceedings:
Over the course of the conspiracy, which lasted from about 2010 to about November 2014, David Maldonado, at first working with his uncle, Fortino Maldonado, and later with his wife, Rosy Maldonado, established a drug trafficking operation responsible for distributing approximately 450 kilograms of cocaine to Western North Carolina, South Carolina and elsewhere. James Davis, Germaine Woodley and his brother, Larry Woodley, were David Maldonado’s main buyers. At different times, the remaining co-conspirators operated as drivers, or “drug mules,” for the drug conspiracy.
February to July 2011 – David Maldonado and Fortino Maldonado
From about February 2011, David Maldonado and Fortino Maldonado began trafficking cocaine that Fortino Maldonado obtained from a source in Virginia. The two men trafficked between two and 10 kilograms of cocaine at a time, and resold it mainly to James Davis, Germaine and Larry Woodley and other local cocaine dealers. Between February and July 2011, David and Fortino Maldonado trafficked approximately 100 kilograms of cocaine and received approximately $3.2 million in drug proceeds.
December 2011 to November 2014 – David Maldonado and Rosy Maldonado
In or about December 2011, David Maldonado and his wife, Rosy Maldonado, began trafficking large amounts of cocaine supplied by a source in Mexico known to Rosy Maldonado. From about December 2011 to about November 2014, David and Rosy Maldonado and their co-conspirators trafficked approximately 350 kilograms of cocaine and received more than $11 million in drug proceeds. David and Rosy Maldonado funneled most of the drug proceeds back to Mexico, after keeping a portion of the money for running the drug conspiracy.
Over the course of the conspiracy, Rosy and David Maldonado made multiple trips to Texas to pick up the packaged cocaine from their Mexican supplier, which they transported back to North Carolina hidden in compartments the pair had installed in numerous vehicles. These secret compartments were located at different areas of the vehicles, depending on the type of car used, including under the front passenger seat, the rear bench seat, the vehicle’s truck bed and elsewhere. Some of the hidden compartments were large enough to transport as much as 19 kilograms in a single trip. Each time the pair picked up the packaged cocaine from Texas, they delivered large cash payments to their Mexican supply source. For example, between August and November 2012, the pair transported approximately 65 kilograms of cocaine from Texas and delivered approximately $1.7 million in U.S. currency.
Sometime after September 2013, Rosy and David Maldonado hired Juan Pablo Diaz-Herrera and Brian Maldonado-Reyes as drivers for the conspiracy. Juan Diaz and Brian Maldonado began transporting the cocaine and cash to and from Texas in the same manner. The conspiracy began to unravel when, in November 2013, law enforcement in Gulfport, Mississippi stopped the vehicle Juan Diaz and Brian Maldonado were driving to Texas, seizing more than $392,000 in cash.
“This highly active drug ring was responsible for trafficking hundreds of kilos of cocaine to the area,” said U.S. Attorney Rose in making today’s announcement. “I want to thank the multiple law enforcement agencies in North Carolina and other states for their hard work over the course of this investigation. Working with our law enforcement partners, we effectively traced and dismantled this poisonous pipeline of cocaine that has undoubtedly destroyed many lives and has affected the families of those addicted to the drug.”
In addition to the prison terms, the Judge Voorhees ordered David Maldonado, Pedro Maldonado and Miguel Ibarra to be deported to Mexico upon completion of their respective prison terms. All federal sentences are served without the possibility of parole.
The case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement, U.S. Attorney Rose thanked the multiple agencies involved in this case for their investigative efforts and assistance in dismantling this major drug trafficking ring. Specifically, U.S. Attorney Rose commended the work of the Drug Enforcement Administration (DEA); the Internal Revenue Service, Criminal Investigation Division; the United States Marshals Service; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Matthews Police Department; the Pineville Police Department; the Monroe Police Department; the Gastonia Police Department; the Charlotte-Mecklenburg Police Department; the Cornelius Police Department; the Gaston County Sheriff’s Office; the Union County Sheriff’s Office; the Iredell County Sheriff’s Office; the Beaufort County Sheriff’s Office; the Gilford County Sheriff’s Office; the Charleston County Sheriff’s Office; the Mississippi Highway Patrol; and the Gulf Coast High Intensity Drug Trafficking Area (HIDTA) Intelligence Center.
Assistant U.S. Attorney Elizabeth Greene led the prosecution for the U.S. Attorney’s Office. Assistant U.S. Attorney Sanjeev Bhasker handled the sentencings of the defendants.
-
Lawton Resident, Douglas Scott Wolhuis, Sentenced for Hoax Bomb and Anthrax Bank RobberiesRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr., announced today that Douglas Scott Wolthuis, 51, of Lawton, was sentenced to 54 months in prison by U.S. District Judge Robert Holmes Bell. He will be supervised for two years after he is released, and he was ordered to pay restitution and a fine. Wolthuis pled guilty to one count of bank robbery in December pursuant to a plea agreement under which the second count of bank robbery was to be dismissed.
In April 2015, Wolthuis robbed a Fifth Third Bank branch in Kalamazoo. In June 2015,he robbed a Chase Bank branch in Battle Creek. He concealed his identity for both robberies, including with a mask, and passed demand notes. For the first robbery, he claimed in his demand note that he had a bomb. For the second robbery, he claimed in his note that he had anthrax. When he was arrested a short time after the second robbery, responding officers found a clear container of white powder in his vehicle. Biohazard response teams secured the scene, shutting down traffic for hours, until they confirmed that the substance was not a biological weapon.
“Armed bank robberies are extremely dangerous, even when robbers use hoax weapons, because of the law enforcement response that is necessarily provoked,” U.S. Attorney Miles said. “I am very grateful for the work of the Michigan National Guard, the Kalamazoo County Sheriff’s Department (“KCSD”), the Battle Creek Police Department (“BCPD”), the Battle Creek Fire Department, and the Federal Bureau of Investigation (“FBI”) in addressing this potential hazard to the public’s health and safety. It instills confidence that we are prepared should we ever face such a threat.” U.S. Attorney Miles also praised the BCPD officer whose quick response to the Chase robbery led to the apprehension of Wolthuis.
“Mr. Wolthuis’s crimes go beyond the financial theft,” said David P. Gelios, Special Agent in Charge, FBI Detroit. “His claims of having various weapons of mass destruction disrupted the public and necessitated the emergency response of numerous community resources, including those of the BCPD, the BCFD, and their Hazardous Response Team, and the Michigan National Guard’s 51st Civil Support Battalion, as well as the FBI’s Weapons of Mass Destruction Coordinator. The response of each of these organizations was outstanding and critical to law enforcement’s ability to solve this case.”
The FBI, the KCSD, and the BCPD investigated the robberies. Assistant U.S. AttorneyJustin M. Presant prosecuted the case.
END
KC Restaurant Owner Pleads Guilty to $566,000 Tax SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a Kansas City, Mo., restaurant pleaded guilty in federal court today to filing a false tax return as part of a scheme to avoid paying more than $566,000 in corporate taxes.
Roger Geisler, 67, of Lenexa, Kan., waived his right to a grand jury and pleaded guilty before U.S. District Judge Dean Whipple to a federal information that charges him with filing a false tax return.
Geisler has owned and operated two restaurants in Kansas City, Mo. – Domo Sushi bar and Grill in the Brookside area and Matsu Japanese Restaurant (from 1980 to 2010) in the Westport area.
Geisler admitted that, for tax years 2007, 2008 and 2009, he signed and submitted corporate returns for his company, Lee’s Pacific Foods, that underreported his restaurants’ gross receipts. The total unreported income for those tax years totaled $2,297,013. As a result of Geisler’s omissions, the amount of tax due and owing totaled $402,860.
In addition to the 2007 to 2009 income taxes, Geisler admitted that he failed to report and pay over employment taxes from 2007 to 2010. A conservative calculation of employment tax due totals $163,268, bringing the total loss from the overall scheme to $566,128.
Geisler also admitted that he did not file individual tax returns for 2007 through 2010.
After Geisler was contacted by the IRS, his accountant asked him how he thought he would get away with not reporting business income and payroll taxes. Geisler responded “I thought I would be dead before they caught on.”
Geisler spent at least $156,988 in business funds on personal expenses, including a home in Lenexa and a 2004 Lexus SUV. Geisler admitted he has a large gambling problem and gambled extensively at area casinos. For example, he gambled $159,706 in 2007 (at Argosy and Isle of Capri.) In 2010, Geisler gambled $290,175 at the 7th Street Casino.
Under federal statutes, Geisler is subject to a sentence of up to three years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by IRS-Criminal Investigation.
Justice Department Settles with Indiana Doctor over Discrimination Against an Individual with HIVRead the Press Release
The Justice Department filed a lawsuit and consent decree today to resolve allegations that Pain Management Care P.C., of South Bend, Indiana, refused to treat an individual because he has HIV, in violation of Title III of the Americans with Disabilities Act (ADA).
The department’s investigation found that the individual had sought interventional pain management treatment through anesthesiologist and pain management specialist Dr. Joseph Glazier. An employee of Pain Management Care informed the individual that Glazier would not treat him “due to [his] condition of being HIV positive.” Title III of the ADA prohibits public accommodations, such as healthcare providers, from discriminating against people with disabilities, including HIV.
Under the consent decree, which still must be approved by the court, Pain Management Care P.C. will develop a non-discrimination policy, provide ADA training to its employees, submit annual reports to the United States, pay $20,000 to the complainant in monetary damages and $10,000 in civil penalties to the United States.
“The Justice Department is committed to eradicating discrimination resulting from the unfounded fear and dangerous stereotype that someone with HIV would pose a threat to a medical provider,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Discrimination by those in the medical profession breaks a trust critical to ensuring access to appropriate treatment for all.”
This settlement is part of the department’s Barrier-Free Health Care Initiative, a partnership of the Civil Rights Division and U.S. Attorney’s Offices across the nation to target enforcement efforts in a critical area for individuals with disabilities: access to health care. For more information on the Barrier-Free Health Care Initiative visit http://www.ada.gov/usao-agreements.htm.
For more information on the ADA, HIV discrimination and this lawsuit, visit www.ada.gov/aids. Those interested in finding out more about the obligations of healthcare providers under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed by email to [email protected].
The relevant court documents can be found at the following links: complaint and consent decree.
Jerome Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOISE – Patrick Lee Jewell, 34, of Jerome, Idaho, pleaded guilty today in United States District Court to possession of child pornography, U.S. Attorney Wendy J. Olson announced. Jewell pleaded guilty to a one count information filed by the U.S. Attorney on January 21, 2016.
According to the plea agreement, Jewell admitted utilizing his e-mail account to communicate with an individual through Craigslist regarding the exchange of images of child pornography in November and December of 2013. In February of 2014, agents with the Department of Homeland Security executed search warrants at Jewell's residence in Jerome, Idaho, and for his e-mail accounts. Additionally, Jewell admitted possessing 61 images of child pornography in his e-mail account, and five images of child pornography on his iPhone.
Sentencing is set for June 28, 2016, before Chief U.S. District Judge B. Lynn Winmill.
Possession of child pornography is punishable by up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life, and a $100 special assessment. As part of his plea, Jewell also agreed to forfeit an iPhone and a Samsung laptop computer used in the commission of the charged offense.
The case was investigated by the U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), the Jerome County Sheriff's Office, and the Jerome Police Department, and 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.”
Jamaican Man Charged in Lottery Fraud SchemeRead the Press Release
NEWARK, N.J. – A Jamaican man was charged today with defrauding residents of the United States and Canada by allegedly tricking them into believing they had won multimillion-dollar lotteries and sweepstakes, U.S. Attorney Paul J. Fishman announced.
Ricardo Reid, 30, of Jamaica, West Indies, was indicted by a federal grand jury on one count of conspiracy to commit mail and wire fraud. He will be arraigned at a date to be determined.
According to the indictment:
Reid and others would target their victims by purchasing client lists of elderly and vulnerable individuals from brokers specializing in such information. Reid and his conspirators would initiate contact with the victims by telephone calls from Jamaica and falsely represent themselves to be lottery officials, bankers, or IRS agents.
Reid and his conspirators would then falsely inform the victims that they had won millions of dollars in a lottery or sweepstakes, but in order to redeem these winnings, they had to pay registration and/or other fees and taxes. Reid and his conspirators would direct the victims to pay the bogus fees using several methods, including mailing cash or money orders to other victims or to other members of the conspiracy in the United States. The money was then either smuggled to Jamaica or deposited into United States bank accounts and withdrawn from ATMs located in Jamaica. In other instances, the victims were directed to either wire the bogus fees through Western Union or Money Gram directly to Jamaica.
Reid and his conspirators would generally direct the victims to make repeated payments of fees until either the victim’s funds were depleted or, after realizing they had been scammed, the victims refused to make additional payments. At times, Reid and his conspirators induced and caused the victims to liquidate assets in order to pay the bogus fees.
Reid and his conspirators would conceal their identities using various methods, including aliases like “Robert Gates,” “Mr. Bogohazian,” “Damien Boswell,” “Mr. Washington,” and “Mark Anderson,” and the use of call forwarding and Magic Jack to make and receive calls while masking their phone number and location.
The alleged victims include an 88-year-old resident of Arkansas who lost $110,932; a 57-year-old New Jersey resident who lost $249,394; a 76-year-old Canadian resident who lost $71,919; and a 74-year-old resident of Puerto Rico, who lost $64,433.
The conspiracy count with which Reid is charged carries maximum punishment of 20 years in prison and a fine of up to $250,000.
U.S. Attorney Fishman credited special agents of the Homeland Security Investigations, under the direction of Special Agent in Charge Terence Opiola in Newark; and the U.S. Postal Inspection Service, under the direction of Acting Postal Inspector in Charge James Ball, with the investigation leading to today’s indictment.
The USPIS is warning older Americans and caregivers to beware foreign lottery or sweepstakes schemes. No legitimate sweepstakes or lottery will ask for fees or taxes to be paid in order to claim a prize. Anyone contacted to play a foreign lottery or sweepstakes should follow these tips:
• Don’t give out personal or financial information to anyone over the Internet or phone;
• Never wire or send money to anyone, anywhere who says you’ve won a foreign lottery or sweepstakes;
• Don’t be pressured into making an immediate decision;
• Never purchase anything until you get all the information in writing.
• Visit deliveringtrust.com for helpful information on protection from fraud.
Mail fraud can be reported online at: www.postalinspectors.uspis.gov or by phone at 1-877-876-2455.
Defense counsel: K. Anthony Thomas Esq. Assistant Federal Public Defender, Newark
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Ostby in Billings on April 6, 2016 and entering pleas of Not Guilty were:
- FRANK E. BARNES, a 35-year-old resident of Billings, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, BARNES faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 16-25
- DARRELL DUANE BAUMGARTNER, a 43-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charge contained in the indictment, BAUMGARTNER faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 16-31
- ROPER RAY BLANKENSHIP, a 22-year-old resident of Miles City, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, BLANKENSHIP faces life in prison, $5,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 16-07
- DERRICK LEE DEAN MOORE, a 31-year-old resident of Cartwright, North Dakota, appeared on charges of unlawful possession of a firearm and possession of a firearm by a person under a domestic order. If convicted of the most serious charge contained in the indictment, MOORE faces 10 years in prison, $250,000 in fines and 3years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 16-17
Appearing before U.S. Magistrate Ostby in Billings on April 5, 2016 and entering pleas of Not Guilty were:
- ANTJUAN MARIO BROWN, a 44-year-old transient, appeared on charges of failure to register as a sex offender. If convicted of the charge contained in the indictment, BROWN faces 10 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference. 16-08
- JONATHAN GRIMALDO CASTRO, a 23-year-old resident of Billings, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, CASTRO faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-120
Appearing before U.S. Magistrate Lynch in Missoula on April 5, 2016 and entering pleas of Not Guilty were:
- CHRISTOPHER ISSAC COX, a 25-year-old resident of Butte, appeared on charges of felon in possession of a firearm and possession of stolen firearms. If convicted of the most serious charge contained in the indictment, COX faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 16-07
Appearing before U.S. Magistrate Johnston in Great Falls on April 5, 2016 and entering pleas of Not Guilty were:
- JASON CHAULK, a 40-year-old resident of Columbia Falls, appeared on charges of theft of government property. If convicted of the charge contained in the information, CHAULK faces 1 year in prison, $100,000 in fines and 1 year supervised release. The case was investigated by the National Park Service. PACER Case Reference. 16-13
Appearing before U.S. Magistrate Ostby in Billings on March 31, 2016 and entering pleas of Not Guilty were:
- SHAWNA RAE WILSON, a 36-year-old resident of Garryowen, appeared on charges of assault with a dangerous weapon and use and discharge of a firearm during and in relation to a crime of violence. If convicted of the most serious charge contained in the indictment, WILSON faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 16-36
Appearing before U.S. Magistrate Johnston in Great Falls on March 31, 2016 and entering pleas of Not Guilty were:
- SUNDOWN WILLIAM NELSON, a 38-year-old resident of Great Falls, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the charge contained in the indictment, NELSON faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Homeland Security Investigations and Russell Country Drug Task Force. PACER Case Reference. 16-23
Appearing before U.S. Magistrate Johnston in Great Falls on March 29, 2016 and entering pleas of Not Guilty were:
- BRIAN KELLY EAGLEMAN, a 53-year-old resident of Box Elder, appeared on charges of conspiracy to defraud the Chippewa Cree Tribe, scheme to defraud the Chippewa Cree Tribe/wire, and theft from and Indian tribal organization. If convicted of the most serious charges contained in the indictment, EAGLEMAN faces 20 years in prison, $250,000 in fines and years supervised release. The case was investigated by the U.S. Department of Interior Office of Inspector General, U.S. Department of Health and Human Service Office of Inspector General, Internal Revenue Service, and the Federal Bureau of Investigation. PACER Case Reference. 16-22
- KEVIN DAVID McGOVERN, a 46-year-old resident of Billings, appeared on charges of conspiracy to defraud the Chippewa Cree Tribe, scheme to defraud the Chippewa Cree Tribe/wire, and bribery/offering. If convicted of the most serious charges contained in the indictment, McGOVERN faces 20 years in prison, $250,000 in fines and years supervised release. The case was investigated by the U.S. Department of Interior Office of Inspector General, U.S. Department of Health and Human Service Office of Inspector General, Internal Revenue Service, and the Federal Bureau of Investigation. PACER Case Reference. 16-22
Appearing before U.S. Magistrate Lynch in Missoula on March 29, 2016 and entering pleas of Not Guilty were:
- NICHOLAS RICHARD AXELBERG, a 36-year-old resident of Lakeside, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, AXELBERG faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Missoula HIDTA and the Drug Enforcement Administration. PACER Case Reference. 16-11
Appearing before U.S. Magistrate Ostby in Billings on March 28, 2016 and entering pleas of Not Guilty were:
- WENDY REINHOLZ, a 59-year-old resident of Molt, appeared on charges of misappropriation of postal funds. If convicted of the charge contained in the indictment, REINHOLZ faces 10 year in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Postal Service Office of Inspector General. PACER Case Reference. 16-20
Appearing before U.S. Magistrate Johnston in Great Falls on March 24, 2016 and entering pleas of Not Guilty were:
- AARON DOUGLAS WILCOX, a 44-year-old resident of Great Falls, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the charge contained in the indictment, WILCOX faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Homeland Security Investigations and Russell Country Drug Task Force. PACER Case Reference. 16-23
Appearing before U.S. Magistrate Ostby in Billings on March 24, 2016 and entering pleas of Not Guilty were:
- JESSE MARIO GONZALEZ, a 38-year-old resident of Billings, appeared on charges of prohibited person in possession of a firearm. If convicted of the charge contained in the indictment, GONZALEZ faces 10 year in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 16-32
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Henrico Man Sentenced for Selling High Capacity FirearmsRead the Press Release
RICHMOND, Va. – Nassau Isiah Lucas, 26, of Henrico County, was sentenced today to 140 months in prison for possessing a high capacity firearm while being a convicted felon.
Lucas was found guilty after a jury trial on Dec. 30, 2015. According to court documents and evidence presented at trial, Lucas possessed a 9-millimeter semi-automatic pistol and a 7.62 millimeter semi-automatic rifle when he sold them in August 2014 and September 2014. During the two-day jury trial, evidence was presented that Lucas, a convicted felon, possessed and then sold the firearms to individuals he believed were gun runners who would sell the firearms in New York In fact, the individuals were undercover police officers with the Richmond Police Department.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael F. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Alfred Durham, Chief of the Richmond Police Department; and Douglas A. Middleton, Chief of Henrico County Police Department, made the announcement after sentencing by U.S. District Judge Robert E. Payne. Assistant U.S. Attorney David T. Maguire 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-077.
Grand Jury Indicts Five in Meth, Firearms CasesRead the Press Release
Rock Island, Ill. - A federal grand jury has returned indictments charging five individuals in separate cases in the Central District of Illinois, as announced by U.S. Attorney Jim Lewis. The indictments had remained sealed pending the defendants’ arrests and court appearances. Alejandro Lopez appeared before U.S. Magistrate Judge Jonathan E. Hawley on Friday, April 1, 2016, in Peoria, and the other four defendants appeared today before U.S. Magistrate Judge Stephen B. Jackson, Jr. in Rock Island. After the hearings, all five defendants were remanded to the custody of the U.S. Marshal.
Kirk Curtis Bryner, 61, of the 200 block of North Street, Neponset, Ill., is charged with unlawful possession of a short-barreled shotgun on Jan. 1, 2016, and possession of a firearm after having been previously convicted of a felony offense. If convicted of both charges, the statutory maximum penalty is 20 years in prison.
Dimitri Miles Lopez, 28, of the 600 block of Cole Street, Kewanee, Ill., is charged with unlawful possession of a short-barreled shotgun on Dec. 2, 2015; possession of a firearm after having been previously convicted of a felony offense; possession of a firearm in furtherance of a drug trafficking crime; possession with intent to distribute methamphetamine; and distribution of methamphetamine on June 18, 2015 and July 13, 2015. If convicted of all charges, the statutory maximum penalty is life in prison.
Alejandro M. Lopez, 30, of the 700 block of 12th Street, Moline, Ill., is charged with possession with intent to distribute methamphetamine and distribution of methamphetamine on Dec. 1, 2015. If convicted of both charges, the statutory maximum penalty is 60 years in prison.
Heath Aaron Petty, 28, of the 300 block of Olive Street, Toulon, Ill., is charged with possession with intent to distribute methamphetamine on Nov. 25, 2015 and on Dec. 3, 2015; and unlawful possession of a hand gun on Dec. 3, 2015, after having been previously convicted of a felony offense. If convicted of all charges, the statutory maximum penalty is life in prison.
Kristina Rachel Johnson, 26, of the 600 block of 11th Street, Kewanee, Ill., is charged with possession with intent to distribute methamphetamine on Jan. 11, 2016. If convicted, the statutory maximum penalty is life in prison.
The charges are the result of investigations by the Illinois State Police’s Blackhawk Area Task Force, the Kewanee Police Department, the Henry County Sheriff’s Office, the Bureau County Sheriff’s Office, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Glendale Tax Return Preparer Arrested on Federal Fraud ChargesRead the Press Release
LOS ANGELES – The operator of a Glendale tax preparation business was arrested this morning on charges that he defrauded customers of his tax preparation business by diverting their tax refunds into his own bank accounts.
Michael Joseph Calalang Cabuhat, 40, a resident of the Hollywood Hills West neighborhood of Los Angeles, who refers to himself in online postings as “celebritytaxguy,” was arrested by special agents with IRS Criminal Investigation and the United States Treasury Inspector General for Tax Administration (TIGTA).
This morning’s arrest was made pursuant to a criminal complaint that charges Cabuhat with wire fraud, aggravated identity theft and structuring financial transactions to evade reporting requirements.
“Corrupt tax return preparers harm their clients, other taxpayers, and the United States government,” said United States Attorney Eileen M. Decker. “Mr. Cabuhat’s clients entrusted him with an important duty that we all have at this time of year, and he abused that fundamental trust.”
Cabuhat is half-owner of VisionQwest Resource Group, Inc., which operates VisionQwest Accountancy Group and Icon Tax Group, Inc., in Glendale. According to a 36-page affidavit filed in the case, Cabuhat defrauded his clients in at least two ways.
In some instances, the taxpayer-client was given a copy of a tax return that showed a much smaller refund amount than on the tax return that Cabuhat actually filed with the IRS on behalf of the taxpayer, according to the affidavit. Sometimes, Cabuhat would simply increase the amount of tax owed on the taxpayer’s copy of the return, thereby decreasing the refund; and sometimes he would manipulate the expenses reported on the filed returns to increase the refund. Without the taxpayer’s knowledge, Cabuhat directed the IRS to deposit the small amount reflected on the taxpayer’s copy of the tax return into the taxpayer’s bank account, and to deposit the remainder into a bank account that Cabuhat controlled.
In other instances, according to the complaint, Cabuhat gave the taxpayer-client a copy of a tax return that falsely showed a tax due, but Cabuhat would file with the IRS a tax return that sought a refund. In these instances, Cabuhat would tell the taxpayer to make the “tax payment” directly to him so he could remit the payment to the IRS. In fact, Cabuhat allegedly kept the “tax payment” and directed the IRS to deposit the refund that the client should have received into a bank account that he controlled.
From 2010 through 2015, Cabuhat allegedly used this scheme to steal more than $1.2 million in refunds that should have gone to 144 clients,
In addition to the tax refund scheme, in September of 2014, Cabuhat structured cash deposits to avoid federal bank reporting requirements. Specifically, Cabuhat structured a $29,700 cash deposit into three separate transactions of $9,900 over seven days, allegedly to evade the reporting requirement triggered by cash transactions of more than $10,000. On the day after these structured transactions were completed, Cabuhat wrote a $24,500 check to purchase a Ferrari 360 Spider. That vehicle was seized today by federal agents.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
Cabuhat is expected to make his initial appearance this afternoon in United States District Court.
If convicted of the charges in the complaint, Cabuhat would face a statutory maximum sentence of 27 years in federal prison.
Return preparer fraud is one of the Internal Revenue Service’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. Additional information about and enforcement efforts by the United States Department of Justice may be found on the Tax Division’s website.
Franklin County Man Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – Stuart B. Millner was charged yesterday in connection with an alleged scheme to defraud clients and financial institutions in connection with the operation of his auction business, Stuart B. Millner & Associates (SBMA), and related entities.
According to the indictment, SBMA was engaged in the business of appraising, marketing, liquidating and auctioning assets from industrial and commercial facilities. SBMA entered into contracts with several clients to conduct auctions to sell their property and collect the proceeds from the sales, for which SBMA would receive a commission. But according to the indictment, Millner caused SBMA to misdirect sales proceeds that should have been held by SBMA for the benefit of its clients and to direct those proceeds to pay company expenses and debts owed by the company to previous clients. The indictment charges that this "Ponzi-like" activity violated several federal laws, including statutes criminalizing mail fraud and wire fraud.
The indictment also alleges that Millner caused SBMA to falsely report to customers that auctioned items had sold for less than they had in fact sold for, a misrepresentation that was designed to conceal Millner’s fraudulent activities. Millner is also accused of having made an application for loans on behalf of two other companies in which he submitted false financial statements. As a result of these activities, Millner is alleged to have caused at least $2.5 million in losses to clients and obtained in excess of $6 million in fraudulent loans from financial institutions.
Millner, Union, MO, was indicted by a federal grand jury late Wednesday on three felony counts of bank fraud, one felony count of mail fraud affecting a financial institution, four felony counts of wire fraud and two felony counts of mail fraud.
If convicted, each count of bank fraud and mail fraud affecting a financial institution carries a maximum penalty of 30 years in prison and/or fines up to $1 million; each of the other counts carry a maximum of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case is being investigated by the Federal Bureau of Investigation. Assistant United States Attorney Richard E. Finneran is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Former Nurse Sentenced for Stealing Narcotics from HospitalRead the Press Release
BOSTON – A former nurse at Baystate Franklin Medical Center in Greenfield, Mass. was sentenced today in U.S. District Court in Springfield for stealing pain medication from the hospital’s automated drug dispensing machine.
Daniel Herlocker, 41, of Brattleboro, Vt., was sentenced by U.S. District Court Judge Mark G. Mastroianni to two years of probation, including three months of home confinement. In January 2016, he pleaded guilty to acquiring and obtaining controlled substances by deception and subterfuge.
In the fall of 2014, while Herlocker was employed as a nurse at Baystate Franklin Medical Center, he diverted Dilaudid, also known as hydromorphone, and morphine from sterile cartridge units known as carpujects. The carpujects were stored in an automated drug dispensing machine. Herlocker syphoned the drugs from the carpujects with sterile needles and replaced the medications with sterile saline solution.
This case was brought as part of the federal response to the growing opioid abuse epidemic in Massachusetts and other New England states. Theft of controlled substances by medical professionals not only puts patients at risk when they are deprived of their medication, but also fuels the pipeline of illegal prescription opioids
United States Attorney Carmen M. Ortiz; Russell Hermann, Acting Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Monica Bharel, MD, MPH, Commissioner of the Massachusetts Department of Public Health, Division of Food and Drugs, Drug Control Program, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Branch Office.
Former Hedge Fund Manager Sentenced to 15 Years’ Imprisonment for Wire Fraud, Money Laundering, and Contempt of CourtRead the Press Release
SAN FRANCISCO – James Murray was sentenced to 15 years in prison announced U.S. Attorney Brian J. Stretch, FBI Special Agent in Charge David J. Johnson, and U.S. Secret Service Special Agent in Charge David Thomas. The sentence, handed down late yesterday, follows a jury conviction for 23 felonies—including wire fraud, money laundering, and aggravated identity theft—and contempt of court.
Murray, 47, formerly of Larkspur, was the sole member and investment advisor of Market Neutral Trading, LLC (MNT), a purported hedge fund. MNT’s marketing materials claimed the fund was audited by Jones, Moore & Associates (JMA), a sham entity that Murray started and controlled. After being charged in a criminal complaint with wire fraud in February of 2012, Murray was charged on March 17, 2015, in a fourth superseding indictment with 23 felonies including 16 counts of wire fraud, in violation of 18 U.S.C. § 1343; 4 counts of engaging in money transactions in criminally derived property, in violation of 18 U.S.C. § 1957; 2 counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1); as well as contempt of court, in violation of 18 U.S.C. § 401(3). On October 13, 2015, a jury convicted Murray of all the charges in the fourth superseding indictment.
According to the proof submitted at trial, beginning in 2007, Murray used JMA and MNT to defraud merchant banks and investors. Among the schemes devised by Murray was a scheme involving fraudulent credit card transactions in JMA’s merchant account. Murray used credit cards he controlled to process more than $650,000 in sham transactions, followed by fraudulent refunds on those same cards, leading to a loss of more than $550,000 to the credit card processing company.
Murray defrauded victim investors out of more than $2.5 million. Murray caused false and misleading marketing materials to be created and provided potential investors with false monthly performance numbers for the fund. For example, the materials indicated that the fund had been audited by accountants with JMA. Murray never disclosed JMA was not a real auditing firm and never disclosed that JMA did not actually conduct an audit and that the performance numbers in the JMA audit reports grossly overstated the performance of the fund in 2009. Murray also provided potential investors with a fake resume that included honors and a master’s degree he had never achieved.
The government produced evidence at trial that in July of 2012, Murray convinced a New York brokerage to advance 50,000 shares of stock in Netflix in order to complete a short sale stock transaction. Murray represented to the bank that at the time MNT had $5 million of assets available to invest, a fact Murray knew was not true.
In addition, the government produced evidence at trial that, while the case was pending, the Honorable Edward M. Chen, U.S. District Judge, issued an order setting conditions for Murray’s release on bond. According to Judge Chen’s order, Murray was prohibited from using a computer to access the Internet, prohibited from using a telephone other than at the halfway house, and prohibited from contacting witnesses. Murray nevertheless obtained a computer and used it to access the Internet, sent messages to and communicated with a witness in the case, and committed additional violations of the order. The evidence at trial established that Murray used the computer at his former attorney’s office when he was released from the halfway house for the purpose of meeting with his counsel. A search conducted pursuant to a warrant revealed Murray hid the computer above ceiling tiles in a conference room in his former attorney’s office. In its memorandum to the court requesting that Murray be sentenced for his crimes, the government argued, “[i]n the world of economic criminals, the unrelenting nature of defendant’s non-stop crime spree and his willingness to victimize anyone and everyone he encounters (his wife, his closest friends, his parents, elderly retirees, credit card companies, investment banks, on-line trading firms, and, most disturbingly, this Court) sets him apart as among the worst white collar defendants to have stood trial in this district for many years.”
The sentence was handed down by Judge Chen. In addition to the prison term, Judge Chen also sentenced Murray to three years’ supervised release following his incarceration.
Assistant U.S. Attorneys Robin Harris and Lloyd Farnham are prosecuting the case with the assistance of Jessica Meegan. The prosecution is a result of an investigation by the FBI and U.S. Secret Service.
Former General Counsel for BVU Pleads GuiltyRead the Press Release
ABINGDON, VIRGINIA – For the second time in as many days, a former official with the Bristol Virginia Utilities Authority pled guilty to federal conspiracy charges United States Attorney John P. Fishwick Jr. announced today.
G. Walter Bressler, 73, of Bristol, Virginia, waived his right to be indicted and pled guilty this afternoon in the United States District Court for the Western District of Virginia in Abingdon to a one count Information charging him with conspiracy to commit program fraud and having knowledge of the actual commission of felony and concealing such felony from the United States.
“Mr. Bressler had a requirement as general counsel for BVU to ensure they were following the law and he failed in that duty,” United States Attorney John P. Fishwick Jr. said today. “
“Public corruption, which includes the illegal mishandling of taxpayer funded programs, is the FBI’s highest criminal investigative priority. The Bristol Virginia Utilities Authority mess is an example of what can happen when corruption is tolerated by government officials and employees,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division.
“Today’s plea is a reminder that IRS-CI will remain vigilant in our investigation of these financial fraud schemes and will continue working with our law enforcement partners to combat this type of criminal conduct,” said Thomas Jankowski , Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office.
According to evidence presented at today’s hearing by Assistant United States Attorney Zachary T. Lee, Bressler was employed as General Counsel for BVU from January 1, 2009 to March 1, 2015. As part of his duties as General Counsel, Bressler was involved in the negotiations between Company #1 and BVU. BVU entered into an agreement with Company #1 that if BVU signed a contract for services with Company #1, then Company #1 would pay to entertain BVU executives, to include Bressler, and BVU Board Members and employee during a site visit in Dallas, Texas in November 2011. This entertainment included the payment of hotel expenses, limousine services, meals and tickets to a Dallas Cowboys football game, including access to a luxury box. In all, Company #1 paid more than $10,000 to entertain BVU executives and Board Members during the weekend of November 5, 2011 and November 8, 2011. Company #1 entered into a contract with BVU for the amount of $4,496,096.
On or about and between August 2013 and September 31, 2013, allegations of misconduct on the part of Wes Rosenbalm were brought to the attention of the BVU Board of Directors and Bressler. These allegations were discussed in multiple board meetings during executive sessions, during which Bressler was present.
On September 16, 2013 a BVU Board of Directors Meeting was held, after entering into executive session, the BVU Board of Directors, with Bressler present, discussed the implications of the alleged misconduct of Rosenbalm, specifically the BVU Board of Directors discussed the receipt of tickets by Rosenbalm from vendors and contractors engaged in business with BVU and the implications that the acceptance of those gifts violated the Virginia Procurement Act.
BVU Board Members also discussed the possibility that vendors who were not awarded contracts in favor of those who gave gifts were going to “raise all kinds of ruckus.” During the course of the executive session, board members, with Bressler present, discussed the possibility that other BVU employees, specifically, Stacy Pomrenke and David Copeland, were also mentioned as being involved in illegal activity associated with vendors of BVU.
During the September 16, 2013 executive session, BVU Board Members, with Bressler present, had specific discussions about violations of federal law, the types of violations that had occurred and the consequences of those violations. However, following those discussions neither any of the Board Members or Bressler decided to contact law enforcement with the information that state and federal law had been violated, but instead determined it was best to provide Wes Rosenbalm with a severance package in hopes that any allegations of misconduct by Rosenbalm, other BVU employees, or BVU Board Members would not be made public or become known to law enforcement.
On or about September 25, 2013, the BVU Board of Directors entered into an agreement with Rosenbalm to pay Rosenbalm a severance package of $269,420 in return for his resignation as CEO of BVU.
BVU Board Member #1, independently, and without support of the Board of Directors, brought his concerns about misconduct at BVU to the attention of law enforcement on or about October 21, 2013.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Zachary Lee and Special Assistant United States Attorney Kevin Jayne prosecuted the case for the United States.
Former Bethany-Warr Acres Public Works Authority Official is Sentenced to Serve 37 Months in Prison for Wire Fraud and Tax FraudRead the Press Release
Oklahoma City, Oklahoma – Yesterday, HELEN ROSE DEWEY, 61, of Oklahoma City, was sentenced by United States District Judge Vicki Miles-LaGrange to serve 37 months in federal prison for wire fraud and tax fraud, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
The Bethany-Warr Acres Public Works Authority (Authority) owned and operated the Bluff Creek Wastewater Treatment Plant to furnish public and municipal services for the cities of Bethany and Warr Acres. Dewey began her employment as a secretary at the treatment plant in 1988. Throughout her career, Dewey gained more responsibilities and eventually became the Executive Assistant to the Director of the treatment plant in 2010. Her primary duties included purchasing and accounts payable where she purchased supplies and other items for the treatment plant. As part of her duties, Dewey was authorized to use Authority credit cards to make purchases for the wastewater treatment plant.
According to court records, beginning in January 2008 and continuing to August 2013, Dewey embezzled from the Authority by using the Authority’s credit cards to make unauthorized purchases. The majority of the purchases involved gift cards ranging from $25 to $200 in value. Dewey also used the credit cards to buy personal items. In addition, during 2012 and 2013, Dewey embezzled money from the petty cash fund. To conceal her activity, Dewey altered purchase orders and blocked out itemized purchases listed on receipts and falsified claims for approval and payment by the Authority. It was also alleged that Dewey falsified her federal tax return for 2012 by grossly under-reporting her income.
Dewey was charged by Information on October 28, 2015. She pled guilty on November 12, 2015, to committing wire fraud and tax fraud.
Yesterday, Dewey was ordered to serve 37 months in prison, followed by three years of supervised release, and pay $974,034 in restitution to the Bethany-Warr Acres Public Works Authority and $233,674 in restitution to the IRS.
Reference is made to the court record for further information.
This case is the result of an investigation by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Kerry Kelly.
Federal Jury Convicts St. Johns County I.T. Specialist of Attempted Online Enticement of A Minor, Advertising for Child Pornography, and Attempted Production of Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Jon Christopher Stoune (44, Jacksonville) guilty of attempted online enticement of a child to engage in illegal sexual activity, advertising for child pornography, and attempted production of child pornography. On the attempted enticement count, Stoune faces a minimum mandatory penalty of 10 years, up to life, in prison. He faces a minimum mandatory penalty of 15 years, up to 30 years, in federal prison for each of the other charges. His sentencing hearing is scheduled for June 20, 2016.
According to evidence presented at trial, during March and April 2015, Stoune engaged in a series of online conversations with a person whom he believed to be a 14-year-old child. The "child" was actually a detective from the St. Johns County Sheriff’s Office. During the course of these conversations, Stoune discussed in detail his desire to have sex with and obtain pornographic pictures of the “child.” On April 21, 2015, Stoune drove to St. Augustine Beach to meet the “child” for sex. He was arrested at the meeting location by officers from the St. Johns County Sheriff's Office. Officers recovered a digital camera, several sex toys, and condoms from Stoune’s pants pocket. A search of his vehicle revealed, among other things, a backpack containing a leather whip, a wooden paddle, a billy club, nylon restraints, and other items designed for use in sadomasochistic activity.
This case was investigated by the St. Johns County Sheriff’s Office, the Volusia County Sheriff’s Office, the St. Augustine Beach Police Department, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
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.
Eagle Butte Woman Sentenced for LarcenyRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman convicted of Larceny was sentenced on April 4, 2016, by U.S. District Judge Roberto A. Lange.
Melissa Wolf Black, age 34, was sentenced to 15 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Wolf Black was indicted by a federal grand jury on November 10, 2015. She pled guilty on January 7, 2016.
The conviction arose from a June 26, 2015, incident involving Wolf Black and the Lindskov Motors Dealership in Eagle Butte. After Wolf Black expressed an interest in purchasing a pickup truck, an employee of Lindskov Motors gave her a test ride around town. Wolf Black was not allowed to drive because she appeared intoxicated. Sometime thereafter, while Wolf Black and the employee were back at the dealership, Wolf Black took the keys to the truck without permission. While Wolf Black was driving the truck later that evening, Cheyenne River Sioux Tribal police officers stopped her for failure to stop at a red light. Wolf Black was intoxicated and told the officers she had purchased the vehicle earlier that day. The officers were unable to find the registration or proof of purchase in the truck.
Lindskov Motors confirmed that the vehicle, which was worth $37,000, had been taken without permission. Wolf Black admitted she had stolen the truck and had just been released from prison in May 2015 after serving time for stealing a different truck.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Wolf Black was immediately turned over to the custody of the U.S. Marshals Service.
# # #
Drug Trafficker Pleads GuiltyRead the Press Release
EUGENE, Ore. – On April 7, 2016 Rafael Zapien, 23, a Mexican citizen, pleaded guilty before U.S. District Judge Ann Aiken, to possessing heroin and methamphetamine with the intent to distribute.
On August 4, 2014, a Benton County deputy sheriff stopped a vehicle being driven by Zapien on Highway 20 for speeding and suspicion of drunk driving. A drug detection dog later alerted on a plastic container inside the vehicle’s center console that contained one pound of heroin and four pounds of methamphetamine. Zapien’s fingerprints were on the container.
Zapien’s sentencing hearing is scheduled on September 7, 2016; he is faces a maximum sentence of twenty years in prison.
The investigation of this case was conducted by the DEA and Benton County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Frank R Papagni, Jr. with the assistance of the Benton County District Attorney John Haroldson and Deputy District Attorney Carrie Wineland.
Delray Beach Man Sentenced for Making and Possessing Counterfeit CurrencyRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Jaret Santa (26, Delray Beach) to one year and one day in federal prison for his role in a conspiracy to make, possess, and pass counterfeit Federal Reserve notes. As part of his sentence, the Court also ordered him to pay $3800 in restitution to his victims. Santa pleaded guilty on October 6, 2015.
According to court documents, in January and February 2015, Santa passed counterfeit $100 bills at various retail locations in southwest Florida. Law enforcement officers apprehended Santa and his co-conspirator, Peter Bonfiglio, after they had just paid for merchandise using a counterfeit $100 bill. Following their arrests, deputies located $4600 in counterfeit $100 bills in Santa’s car.
Bonfiglio (29, North Port) previously pleaded guilty and was sentenced to two years and one month in federal prison for his role in this case.
This case was investigated by the United States Secret Service, with assistance from the Charlotte County Sheriff’s Office and the Sarasota County Sherriff’s Offices. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Del Rio Man Pleads Guilty to Federal Cyberstalking and Child Pornography ChargesRead the Press Release
In Del Rio, 27-year-old Michael Martinez faces up to ten years in federal prison after pleading guilty to federal charges involving online sextortion, cyberstalking and child exploitation announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Alia Moses yesterday afternoon, Martinez pleaded guilty to two counts of cyberstalking and one count of receipt of child pornography. By pleading guilty, Martinez admitted that from October 2013 to August 2014, he caused emotional distress to multiple female victims--one of whom was a minor--by using a fictitious Facebook account, email accounts and text messages to harass, threaten and intimidate them. Furthermore, Martinez admittedly threatened to post nude photographs he had of the victims on the Internet and send the photographs to their respective family and friends unless the victims continued to supply him with additional sexually explicit photographs. The minor victim complied with his threat and sent him nude photographs that he received and stored on multiple electronic devices.
On August 21, 2014, FBI agents executed a search warrant at the defendant’s residence. During the execution of the search warrant, investigators seized several computers, an assortment of computer related storage devices and the defendant’s cell phone. A forensics examination of the seized items revealed the presence of approximately a dozen images of the minor victim engaged in sexually explicit conduct.
Martinez has remained in federal custody since his arrest on August 13, 2015. Sentencing is scheduled for 9:00am on September 8, 2016, before Judge Moses in Del Rio.
This case is being 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 http://www.justice.gov/psc.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Ralph Paradiso is prosecuting this case on behalf of the Government.
Davenport Man Sentenced to Prison for Enticement of a MinorRead the Press Release
DAVENPORT, IA – On March 6, 2016, John Michael Riepe, 31, of Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 151 months in prison for enticement of a minor, announced Acting United States Attorney Kevin E. VanderSchel. Riepe was ordered to serve ten years of supervised release following his prison term and to pay $100 to the Crime Victims’ Fund. Riepe was also ordered to comply with sex offender registry requirements and have no contact with any minors under the age of 18 years old.
Riepe was found guilty of enticement of a minor on August 19, 2015, after a three day jury trial. At trial, evidence was presented that Riepe sent a letter to a minor student at Pleasant Valley High School providing a picture and his phone number. The letter was turned over to the Scott County Sheriff’s Office. Det. Rachelle Kunde initiated contact with Riepe at the phone number he provided, and purported to be the minor victim. The two sent text messages back and forth beginning in September 2014. In the text messages, Riepe suggested meeting and having sexual contact. On October 30, 2014, Riepe was arrested when he arrived at a location where he intended to pick up the minor victim.
Additional evidence presented at trial showed Riepe had initiated prior contacts with several minor females in the past, which led to being banned from area high schools and their facilities.
This matter was investigated by the Scott County Sheriff’s Department, United States Marshals Service, Bettendorf Police Department, Davenport Police Department, and the Iowa Internet Crimes Against Children Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Childhood initiative.
Corona Man Arrested on Federal Charges Related to Scheme to Steal, ‘Wash’ and Cash Checks Stolen from the U.S. MailRead the Press Release
RIVERSIDE, California – A Corona man who had a stolen, blue mail-collection box in his living room was arrested today on federal charges that allege he stole mail, “washed” checks that he found and cashed the checks using a stolen identity.
Paul Wagner, 28, was arrested this morning without incident and is expected to be arraigned in United States District Court this afternoon on a three-count indictment.
Wagner is charged with bank fraud, aggravated identity theft and possession of stolen mail.
Wagner allegedly participated in a scheme that stole mail to find checks. Once Wagner obtained the checks, he would “wash” the checks – meaning that he would remove the payee’s name by physically scraping off the ink or using chemicals to erase the ink. After the check had been washed, Wagner altered the payee to make the check payable to the name of the identity theft victim, according to the indictment.
The indictment specifically alleges that Wagner cashed a check at a Bank of America branch on November 15, 2015 using a driver’s license with the name of an identity theft victim.
During a search of residence on March 1, authorities recovered hundreds of stolen checks, check-washing materials, and a large mail collection box that had been stolen from a street in Riverside.
“The frequency of mail theft is rising at a concerning rate across Southern California,” said United States Attorney Eileen M. Decker. “This criminal activity harms both individuals and businesses in large numbers, and we appreciate the efforts of the Postal Inspection Service in combating this trend.”
Robert Wemyss, Inspector in Charge of the Postal Inspection Service’s Los Angeles Division, noted, “Anyone who attempts to remove mail from a U.S. mail receptacle should be aware that Postal Inspectors, with the full cooperation of their law enforcement partners, will vigorously pursue, arrest, and bring to justice anyone who commits a crime against the U.S. Postal Service or its customers.”
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.
If he convicted of the charges in the indictment, Wagner would face a statutory maximum sentence of 37 years in federal prison.
This case was investigated by the United States Postal Inspection Service and the Riverside County Sheriff’s Department.
Convicted Sex Offender from Albuquerque Sentenced to Ten Years for Possessing Child PornographyRead the Press Release
ALBUQUERQUE – Michael Lippke, 71, a previously convicted sex offender residing in Albuquerque, N.M., was sentenced today in federal court to ten years in prison followed by five years of supervised release for possessing child pornography. Lippke will be required to register as a sex offender after he completes his prison sentence. Lippke was also ordered to pay $10,000 in restitution to the victims depicted in the child pornography involved in his crimes of conviction.
Lippke was arrested on July 16, 2015, on an indictment charging him with two counts of distribution of visual depictions of minors engaged in sexually explicit conduct and seven counts of possessing visual depictions of minors engaged in sexually explicit conduct. The indictment charged Lippke with distributing child pornography on July 20, 2014 and July 22, 2014, and possessing child pornography between Aug. 21, 2010 and Dec. 10, 2014, on several computers and computer-related media. According to the indictment, the nine offenses were committed in Bernalillo County, N.M.
On Jan. 8, 2016, Lippke pled guilty to the seven possession of child pornography charges, and admitted possessing child pornography from Aug. 21, 2010 through Dec. 10, 2014.
This case was investigated by the Albuquerque office of the Homeland Security Investigations and the Office of the New Mexico Attorney General, with assistance from the 2nd Judicial District Attorney’s Office. All are members of the New Mexico Internet Crimes Against Children (ICAC) Task Force.
The case was prosecuted by Assistant U.S. Attorney Sarah Mease 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 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 Office of the New Mexico Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement. This case was investigated by the ATF office in Albuquerque and APD.
The case was also prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Buffalo Man Pleads Guilty to Sex Trafficking Charges as Trial Was About to BeginRead 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 Anthony Thompson, a/k/a Fresh Tone, 35, of Buffalo, NY, pleaded guilty to sex trafficking of a minor before U.S. District Judge Richard J. Arcara. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum penalty of life and a fine of $250,000.
“Today’s conviction, together with this week’s arrest of two other defendants for production of child pornography, depicts the dark side of modern communication devices and applications” said U.S. Attorney Hochul. “The cases also serve as a warning to all of the many ways predators seek to manipulate children through technology into engaging in sexually explicit conduct. By education and dialogue, such conduct – which criminals would otherwise seek to keep in the shadows – can be exposed and prevented.”
"This investigation highlights HSI's commitment to identify and investigate trafficking threats, as well as protect victims' rights and bring traffickers to justice," said ICE-HSI Special Agent in Charge James Spero. "We will continue to work tirelessly with our law enforcement partners to dismantle human trafficking networks in our community."
Assistant U.S. Attorneys Marie Grisanti and Trini E. Ross, who are handling the case, stated that Thompson engaged in the sex trafficking of two adults and one minor, between November 2012 and September 2014. The defendant recruited and enticed the three victims to engage in commercial sex acts at his direction. One of the victims was recruited through social media. Thompson then advertised the availability of the victims on social media including “Backpage.com.” The defendant also required that some victims “walk the streets” in order to attract customers for commercial sex. As a result, Thompson received all the money earned from the commercial sex acts by the victims.
Thompson pleaded guilty today as a federal jury was to begin hearing evidence involving the charges against him. Included in the Government’s evidence was a rap video showing the defendant’s state of mind regarding prostitution and prostitutes.
Rap lines included:
• “I'm the s--- I had a lot of hoes... And when they left I went and got some more. I rap to em then them b------ want to rock and roll. Ha. You think I'm playin' but I'm really pimpin'. I don't do the 50/50 with em.”
• “Papa's fat and I don't ever wanna diet. I sell dreams and these b------ really buy it. You wanna work bring some money and you hired.”
In a social media posting, the defendant describes the sexual exploitation of women as “tha best thing goin.” Thompson also compares the sale of women to the sale of narcotics, “U can sell it n still have it after you sell it. It goes nowhere….u don’t have to re up, or u not riskin years n jail.”
U.S. Attorney Hochul further stated “while the likely sentence will prevent this defendant from victimizing any other young women, the public at large must be on alert and vigilant for other potential predators.”
The plea is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the Cheektowaga Police Department, under the direction of Chief David Zack.
Sentencing is scheduled for July 21, 2016 at 1:00 p.m. before Judge Arcara.
Basin Man Convicted of Clean Water Act Violations and Destruction of US PropertyRead the Press Release
MISSOULA – Following a four day federal trial, a Montana jury found Joseph David Robertson, 77, guilty on two counts of unauthorized discharge of pollutants into waters of the United States and one count of injury or depredation of United States property.
Robertson was indicted by a grand jury in May of 2015 as a result of illegal ponds he built on two parcels of land near Basin, Montana, one on Beaverhead-Deerlodge National Forest land and the other on adjacent private property. The ponds resulted in the discharge of dredged and fill material into a tributary stream and adjacent wetlands and caused widespread damage to both properties.
At trial, the government introduced evidence that in October of 2013, a United States Forest Service (USFS) Special Agent visited the National Forest property to determine whether Robertson had complied with previously issued conditions of probation for misdemeanor violations of USFS regulations. The Agent testified at trial that during the site visit, she observed multiple ponds dug into an existing stream on both USFS and adjacent private property.
During a subsequent site visit in November of 2013, Robertson admitted to Environmental Protection Agency (EPA) and USFS Criminal Special Agents that he had performed the work on the National Forest property using an excavator. State and federal officials visited the site again in May of 2014, and observed that Robertson had done additional work. The site was now approximately 1.2 acres in size, and extended beyond the National Forest property to a private property that he did not own. The work consisted of nine ponds of varying sizes, including some as large as approximately 4900 square feet that were placed directly in the stream and wetlands area. Unconsolidated dredged material from the ponds had been used to create the berms and had been placed in and around the stream and wetlands. Robertson admitted that he had completed the additional work. Additional investigation revealed that Robertson continued to construct ponds on the USFS property after May of 2014, despite being told repeatedly that he had no legal right to do so.
One of the central legal issues at trial was whether the waters polluted by Robertson were “waters of the United States” for purposes of the Clean Water Act. The United States introduced evidence and expert testimony from the Army Corps of Engineers and the EPA that the stream and wetlands had a significant nexus to traditional navigable waters, and therefore were “waters of the United States.” Fishery biologists from the Montana Fish, Wildlife and Parks (FWP) and the USFS testified that this headwater and wetland complex provided critical support to trout in downstream rivers and fisheries, including the Boulder and Jefferson Rivers.
“This verdict sends a message that the United States will not stand by and allow streams and wetlands of the United States to be polluted, or National Forest lands to be injured,” said United States Attorney for the District of Montana Mike Cotter. “Clean and healthy waterways are a critical resource for all forms of life and are a Montana value. It is imperative that we protect this increasingly scarce resource. The collaborative efforts of multiple state and federal agencies in cases like this help ensure that individuals who seek to degrade it will be held accountable.”
“Rivers, streams and wetlands provide essential habitat for fish and wildlife which must be protected, and EPA and its law enforcement partners are committed to protecting these invaluable natural assets as well as the communities around them,” said Jeffrey Martinez, Special Agent in Charge of EPA’s criminal enforcement program in Montana. “The defendant’s illegal activity took place not only on public land but also on private property he didn’t own. Today’s guilty verdict demonstrates that polluters will be held accountable for their actions."
The case was prosecuted by Assistant U.S. Attorney Bryan Whittaker and Special Assistant U.S. Attorney Eric Nelson from the United States Environmental Protection Agency. This case was investigated by multiple state and federal agencies including the United States Forest Service, the Environmental Protection Agency Criminal Investigation Division, the Army Corps of Engineers, and the Jefferson County Sheriff’s Office. Other agencies that assisted the investigation included Montana Fish, Wildlife and Parks and the Jefferson Valley Conservation District.
Albuquerque Man Sentenced to Federal Prison for Robbing US Bank Branch in January 2015Read the Press Release
ALBUQUERQUE – Joshua Hicks, 31, of Albuquerque, N.M., was sentenced today in federal court to 46 months in prison for robbing the US Bank Branch located on Carlisle Blvd. NE in Albuquerque, in Jan. 2015. Hicks will be on supervised release for three years after completing his prison sentence.
Hicks was arrested Feb. 9, 2015, based on a criminal complaint charging him with robbing the US Bank branch on Jan. 2, 2015. According to the criminal complaint, Hicks robbed the bank on Jan. 2, 2015, by handing the bank teller a crumpled hand written note which included the words “have gun,” “robbed” and “money.” The teller recognized it as a robbery note and handed money over to Hicks who then left the bank.
Hicks was indicted on Feb. 10, 2015, and charged with committing a bank robbery in Bernalillo County, N.M., on Jan 2. 2015. Hicks pled guilty to the indictment without the benefit of a plea agreement on Sept. 14, 2015.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and was prosecuted by Assistant U.S. Attorney Norman Cairns.
Acoma Pueblo Man Pleads Guilty to Domestic Assault by a Habitual Offender ChargeRead the Press Release
ALBUQUERQUE – Darrell Chino, Jr., 34, an enrolled member of Acoma Pueblo who resides in Acomita, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a domestic assault by a habitual offender charge. Under the terms of his plea agreement, Chino will be sentenced within the range of 33 to 57 months in federal prison followed by a term of supervised release to be determined by the court.
Chino was arrested on Sept. 23, 2015, on a criminal complaint charging him with domestic assault of an intimate partner by a habitual offender on Aug. 18, 2015, in Cibola County, N.M. According to the complaint, on Aug. 18, 2015, Chino assaulted an Acoma Pueblo woman by placing his hands around the victim’s throat, shoving her to the ground and attempting to kick her. Chino was subsequently indicted on the same charge on Sept. 22, 2015. Court records indicate that Chino had previously been convicted of assault against a household member in 2011 and 2012, in the 2nd Judicial District Court for the State of New Mexico.
During today’s proceedings, Chino pled guilty to a felony information charging him with domestic assault by a habitual offender and admitted that on Aug. 18, 2015, he assaulted his intimate partner by grabbing her throat and throwing her to the ground causing her to suffer bodily injury. Chino committed the crime in Acoma Pueblo in Cibola County. Chino also acknowledged that he had at least two prior domestic assault convictions. Chino remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Acoma Pueblo Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney Sarah Mease.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
2016 National Crime Victims’ Rights WeekRead the Press Release
Every April, National Crime Victims’ Rights Week (NCVRW) is held to promote victims’ rights and to honor crime victims and those who advocate on their behalf. This year’s NCVRW will be held April 10-16 and the theme, “Serving Victims. Building Trust. Restoring Hope” presents the opportunity to highlight the diversity of our communities, expand partnerships to serve victims of crime, enhance efforts to meet victims where they are, and empower crime victims as they pursue justice and recovery.
The U.S. Attorney’s Office announced today that it has partnered with the 6th Judicial Department of Correctional Services, Horizons - A Family Service Alliance, UnityPoint Health Child Protection Center, Waypoint, Riverview Center, Cedar Rapids Police Department, Deaf Iowans Against Abuse, Cedar Valley Friends of the Family, Marion Police Department, the Linn County Attorney’s Office and concerned citizens to host events in the Cedar Rapids area throughout the week. These events encourage community members to be engaged, to empower victims, and to provide an opportunity to honor those impacted by crime.
“Every year, millions of people are impacted by crime. This week is a time to celebrate progress, raise awareness of victims’ rights and services, and stand with those whose lives have been altered by crime,” said U.S. Attorney Kevin W. Techau. “My office is committed to ensuring victims are treated fairly, with dignity and respect, and are afforded their statutory rights.”
The Opening Ceremony will be held on Sunday, April 10 at 1:00 p.m. at the Marion Police Department. Denise Stapley, winner of the reality show Survivor: Philippines and a Licensed Mental Health Therapist in Cedar Rapids will be the keynote speaker. The community is invited to join city leaders, members of law enforcement, advocates of victims' rights, crime victims, survivors, and their families as they remember those who have been victimized, honor those working in the field, and focus on the need for justice and support for those impacted by crime. Sign language interpreters will be present during the ceremony.
At the Opening Ceremony the United States Attorneys’ Offices for the Northern and Southern Districts of Iowa will present the annual Victim Service Awards. Kyle Paxton, a Medicaid Fraud Unit Investigator with the Iowa Department of Inspections and Appeals, will receive the 2016 Law Enforcement Victim Service Award for his work involving a case of abuse in an elder group home. The 2016 Award of Excellence in Victim Service will be presented to Holly Elliott, a Victim-Witness Coordinator with the Dubuque County Attorney’s Office, for her work with crime victims and in developing training and standards for victim service providers.
Also, at the event on Sunday, the Linn County Attorney’s Office will present the Jennifer Clinton Domestic Violence Service Award. This year’s recipient is Officer Nicole Hotz with the Marion Police Department. Officer Hotz went above and beyond the call of duty to assist a victim of domestic abuse providing support, concern and compassion in a professional manner.
On Tuesday, April 12, the 6th Judicial Department of Correctional Services will hold a Victim Empathy Circle at the William G. Faches Center. This is a closed event in which clients on correctional supervision focus on honoring victims and developing empathy for the harm their actions have caused to their victims and the community through participation in a healing circle.
On Friday, April 15, from 7:00 to 8:30 p.m. there will be a Candlelight Vigil for Victims of Homicide held at Horizons – A Family Service Alliance located at 819 - 5th Street SE Cedar Rapid, IA. Dr. Jim Coyle will be the keynote speaker discussing Companioning Grief. Dr. Coyle has been a first responder for 33 years. His life mission has focused on assisting individuals through traumatic events.
On Saturday, April 16, at 9:00 a.m. the 10th Annual Go the Distance for Crime Victims 5K Run/Walk will take place at Thomas Park in Marion. To register go to www.gothedistance5k.com. Funds raised from this event are used to reimburse victims for financial losses as a result of a crime.
National Crime Victims’ Rights Week honors and celebrates the achievements of the past 30 years in securing rights, protections, and services for victims. The bipartisan Victims of Crime Act (VOCA), passed by Congress in 1984, created a national fund to ease victims’ suffering. Financed by fines and penalties paid by offenders, the Crime Victims Fund supports services for victims of all types of crime, including assistance for homicide survivors, survivors of child sexual abuse, and victims of human trafficking as well as rape crisis centers and domestic violence programs among others. VOCA also funds victim compensation programs that pay victims’ out-of-pocket expenses such as counseling, funeral expenses, and lost wages.
For additional information about the 2016 National Crime Victims’ Rights Week and how to assist victims in your community, please contact the U.S. Attorney’s Office, Northern District of Iowa or visit www.justice.gov/usao-ndia. For additional ideas on how to support victims of crime, visit the Office for Victims of Crime website, www.ovc.gov.
Follow us on Twitter @USAO_NDIA.
*****media Advisory*****Read the Press Release
April 10-11, 2016 Events Featuring Sam Quinones, Author of “Dreamland: The True Tale of America’s Opiate Epidemic,” Hosted by Healing Addiction in our Communities (HAC), Bernalillo County, UNM Health Sciences Center
ALBUQUERQUE – The community is invited to attend a free book signing and keynote address by Sam Quinones, acclaimed author of “Dreamland: The True Tale of America’s Opiate Epidemic” this Monday, April 11, 2016, at the African American Performing Arts Center. Doors open at 5:00 pm at the center, located at 310 San Pedro Drive NE at Expo New Mexico.
New Mexico faces a major public health and public safety crisis, a true epidemic of heroin and opioid addiction that is tearing families apart, draining public resources, creating a new generation of addicts, and leading to an unprecedented number of overdose deaths. Although medical science and law enforcement have key roles in responding to this crisis, treatment and prosecution are not enough. A coalition comprised of Healing Addiction in our Community (HAC), Bernalillo County and the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative partnership between the UNM Health Sciences Center and the U.S. Attorney’s Office (collectively, the Coalition) is working to create and implement new strategies for education, prevention and intervention to turn the tide against this epidemic.
The Coalition has come together to provide two days of community education and awareness through a series of events in Albuquerque featuring Sam Quinones, acclaimed author of “Dreamland: The True Tale of America’s Opiate Epidemic,” a book that recounts the personal journeys of addicts, drug traffickers, doctors, pharmaceutical executives, law enforcement officers, and the many families affected by the disease of addiction. “Dreamland” helps us understand how prescription painkillers spawned a new generation of heroin addicts and how heroin traveled from Mexico to Santa Fe and Española. The book offers hope for a better future.
During the community education and awareness events, which are described below, Sam Quinones will join members of the Coalition and the community as we look back over the past five years in New Mexico, share the journey and results of our efforts, and discuss where we are today and our hopes for the future. Sam Quinones and Coalition members will be participating in the events described below, some of which are open to the media.
Sunday, April 10, 2016
7:00 pm – 8:30 pm
Scalo Northern Italian Grill
A “meet and greet” reception for Sam Quinones will be hosted by Scalo Northern Italian Grill. This event is sold-out and is not open to the media.
Monday, April 11, 2016
6:30 am – 8:00 am
KRQE-TV
Sam Quinones, U.S. Attorney Damon P. Martinez and Bernalillo County Commissioner Maggie Hart Stebbins will be guests on KRQE This Morning.
9:15 am – 10:00 am
KNME-TV/New Mexico PBS
Sam Quinones will be interviewed by Megan Kamerick for KNME’s New Mexico in Focus program that will air on a date to be announced in the near future.
10:30 am – 11:00 am
Serenity Mesa Youth Recovery Center
Sam Quinones and HAC Executive Director Jennifer Weiss-Burke will tour Serenity Mesa Youth Recovery Center, a sober living facility for adolescents and young adults ages 14-21 who are struggling with addiction. This event is not open to the media.
12:00 pm – 12:30 pm
UNM Domenici Auditorium
Domenici Center for Health Sciences Education
1001 Stanford Drive NE
University of New Mexico
Chancellor Paul B. Roth of the UNM Health Sciences Center and Dean Lynda Welage of the UNM College of Pharmacy will host a ceremony during which FBI Special Agent in Charge Terry Wade will present the 2015 FBI Director’s Community Leadership Award to the UNM College of Pharmacy for its outstanding contribution to preventing drug abuse through its “Generation Rx” education and community awareness program. Sam Quinones, U.S. Attorney Damon P. Martinez, Bernalillo County Commissioner Maggie Hart Stebbins, HAC Executive Director Jennifer Weiss-Burke and DEA Assistant Special Agent in Charge Sean R. Waite will attend the ceremony.
This event is OPEN PRESS. Inquiries regarding logistics should be directed to Frank Fisher at 505-889-1438 (office), 505-681-8906 (cell).
12:30 pm – 1:45 pm
UNM Comprehensive Cancer Center
Chancellor Paul B. Roth and the UNM Health Sciences Center, as part of the New Mexico HOPE Initiative, will host Sam Quinones at a luncheon and informal meet and greet to discuss the opioid epidemic afflicting New Mexico. Participants will include U.S. Attorney Damon P. Martinez, Bernalillo County Commissioner Maggie Hart Stebbins, HAC Executive Director Jennifer Weiss-Burke, FBI Special Agent in Charge Terry Wade, DEA Assistant Special Agent in Charge Sean R. Waite and other representatives from HAC, Bernalillo County, the U.S. Attorney’s Office, DEA and FBI. This event is not open to the media.
5:00 pm – 8:30 pm
African American Performing Arts Center
Expo New Mexico
310 San Pedro Drive NE
Sam Quinones will deliver a keynote address at 6:30 p.m., followed by a roundtable discussion that will be moderated by Emmy Award winning documentary producer Chris Schueler. Doors will open at 5:00 pm, with a book signing at 5:30 pm. The event will conclude at 8:30 pm following closing remarks by Bernalillo Commissioner Maggie Hart Stebbins. Refreshments will be served. THIS EVENT IS FREE AND OPEN TO THE PUBLIC.
The following individuals will participate in the roundtable discussion:
HAC – Executive Director Jennifer Weiss-Burke
APS –Susan McKee, Counseling Manager, Prevention/Intervention
U.S. Attorney Damon P. Martinez
DEA Assistant Special Agent in Charge Sean R. Waite
UNM Health Sciences Center – Dr. Joanna Katzman, Director, UNM Pain Center
Bernalillo County – Bill Wiese
Dreamland Author – Sam Quinones
This event is OPEN PRESS. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 or [email protected].
A public service announcement and a GovTV segment of “Conversations with the Commissioner” regarding the main Dreamland event may be viewed at: https://www.youtube.com/watch?v=_Lo1RJasPd4 and https://www.youtube.com/watch?v=C1pFsODGjao.
Healing Addiction in Our Community (HAC) is a non-profit organization that was founded 6 years ago by a group of concerned parents and grandparents. HAC is dedicated to providing education and awareness to our community about the heroin and opiate epidemic that plagues our state. HAC provides the voices for those who have lost their lives to addiction and for those who continue to struggle.
Bernalillo County Commissioner Maggie Hart Stebbins is proud to sponsor this community outreach effort and promote more awareness of heroin and opioid abuse in New Mexico. Commissioner Hart Stebbins is the driving force behind the Bernalillo County Opioid Accountability Initiative, collective impact strategy working to align the activities of government, nonprofit, healthcare, law enforcement, and community leaders to strengthen systems that address the use and abuse of prescription opioids and heroin.
The New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic which has had a disproportionately devastating impact on New Mexico and because the consequences of heroin and opioid use affect all New Mexicans by impacting public safety, public health and the economic viability of our communities. HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
*****media Advisory*****Read the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez and Richard Larson, M.D., Ph.D., Executive Vice Chancellor and Vice Chancellor of Research for UNM Health Sciences Center, will hold a press conference at 10:00 A.M. on FRIDAY, APRIL 8, 2016, to announce a new community education program under the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative partnership between the UNM Health Sciences Center and the U.S. Attorney’s Office. The U.S. Attorney and Executive Vice Chancellor will be joined by community stakeholders who are collaborating with the HOPE Initiative partners to develop and implement education, prevention and intervention strategies to combat the heroin and opioid epidemic that is having devastating consequences in New Mexico.
WHO:
U.S. Attorney Damon P. Martinez
Richard Larson, M.D., Ph.D., Executive Vice Chancellor and Vice Chancellor of Research for UNM Health Sciences Center
Bernalillo County Commissioner Maggie Hart Stebbins, District 3
City Councilor Diane Gibson, District 7
Ryan P. Cangiolosi, Chief Strategic Advisor, Office of Strategy and Engagement at the UNM Health Sciences Center
Asst. Special Agent in Charge Sean R. Waite, DEA Albuquerque District Office
Jennifer Weiss-Burke, Executive Director, Healing Addiction in our Community
Lou Duran, Prevention Specialist/Event Coordinator, Healing Addiction in our Community
WHEN:
FRIDAY, APRIL 8, 2016
10:00 a.m.
WHERE:
U.S. Attorney’s Office of the District of New Mexico
201 Third Street NW
10th Floor Multi-Media Room (Reception on Ninth Floor)
Albuquerque, NM 87102
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (i.e., driver’s license) and valid media credentials. Media may begin to arrive at 9:45 a.m. MDT. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 or [email protected].
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with Bernalillo County, the Albuquerque City Council, DEA, Healing Addiction in our Community (HAC) and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico. The Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The new community education program is part of the prevention and education component of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
6 April 2016
Woman Involved in Sex Trafficking of Minors Conspiracy Sentenced to 5 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that KAYLA WALTERS, 24, of New York, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 60 months of imprisonment, followed by six years of supervised release, for conspiring to commit sex trafficking of minors.
According to court documents and statements made in court, in September 2012, Edward Thomas, also known as “Fire,” a New York-based pimp, answered an internet prostitution advertisement for a 17-year-old girl (“MV1”) in Oregon. Thomas, with the assistance of WALTERS, recruited and enticed MV1 to travel to New York to work for Thomas. MV1 agreed and traveled to New York with a second girl (“MV2”), who was 16 at the time, using bus tickets purchased by Thomas. Thomas discussed with both MV1 and MV2 that they would be prostituting for him in New York and Connecticut.
After MV1 and MV2 arrived in New York, Thomas drove the two minor girls to a hotel in Milford, Connecticut, where they met WALTERS and posted prostitution advertisements. In Milford, MV1 and MV2 saw customers for commercial sex acts at the direction of Thomas and WALTERS. MV2 escaped from a hotel room window after several hours, but MV1 continued to work for Thomas and WALTERS for about a month, turning over all of the money she earned in prostitution to Thomas and WALTERS. When MV1 attempted to leave, Thomas forcibly restrained her. Ultimately, MV1 was recovered for the first time by the FBI and local police in Milford on November 8, 2012. Law enforcement seized nearly $4,000 in cash from Thomas during this recover, along with several computers and cellular phones.
Thomas recruited MV1 a second time in July 2013 and again paid for her travel from Oregon to the East Coast. After Thomas sent WALTERS and MV1 to Connecticut to make money for him, the FBI and local police again recovered MV1 from a hotel in Milford.
Thomas and WALTERS have been detained since their arrests on February 28, 2014.
On November 10, 2014, WALTERS pleaded guilty to one count of conspiracy to commit sex trafficking of a minor.
On January 26, 2015, a jury found Thomas guilty of one count of conspiracy to commit sex trafficking of a minor and two counts of sex trafficking of a minor. On November 2, 2015, he was sentenced to 210 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The Stratford and Milford Police Departments assisted the investigation.
The case was prosecuted by Assistant U.S. Attorneys David E. Novick and Sarala V. Nagala.
Washington County Man Indicted on Federal Drug Trafficking ChargesRead the Press Release
PITTSBURGH – A Washington County resident has been indicted by a federal grand jury in Pittsburgh on charges of trafficking in heroin, fentanyl, and cocaine, United States Attorney David J. Hickton announced today.
The two-count indictment named Fred Edward Stewart, Jr., age 37, of Ellsworth, Pennsylvania, as the sole defendant.
According to the indictment, Stewart, Jr. possessed with intent to distribute and distributed heroin and fentanyl, on Feb. 12, 2016. The indictment further charges that on Feb. 12, 2016, Stewart, Jr. also possessed cocaine with the intent to distribute it.
The law provides for a maximum total sentence of not more than 40 years in prison, a fine of up to $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Ross E. Lenhardt and Katherine A. King, of the Violent Crime Section of the U.S. Attorney’s Office, are prosecuting this case on behalf of the government.
Special Agents and Task Force Officers from the Drug Enforcement Administration, the Washington County Drug Task Force, the Pennsylvania Office of the Attorney General, the Pennsylvania State Police, the Washington County District Attorney’s Office, and numerous local police departments including the Canonsburg Police Department, the Donora Police Department, the Monessen Police Department, and the Charleroi Police Department, as well as the Washington County Coroner’s Office, and the Allegheny County Medical Examiner’s Office, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Utah Resident Convicted of Conspiracy to Distribute MethamphetamineRead the Press Release
U.S. Attorney Christopher A. Crofts announced today that Salt Lake City, Utah resident Karen Michelle Cox has been convicted in federal court. A jury found Cox guilty of conspiracy to distribute methamphetamine after a five-day jury trial in the United States District Court in Cheyenne. Cox will be sentenced at a later date by Federal District Court Judge Alan B. Johnson. Cox faces a minimum sentence of ten years.
This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was prosecuted by Assistant U.S. Attorney Stephanie I. Sprecher with the assistance of lead investigator, Special Agent Cody Ruiz with the Wyoming Division of Criminal Investigation.
United Airlines Abandons Attempt to Enhance its Monopoly at Newark Liberty International AirportRead the Press Release
The Department of Justice announced today that United Continental Holdings Inc. (United) abandoned its plans to purchase 24 take-off and landing authorizations – or “slots” – from Delta Air Lines Inc. (Delta) at Newark Liberty International Airport (Newark).
On Nov. 10, 2015, the department filed suit to block the proposed acquisition, alleging that it would violate Sections 1 and 2 of the Sherman Act by increasing from 73 percent to 75 percent United’s already dominant share of slots at Newark, one of the nation’s most important airports. The complaint alleged that the enhancement of United’s dominant position would subject air-travel passengers at Newark – who already pay some of the highest fares in the nation – to higher fares and fewer choices.
On April 1, 2016, the Federal Aviation Administration (FAA) announced that it plans to lift slot controls at Newark, which will ease entry and promote competition at the airport. The FAA explained that capacity exists for additional flights at Newark, in part because slots that have been allocated are not being fully utilized. At the same time, the existence of slot constraints has forced the FAA to deny requests from United’s competitors to add service. As alleged in the department’s complaint, United “grounds” more slots on any given day than any of its competitors have the option to fly, while keeping them out of the hands of potential competitors. Following the FAA’s announcement, United and Delta decided on April 5, 2016, to terminate their slot purchase agreement.
“This is a great win for Newark travelers and for all American consumers,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “United has used its slots monopoly to dominate air travel in and out of Newark. The FAA’s action opens up Newark to more robust competition and achieves the very outcome we sought in litigation: protecting consumers from United’s plan to enlarge its monopoly at Newark.”
Newark take-off and landing slots were created by the FAA in 2008 to manage congestion by limiting the number of flights that can serve the airport during the majority of the hours of the day. Slots are scarce, and airlines at Newark – especially low-cost carriers – have had difficulty obtaining slots to offer new air service. United controls 73 percent of the slots at Newark and its slot holdings are more than 10 times greater than those of any other airline: United holds 902 slots; no other airline has more than 70. The transaction abandoned today would have increased United’s slot holdings at Newark to 926, or around 75 percent.
United Continental Holdings Inc. is a Delaware corporation headquartered in Chicago. Last year, United, the third largest airline in the world in terms of revenues, flew over 138 million passengers to over 352 destinations throughout the world.
Delta Air Lines Inc. is a Delaware corporation headquartered in Atlanta. Last year, Delta, the second largest airline in the world in terms of revenues, flew over 170 million passengers to 316 destinations throughout the world.
U.S. Department of Defense Employee in Korea Pleads Guilty to Illegally Obtaining More than $141,000 in Government Housing Allowance FundsRead the Press Release
A civilian employee of the U.S. Department of Defense’s 501st Military Intelligence Brigade pleaded guilty today in the Eastern District of Virginia to illegally obtaining over $141,561 in Living Quarters Allowance (LQA) funds.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Deputy Assistant Inspector General for Investigations Stanley A. Newell of the Defense Criminal Investigative Service (DCIS), Director Frank Robey of the U.S. Army Criminal Investigative Command’s (CID) Major Procurement Fraud Unit and Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Field Office made the announcement.
Koo Hyung Jung, 61, of Fairfax, Virginia, pleaded guilty to one count of knowing conversion of government property before U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia. Jung will be sentenced on July 1, 2016.
According to admissions made in connection with his plea, in 2008, 2010 and 2012, Jung submitted false documents in order to obtain LQA funds from the Department of Defense. Jung then converted the funds to his own personal benefit, contrary to the applicable regulations, allowing him to obtain government funds without paying the requisite taxes on the lump sum LQA payments, he admitted.
DCIS, CID and the FBI are investigating the case with assistance from the FBI Legal Attaché Jin W. Kim in the Republic of Korea and the Justice Department’s Office of International Affairs. Trial Attorneys Richard B. Evans and Justin D. Weitz of the Public Integrity Section and Assistant U.S. Attorney Uzo Asonye of the Eastern District of Virginia are prosecuting the case.
U.S. Central Command Employee Arrested for Attempted Enticement of A Child for SexRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the arrest of Philip Carl Olsen (55, Lithia) with attempted enticement of a child for illegal sexual activity.
According to Court documents, between April 1, 2016, and April 5, 2016, Olsen used a cell phone and computer to attempt to entice an individual he believed was 14 years old to engage in illegal sexual acts, but who was actually an undercover agent. During the chats, Olsen graphically discussed the sexual acts that he wanted to engage in with the “child” and sent the “child” a picture of his genitals. Olsen also asked the “child” to take a picture of his genitals and to send the picture to him. Olsen allegedly made plans to meet the “child” for sex, and on April 5, 2016, he drove to what he believed was the child’s residence and was arrested.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Air Force - Office of Special Investigations. It will be prosecuted by Assistant United States Attorney Amanda C. Kaiser.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Two sentenced for unlawful possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – Two individuals were sentenced in federal court in Wheeling today for unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.
Darrick D. Fleming, II, 28, of Columbus, Ohio, who has a previous felony conviction in state court in Ohio, was discovered in June 2015 in Ohio County, West Virginia in unlawful possession of a 9mm pistol. He was previously convicted in the Court of Common Pleas of Franklin County, Ohio of the felony offense of “Carrying a Concealed Weapon.” He pled guilty in November 2015 to one count of “Prohibited Person in Possession of a Firearm.” He was sentenced today to 27 months in prison.
Eric Brandon Lemasters, 33, of Jacksonburg, West Virginia, who has a previous felony conviction in state court in Ohio, was discovered in July 2015 in unlawful possession of two rifles, a shotgun, and a pistol in Wetzel County, West Virginia. He was previously convicted of the felony offense of “Grand Theft” in the Court of Common Pleas of Lake County, Ohio. Lemasters pled guilty in February 2016 to one count of “Felon in Possession of a Firearm.” He was sentenced today to 24 months in prison.
Assistant U.S. Attorney Stephen Vogrin prosecuted Fleming and Assistant U.S. Attorney David Perri prosecuted Lemasters on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated both defendants. The Wheeling, West Virginia Police Department also investigated Fleming.
U.S. District Judge John Preston Bailey presided.
Toledo man indicted for sexually exploiting minor girls, including some as young as 8 years oldRead the Press Release
A 14-count indictment was filed charging a Toledo man for sexually exploiting minors, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Steven Calmes, 37, was charged with eight counts of sexual exploitation of a minor, five counts of coercion and enticement and one count of receipt of material involving the sexual exploitation of a minor.
Calmes targeted several girls between the ages of 10 and 14 over the internet and convinced them to send nude picture of themselves to him, or appear naked on a web camera for him. This took place numerous times between 2012 and 2014, according to court documents.
An examination of electronic devices seized during a search revealed 70 videos that constituted child pornography. Calmes used real-time text messages to direct the minor females to engage in sexually explicit conduct, according to court documents.
Several minor victims have been identified, including females as young as eight years old, including victims in Alabama, Ohio, Pennsylvania and Michigan, according to court documents.
Calmes interacted with another child victim who he tried to convince to meet him in person for “more fun.” In another video, Calmes convicted another victim to become fully naked on the web chat. Calmes created a plan to meet this victim at her school, according to court documents.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Secret Service, with the assistance of the Toledo Police Department. The case is being handled by Assistant United States Attorney Alissa M. Sterling.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Toledo man charged with sex trafficking of a minorRead the Press Release
A criminal information was filed charging Trashon Autman, 19, of Toledo, with transportation of a minor to engage in prostitution, said Carole S. Rendon, Acting U.S Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agencies in this case are the Toledo Police Department and the Federal Bureau of Investigation as part of the Northwest Ohio Violent Crimes Against Children Task Force. The case is being handled by Assistant United States Attorney Michael J. Freeman.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Seattle People Charged Involving Counterfeit Credit CardsRead the Press Release
St. Louis, MO – Three individuals living in the Seattle area have been charged in federal court for possessing more than fifteen counterfeit credit cards. Heben Sebhatu, Fana Kiros and Kayla Burleson were arrested on a criminal complaint and made their initial appearance in federal court in St. Louis today.
According to the complaint, the defendants were arrested in the early morning hours of March 25, 2016, after a traffic stop by the Ladue police department revealed more than 100 suspicious credit and gift cards, computer equipment and a credit card encoding machine. While in custody, one of the defendants admitted the group had traveled from Seattle to the Midwest and made fraudulent transactions with the credit cards to obtain gift cards and money orders in different states. Defendant Sebhatu was found to be on bond out of Pierce County, Washington, for First Degree Identity Theft.
If convicted of possession of counterfeit access devices in violation to Title 18, United States Code, Section 1029(a)(3), the defendants face up to 10 years imprisonment, a fine of $250,000 or both. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Restitution to the victim financial institutions and business is also mandatory.
The case is being investigated by the Ladue Police Department and the U.S. Secret Service - St. Louis Office. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in a federal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
St. Albans man pleads guilty in Federal court to drug-related gun crimeRead the Press Release
CHARLESTON, W.Va. – A St. Albans man caught with fentanyl, marijuana, several pistols, and three assault rifles pleaded guilty today, announced Acting United States Attorney Carol Casto. O’Neil Anthony Peart, 37, entered his guilty plea in federal court to possession of firearms in furtherance of drug trafficking offenses.
On December 4, 2015, drug task force officers executed a search warrant at Peart’s Walnut Street apartment in St. Albans. Among other items, police seized eight firearms, including three “AR”-style assault rifles with high-capacity magazines, approximately 21 grams of fentanyl, approximately 7.5 pounds of marijuana, and more than $5,300 in cash. All but two of the firearms were loaded.
Peart faces at least five years and up to life in federal prison when he is sentenced on June 15, 2016.
The Metropolitan Drug Enforcement Network Team, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the St. Albans Police Department investigated this case. Assistant United States Attorney Joshua Hanks is in charge of the prosecution. The hearing was held before United States District Judge Thomas E. Johnston.
This case was prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime. This case was also brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-
Rock Hill Man Charged with Being a Felon in Possession of a FirearmRead the Press Release
Contact Person: Beth Drake (803) 929-3000
United States Attorney Bill Nettles stated today that a Federal Grand Jury in Columbia, South Carolina, returned an Indictment against the following:
Rock Hill man charged with being a felon in possession of a firearm
Robert Da’Quan Johnson, age 20, of Rock Hill, South Carolina was charged in a one-count indictment stemming from an incident in Rock Hill on March 4, 2016. Johnson was charged with being a felon in possession of a firearm and ammunition, a violation of Title 18, U.S.C. ''922(g)(1), 924(a)(2), and 924(e). The maximum penalty Johnson could receive on the charge is 10 years imprisonment and a maximum fine of $250,000, unless he is determined to be an armed career criminal, and then he would face a mandatory minimum 15 years with a maximum of life imprisonment and a maximum fine of $250,000. Johnson was previously arrested for this charge pursuant to a federal criminal complaint on March 8, 2016. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Rock Hill Police Department and is assigned to Assistant United States Attorney Stacey D. Haynes of the Columbia office for prosecution.The United States Attorney stated that all charges in this Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
####