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6 April 2016
President of Purcellville Company Pleads Guilty to Virginia Regional Transit Bribery ConspiracyRead the Press Release
ALEXANDRIA, Va. – Thomas Eugene Ahalt, 71, of Berryville, pleaded guilty today to conspiracy to commit bribery concerning federal program funds for his role in a bribery scheme that caused over $500,000 in losses to the U.S. government.
According to the statement of facts filed with the plea agreement, Ahalt has served as the President of Mobile Auto Truck Repair (Mobile Auto), an automotive repair business in Purcellville, since 2007. Mobile Auto provided repair services to Virginia Regional Transit (VRT), a not-for-profit 501(c)(3) organization that provides transportation services throughout Northern Virginia. VRT is funded by a combination of federal, state and local grants, including from the U.S. Department of Transportation.
According to the plea agreement, Ahalt participated in two fraud schemes from January 2007 through December 2015. In the first scheme, Ahalt and M.M., a former chief executive officer of VRT, agreed Mobile Auto would submit—and VRT would approve—false invoices for certain labor charges. In exchange, Ahalt would make bi-weekly kickback payments to M.M. totaling half of the additional labor charges. Accordingly, between 2007 and 2015, M.M. approved and VRT paid to Mobile Auto approximately $380,000 in fraudulent additional labor charges. During the same period, Ahalt gave M.M. approximately $190,000 in illegal kickback payments.
In addition to the kickback payment scheme, Ahalt also regularly caused Mobile Auto to submit false invoices to VRT for parts and labor associated with maintaining VRT vehicles. Ahalt, for example, frequently added fictitious entries to invoices for repairs that had not occurred and for parts that had not been installed. Mobile Auto submitted at least $136,000 in false invoices to VRT between 2012 and 2015. VRT subsequently paid these false invoices using, in part, federal funds from the U.S. Department of Transportation.
Ahalt faces a maximum penalty of five years in prison and a $250,000 fine when sentenced on June 21. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Floyd Sherman, Regional Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General, made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorney Uzo Asonye is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-79.
Plymouth Attorney Sentenced to 41 Months in Prison for Stealing $500,000 from InvestorsRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of TIMOTHY JON OLIVER, 62, for stealing $500,000 from ARS Tectonica, a Mexican construction company, in connection with a purported real estate project in Libya. OLIVER, who pleaded guilty to one count of wire fraud on September 10, 2014, was sentenced on April 1, 2016, before Senior U.S. District Judge Michael J. Davis in U.S. District Court in Minneapolis.
“Lying and stealing are always damaging to the victims and to society writ large,” said Assistant United States Attorney David J. MacLaughlin. “Such conduct is especially egregious, and particularly undermining of trust between people, when it is perpetrated by a licensed attorney, a person on whose advice others rely to conduct themselves in accordance with the law. Mr. Oliver’s disbarment, and his 41-month sentence, appropriately punish him for the deceit and dishonesty to which he pled guilty.”
According the defendant’s guilty plea and documents filed in court, from May 2009 to May 2010, OLIVER controlled two companies, American Diversified Industries, LLC (ADI), which was used to receive proceeds of the scheme, and GVA International Limited, which was purported to be developing a real estate project in Bani Walid, Libya. OLIVER pressured, and ultimately convinced, ARS Tectonica to send $500,000 to ADI to secure a letter of credit from a Minnesota credit union.
According to his guilty plea, OLIVER told ARS Tectonica that the letter of credit would be presented to the Organization for Development of Administrative Centers (ODAC), an arm of the Libyan government, as a performance bond for the real estate project in Libya. He also told ARS Tectonica that, once ODAC approved the letter of credit, it would be awarded the opportunity to become the construction manager for the Bani Walid project.
According to documents filed in court, on May 21, 2009, ARS Tectonica wired $500,000 to OLIVER, which was received through ADI’s account that was maintained by the defendant. Instead of using the money to secure a letter of credit, OLIVER spent the money on unrelated debts. For almost a year thereafter, OLIVER lulled ARS Tectonica into believing that the $500,000 remained at the credit union and was being utilized by the credit union to secure the letter of credit. As part of his sentence, OLIVER is ordered to pay $500,000 in restitution to ARS Tectonica.
This case was prosecuted by Assistant U.S. Attorney David J. MacLaughlin.
This case is the result of an investigation conducted by the Federal Bureau of Investigation.
Defendant Information:
TIMOTHY JON OLIVER, 62
Plymouth, MN
Convicted:
- Wire fraud, 1 count
Sentenced:
- 41 months in prison
- $750,000 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Pittsburgh Police Officer Charged with Deprivation of Civil Rights, Falsifying ReportRead the Press Release
PITTSBURGH - A Pittsburgh resident has been indicted by a federal grand jury in on charges of deprivation of civil rights and falsification of a record, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on April 5, named Stephen Matakovich, 47, of Pittsburgh, Pa., as the sole defendant.
According to the indictment, on or about Nov. 28, 2015, Matakovich, a police officer of the Pittsburgh Bureau of Police, willfully deprived an individual identified as G.D. by punching G.D., pushing G.D., and repeatedly striking G.D., without justification, thereby causing bodily injury to G.D. The indictment further alleges that on or about Nov. 29, 2015, Matakovich made false statements in the record related to the incident, falsely justifying the force used against G.D.
The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Cindy K. Chung and Stephen S. Gilson are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pittsburgh Bureau of Police 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.
Ozark Man Pleads Guilty to False Tax Claim, Advertised on Craigslist for DependentsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Ozark, Mo., man pleaded guilty in federal court today to filing a false income tax return after he advertised on Craigslist to purchase identity information for children that he could claim as dependents as part of a larger tax fraud scheme.
Raheem L. McClain, 37, of Ozark, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a Feb. 23, 2016, federal indictment.
By pleading guilty today, McClain admitted that he engaged in a scheme to defraud the IRS by preparing and submitting false tax returns on behalf of himself and his girlfriend (who is not identified in court documents) between Jan. 28, 2012, and Feb. 4, 2016. McClain prepared and submitted false federal tax returns for the years 2011, 2012, 2013 and 2014 claiming dependents to which he was not entitled to claim. McClain also prepared and submitted false federal tax returns for his girlfriend for the years 2012, 2013, 2014 and 2015 claiming dependents to which she was not entitled to claim.
For tax returns filed for the calendar years 2011, 2012 and 2013 McClain admitted that he used the personal information for three dependents from a female he met on an on-line dating website to falsely claim these children as dependents and to falsely claim refunds for himself and his girlfriend. For a tax return filed for the calendar year 2014, McClain falsely listed his grandmother as a dependent on his girlfriend’s tax return.
McClain also admitted that he caused an advertisement to be posted on Craigslist on Jan. 16, 2015, stating:
“WANTED: KIDS TO CLAIM ON INCOME TAXES - $750 (SPRINGFIELD,
MO)
IF YOU HAVE SOME KIDS YOU ARENT CLAIMING, I WILL PAY YOU A
$750 EACH TO CLAIM THEM ON MY INCOME TAX. IF INTERESTED,
REPLY TO THIS AD.”
On Feb. 3, 2015, McClain caused a false federal tax return to be electronically signed and filed in his name for 2014, which listed three dependents by name, Social Security number and supposed relationship (two sons and one daughter). He obtained the personal information for these dependents from a woman who responded to his Craigslist advertisement.
On Feb. 4, 2015, McClain caused two false federal tax returns to be filed through the mail in his name for 2012 and 2013. Each of the returns listed the same three dependents; however, on these two returns the same individuals were listed as one son and two daughters. The woman who responded to the advertisement did not authorize McClain to use the dependent information on his 2012 tax return.
On Feb. 4, 2016, McClain caused a false federal tax return to be electronically signed and filed in the name of his girlfriend for 2015, which listed the same three dependents but claimed them as one nephew and two nieces. The woman who sold the dependent information was unaware that McClain used the dependents on his girlfriend’s 2015 tax return.
The total actual tax loss for this case, including both federal and state refunds, is $21,986. Under the terms of today’s plea agreement, McClain must pay restitution to the IRS and to the state of Missouri, including interest.
According to today’s plea agreement, McClain owes $597 in Missouri state income taxes for the years 2011, 2012, 2013 and 2014 for the fraudulent tax returns he filed in his own name. He also owes $806 in Missouri state income taxes for the years 2012, 2013 and 2014 for the fraudulent state income tax returns he filed in his girlfriend’s name.
Under federal statutes, McClain 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 Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation and the Missouri Department of Revenue.
Oklahoma City Man Faces 10 Years in Federal Prison After Admitting He Transmitted Program or Code to a Protected ComputerRead the Press Release
DALLAS — Benjamin Earnest Nichols, 37, of Oklahoma City, appeared yesterday before U.S. Magistrate Judge David L. Horan and pleaded guilty to an Information charging one count of knowingly causing the transmission of a program or code to a protected computer, announced U.S. Attorney John Parker of the Northern District of Texas.
Nichols, who is on bond, faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. A sentencing date was not set.
Nichols admitted that on or before May 2010, he knowingly and purposefully launched a distributed denial of service (DDOS) attack against mcgrewsecurity.com, a domain name and webserver owned by RWM, in an attempt to cause damage to the protected computer system and deny service to mcgrewsecurity.com, causing loss during a one-year period of between $5,000 and $6,500.
According to documents filed in the case, a (now) convicted defendant, Jesse McGraw, a former contract security guard at the North Central Medical Plaza in Dallas, was arrested in June 2009 on a criminal complaint filed in the Northern District of Texas that charged him with accessing, without authorization, protected computers in a medical facility. McGraw was indicted in July 2009, and in May 2010, he pleaded guilty to two counts of transmission of malicious code. McGraw was sentenced in March 2011 to serve a total of 110 months in federal prison.
At the time of his criminal conduct, McGraw was the self-proclaimed leader of the Electronic Tribulation Army (ETA), a hacking group. Nichols and others were also members of the ETA. McGraw intended to cause the remotely-controlled medical center computers to participate in a DDOS attack on a rival hacker group.
After interacting with RWM on blogs and in chat rooms, Nichols got angry at RWM for posting what he considered to be false and disparaging remarks on the blog at mcgrewsecurity.com. Nichols then used various means to harass and mock RWM, including setting up a derogatory website for RWM, posting disparaging photo-shopped photographs of RWM, and ordering sex toys to be sent to RWM’s home. In addition, Nichols also created/repurposed a bot that used computer code to respond to certain keywords by transmitting random insults and profanity to RWM’s internet relay chat (IRC) channel.
The Federal Bureau of Investigation is conducting the investigation. Assistant U.S. Attorney C.S. Heath is in charge of the prosecution.
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Oil Company Sentenced for Multiple Felonies Related to Violations of Offshore Oil Production Safety and Environmental RegulationRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Louisiana announced that ENERGY RESOURCE TECHNOLOGY GOM, LLC (ERT), was sentenced today to three years of probation and ordered to pay a $4 million fine and $200,000 community service payment by U.S. District Judge Ivan L.R. Lemelle after having pled guilty to two felony counts of violating the Outer Continental Shelf Lands Act and two felony counts of violating the Clean Water Act related to conduct on its offshore oil production facilities in the Gulf of Mexico. During the period of probation, ERT, its subsidiaries, agents and affiliated business entity Talos Energy Offshore, LLC, and employees thereof, will be required to comply with a Safety and Environmental Compliance Plan.
According to court documents, on or about November 26, 2012, ERT knowingly and willfully failed to comply with the regulations for hot work on its offshore production platform known as Ship Shoal 225. Specifically, contractors for ERT violated Title 30, Code of Federal Regulation, Section 250.113(c)(4), which mandates that welding and associated activities, also known as hot work, on offshore facilities shall not take place within 10 feet of a well bay unless production in that area is shut-in.
On or about November 27, 2012, on Ship Shoal 225, ERT knowingly and willfully failed to comply with the regulations for blowout preventer testing. A blowout preventer system is designed to ensure well control and prevent potential release of oil and gas and possible loss of well control. According to the Code of Federal Regulations, the blowout preventer system must be pressure tested at regular intervals, and the entire system must pass the pressure tests prior to resuming normal operations. According to Title 30, Code of Federal Regulations 250.617, the results of the pressure testing, including any problems or irregularities observed during the testing and the actions taken to remedy the problems, must be recorded. The blowout preventer test record and pressure chart must be signed and dated by the onsite representative as correct. The blowout preventer pressure chart and operations log are required to be maintained on the platform and available for inspection by BSEE.
According to the pressure chart for the tests conducted by ERT’s contractors on November 27, 2012, only 6 of the 7 required components were tested. The chart showed pressure testing failures that required the workers on the platform to re-test the blowout preventer system. However, at the conclusion of the testing, the blowout preventer chart was not approved for accuracy by the ERT on-site representative on duty nor did the workers re-test the system. Then, on or about November 29, 2012, inspectors with BSEE came onboard the platform at Ship Shoal 225 for a routine inspection and requested blowout preventer testing records. ERT could not produce an acceptable pressure test chart because of the deficiencies in the November 27, 2012 testing.
ERT also violated the Clean Water Act by tampering with the method of collecting the monthly overboard produced water discharge samples to be tested for oil and grease content pursuant to its NPDES permit. In Spring 2014, ERT became suspicious that contract operators were manipulating the integrity of the overboard produced water samples at some of its platforms by filtering the sample through coffee filters or other similar means to ensure that ERT would not be found to be in violation of its Permit. Although the Discharge Monitoring Reports for the platforms from October 2012 through March 2014, showed that the platforms were not discharging oil and grease in excess of the permit requirements, when ERT began an investigation, the results of which it self-reported to the United States, and took the samples in accordance with the Permit requirements, multiple platforms were shown to be in violation of the monthly discharge allowances. From April 2014 through June 2014, discharge monitoring samples correctly taken by ERT showed multiple Gulf of Mexico platforms, including High Island 557A, South Marsh Island 107A, Ship Shoal 225, Ship Shoal 224A, East Cameron 346A, Eugene Island 302C, South Timbalier 63A, Vermilion 331A and 171A, to be discharging oil and grease in excess of their monthly allowance under the Permit.
ERT’s most recent Clean Water Action violation occurred on or about June 9, 2015. On that day, two contract operators on an ERT oil production platform in the Gulf of Mexico at platform Vermilion 195A were engaged in bleeding pressure from the production casing on a plugged well. Operators routinely encounter liquid, including pollutants such as well bore fluid, acid, and hydrocarbon/oil residue, when bleeding pressure from well casings, and therefore precautions against an unpermitted discharge into the Gulf of Mexico should be taken. On or about June 9, 2015, the two contract operators onboard VR 195A did not take any precaution against a discharge of pollutants when they began bleeding down the pressure from the production casing. The contract operators attached a hose to the valve from which the casing pressure was to be released and put the end of the hose at the edge of the platform, allowing well bore fluid mixed with hydrocarbons to shoot out over the Gulf of Mexico falling into the water below in violation of the Clean Water Act.
“This is an excellent example of federal agencies working together, collaboratively and effectively, to ensure that oil and gas companies operating in areas within the Department's jurisdiction meet their professional and legal responsibilities,” stated Ron Gonzales, Special Agent in Charge of the Department of Interior-OIG-Energy Investigations Unit. “Matters of public safety and risk of environmental harm are included among the OIG's highest priorities, and we stand ready to work with the DOJ, BSEE, and the EPA to hold those violators accountable."
“It’s imperative that energy extraction be done responsibly and in ways that doesn’t put human health and the environment at risk,” said Ted Stanich, Acting Director of EPA’s criminal enforcement program. “When oil and gas operators cut corners and break the law, EPA will work with its law enforcement partners to hold them accountable in order to protect human health and the Gulf Coast ecosystem from harm.”
The case was investigated by the Department of Interior-Office of Inspector General (Energy Investigations Unit) with assistance from the Investigations and Review Unit, Bureau of Safety and Environmental Enforcement and the Environmental Protection Agency-Criminal Investigation Division.
The case was prosecuted by Assistant United States Attorney Emily K. Greenfield of the United States Attorney’s Office’s National Security Unit.
Northern California Man Sentenced to 30 Years in Prison for Interstate Travel to Engage in Sexual Acts with a MinorRead the Press Release
94 Minor Victims Identified Through Federal Investigation
Blake Robert Johnston, 42, of Martinez, California, was sentenced to 30 years in prison late yesterday and ordered to serve a lifetime on supervised release for traveling across state lines with the intent to engage in sexual acts with a minor, announced Acting U.S. Attorney Brian Stretch and Special Agent in Charge Ryan L. Spradlin for Homeland Security Investigations.
Johnston pleaded guilty on Dec. 1, 2015, to travel with intent to engage in illicit sexual conduct with a minor. According to the plea agreement, Johnston admitted to flying to Oregon for the purpose of engaging in a sexual act with a 14-year-old victim. Johnston also admitted that, approximately a week later, he drove to Oregon, picked up the victim, drove her to California and engaged in sexual acts with her at his home in Martinez.
Johnston was indicted by a federal grand jury on April 2, 2015. He was charged with: travel with intent to engage in illicit sexual conduct with a minor; transportation of a minor with intent to engage in criminal sexual activity; online enticement of a minor, production of child pornography (two counts with different victims); possession of child pornography; and distribution of child pornography.
According to the criminal complaint, this investigation began in October of 2014, when the first identified victim’s mother called police in Salem, Oregon, to report that her 14-year-old daughter was missing. Based on mobile phone records and the victim’s computer history, Salem police were able to determine the probable location of the victim and the identity of the suspect. Within 24 hours of the victim’s disappearance, Martinez police found the missing girl in Johnston’s bed. According to a status conference update filed by the government, a hard drive seized from Johnston’s bedroom contained approximately 500 folders labeled with different females’ names. The majority of those 500 folders each appear to contain images and/or videos of child pornography no law enforcement investigators had previously encountered.
At the time the government’s sentencing memorandum was filed, investigators identified 94 minor victims, from at least 30 states and six countries, whom Johnston enticed into creating child pornography or sexually exploited online. Investigators confirmed that four minor victims met with Johnston and engaged in illicit sexual activity with him. In Johnston’s communications with underage victims, he encouraged the girls to commit harmful and violent acts such as cutting themselves, penetrating their bodies with foreign objects, strangulation and drug abuse.
“Blake Johnston sexually exploited an untold number of children to satisfy his demented fantasies,” said Acting U.S. Attorney Stretch. “Today he was sentenced to 30 years in prison, a just sentence we can only hope provides some measure of closure to the victims and their families who had to endure Johnston’s torment. This office remains vigilant, ready to prosecute child predators who troll the internet targeting the most vulnerable among us.”
“A cyber monster’s perverse desires often turn into physical victimization and a child’s worst nightmare,” said Special Agent in Charge Spradlin. “While we are satisfied with the 30 year sentence for the horrific crimes committed, we must remember the young victims who are left with permanent psychological, physical and emotional scars. HSI works tirelessly with our law enforcement partners to seek out and bring to justice those who mercilessly exploit children.”
During the sentencing hearing before the U.S. District Judge Jeffrey S. White for the Northern District of California, some of the victims and their parents testified about the impact of Johnston’s actions. One of the victims, who was between 13 and 14 years old at the time of the offenses, told Johnston during the sentencing hearing, “You took away my childhood. You took me away from my family. You killed who I could have been. But I am free now, free to live without fears.” Another minor victim told the judge that “In November of 2014, when Homeland Security contacted me . . . when I found out the nature of the situation, I was sick to my stomach.” “Telling my mother broke her heart because she had no idea whatsoever of what was going on.” Two mothers of victims said that they had no idea what was going on with their daughters until Homeland Security agents showed up at their door. One mother of a teenage victim told the judge that her family and her daughter have been dealing with nightmares almost every night.
In handing down the sentence, U.S. District Judge White described Johnston’s conduct as “unusually heinous,” “cruel, degrading and completely inhumane to other individuals and it is a sad day for our society when people engage in the kind of behavior that the defendant [did].” U.S. District Judge White said that Johnston “preyed upon [the child victims’] low self-esteem” and used “extreme cunning, guile, intelligence, strategies and a lot of thought and a lot of skill.” U.S. District Judge White said that, in all of his years as a judge, the “Court has never seen . . . such serious, heinous behavior.”
U.S. District Judge White sentenced the defendant to a lifetime period of supervised release and ordered no contact with victims or minors without the permission of his probation officer. Johnston must register as a sexual offender as required by state law. Full restitution to the victims of defendant’s crimes will be ordered, and the court will determine the final restitution amounts on June 28. The defendant has been detained since his arrest, so he will immediately begin serving his sentence.
Assistant U.S. Attorneys Maureen Bessette and Christina McCall are prosecuting the case with the assistance of Vanessa Vargas Quant, Melissa Dorton and Patty Lau. The prosecution is the result of an investigation by: Homeland Security Investigation’s Cyber Crimes Child Exploitation Group; Martinez Police Department; Salem Police Department in Oregon; the Contra Costa County District Attorney’s Office; the Malaysia Royal Police; numerous law enforcement agencies in the United Kingdom; the Irish Garda; the Royal Canadian Mounted Police; and the Australian Federal Police.
Niagara Falls Man Sentenced for Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Jeremy Scouten, 37, of Niagara Falls, NY, who was convicted of possession of child pornography, was sentenced to 60 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorneys Stephanie Lamarque and Kathleen A. Lynch, who handled the case, stated that on August 6, 2012, law enforcement officers executed a search warrant at the 2502 Falls Street residence of the defendant. Officers recovered a computer being used by Scouten. A subsequent forensic examination determined that the computer contained approximately 200 images and 17 videos of child pornography. Some of the images included children under the age of 12 years old depictions of violence.
The sentencing is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security investigations, under the direction of Special Agent in Charge James C. Spero.
New Mexico Man Sentenced to 20 Years for Sexual Exploitation of a ChildRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Albuquerque, New Mexico, man was sentenced in federal court today for transporting a 13-year-old victim from Henry County, Mo., across state lines to engage in illicit sexual activity.
Raymond C. Vallia, III, 56, of Albuquerque, was sentenced by U.S. District Judge Beth Phillips to 20 years in federal prison without parole.
On Nov. 17, 2015, Vallia pleaded guilty to transporting a minor across state lines with the intent to engage in sexual activity.
On March 29, 2015, deputies with Henry County, Mo., Sheriff’s Department responded to a report of a missing 13-year-old female, identified in court documents as MV. During the course of the investigation law enforcement agents determined that MV met Vallia through a social networking Web site and that he had picked up MV at her home with the intent that they would live in an apartment in New Mexico.
New Mexico State Police saw a vehicle matching the description of Vallia’s vehicle on Interstate 40 in New Mexico on March 30, 2015. At that time the vehicle was pulled over, MV was recovered and Vallia was arrested.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI, the Henry County, Mo., Sheriff’s Department, the New Mexico State Police and the Amarillo, Texas, Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Nashville Tax Preparer Sentenced for Conspiracy and Filing False Tax ReturnsRead the Press Release
Joshua Gotwe Chinamora, 37, of Plano, Texas, was sentenced on April 4, 2016, to 18 months in prison, followed by three years supervised release, on charges of conspiracy and filing false tax returns, announced David Rivera, U.S. Attorney for the Middle District of Tennessee and Tracey D. Montaño, Special Agent in Charge, IRS – Criminal Investigation. United States District Court Judge Todd J. Campbell also ordered Chinamora to pay restitution of $140,705.00 to the IRS.
On November 9, 2015, Chinamora pleaded guilty to two counts of an 11-count indictment, previously filed on March 26, 2014, charging Chinamora and co-defendant, Moven Mpofu, with conspiracy and preparing false tax returns. Chinamora admitted that between January 2007 and April 2010, he and Mpofu operated Acura Tax Service (ATS) in Nashville, Tennessee, and prepared and filed approximately 58 false tax returns. The false returns, which were electronically transmitted to the IRS from the ATS Nashville office, each claimed false refunds ranging from $1,400 to $7,600. The false entries on the returns included filing status, moving expenses, medical expenses, gifts to charity, child and dependent care credits, education credits and dependent credits.
The individuals for whom Chinamora and Mpofu prepared and filed returns did not provide the defendants with the false information and did not know that the returns were falsely prepared.
Mpofu is currently a federal fugitive and his case remains pending before the court. He is presumed innocent until proven guilty in a court of law.
This investigation was conducted by IRS-Criminal Investigation. Assistant U.S. Attorney Sandra Moses represented the United States.
Moses Lake, Washington Man Sentenced to over 22 Years in Connection with a Shootout on Spokane’s Lower South HillRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Arthur Frank Cardenas, age 37, of Moses Lake, Washington, was sentenced after a jury previously found him guilty on April 16, 2015, of:
- being a felon in possession of a firearm (Count 1);
- being a felon in possession of an explosive device (Count 2);
- possessing an unregistered firearm (Count 3);
- possessing pure methamphetamine with intent to distribute it (Count 4); and
- possessing a firearm in furtherance of a drug trafficking crime (Count 5).
United States District Judge William Fremming Nielsen sentenced Cardenas to a 270 month term of imprisonment, to be followed by a five year term of court supervision after he is released from federal prison.
According to information disclosed during the court proceedings, on April 26, 2012, Cardenas participated in an exchange of gunfire with another individual at a duplex located on the lower South Hill in Spokane, Washington. Cardenas was injured during the exchange of gunfire and was taken to Deaconess Medical Center for treatment. A subsequent investigation revealed that Cardenas was armed with a Walther model PPK/S .380 caliber handgun during the shootout and that bullets from that firearm struck a nearby residence. In the trunk of Cardenas’ vehicle, law enforcement officers found a hand grenade, explosive powder, 243.9 grams of pure methamphetamine, and approximately $17,410. Cardenas had another $3,000 on his person. During the sentencing hearing, Judge Nielsen noted that Cardenas had a lengthy criminal history that resulted in a high offender score.
Michael C. Ormsby stated, “Cardenas’ conduct presented a danger to citizens here in Spokane, Washington. The twenty two and a half year sentence reflects the seriousness of Cardenas’ criminal conduct. I commend the Spokane Police Department and the Bureau of Alcohol, Tobacco, and Firearms for the thorough investigation of this matter. The United States Attorney’s Office for the Eastern District of Washington will aggressively prosecute firearm and drug trafficking violations that occur within this District.”
This investigation was conducted by Spokane Police Department with assistance from the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Timothy J. Ohms, an Assistant United States Attorney for the Eastern District of Washington.
Mine Workers Union Secretary Charged with Embezzling FundsRead the Press Release
PITTSBURGH – A Fayette County resident has been indicted by a federal grand jury in Pittsburgh on a charge of union embezzlement, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on April 5, named Daniel P. Ternitsky, Jr., of Keisterville, Pennsylvania, as the sole defendant.
According to the indictment, Ternitsky, while serving as the Financial Secretary of the United Mine Workers of America, Local 285, AFL-CIO, embezzled approximately $10,680.05 from the union by cashing checks drawn on the union’s checking account for unauthorized expenses during the period from Aug. 12, 2013 through Dec. 20, 2013.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Department of Labor, Office of Labor-Management Standards 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.
Michael Jenkins of Barre, Vermont Sentenced to A Year and A Day for Possession of A Firearm as A Convicted FelonRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Michael Jenkins, 24, of Barre, Vermont was sentenced today to 12 months and one day for possession of a firearm as a convicted felon. Jenkins also agreed to the forfeiture of a 12-gauge shotgun as part of his plea agreement with the government. U.S. District Judge Geoffrey W. Crawford also ordered that Jenkins serve a three-year period of supervised release following his incarceration.
According to court records, in April 2013, Jenkins entered a stranger’s home, ultimately stealing a pick-up truck from the property. The homeowner pursued the pick-up truck as Jenkins drove off the road and through a field into the woods. Jenkins then exited the truck and fled on foot, eluding pursuing law enforcement. He was apprehended later that evening in Eden, Vermont. In the ensuing state prosecution, Jenkins received a felony conviction for unlawful trespass of an occupied residence, and a sentence of six months to three years in prison. This felony conviction prohibited Jenkins from possessing firearms.
Three months later on November 8, 2013, Jenkins signed a conditional re-entry agreement with the Vermont Department of Corrections allowing him to continue his sentence on furlough while residing with his grandmother in Williamstown, Vermont. Among those conditions, he agreed not to possess weapons or firearms. Four days later, Barre Probation and Parole received information that Jenkins was in possession of a firearm. A search of Jenkins’ bedroom yielded a 12-gauge shotgun containing a shell in the chamber and a magazine loaded with five additional shells. Probation officers also located numerous handgun rounds and several knives in the bedroom.
Previous to his federal indictment in this case, Jenkins had three state convictions whose offense conduct involved possession of loaded firearms.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of Barre Probation and Parole. Assistant U.S. Attorney Kevin J. Doyle handled the prosecution for the government. Michael Jenkins was represented by Assistant Federal Defender Steven L. Barth.
Mexican national sentenced to 2 years in prison for reentering the United States without permissionRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Mexican national was sentenced Monday to 24 months in prison for reentering the United States without first obtaining permission.
Efrain Mendoza-Guevara, 31, of Veracruz, Mexico, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of reentry of a removed alien. According to evidence presented at the November 12, 2015 guilty plea, the defendant was arrested for driving while intoxicated on May 16, 2015, in Bossier City, La. Upon further investigation, it was discovered that Mendoza-Guevara had been deported in February of 2004 after being convicted of a felony and had not received permission to reenter the United States.
Homeland Security Investigations-Immigrations and Customs Enforcement and the Bossier City Police Department conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Mexican National Sentenced for Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RAYMUNDO CUEVAS-SOTO, age 40, a citizen of Mexico, was sentenced today after previously pleading guilty to a one-count Indictment for illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
U.S. District Court Judge Sarah S. Vance sentenced CUEVAS-SOTO to time served, followed by one year of supervised release, and a $100 special assessment. Additionally, CUEVAS-SOTO will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on October 31, 2015, the defendant was encountered by federal agents pursuant to a traffic stop. CUEVAS-SOTO had been previously removed from the United States on July 24, 2013.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Metairie Man Sentenced to over 10 Years in Prison for Trafficking a Minor into New Orleans to Work as a ProstituteRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TORREY LEDELL DAVIS, age 44, who last resided in Metairie, was sentenced today after previously pleading guilty to interstate transportation of a minor for the purpose of engaging in criminal sexual activity.
U.S. District Judge Sarah Vance sentenced DAVIS to 121 months imprisonment, to be followed by 10 years of supervised release. Additionally, DAVIS is required to register as a sex offender pursuant to the Sex Offender Registration Notification Act.
According to the court documents, in November 2012 DAVIS was contacted by an individual living in the Jackson, Mississippi area. That individual inquired whether DAVIS would be willing to train the victim, who had just turned sixteen years old, to work as a prostitute. DAVIS agreed, and on November 26, 2012, drove to the Scottish Inn in Jackson, Mississippi, picked up the victim, and drove her back to DAVIS’S residence in Metairie. Once at the Metairie residence, DAVIS forced the victim to dress provocatively and pose for sexually suggestive photographs, which he saved on his computer. The pictures were then used to create a prostitution advertisement on an online classified advertisement website often used to promote prostitution. DAVIS instructed the victim how to work as a prostitute, how to solicit clients, and how to avoid being caught by law enforcement officials. DAVIS also arranged for the victim to be paired with a female who had worked as a prostitute for DAVIS for approximately one year. At DAVIS’s instruction, the female drove the victim to the French Quarter of New Orleans to work as a prostitute. While in the French Quarter that evening, law enforcement officials arrested the minor for prostitution after an undercover officer arranged for the victim to perform a sexual act on the officer in exchange for $500.
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.”
The investigation was initiated by the New Orleans Police Department and investigated by the Federal Bureau of Investigation and the Louisiana State Police Special Victims Unit. The prosecution of this case was handled by Assistant United States Attorneys Jordan Ginsberg and K. Paige O’Hale.
Martinez Man Sentenced to 30 Years in Prison for Interstate Travel to Engage in Sexual Acts with A MinorRead the Press Release
OAKLAND – Blake Robert Johnston was sentenced to 30 years in prison late yesterday, and ordered to serve a lifetime on supervised release, for traveling across state lines with the intent to engage in sexual acts with a minor, announced United States Attorney Brian Stretch and Homeland Security Investigations Special Agent in Charge Ryan L. Spradlin.
Johnston pleaded guilty on December 1, 2015, to violating 18 U.S.C. § 2423(b), travel with intent to engage in illicit sexual conduct with a minor. According to the plea agreement, Johnston admitted to flying to Oregon for the purpose of engaging in a sexual act with a 14-year-old victim. Johnston also admitted that, approximately a week later, he drove to Oregon, picked up the victim, drove her to California, and engaged in sexual acts with her at his home in Martinez.
Johnston, age 42, of Martinez, California, was indicted by a federal grand jury on April 2, 2015. He was charged with: Travel with Intent to Engage in Illicit Sexual Conduct with a Minor; Transportation of a Minor with Intent to Engage in Criminal Sexual Activity; Online Enticement of a Minor, Production of Child Pornography (two counts with different victims); Possession of Child Pornography; and Distribution of Child Pornography.
According to the criminal complaint, this investigation began in October of 2014, when the first identified victim’s mother called police in Salem, Oregon, to report that her 14-year-old daughter was missing. Based on mobile phone records and the victim’s computer history, Salem police were able to determine the probable location of the victim and the identity of the suspect. Within 24 hours of the victim’s disappearance, Martinez police found the missing girl in Johnston’s bed. According to a status conference update filed by the government, a hard drive seized from Johnston’s bedroom contained approximately 500 folders labeled with different females’ names. The majority of those 500 folders each appear to contain images and/or videos of child pornography no law enforcement investigators had previously encountered.
At the time the government’s sentencing memorandum was filed, investigators identified 94 minor victims, from at least 30 states and six countries, whom Johnston enticed into creating child pornography or sexually exploited online. Investigators confirmed that four minor victims met with Johnston and engaged in illicit sexual activity with him. In Johnston’s communications with underage victims, he encouraged the girls to commit harmful and violent acts such as cutting themselves, penetrating their bodies with foreign objects, strangulation, and drug abuse.
“Blake Johnston sexually exploited an untold number of children to satisfy his demented fantasies," said U.S. Attorney Brian J. Stretch. "Today he was sentenced to 30 years in prison, a just sentence we can only hope provides some measure of closure to the victims and their families who had to endure Johnston's torment. This office remains vigilant, ready to prosecute child predators who troll the internet targeting the most vulnerable among us.”
“A cyber monster's perverse desires often turn into physical victimization and a child’s worst nightmare,” said Ryan L. Spradlin, HSI Special Agent in Charge. “While we are satisfied with the 30 year sentence for the horrific crimes committed, we must remember the young victims who are left with permanent psychological, physical and emotional scars. HSI works tirelessly with our law enforcement partners to seek out and bring to justice those who mercilessly exploit children.”
During the sentencing hearing before the Hon. Jeffrey S. White, U.S. District Judge, some of the victims and their parents testified about the impact of Johnston’s actions. One of the victims, who was between 13 and 14 years old at the time of the offenses, told Johnston during the sentencing hearing, “You took away my childhood. You took me away from my family. You killed who I could have been. But I am free now, free to live without fears.” Another minor victim told the judge that “In November of 2014, when Homeland Security contacted me . . . when I found out the nature of the situation, I was sick to my stomach.” “Telling my mother broke her heart because she had no idea whatsoever of what was going on.” Two mothers of victims said that they had no idea what was going on with their daughters until Homeland Security agents showed up at their door. One mother of a teenage victim told the judge that her family and her daughter have been dealing with nightmares almost every night.
In handing down the sentence, Judge White described Johnston’s conduct as “unusually heinous,” “cruel, degrading and completely inhumane to other individuals, and it is a sad day for our society when people engage in the kind of behavior that the defendant [did].” Judge White said that Johnston “preyed upon [the child victims’] low self-esteem” and used “extreme cunning, guile, intelligence, strategies, and a lot of thought and a lot of skill.” Judge White said that, in all of his years as a judge, the “Court has never seen . . . such serious, heinous behavior.”
Judge White sentenced the defendant to a lifetime period of supervised release, and ordered no contact with victims or minors without the permission of his probation officer. Johnston must register as a sexual offender as required by state law. Full restitution to the victims of defendant’s crimes will be ordered, and the Court will determine the final restitution amounts on June 28, 2016. The defendant has been detained since his arrest, so he will immediately begin serving his sentence.
Assistant U.S. Attorneys Maureen Bessette and Christina McCall are prosecuting the case with the assistance of Vanessa Vargas Quant, Melissa Dorton, and Patty Lau. The prosecution is the result of an investigation by: Homeland Security Investigation’s Cyber Crimes Child Exploitation Group; Martinez Police Department; Salem Police Department in Oregon; the Contra Costa County District Attorney’s Office; the Malaysia Royal Police; numerous law enforcement agencies in the United Kingdom; the Irish Garda; the Royal Canadian Mounted Police; and the Australian Federal Police.
Investigators believe there may be hundreds of other victims not yet identified. Therefore, anyone with information related to this case is urged to call HSI’s national toll-free tip line at 1-866-DHS-2-ICE (1-866-347-2423), or the Martinez Police Department’s tip line at 925–372–3457.
Manitowoc Couple Indicted on Drug and Firearm ChargesRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin, announced that on April 5, 2016, a federal grand jury returned an indictment against Dominique M. Hope (age: 23) and Tamara R. Rudd (age: 23) both of Manitowoc, Wisconsin.
Hope faces charges alleging he was a felon in possession of a firearm, possessed marijuana with the intent to distribute, and possessed a firearm in furtherance of a drug conspiracy, contrary to Title 18, United States Code, Sections 922(g)(1), 924(c)(1)(A), and Title 21, United States Code, Sections 841(a) and 841(b)(1)(D). He faces penalties ranging from a mandatory five years imprisonment up to a life sentence, a $500,000 fine, and a lifetime of supervised release.
The allegation against Rudd contends that she aided and abetted Hope’s possession of a firearm knowing he was a convicted felon, contrary to Title 18, United States Code, Sections 922(g) and 2. She faces up to 10 years imprisonment, a $250,000 fine, and 3 years of supervised release.
This case was investigated by the U.S. Drug Enforcement Administration, the Manitowoc County MEG Unit, the City of Manitowoc Police Department, and the Manitowoc County Sheriff’s Office. The case will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove them guilty beyond a reasonable doubt.
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Man Sentenced to 38 Months in Prison for Threatening Tribal Police OfficersRead the Press Release
PLATTSBURGH, NEW YORK – Roy Redeye, age 39, of Cortland and Akwesasne, New York, was sentenced today to serve 38 months in prison for threatening to injure Saint Regis Mohawk Tribe Police Department Officers.
The announcement was made by United States Attorney Richard S. Hartunian, Saint Regis Mohawk Police Chief Matthew Rourke, and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations.
U.S. District Judge Lawrence E. Kahn also sentenced Redeye to serve a 3-year term of supervised release, to be served after Redeye is released from prison.
As part of his plea on December 9, 2015, Redeye admitted that in February 2015, he posted messages to Facebook in which he threatened to kill or injure three Saint Regis Mohawk Tribe Police Department Officers.
U.S. Attorney Richard S. Hartunian stated: "The defendant threatened to injure and kill police officers and received a sentence that reflects the seriousness of his crime. This successful prosecution is the result of the excellent and close cooperation among federal, tribal and local law enforcement that my Office has fostered in the Northern District of New York."
Saint Regis Mohawk Tribe Police Chief Matthew Rourke stated: "This was a good outcome for public safety at all levels and the community as a whole. Internet safety is the key, be aware that your actions, including threats, and especially against law enforcement, will be taken seriously." Police Chief Rourke thanked Homeland Security Investigations, the Cortland Police Department, and the United States Attorney for their combined effort.
This case was investigated and assisted by the Saint Regis Mohawk Tribal Police Department, Homeland Security Investigations, the Cortland Police Department, and the Cortland County Sheriff’s Office. Assistant United States Attorney Elizabeth Horsman prosecuted the case under United States Attorney Hartunian’s Indian Country public safety initiative.
Los Angeles drug dealer sentenced to over seven years in Federal prison for methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A Los Angeles man was sentenced to seven and a half years in federal prison today for a drug crime, announced Acting United States Attorney Carol Casto. Terry Cunningham, 32, previously pleaded guilty in December 2015 to distribution of methamphetamine.
Cunningham admitted that on July 14, 2015, he shipped a package containing methamphetamine to an undercover Kanawha County Deputy Sheriff working with the Metropolitan Drug Enforcement Network Team. After the undercover officer picked up the package, Cunningham provided instructions for making payment for the shipment using MoneyGram. Cunningham went to pick up the MoneyGram payment at a Walmart in Los Angeles, and immediately texted the undercover officer that he had received payment. Agents conducting surveillance in Los Angeles arrested Cunningham after observing him collecting the payment.
The investigation was conducted by the United States Postal Inspection Service, Homeland Security Investigations, the Metropolitan Drug Enforcement Network Team, and the Kanawha County Sheriff’s Office. The sentence was imposed by United States District Judge Thomas E. Johnston.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities, including the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and other drugs in communities across the Southern District.
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Kansas Tax Return Preparer Pleads Guilty to Preparing False ReturnsRead the Press Release
The owner of a tax return preparation business in Kansas City, Kansas, pleaded guilty today to preparing false income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Barry Grissom for the District of Kansas.
Antione Dorsey, 38, of Kansas City, and owner of Day-1 Tax Service, pleaded guilty to one count of preparing false tax returns. In his plea, Dorsey admitted including false items on his clients’ income tax returns without their knowledge or authorization. Dorsey falsely inflated taxpayers’ incomes by falsifying gross receipts listed on Schedules C. As a result, taxpayers appeared to qualify for Earned Income Credits that falsely increased their tax refunds. In other instances, Dorsey falsified itemized deductions reported on the taxpayers’ Schedules A to fraudulently increase the taxpayers’ refunds.
Dorsey caused fraudulent refund claims of approximately $74,400 to be made to the Internal Revenue Service (IRS) and approximately $13,980 in fraudulent claims to be made to the Kansas Department of Revenue.
Sentencing is set for June 27. He faces a statutory maximum penalty of three years in prison and restitution. Acting Assistant Attorney General Ciraolo and U.S. Attorney Grissom commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorney John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Scott Rask, who prosecuted the case.
Kansas City, Kan., Tax Preparer Pleads Guilty to Preparing False ReturnsRead the Press Release
KANSAS CITY, KAN. - The owner of a tax preparation business in Kansas City, Kan., pleaded guilty today to preparing false income tax returns, U.S. Attorney Barry Grissom and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced.
Antoine Dorsey, 38, Kansas City, Kan., owner of Day-1 Tax Service, pleaded guilty to one count of preparing false tax returns. In general, Dorsey falsely inflated taxpayers’ incomes by falsifying gross receipts listed on Schedule C. As a result, taxpayers appeared to qualify for the Earned Income Credit that increased their tax refunds.
Dorsey caused fraudulent refund claims of approximately $74,487 to be made to the Internal Revenue Service and approximately $13,980 in fraudulent claims to be made to the Kansas Department of Revenue.
Sentencing is set for June 27, 2016. He faces a maximum penalty of three years in federal prison and an order of restitution. Grissom commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Scott Rask and John Mulcahy from the Justice Department Tax Division, who prosecuted the case.
Justice Department Sues to Block Halliburton’s Acquisition of Baker HughesRead the Press Release
Merger would eliminate significant head-to-head competition in oilfield services industry
The Department of Justice filed a civil antitrust lawsuit today seeking to block Halliburton Company’s proposed acquisition of Baker Hughes Inc., alleging that the transaction threatens to eliminate competition, raise prices and reduce innovation in the oilfield services industry.
The department filed its lawsuit in the U.S. District Court for the District of Delaware, where both companies are incorporated. The complaint alleges that the acquisition – which the companies valued at $34 billion when announcing it – would combine two of the three largest oilfield services companies in the United States and the world, eliminating important head-to-head competition in markets for 23 products or services used for on- and off-shore oil exploration and production in the United States.
“The proposed deal between Halliburton and Baker Hughes would eliminate vital competition, skew energy markets and harm American consumers,” said Attorney General Loretta E. Lynch. “Our action makes clear that the Justice Department is committed to vigorously enforcing our antitrust laws. In the days ahead, we will continue to stand up for fair deals and free markets, and for the American people we are privileged to serve.”
“This transaction is unprecedented in the breadth and scope of competitive overlaps and antitrust issues it presents,” said Assistant Attorney General Bill Baer of the department’s Antitrust Division. “Halliburton and Baker Hughes are two of the three largest integrated oilfield service companies across the globe, and they compete to invent and sell products and services that are critical to energy exploration and production. We need to maintain meaningful competition in this important sector of our economy.”
During the department’s investigation, Halliburton proposed to remedy the significant harmful effects of the transaction by divesting a mix of assets extracted from certain business lines of the two companies. According to the complaint, the proposed divestitures would not include full business units but rather would be limited to certain assets, with the merged firm holding onto important facilities, employees, contracts, intellectual property, and research and development resources that would put the buyer of those assets at a competitive disadvantage. The proposed divestures mostly would allow Halliburton to retain the more valuable assets from either company while selling less significant assets to a third party. The complaint further alleges that this divesture would not replicate the substantial competition between the two rivals that exists today.
Halliburton is a Delaware corporation headquartered in Houston. Founded in 1919, Halliburton is the largest provider of services and products to the oil and gas industry in the United States. It has operations in approximately 80 countries and earned revenue of $23.6 billion in 2015.
Baker Hughes is a Delaware corporation headquartered in Houston. It was formed in 1987 with the merger of Baker International and Hughes Tool Company, both founded over 100 years ago. The third-largest provider of oilfield services in the world, Baker Hughes operates in more than 80 countries and earned revenue of $15.7 billion in 2015.
508 Compliant Version of United States v. Halliburton and Baker Hughes ChartJury Convicts Woburn Woman of $1.3 Million FraudRead the Press Release
BOSTON – Following a six-day trial, a Woburn woman was convicted yesterday in U.S. District Court in Boston in connection with defrauding over $1.3 million from investors.
Rosalind Herman, 60, was convicted by a jury on investment adviser fraud, tax fraud, wire fraud and conspiracy. U.S. District Court Judge William G. Young scheduled sentencing for June 29, 2016.
Herman owned and controlled companies in Massachusetts and Nevada that provided investment advice and sold insurance products to individual investors. From 2008 to March 2013, Herman and her business partner, Gregg Caplitz, pitched a new hedge fund company investment to existing clients. The purported investment was billed by Caplitz and Herman as a hedge fund company owned by Herman. No hedge fund ever existed, however, and the investment funds obtained from clients were used to fund personal expenses for Herman, her family and Caplitz. In total, more than a dozen victims lost more than $1.3 million in savings, most of which were retirement savings.
In addition, from 2003 to 2012, Herman failed to file accurate tax returns for herself and her companies, including the $1.3 million in investor funds she took from investors, and also by fabricating business expenses. In many instances during this time period, Herman failed to file any tax returns for herself or her companies.
Caplitz previously pleaded guilty to fraud and tax charges, and testified against Herman at trial. He is scheduled to be sentenced on May 17, 2016.
The charges of investment advisor fraud and conspiracy provides a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charge of tax fraud provides a sentence of no greater than three years in prison, one year of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charge of wire fraud provides a sentence of no greater than 20 years in prison, six years of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater.
Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. The U.S. Attorney’s Office acknowledges the assistance provided by the Securities and Exchange Commission. The case is being prosecuted by Assistant U.S. Attorneys Sara Miron Bloom and Mary B. Murrane of Ortiz’s Economic Crimes Unit.
Jury Convicts Palm Bay Man of Drug Trafficking and Firearm OffensesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found John Dwayne Riley (39, Palm Bay) guilty of possessing more than 500 grams of cocaine with the intent to distribute it, and possessing a firearm in furtherance of that drug-trafficking crime. He faces a mandatory minimum penalty of 10 years, up to 40 years, in federal prison. The sentencing hearing is set for June 23, 2016. Riley was indicted on November 18, 2015.
According to evidence presented at trial, on June 17, 2015, probation officers with the Florida Department of Corrections went to Riley’s house in response to an anonymous tip that he was dealing drugs. The officers observed powder cocaine inside a car in Riley’s garage, and they also found approximately one kilogram of individually packaged powder cocaine in one of Riley’s kitchen cabinets. During the execution of a search warrant later that evening, officers from the Palm Bay Police Department discovered an additional 5 grams of individually packaged heroin in another kitchen cabinet, and 59 grams of individually packaged crack cocaine in the car. Riley also had several items of drug paraphernalia, and the pans in his kitchen sink contained fresh crack cocaine residue. Officers found $1,000 in cash in Riley’s pocket, and recovered a loaded handgun where Riley had been seated on his living room sofa.
This case was investigated by the Palm Bay Police Department, the Drug Enforcement Administration, and the Florida Department of Corrections. It is being prosecuted by Assistant United States Attorney Embry J. Kidd.
Jamestown Man Charged with Transmitting Threatening CommunicationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today Michael Bush, 35, of Jamestown, NY, was arrested and charged by criminal complaint with transmitting communication containing a threat to injure the person of another. The charge carries a maximum of five years in prison, a fine of $250,000 or both.Assistant U.S. Attorney Caleb J. Petzoldt, who is handling the case, stated that according to the complaint, on February 26, 2016, Bush, a former officer with the Jamestown Police Department, posted a threat on the Jamestown, New York Topix forum page. The post contained a threat against two individuals.
The defendant made an initial appearance this morning before U.S. Magistrate Judge H. Kenneth Schroeder. A detention hearing is scheduled for April 7, 2016.
The complaint is the culmination of an investigation by the Jamestown Police Department, under the direction of Chief Harry Snellings and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Jail Employee Sentenced to Probation, Fined for Providing a Phone to an InmateRead the Press Release
JOHNSTOWN, Pa. – A resident of Philipsburg, Pa. has been sentenced in federal court to three years’ probation and a fine of $500 on her conviction of providing contraband to an inmate while an employee at Moshannon Valley Correctional Center.
United States District Judge Kim R. Gibson imposed the sentence on Jennifer L. Robins, 36.
According to information presented to the court, in July 2013 Robins provided a phone to an inmate, which is a prohibited object under prison regulations.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
Mr. Hickton commended the Office of the Inspector General of the United States Department of Justice for the investigation leading to the successful prosecution of Robins.
Indictment: Topeka Man’s Gun Crime Came Within Months of Release from PrisonRead the Press Release
TOPEKA, KAN. - A Topeka man was indicted Wednesday on a federal firearm charge that is alleged to have occurred within months of his release from federal prison in a similar case, U.S. Attorney Barry Grissom said.
Brandon E. Derr, 31, who is being held in the Shawnee County Jail, is charged with one count of unlawful possession of a firearm following a felony conviction. According to the federal Bureau of Prisons, Derr was released Sept. 18, 2015, after serving a 24-month sentence. In that case he was indicted in 2012. He pleaded guilty and was sentenced in 2013.
In the new indictment, it is alleged Derr possessed a Smith & Wesson 9 mm pistol on Nov. 12, 2015, in Topeka.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
OTHER GRAND JURY INDICTMENTS
Jason D. Bulger, 35, who is being held in the Shawnee County Jail, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Feb. 26, 2016, in Topeka, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Vondel S. Johnson, 32, who is being held in the CCA facility in Leavenworth, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred March 3, 2016, in Topeka, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Charges Ledyard Man with Federal Narcotics OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging DAMIEN BRYANT, 41, of Ledyard, with one count of possession with intent to distribute cocaine base (“crack”) and cocaine. The indictment was returned on March 29, 2016.
According to allegations contained in a previously-filed criminal complaint, in February 2016, the Stonington Police Department received information that BRYANT was distributing crack cocaine. On March 9, 2016, members of the Regional Community Enhancement Task Force and the Ledyard Police Department executed a state search and seizure warrant at BRYANT’s residence and seized crack cocaine, cocaine, marijuana, narcotics paraphernalia and more than $14,000 in cash. BRYANT was arrested at that time.
On March 5, 2010, BRYANT was sentenced in Bridgeport federal court to 42 months of imprisonment for distributing crack cocaine and violating the conditions of his supervised release from a prior federal conviction in the District of Rhode Island. He is currently serving a 10-year-term of federal supervised release.
BRYANT appeared yesterday before U.S. Magistrate Judge Robert A. Richardson in Hartford and entered pleas of not guilty to the charge in the indictment, and to violating the conditions of his supervised release.
If convicted, BROWN faces a maximum term of imprisonment of 20 years for the narcotics offense, and an additional term of imprisonment of up to 80 months for violating his supervised release.
BRYANT has been detained since his arrest.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Regional Community Enhancement Task Force, and the Ledyard, Stonington and Groton Town Police Departments. The case is being prosecuted by Assistant U.S. Attorney John H. Durham.
Independence Men Plead Guilty to Producing Child Porn, Face at Least 15 Years in PrisonRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Independence, Mo., men pleaded guilty in federal court today to producing child pornography.
Kenneth R. Davis, 35, and Randy Mull, 36, both of Independence, pleaded guilty in separate appearances before U.S. District Judge Roseann Ketchmark to the charge contained in a July 29, 2015, federal indictment.
By pleading guilty today, Davis and Mull each admitted that they aided and abetted each other to produce child pornography on July 15, 2010, by taking a series of pornographic photos of a 14-year-old child victim (identified as “John Doe #2) in their bedroom.
Under the terms of today’s plea agreement, Davis must pay $5,000 in restitution to each of five separate victims whose images of child sexual abuse he received or possessed; or $3,000 to each victim if he can pay restitution within 30 days of the sentencing date.
Under federal statutes, Davis and Mull are each subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 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 Catherine A. Connelly. It was investigated by the Independence, Mo., Police Department and the Kansas City, Kan., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Husband and Wife Nabbed at Port of Entry in El Paso Sentenced to Federal PrisonRead the Press Release
In El Paso, a husband and wife were sentenced to 188 months and 24 months in federal prison, respectively, for conspiring to possess with intent to distribute approximately four kilograms of cocaine announced United States Attorney Richard Durbin, Jr.; Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, El Paso Division; Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso; and, U.S. Customs and Border Protection El Paso Port Director Beverly Good.
Yesterday afternoon, United States District Judge Philip Martinez sentenced 52-year-old Manuel Bayona-Montes to 188 months in federal prison followed by five years of supervised release. On March 30, 2016, Judge Martinez sentenced Bayona’s wife, 52-year-old Ruth Bayona-Gandara, to 24 months in federal prison followed by two years of supervised release. Both defendants had previously pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine.
According to court records, on August 12, 2015, U.S. Customs and Border Protection authorities apprehended the defendants at the Paso Del Norte Port of Entry after discovering approximately four kilograms of cocaine concealed within their vehicle.
This joint investigation was conducted by DEA, HSI, U.S. Customs and Border Protection, and Internal Revenue Service-Criminal Investigation together with High Intensity Drug Trafficking Area (HIDTA) task force officers from the El Paso Police Department, El Paso County Sheriff’s Office, Anthony (TX) Police Department and the U.S. Border Patrol.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALEX JAVIER HERNANDEZ-MEJIA, age 22, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of removed alien.
U.S. District Sarah S. Vance sentenced HERNANDEZ-MEJIA to time served and a $100 special assessment. HERNANDEZ-MEJIA will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on or about November 9, 2015, HERNANDEZ-MEJIA was found in the United States after having been officially deported and removed on or about April 22, 2014.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Honduran National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ORLI DAGOBERTO ARGUETA-SANCHEZ, a/k/a Orli Dagoberto Argueta, age 27, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to the Bill of Information, on or about January 6, 2016, ARGUETA-SANCHEZ was found in the United States after having been officially deported and removed on or about November 7, 2008.
ARGUETA-SANCHEZ faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Ivan L.R. Lemelle set sentencing for May 25, 2016.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Health Care Fraud Charge Filed in Fayette County Addiction Specialists Inc. CaseRead the Press Release
PITTSBURGH – Four southwestern Pennsylvania residents have been indicted by a federal grand jury in Pittsburgh on multiple charges of distribution and dispensing of Schedule III and Schedule IV controlled substances, conspiracy and health care fraud United States Attorney David J. Hickton announced today.
The 238-count superseding indictment, returned on April 5, named Dr. Dominic W. Dileo, 67, of Uniontown, Pa., Rosalind Sugarmann, 61, of Allison Park, Pa., Brandon S. Eicher, 40, of Smithfield, Pa., and Louis M. Polito, 60, of Uniontown, Pa., as the defendants.
According to the superseding indictment, between January of 2013 and November of 2015, Dr. DiLeo, Sugarmann and Polito unlawfully dispensed or distributed Suboxone or Xanax on more than 200 occasions to Sugarmann and to two other persons whose names were not set forth in the superseding indictment. The superseding indictment further alleges that, from in and around February 2013 until in and around May of 2014, Sugarmann and Eicher defrauded Medicaid in connection with the performance of their duties at Addiction Specialists, Inc. (“ASI”). The superseding indictment describes Sugarmann as an owner of ASI and Eicher as the Clinical Director at ASI. The superseding indictment charges them with defrauding Medicaid by submitting bills to Medicaid for services which they knew were not covered by Medicaid, and by falsifying ASI medical records in preparation for an audit conducted on behalf of Medicaid.
The law provides for a maximum total sentence of 10 years in prison for each instance in which Suboxone was distributed, five years for each instance in which Xanax was distributed, ten years for health care fraud, plus a maximum fine of $250,000 for each count. 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 Shaun E. Sweeney and Stephen R. Kaufman are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Drug Enforcement Agency, U.S. Department of Health and Human Service, Office of Inspector General, Internal Revenue Service – Criminal Investigation, and the Pennsylvania Office of Attorney General 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.
Green Bay Man Indicted for Social Security Disability FraudRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin, announced that on April 5, 2016, a federal grand jury returned an indictment against Randall J. Frisque (age: 58) of Green Bay, Wisconsin.
Frisque is alleged to have illegally received approximately $117,500 in Social Security Administration Disability funds, contrary to Title 18, United States Code, Section 641. He faces up to 10 years imprisonment, a $250,000 fine, and 3 years of supervised release.
This case was investigated by the U.S. Social Security Administration and the Office of Inspector General for the Department of Health and Human Services. The case will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Gardiner Man Sentenced to Five Years for Robbing Two PharmaciesRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Rudger S. Ellis, 23, of Gardiner, Maine was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to five years in prison to be followed by three years of supervised release for committing two pharmacy robberies. He was also ordered to pay a $1,000 fine and $726 in restitution.
On February 7, 2015, Ellis entered the Rite Aid Pharmacy located on North Belfast Avenue in Augusta, Maine, wearing a hooded gray sweatshirt, blue and white athletic pants, and gloves and covering his face with a plaid cloth. Ellis approached the counter and demanded that the pharmacist give him oxycodone, Oxycontin, and Ritalin. He told the pharmacy employees to hurry up and said that he had a gun. Ellis absconded with six bottles containing oxycodone.
On February 18, 2015, Ellis robbed the Rite Aid Pharmacy located on Spring Street in Gardiner, again wearing a hooded sweatshirt and gloves and covering his face with a plaid cloth. He approached the pharmacy counter and demanded oxycodone 30 milligram pills. He repeatedly told pharmacy employees to “hurry” and several times commanded: “now, now, now!” Ellis absconded with 11 bottles of oxycodone.
Steven C. Chaput committed the robberies with Ellis. He has pled guilty and awaits sentencing.The investigation was conducted by the Augusta and Gardiner Police Departments and the Federal Bureau of Investigation.
Gang Member Convicted in Meth Case Sentensed to 14 YearsRead the Press Release
LOS ANGELES – A street gang member has been sentenced to 14 years in federal prison after being found guilty of two narcotics trafficking charges in relation to the sale of about two ounces of methamphetamine during an undercover investigation.
Aaron “Droopy” Ramos, 31, a resident of the Florence-Graham district of Los Angeles, was Monday yesterday afternoon to 168 months in federal prison by United States District Judge Christina A. Snyder.
Following a jury trial in December, Ramos was found guilty of conspiracy to distribute methamphetamine and distribution of methamphetamine. (Ramos was also convicted at trial in 2014, but that conviction was reversed by Judge Snyder because of comments made by a juror.)
“Drug trafficking continues to be a core activity of street gangs,” said United States Attorney Eileen M. Decker. “Taking this violent drug trafficker off of our streets both protects the community and cuts off a source of funding for the gang.”
A second defendant in the case – Sharon “Hyper” Paiz, 35, of Lancaster – who obtained the narcotics involved in the transaction, pleaded guilty and faces a mandatory minimum sentence of 10 years in federal prison when she is sentenced by Judge Snyder on June 20.
In court papers, prosecutors argued that Ramos was a high-ranking member of the 18th Street gang and that he was the driver in a fatal drive-by shooting. Ramos “was involved in a drive-by shooting simply for sport,” according to a sentencing memo filed in the case. “The shooting was a gang initiation that resulted in the death of a non-gang member that [Ramos] was supervising in his leadership role.” Ramos was convicted in relation to this shooting in state court and has nearly completed an 8-year prison sentence.
The investigation into Ramos and other 18th Street gang members was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Former Traffic Court Judge Gets Prison Term for Tax ChargeRead the Press Release
PHILADELPHIA - Michael Sullivan, 51, of Philadelphia, was sentenced today to 10 months in prison for one count of failure to report and pay payroll taxes. Sullivan had failed to report and pay payroll taxes for employees of the Fireside Tavern, South Marshall Street, Philadelphia. Sullivan was an owner and operator of the Tavern. Sullivan was a judge for the former Philadelphia Traffic Court.
Sullivan pleaded guilty to the charge on October 20, 2015. In addition to the prison term, U.S. District Court Judge Eduardo Robreno ordered restitution in the amount of $58,314, one year of supervised release, and a $25 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service is being prosecuted by Assistant United States Attorney Paul L. Gray.
Former St. Louis Police Officer Pleads Guilty to Violating Civil Rights by Assaulting ArresteeRead the Press Release
A former St. Louis Metropolitan Police officer pleaded guilty today to depriving an arrestee, identified in court documents as M.W., of his civil rights by assaulting him while he was handcuffed, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Tammy Dickinson of the Western District of Missouri.
Thomas Carroll, 52, of St. Louis, pleaded guilty before U.S. District Judge Henry E. Autrey of the Eastern District of Missouri to deprivation of rights under color of law. Carroll was taken into custody immediately upon the conclusion of today’s hearing.
“Each time a law enforcement officer abuses their authority and the power entrusted to them, it erodes the public trust and makes it that much more difficult for good law enforcement officers to do their jobs,” said Principal Deputy Assistant Attorney General Gupta. “The Civil Rights Division is committed to prosecuting those law enforcement officers who abuse their authority, break the law and then attempt to cover up their criminal behavior.”
“I have zero tolerance for the actions of police officers who discard justice for their own angry vendetta,” said U.S. Attorney Dickinson. “I know the vast majority of law enforcement officers join me in repudiating this brand of brutality. This former police officer not only violated the civil rights of a person in police custody, he violated the public trust and his oath of office.”
M.W. was arrested at Ballpark Village on July 22, 2014, because he was unlawfully in possession of a credit card that belonged to Carroll’s daughter. Carroll, who was on duty that night, responded to Ballpark Village and confronted M.W., who was already under arrest, handcuffed and seated in the backseat of another officer’s patrol car. Carroll yelled at M.W., telling him that he made a “huge mistake” and “broke into the wrong girl’s car.”
Another police officer then drove M.W. to the Central Patrol police station, and Carroll followed behind in his own patrol car.
Carroll admitted that, despite orders from a superior officer to stay away from M.W., he entered the interview room where M.W. was handcuffed and shackled to the floor. Carroll began yelling at M.W., questioning him about who broke into his daughter’s car. Carroll threw M.W. into a chair and then picked him up and threw him into a wall. While M.W. was on the ground, Carroll punched M.W. in the torso. M.W. was handcuffed throughout the assault. As a result, M.W. suffered bodily injury.
M.W. never posed a threat to Carroll. Nonetheless, Carroll assaulted M.W. knowing it was wrong and against the law to do so, and knowing that it violated his oath as police officer.
By pleading guilty today, Carroll admitted that he deprived the victim of his constitutional right to be free from unreasonable seizure, which includes the right to be free from unreasonable force by a law enforcement officer.
According to the plea agreement, the government will present evidence at Carroll’s sentencing hearing regarding the severity of the assault, which is in dispute, including evidence that Carroll brandished his gun and put it in M.W.’s mouth as well as evidence regarding the nature and extent of the injuries suffered by M.W. The government will also present evidence that Carroll engaged in obstructive conduct in the days immediately after he assaulted M.W.
Under federal statutes, Carroll is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000.
In a separate but related case, a former prosecutor for the St. Louis Circuit Attorney’s Office pleaded guilty on Oct. 26, 2015, to concealing her knowledge of Carroll’s assault. Bliss Barber Worrell, 28, of Clayton, Missouri, pleaded guilty to misprision of a felony. Worrell was an assistant circuit attorney in the St. Louis Circuit Attorney’s Office Misdemeanor Division from August 2013 through July 2014. Worrell will be sentenced at a later date.
Worrell admitted that she failed to notify authorities of the assault and that she took an affirmative step to conceal the felony. Worrell also admitted that she filed charges without disclosing knowledge of the assault to her colleagues, supervisors or the judge assigned to setting a bond. She admitted that she allowed the charges to stand despite later learning that the facts that made out the charge of attempted escape were fabricated to cover for injuries that the arrestee sustained during the assault.
These cases are being investigated by the FBI’s St. Louis Division. These cases are being prosecuted by First Assistant U.S. Attorney David M. Ketchmark of the Western District of Missouri, who has been appointed as Special Attorney to the U.S. Attorney General, and Trial Attorney Fara Gold of the Civil Rights Division. The U.S. Attorney’s Office of the Western District of Missouri is prosecuting these cases with the Civil Rights Division due to the recusal of the U.S. Attorney’s Office of the Eastern District of Missouri.
Carroll Information
Carroll Plea Agreement
Former No. 2 of Los Angeles Sheriff’s Department Found Guilty of Obstructing Federal Investigation into Misconduct at County JailsRead the Press Release
LOS ANGELES – Paul Tanaka, who was the second in command of the Los Angeles Sheriff’s Department, was found guilty today of two obstruction of justice charges for overseeing efforts to derail a federal investigation into corruption and civil rights violations by sheriff’s deputies at two downtown jail complexes.
After only a few hours of deliberations, a federal jury convicted Tanaka of being the leader of a broad conspiracy to obstruct the federal investigation, a scheme that started when the Sheriff’s Department learned that an inmate at the Men’s Central Jail (MCJ) was an FBI informant. Tanaka directed a conspiracy that has previously resulted in the conviction of eight other former LASD deputies.
In addition to the conspiracy count, Tanaka was found guilty of one substantive count of obstructing justice.
Tanaka, 57, faces a statutory maximum sentence of 15 years in federal prison when he is sentenced by United States District Judge Percy Anderson on June 20.
“Another jury has spoken and sent a clear message that the former leaders of the Sheriff’s Department who abused their positions by encouraging, and then concealing, a corrupt culture, must be held accountable,” said United States Attorney Eileen M. Decker. “Mr. Tanaka joins eight of his former subordinates who have been found guilty of actively working to undermine a federal investigation into illegal conduct at the jails. Law enforcement agencies that house inmates, even dangerous ones, must remain steadfast in upholding the law and protecting the civil rights of all of the individuals in their custody. This is required by both the higher standard to which law enforcement is held and their sworn oath to uphold the law.”
Tanaka was the undersheriff – the number 2 in the LASD – until 2013, and he ran an unsuccessful campaign for sheriff in 2014. As he rose through ranks during a 31-year career with the LASD, Tanaka became well aware of “problem deputies” at the jails, allegations of rampant abuse of inmates and insufficient internal investigations into deputy misconduct. Nevertheless, Tanaka encouraged jail deputies to work in a “gray area,” and he transferred a jail supervisor who sought to implement reforms at the jails, according to the testimony presented during a 10-day trial.
The scheme to disrupt the federal investigation started in August 2011 when unknown deputies recovered a mobile phone from an inmate in MCJ, linked the phone to the FBI, and determined that the inmate was an informant in the FBI’s corruption and civil rights investigation. The phone was given to the inmate as part of an undercover investigation by a corrupt deputy, who subsequently pleaded guilty to a federal bribery charge.
In response to the federal investigation, members of the Tanaka-led conspiracy took steps to hide the cooperator from the FBI and the United States Marshals Service, which was attempting to bring the inmate to testify before a federal grand jury. The evidence presented during the trial showed that the deputies altered records to make it appear that the cooperator had been released from jail, when in fact he had been re-booked into custody under a fake name and moved to secure locations. Members of the conspiracy prohibited FBI access to the informant, and then told the cooperator that he had been abandoned by the FBI.
Over the course of several weeks, members of the conspiracy sought an order from a Los Angeles Superior Court judge to compel the FBI to turn over information about its investigation to the LASD. After the judge refused to issue the order because he had no jurisdiction over the federal law enforcement agency – and even though it was clear that the FBI was acting legally – two LASD sergeants confronted the lead FBI agent at her residence in an attempt to intimidate her. The sergeants threatened the agent with arrest and later reiterated this threat to her supervisor, stating that the agent’s arrest was imminent.
Tanaka oversaw co-conspirators who told fellow deputies not to cooperate in the federal investigation. Members of the conspiracy engaged in witness tampering by telling fellow deputies that the FBI would lie, threaten, manipulate and blackmail them to obtain information about the Sheriff’s Department.
“Mr. Tanaka created a culture of corruption seen only in the movies, and certainly nothing that anyone would expect from the nation’s largest Sheriff’s department,” said David Bowdich, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “My hope is that this conviction is the last chapter in this case so that the dedicated, law-abiding deputies at the L.A. Sheriff's Department, as well as the citizens they're sworn to serve and protect, can move on without distraction.”
Tanaka was indicted last year along with William Thomas Carey, a former LASD Captain who headed the Internal Criminal Investigations Bureau. Carey pleaded guilty last year and is pending sentencing. Now that Tanaka has been convicted, 10 members of the department – including former Sheriff Leroy Baca – have been convicted in relation to the scheme to obstruct justice.
As a result of the federal investigation into the LASD, another nine deputies who held various ranks have been convicted on charges related to the illegal use of force, illegal firearms and bribery. Two additional deputies are scheduled to go on trial May 3 in a case alleging an illegal use of force at the Twin Towers jail.
Former Massey Energy CEO Sentenced to a Year in Federal PrisonRead the Press Release
Don Blankenship Sentenced on Federal Conspiracy Charge
Acting U.S. Attorney Carol Casto announced that former Massey Energy Chief Executive Officer Don Blankenship was sentenced today to a year in federal prison and ordered to pay a $250,000 fine. Blankenship was sentenced for conspiracy to willfully violate mine health and safety standards after a jury returned a guilty verdict on the federal crime.
“This sentence is a victory for workers and workplace safety,” said Acting U.S. Attorney Casto. “It lets companies and their executives know that you can’t take chances with the lives of coal miners and get away with it. Putting the former chief executive officer of a major corporation in prison sends a message that violating mine safety laws is a serious crime and those who break those laws will be held accountable.”
Over the course of the trial, in which jury selection began on Oct. 1, 2015, and the jury returned a guilty verdict on Dec. 3, 2015, the jury heard evidence from 27 witnesses called by the United States. Many of these witnesses were coal miners who worked at the Upper Big Branch (UBB) mine prior to the 2010 explosion and they testified in detail from their firsthand knowledge of the unsafe working conditions at UBB, violations of U.S. Mine Safety and Health Administration (MSHA) regulations and organized efforts to obstruct and interfere with MSHA inspectors. The jury heard from Bill Ross, former Manager of Technical Services at Massey, who testified that he warned Blankenship about the company’s practice of rampant violations and told the defendant prior to the UBB explosion that Massey’s standard tactic of ignoring or defrauding MSHA could not be sustained without the possibility of a serious accident that could have fatalities. The evidence also showed that Blankenship received daily updates on safety violations and helped perpetuate them.
“Putting profits over the safety of workers is reprehensible,” said Acting U.S. Attorney Casto. “The jury acknowledged that with the guilty verdict and the sentence imposed today recognizes that disregarding safety laws has real consequences. From the beginning, the objective of this investigation and this prosecution was to not only show that those who violate safety laws will be held responsible, but also to deter these violations in the future to make everyone’s workplace safer.”
“Today’s sentence marks the culmination of a comprehensive, joint investigation that took over five years to complete and resulted in five criminal convictions.” said Special Agent in Charge Scott S. Smith of the FBI’s Pittsburgh Field Office. “Along with dedicated prosecutors in the U.S. Attorney’s Office and investigators in U.S. Department of Labor’s Office of Inspector General, the FBI is committed to holding those who commit crimes by enabling safety violations and who place profits above the value of human life accountable.”
“Donald Blankenship’s trial and conviction came after an explosion that killed 29 miners at the Upper Big Branch mine,” said Special Agent in Charge John Spratley of the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations’ Philadelphia Regional Office. “His sentencing today reaffirms the responsibility of company executives to ensure they adhere to health and safety standards. The Department of Labor’s Office of Inspector General will continue to work with the Mine Safety and Health Administration and our law enforcement partners to investigate criminal worker safety violations that pose a threat to American workers.”
The prosecution was the result of a comprehensive investigation that, including Blankenship, resulted in five criminal convictions. In addition to the convictions of individuals, the outcome of the investigation also included a resolution of over $200 million with Alpha Natural Resources after it acquired Massey. This agreement established a foundation dedicated to mine safety and health research, the first of its kind and set aside nearly $50 million in funding for the foundation. That funding has provided the resources for some of the best and brightest minds in the country to pursue research that will make mines safer all over the world.
This matter was investigated by the FBI and the U.S. Department of Labor’s Office of Inspector General. Assistant U.S. Attorneys Steven R. Ruby, Gregory McVey and Gabriele Wohl, as well as former U.S. Attorney Booth Goodwin, handled the prosecution and tried the case before a federal jury.
The prosecution is part of a sustained effort by the U.S. Attorney’s Office for the Southern District of West Virginia to protect the health and safety of West Virginia workers by vigorously prosecuting workplace safety crimes and holding accountable those responsible for dangerous working conditions.
Former Eugene Property Manager Pleads Guilty to Wire FraudRead the Press Release
EUGENE, Ore. – Eugene property manager, Terry Shockley, 63, pleaded guilty before U.S. District Judge Ann Aiken today for engaging in a scheme to defraud clients and investors through his now-defunct property management company, TS Property Management (TSPM).
According to the plea agreement, Terry Shockley admitted to engaging in a scheme to defraud the clients of and investors in TS Property Management, resulting in a loss of over $3.5 million to his victims. The plea agreement sets forth the details of the scheme, which included operating the company under material false pretenses such as statements claiming that certain amounts were held in trust for clients, statements about the financial health of the company, and lulling statements to the Oregon Real Estate Agency in an attempt to convince the state regulator that nothing was wrong and the business was financially sound. In reality, Shockley had been experiencing financial issues since at least as early as December 2012 and was operating under substantial debt.
Shockley faces a statutory maximum sentence of 20 years in prison for each count of wire fraud. According to the plea agreement, Shockley has agreed to entry of a restitution order taking into account the full amount of his victims’ losses. Shockley will be sentenced on September 6, 2016 at 10:00 a.m.
The Federal Bureau of Investigation, with assistance from the Oregon Real Estate Agency, investigated this case and it is being prosecuted by Assistant U.S. Attorney Nancy M. Olson.
Former Belton Woman Sentenced for Stealing $471,000 from EmployerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Belton, Mo., woman was sentenced in federal court today for embezzling $471,000 from her employer.
Kimberly Joyce Padgett, 43, of Osawatomie, Kan., formerly of Belton, was sentenced by U.S. District Judge Gary A. Fenner to two years and three months in federal prison without parole. The court also ordered Padget to pay $471,000 in restitution.
On Nov. 12, 2015, Padgett pleaded guilty to five counts of wire fraud. Padgett admitted that she embezzled approximately $471,000 from her employer, Reliant Financial Services in Kansas City, Mo. As part of Padgett’s duties at Reliant Financial Services, she managed the business’s books, paid the bills, managed the accounts receivable, operated the telephones, and prepared the paychecks. Padgett was also a signor on the business’s bank accounts and had use of the business’s credit cards for authorized business expenses. Padgett was terminated from employment in March 2015 when the fraud scheme was discovered.
During 2007 up to and including 2015, Padgett embezzled money from the Reliant Financial Services bank account intended for payroll tax and office supplies. Padgett wrote $350,000 in checks to herself and deposited those funds into her personal PayPal account and her husband’s bank account. Padgett used her PayPal account to pay for trips around America for herself, and at least once for a coworker, the coworker’s daughter, Padgett’s daughter, and others. She also used her company credit card in an unauthorized manner to support a lavish lifestyle by paying expenses for herself and others, including clothing, jewelry, gasoline, vacations, hotels, and restaurants.
From 2012 to 2015, Padgett made little to no payments in payroll taxes. Company owners had no knowledge the payroll taxes were not paid, and did not learn the taxes were not paid until they were contacted by the IRS.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI.
Former BVU Board Chairman Pleads GuiltyRead the Press Release
ABINGDON, VIRGINIA – The former Chairman of the Board of Directors for the Bristol Virginia Utilities Authority pled guilty this morning in the United States District Court for the Western District of Virginia in Abingdon to a Federal conspiracy charge, United States Attorney John P. Fishwick Jr. announced.
Bruce J. Clifton Jr., 64, of Bristol, Va., waived his right to be indicted and pled guilty this morning 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.
“The level of corruption at BVU was overwhelming,” United States Attorney John P. Fishwick Jr. said today. “In cooperation with our partners in law enforcement, we continue to dismantle these corrupt individuals and put those who have profited from corruption in federal prison.”
“The sheer number of FBI investigations and subsequent charges against individuals involved in the Bristol Virginia Utilities Authority should demonstrate the government’s commitment to seeking out and holding accountable those who manipulate the system for their personal gain. Public corruption continues to be the Bureau’s top criminal priority. We encourage the public to continue to report suspicious activity; through their concern and information the FBI strives to wipe out corruption at all levels,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division.
According to evidence presented at today’s hearing by Assistant United States Attorney Zachary T. Lee, Clifton was a citizen member of the BVU Board of Directors from January 2, 2010 through March 27, 2016, having served as the Chairman of the Board from July 2015 to March 27, 2016.
In 2011, BVU entered into an agreement with Company #1. The agreement stated that if BVU signed a contract with Company #1, Company #1 would pay to entertain BVU executives and BVU Board Members in Dallas, Texas. This entertainment included the payment of hotel expenses, limousine services, meals and tickets to an NFL game between the Dallas Cowboys and the Seattle Seahawks on November 6, 2011, in which not only tickets would be provided but also access to a luxury suite would be available. On or about September 29, 2011, a contract was entered into with Company #1 and funds in the amount of $4,496,096 were allocated by BVU to pay Company #1.
On or about November 5, 2011 and November 8, 2011, Wes Rosenbalm, Bruce J. Clifton Jr., and other members of the BVU Board of Directors, traveled to Dallas, Texas. During this trip, these individuals attended a Dallas Cowboys football game, stayed at the Westin Park Central Hotel, were transported by a limousine service, were provided a tour of Dallas, Texas, and were provided multiple meals, all at the expense of Company #1.
The total value of the services and things of value provided to Clifton, individually, was approximately, $2,500. The total costs to Company #1 for providing these services and things of value to Clifton and BVU employees and BVU Board Members, exceeded $10,000. On or about January 9, 2012, Clifton completed his Virginia state mandated financial disclosure form for the year 2011 and did not disclose the payment of expenses and things of value he received from Company #1 for his trip to Dallas, Texas.
In addition, Clifton, who is a general sales manager of Company #2, used his position on the BVU Board of Directors and worked with BVU Employee #3, to ensure that Company #2 secured bids to provide BVU with fleet vehicles. Clifton ensured Company #2 won bids to provide vehicles to BVU by getting information from BVU Employee #3 about each bid submitted and then adjusting the bid from Company #2 to ensure it was the lowest bid. When Employee #3 passed away in April 2011, Clifton approached BVU Employee #4 and explained that Employee #3 would tell Clifton when he was not the low bidder for a contract and when Clifton needed to “sharpen his pencil.”
On or about July 17, 2015, Clifton was interviewed by an agent with the Federal Bureau of Investigation and admitted that Clifton had told another car salesman that he had been provided inside information related to bids received by BVU for the purchase of automobiles.
Clifton admitted today that on September 16, 2013, the BVU Board of Directors met and after entering executive session, discussed the implications of alleged misconduct of Wes Rosenbalm. During that meeting, which BVU Board Members did not know was being recorded, members discussed the fact that many of the board members had engaged in similar activity, including accepting tickets and attending the previous trip to Dallas, Texas, which had been paid for by a vendor. Board members also discussed that many other employees could get wrapped up in a scandal if the information related to Wes Rosenbalm came to light in public. Specifically, Stacey Pomrenke and David Copeland were employees mentioned as potentially being involved in illegal activity associated with vendors of BVU.
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.
Federal Jury Convicts Man of Sex Trafficking MinorRead the Press Release
Memphis, TN – After a three-day trial, a federal jury found a man guilty of trafficking a minor for sex. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty verdict today.
According to information presented in court, between May and June 2014, Harold Davis, 27, of Memphis, met a female teenage runaway. Davis obtained a cellphone and a wig for the teen and subsequently put her image on Backpage.com to advertise her for commercial sexual encounters.
The defendant’s activity was discovered when a Shelby County Sheriff’s Deputy stopped Davis’ vehicle for a traffic violation. He noticed the female minor in the backseat of the vehicle. The deputy also observed an unusually large amount of condoms and female hygiene products in the car.
The Federal Bureau of Investigation’s (FBI) Human Trafficking Task Force furthered the investigation into Davis, linking the Backpage ads to Davis through his phone number and email accounts.
On Tuesday, April 5, 2016, a federal jury convicted Davis on one count of sex trafficking a minor and one count of using the internet to conduct an unlawful activity.
Davis is scheduled to be sentenced by U.S. District Judge Samuel H. Mays Jr. on Thursday, July 14, 2016. He faces a mandatory minimum ten-year sentence and up to life in prison.
This case was investigated by the FBI and Shelby County Sheriff’s Department.
Assistant U.S. Attorneys Debra Ireland and Kasey Weiland are prosecuting this case on the government’s behalf.
Employee Sentenced for Using Personal Information Stolen from Her Employers to Obtain Fraudulent Tax Refunds and Credit CardsRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Tricia N. Bryan, age 30, of Gwynn Oak, Maryland, today to 30 months in prison followed by five years of supervised release for wire and bank fraud, and aggravated identity theft. Judge Motz ordered Bryan to pay restitution of $65,356.84, the amount of the actual losses, and forfeit property purchased with the fraudulent credit cards she opened in other peoples’ identities, including a flat screen TV, and a designer Vera Wang sapphire and a diamond engagement ring.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
From March to November 2010, and from November 2011 to July 2013, Bryan worked for a defense contractor in Columbia, Maryland who provided data entry services for the National Guard Bureau’s Health Readiness Record. From November 2013 to March 2015, Bryan worked at a global investment management firm in Owings Mills, Maryland. At both places of employment, Bryan was entrusted with the personal identity information of individuals, including military personnel.
According to her plea agreement, beginning in March 2010 to June 2013, Bryan engaged in a bank fraud scheme in which she applied for credit cards using personal identity information she stole from work at the defense contractor, including the identity of soldiers. Bryan applied for at least 26 separate accounts, and made at least $14,332.54 in charges on fraudulently obtained credit cards.
On July 18, 2013, state search warrants were executed at her residence. Items seized included credit card applications and credit cards in the names of others, receipts for items purchased with the fraudulently obtained credit cards, and sticky notes Bryan made bearing personal information of soldiers in the Health Readiness Record.
In a separate fraud scheme, from March 2011 to February 2014, Bryan also used personal identity information she stole from work at both places of employment to electronically file at least 61 false federal tax returns and 11 fraudulent state income tax returns. Of these, 18 federal returns and seven state income tax returns were accepted for filing. Three federal refunds and one state refund were attempted to be deposited into closed accounts and the replacement checks never claimed or cashed by Bryan. Overall, Bryan actually received $41,674 in fraudulent federal refunds and $8,849 in fraudulent state refunds.
The total amount of actual loss arising from the bank and tax refund fraud schemes was $65,356.84.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the Defense Criminal Investigative Service, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine and Special Assistant U.S. Attorney Joshua Felsen, a cross-designated Baltimore City Assistant State’s Attorney, who prosecuted the case.
District Man Sentenced to Six Years in Prison for Attacking Girlfriend During ArgumentRead the Press Release
WASHINGTON – Kenneth Charles, 38, of Washington, D.C., was sentenced today to a six-year prison term for a vicious assault on his girlfriend last fall that left her in a coma for months, U.S. Attorney Channing D. Phillips announced.
Charles pled guilty in February 2016, in the Superior Court of the District of Columbia, to a charge of aggravated assault. He was sentenced by the Honorable Todd E. Edelman. Following his prison term, Charles will be placed on three years of supervised release.
According to the government’s evidence, on the evening of Oct. 19, 2015, Charles got into an argument with his girlfriend at the apartment they shared in Southeast Washington. The argument began in the bedroom, but was loud enough so that the victim’s daughter, who was inside the apartment with a friend at the time, could hear the yelling. As the argument ensued, the victim left the bedroom and walked out to the balcony.
When she reached the balcony, the victim tossed Charles’s clothes over the side and onto the ground below. She then immediately sat down in a chair on the balcony. Charles followed the victim out to the balcony, walked over to the edge, looked over and saw his clothes, and then turned to the victim and punched her in the face multiple times. Following the assault on the balcony, he and the victim made their way into the apartment, at which point, the argument and physical struggle continued. Charles punched the victim repeatedly until she lost consciousness. At some point during the altercation, the victim hit her head on a table. Charles, however, continued punching her even after she had fallen into the table and was unconscious.
Charles attempted to clean up the scene before he left the apartment. He did not call police before leaving. A witness called 911. At the hospital, the victim was unconscious and unresponsive. Two months after her arrival in the hospital, the victim slowly began to awaken from her coma. She is still recovering from the attack.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case for the Metropolitan Police Department, including detectives of the Criminal Investigations Division Homicide Branch as well as officers and detectives from the Seventh District. He also expressed appreciation for the work of the D.C. Department of Fire and Emergency Medical Services and the U.S. Marshals Service. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Jennifer Clark; Paralegal Specialists Zekiah Wright, Debra Joyner, and Tierra Nanches; Investigative Analyst Zachary McMenamin, and Assistant U.S. Attorney Richard DiZinno. Finally, he commended the work of Assistant U.S. Attorney Robert Eckert and Jessica Brooks, who investigated and prosecuted the case.
Detroit man pleads guilty to interstate heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – James Leon Fisher, 29, of Detroit, Michigan, pled guilty to heroin trafficking in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Fisher, along with thirteen other individuals, conspired to transport heroin across state lines from Detroit, Michigan to Morgantown, West Virginia. The operation was disrupted in February 2016 when a federal grand jury returned three separate heroin trafficking indictments.Specifically, Fisher sold heroin in December 2015 in Monongalia County, West Virginia. He pled guilty to “Distribution of Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.U.S. Magistrate Judge Michael John Aloi presided.
Dallas Check Cashing Business Owner Sentenced to 21 Months in Federal Prison for Role in Stolen Tax Refund SchemeRead the Press Release
DALLAS — A Dallas check cashing business owner, Obinna Njoku, who pleaded guilty to his role in a stolen tax refund scheme, has been sentenced by U.S. District Judge Sam A Lindsay to 21 months in federal prison and ordered to pay $309,679 in restitution, announced U.S. Attorney John Parker of the Northern District of Texas.
Njoku pleaded guilty in August 2015 to a superseding information charging one count of conspiracy to launder monetary instruments. At Monday’s sentencing hearing, Judge Lindsay ordered Njoku to surrender to the Bureau of Prisons on May 10, 2016.
According to the factual resume filed in the case, Njoku was the sole director of All-Ways Insurance Group, LLC, and he owned and operated All-Ways Check Cashing, Inc., a money service business licensed in Texas and federally, as an agent of MoneyGram. In 2012, All-Ways had at least two locations in Dallas, including one on Forest Lane. Njoku was also the designated anti-money laundering compliance officer for All-Ways, in its agency for MoneyGram, and represented to MoneyGram that All-Ways had implemented an anti-money laundering compliance policy and would comply with all reporting and recordkeeping requirements.
From January through April 2012, according to the factual resume, Njoku was asked by several individuals to cash, through All-Ways, numerous checks purported to be federal income tax refunds issued to individuals in the Dallas area. The individuals asking Njoku to cash these checks brought “batches” of checks, often eight to 12 at a time, to Njoku at the Forest Lane All-Ways location. These “batches” often had consecutive check numbers, and each check was always for less than $10,000. The individuals who brought the checks to Njoku to cash were not the individuals to whom the checks were payable. The total amount of each “batch” of checks presented to Njoku, as well as the amount of cash released to the respective individual presenting the “batch” of checks, was usually well over $10,000.
Njoku believed, according to the factual resume, that the individuals asking for the checks to be cashed had prepared and filed federal income tax returns for the persons to whom the checks were issued, and those individuals had generated illegally inflated refund amounts. While he believed the checks were likely derived from criminal activity involving fraudulent federal tax returns, Njoku did not ask or seek any details. Instead, Njoku deliberately blinded himself to what he suspected was the source of the checks and deposited the checks into his All-Ways bank accounts at Comerica Bank. As his commission for cashing these checks, Njoku kept 25 to 35 percent of the overall amount of each check “batch” presented to him for cashing, which was much more than the usual three to five percent he collected from other check cashing customers.
The investigation by special agents with Internal Revenue Service Criminal Investigation revealed that the checks presented to Njoku for cashing resulted from fraudulently filed federal income tax returns, and the payees on those checks had their identities stolen by individuals who used their personal information to file fraudulent tax returns and fraudulently claim refunds. These fraudulent federal tax returns submitted in these victims’ names were electronically filed, used an incorrect address for the taxpayer, claimed a refund, and directed the refund to be processed as an e-Collect check. The total amount of the checks obtained through wire fraud and cashed by Njoku through All-Ways was at least $300,000, according to the factual resume.
Internal Revenue Service Criminal Investigation investigated the case. Assistant U.S. Attorney John J. de la Garza was in charge of the prosecution.
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Dallas Carjackers SentencedRead the Press Release
DALLAS — Donshay Jones, 24, of Dallas, was sentenced today by U.S. District Judge Ed Kinkeade to serve a total of 168 months (14 years) in federal prison, following his guilty plea to felony offenses stemming from the February 2014 armed carjacking of a young woman and her young child in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Jones pleaded guilty in November 2015 to one count of carjacking and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence. Jones’ co-defendant, Joshua Sutherland, 22, also of Dallas, pleaded guilty to one count of carjacking and was sentenced last year by Judge Kinkeade to 87 months in federal prison.
According to documents filed in the case, Jones and Sutherland were in an apartment building’s parking lot on Ledbetter Drive in Dallas on February 18, 2014. With Sutherland acting as the “look out,” Jones shoved the woman and her four-year-old son against a wall, pointed and held a firearm on them, and threatened to kill them both unless she turned over her valuables, including her car keys. After the woman pointed out her car to Jones, Jones searched her person, and then he and Sutherland got into her car and drove away.
The Dallas Police Department and the Federal Bureau of Investigation conducted the investigation. Deputy Criminal Chief Assistant U.S. Attorney Lisa J. Dunn prosecuted the case.
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