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Thursday 18 February 2016
Mexican Springs Man Sentenced to Twenty Years for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – David Castillo, 38, an enrolled member of the Navajo Nation who resides in Mexican Springs, N.M., was sentenced today in federal court in Santa Fe, N.M., to 20 years in federal prison for his child sexual abuse conviction. Castillo will be on supervised release for ten years after completing his prison sentence. He also will be required to register as a sex offender.
Castillo was arrested May 17, 2015, on a two-count indictment charging him with aggravated sexual abuse of a child under the age of 12. The indictment alleged that Castillo sexually assaulted a child on a date between May 1, 2006 and Sept. 4, 2006, and again on a date between Dec. 20, 2006 and Jan. 8, 2007. He was charged with committing the two crimes on the Navajo Indian Reservation in McKinley County, N.M.
On Sept. 14, 2015, Castillo pled guilty to a two-count felony information charging him with aggravated sexual abuse. In entering his guilty plea, Castillo admitted sexually assaulting the victim in the summer of 2006, when the victim was eight years old. He also admitted sexually assaulting the victim over the Christmas holiday in 2006, when the victim was nine years old. According to the plea agreement, Castillo sexually assaulted the victim five times during the periods of time on the Navajo Indian Reservation.
This case was investigated by the Gallup office of the FBI and the New Mexico State Police and was prosecuted by Assistant U.S. Attorney Sarah Mease.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Medford Felon Sentenced to 10 Years Federal Prison for Possessing FirearmRead the Press Release
MEDFORD, Ore. - On Wednesday, February 17, 2016, U.S. District Judge Ann Aiken sentenced Carl Gene Dunlap, 40, of Medford, Oregon, to 10 years in federal prison, following his conviction for being a felon in possession of a firearm. Dunlap’s 10-year sentence is the maximum allowed under federal law. Dunlap was also ordered to serve three years of supervised release after he completes his prison term.
On January 13, 2014, near Central Point, Oregon, Dunlap was showing off a 9mm handgun to an acquaintance when it accidentally discharged, striking the person in the groin. Dunlap fled the scene. The wounded person was rushed to the hospital and survived the gunshot, but did not identify Dunlap as the shooter. Jackson County Sheriff’s deputies collected the spent shell casing and bullet that had passed through the victim. Later that evening, Dunlap was arrested on an unrelated probation violation warrant. That arrest followed a chase in which Dunlap jumped from a moving vehicle and attempted to elude the police on foot. Weeks later, Medford police recovered a 9mm handgun at a Medford motel. The Bureau of Alcohol Tobacco and Firearms Forensic Laboratory matched the spent shell casing found at the scene of the earlier shooting to the seized firearm. Additional investigation revealed Dunlap as the shooter.
Dunlap’s prior felony convictions include coercion, third degree assault, robbery in the third degree, felony attempt to elude, felon in possession of a firearm, unlawful use of a motor vehicle, and 12 separate convictions for possession of methamphetamine. Dunlap also has 17 misdemeanor convictions which include fourth degree assault, resisting arrest, menacing, recklessly endangering another, and misdemeanor attempt to elude.
This case was investigated jointly by the Jackson County Sheriff’s Office, Medford Police Department, Central Point Police Department, and the Bureau of Alcohol, Tobacco, and Firearms, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Logan County woman sentenced for preparing fraudulent tax returnsRead the Press Release
CHARLESTON, W.Va. – A Logan County woman was sentenced to five years of probation, with five months of this sentence to be served on home incarceration, and ordered to pay $188,665 in restitution for a preparing fraudulent tax returns, announced Acting United States Attorney Carol Casto. Maria Antoinette Martin, 64, of Chapmanville, previously pleaded guilty in October 2015 to the federal tax crime.
From 2011 through 2013, Martin admitted to preparing 43 fraudulent tax returns from her home. She falsely claimed Earned Income Tax Credits and Child Tax Credits for her clients, knowing her clients did not qualify for these inflated tax credits. Martin also knew that falsely claiming these tax credits would increase the amount of federal income tax refunds for her clients. Once Martin electronically filed the returns, she received the tax refunds by direct deposit in bank accounts designated by her. Martin then split the tax refunds with her clients. As a result of her fraud, the United States Treasury paid $188,665 in fraudulent refunds.
The Internal Revenue Service’s Criminal Investigation unit conducted the investigation. Assistant United States Attorney Erik S. Goes handled the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
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Local Man Sentenced to Prison for Role Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 14 months of incarceration; three years supervised release and was ordered to pay $204,252.16 in restitution on his conviction of fraud conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Derek Holt, 22, of Pittsburgh, PA.
According to the information presented to the court, Derek Holt and his conspirators agreed to defraud account holders at Pittsburgh area banks by a remote deposit, mobile-banking scheme in which Derek Holt and conspirators deposited fictitious checks into victim accounts, and later withdrew cash at the Rivers Casino and ATMs.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Western Pennsylvania Financial Crimes Task Force (WPFCTF), for conducting the investigation that led to the successful prosecution of this defendant. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort is the United States Attorney's Office for the Western District of Pennsylvania, the Department of Homeland Security, the United States Secret Service, the United States Postal Inspection Service, and the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Lexington Man Sentenced 10 Years for Distributing Child PornographyRead the Press Release
LEXINGTON — A 23-year-old Lexington man, who previously admitted to distributing child pornography images on the internet, has been sentenced to ten years in federal prison.
On Wednesday, U.S. Chief District Judge Karen Caldwell sentenced Joshua Gilley, ordered him to serve a lifetime term of supervised release, and ordered that he register as a sex offender, following his release from prison. Under federal law, Gilley must serve at least 85 percent of his sentence.
According to his plea agreement, between 2012 and 2013, Gilley distributed numerous child pornography images to others, via email. Gilley admitted that a search warrant at his home revealed thousands of child pornography images, including more than 900 sexual abuse images of prepubescent children.
The case started when an FBI investigator noticed child pornography images being distributed online. The FBI later traced the source of those images to a computer that was operated by Gilley.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Howard Marshall, Special Agent in Charge, FBI; Mark Barnard, Chief of Lexington Police; and Rodney Brewer, Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the FBI’s Violent Crimes Against Children Section, the Lexington Police, and the Kentucky State Police’s Electronic Crime Branch. Assistant U.S. Attorney David A. Marye prosecuted this case on behalf of the federal government.
KCK Man Charged with Drug TraffickingRead the Press Release
KANSAS CITY, KAN. - A Kansas City, Kan., man was indicted Wednesday on federal drug trafficking charges, U.S. Attorney Barry Grissom said.
Damien D. Campbell, 29, Kansas City, Kan., is charged with one count of possession with intent to distribute crack (count one), one count of possession with intent to distribute marijuana (count two), one count of unlawful possession of a firearm in furtherance of drug trafficking (count three), and one count of unlawful possession of a firearm following a felony conviction (count four). The crimes are alleged to have occurred Feb. 3, 2016, in Kansas City, Kan.
An investigator’s affidavit filed in the case alleges officers of the Kansas City (Kansas) Police Department served a search warrant Feb. 3 at Campbell’s residence in the 2900 block of North 63rd in Kansas City, Kan. They seized 26 grams of synthetic marijuana, 127 grams of marijuana, 1.6 grams of crack cocaine, two .40 caliber handguns and more than $38,000 in cash.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million on count one, a maximum penalty of five years and a fine up to $250,000 on count two, not less than five years and a fine up to $250,000 on count three, and a maximum penalty of 10 years and a fine up to $250,000 on count four. The Kansas City (Kansas) Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney James Ward is prosecuting.
OTHER GRAND JURY INDICTMENTS
Jose Robles-Trevizo, 50, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Feb. 2, 2016, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Miguel Parga-Chavez, 44, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Feb. 12, 2016, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Christian Robert Orr, 42, Osawatomie, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Dec. 21, 2015, in Miami County, 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 Terra Morehead is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indianapolis man convicted in federal court on robbery and firearm chargesRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today the conviction of an Indianapolis man for committing two armed robberies at Southside businesses. Robert E. Fox, 35, Indianapolis, was found guilty after a two-day jury trial before U.S. District Judge Jane Magnus-Stinson. Fox was found guilty of two counts of robbery and two counts of using a firearm during and in relation to a crime of violence.
“Reducing violent crime in our communities is one of the highest priorities of my office,” said Minkler. “Those who illegally possess firearms and use them to commit crimes will face the hammer of federal justice.”
On July 30, 2014, Fox entered the White Castle Restaurant in the 2100 block of Shelby Street and pointed a firearm at four employees there ordering them to get on the ground. Fox then took money from the cash register and fled. On August 5, 2014, he entered the Speedway gas station in the 2300 block of East Prospect Street and robbed the clerk at gunpoint taking cash, cigarettes, and the clerk’s mobile phone.
According to Assistant United States Attorneys Matthew J. Lasher and Michelle Brady, Fox faces a minimum of 32 years in federal prison. No future sentencing date has been set.
Guyanese Woman Sentenced to 75 Months for Trafficking in Counterfeit Credit CardsRead the Press Release
ALBANY, NEW YORK – Georgette Jackman, age 37, a citizen of Guyana and former resident of Brooklyn, New York, was sentenced today to serve 75 months in prison for a scheme in which she and others used counterfeit credit cards to purchase more than $400,000 in gift cards from grocery stores.
The announcement was made by U.S. Attorney Richard S. Hartunian and Todd Laster, Special Agent in Charge of the Buffalo Field Office of the U.S. Secret Service.
U.S. District Judge Mae A. D’Agostino sentenced Jackman to 51 months on her convictions for conspiracy to commit access device fraud and trafficking in counterfeit access devices. Judge D’Agostino additionally sentenced Jackman to two years of imprisonment on an aggravated identity theft conviction, which must be served consecutively to the other sentence of imprisonment Jackman received. Jackman, who pleaded guilty in October 2015, also faces deportation from the United States following the completion of her term of imprisonment.
From February 2012 through January 2013, Jackman and co-conspirators Jamese Williams and Terry Nicholas travelled together by car to stores throughout New York, Massachusetts, New Hampshire, Vermont and Connecticut, including approximately 47 Price Chopper grocery stores. During these trips, Jackman provided Williams and Nicholas with hundreds of counterfeit credit cards bearing stolen account numbers and embossed names that did not correspond to the actual account holders whose account numbers were stolen. Williams and Nicholas used these cards to purchase $435,465 worth of gift cards, which they gave to Jackman.
In December 2015, Nicholas and Williams were sentenced to 61 and 57 months in prison, respectively, for their involvement in the conspiracy.
This case was investigated by the U.S. Secret Service and was prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Golden Grove Inmate Sentenced for Possession of Prison ContrabandRead the Press Release
St. Croix, USVI – Senior District Court Judge Raymond L. Finch sentenced today Rodney Stanley, 30, an inmate at the Golden Grove Adult Correctional Facility on St. Croix, to one month of imprisonment for possession of prison contraband, United States Attorney Ronald W. Sharpe announced. Judge Finch also ordered Woods to serve one year of supervised release and pay a $25 mandatory assessment. By law, the sentence of imprisonment must be consecutive to the sentence he is currently serving for voluntary manslaughter.
On October 9, 2015, Stanley pleaded guilty to one count of possession of prison contraband. As part of his plea, Woods admitted that on November 15, 2012, while he was an inmate at Golden Grove, he possessed a cellular telephone which was hidden in his cell in the head of his mattress. Cellular telephones are prohibited contraband in correctional facilities because they are known to be used by prisoners to intimidate witnesses, orchestrate narcotics transactions, and facilitate other criminal activity, including murders.
The case was investigated by the Virgin Islands Bureau of Corrections and the U.S. Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Rami S. Badawy.
Global Telecommunications Company and Its Subsidiary Charged in Massive Bribery Scheme Involving Uzbek Official; Company to Pay $795 Million in PenaltiesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Leslie R. Caldwell, the Assistant Attorney General for the Criminal Division of the Department of Justice (“DOJ”), Richard Weber, Chief of the Internal Revenue Service-Criminal Investigation (“IRS-CI”), and Clark E. Settles, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”) Washington, D.C., Field Office, announced today the filing of criminal charges against VimpelCom Limited (“VimpelCom”), the world’s sixth-largest telecommunications company, with securities publicly traded in New York, and its wholly owned Uzbek subsidiary, Unitel LLC (“Unitel”) for conspiring to violate the Foreign Corrupt Practices Act (“FCPA”) by paying more than $114 million in bribes to a government official in Uzbekistan. VimpelCom was also charged with violating the FCPA’s internal control provisions.
Mr. Bharara also announced that in connection with the filed charges, Unitel pleaded guilty today before United States District Judge Edgardo Ramos, and that SDNY and the DOJ entered into a deferred prosecution agreement (“DPA”) with VimpelCom. Pursuant to the DPA, VimpelCom admitted to participating in the charged conspiracy. VimpelCom will pay a total criminal penalty of $230,163,199.20 to the United States, including $40 million in criminal forfeiture. VimpelCom further agreed to implement rigorous internal controls, retain a compliance monitor for a term of three years, and cooperate fully with the Government.
In related proceedings, VimpelCom reached a settlement with the U.S. Securities and Exchange Commission (“SEC”) and the Public Prosecution Service of the Netherlands (“PPS”). Under the terms of its resolution with the SEC, VimpelCom agreed to pay $375 million in disgorgement of profits and prejudgment interest. VimpelCom agreed to pay the PPS a criminal penalty of $230,163,199.20, yielding a total criminal penalty of $460,326,398.40, and a global resolution amount of more than $835 million. SDNY and the DOJ agreed under the DPA to credit the criminal penalty paid to PPS, and the SEC separately agreed to credit the forfeiture amount paid to the United States. Thus, the total of U.S. criminal and regulatory penalties paid by VimpelCom is $795,326,398.40.
DOJ also filed a civil complaint today seeking forfeiture of $550 million held in Swiss bank accounts which represent proceeds of illegal bribes paid, or property involved in the laundering of those payments, to the Uzbek official by VimpelCom and two other telecommunications companies operating in Uzbekistan. A previous complaint filed by DOJ seeks $300 million in proceeds of illegal bribes paid, or property involved in the laundering of those payments, by these companies to the same Uzbek official. In that case, on January 11, 2016, United States District Judge Andrew L. Carter, Jr. entered a partial default judgment against all potential claimants other than the Republic of Uzbekistan. As alleged in the two complaints, the telecommunications companies paid $850 million in bribes to the Uzbek official to obtain and retain the ability to do business in Uzbekistan.
Manhattan U.S. Attorney Preet Bharara said: “Today we mark the resolution of criminal charges and civil proceedings against corrupt corporate entities that made bribery a foundation of their business model. As they have admitted in court filings, VimpelCom, the world’s sixth largest telecommunications company, with securities traded in New York, and its subsidiary, Unitel, built their business in Uzbekistan on over $114 million in bribes funneled to a government official. Those payments, falsely recorded in the company’s books and records, were then laundered through bank accounts and assets around the world, including through accounts in New York.”
Assistant Attorney General Leslie R. Caldwell said: “These cases combine a landmark FCPA resolution for corporate bribery with one of the largest forfeiture actions we have ever brought to recover bribe proceeds from a corrupt government official. The Criminal Division’s FCPA enforcement program and our Kleptocracy Initiative are two sides of the same anti-corruption coin. The FCPA resolution in this case is also one of the most significant coordinated international and multi-agency resolutions in the history of the FCPA, and demonstrates our commitment both to pursuing justice and to bringing about corporate reform.”
IRS-CI Chief Richard Weber said: “Today’s admission of guilt by VimpelCom and Unitel to paying bribes to government officials is a victory for all who fight corruption at all levels. It also demonstrates the skill and tenacity of IRS Criminal Investigation special agents when it comes to delving underneath layers of financial transactions designed to conceal illegal payments for gain. The global economy demands a level playing field for all. When certain VimpelCom and Unitel executives chose to use deception in order to continue this scheme and take advantage of insider knowledge, they also chose to become criminals. IRS-CI pledges to continue our efforts on the international stage to stop corrupt financial schemes such as this one.”
HSI Special Agent in Charge Settles said: “HSI special agents and our law enforcement partners will continue to investigate financial crimes committed by corrupt foreign officials. We will not permit ill-gotten gains to be laundered through U.S. financial markets.”
According to the allegations contained in the criminal Informations and civil complaints, which were filed today in Manhattan federal court, the statement of facts set forth in the DPA, and other publicly available information:
Between approximately 2006 and 2012, VimpelCom and Unitel, through various executives and employees, paid more than $114 million in bribes to illegally obtain telecommunications business in Uzbekistan. The bribes were paid to an Uzbek government official who was a close relative of a high-ranking government official and who exercised influence over Uzbek telecommunications industry regulators. VimpelCom and Unitel structured and concealed the bribes through various payments to a shell company that certain VimpelCom and Unitel management knew was beneficially owned by the foreign official. The bribes were paid on multiple occasions over a period of approximately seven years so that VimpelCom could enter the Uzbek market and Unitel could gain valuable telecom assets and continue operating in Uzbekistan.
Under the direction and control of the Uzbek government official, the more than $114 million in bribery proceeds were laundered through accounts held in Latvia, the United Kingdom, Hong Kong, Ireland, Belgium, Luxembourg, and Switzerland. The illicit funds were transmitted through financial institutions in the Southern District of New York before they were deposited into accounts in those countries.
As a further part of the scheme, VimpelCom falsified its books and records and attempted to conceal and disguise the bribery scheme by classifying payments as equity transactions, consulting agreements, and so-called repudiation agreements and reseller transactions. VimpelCom likewise failed to implement and enforce adequate internal accounting controls, which allowed the bribe payments to occur without detection. Moreover, when the VimpelCom Board of Directors sought FCPA legal opinions assessing corruption risks in the transactions, certain members of VimpelCom management withheld crucial information from outside counsel performing the review, rendering the opinions worthless.
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Unitel was charged, and pleaded guilty to, one count of conspiring to violate the anti-bribery provisions of the FCPA. VimpelCom was charged in a two-count Information with conspiracy to violate the anti-bribery and books and records provisions of the FCPA, and with violating the FCPA’s internal controls provisions.
Mr. Bharara thanked the Fraud Section of the DOJ’s Criminal Division for their collaboration and praised the efforts of IRS-CI, the IRS Global Illicit Financial Team, and HSI in the investigation. He also thanked the SEC’s Division of Enforcement for its significant assistance in the investigation. Mr. Bharara also thanked law enforcement colleagues within the PPS, the Swedish Prosecution Authority, the Office of the Attorney General in Switzerland and the Corruption Prevention and Combating Bureau in Latvia, as well as Belgium, France, Ireland, Luxembourg, Norway and the United Kingdom. Mr. Bharara also thanked the Department of Justice’s Office of International Affairs for its significant assistance in this matter.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit and the FCPA Unit of the Fraud Section of DOJ’s Criminal Division. Assistant United States Attorney Edward A. Imperatore, Senior Litigation Counsel Nicola Mrazek, and Trial Attorney Ephraim Wernick are in charge of the prosecution. AFMLS Trial Attorney Marie M. Dalton is handling the forfeiture aspects of the case.
Georgia Trader Pleads Guilty to Largest Known Computer Hacking and Securities Fraud SchemeRead the Press Release
More Than 150,000 Press Releases Stolen from Three Major Newswire Companies, Used to Generate Approximately $30 Million in Illegal Trading Profits
NEWARK, N.J. – Arkadiy Dubovoy, 51, of Alpharetta, Georgia, today admitted his role in an international scheme to hack into three business newswires and steal yet-to-be published press releases containing non-public financial information that was then used to make trades that allegedly generated approximately $30 million in illegal profits, New Jersey U.S. Attorney Paul J. Fishman announced.
Arkadiy Dubovoy pleaded guilty before U.S. District Judge Madeline Cox Arleo to Count One of an indictment charging him with conspiracy to commit wire fraud. He was arrested on Aug. 11, 2015, in connection with a federal indictment brought by the District of New Jersey charging five individuals – two computer hackers and three securities traders – in a large-scale, international conspiracy to hack and steal press releases containing confidential nonpublic financial information relating to hundreds of companies traded on the NASDAQ and NYSE from three newswires.
“Today, another defendant pleads guilty to his role in an international plot to loot non-public press releases from three major newswire companies and exploit them for millions in illicit proceeds,” U.S. Attorney Fishman said. “The conviction of Arkadiy Dubovoy, who admitted trading on the stolen information and splitting the profits with hackers in Ukraine, was made possible by the hardworking prosecutors and agents who unraveled this unprecedented scheme.”
“For more than three decades, the Secret Service has been a leader in investigating cybercrimes and protecting the U.S. financial infrastructure,” Joseph P. Clancy, Director of the U.S. Secret Service, said. “This case embodies a vital part of the agency’s integrated mission and the success that we have achieved in investigating these highly complex crimes. There will always be inherent challenges in investigating cybercrime, but the Secret Service is committed to working with our law enforcement and global partners to safeguard the Nation’s financial infrastructure.”
In addition to Arkadiy Dubovoy, the 23-count New Jersey federal indictment charges Ivan Turchynov, 27, Oleksandr Ieremenko, 24, and Pavel Dubovoy, 32, all of Ukraine, and Igor Dubovoy, 28, of Alpharetta, Georgia. The defendants are all charged with wire fraud conspiracy, securities fraud conspiracy, wire fraud, securities fraud, and money laundering conspiracy. Additionally, Ivan Turchynov and Oleksandr Ieremenko are charged with computer fraud conspiracy, computer fraud, and aggravated identity theft. Igor Dubovoy pleaded guilty to his role on Jan. 20, 2016.
The U.S. Attorney’s Office for the Eastern District of New York (EDNY), in a related indictment charged four securities traders: Vitaly Korchevsky, 50, of Glen Mills, Pennsylvania, Vladislav Khalupsky, 45, of Brooklyn, New York and Odessa, Ukraine, Leonid Momotok, 47, of Suwanee, Georgia, and Alexander Garkusha, 47, of Cummings and Alpharetta, Georgia. The EDNY defendants are charged with wire fraud conspiracy, securities fraud conspiracy, securities fraud, and money laundering conspiracy. On Dec. 21, 2015, Alexander Garkusha pleaded guilty to Count One of the EDNY indictment charging him with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Between February 2010 and August 2015, Turchynov and Ieremenko, computer hackers based in Ukraine, gained unauthorized access into the computer networks of Marketwired L.P. (Marketwired), PR Newswire Association LLC (PRN), and Business Wire. They used a series of targeted cyber-attacks, including “phishing” attacks and SQL injection attacks, to gain access to the computer networks. The hackers moved through the computer networks and stole press releases about upcoming announcements by public companies concerning earnings, gross margins, revenues, and other confidential and material financial information.
At one point, one of the hackers sent an online chat message in Russian to another individual stating, “I’m hacking prnewswire.com.” In another online chat, Ieremenko told Turchynov that he had compromised the log-in credentials of 15 Business Wire employees.
The hackers shared the stolen releases with the traders using overseas computer servers that they controlled. In a series of emails, the hackers even shared “instructions” on how to access and use the overseas server where they shared the stolen releases with the traders, and the access credentials and instructions were distributed amongst the traders. In an email, which was sent by one of the traders, the instructions for accessing the overseas server suggested that users conceal their Internet Protocol address when accessing the server as a precaution to avoid detection. The traders created “shopping lists” or “wish lists” for the hackers listing desired upcoming press releases for publicly traded companies from Marketwired and PRN. Trading data obtained over the course of the investigation showed that, after the shopping list was sent, the traders and others traded ahead of several of the press releases listed on it.
The traders generally traded ahead of the public distribution of the stolen releases, and their trading activities shadowed the hackers’ capabilities to exfiltrate stolen press releases. In order to execute their trades before the releases were made public, the traders sometimes had to execute trades in extremely short windows of time between when the hackers illegally accessed and shared the releases and when the press releases were disseminated to the public by the newswires, usually shortly after the close of the markets. Frequently, all of this activity occurred on the same day. Thus, the trading data often showed a flurry of trading activity around a stolen press release just prior to its public release.
The traders traded on stolen press releases containing material nonpublic information about the following publicly traded companies that included, among hundreds of others: Align Technology, Inc.; Caterpillar Inc.; Hewlett Packard; Home Depot; Panera Bread Co.; and Verisign, Inc.
The traders paid the hackers for access to the overseas servers based, in part, on a percentage of the money the traders made from their illegal trading activities. The hackers and traders used foreign shell companies to share in the illegal trading profits.
At today’s plea hearing, Arkadiy Dubovoy admitted that when he purchased the stolen press releases from the computer hackers operating in Ukraine, he knew they contained earnings announcements for publicly trading companies that had not yet been made public. Arkadiy Dubovoy also admitted that he sent the releases to either Korchevsky or Khalupsky so that they could review them and determine which trades would be profitable based on the stolen material information.
Arkadiy Dubovoy also admitted that he directed others, including Igor Dubovoy and Korchevsky, to manage the brokerage account he used as part of the scheme. He also admitted that he provided the hackers with access to at least one of his trading accounts so that they could confirm how much money was being made from the stolen information. According to Arkadiy Dubovoy, his arrangement with the hackers gave them approximately 50 percent of any profits resulting from the stolen press releases they provided.
The conspiracy charge to which Arkadiy Dubovoy pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, Criminal Investigations Division, under the direction of Director Joseph P. Clancy, and special agents from the Newark Field Office, under the direction of Acting Special Agent in Charge Jeffrey Wood, with the ongoing investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Andrew S. Pak, Daniel Shapiro, David M. Eskew, and Nicholas Grippo of the Economic Crimes Unit, Computer Hacking & Intellectual Property Section, Assistant U.S. Attorney Svetlana M. Eisenberg of the General Crimes Unit, and Assistant U.S. Attorney Sarah Devlin of the Asset Forfeiture and Money Laundering Unit.
Defense counsel: Michael Critchley, Sr., Esq., Michael Critchley, Jr., Esq., Critchley, Kinum & Vazquez, LLC
Former teacher sentenced to nearly five years in prison for child pornographyRead the Press Release
A former school teacher was sentenced to nearly five years in prison for possession of child pornography, said Carole Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Jacob Garlock, 27, was sentenced to 57 months in prison. He previously pleaded guilty to one count of child pornography.
This case was prosecuted by Assistant U.S. Attorney Michael Sullivan following an investigation by the FBI.
Former Customs and Border Protection Officer Sentenced to Eight Years for Receiving Bribes and Drug TraffickingRead the Press Release
TUCSON– Yesterday, Johnny G. Acosta, 38, of Douglas, Ariz., was sentenced to eight years in prison by U.S. District Judge Cindy K. Jorgenson. Acosta was previously employed as a United States Customs and Border Protection (CBP) Officer at the Douglas, Ariz. Port of Entry, where he began working in 2008. Acosta previously pleaded guilty to felony charges of conspiracy to import more than 1,000 kilograms of marijuana and accepting bribes as a public official.
U.S. Attorney John S. Leonardo stated, “As a port of entry inspector, Acosta served at the front line of America’s effort to keep illicit drugs from flowing into our country. He broke the public trust by succumbing to greed. Corrupt officials like Acosta degrade the public’s faith that their government employees will faithfully execute the laws of the United States. It is a top priority of the U.S. Attorney’s Office and our law enforcement partners to vigilantly protect the integrity of our government. The successful prosecution of Acosta was due to the hard work, perseverance, and ingenuity over the last three years of the Cochise Border Corruption Task Force, which includes the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement (ICE) Office of Professional Responsibility, CBP Internal Affairs, Homeland Security Investigations (HSI), and the Douglas Police Department.”
“Those in law enforcement capacities are supposed to uphold our nation’s laws, not willingly break them,” said acting special agent in charge for U.S. Immigration and Customs Enforcement, Office of Professional Responsibility - Western Region, Martin Suarez. “It’s always difficult when the actions of a single officer stain the honor and integrity of law enforcement officers who choose to put their lives on the line in order to uphold the law. Guarding against illegal or unethical behavior is not an option; it’s an obligation we have to the people we serve.”
“This sentencing demonstrates the continued commitment of the FBI and its law enforcement partners to identify and root out corrupt public officials. The FBI takes all allegations of corruption seriously as we hold our public officials to the highest levels of integrity,” stated FBI Special Agent in Charge Douglas G. Price.
Acosta, a lifelong resident of Douglas, spent his entire career with CBP at the Douglas Port of Entry. The investigation led to the indictment of Acosta and five other individuals on an array of drug-related charges. On October 20, 2015, Acosta was arrested by the FBI at the International Border in Nogales, Ariz., as he attempted to flee into Mexico to avoid prosecution.
Two of the co-defendants in the case have pleaded guilty to charges in connection with the conspiracy to import marijuana into the United States. One of those defendants, Ricardo Peralta-Cuevas, was previously sentenced to 37 months in prison. The other defendant is pending sentencing. A third defendant is scheduled to enter a guilty plea on February 22, 2016. The remaining two defendants in the Indictment remain fugitives.
The prosecution was handled by Assistant U.S. Attorney Wallace H. Kleindienst in the Tucson Office.
CASE NUMBER: CR-15-00775-TUC-CKJ
RELEASE NUMBER: 2016-011_Acosta
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former Chief Financial Officer Admits to Stealing $1.6 Million from Three EmployersRead the Press Release
Greenbelt, Maryland –Christopher C. Camut, age 53, of Baltimore, Maryland, pleaded guilty today to conspiracy to commit wire fraud arising from a scheme to fraudulently obtain at least $1.6 million from three companies at which he was employed as the chief financial officer.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
At various times between January 2007 and August 2014, Camut was the chief financial officer for three companies. Company A is a non-profit organization that develops microbicides that can provide women in developing countries with protection against HIV infection. Company B manufactures products for the medical industry, and Company C develops medical countermeasures against biological and chemical threats.
According to his plea agreement, from January 2008 to May 2014, Camut created false emails, engagement letters, agreements and invoices to make it appear as if financial institutions had provided services to the companies. He caused the companies to issue checks payable to the financial institutions, which Camut then deposited into his personal bank accounts. Over the period of six years, Camut stole at least $1,618,951 from the three companies.
Camut created agreements between coconspirator Kaitlyn Jones and Companies A, B and C, which falsely represented Jones’ profession. Camut caused the three companies to transfer by wire and issue checks payable to Jones, although Jones performed no work for the companies. Camut and Jones shared the proceeds received from the companies.
To facilitate the fraud, Camut repeatedly forged on documents the name and signature of a bank employee, to make it appear as if the bank had performed work for Companies A and C, when it had not. Camut forged the victim’s name over 15 times.
Camut has agreed to forfeit and pay restitution of $1,618,951.
Camut and the government have agreed that if the Court accepts the plea agreement, Camut will be sentenced to 80 months in prison. U.S. District Judge Peter J. Messite has scheduled sentencing for May 19, 2016 at 9:30 a.m.
Kaitlyn Jones, age 48, of Reisterstown, Maryland, pleaded guilty to her participation in the conspiracy and awaits sentencing.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorneys Leah Jo Bressack and David I. Salem, who are prosecuting the case.
Former Bank President IndictedRead the Press Release
HAMMOND- United States Attorney David A. Capp announced today that an Indictment was filed charging Mark Warne, 46, of Brook, Indiana with ten counts of Bank Fraud and four counts of Identity Theft.
According to the Indictment, Warne, a former President of Community State Bank, allegedly devised a scheme to defraud the bank. Warne allegedly caused Community State Bank to issue over six million dollars in fraudulent loans. Warne is alleged to have obtained the loans using the identities of four known individuals, three of whom were related to Warne and none of whom received any of the proceeds of the loans.
The Indictment further alleges that Warne concealed the loans from bank board members by creating two sets of minutes for the meetings of the board of directors, one for the bank’s board of directors to read and approve and second for the Federal Deposit Insurance Corporation (FDIC) examiners to review. While the minutes shown to the FDIC examiners made it appear as if the bank’s board of directors was aware of the loans, the actual board minutes made no mention of the loans. Warne served as President of Community State Bank from on or about September of 2010 to September of 2015. Warne’s employment with Community State Bank ended after his scheme to defraud the bank was uncovered.
This case was investigated by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation, Office of Inspector General. The case is being prosecuted by Assistant United States Attorneys Joshua P. Kolar and Abizer Zanzi.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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Federal Jury in Sherman Convicts Oklahoma Man for Endangered Species ViolationsRead the Press Release
African Leopard mount shipped in interstate commerce
SHERMAN, Texas – After just over 3 hours of deliberations, a federal jury in Sherman found a Calvin, Oklahoma man guilty of committing Lacey Act and Endangered Species Act violations in connection with the shipment of an African Leopard trophy mount from Oklahoma to the Eastern District of Texas yesterday, announced U.S. Attorney John M. Bales today.
Steven Michael Seibert, 56, is owner-operator of Triple S Wildlife Ranch near Calvin, Oklahoma. Seibert offers guided hunts of domestic and exotic wildlife on this 3,000 acre, high fenced, ranch. Seibert also commercially trades in taxidermy via his website “Wildlife Creations”.
In August of 2012 Agents with U.S. Fish and Wildlife learned that Seibert was offering a full body mount, African Leopard trophy for sale on his website for $3,995.00. African Leopards are listed as an endangered Species under the Endangered Species Act and therefore it is unlawful to offer them for sale in interstate commerce. Fish and Wildlife agents had been in contact with Seibert on previous occasions regarding his international shipments of taxidermy wildlife and so the agents knew that Seibert was aware of the restrictions on trading in endangered species.
Agents contacted Seibert in an undercover capacity posing as Denton, Texas resident interested in purchasing the leopard mount. Seibert told the “buyer” that although the leopard trophy was in his inventory in Oklahoma, he could sell the leopard to a Texan so long as they could “keep it straight” that the leopard was actually being sold by another Texas resident in Bonham. On August 13, 2012, Seibert’s delivery driver delivered the leopard to the undercover agent at a self-storage unit in Denton, Texas. The driver also presented an invoice that indicated that the seller was a Bonham, Texas resident. When questioned by agents, the driver advised that Seibert had instructed him to tell “anyone who asked” that the leopard had come from Bonham, Texas. Agents called Seibert and claimed that they had just learned about the leopard transaction and asked him explain it. Seibert claimed that the leopard had come from Bonham, Texas and had “never left Texas.” Agents knew this to be false because they had conducted surveillance on the delivery truck from the ranch in Oklahoma all the way to Denton, Texas.
Seibert testified at trial that the leopard he sold to the undercover agent was actually owned by the Bonham resident who had purchased it at an auction in Ft. Worth, Texas in 2011. Seibert told the jury that he was only “helping” the Bonham man sell the leopard. However, the Bonham resident told the jury that it was Seibert who had purchased the leopard at the Ft. Worth auction and that he had no financial interest in it whatsoever. The government offered evidence that the leopard purchased at the Ft. Worth auction was actually a different leopard and that the leopard Seibert had sold to the undercover agent had been at Seibert’s hunting lodge since at least January of 2010.The jury also found that the false invoice Seibert had prepared was a Lacey Act violation. The Lacey Act prohibits the use of a false label in connection with the sale of wildlife in interstate commerce.
Seibert is facing up to five years in prison and a $250,000.00 fine. A sentencing date has not been set.
This case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement in Ft. Worth, Texas, and was prosecuted by Assistant U.S. Attorney Jim Noble.
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Federal Judge Sentences Coin and Precious Metals Dealer and His Company for Defrauding over 380 Customers NationwideRead the Press Release
CHARLOTTE, N.C. – A coin and precious metals dealer and his company responsible for defrauding more than 380 customers of over $15 million were sentenced in federal court late Wednesday, February 17, 2016, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. sentenced Hannes Tulving, Jr., 60, of Newport Beach, California to 30 months in prison and three years of supervised release. The company was ordered to pay a $10 million fine and was placed on a probationary period of two years. Judge Cogburn reserved his ruling on the amount of restitution owed by Tulving and the company for 90 days.
Matthew Quinn, Assistant Special Agent in Charge of the United States Secret Service, Charlotte Field Division joins U.S. Attorney Rose in making today’s announcement.
According to the filed court documents and statements made in court, Hannes Tulving was the sole owner, shareholder and president of The Tulving Company, Inc. (Tulving Co.), a California-based business that sold coins, bullion, and other precious metals over the Internet. Court records show that from about August 2013 to January 2014, Tulving and his company executed a scheme to defraud customers nationwide by inducing them to place orders for coins and other merchandise knowing those orders could not be fulfilled. Court records show that the customers paid for the merchandise expecting their orders to be delivered within a certain time frame as advertised on the company’s website.
Court documents show that Tulving and his company accepted the customers’ payments but failed to deliver some of the merchandise. Instead, they diverted the customers’ payments to fulfill other customers’ orders, to pay company debts and to return the money to previous customers who did not receive their merchandise. According to court documents filed in the case, the defendants defrauded more than 380 victims nationwide of over $15 million. Hannes Tulving and the Tulving Co. each pleaded guilty to one count of wire fraud in August 2015.
In handing down Tulving’s sentence, Judge Cogburn noted what a staggering amount of money was stolen from the victims in such a short period of time. He also noted the seriousness of the offense and said that, “People were seriously harmed and their lives are affected. These people saved up money and they were hurt.”
Hannes Tulving will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The U.S. Secret Service handled the investigation. Assistant U.S. Attorney Kevin Zolot prosecuted this case.
Federal Judge Sentences Buncombe Co. Man to Nine Months in Prison for Tax EvasionRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced today Jarrett D. Mitchem, 66, of Hendersonville, N.C. to 9 months in prison on tax evasion charges, Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Mitchem was also ordered to serve 2 years under court supervision after he is released from prison, plus an additional 3 months of home confinement. The court ordered that he pay $151,089 as restitution to the Department of Treasury.
U.S. Attorney Rose is joined in making today’s announcement Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
“Hiding money in secret offshore accounts and failing to report the income generated from those accounts is a crime that my office takes very seriously. Tax cheats like Mitchem who choose not to pay their fair share and increase the burden on honest taxpayers will be prosecuted for their actions. Citizens must ask themselves, is it worth a stint in federal prison to be a tax cheat?” said U.S. Attorney Rose.
“The Internal Revenue Service, Criminal Investigation is committed to ensuring respect for our laws; particularly with taxpayers who would use Swiss banks to conceal their foreign investments and income,” said IRS-CI Special Agent in Charge Holloman.
In February 2009, the Union Bank of Switzerland (UBS) entered into a deferred prosecution agreement with the United States on charges of conspiring to defraud the United States by impeding the IRS, by helping U.S. taxpayer clients hide funds from the IRS in secret offshore accounts. As part of its deferred prosecution agreement, UBS also agreed to provide to the government the identities of, and account information for, of persons who likely had engaged in actions designed to evade United States income tax liabilities, including Mitchem’s.
According to court records, beginning on or about November 1995, Mitchem opened a Swiss bank account at UBS. Court records show that in 2005, Mitchem transferred to his UBS account approximately $4 million he inherited from his parents, who also maintained a bank account at UBS.
Court documents indicate that in or about May 2011 an IRS revenue agent contacted Mitchem regarding the UBS accounts. According to court records, Mitchem initially withheld some information pertaining to his UBS accounts but agreed to provide the UBS bank records after he was confronted by the IRS agent. However, court records show that Mitchem only provided bank records for his parents’ UBS account and not his personal UBS account.
In November 2011, Mitchem filed his federal tax return forms for tax years 2004 through 2007, in which he failed to claim capital gains and substantial interest income from money held in his UBS bank account. Mitchem admitted in court and in filed documents that he knew his earnings should have been claimed and that he willfully omitted reporting them to avoid the payment of additional income tax. Mitchem also admitted that the tax loss associated with the unclaimed income from his Swiss bank account is over $150,000.
Mitchem will be ordered to report to the Federal Bureau of Prison upon designation of a designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by IRS-CI. The case was prosecuted by Assistant United States Attorney Don Gast of the U.S. Attorney’s Office in Asheville.
Farmington Man Charged with Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Christopher Ulibarri, 29, of Farmington, N.M., made his initial appearance today in federal court in Albuquerque, N.M., on a criminal complaint charging him with being a felon in possession of a firearm and ammunition. Ulibarri remains in custody pending a preliminary hearing and a detention hearing, both of which are scheduled for tomorrow.
Ulibarri was arrested yesterday by the Bureau of Alcohol, Tobacco, Firearms and Explosives for unlawfully possessing a firearm and ammunition in San Juan County, N.M., on Aug. 15, 2015. The criminal complaint alleges that on that day, officers of the Farmington Police Department responded to a restaurant in Farmington after receiving a report that Ulibarri carried a rifle into the restaurant. The officers located Ulibarri in the restaurant; he allegedly was holding a rifle, which he refused to drop despite repeated commands from the officers. The complaint alleges that an officer had to forcibly remove the rifle, which was loaded with four rounds of ammunition, from Ulibarri.
The criminal complaint states that Ulibarri was prohibited from possessing firearms or ammunition on Aug. 15, 2015, because of his status as a convicted felon. Ulibarri previously had been convicted of residential burglary, larceny and criminal damage to property in the 11th Judicial District Court for the State of New Mexico.
Ulibarri was arrested on related state charges on Aug. 15, 2015. Those charges have been dismissed in favor of federal prosecution.
If convicted of the crime charged in the criminal complaint, Ulibarri faces a maximum penalty of ten years in federal prison. Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Farmington Police Department, with assistance from the 11th Judicial District Attorney’s Office. Assistant U.S. Attorney Jacob A. Wishard is prosecuting the case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including San Juan County, under this initiative.
Eight Federally Charged as Part of Violent Crime InitiativeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the arrest of eight defendants on federal firearms and drug charges (see chart below). Penalties for the various offenses range from 5 to 40 years’ imprisonment. The arrests are the result of a violent crime initiative being jointly undertaken by the United States Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Hillsborough County Sheriff’s Office (HCSO).
“Fighting violent crime is a top priority of my Office,” said U.S. Attorney Bentley. “We’re doing that by prosecuting felons possessing firearms and drug traffickers in the areas most victimized by violent crime. We’re very grateful for the hard work and dedication of ATF and our tremendous local partners, the Hillsborough County Sheriff’s Office and the Hillsborough County State Attorney’s Office.”
“ATF will continue to work with our law enforcement partners and commit personnel and specialized resources in order to remove from our community individuals that use a gun to commit acts of violence,” said Special Agent in Charge Regina Lombardo, ATF-Tampa.
"Due to the increase in violent crimes involving firearms around the country, it is critical that we address these issues immediately through a variety of enforcement efforts. One effective measure are joint operations such as this, where we can optimize our manpower and strategically focus on offenders who put the citizens in our county in danger," stated Colonel Donna Lusczynski of the Hillsborough County Sheriff’s Office.
An indictment is merely a formal charge that a defendant has committed violations of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hillsborough County Sheriff’s Office. They will be prosecuted by Assistant United States Attorneys Natalie Hirt Adams, Michael Leeman, Shauna Hale, Taylor Stout, and Carlton C. Gammons.
These cases are prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to combat violent crime in our communities.
East Hampton Man Pleads Guilty to Using Computer to Entice Minors to Engage in Sexual ActivityRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, announced that KEITH HAESSLY, 46, of East Hampton, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to using a computer to persuade minors to engage in unlawful sexual activity.
According to court documents and statements made in court, between approximately August 2013 and June 2015, HAESSLY, using video chat programs such as Skype and Omegle, posed as a young female and used previously-recorded videos of females to entice numerous boys to engage in sexual activity over webcams. HAESSLY then made recordings of the boys engaged in sexual activity, and distributed some of the images he recorded to an individual in Virginia.
To date, investigators have identified 48 individual victims. The effort to identify additional victims is ongoing.
HAESSLY has been detained since his arrest on June 3, 2015. At the time of his arrest, he was a member of the Connecticut Air National Guard.
HAESSLY pleaded guilty to one count of use of an interstate facility to persuade a minor to engage in unlawful sexual activity, an offense that carries a mandatory minimum term of imprisonment of 10 years, a maximum term of imprisonment of life and a fine of up to $250,000. A sentencing date is not yet scheduled.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, with the assistance of the Connecticut Air National Guard Office of Special Investigations. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Eagle Butte Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to an Intimate Partner was sentenced on February 16, 2016, by U.S. District Judge Roberto A. Lange.
Andrew High Bear, age 38, was sentenced to 5 months in custody, 2 years of supervised release, and $100 special assessment to the Federal Crime Victims Fund.
High Bear was indicted for Assault with a Dangerous Weapon and Assault Resulting in Substantial Bodily Injury to an Intimate Partner by a federal grand jury on August 11, 2015. He pled guilty to Assault Resulting in Substantial Bodily Injury to an Intimate Partner on November 30, 2015.
The conviction arose from a May 21, 2015, incident at Eagle Butte, SD, when the victim said something that angered High Bear. High Bear went to strike the victim as she lay on the bed. To shield herself, the victim rolled on her side and put her arms over her head. High Bear hit the victim at least twice on the back of the head so hard that each time she was hit, the victim saw a flash of light. Her head began to bleed. Because she was facing away from High Bear, the victim was unable to see if High Bear had an object or weapon in his hand while he was hitting her. When the victim attempted to flee, High Bear grabbed her arm to stop her, causing bruising on her upper right arm. The victim pulled away and went to a neighbor’s house to call for help. When the Cheyenne River Sioux Tribe Police responded and entered the apartment, they saw a sharp spoon lying on the ground with what appeared to be blood on it. The victim had a laceration to the back of her head.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
High Bear was immediately turned over to the custody of the U.S. Marshals Service.
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Drunk Driver Sentenced to Three Years in Prison for Manslaughter in Fatal Car CrashRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Carlos Arnulfo Chacon Chacon, age 42, of Laurel, Maryland today to three years in prison followed by one year of supervised release for manslaughter by vehicle – criminal negligence, driving under the influence of alcohol, driving an uninsured vehicle, reckless driving, and failure to drive in a single lane charges.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief of Police Robert D. MacLean of the U.S. Park Police.
According to his plea agreement, at about midnight on February 1, 2014, Chacon Chacon, who was in the United States illegally, was driving a Toyota Celica northbound on the Baltimore-Washington Parkway. Two motorists noticed that he was driving erratically, weaving across the road and leaving the travel lanes as he went onto the shoulder. They called 911. As one of the witnesses was speaking with the 911 operator, Chacon Chacon crashed his car into a Mitsubishi traveling northbound in the right lane, on a straight area of the highway.
The Mitsubishi went over a stone wall and then went airborne, striking a tree and causing its roof to collapse down into the passenger compartment. Chacon Chacon’s car struck the stone wall, spun around, and struck the stone wall a second time, finally coming to rest partially in the highway, perpendicular to oncoming traffic.
At the accident scene, Chacon Chacon was able to walk away from his vehicle and spoke with police and emergency medical technicians. He twice declined medical treatment and admitted to drinking six beers shortly before driving. He was under the influence of alcohol, with a blood-alcohol level of .17 percent. A case of beer was in the back seat of his car. His car was not insured.
Emergency medical services cut open the Mitsubishi and extracted the driver, Yolanda Michelle Holt, age 36, of Columbia, Maryland, who sustained extreme head trauma and experienced cardiac arrest. Ms. Holt remained hospitalized in a coma for nearly eight months and died on September 22, 2014. Ms. Holt, a District of Columbia public school employee, left behind three children.
United States Attorney Rod J. Rosenstein commended the U.S. Park Police for its work in the investigation and thanked Assistant U.S. Attorney Hollis Raphael Weisman and Special Assistant United States Attorney Gustav William Eyler, of the U.S. Justice Department, who prosecuted the case.
District Man Found Guilty of Beating a Man and Joining in Slashing a Good Samaritan Who Attempted to Stop the AttackRead the Press Release
WASHINGTON – Frank G. Smith, 34, of Washington, D.C., has been found guilty by a jury of aggravated assault and simple assault for his role in the attack of two men that took place in December 2013 near the entrance to the U Street Metro station in Northwest Washington, U.S. Attorney Channing D. Phillips announced today.
Smith was found guilty on Feb. 17, 2016, following a trial in the Superior Court of the District of Columbia. The Honorable Florence Pan scheduled sentencing for April 22, 2016.
According to the government’s evidence, in the early morning hours of Dec. 21, 2013, Smith and others attacked a man who had been involved in a traffic dispute with one of Smith’s friends. That man was taken down to the ground near the U Street Metro entrance, at 10th and U Streets NW, and Smith and his friends began kicking him as he lay on the ground defenseless.
A second man, the Good Samaritan, saw the beating taking place. He yelled at Smith and Smith’s friends to stop kicking the man on the ground, who appeared unconscious. When they refused to stop, the Good Samaritan intervened by pushing Smith and the others away from the man on the ground. One of Smith’s friends then began fighting with the Good Samaritan. As the Good Samaritan separated from his first attacker, he noticed that he was cut and bleeding across the right side of his chest. Smith then continued attacking him, at which point the Good Samaritan felt and saw that his left hand had been cut to the bone between his index finger and thumb. As the police arrived on the scene, Smith stopped his attack and attempted to walk away, but he was stopped by the police and identified at the scene by the victim who was cut.
No knife or sharp object was recovered from Smith, but he had blood on his face and clothes. Subsequent DNA analysis revealed that the Good Samaritan’s DNA was found on Smith’s clothes.
In announcing the verdict, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by Bode Technologies. 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 Lynda Randolph, Donville Drummond, and Allison Daniels; Criminal Investigator Melissa Matthews; Litigation Technology Supervisor Joshua Ellen; and Assistant U.S. Attorneys Patricia A. Riley and Chrisellen Kolb. Finally, he praised the work of former Assistant U.S. Attorney Kathleen Connolly, who secured the indictment, and Assistant U.S. Attorneys Laura Crane and Fernando Campoamor-Sanchez, who tried the case.
Department of Justice and Federal Trade Commission Encourage Massachusetts to Consider Expanding Treatment Options for GlaucomaRead the Press Release
Agencies Submit Joint Statement Regarding Proposed Legislation Addressing Glaucoma Care by Optometrists in Massachusetts
The Department of Justice’s Antitrust Division and the Federal Trade Commission (FTC) have issued a joint statement encouraging the Massachusetts legislature to consider expanding the services that optometrists can provide to glaucoma patients. The statement describes the potential benefits to patients of enhanced competition among glaucoma care providers, including greater access to timely and cost competitive care. It recommends that the legislature only maintain restrictions on the ability of optometrists to treat glaucoma that are necessary to ensure patient health and safety.
The joint statement is in response to a request by Massachusetts State Representative Bradley H. Jones for views on the possible competitive effects of Massachusetts House Bill 1973 (HB 1973), which would expand the scope of practice for optometrists in Massachusetts and permit them to treat glaucoma and other optical diseases.
“Patients suffering from glaucoma – which affects 2.7 million Americans nation-wide – deserve safe, effective and affordable treatment options,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “As our statement explains, increasing competition among glaucoma care providers in Massachusetts, consistent with patient safety, can help provide greater access to care that is also more timely and cost competitive.”
The agencies’ comments are limited to HB 1973’s effect on glaucoma care. Glaucoma is the second leading cause of blindness worldwide, but early diagnosis and managed treatment offer protection against the risk of vision loss or blindness. With respect to glaucoma care, HB 1973 would allow optometrists in Massachusetts – like optometrists in other states – to treat glaucoma patients using medications, subject to certain training and referral requirements. Providing optometrists a role in glaucoma care, with conditions the legislature finds appropriate to ensure patient safety, has the potential benefit to bring the benefits of competition to Massachusetts health care consumers.
Dallas Man Sentenced to 13 Months in Federal Prison for Aiming Laser Pointer at a DPS HelicopterRead the Press Release
DALLAS — Orlando Jose Chapa, 37, of Dallas, was sentenced this morning by U.S. District Judge Reed C. O’Connor to 13 months in federal prison following his guilty plea in November 2015 to indictment charging one count of aiming a laser pointer at an aircraft, announced U.S. Attorney John Parker of the Northern District of Texas.
Chapa, who is on bond, was ordered to surrender to the Bureau of Prisons on March 24, 2016.
According to documents filed in the case, on or about May 30, 2015, in the Dallas Division of the Northern District of Texas, Chapa knowingly aimed the beam of a laser pointer at a Texas Department of Public Safety (DPS) helicopter and at the flight path of that aircraft. Chapa aimed the laser at the helicopter from his driveway as it was flying overhead.
The FBI, Texas DPS and the Dallas Police Department investigated. Special Assistant U.S. Attorney Lara Burns prosecuted the case.
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Couple Sentenced for Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Alfred Dasilva, 47, of Greece, NY and Sharon Sexton, 46, of Gates, NY, who were convicted of production of child pornography were sentenced by Chief U.S. District Court Judge Frank P. Geraci. Dasilva received 250 months in prison and Sexton 190 month in prison. Both defendants were also sentenced to 25 years supervised release and will have to register as sex offenders upon release from prison.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that the investigation began when a school resource officer employed by the Gates Police Department was informed by a school official that Sexton was taking nude photos of a female student. The ensuing investigation determined that Sexton sent these photos to her boyfriend, Alfred Dasilva. Sexton was interviewed by law enforcement and admitted to both taking the photos and then sending them to Dasilva. She told officers that she took the photos and sent them to Dasilva because he asked her to, and that Dasilva used the naked photos to “fantasize.”Federal investigators examined Dasilva’s cellphone and also located a video of a child performing oral sex on Dasilva. Sexton admitted to being the person who took the video. Several online chats were also recovered from the cellphone in which Sexton and Dasilva graphically discussed engaging in sexual conduct with children.
The defendants were also charged in State Court related to sexual activity with a child and endangering the welfare of a child. Those charge remain pending.
The sentencings are the culmination of a joint investigation by the Gates Police Department and the Federal Bureau of Investigation Child Exploitation Task Force consisting of the Monroe County Sheriff’s Office, the Rochester Police Department, the Greece Police Department and Immigration and Customs Enforcement, Homeland Security Investigations.
Convicted felon sentenced for possessing “zip” guns and ammunitionRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Bossier City man was sentenced Wednesday to 77 months in prison for illegally possessing ammunition.
Sidney Joseph Patterson, 45, of Bossier City, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession of ammunition by a convicted felon. He was also sentenced to serve three years of supervised release. According to the October 1, 2015 guilty plea, Bossier Parish Sheriff’s deputies began investigating the January 9, 2015 discharge of a homemade “zip gun” firearm at Patterson’s residence, which wounded Patterson in the back. Found at the residence was the discharged zip gun and three other zip guns loaded with two rounds of 12 gauge shotgun ammunition and one round of .380 caliber ammunition. Prior to this offense, Patterson had other felony drug convictions.
A “zip gun” is an improvised firearm not manufactured by a firearms manufacturer or gunsmith, ranging in quality from crude weapons that are as much a danger to the user as the target, to high-quality arms.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm and to promote firearm safety.
The ATF and the Bossier Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
Convicted Murderer and Known Gang Member Among Two Guilty for Gun Crimes After TrialsRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced guilty verdicts in two separate gun-related trials that each concluded on Wednesday, February 17, 2016. Antuan Rochelle Gaines, 36, of Little Rock was found guilty by a jury of being a felon in possession of a firearm, and Justin Patrick Stegall, 30, of Benton, was found guilty by a jury for being in possession of an unregistered short-barreled rifle. United States District Judge Kristine G. Baker presided over the two-day trial of Gaines and United States District Court Judge Billy Roy Wilson presided over the two-day trial of Stegall.
According to evidence presented at trial, on November 4, 2013, Little Rock Police Department homicide detectives and other uniformed officers approached Gaines and six other known members of the Highland Park Pirus—a Blood-affiliated gang in central Arkansas—in the parking lot adjacent to Ugly Mike’s Records on 12th Street to attempt to conduct interviews in connection with the homicide of Marcus Hunter. When Little Rock Patrol Officer Charles Starratt got out of his patrol car, he saw Gaines reach toward his waist band and bend down behind a car. He then heard the sound of metal hitting the asphalt.
When Officer Starratt searched behind the car he found a loaded Kimber, .45 caliber pistol. The pistol had been reported stolen after a residential burglary a few months prior. Gaines, who has a prior conviction for first-degree murder in Case No. CR-94-1194 in Pulaski County Circuit Court, was indicted on July 2, 2014, for being a felon in possession of a firearm.
As presented during the Stegall trial, on September 10, 2013, Stegall was discovered to have a loaded, unregistered short barreled in his vehicle, which was located in a shopping center in Benton. Benton Police Department officers had responded to the scene to locate the vehicle after dispatch received a call from a driver who reported that a man had flashed a gun at him in a road rage incident. A vehicle matching the description given by the victim was seen driving into the shopping center. An employee of one of the stores informed the responding officers that she noticed the vehicle because it zoomed through a shopping center parking lot crowded with children and families, which she thought was dangerous.
This employee then directed police to a neighboring restaurant where they located Stegall, the driver of the vehicle. After Stegall’s arrest officers found the loaded, unregistered short barreled rifle, along with seven other firearms in his vehicle.
Gaines’ sentencing will be scheduled by the Court at a later date. Stegall is set to be sentenced on May 19, 2016. Both defendants face a statutory maximum penalty of 10 years in the Bureau of Prisons and a fine of up to $250,000.
The Gaines case was investigated by the Little Rock Police Department and prosecuted by Assistant United States Attorneys Benecia B. Moore and Julie Peters. The Stegall case was investigated by the Benton Police Department and Bureau of Alcohol, Tobacco, Firearms & Explosives and prosecuted by Assistant United States Attorneys Edward Walker and Erin O’Leary.
Concord Man Sentenced on Firearm ChargeRead the Press Release
CONCORD, NEW HAMPSHIRE: Nicholas Ethier, 36, of Concord, New Hampshire, was sentenced in the United States District Court for the District of New Hampshire for possession of a firearm by a convicted felon in violation of federal law, announced United States Attorney Emily Gray Rice. The Court imposed a term of 37 months’ imprisonment, followed by three years of supervised release.
During the early morning hours of January 28, 2015, Ethier got into an argument with his neighbor and fired a weapon out the front door of his residence in Concord, New Hampshire. The Bureau of Alcohol Tobacco and Firearms classified the weapon Ethier fired as a .32 caliber machinegun. No one was harmed in the incident. The Concord Police Department obtained a search warrant for Ethier’s apartment and found ammunition in the residence. Ethier was prohibited from possessing a firearm or ammunition because he was previously convicted of reckless conduct, a felony punishable by imprisonment for a term exceeding one year.
“The extremely dangerous conduct of the defendant, the discharge of a machinegun in a downtown Concord neighborhood, underscores the importance of ensuring that prohibited persons do not possess firearms,” stated United States Attorney Emily Gray Rice. “Our office will continue to combat the threat posed when convicted felons possess firearms.”
This case was investigated by the Concord Police Department and the Bureau of Alcohol Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Georgiana L. Konesky.
Coeur d'Alene Tribal Man Charged with Aggravated Sexual AssaultRead the Press Release
COEUR D'ALENE - Jeremy J. Bohlman, 37, who lived on the Coeur d’Alene Indian Reservation, was arrested yesterday on charges of aggravated sexual assault, U.S. Attorney Wendy J. Olson announced. Bohlman was indicted by a federal grand jury on December 15, 2015.
The indictment alleges Bohlman, a tribal member, knowingly caused the victim to engage in a sex act by use of force against the victim. It is further alleged that Bohlman was previously convicted of a sex offense.
Aggravated sexual assault is punishable by up to life in prison, a $250,000 fine, and supervised release up to life.
The case is being investigated by Federal Bureau of Investigation (FBI) and Coeur d’Alene Tribal Police.
An Indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Chelsea Produce Distributor Sentenced for Filing False Insurance ClaimsRead the Press Release
BOSTON – A Chelsea produce distributor was sentenced in U.S. District Court today for defrauding his insurance companies by submitting bogus claims.
John S. “Yanni” Alphas, 56, of Weston was sentenced by U.S. District Judge Douglas P. Woodlock to 15 months in prison to be followed by three years of supervised release. He was ordered to pay $160,876 in restitution and a fine of $60,000. Alphas pleaded guilty to one count of wire fraud in August 2014.
Alphas is the president of The Alphas Company, a wholesale distributor of produce that operates out of the Chelsea Produce Market in Massachusetts. Between 2007 and 2011, Alphas submitted ten fraudulent insurance claims for produce shipments that he said had been lost en route, had been stolen, or had arrived spoiled, frozen, or in otherwise unusable condition. In most instances, however, Alphas had suffered no losses at all; his produce had arrived in usable condition. On the other occasions, Alphas inflated his actual losses, sometimes by tens of thousands of dollars.
In total, the Court found Alphas sought insurance payments that exceeded his actual losses by approximately $450,000. Of that amount, his insurers paid him approximately $178,000, although he had only suffered approximately $19,000 in legitimate losses on the relevant insurance claims.
When imposing sentence, the Court also took into account a separate false statement that Alphas made during the course of the sentencing proceedings. While proceedings were underway, Alphas submitted a license application to the United States Department of Agriculture in which he falsely certified that he had never been convicted of a felony in federal court. The Court found that this misrepresentation to a government agency merited an additional three months of incarceration beyond what the Court would have imposed for the underlying insurance fraud.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistance was provided by the Massachusetts Insurance Fraud Bureau. The case is being prosecuted by Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit.
Charlotte Woman Sentenced to 10 Years in Murder-For-Hire Plot Against Her Ex-HusbandRead the Press Release
CHARLOTTE, N.C. – A federal judge today handed down a 120-month prison term to a Charlotte woman convicted of a murder-for-hire plot against her ex-husband, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Fathia Davis, a/k/a Fathia-Anna Davis, 48, was also sentenced to two years of supervised release. U.S. District Judge Robert J. Conrad, Jr. presided over the sentencing. Judge Conrad also ordered Davis to undergo mental health treatment.
U.S. Attorney Rose is joined in making today’s announcement by C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Chief Kerr Putney of the Charlotte Mecklenburg Police Department.
“Fathia Davis was willing to pay someone to take the life of another human being, and even though she had plenty of opportunities to change her mind, she never did. Instead, she made sure the men she hired to carry out the murderous plot knew who the victim was and then tried to cover up her role in orchestrating this horrendous crime. Thanks to a concerned citizen and great law enforcement coordination Davis’s true, calculated and menacing behavior was discovered, a life was spared, and now Davis will spend the next 10 years behind bars for the crime she committed, said U.S. Attorney Rose.
“Today’s sentence is a result of our proactive efforts to reduce violent crime in our communities. In this case, law enforcement was able to prevent the tragic loss of human life. We will continue to work closely with CMPD to apprehend and prosecute those who choose to commit heinous crimes like this,” said ATF Special Agent in Charge Hyman.
According to filed court documents, evidence presented at Davis’s trial and statements made during the sentencing hearing:
On or about January 2015, a concerned citizen informed law enforcement that Davis had asked him repeatedly to find her someone she could hire to kill her ex-husband. On February 15, 2015, undercover officers posing as potential hitmen met Davis in a parking lot in Charlotte. During that meeting, Davis agreed to pay the undercover officers $4,000 to shoot her ex-husband in the head. Davis drove with the undercover officers to the victim’s residence and pointed out his apartment and vehicles. Davis also told the officers that the victim had visitation with their daughter that week, and indicated that she was willing to have the victim killed during that time. Davis further told the officers that she wanted the victim out of her and her daughter’s lives, and that she had been trying for the last two years.
Using a prepaid cell phone, Davis set up a meeting on February 22, 2015, with undercover officers and gave them $500 as a down-payment for the murder. Davis told the officers that she had asked a friend withdraw the money from the bank so “it wouldn’t look funny.” Davis also told the undercover officers that she would give them the rest of the money after they had killed her ex-husband. The undercover officers told Davis that they would complete the job the following week and that she had until then to change her mind, to which she responded that she knew it was final.
On February 24, 2015, Davis met with the undercover officers and paid them $3,500 in cash after they told her that her ex-husband had been murdered. Davis asked the undercover officers where the murdered had happened and expressed no emotion. At the same meeting, the undercover men asked Davis to hand them the prepaid cell phone she had used to communicate with them. Davis did not want to hand over the phone and told them that a friend of hers was going to get rid of it. Davis reluctantly gave the phone to the undercover officers when they told her that they would break the phone.
On June 16, 2015, a federal jury convicted Davis of one count of use of interstate commerce facilities in the commission of murder-for-hire.
In announcing today’s sentence, Judge Conrad said this was not a suggested crime and went on to say that this is not the first time that Davis had tried to kill a human being, noting that he believed the defendant tried to poison her ex-husband on a previous occasion. Judge Conrad also said that, “Ms. Davis was very serious about committing this crime,” and added that the crime was “Cold, calculated, intentional and the Court has to take that into account.”
Davis has been in in federal custody since June 2015. Upon designation of a federal facility she will be transferred to the custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
ATF and CMPD investigated the case. Assistant U.S. Attorneys Robert Gleason and Jennifer Dillon prosecuted the case.
Charlotte Man Charged for Attempting Smuggle and Illegally Export Munitions OverseasRead the Press Release
CHARLOTTE, N.C. – A Charlotte man is facing federal charges for illegally obtaining and attempting to smuggle and export munitions to Ghana, West Africa, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. The nine count indictment against Richmond Akoto Attah, 33, of Charlotte, was unsealed today in court, charging him with one count of violating the Arms Export Control Act (AECA), one count of illegal firearms dealing, two counts of smuggling goods from the United States and four counts of making false statements to a firearms dealer.
C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas; and Patti Fitzpatrick, Port Director of the U.S. Customs and Border Protection (CBP) Area in Charlotte join U.S. Attorney Rose in making today’s announcement.
“The indictment unsealed today alleges that Attah went to great lengths to carry out and conceal his gun trafficking scheme. He falsified information to obtain firearms illegally and then tried to evade our country’s export restrictions on munitions by attempting to smuggle guns to West Africa. Fortunately, our law enforcement partners detected and intercepted Attah’s dangerous plot,” said U.S. Attorney Rose. “The consequences of gun trafficking can be grave. Firearms illegally exported overseas can end up in the wrong hands, and potentially be used for criminal acts against innocent victims, including Americans. The vigorous prosecution of gun traffickers ensures the safety not only of our citizens but people abroad,” Rose added.
“ATF is committed to using any and all resources to apprehend firearm traffickers and keep firearms out of the hands of violent criminals both domestic and abroad. The successful conclusion of this investigation could not have occurred without the outstanding partnerships we have with our law enforcement partners,” said ATF Special Agent in Charge Hyman.
“The FBI’s technical expertise and global reach in this case proves our dedication to fighting weapons smuggling both in the United States and overseas. This investigation is yet another example of what can be accomplished when we join forces with our federal law enforcement partners and work toward a common goal,” said FBI Special Agent in Charge Strong.
“Firearms regulations exist to ensure weapons crossing international borders are properly accounted for to preserve public safety and to keep them out of the hands of dangerous criminals,” said Special Agent in Charge Anna of HSI in Atlanta. “This case shows the significant consequences awaiting individuals who attempt to illegally smuggle weapons and ammunition across U.S. borders.”
“This is another example of the broad scope of U.S. Customs and Border Protection operations here in North Carolina and beyond,” said Patti Fitzpatrick, U.S. Customs and Border Protection Area Port Director in Charlotte. “CBP officers remain committed to working with local, state and federal law enforcement agencies in an effort to keep all safe.”
According to allegations contained in the indictment, beginning in at least 2013 and continuing to the present, Attah purchased numerous firearms and ammunition he intended to smuggle and illegally export to Ghana. The indictment alleges that Attah obtained the firearms by misstating on the required federal forms that he was the actual buyer and transferee of the firearms. According to the indictment, Attah is not a federally licensed firearms dealer and does not possess a license to export firearms or ammunition to Ghana or any other country.
According to allegations in the indictment, from on or about September 2013 to December 2015, Attah purchased approximately 63 firearms and 3,500 rounds of ammunition from various stores, Internet vendors and at gun shows. On or about September 4, 2015, Attah travelled from Charlotte to Ghana, returning on October 10, 2015. According to the charges, during his return trip Attah hid $30,100 dollars in his luggage, falsely declaring on his customs paperwork that he was only bringing $350 back into the United States. The indictment also alleges that from on or about November 2015, to December 13, 2015, Attah purchased approximately 22 firearms and ammunition from dealers in North Carolina and online. Attah then hid 27 firearms, including semi-automatic pistols and revolvers, inside a washing machine and a dryer, and 3,500 rounds of ammunition inside a barrel. The indictment alleges that Attah placed the washer, dryer, and barrel inside a shipping container and attempted to have it shipped from Charlotte to Ghana. The indictment alleges that U.S. Customs officers recovered the firearms and ammunition before it was shipped outside the United States.
Attah had his initial appearance in federal court today. The penalty for violating the AECA is a maximum of 20 years in prison and a $1 million fine or twice the amount of the criminally derived proceeds, whichever is greater. The penalty for illegal firearms dealing is a maximum of five years in prison and a $250,000 fine. The penalty for smuggling goods from the U.S. is a maximum of 10 years in prison and a $250,000 fine per count, and the penalty for making false statements in connection with the acquisition of a firearm is a maximum of 10 years in prison and a $250,000 fine per count. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceeding.
ATF, FBI, HSI and CBP are handling the investigation. In making today’s announcement U.S. Attorney Rose also thanked the North Carolina Highway Patrol, the Charlotte Mecklenburg Police Department and the Chatham County Sheriff's Office in Georgia for their assistance in this case.
Assistant United States Attorneys Michael Savage and Kevin Zolot of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
CEO of Broker-Dealer Sentenced in Manhattan Federal Court for Obstructing Regulatory Examination by Producing False Invoices to SEC Exam TeamRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CHARLES J. MOORE, former Chief Executive Officer of broker-dealer Crucible Capital, Inc. (“Crucible”), was sentenced today to six months in prison for obstructing a regulatory examination conducted by the Securities and Exchange Commission (“SEC”). The sentence was imposed by U.S. District Judge Colleen McMahon. MOORE, 63, pled guilty on November 9, 2015, to having caused a Crucible employee to falsify invoices and then provide them to an SEC examination team in response to a document request.
According to the agreement pursuant to which MOORE entered his plea of guilty, the underlying criminal Complaint filed August 7, 2014, the Indictment filed on September 30, 2014, and statements made during court proceedings:
MOORE was at all relevant times the CEO of Crucible, an SEC-registered broker-dealer that maintained no customer securities trading accounts, but held itself out as a “boutique” investment bank helping small businesses to raise capital and financing. Crucible used its status as an SEC-registered broker-dealer to solicit business.
MOORE was also at all relevant times the CEO of an affiliated company, Angelic Holdings LLC (“Angelic”), which was not registered with the SEC and which conducted “due diligence” for Crucible-related business. Crucible and Angelic shared employees and office space. They also shared expenses, under an agreement that had Crucible paying Angelic a monthly fee and Angelic paying vendors of certain specified services on behalf of both Angelic and Crucible.
As an SEC-registered broker-dealer that maintained no customer accounts, Crucible was required to maintain net capital of at least $5,000 at all times. It was also required to file monthly “FOCUS” reports with the SEC reporting its net capital.
In the fall of 2013, the SEC opened a regulatory examination of Crucible to explore, among other things, the accuracy of the net capital figures that Crucible had supplied in its FOCUS reports from in or about February 2013 through in or about September 2013. As part of that examination, the SEC requested all 2013 invoices to Angelic for Crucible-related expenses.
MOORE, responding to this request, caused a Crucible employee to create falsified invoices to deliver to the SEC. Specifically, he directed the employee to take original invoices that had been sent to Crucible personnel, and create versions of those invoices that omitted references to large, unpaid debts appearing on the originals. MOORE then caused the employee to hand the falsified invoices to the SEC. The purpose of this obstruction was to hide the true extent of Crucible’s debts from the regulatory examination team, and thus make it appear, falsely, that Crucible’s net capital figures, as reported in its 2013 FOCUS reports, were accurate.
* * *
Mr. Bharara praised the investigative work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation and thanked the SEC, which filed civil charges in a separate action.
The charges were brought 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 is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. 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.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Sarah Eddy McCallum is in charge of the prosecution.
Buncombe Co. Man Sentenced for Possession of Firearm by A Convicted FelonRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Jill Westmoreland Rose announced that a Buncombe County man convicted of possession of a firearm by a convicted felon was sentenced today in Asheville by U.S. District Judge Martin Reidinger. Jeremy Scott Powell, 31, of Leicester, N.C. was ordered to serve 63 months in prison, followed by three years of supervised release upon completion of the prison term.
U.S. Attorney Rose is joined in making today’s announcement by C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Sheriff Van Duncan, of the Buncombe County Sheriff’s Office.
According to filed court documents and statements made in court, on September 4, 2014, law enforcement conducted a traffic stop of the car Powell was driving, after it was determined that the license plate of Powell’s car belonged to another vehicle. Following a search of the vehicle, court records show that law enforcement recovered a semi-automatic handgun, which was loaded with 13 rounds of ammunition. According to documents filed in the case, Powell is prohibited from possessing a firearm, stemming from his 2008 North Carolina conviction of two counts of drug trafficking and one count of possession of a firearm by a felon.
Powell has been in federal custody since September 2014. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by ATF and the Buncombe County Sheriff’s Office. The case was prosecuted by the U.S. Attorney’s Office in Asheville.
Baton Rouge man pleads guilty to his role in a $400,000 identity theft and tax fraud schemeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the conviction of CAMERON BUTLER, age 33, of Baton Rouge, Louisiana, who pled guilty on Tuesday before U.S. District Judge James J. Brady to three counts of receiving stolen government funds, in violation of Title 18, United States Code, Section 641.
According to the factual basis presented in connection with his pleas, $107,000 in fraudulent tax refunds were deposited into two of BUTLER’s bank accounts during the course of the underlying scheme. BUTLER obtained these tax refunds knowing that the refunds belonged to other taxpayers and that he was not entitled to them.
BUTLER’s conviction is the latest in a series of convictions related to the theft and use of over 400 social security numbers to file fraudulent tax returns which resulted in over $400,000 in tax refunds. BUTLER’s wife, MONA HILL, was previously convicted in connection with this tax fraud scheme in 2013. She was sentenced to serve sixty-five months in federal prison and to pay $491,268.18 in restitution to the Internal Revenue Service. TA’SHA THOMAS, age 26, of Donaldsonville, Louisiana, and SHONDA V. JOHNSON, age 42, of Baton Rouge, Louisiana, were also previously convicted for their roles in an extensive stolen identity refund fraud scheme in 2015. THOMAS and JOHNSON are awaiting sentencing.
U.S. Attorney Green stated: “These cases are another example of a collaborative effort with the IRS to aggressively identify and prosecute criminals who traffic in stolen identities and unlawfully obtain U.S. Treasury funds. We look forward to continuing our work with IRS and other investigative agencies in the fight to eradicate such conduct.”
Special Agent in Charge of Internal Revenue Service Criminal Investigation, Jerome R. McDuffie, stated: “We are pleased with Mr. Butler’s conviction. Our agency will continue to work with the United States Attorney's Office to aggressively protect innocent taxpayers and preserve the integrity of our tax system. Participation in refund fraud schemes does not pay and those who do so will be prosecuted and held accountable for their illegal activities.”
This ongoing investigation is being conducted by the Internal Revenue Service’s Criminal Investigation Division. This matter is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Baltimore Serial Robber Exiled to 13 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III, sentenced Kieron Matthew Williams, age 39, of Baltimore, today to 13 years in prison, followed by three years of supervised release, for five robberies of retail establishments and displaying what appeared to be a handgun in each robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Baltimore Police Commissioner Kevin Davis; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Marilyn Mosby.
According to Williams’ plea agreement, between August 13 and September 21, 2014, Williams committed five robberies of stores in Baltimore City and Baltimore County. In each robbery Williams entered the store and displayed what appeared to be a black semi-automatic handgun to the store employee and demanded money. Williams stole a more than $1,000 in the five robberies. Williams also admitted that he committed more than 10 other robberies in Baltimore City and County during that same time period.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Baltimore County Police Department, Baltimore County State’s Attorney’s Office and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Matthew C. Sullivan and James G. Warwick, who prosecuted the case.
Attorney General Lynch Attends Five Country Ministerial and Quintet of Attorneys GeneralRead the Press Release
Recognizing the continuing challenges to the security of our peoples and our countries, and that a collective approach is required to address these challenges, on February 16-17, 2016 United States Attorney General Loretta Lynch and United States Secretary of Homeland Security Jeh Johnson jointly hosted the Five Country Ministerial and the Quintet of Attorneys General meetings with their counterparts: Australian Attorney-General George Brandis; Australian Minister for Immigration and Border Protection Peter Dutton; Canadian Public Safety Minister Ralph Goodale; Minister of Justice and Attorney General of Canada Jody Wilson-Raybould; Canadian Minister of Immigration, Refugees and Citizenship John McCallum; New Zealand Attorney General Christopher Finlayson; United Kingdom Home Secretary Theresa May; and United Kingdom Attorney General Jeremy Wright.
On the first day, the Attorneys General and Ministers jointly discussed a range of topics including: information sharing for counterterrorism purposes while respecting privacy; countering violent extremism; cybercrime; encryption; and foreign investment in critical infrastructure. They agreed on the importance of expanding efforts to counter the threat of Daesh, al-Qaeda and their affiliates particularly by strengthening border and aviation security. They also agreed that violent extremism poses a critical threat for all five countries and decided to coordinate activity to counter violent extremism, including by engaging with communities and with social media and other high-tech industries. They further agreed to share best practices and evaluation of the impact of this work. They also agreed that while Government engagement is important, government itself cannot and should not be the only actor to counter violent extremism, and needs to partner with communities to reach isolated and vulnerable individuals and address the drivers of extremism in our societies. While recognizing the value of strong encryption and the need to protect civil liberties and privacy rights, Attorneys General and Ministers shared concerns about the challenges encryption presents to law enforcement agencies seeking to fight terrorism and serious and organized crime.
On the second day, the Attorneys General of the Quintet met separately to discuss cybercrime, criminal justice reform, and the need to uphold the rule of law and individual liberties in the face of national security threats. They shared their countries’ experiences concerning reforms to national security laws and reaffirmed the critical importance of meeting security imperatives while protecting civil liberties. The Attorneys General agreed to continue to discuss the application of the international law requirements for self-defense, including imminence.
On the same day, immigration and national security Ministers met separately and recognized the benefits of legitimate travelers and migrants and discussed ways to address challenges posed by mass migration and refugee flows, information sharing to facilitate travel and to enhance each country’s ability to identify and prevent the travel of criminals and terrorists across borders, and ways to enhance visa processes for certain travelers. The Ministers also recognized the value of trusted traveler programs.
The Attorneys General and Ministers agreed to continue discussions on enhancing cooperation on screening of refugees and asylum seekers. They agreed to explore opportunities for greater sharing of security and law enforcement information amongst the five countries.
The Attorneys General and Ministers reaffirmed the importance of working collaboratively on law enforcement and national security issues. They agreed to continue to coordinate efforts to more effectively address issues of mutual concern, and to ensure the security and prosperity of our citizens consistent with respect for individual rights and freedoms.
Arizona Man Sentenced for the Robbery of Two North Dakota BanksRead the Press Release
BISMARCK - U.S. Attorney Christopher C. Myers announced that on February 17, 2016, Gary Wayne Thomas, 59, of Arizona, was sentenced by U.S. District Judge Daniel L. Hovland on two counts of Bank Robbery, to which Thomas pleaded guilty to on November 17, 2015.
Judge Hovland sentenced Thomas to five years and eleven months in prison, to be followed by three years of supervised release, on each count, to be served concurrently. Thomas was further ordered to pay restitution to the banks for the money stolen and a $200 special assessment to the Crime Victims’ Fund.
On August 13, 2015, at approximately 10:12 a.m., Thomas entered BNC National Bank, 210 S. Main Street in Stanley, North Dakota, demanded money and then fled the bank with the money. Later that same day, at approximately 3:08 p.m., Thomas entered Dacotah Bank, 1121 S. Broadway in Minot, North Dakota, and once again demanded money and fled the bank with the money. No weapon was used or threatened in either event and Thomas was not immediately identified or apprehended.
Police identified Thomas as a suspect based upon a description of the vehicle seen leaving the Dacotah Bank following the robbery as well as both banks’ surveillance videos which showed the clothing that the bank robber was wearing. Video was obtained from a convenience store/gas station in the area which showed the suspect vehicle and the man driving the vehicle entering the convenience store. Based upon the individual’s clothing, the man was believed to be the man depicted in the bank videos. Further investigation, including into the registered owner of the suspect vehicle, led to the identification of Thomas as the bank robber. Thomas was located and arrested in early September 2015; none of the stolen money was recovered.
The case was investigated by the Minot Police Department, the Mountrail County Sheriff’s Department, and the Federal Bureau of Investigation.
Assistant U.S. Attorney David Hagler prosecuted the case.
Abingdon Man Sentenced on Tax ChargesRead the Press Release
ABINGDON, VIRGINIA – The former owner of Wat-Co, a Washington County metal fabricating business, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon on tax charges.
Thomas Leroy Watson, 58, of Abingdon, Va., previously pled guilty to one count of failing to collect and pay taxes. United States District Judge James P. Jones sentenced Watson to federal prison for a term of 18 months.
“Paying taxes is part of our civic duty as American citizens,” United States Attorney John P. Fishwick Jr. said today. “We must continue to make sure all private citizens and business owners pay the proper amount of tax.”
Watson failed to pay payroll taxes for his employees between 2010 and the first quarter of 2012. Accordingly, he was ordered to pay restitution in the amount of $110,822.54.
The investigation of the case was conducted by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
A Leader of Harvey Hustlers Gang Sentenced to Life in Federal PrisonRead the Press Release
U.S. Attorney Kenneth A. Polite announced that HARRY SMOOT, age 29, of Avondale, was sentenced today to life in federal prison by United States District Judge Lance M. Africk.
SMOOT pled guilty to being the leader and source of supply for a twelve member offshoot of the larger Harvey Hustlers group that was involved in the distribution of heroin and crack cocaine, as well as a conspiracy to possess firearms in furtherance of drug trafficking. As part of his plea, SMOOT admitted to his role in three murders, including a vicious double murder of a couple whose children, who were unharmed, were in the backseat of their vehicle when the shooting occurred and a seventy-four year old woman whose grandson was the target of the attack. During the sentencing hearing today, family members of the victims had the opportunity to address SMOOT about the pain that the loss of the victims had caused to them and their families. After hearing the testimony and overruling SMOOT’s arguments that the murders were not premeditated, Judge Africk sentenced SMOOT to serve the rest of his life in federal prison, emphasizing that in the federal system there is no parole. SMOOT was also ordered to pay restitution to the victims’ families.
Several members of SMOOT’s drug trafficking organization, including three other individuals who have collected admitted responsibility for four murders, are to be sentenced in the coming weeks.
“Today’s sentencing ensures that a violent murderer and drug trafficker will remain off of our streets for the rest of his life,” stated U.S. Attorney Polite.
This case is a product of an ongoing investigation into the violent acts in furtherance of the drug trafficking by the Harvey Hustler gang and its various offshoots on the West Bank. It represents the continued coordinated effort of the federal and state law enforcement authorities within the Multi-Agency Gang (“MAG”), including the United States Attorney’s Office, the Jefferson Parish District Attorney’s Office, Special Agents of the Federal Bureau of Investigation, and officers of the Jefferson Parish Sheriff’s Office.
Assistant United States Attorneys Greg Kennedy, David Haller, and Myles Ranier and Special Assistant United States Attorney Collin Sims, who is a former Assistant United States Attorney and the Criminal Chief at the St. Tammany Parish District Attorney’s Office, were in charge of the prosecution.
Wednesday 17 February 2016
Warren man faces firearm chargeRead the Press Release
A federal grand jury returned a one-count indictment charging Airiz A. Coleman, 39, of Warren, with being a felon in possession of a firearm and ammunition, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
The indictment alleges that on or about November 17, 2015, Coleman possessed a Criterion Die & Metal, model CDM, .22-caliber revolver and ammunition, despite previous convictions for felonious assault and improper discharge of a firearms at or into a habitation in the Trumbull County Court of Common Pleas in 2008.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Warren Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Violent Drug Trafficker’s 1990 Life Sentence UpheldRead the Press Release
Today U.S. District Court Chief Judge Patti B. Saris reaffirmed the 1990 life sentence of Darryl Whiting who was a notorious and violent drug trafficker in Boston.
Whiting was originally sentenced to life in prison 1990 after being convicted of running a 100-person drug ring that netted him millions and terrorized the Orchard Park public housing development in Boston. An undercover agent and several of Whiting’s co-conspirators testified against him at trial, explaining that he preyed upon drug-addicted mothers, and viciously beat those who defied his orders. Whiting himself also testified at trial, telling the jury that he was a legitimate business man.
Recent changes to the federal sentencing guidelines made Whiting eligible for a greatly reduced sentence – unless the court found that he would pose a significant threat to public if released.
Significantly, Whiting, recently authored and published a lengthy and graphic novel in which the main character is released from prison on a technicality, launches a scaled-up version of his former criminal empire, finds and tortures to death the cooperating witnesses who testified at his trial, and advises criminal associates who plan to kill “rats” and display their bodies with cheese or a dime. Whiting claimed that his novel, which he published in 2013, was “purely fictional.”
The government challenged Whiting’s claim, pointing out to the court that the main character in Whiting’s book is named Darryl “God” Whiting, all the people in the book have the same names as all the people in the trial, and all the key historical events recounted in the book actually took place. The government argued that Whiting’s book was compelling evidence of his state of mind and his determination to seek violent revenge and resume a life of crime if released.
Members of the community, including residents of the Orchard Park community and state leaders submitted letters opposing any reduction for Whiting, whom they explained had severely diminished the quality of life in Boston and Roxbury, and whom they said has continued to instill fear in the community while incarcerated.
The Court found that Whiting poses such a serious threat to the community and those who cooperated against him that no relief under Amendment 782 is warranted – thus, the original life sentence is undisturbed.
Utah Man Sentenced to Prison for Interfering with Phoenix to New York Flight CrewRead the Press Release
PITTSBURGH - A resident of Mapleton, Utah has been sentenced in federal court to twelve months and one day imprisonment for interference with flight crew members and attendants, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Steven Douglas Pectol, 40, of Mapleton, Utah.
According to information presented to the court, on October 11, 2015, Pectol interfered with the flight crew of US Airways Flight 632 by assaulting and intimidating the flight attendants and crew by disregarding instructions to remain in his seat, making threatening statements, attempting to physically force his way to the front galley of the airplane while pushing one of the attendants, and needing to be physically restrained by attendants and passengers as the plane landed while the defendant attempted to kick and head-butt attendants as he was being restrained. As a result of the defendant’s actions, US Airways Flight 632, flying from Phoenix, AZ to New York, NY, had to be diverted to Pittsburgh International Airport.
Prior to imposing sentence, Judge Hornak stated that the defendant’s recent criminal history had indicated a gradual elevation in degree and that his sentence needed to reflect the seriousness of the offense, the need to protect the public from further crimes of the defendant, and the need to promote respect for the law.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Federal Air Marshals for the investigation leading to the prosecution of Pectol.
United States and Vermont Doctor Resolve Matter Involving Non-FDA Approved Drugs and False ClaimsRead the Press Release
The Office of the United States Attorney for the District of Vermont announced today the resolution of its investigation of Dr. Gamal H. Eltabbakh for submission of false claims for payment to Medicaid and Medicare. Under the terms of the agreement between the parties, Dr. Eltabbakh and his company, Lake Champlain Gynecologic Oncology P.C. (“LCGO”), paid $500,000.00 to the United States. The money will be divided between the federal Medicare ($391,957.81), federal Medicaid ($63,031.81), and Vermont Medicaid ($45,010.38) programs to which Dr. Eltabbakh submitted the alleged false billings.
The settlement resolves allegations that from approximately January 2010 through February 29, 2012, LCGO purchased a portion of the drugs used by Dr. Eltabbakh in chemotherapy treatments, including Aloxi, Neulastum, Bevacizumb, Taxotere, Gemzar, Hycamtin, and Alimta, from a Canadian drug distributor and other sources. The government further alleged that the drugs had not received final marketing approval from the FDA and were not covered by Medicare and Medicaid.
Pursuant to the terms of the settlement agreement, the agreement and payment are neither an admission of liability by Dr. Eltabbakh or LCGO, nor a concession by the United States that its claims were not well founded.
This matter was investigated by the United States Attorney’s Office, the U.S. Food and Drug Administration Office of Criminal Investigations, and the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG). “We will continue to ensure that Medicare and Medicaid only pay for drugs that meet the coverage requirements of the programs,” said Special Agent in Charge Phillip M. Coyne of HHS OIG. “Working with our Federal partners, we will continue to ensure beneficiaries receive safe and effective treatments.”
Dr. Eltabbakh was represented by Ian P. Carleton, Esq., of Sheehey, Furlong and Behm, P.C. of Burlington, Vermont. The United States was represented by Assistant U.S. Attorneys James Gelber and Eugenia Cowles.
U.S. Attorney Oberly Announces Large Heroin, Gun and Money SeizureRead the Press Release
WILMINGTON, Del. – U.S. Attorney Charles M. Oberly, III announced yesterday that on Thursday, February 11, 2016, following a 2 ½ month investigation, the Wilmington Resident Office of the Drug Enforcement Administration (“DEA”) – with assistance from the Newark Police Department SWAT, the Wilmington Police Department SWAT, the Delaware State Police, and the FBI Safe Streets Task Force – executed search warrants at two addresses in an industrial park on Albe Drive in Newark, Delaware. Between those two addresses – as well as a third address in Cecil County, Maryland – agents and officers found approximately 48,800 bags of heroin, along with two loaded 9mm handguns, and approximately $40,000 in cash.
As a result of the execution of these warrants, five men were arrested:
Abdul Haye, 28, of Newark, Del.
Amyra Haye, 29, of Bear, Del.
Daniel Haye, 36, of Bear, Del.
Julius Williams, 28, of Newark, Del.
Cezar Mills, 30, of Bear, Del.
Each of these defendants stands charged with conspiring together to possess with intent to distribute 100 grams or more of heroin, and each of these defendants are – at present – detained in federal custody pending trial.
A bag of heroin is sold on the street in Delaware for approximately $10, making the total retail value of this seizure approximately $488,800. As such, this seizure represents the largest seizure of pre-packaged heroin in Delaware history.
In addition, some of the bags of heroin seized in this case tested positive for fentanyl, which is a potent synthetic opoid that can be mixed with heroin, to dangerous effect. The particular stamp, or brand, of heroin that this group was selling has been linked to two overdoses in the area.
The case is the product of an investigation conducted as part of the larger New Castle County HIDTA, which is a collaborative effort established in January 2015 among federal, state, and local law enforcement agencies. The New Castle County HIDTA includes members from the following agencies: DEA, Delaware State Police, New Castle County Police Department, Newark Police Department, Department of Homeland Security – Homeland Security Investigations, Delaware Department of Corrections – Probation and Parole, and the Delaware Attorney General’s Office.
Two defendants sentenced for Los Angeles-to-Mercer County hydromorphone schemeRead the Press Release
BLUEFIELD, W.Va. – Two men were sentenced today for federal drug crimes for their roles in trafficking pain pills from California to West Virginia, announced Acting United States Attorney Carol Casto. Lawrence Ray Bennett, 31, of Los Angeles, was sentenced to seven years and three months in federal prison. Peter B. McKinley, Jr., 33, of Princeton, was sentenced to three years and a month in federal prison. Both Bennett and McKinley previously pleaded guilty in late 2015 to conspiracy to distribute hydromorphone.
Bennett admitted that from July 2014 to September 2015, he mailed packages of pain pills from Los Angeles to McKinley in Mercer County. McKinley admitted that he sold the pills in the Bluefield and Princeton areas, and then mailed packages containing a portion of the drug proceeds back to Bennett in California. During the investigation of the case, agents seized over 2,500 hydromorphone pills and approximately $19,000 in cash.
The Southern Regional Drug and Violent Crime Task Force and the United States Postal Service investigated the case. Senior United States District Judge David A. Faber imposed the sentences.
These cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two defendants prosecuted for Federal heroin crimesRead the Press Release
CHARLESTON, W.Va. – Two defendants appeared today in federal court in Charleston on heroin charges, announced Acting United States Attorney Carol Casto.
Antoine Maurice Brown, 32, of Charleston, was sentenced to 10 months in federal prison for distribution of heroin. Brown previously pleaded guilty in November 2015 to the federal drug crime. Brown admitted that on June 26, 2013, he sold heroin to a confidential informant working with law enforcement. The drug deal took place in the 7-Eleven parking lot on Washington Street, East, in Charleston.
Michael Shepard, 23, of Beckley, pleaded guilty to distributing heroin. Shepard admitted that on January 7, 2015, he sold heroin to a confidential informant cooperating with law enforcement. The drug deal took place on Hartley Avenue in Beckley. Shepard faces up to 20 years in federal prison and a $1 million fine when he is sentenced on June 8, 2016.
The investigation of Brown was conducted by the Metropolitan Drug Enforcement Network Team. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
The Southern Regional Drug and Violent Crime Task Force conducted the investigation of Shepard. The plea hearing was held before United States District Judge Irene C. Berger.
These cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two Texas Men Sentenced for Federal Hate Crime Against Gay African-American ManRead the Press Release
CORPUS CHRISTI, Texas - Ramiro Serrata Jr., 23, and Jimmy Garza, 33, were each sentenced to 15 years in federal prison following their convictions of hate crime offenses for their roles in a Mar. 8, 2012, assault of a gay African-American man in Corpus Christi, announced U.S. Attorney Kenneth Magidson and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.
Both men pleaded guilty in September 2015, to one count of conspiracy to commit hate crimes and one count of a hate crime violation of the Shepard-Byrd Hate Crime Act for causing bodily injury because of the victim’s sexual orientation. The sentences were imposed today by Senior U.S. District Judge Hayden Head. In handing down the sentence, Judge Head commented that the defendants had abandoned their humanity to the viciousness of animals, and also added that not only must the defendants be punished for their behavior, but that it must send a message that this type of behavior won’t be tolerated in a civilized society. Both men were also ordered to pay $10,800 in restitution, serve three years of supervised release and register as sex offenders.
During their respective plea hearings, both men admitted they conspired to assault a gay African-American man because of his race and sexual orientation. During the assault, the defendants punched and kicked the man and assaulted him with various weapons, including a frying pan, a mug, a sock filled with batteries, a broom and a belt. The defendants also poured bleach onto the victim’s face and into his eyes, and Garza struck the victim in the head with a handgun.
Serrata and Garza further admitted that when the victim began to bleed during the assault, that they forced him to remove all of his clothing and clean up the blood throughout the apartment. After the victim was naked, Garza pointed a gun at him while Serrata sodomized the victim with a broom handle. Serrata and Garza admitted that, throughout the assault, they called the victim “gay” and other racial and homophobic slurs. The defendants also admitted that they repeatedly whipped the victim with a belt while calling him a “slave” and making other references to slavery.
Both men acknowledged that throughout the assault, they also prevented the man from leaving the apartment by physical force and threats of force. The victim eventually escaped the apartment by jumping out of a window and running away until he was discovered by the police.
“Today’s sentencing makes clear that assaults based on bias and hate will not be tolerated in this nation, and the Department of Justice will aggressively seek justice for any and all victims of such heinous violence,” said Gupta. “These crimes violate both our civil rights laws and most basic national values. The Department of Justice will aggressively seek justice for any and all victims of such heinous violence.”
“The protection of all individuals from acts of violence based on their rights guaranteed By the Constitution and laws of the United States will always be a priority in this judicial district,” said Magidson. “This case represents that commitment.”
Serrata and Garza will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. A third defendant, Carlos Garcia Jr., pleaded guilty on Jan. 5, 2016, to one count of making false statements to a federal law enforcement officer. Garcia is scheduled to be sentenced March 22, 2016, at which time he faces a maximum sentence of five years in prison.
This case was investigated by the FBI’s Corpus Christi Resident Agency with assistance from the Corpus Christi Police Department. It is being prosecuted by Assistant U.S. Attorney Ruben Perez and Trial Attorneys Jared Fishman and Nicholas Durham of the Civil Rights Division’s Criminal Section.