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30 March 2016
Easton Man Charged with Possessing Destructive DevicesRead the Press Release
PHILADELPHIA – Donald Frey, 31, of Easton, Pennsylvania, was charged yesterday by Indictment with one count of possession of destructive devices, announced United States Attorney Zane David Memeger and Northampton County District Attorney John M. Morganelli. The defendant is alleged to have knowingly possessed two destructive devices, specifically two pipe bombs, on January 10, 2014, in Lower Saucon Township, in the Eastern District of Pennsylvania.
If convicted, defendant Frey faces a maximum possible sentence of 10 years in prison, three years of supervised release, a possible fine, and a $100 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives,, the Northampton County District Attorney’s Office, and the Lower Saucon Township Police Department. It is being prosecuted by Special Assistant United States Attorney Kelly Lewis Fallenstein.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Eastern District of Pennsylvania Forms Regional Elder Justice Task ForceRead the Press Release
PHILADELPHIA – Today, the Department of Justice announced the launch of 10 regional Elder Justice Task Forces, including one in the Eastern District of Pennsylvania. These teams will bring together federal, state and local prosecutors, law enforcement, and agencies that provide services to the elderly, to coordinate and enhance efforts to pursue nursing homes that provide grossly substandard care to their residents.
The Elder Justice Task Forces will include representatives from the U.S. Attorneys’ Offices, state Medicaid Fraud Control Units, state and local prosecutors’ offices, the Department of Health and Human Services, state Adult Protective Services agencies, Long-Term Care Ombudsman programs and law enforcement.
“When our seniors enter a nursing home or long-term care facility there is a valid expectation that they will receive reasonable, appropriate and adequate care,” said United States Attorney Zane David Memeger. “Unfortunately, my office has handled far too many cases in recent years where elderly citizens and their families were victimized by care facilities that put profits ahead of serving those expectations. The Elder Care Task Force will allow us to more effectively hold those who are providing substandard care accountable for their reprehensible conduct.”
“Millions of seniors count on nursing homes to provide them with quality care and to treat them with dignity and respect when they are most vulnerable,” said Acting Associate Attorney General Stuart F. Delery. “Yet, all too often we have found nursing home owners or operators who put their own economic gain before the needs of their residents. These task forces will help ensure that we are working closely with all relevant parties to protect the elderly.”
In addition to the Eastern District of Pennsylvania, Elder Justice Task Forces are being launched in: District of Maryland, Northern District of California, Northern District of Georgia, District of Kansas, Western District of Kentucky, Northern District of Iowa, Southern District of Ohio, Middle District of Tennessee and the Western District of Washington.
“Too often, our elderly citizens are exploited, many times without their knowledge,” said Special Agent-in-Charge Nick DiGiulio, of Health and Human Services Office of Inspector General. “The formation of this task force brings additional resources to uncover abuses, bring justice to more vulnerable victims, and raise awareness about the repercussions that exist for providing substandard care to the elderly.”
“Pennsylvania’s Medicaid fraud Control Section fully supports this federal undertaking to protect and serve the most vulnerable of citizens,” said Andrew Demarest, Pennsylvania Chief Deputy AG, Medicaid Fraud Control Section.
The Elder Justice Task Forces reflect the Department’s larger strategy and commitment to protecting our nation’s seniors, spearheaded by the Department’s Elder Justice Initiative. The Elder Justice Initiative coordinates and supports the Department’s law enforcement efforts and policy activities on elder justice issues. It plays an integral role in the Department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Elder Justice Initiative will be providing litigation support and training to the Elder Justice Task Forces. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.
East Haven Man Sentenced to More Than 5 Years in Federal Prison for Drug and Gun OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MATTHEW VOLOSHIN, 30, of East Haven was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 66 months of imprisonment, followed by three years of supervised release, for trafficking marijuana and unlawfully possessing firearms.
This matter stems from a DEA Task Force investigation that included the use of court-authorized wiretaps, controlled purchases of marijuana and physical surveillance. On June 4, 2013, VOLOSHIN and Jesse Wrubel were arrested on state charges. Search warrants executed in association with their arrests revealed two loaded handguns and approximately $50,000 that were found at VOLOSHIN’s residence, and three handguns and approximately 40 pounds of marijuana that were found at an East Haven garage rented by VOLOSHIN. Three of the five firearms were stolen. Law enforcement also seized approximately 20 pounds of marijuana, approximately $15,000 and a loaded nine millimeter rifle from Wrubel.
On January 30, 2014, a grand jury returned an indictment charging VOLOSHIN and Wrubel with marijuana and firearm offenses. VOLOSHIN has been detained since his arrest on February 7, 2014. On June 30, 2015, he pleaded guilty to one count of conspiracy to distribute more than 20 kilograms of marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime.
Wrubel, of West Haven, also has been detained since his arrest on February 7, 2014. On November 24, 2015, he pleaded guilty to one count of conspiracy to distribute marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime. He is scheduled to be sentenced tomorrow at 1:00 p.m.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force, which includes personnel from the New Haven, Hamden, Branford, Meriden, West Haven, North Haven, East Haven, Derby and Ansonia Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Patrick Caruso and Amy Brown.
Drug and Gun Charges Filed Against Bethlehem ManRead the Press Release
PHILADELPHIA – Steven Kitchell, a/k/a “Lotti,” 37, of Bethlehem, Pennsylvania, was charged by Information, filed yesterday, with one count of possession with intent to distribute controlled substances, and one count of possession of a firearm in furtherance of a drug trafficking crime, announced United States Attorney Zane David Memeger and Northampton County District Attorney John M. Morganelli.
According to the information, Kitchell knowingly possessed a .40 caliber Sig Sauer semiautomatic pistol and a variety of controlled substances with intent to distribute them on April 20, 2015, in the City of Bethlehem, in the Eastern District of Pennsylvania.
If convicted of all charges, Kitchell faces a mandatory minimum sentence of five years in prison with a statutory maximum sentence of life in prison, up to a lifetime of supervised release, a possible fine, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation, Allentown Division, the Northampton County District Attorney’s Office, and the City of Bethlehem Police Department, and is being prosecuted by Special Assistant United States Attorney Kelly Lewis Fallenstein and Assistant United States Attorney Kishan Nair.
An information is an accusation. A defendant is presumed innocent unless and until proven guilty.
District Man Pleads Guilty to Charges in New Year's Crash in Downtown WashingtonRead the Press Release
WASHINGTON – Malik Lloyd, 25, of Washington, D.C., pled guilty today to charges of felony assault, destruction of property, and driving under the influence of alcohol or drugs stemming from a car crash early Jan. 1, 2016 in downtown Washington that caused significant injuries to three people, U.S. Attorney Channing D. Phillips announced.
Lloyd pled guilty in the Superior Court of the District of Columbia to three counts of assault with significant bodily injury, one count of destruction of property, and one count of driving under the influence of alcohol or a drug.
In a separate case, Lloyd pled guilty to one count of unlawful possession of a firearm and one count of possession with intent to distribute cocaine. The Honorable Zoe Bush scheduled sentencing in the cases for May 25, 2016.
According to the government’s evidence, on Jan. 1, 2016, at about 1:30 a.m., Lloyd was driving a Chrysler 200 northbound on 17th Street NW. He struck a Honda CRV that was also driving on 17th Street. After the collision, Lloyd drove away, making a right turn onto L Street NW and driving up onto the sidewalk in front of Barcode, a bar located in the 1600 block of L Street NW. The car that he was driving struck a tree box, tree, and several pedestrians on the sidewalk before finally striking a light pole on the north side of the sidewalk.
At least 13 people were assaulted as the result of the collision; some were injured directly by the vehicle and others indirectly by flying debris. At least three people incurred significant bodily injury that required immediate hospitalization or medical treatment. After the crash, while being treated by emergency medical personnel, Lloyd stated to the Metropolitan Police Department (MPD) that he had two glasses of champagne.
The MPD officer smelled an odor of an alcoholic beverage coming from Lloyd’s mouth and observed that Lloyd’s eyes were bloodshot. At Howard University Hospital, Lloyd admitted to drinking in the club and smoking marijuana prior to going there. At the time of testing, his alcohol concentration level was 0.20 grams of alcohol per 100 milliliters of blood, which is beyond the legal limit in the District of Columbia. There was also the presence of marijuana in his blood. Lloyd has been in custody since his arrest after the crash.
The other case stemmed from a search carried out by law enforcement on Oct. 30, 2014, of Lloyd’s residence in the 6000 block of Clay Street NE. According to the government’s evidence, MPD members found significant quantities of drugs inside the residence, including bottles of liquid PCP and multiple stashes of crack cocaine. MPD members also found drug paraphernalia, suggesting the packaging and distribution of narcotics, including multiple digital scales, cutting agents, and small “zip” bags used for street-level distribution of narcotics. MPD members also found boxes of ammunition and three firearms, including two semi-automatic handguns that were found in Lloyd’s bedroom.
In announcing the plea, U.S. Attorney Phillips commended the work of those who investigated each of the cases for the Metropolitan Police Department. He also expressed appreciation for the assistance provided by the DEA and the District of Columbia Fire and Emergency Medical Services Department. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tiffany Fogle and Victim/Witness Advocate Diana Lim. Finally, he commended Assistant U.S. Attorneys Katherine Earnest, Michael Romano, Thomas Saunders, and Anwar Graves who are prosecuting the cases.
Detroit man pleads guilty to role in multi-state heroin trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Craig S. Coffee, 48, of Detroit, Michigan, pled guilty to heroin trafficking today in federal court, admitting his role in a Detroit to Morgantown heroin trafficking scheme, United States Attorney William J. Ihlenfeld, II, announced.
Coffee, also known as “Mack,” was among fourteen individuals changed with heroin trafficking in three separate federal indictments returned in February 2016. The indictments disrupted a drug trafficking network in which a group of Detroit residents traveled to Morgantown and conspired to transport heroin across state lines for redistribution and sale throughout North Central West Virginia.Specifically, Coffee sold heroin in May 2015 in Monongalia County, West Virginia. He pled guilty today to “Distribution of Heroin – Aiding and Abetting.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.U.S. Magistrate Judge Michael John Aloi presided.
Deputy Attorney General Sally Q. Yates Statement on the President’s Recent Clemency DecisionsRead the Press Release
Deputy Attorney General Sally Q. Yates released the following statement following President Obama’s clemency announcement today:
“Today’s announcement by the President to commute the prison sentences of another 61 individuals demonstrates his commitment to ensuring a fair and just criminal justice system. The clemency initiative that the President announced in 2014 is an important part of the Department’s overall criminal justice reform efforts. Through cooperative bipartisan efforts with Congress, the U.S. Sentencing Commission and reform advocacy groups, we hope to soon realize systemic change in the length of prison sentences for these low-level drug offenders and to provide better tools for a safe and successful reentry into the community. The Department fervently shares the President’s commitment to equal and fair justice under law and we will continue to work tirelessly to achieve this goal.”
Department of Justice Launches 10 Regional Elder Justice Task ForcesRead the Press Release
Today, the Department of Justice announced the launch of 10 regional Elder Justice Task Forces. These teams will bring together federal, state and local prosecutors, law enforcement, and agencies that provide services to the elderly, to coordinate and enhance efforts to pursue nursing homes that provide grossly substandard care to their residents.
“Millions of seniors count on nursing homes to provide them with quality care and to treat them with dignity and respect when they are most vulnerable,” said Acting Associate Attorney General Stuart F. Delery. “Yet, all too often we have found nursing home owners or operators who put their own economic gain before the needs of their residents. These task forces will help ensure that we are working closely with all relevant parties to protect the elderly.”
The Elder Justice Task Forces will include representatives from the U.S. Attorneys’ Offices, state Medicaid Fraud Control Units, state and local prosecutors’ offices, the Department of Health and Human Services (HHS), state Adult Protective Services agencies, Long-Term Care Ombudsman programs and law enforcement.
“The Department of Justice has a long history of holding nursing homes and long-term care providers accountable when they fail to provide their Medicare and Medicaid residents with even the most basic nursing services to which they were entitled,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “By bringing everyone to the table, we will be able to more effectively and quickly pursue nursing homes that are jeopardizing the health and well-being of their residents.”
The 10 Elder Justice Task Forces will be launched in the following Districts: Northern District of California, Northern District of Georgia, District of Kansas, Western District of Kentucky, Northern District of Iowa, District of Maryland, Southern District of Ohio, Eastern District of Pennsylvania, Middle District of Tennessee and the Western District of Washington.
“We believe that by actively participating in the Elder Justice Task Forces announced today through joint investigations, sharing information and regular meetings; we will strengthen our efforts nationally to protect the most vulnerable of our population who reside in our nursing homes and other care facilities,” said Keesha Mitchell, President of the National Association of Medicaid Fraud Control Units and the Director of the Ohio Medicaid Fraud Control Unit.
“The HHS Office of Inspector General (OIG) continues to pursue nursing home operators who provide potentially harmful care to residents who are often unable to protect themselves,” said Chief Counsel to the Inspector General Gregory Demske of HHS. “Creating these task forces sends a message to those in charge of caring for these beneficiaries that grossly substandard care will not be tolerated.”
“The Administration for Community Living was created to help ensure that older adults and people with disabilities are able to live the lives they want, with the people they choose, fully participating in their communities,” said Becky Kurtz, Director of the Office of Long-Term Care Ombudsman Programs at the Administration for Community Living. “Our mission includes supporting their basic right to live with dignity, free from abuse. We appreciate the Department of Justice’s leadership on this important initiative and applaud its long-standing commitment to elder justice efforts.”
“Our most vulnerable citizens deserve the highest quality care and attention,” said Executive Director Kathleen Quinn of the National Adult Protective Services Association. “This initiative will help insure that long-term care facilities provide it. The Department of Justice is to be commended for this, and indeed all its efforts, to protect the millions of elder abuse victims in this country.”
The Elder Justice Task Forces reflect the department’s larger strategy and commitment to protecting our nation’s seniors, spearheaded by the department’s Elder Justice Initiative. The Elder Justice Initiative coordinates and supports the Department’s law enforcement efforts and policy activities on elder justice issues. It plays an integral role in the department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Elder Justice Initiative will be providing litigation support and training to the Elder Justice Task Forces. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.
Department of Justice Launches 10 Regional Elder Justice Task ForcesRead the Press Release
WASHINGTON – Today, the Department of Justice announced the launch of 10 regional Elder Justice Task Forces. These teams will bring together federal, state and local prosecutors, law enforcement, and agencies that provide services to the elderly, to coordinate and enhance efforts to pursue nursing homes that provide grossly substandard care to their residents.
“Millions of seniors count on nursing homes to provide them with quality care and to treat them with dignity and respect when they are most vulnerable,” said Acting Associate Attorney General Stuart F. Delery. “Yet, all too often we have found nursing home owners or operators who put their own economic gain before the needs of their residents. These task forces will help ensure that we are working closely with all relevant parties to protect the elderly.”
The Elder Justice Task Forces will include representatives from the U.S. Attorneys’ Offices, state Medicaid Fraud Control Units, state and local prosecutors’ offices, the Department of Health and Human Services (HHS), state Adult Protective Services agencies, Long-Term Care Ombudsman programs and law enforcement.
“The Department of Justice has a long history of holding nursing homes and long-term care providers accountable when they fail to provide their Medicare and Medicaid residents with even the most basic nursing services to which they were entitled,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “By bringing everyone to the table, we will be able to more effectively and quickly pursue nursing homes that are jeopardizing the health and well-being of their residents.”
“The model developed in Western Washington relies on close collaboration between federal, state and local law enforcement partners to protect elderly Washingtonians,” said U.S. Attorney Annette L. Hayes. “I’m proud that this district and my law enforcement colleagues are leaders in these investigations that too often demonstrate how physical abuse and financial fraud go hand in hand.”
The 10 Elder Justice Task Forces will be launched in the following Districts: Northern District of California, Northern District of Georgia, District of Kansas, Western District of Kentucky, Northern District of Iowa, District of Maryland, Southern District of Ohio, Eastern District of Pennsylvania, Middle District of Tennessee and the Western District of Washington.
“We believe that by actively participating in the Elder Justice Task Forces announced today through joint investigations, sharing information and regular meetings; we will strengthen our efforts nationally to protect the most vulnerable of our population who reside in our nursing homes and other care facilities,” said Keesha Mitchell, President of the National Association of Medicaid Fraud Control Units and the Director of the Ohio Medicaid Fraud Control Unit.
“The HHS Office of Inspector General (OIG) continues to pursue nursing home operators who provide potentially harmful care to residents who are often unable to protect themselves,” said Chief Counsel to the Inspector General Gregory Demske of HHS. “Creating these task forces sends a message to those in charge of caring for these beneficiaries that grossly substandard care will not be tolerated.”
“The Administration for Community Living was created to help ensure that older adults and people with disabilities are able to live the lives they want, with the people they choose, fully participating in their communities,” said Becky Kurtz, Director of the Office of Long-Term Care Ombudsman Programs at the Administration for Community Living. “Our mission includes supporting their basic right to live with dignity, free from abuse. We appreciate the Department of Justice’s leadership on this important initiative and applaud its long-standing commitment to elder justice efforts.”
“Our most vulnerable citizens deserve the highest quality care and attention,” said Executive Director Kathleen Quinn of the National Adult Protective Services Association. “This initiative will help insure that long-term care facilities provide it. The Department of Justice is to be commended for this, and indeed all its efforts, to protect the millions of elder abuse victims in this country.”
The Elder Justice Task Forces reflect the Department’s larger strategy and commitment to protecting our nation’s seniors, spearheaded by the Department’s Elder Justice Initiative. The Elder Justice Initiative coordinates and supports the Department’s law enforcement efforts and policy activities on elder justice issues. It plays an integral role in the Department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Elder Justice Initiative will be providing litigation support and training to the Elder Justice Task Forces. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.
Dangers of Butane Hash Oil Labs Cited as Five are ChargedRead the Press Release
PROVIDENCE, R.I. – United States Attorney Peter F. Neronha today announced the filing of federal criminal charges against five individuals for their alleged roles in the operation of butane hash oil (BHO) labs in Rhode Island. At a news conference to announce results of several joint federal, state and local law enforcement investigations into the operation of four BHO labs, United States Attorney Peter Neronha led a host of federal, state and local law enforcement leaders to emphasize the public safety threat and potential for catastrophic results due to the emerging presence of illicit BHO labs.
BHO labs are highly dangerous facilities used to extract tetrahydrocannabinol (THC), a Schedule I controlled substance found in marijuana plants, through the use of butane. In the past year, illicit BHO labs were discovered by law enforcement in South Kingstown, Westerly, Providence, and West Warwick.
United States Attorney Peter F. Neronha today announced federal criminal charges in four cases against five individuals all of whom, it is alleged, were involved in the operation of BHO labs. There is no relation between the defendants or the cases, other than allegations that the four labs were involved in the manufacture of hash oil from marijuana using butane.
United States Attorney Peter F. Neronha commented, “This activity poses an enormous threat to human life. Where BHO manufacturing is going on, no one is safe: not those involved in the illegal operation themselves; not those who happen to be living or visiting nearby; not first responders. The demand for BHO, whether for purported medical purposes or otherwise, cannot justify its production, given the magnitude of risk. Second, those who continue to engage in the production of BHO, notwithstanding what ought to be abundantly clear by now, will be the strong focus of our collective law enforcement efforts.”
“DEA is committed to locating, investigating and dismantling butane honey oil labs, which create a real potential for fires, explosions, injuries and deaths, and to investigate those traffickers who manufacture and distribute BHO,” said Special Agent in Charge of DEA in New England Michael J. Ferguson. “The federal charges announced today represent law enforcement’s efforts to combat this emerging deadly threat, and fulfill our obligation to improve public safety and health. These investigations demonstrate the strength of collaborative law enforcement efforts in Rhode Island to aggressively pursue anyone who manufactures and dispenses these dangerous drugs.”
“BHO operations pose a very serious threat to public safety. ATF is committed to assisting our law enforcement and public safety partners in identifying and arresting those responsible for such egregious acts” - Daniel J. Kumor, ATF Special Agent in Charge / Boston Field Division.
“Unregulated production of BHO in our communities is a significant public safety problem, putting families, neighbors, and the general public at risk. It is dangerous and can be deadly, as it was with the BHO lab explosion last year in South Kingstown. The increased production and use of BHO is yet another example of how our existing marijuana laws and regulatory structure has led to dangerous unintended consequences. We need to get a handle on this problem now, before more lives are lost, by giving law enforcement the tools they need to investigate and shut down these death labs,” said Attorney General Peter F. Kilmartin who has filed legislation that would prohibit medical marijuana patients and caregivers from extracting THC from marijuana using a flammable liquid, the method used in making BHO. The legislation would allow compassion centers to extract THC using a flammable liquid only within rules and regulations to be promulgated by the Rhode Island Department of Health.
Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police and Commissioner of the Department of Public Safety said, “Butane hash oil labs pose a significant threat not only to the public but to every first responder called upon to respond to any emergency where these BHO labs are being operated. The Rhode Island State Police and the Rhode Island Fire Marshal’s Office will continue to work closely with federal and local law enforcement agencies, and federal and state prosecutors, to identify these labs and to hold those who run these labs and endanger our neighborhoods accountable.”
“The Providence Fire Department faced a totally engulfed building fire on Kinsley Avenue, which put the lives of numerous firefighters in danger when they fought this fire. At one point while on the scene of the fire, the exterior wall collapsed and a roof beam catapulted through the wall nearly striking apparatus and firefighters. These defendants caused our firefighters great danger and put the public at risk for which we are grateful no one was injured. This is an example of what the Providence firefighters face when answering a fire alarm. It could have turned tragic for so many,” said Providence Public Safety Commissioner Steven M. Paré. “Our firefighters, ATF, and the arson investigators did an outstanding job investigating this fire. I hope this will deter others from similar behavior that is so dangerous and risky for our public safety officers.”
Investigations and Federal Criminal Charges
214 Hemlock Road
South Kingstown
According to a federal indictment returned on Tuesday, it is alleged that on July 31, 2015, explosions and fire in and around a BHO lab caused significant property damage to a single family residence in South Kingstown, and seriously injured two individuals. The injuries suffered by one of the individuals contributed to his death three months later.
It is alleged in the indictment that Dillon Kantlehner, 26, of Providence, and a second person who later died from injuries sustained as a result of the explosions and fire, used the kitchen area to operate a BHO lab. Investigators seized more than 500 grams of BHO and over 9,000 grams of marijuana from the home, as well as 72 butane canisters, some empty and some full.
The indictment charges Kantlehner with endangering human life while illegally manufacturing a controlled substance. A federal warrant has been issued for the arrest of Dillon Kantlehner.
498 Kinsley Avenue
Providence
On March 9, 2015, a massive fire destroyed an 85,900 square foot warehouse on Kinsley Avenue in Providence. As alleged in a federal indictment returned on Tuesday, Christopher White, 50, of Warwick, and Graeme Marshall, 50, of Cranston, leased the warehouse from which they operated a business that sold equipment and supplies for marijuana cultivation. It is alleged in the indictment that White and Marshall used a portion of the warehouse to operate a butane hash oil manufacturing laboratory. It is alleged in the indictment that over a period of approximately two years, White and Marshall manufactured over 1,000 grams of BHO at the Kinsley Avenue warehouse, which they sold for between $15 and $30 per gram.
It is alleged in the indictment that the fire began in the room where the BHO laboratory was located.
A 22-count federal indictment charges Christopher White and Graeme Marshall with nine counts of endangering human life while illegally manufacturing a controlled substance, one count of conspiracy, seven counts of distribution of a controlled substance and five counts of money laundering. White and Marshall appeared today for arraignment before U.S. District Court Magistrate Judge Patricia A. Sullivan. A not guilty plea was entered. The defendants were released on unsecured bond.
15 Apache Drive, Apt. B
Westerly
In the early morning hours of November 27, 2015, in the wake of a fire in a multi-unit apartment building on Apache Drive in Westerly, investigators discovered a BHO lab. It is alleged that one of the residents of the apartment had been conducting a butane hash oil manufacturing operation.
A criminal information filed in this matter charges Scott Slagel, 41, with endangering human life while illegally manufacturing a controlled substance. Slagel is scheduled to be arraigned in U.S. District Court on April 5, 2016.
656 Providence Street, Apt. 301
West Warwick
On July 16, 2015, West Warwick Police and federal law enforcement agents executed a Rhode Island state court authorized search warrant inside a building on Providence Street, which houses residential and commercial units. In an apartment leased by Tyler Crespo, 21, law enforcement allegedly discovered a full-scale butane hash oil manufacturing laboratory. Investigators also seized over 6,000 grams of butane hash oil and nearly $14,000 in cash.
A federal indictment returned on Tuesday charges Tyler Crespo with one count of endangering human life while illegally manufacturing a controlled substance and one count of manufacture of a controlled substance. A federal warrant has been issued for the arrest of Tyler Crespo.
An indictment and criminal information are merely allegations and are 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.
The cases are being prosecuted by Assistant United States Attorneys Sandra R. Hebert, Paul F. Daly, Jr., and Richard B. Myrus.
The various matters were investigated by a combination of law enforcement agents and officers from the DEA, ATF, Rhode Island State Police and Rhode Island State Fire Marshal’s Office, The Providence Police Department and the Providence Fire Marshal’s Office, the Westerly, South Kingstown and West Warwick Police Departments, and by prosecutors from the United States Attorney’s Office with the assistance of prosecutors from the Rhode Island Department of the Attorney General.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Cybersecurity Roundtables at ISU and Drake University: Business Leaders Hear from Subject Matter ExpertsRead the Press Release
CEDAR RAPIDS, IA – Today the United States Attorneys for the Northern and Southern Districts of Iowa co-hosted with Iowa State University (ISU) and Drake University intellectual property and cybersecurity roundtables on both campuses. Two prominent subject matter experts from the Department of Justice (DOJ) provided their assessments of the cyber threats confronting American business interests and national security.
The goal of the roundtables was to provide informative briefings and discussion as to the nature of the cyber threat posed to businesses today and to provide information concerning the law enforcement response to actual or potential cyber breaches in the future. By hosting these roundtables, the United States Attorneys and the FBI hope to open and strengthen the lines of communication between the private sector and government that would be vital to an effective response to potential threat or attack.
United States Attorney for the Northern District of Iowa, Kevin W. Techau, stated, “Today’s program provided high level FBI and DOJ briefings on the cybercrime dynamics that Iowa based companies face in 2016 and beyond. Combatting cybersecurity threats is a top priority for the Department of Justice. To effectively fight cybercrime it is important to build awareness and plan in advance of an event. Collaboration between federal government agencies and the private sector is vital to success.”
“We are pleased to be part of this very timely and important discussion,” stated Southern District of Iowa Acting U.S. Attorney Kevin VanderSchel. “The risks to individual companies and industries are profound due to the ongoing attempts to steal trade secrets, especially through computer intrusion, and we want Iowa businesses to know that the FBI and the Department of Justice stand ready to assist.”
The ISU roundtable was designed to target businesses involved in agriculture, ag bioscience, biotech and bio renewables and addressed such matters as intellectual property/trade secrets theft and cyber security issues. The Drake University roundtable focused on financial services companies, banks, and manufacturing/tech related companies addressing intellectual property and cybersecurity issues.
Assistant Attorney General (AAG) for National Security, John P. Carlin, spoke to Iowa’s business leaders attending the ISU roundtable about current threats and what his division is doing to identify, prevent, and prosecute suspected criminal activity. Carlin serves as the Department of Justice’s top national security attorney overseeing nearly 400 employees responsible for protecting the country against international and domestic terrorism, espionage, cyber, and other national security threats.
Joining AAG Carlin during the keynote address was FBI Deputy Assistant Director of the Cyber Crime Division, Eric Sporre. Spore offered the FBI’s threat assessment. Sporre is responsible for managing all operations sections in the FBI Cyber Division.
The media attending the ISU roundtable joined Carlin, Sporre, and both U.S. Attorneys in a tour of the Bio-Renewables Complex, which serves as home for the university's top-ranked department of agricultural and Biosystems engineering (ABE).
Follow us on Twitter @USAO_NDIA.
Cullman County Man Indicted for Producing Child Pornography Involving Multiple VictimsRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Cullman County man, on charges related to the production of child pornography involving four minor victims, announced U.S. Attorney Joyce White Vance and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
GREGORY JEROME LEE, 53, was indicted on four counts of production of child pornography, one count of conspiracy to advertise child pornography and one count of conspiracy to distribute and receive child pornography.
According to the indictment, from September 1996 through December 2004, Lee used, persuaded, coerced and enticed minors to engage in sexually explicit conduct in order to produce images of that conduct. Between September 1996 and August 2007, Lee conspired with other individuals to distribute and receive child pornography through a variety of means, including the Internet.
The U.S. Postal Inspection Service is investigating the case. Assistant U.S. Attorney Jacquelyn Hutzell and Trial Attorney Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until and unless proven guilty. Members of the public who may have information related to this matter should call the USPIS Birmingham Office at (205) 326-2909.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, 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 www.justice.gov/psc.
Clarksville Man Pleads Guilty to Bank EmbezzlementRead the Press Release
Eric Williams, 32, of Clarksville, Tenn., pleaded guilty yesterday in U.S. District Court, to one count of bank embezzlement, announced David Rivera, United States Attorney for the Middle District of Tennessee.
According to court documents, Williams was employed by First Tennessee Bank as a Financial Services Representative and later as a Credit Analyst, at a Nashville branch. His duties included meeting with customers who were seeking to open new accounts. Williams admitted that from 2013 to 2015, he embezzled more than $27,000 from customer accounts. He carried out this scheme by targeting elderly customers and without their knowledge, used their information to open bank accounts and apply for ATM cards, changing the mailing address to the bank branch instead of the customer’s home. When Williams received the ATM cards, he used them to withdraw money from the accounts.
Williams faces up to 30 years in prison and a fine of up to $1 million; forfeiture of criminal proceeds; and will be ordered to pay restitution in the amount of $27,387. Williams will be sentenced by U.S. District Judge Aleta Trauger on June 24, 2016.
The case was investigated by the Federal Bureau of Investigation. The United States is represented by Assistant U.S. Attorney Thomas J. Jaworski.
Charlotte Man Sentenced to More Than 13 Years for Carjacking A Family at Gun PointRead the Press Release
CHARLOTTE, N.C. – Xavier Shiheen Mills, 23, of Charlotte, was sentenced today to 161 months in prison for carjacking a family at gunpoint, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also ordered Mills to serve three years under court supervision after he is released from prison.
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 (CMPD).
According to court documents and today’s sentencing hearing, on or about January 7, 2015, Mills carjacked a woman, her teenage son, and her other two young children, ages three and four, at a gas station located in Charlotte. According to court records, the family had stopped at the gas station to refill their car, when Mills approached the female victim who was standing by the gas pump, pointed a firearm at her and demanded the car keys, which were inside the vehicle. Court records show that Mills got inside the car to look for the keys, pointed the gun at the male victim seating in the passenger seat, and hit him in the head with the firearm. According to court records, once the male victim was out of the car, Mills fired his gun and the bullet entered a nearby parked unoccupied vehicle, passing through a child’s car seat and driver’s headrest. At that time, the male victim reached into the car, retrieved the keys and gave them to Mills. The male victim was able to pull the two young children out of the car before Mills drove off with the stolen vehicle.
Court records show that Mills was captured on surveillance video and was identified by an individual who knew him and recognized the red backpack Mills was carrying at the time of the carjacking. Law enforcement recovered the stolen vehicle a few days later. Court records indicate that inside the stolen vehicle, law enforcement found Mills’ backpack, ammunition and the firearm he had used to carry out the carjacking. In November 2015, Mills pleaded guilty to one count of carjacking and one count of possession of firearm in furtherance of a crime of violence.
“Mills turned a family’s quick stop at a gas station into a nightmare, terrorizing them and carelessly putting their lives, and the lives of other bystanders, in danger. Thankfully, no loss of life occurred. Mills is headed to federal prison but this family will continue to feel the effects of this harrowing experience for a long time. We are grateful to them for their cooperation in the investigation and prosecution,” said U.S. Attorney Rose.
“This case is another example of ATF’s commitment to ensure the public’s safety by removing violent criminals from our communities. This result could not have happened without the outstanding partnership between ATF and the Charlotte Mecklenburg Police Department,” said Special Agent in Charge Hyman.
Mills will be transferred to 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 CMPD. The prosecution for the government was handled by Special Assistant U.S. Attorney Rebecca McNerney and Assistant U.S. Attorney Craig Randall of the U.S. Attorney’s Office in Charlotte.
California Wholesale Executive Pleads Guilty for Role in $9 Million Bank Fraud SchemeRead the Press Release
A California man who was a vice president of a wholesale equipment company pleaded to fraud charges today in connection with a bank fraud scheme that resulted in more than $9 million in losses to a California bank.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Acting Special Agent in Charge Anthony Orlando of the Internal Revenue Service-Criminal Investigation (IRS-CI) Los Angeles Field Office and Special Inspector General for the Troubled Asset Relief Program (SIGTARP) Christy Goldsmith Romero made the announcement.
Chung Yu Yeung, aka Louis Yeung, 39, of San Dimas, California, pleaded guilty before U.S. District Judge Christina A. Snyder of the Central District of California to one count of conspiracy to commit bank fraud and four counts of bank fraud. Sentencing was set for June 20, 2016, before Judge Snyder.
According to admissions made in connection with his guilty plea, from 2007 to 2012, Yeung was the vice president of Eastern Tools and Equipment Inc. (Eastern Tools), a wholesale equipment company based in Ontario, California, that sold portable generators to retailers across the country. Yeung admitted that beginning in 2007, he and his co-conspirators defrauded East West Bank, based in Pasadena, California, in connection with a line of credit for Eastern Tools by making and causing to be made material misrepresentations to the bank about Eastern Tools’ accounts receivable and its financial statements. The conspirators created numerous shell corporations to act as purported suppliers and retailers doing business with Eastern Tools, when, in reality, these shell corporations were entirely under the control of Yeung and existed for the sole purpose of creating the illusion of such business, he admitted. Yeung admitted that the fictitious companies allowed him and other conspirators to falsely inflate Eastern Tools’ accounts receivable and financial statements in representations to East West Bank.
To further the scheme, Yeung and other conspirators opened and caused to be opened post office boxes, phone accounts and email accounts purportedly associated with the shell retail companies, and provided information about these items to East West Bank auditors to promote the illusion that these shell customers were independent entities, according to admissions made in connection with Yeung’s plea.
Eastern Tools defaulted on the promissory note after East West Bank discovered the fraud, causing more than $9 million in losses to the bank, Yeung admitted.
SIGTARP, IRS-CI and the FBI investigated the case. Senior Litigation Counsel David A. Bybee of the Criminal Division’s Fraud Section is prosecuting the case.
California Man Sentenced to Seven Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Jacob Spurlin aka John Ray Monroe, age 32, of Turlock, California, was sentenced this week to 84 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, on February 27, 2015, while investigators with the 18th East Judicial Drug Task Force and Homeland Security Investigations were conducting screening of multiple packages utilizing a canine at the FedEx store located in Hot Springs, the canine alerted on a package being sent from California to Michelle Ratliff. After obtaining a search warrant for the package, investigators opened the package and located four candles that had been hollowed out and filled with vacuumed sealed bags of methamphetamine. Michelle Ratliff had called FedEx earlier that day and advised that she would be picking up her package on her lunch break. She later arrived, showed her identification, and picked up the package. When she left the store, she entered the passenger side of a black Cadillac Escalade driven by Jacob Spurlin. As they attempted to leave the parking lot of FedEx, officers stopped the Escalade, arrested both subjects and took them into custody. A review of text messages from Ratliff’s phone revealed that Spurlin had been communicating with her about picking up the package which contained 256 grams of methamphetamine. On April 16, 2015, Spurlin was arrested on a federal warrant out of the Western District of Arkansas and interviewed by agents with Homeland Security Investigations. Spurlin admitted to being involved in drug trafficking in the Hot Springs area and explained his role in receiving packages from out of state for further distribution. Spurlin was indicted by a federal grand jury in April, 2015 and pleaded guilty in August, 2015.
The co-defendant Michelle Ratliff also pleaded guilty to Conspiracy to Distribute Methamphetamine in August, 2015, and is awaiting sentencing.
This case was investigated by the 18th Judicial District East Drug Task Force and Homeland Security Investigations. Assistant United States Attorney David Harris prosecuted the case for the United States.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
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Buffalo Man Sentenced for Distributing Designer Drug to MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Peter Anthony Vargas, III, 23, of Buffalo, NY, who was convicted of distributing the designer drug 5-MeO-DiPT, more commonly known as “Foxy Methoxy” or “Foxy,” to a person under 21 years of age, was sentenced to 24 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that late on October 18, 2013, the defendant sold a substance represented to be “Foxy Methoxy” to an intermediary at a commercial haunted house located behind the McKinley Mall in Blasdell, NY. The intermediary then immediately provided the substance to a 17-year-old minor.
Later that night, the minor began to feel dizzy and paranoid and experienced hallucinations. The following day, the minor was admitted to a local hospital in an unresponsive state and was placed on a ventilator to assist breathing. The minor subsequently recovered and was discharged from the hospital.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Bronx Man Pleads Guilty to June 18, 2015, Upper West Side MurderRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that STEPHEN ADAMS, 28, of the Bronx, pled guilty before U.S. Magistrate Judge James C. Francis IV to shooting and killing Bubacarr Camera on June 18, 2015, during an armed robbery of a small business on the Upper West Side of Manhattan, and a June 16, 2015, armed robbery of another small business in Harlem.
U.S. Attorney Preet Bharara stated: “In the course of robbing a small business, Stephen Adams murdered an innocent shopkeeper, Bubacarr Camera, who had recently come to this country to pursue a better life. I want to thank the ATF, the NYPD, and the U.S. Marshals for their outstanding investigative work on this case.”
According to the allegations in the Indictment to which STEPHEN ADAMS pled guilty and other documents in the public record:
On June 18, 2015, STEPHEN ADAMS and two other men, Zubearu Bettis and Michael Adams, shot and killed Bubacarr Camera in the course of a robbery of a store located at 906 Amsterdam Avenue on the Upper West Side of Manhattan.
Two days before that murder, on June 16, 2015, Zubearu Bettis and STEPHEN ADAMS robbed another shopkeeper at a store located at 2251 7th Avenue, in Manhattan. During that robbery, Bettis brandished and discharged a firearm, while ADAMS physically accosted the victim.
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The charges to which STEPHEN ADAMS pled guilty carry a maximum of life in prison, and a mandatory minimum of 10 years in prison. The maximum and minimum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
The prosecution is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Jared Lenow and Max Nicholas are in charge of the prosecution.
Birmingham Man Indicted for Preparing False Tax Returns and Intimidating WitnessesRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Birmingham man for preparing false income tax returns and for intimidating witnesses who the Internal Revenue Service contacted to question about returns he had prepared, announced U.S. Attorney Joyce White Vance and IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
An 11-count indictment filed in U.S. District Court charges DONALD E. STEELE, 41, with seven counts of aiding in the preparation of a false federal income tax return in 2010 or 2011, and with four counts of witness tampering in 2011. At the time, Steele operated Max Tax, a Birmingham tax return preparation business owned by his wife.
Steele is charged with making false claims and fabricating tax deductions on federal tax returns for five different taxpayers. Among the charges is that, in 2011, Steele prepared a 2010 tax return for “H.N.D,” fraudulently claiming an exemption for her disabled dependent brother, identified as “K.L.,” when Steele knew that K.L. was H.N.D.’s boyfriend and not disabled. Steele also claimed a $1,000 “American opportunity” tax credit based on a false claim that K.L. was a student and had incurred $4,000 in education expenses during the 2010 tax year.
In the witness-tampering counts, Steele is charged with calling K.L. about seven or eight times after learning IRS agents were inquiring about the preparation of H.N.D.’s 2010 tax return and telling K.L. to lie to the agents and tell them that Steele’s wife had prepared H.N.D.’s return.
Two other counts of the indictment charge Steele with preparing returns for “A.E.T.” for the calendar years 2009 and 2010, falsely claiming business losses for the taxpayer when she was not self-employed in either year and did not provide Steele any information pertaining to self-employment. Steele claimed a net business loss of $12,049 for A.E.T. in 2009 and a net loss of $11,938 in 2010, according to the indictment.
In another witness tampering count, Steel is charged with contacting a former tax preparer at Max Tax and telling her that if IRS agents contacted her, she should withhold information and tell them that he did not prepare any tax returns, that his wife prepared and transmitted the returns.
The maximum penalty for aiding in the preparation of a false federal income tax return is three years in prison and a $250,000 fine. The maximum penalty for witness tampering is 20 years in prison and a $250,000 fine.
IRS-CI investigated the case, which Assistant U.S. Attorney J. Patton Meadows is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Assistant Attorney General John P. Carlin Delivers Keynote Remarks at Intellectual Property Protection and Cybersecurity Roundtable at Iowa State UniversityRead the Press Release
Remarks as prepared for delivery
AMES, IOWA
Thank you for that introduction, [U.S. Attorney] Kevin [Techau].
And thank you for inviting me to speak today about the national security threats facing our nation. This event comes on the heels of a landmark week for the department’s national security cyber program, and I want to start by saying a few words about our strategy and recent successes in this space.
For many years, nation states and their affiliates enjoyed what they perceived to be a cloak of anonymity when acting in cyber space. A cloak they hid behind to break our laws through cyber intrusions and to threaten our security and economic well-being. They had this perceived cloak because they thought we couldn’t figure out who did it and, if we did figure it out, we would keep it a secret.
Last week, we proved yet again – through a number of law enforcement actions – that we will find and expose those who threaten our national security through cyber attacks or theft.
First and foremost, we unsealed an indictment charging seven experienced Iranian computer hackers for their roles in an extensive campaign of distributed denial of service attacks against the U.S. financial sector.
The damage was real: 46 major financial institutions attacked over 176 days, hit by as much as 140 Gigabits of data per second, costing the victims tens of millions of dollars.
In addition, one defendant is also charged with obtaining unauthorized access into the Supervisory Control and Data Acquisition systems of the Bowman Dam, located in Rye, New York. The intrusion could have given the hacker control of the dam’s water levels and flow rates if it had not been disconnected from the system for maintenance.
These attacks threatened public health and safety, and our economy. And this indictment exposes the faces and names behind the keyboards in Iran used to orchestrate these attacks against us – the attackers were employed by two computer security companies that work on behalf of the Iranian Government, including the Islamic Revolutionary Guard Corps.
That same week, we unsealed a complaint against members of the Syrian Electronic Army, for activity that sought to harm the economic and national security of the United States in the name of Syria and sought to extort law-abiding people all over the world to line their own pockets.
And, following a successful extradition from Canada, we convicted a Chinese businessman in Los Angeles for hacking into the computer networks of U.S. defense contractors, including Boeing, and stealing sensitive information, including data related to fighter jets.
Last week’s announcements prove, once again, there is no free pass for nation state affiliated computer intrusions.
The Role of the National Security Division
Disrupting these national security threats is among the highest priorities of the Department of Justice and the National Security Division. Let me share a bit of background on the National Security Division, and what our experience combatting the threat of terrorism has taught us about combating other national security threats, including threats to our national assets.
The September 11th terrorist attacks showed us that putting walls up between foreign intelligence and law enforcement makes connecting the dots of a plot very difficult. So a decade ago, Congress created the department’s first new litigating division in almost half a century, the National Security Division.
We ensure unity of purpose in the department’s number-one mission – to protect against terrorism and other threats to our national security. And we unite prosecutors and law enforcement officials with intelligence attorneys and the intelligence community, to ensure that we approach national security threats using every tool and resource available to the federal government.
In the years since National Security Division’s creation, it is increasingly clear that the factors that motivated our creation and guided our efforts to combat terrorism are equally true in our efforts to protect our valuable national assets.
As with counterterrorism, we realized that prosecution is only one of the many tools the U.S. government brings to bear. So the National Security Division restructured and adapted to support a whole-of-government approach to national security cyber threats. Criminal prosecutions, sanctions, trade pressure and diplomatic options are just some of the responses available to us as we combat online threats to the national security.
Underlying all of the government’s policy options is the need for attribution – to attribute online intrusions with confidence, down to the country, government agency, organization or even individuals involved.
Law enforcement agencies and the Department of Justice are uniquely well suited for these kinds of investigations. And these investigations are the bedrock of our whole-of-government approach because they facilitate the use of so many other tools that promote deterrence.
In some cases, attribution leads to public charges and a criminal prosecution. In other cases, a prosecution may not be the right option, but attribution opens the door for sanctions, disruption operations and bilateral diplomacy.
Our attorneys live by that whole-of-government approach. We work with our government partners to pick the best tool or combination of tools to get the job done under the rule of law.
We ensure that we have the necessary expertise no matter who is behind the threat, what their motivation is or what tool we need to use.
Under unified NSD leadership, we have integrated the department’s full range of national security expertise under one roof, bringing varied skills and knowledge to the full range of national security challenges.
The Threats to our National Assets
The threat landscape we face is ever-changing and evolving, and while our top priority remains combating terrorism, we have also sharpened our focus and increased our attention on the emerging threats to our national assets, including the threat of economic espionage.
And we have seen that these threats are not confined to banks in New York or defense contractors in California. Our entire nation, including America’s heartland here in Iowa, is under constant attack from foreign adversaries and competitors who try to steal trade secrets and other intellectual property, at the expense of our economy and national security.
When certain foreign entities eager for sensitive and valuable information can’t buy it, they may take another approach: they try to steal it. Corporate theft can occur through insiders employed by a company – or it can occur remotely, through cyber intrusions that exploit a vulnerability present in a company’s networks. Companies must be ready for all of these vectors of vulnerability.
Iowa is a fitting place to address these topics. Iowa’s agricultural and food production, renewable energy, biotechnology and advanced manufacturing are an integral part of the country’s economic engine. Between 2002 and 2011, Iowa’s agricultural production grew over 200 percent. This growth is attributable in part to the tremendous innovation that is taking place
in the American agriculture sector. According to one government study, agricultural biotech accounts for $80 billion of a $260 billion biotechnology sector.
You are revolutionizing the way America grows crops. You invest in biotechnology research to develop higher-yielding, drought-resistant crops. You rely on data from sophisticated soil sensors, satellites and drones to optimize the use of water and pesticides.
But, while you spend your days innovating, others spend their days on campaigns to steal the fruits of Americans’ labor.
Just this year, here in Iowa, Mo Hailong, a lawful permanent resident and employee of a China-based seed company, was convicted of participating in a long-term conspiracy to steal trade secrets from DuPont Pioneer and Monsanto, for the purpose of covertly transferring the technology to China.
Hailong and his co-conspirators brazenly stole inbred corn seeds from production fields not far from here. Although he knew that this technology was the valuable and confidential intellectual property of DuPont Pioneer and Monsanto, he stole it for the benefit of his China-based company.
The threat of this kind of economic espionage is serious. Some estimate that, every year, the U.S. loses more than $300 billion from theft of our intellectual property. That figure is about equivalent to the current annual level of U.S. exports to Asia. Losses of that magnitude cost the American economy untold numbers of jobs.
They reduce the profit that American firms make from research and development, which in turn reduces the incentives and resources for innovation. And the activity undermines the trust between countries and companies that is necessary to do business in a globalized economy.
As companies move to digital storage, economic espionage increasingly occurs not just through insider threats but also through cyber activity. As a result of the proliferation of technology – and the myriad ways to exploit it – we face a changing world order in which lone hackers, organized crime syndicates and nation states are all increasingly able to harm our shared networks and our livelihood. Every sector of the economy is a target – agriculture, energy, financial institutions, infrastructure, entertainment and more.
And hackers come in all shapes and sizes. We have seen state and non-state actors using the Internet to steal our intellectual property and export-controlled information at unprecedented levels.
For example, in May 2014, after a lengthy investigation, the department indicted five Chinese military officers by name for computer hacking, economic espionage and other offenses directed at American companies. The indictment describes numerous and specific instances where uniformed officers of the People's Liberation Army hacked into the computer systems of American nuclear power, metals and solar-products companies to steal trade secrets and sensitive, internal communications that could be used by Chinese companies to give them a commercial leg-up.
The investigation, and the public charges it led to, have had a lasting impact. At the time, our indictment was met with indignant denials. But a year later, after rumors circulated that additional costs might be imposed, Chinese President Xi Jinping publicly declared, during his state visit in September, that, “China strongly opposes and combats the theft of commercial secrets and other kinds of hacking attacks.” The United States and China committed that neither country’s government will conduct, or knowingly support, cyber-enabled theft of trade secrets or confidential business information with the intent of providing competitive advantage to companies or commercial sectors.
And, at the G20 Summit last fall, leaders of the world’s most powerful nations pledged not to conduct or support cyber economic espionage. What began with denials ended, at least for now, with a shift in international norms and a commitment from China to change its behavior.
Of course, indictments of state-sponsored hackers will not, on their own, prevent all cyber theft. This is the very point of an all-tools, whole-of-government approach. We need to exert pressure on bad actors from every possible angle. Prosecutions are just one tool in the broader Justice Department approach, which is just one angle from which the U.S. can pressure nation-state actors. The ultimate success of this approach will depend on the ability of U.S. agencies and departments to strengthen and support one another’s actions.
We will not stand idly by as others attempt to steal from us. We will hold them accountable – no matter who they are, where they are or the means by which they steal.
Public-Private Partnership
But we cannot do it alone. Your companies – and thus, you, have a critical role to play.
In the case of Hailong, the investigation was initiated when DuPont Pioneer security staff detected suspicious activity and alerted the FBI. DuPont Pioneer and Monsanto cooperated fully throughout the investigation, and that cooperation was essential to disrupt the theft of American technology and hold the perpetrator accountable.
As leaders in your industries, you are on the front lines defending your companies’ valuable intellectual property against insider threats, cyber-attacks and other bad actors determined to erode America’s status as a global leader in those fields.
We know from experience that those seeking to do us harm will look for any available vulnerability to exploit. In many cases, your adversaries have the full backing of their foreign governments and so should you.
As a nation, we must work together to deter and disrupt these threats, and to change our adversaries’ calculus by increasing their cost. Our strategy must ensure there is no free pass.
But the government’s response is only one half of the equation. We need your help. Our nation’s crown jewels are overwhelmingly in private sector hands. And so we work with U.S. companies, across all industry sectors, to ensure that our national security interests are protected.
We have spent time and energy in face-to-face sit downs so that we may better understand the concerns and challenges facing U.S. companies, share guidance and information, and assist with protection, detection, attribution and response. We can warn companies that manufacture or sell targeted U.S. technology when certain bad actors are seeking the particular technology they make.
Corporate outreach sensitizes industry to the threat they face and helps to stem the flow of sensitive technology out of the United States.
This type of cooperation is especially important with respect to cyber-enabled threats. After all, the Internet runs on private infrastructure and the hardware and software that we all use – including in the government – is developed and maintained by the private sector.
After an attack, if an organization works with law enforcement, it puts both in the best possible position to find out exactly what happened and to remediate and prevent further damage. The evidence is often fleeting, so early notification and access to the data is extremely important.
In addition, we may have seen the same indicators of malicious activity in other attacks, so we can conclude who was responsible and identify possible impacts and means of remediation. Importantly, it also allows us to share information with other potential victims. One organization’s vulnerability is everyone’s vulnerability and it is critical that we work together.
Law enforcement may be able to use legal authorities and tools that are unavailable to non-governmental entities. Law enforcement can also enlist the assistance of international partners to locate stolen data or identify a perpetrator.
These tools and relationships can greatly increase the odds of successfully apprehending an intruder or attacker and securing lost data. Finally, this cooperation is vital to successful prosecutions that, as I explained, can prevent criminals from causing further damage to victim companies and others.
A united front is critical because the threat you face includes hackers with the full backing of their governments or that are part of sophisticated, international criminal syndicates. They have backup, but so do you – because your government is here to help.
Last year, we announced a new position within the National Security Division focused on outreach to the private sector. This position was created in recognition of the importance of relationships and cooperation in cybersecurity. We understand the importance of prevention and of resilience. We want to support our private sector partners, whether they simply want to establish early lines of communication or call while under the strain of a continuing network breach.
The conversations we have at these events are essential to keep our nation secure, to protect the privacy of our citizens, to enable American businesses to compete fairly in our global economy and to ensure that U.S. businesses and institutions are resilient in the face of cyber threats. While we gather here in Iowa to work together to make this country safer, our adversaries likewise gather to strategize against us. The threats are not letting up and neither will we.
Thanks again for inviting me. I look forward to your questions.
Asheville Summit Addresses the Epidemic of Heroin Addiction and Opioid Drug AbuseRead the Press Release
ASHEVILLE, N.C. – Today, the U.S. Attorney’s Office for the Western District of North Carolina hosted a conference in Asheville to address the growing threat of heroin addiction and opioid drug abuse in the western part of the district. The conference was the first-ever held in the area and was co-sponsored by the Drug Enforcement Administration (DEA), the Buncombe County Sheriff’s Office, the Asheville Police Department and Smoky Mountain LME/MCO, a local management entity/managed care organization.
Each year more than 46,000 people in the U.S. die from a drug overdose and half of those deaths are related to opioid abuse, including prescription pain medication. People who take prescription painkillers, which are prescribed by a physician, can become addicted with just one prescription. Most first-time abusers of painkillers obtain them from a friend or relative. A 2014 national survey reported an estimated 1.4 million people in the United States abused a prescription pain killer for the first time that year. In the 1960’s, more than 80% of opioid abusers began using heroin first. In the 2000’s, 75% of opioid abusers started with prescription opioids. More than 10 million people in the United States, age 12 and older, reported non-medical use of prescription opiates in 2014.
“Heroin addiction and opioid drug abuse are public health threats we must tackle head on,” stated U.S. Attorney Jill Westmoreland Rose, who delivered opening remarks this morning. “As heroin is quickly becoming the number one cause of overdose deaths in the area, the consequences of opioid drug abuse are taking a tremendous toll on our communities. Today’s summit puts a spotlight on the devastating impact of heroin and opioid addiction and the importance of combining our resources to address this public health crisis, focusing on awareness, prevention, treatment and developing a coordinated community response to this epidemic.”
Approximately 200 professionals from the fields of law enforcement, medicine, substance abuse and treatment, as well as interested community members attended the summit, held on the campus of the University of North Carolina in Asheville. Speakers from federal and local law enforcement agencies, medical experts and representatives of community organizations presented on a broad range of topics including: the alarming rise in heroin and opioid addiction; heroin trafficking trends and law enforcement efforts to stem the flow of opiates; prevention and medical treatment; and ways community organizations can support combating opioid addiction in western North Carolina and promote second chances for individuals in recovery. Audience members also heard a first-hand account from a parent’s perspective on dealing with the death of a child from heroin overdose and the impact of the loss on the family.
U.S. Attorney Rose thanked the DEA, the Buncombe County Sheriff’s Office, the Asheville Police Department and Smoky Mountain LME/MCO for their co-sponsorship and emphasized importance of the conference stating that, “Today’s summit is not a one-time event. It is the beginning of a focused collaboration between law enforcement, the healthcare field and our community partners to confront heroin addiction and opioid drug abuse, address the problem in real and meaningful ways, and develop a systematic response to this dangerous epidemic.”
Arizona Supplier Sentenced to 11 Years in Prison for Drug Distribution and Money Laundering ConspiraciesRead the Press Release
Baltimore, Maryland – U.S. District Judge Paul W. Grimm sentenced Phillip Bingham, age 56, of Tucson, Arizona, today to 11 years in prison, followed by four years of supervised release, for conspiracy to possess with intent to distribute marijuana, and three counts of attempted possession of marijuana with intent to distribute; conspiracy to commit money laundering and three counts of money laundering; and two counts of interstate travel in aid of a narcotics enterprise. Judge Grimm also entered a forfeiture order requiring Bingham to pay a money judgment of $500,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Hank Stawinski of the Prince George’s County Police Department; Acting Chief Stanley Johnson, of the Maryland National Capital Park Police, Prince George’s County Division; Chief Antonio DeVaul of the Maryland National Capital Park Police, Montgomery County Division; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, from at least 2011 through December 2013, Bingham conspired with Marvin Taaff, Fernando Gastellum-Rivas, and others to distribute marijuana. Bingham, who was the leader of the drug operation in Arizona, identified sources of marijuana in Arizona and obtained marijuana for customers in Maryland and elsewhere. In September 2013, Taaff and another conspirator, Annis Attar, traveled from Maryland to Arizona to meet with Bingham and Gastellum-Rivas. Taaff and Attar purchased controlled substances, including marijuana, which Bingham packaged and provided to another conspirator, who took the packages to a shipper.
During the investigation, law enforcement overheard conversations and obtained text messages in which Bingham negotiated narcotics and money laundering transactions with Taaff and others located in Maryland and other states, and discussed the shipment of the drugs. Law enforcement intercepted at least three packages shipped by Bingham to Taaff and other conspirators in Maryland which contained a total of 62 pounds of marijuana.
In order to disguise the source and the recipient of the payments for the drug sales, Bingham utilized the bank accounts of at least five individuals. The individuals agreed to allow Bingham to use their bank accounts to receive payments for his narcotics trafficking activities and were paid in return for their assistance. Taaff and other conspirators, including Mahmood Hussain, deposited money to pay for the purchase of narcotics into these accounts, and the recruited individuals would then withdraw the funds in Arizona, as directed by Bingham. Bingham also received bulk cash payments, generally through couriers. For example, on October 28, 2013, law enforcement seized $102,000 bundled into a courier’s suitcase, after the courier checked in for his flight from Maryland back to Arizona. The money was payment for marijuana purchased by a distributor in Maryland, for delivery to Bingham.
On December 5, 2013, search warrants were executed at locations in Prince George’s County, Montgomery County and Tucson, Arizona, in connection with the conspiracy. Narcotics, drug paraphernalia, shipping materials, cash, and firearms were seized from locations associated with the conspiracy.
The court concluded that at least five kilograms of powder cocaine and at least 400 kilograms of marijuana were attributable to Bingham and within the scope of his participation in the conspiracy.
Mahmood Hussain, age 31, of Laurel, Maryland, Fernando Gastellum-Rivas, age 43, of Tucson, and Annis Attar, age 30, of Largo, Maryland, previously pleaded guilty to their roles in the conspiracy and were sentenced to 10 years in prison, 42 months in prison, and 40 months in prison, respectively. Marvin Anthony Taaff, age 29, of Takoma Park, Maryland, also pleaded guilty and is scheduled to be sentenced on April 4, 2016.
United States Attorney Rod J. Rosenstein praised the ATF, Prince George’s County Police Department, Maryland-National Capital Park Police and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Lindsay Eyler Kaplan, who prosecuted the case.
Alabama Man Indicted for Producing Child Pornography Involving Multiple VictimsRead the Press Release
An Alabama man was indicted today by a federal grand jury in Birmingham, Alabama, on charges related to the production of child pornography involving four minor victims, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Joyce White Vance of the Northern District of Alabama.
Gregory Jerome Lee, 53, formerly of Cullman County, Alabama, was indicted on four counts of production of child pornography, one count of conspiracy to advertise child pornography and one count of conspiracy to distribute and receive child pornography.
According to the indictment, from September 1996 through December 2004, Lee used, persuaded, coerced and enticed minors to engage in sexually explicit conduct in order to produce images of that conduct. Between September 1996 and August 2007, Lee conspired with other individuals to distribute and receive child pornography through a variety of means, including the Internet.
The U.S. Postal Inspection Service (USPIS) is investigating the case. Trial Attorney Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jacquelyn Hutzell of the Northern District of Alabama are prosecuting the case.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty. Members of the public who may have information related to this matter should call the USPIS Birmingham Office at (205) 326-2909.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, 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 www.justice.gov/psc.
29 March 2016
Utah Man Sentenced for Illegal Possession of a FirearmRead the Press Release
POCATELLO – Jose Angel Lucio, 34, of Ogden, Utah, was sentenced today to 39 months in prison for possession of a firearm by a convicted felon, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Lucio to serve three years of supervised release. Lucio pleaded guilty on December 9, 2015.
According to the plea agreement, on April 12, 2013, Lucio was arrested by the United States Marshals Service for an outstanding warrant. When he was arrested, Deputy U.S. Marshals found a Remington 30-06 rifle in his vehicle. Lucio subsequently admitted he had transported the rifle from Utah to Idaho for the purpose of selling it. Lucio had previously been convicted of aggravated assault in Weber County, Utah, and was prohibited from possession any firearms.
The case was investigated by the United States Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Idaho State Police.
Upcoming movie screening to provide glimpse into the human impact of painkiller, heroin abuseRead the Press Release
FAIRMONT, WEST VIRGINIA – On Thursday, April 7, 2016, the United States Attorney’s Office will join the Federal Bureau of Investigation and the Drug Enforcement Administration to host a dynamic community forum designed to highlight a unique, realistic perspective on the impact of prescription drug and opioid abuse.
The event will feature a screening of “Chasing the Dragon: The Life of an Opiate Addict,” a documentary film collaboratively produced by the FBI and the DEA in response to increasing prescription painkiller and opioid drug abuse in West Virginia and across the nation. The film, which is designed to better educate students and young adults about the dangers of these drugs and the tragic consequences that often accompany addiction, debuted nationally in February 2016. Students from the Fairmont State University Criminal Justice Program will attend the forum to supplement their current curriculum. The public is also invited to attend.
“It is the FBI's hope this film will start a conversation about the stark reality of drug abuse in this country and the unadulterated impact it has on our friends, families and communities,” noted Stephen L. Morris, Assistant Director of the FBI’s Criminal Justice Information Services (CJIS) Division in Clarksburg, West Virginia.The movie screening will begin at 6:00PM on April 7 in the Colebank Hall Gymnasium at Fairmont State University. The documentary will be followed by an interactive discussion with representatives from the Federal Bureau of Investigation, the United States Attorney’s Office, and the Drug Enforcement Administration. Individuals and community groups interested in obtaining additional information are encouraged to contact the Federal Bureau of Investigation by calling (304) 625-5833 or emailing [email protected].
Universal Aryan Brotherhood Member Sentenced to Nearly 22 Years in Prison for Racketeering and Related ViolenceRead the Press Release
TULSA, Okla. – A member of the Universal Aryan Brotherhood (UAB) prison gang was sentenced today in federal court to 262 months in prison for conspiring to conduct a racketeering enterprise and related charges, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
Ronnie Dean Haskins II, aka Dirty Red, 43, of Oklahoma, was sentenced by U.S. District Judge Claire V. Eagan of the Northern District of Oklahoma, who also ordered Haskins to serve five years of supervised release.
In connection with his guilty plea, Haskins acknowledged his membership in or association with the UAB, a violent, “whites only” prison-based gang with members and associates operating inside and outside of state prisons throughout Oklahoma.
According to admissions made in connection with his plea, Haskins conspired in racketeering activities to advance the UAB enterprise, including possessing and selling 500 grams or more of methamphetamine. Haskins admitted that he orchestrated and participated in the May 2013 kidnapping and maiming of a former UAB member who violated the UAB by-laws by helping restrain the victim while additional gang members burned off the victim’s UAB neck tattoo using a heated knife, causing permanent scarring.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Tulsa Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service-Criminal Investigations Division; FBI; Tulsa County Sheriff’s Office and the Oklahoma Department of Corrections investigated the case. Trial Attorney John C. Hanley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Allen Litchfield and Jan Reincke of the Northern District of Oklahoma are prosecuting the case.
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Universal Aryan Brotherhood Member Sentenced to 262 Months in Prison for Racketeering and Related ViolenceRead the Press Release
A member of the Universal Aryan Brotherhood (UAB) prison gang was sentenced today in federal court to 262 months in prison for conspiring to conduct a racketeering enterprise and related charges, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
Ronnie Dean Haskins II, aka Dirty Red, 43, of Oklahoma, was sentenced by U.S. District Judge Claire V. Eagan of the Northern District of Oklahoma, who also ordered Haskins to serve five years of supervised release.
In connection with his guilty plea, Haskins acknowledged his membership in or association with the UAB, a violent, “whites only” prison-based gang with members and associates operating inside and outside of state prisons throughout Oklahoma.
According to admissions made in connection with his plea, Haskins conspired in racketeering activities to advance the UAB enterprise, including possessing and selling 500 grams or more of methamphetamine. Haskins admitted that he orchestrated and participated in the May 2013 kidnapping and maiming of a former UAB member who violated the UAB by-laws by helping restrain the victim while additional gang members burned off the victim’s UAB neck tattoo using a heated knife, causing permanent scarring.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Tulsa, Oklahoma, Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service-Criminal Investigations Division; FBI; Tulsa County Sheriff’s Office and Oklahoma Department of Corrections investigated the case. Trial Attorney John C. Hanley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Allen Litchfield and Jan Reincke of the Northern District of Oklahoma are prosecuting the case.
U.S. Citizen Residing in Mexico Pleads Guilty to Mailing Threatening Communications Containing a White Powdery SubstanceRead the Press Release
John Milton Nagel, 47, pled guilty to three counts of mailing threatening communications from a foreign country, in violation of Title 18, United States Code, Section 877. At sentencing, Nagel faces a maximum statutory sentence of up to five years in prison, three years of supervised release, and a $250,000 fine on each count. Sentencing has been scheduled for May 26, 2016 at 2 p.m. before U.S. District Judge Jose E. Martinez.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to court documents, between September 1, 2015 and September 18, 2015, Nagel entered the Mexico City main post office located at Palacio Postal, Avenida Tacuba No. 1, Centro Historico, Delegacion Cuachtemoc, 06002 Mexico City, Mexico, and knowingly deposited for mailing thirty-seven (37) envelopes all addressed to prominent United States political figures and business leaders, each containing a threatening letter and a white powdery substance. A sample of the powder, removed from within the suspect letters, was thereafter sent to both Mexican and U.S. laboratories for analysis and ultimately revealed that the contents were bicarbonate.
The first page of each letter read “FREE SAMPLE OF EXECUTIVE TOOTH POWDER - ACTIVATES WITH HYDROGEN PEROXIDE. DO NOT SWALLOW! H2O2 MAY BE POISONOUS IF SWALLOWED DON'T PANIC, EVACUATE OR CALL 911…or there will be consequences...Mathew 13:49.” According to the King James version of the Bible, Matthew 13:49 states: “So shall it be at the end of the world: the angels shall come forth, and sever the wicked from among the just.”
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant United States Attorneys Marc S. Anton and Ricardo A. Del Toro.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Western Washington Men Get Long Prison Terms in Separate Cases Involving Child PornographyRead the Press Release
Two defendants were sentenced this month to long prison terms in separate cases for distributing or creating sexually explicit images of children, announced U.S. Attorney Annette L. Hayes. In the first case, DANNY ZIMMERMAN, 43, a registered sex offender in SeaTac, Washington was sentenced March 15, 2016, to ten years in prison and 20 years of supervised release. ZIMMERMAN was arrested in June 2015, after an investigation traced images of child rape to ZIMMERMAN’s Twitter account and his internet protocol (IP) address.
ZIMMERMAN pleaded guilty in December 2015, to possession of depictions of minors engaged in sexually explicit conduct. According to records filed in the case, between September 2014 and February 2015, Twitter made multiple reports to the National Center for Missing & Exploited Children (NCMEC) about images of child rape uploaded to the internet. The reports resulted in a law enforcement investigation involving Western Washington’s Internet Crimes Against Children (ICAC) Task Force. The investigation revealed that the internet address involved in the distribution of the sexually explicit images was used by ZIMMERMAN. ZIMMERMAN is a registered sex offender with two 1996 convictions for child molestation in the first degree.
In the second case, GREGORY MARK MOLLEY, 54, of Issaquah, Washington was sentenced today to eight years in prison and 15 years of supervised release for receipt of images of minors engaged in sexually explicit conduct. MOLLEY pleaded guilty in December 2015, admitting he used hidden cameras to film children in the bathroom and bedrooms of his home.
Both men were sentenced by U.S. District Judge John C. Coughenour. Judge Coughenour reminded MOLLEY at his sentencing that his conduct was devastating to the victims of his crime.
The MOLLEY case was investigated by the King County Sheriff’s Office (KCSO) and the U.S. Secret Service. The ZIMMERMAN case was investigated by the Internet Crimes against Children Task Force, the Kent Police Department, the King County Sheriff’s Office, and the Department of Homeland Security Investigations.
Both cases were prosecuted by Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is a Senior Deputy King County Prosecutor specially designated to prosecute child exploitation cases in federal court.
These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to 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 www.justice.gov/psc.
Two Men Admit Roles in Three Year, Cross-Country Insider Trading Scheme That Netted More Than $3.9 MillionRead the Press Release
TRENTON, N.J. - Two day traders today admitted participating in a multi-year insider trading scheme that made over $3.9 million in illicit profits by exploiting material information in violation of confidentiality agreements, U.S. Attorney Paul J. Fishman announced.
Ronald Chernin, 67, of Oak Park, California, and Steven Costantin, 55, of Farmingdale, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to separate informations charging them each with one count of conspiracy to commit securities fraud and one count of securities fraud.
According to documents filed in this case and statements made in court:
Chernin and Costantin worked as day traders for Costantin’s brother-in-law, Steven Fishoff, 58, of Westlake Village, California. Between May 2010 and August 2013, Chernin, Costantin, and Fishoff, as well as a business associate referred to as “Trader A,” expressed interest in participating in numerous stocks offerings by publicly traded companies.
Chernin, Costantin, and other members of the day trading operation falsely characterized their trading entities as legitimate, full-service financial management firms with as much as $150 million in assets under management, in order to increase the likelihood that the investment bankers would solicit them to participate in the stock offerings.
Before providing confidential information concerning the companies or the terms of the proposed sales, the investment bankers first required that Chernin, Costantin, Fishoff, Trader A, and their associated trading entities, enter into confidentiality or “wall-crossing” agreements whereby they agreed not to disclose or trade on the inside information and were brought “over the wall” for the narrow purpose of determining whether to purchase the offered securities.
Instead, Chernin, Costantin, and Fishoff violated the confidentiality agreements by directly or indirectly tipping each other and others with the inside information concerning the stock offerings; short selling the issuers’ stock in anticipation of a drop in price when the stock offerings were disclosed to the public; and covering their short positions once the stock offerings were disclosed. Additionally, Fishoff tipped his friend, Paul Petrello, 54, of Boca Raton, Florida, and another friend identified in the documents as “CC-1.”
By trading on the nonpublic information, Chernin, Costantin, and their conspirators gained more than $3.9 million in illicit profits over the course of the three-year scheme. Chernin and Costantin shared 50 percent of their profits with Fishoff.
The conspiracy count to which Chernin and Costantin each pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The securities fraud count carries a maximum potential penalty of 20 years in prison and a $5 million fine. Chernin and Costantin are both scheduled for sentencing on July 7, 2016.
Petrello previously pleaded guilty to his role in the scheme and is scheduled for sentencing on May 25, 2016. Fishoff has been indicted for his involvement in the insider trading scheme. The charges and allegations contained in the indictment are merely accusations, and Fishoff is presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation leading to today’s guilty pleas. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Sanjay Wadhwa.
The government is represented by Assistant U.S. Attorneys Shirley U. Emehelu and Nicholas P. Grippo of the Criminal Division of the U.S. Attorney’s Office in Newark, as well as Acting Chief Barbara Ward and Assistant U.S. Attorney Sarah Devlin of the Office’s Asset Forfeiture and Money Laundering Unit.
Today’s pleas are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov
Defense counsel:
Ronald Chernin – John P. Lacey, Esq., Roseland, NJ
Steven Costantin – Scott A. Resnik, Esq., New York, NY
Two Inmates at Lewisburg Federal Prison Charged with AssaultRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that two inmates at the United States Penitentiary, Lewisburg, Pennsylvania, have been indicted today by a federal grand jury in Scranton for assaulting another inmate with a homemade weapon.
According to United States Attorney Peter Smith, the superseding indictment charges Kyle Stevens, age 25, and James Sweeney, age 39, with assault with a dangerous weapon and aiding and abetting. The charges stem from an incident in February 2016 in which Stevens and Sweeney allegedly assaulted another inmate with a sharpened piece of metal commonly known as a “shank.” The superseding indictment also charges Stevens with possessing contraband in prison.
Stevens was previously indicted by a federal grand jury in July 2016, for assaulting an inmate in February 2015. The superseding indictment issued today by the grand jury adds the new assault to the previous indictment.
The investigations were conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Prosecution is assigned to Assistant United States Attorney Robert J. O’Hara.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Twelve Detroit Public Schools Principals, Assistant Superintendent and Vendor Charged with BriberyRead the Press Release
Criminal charges were filed today against 12 current or former Detroit Public Schools principals, an assistant superintendent and a vendor in an illegal bribery and kickback scheme, announced U.S. Attorney Barbara L. McQuade.
Joining McQuade in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Jarod J. Koopman, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation.
At the center of the scheme was Norman Shy, 74, of Franklin, owner of Allstate Sales, a DPS vendor of school supplies. The charges allege that each of the school officials conspired with Shy to knowingly certify and submit fraudulent invoices to DPS, causing DPS to pay Shy for goods that were never delivered. Invoiced supplies included auditorium chairs, supplemental teaching materials and raised line paper. In exchange, Shy paid bribes and kickbacks, using a portion of the payments he received from DPS from the fraudulent invoices. The scheme began in 2002 and continued until January 2015.
DPS principals had the primary authority for selecting vendors from a list approved by DPS and for certifying that invoiced goods were received. The principals accepted bribes and kickbacks in various forms, including prepaid gift cards, cash and checks payable directly to them or to third parties or companies for their benefit. The total amount of bribes and kickbacks that Shy paid to the 13 school officials was approximately $908,518. In exchange, Shy and his company received approximately $2.7 million dollars from DPS based on payments for fraudulent invoices.
The 13 charging documents, known as criminal informations, charge each defendant with one count of Conspiracy to Commit Federal Program Bribery as follows:
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Norman Shy (vendor), 74, of Franklin, and Clara Flowers, 61, of Detroit ($324,785); Flowers is the former principal of Henderson Academy and current Assistant Superintendent of DPS’ Office of Specialized Student Services. Additionally, Shy and Flowers were each charged with one count of Tax Evasion for failing to report income.
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Beverly Campbell, 66, of Southfield ($50,000), former principal of Rosa Parks School and Greenfield Union Elementary-Middle School;
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Clara Smith, 67, of Southfield ($194,000), current principal of Thirkell Elementary-Middle School;
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Germla Johnson, 56, of Detroit ($22,884), former principal of Charles R. Drew Academy and current principal of Earhart Elementary-Middle School;
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James Hearn, 50, of West Bloomfield ($11,500), current principal of Marcus Garvey Academy;
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Josette Buendia, 50, of Garden City ($45,775), current principal of Bennett Elementary School;
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Nina Graves-Hicks, 52, of Detroit ($27,385), former principal of Davis Aerospace Technical High School;
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Ronald Alexander, 60, of Detroit ($23,000), current principal of Charles L. Spain Elementary-Middle School;
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Ronnie Sims, 55, of Albion ($58,519), former principal of Fleming Elementary and Brenda Scott Middle School;
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Stanley Johnson, 62, of Southfield ($84,170), current principal of Hutchinson Elementary;
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Tanya Bowman, 48, of Novi ($12,500), former principal of Osborn Collegiate Academy of Mathematics, Science and Technology;
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Tia’von Moore-Patton, 46, of Farmington Hills ($4,000), current principal of Jerry L. White Center High School;
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Willye Pearsall, 65, of Warren ($50,000), former principal of Thurgood Marshall Elementary School.
“It is a heavy blow to public confidence when so many school principals are charged with bribery,” McQuade said. “Public officials should take note that while it may seem easy to take bribes when they are offered, officials who betray their public trust will eventually get caught and will face the consequences.”
"As a former educator, this case strikes to my very core," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "To enrich oneself at the expense of school children is bad enough, but to misapply public funds intended to educate kids in a district where overall needs are so deep, funding sources are so strained, and the need for better education is so crucial, is reprehensible and an insult to those educators working every day to make a better future for our children."
"IRS-CI Special Agent in Charge Koopman stated, “Principals are in positions of public trust and have an obligation to act in the best interest of their schools and the children for which they represent. Those principals, who line their own pockets through fraudulent means, violate this trust by making the conscious decision to deprive teachers of the very resources necessary to provide quality education. It is extremely disappointing when greed and selfishness deteriorate the communities and future possibilities of our youth.”
Each of the 14 defendants face up to five years in prison and fines of up to $250,000 on the charge of Conspiracy to Commit Federal Program Bribery. In addition, Shy and Flowers each face up to five years in prison and fines up to $100,000, together with the costs of prosecution on the Tax Evasion charge.
This case was investigated by agents of the FBI and IRS-CI. This case is being prosecuted by Assistant United States Attorneys J. Michael Buckley and Frances Carlson.
The FBI Detroit Area Corruption Task Force (DACTF) is led by the FBI Detroit Field Office, and consists of Special Agents and law enforcement officers with the FBI Detroit; the Detroit Police Department; the Michigan State Police; the Michigan Attorney General’s Office; the Internal Revenue Service – Criminal Investigation Division; the U.S. Department of Housing and Urban Development–Office of Inspector General; the U.S. Environmental Protection Agency–Office of Inspector General; the U.S. Department of Transportation–Office of Inspector General; the U.S. Department of Homeland Security–Office of Inspector General; the U.S. Department of Education–Office of Inspector General; and the U.S. Department of Labor–Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
A Criminal Information 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.
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Terminix Companies Agree to Pay $10 Million for Applying Restricted-Use Pesticide to Residences in the U.S. Virgin IslandsRead the Press Release
All TERMINIX Locations Have Ceased Using Pesticides Containing Methyl Bromide in the United States. Employees Illegally Applied Pesticides Containing Methyl Bromide to Residences in St. John, St. Croix, and St. Thomas, U.S.V.I.
WASHINGTON – The pest control corporation Terminix International Company LP TERMINIX LP) and its U.S. Virgin Islands operation Terminix International USVI LLC(TERMINIX, USVI), were charged today with multiple violations of the Federal Insecticide, Fungicide and Rodenticide Act for illegally applying fumigants containing methyl bromide in multiple residential locations in the U.S. Virgin Islands, including the condominium resort complex in St. John where a family of four fell seriously ill last year after the unit below them was fumigated, the Department of Justice and the Environmental Protection Agency (EPA) announced today.
In a plea agreement, TERMINIX LP and TERMINIX, USVI agreed to pay a total of $10 million in criminal fines, community service and restitution payments. Except for completing one government contract at the Port of Baltimore, TERMINIX LP has stopped using pesticides containing methyl bromide in the United States and U.S. Territories. Under the agreement TERMINIX, USVI will pay $5 million in fines and $1 million in restitution to the EPA for response and clean-up costs at the St. John resort. TERMINIX LP will pay a fine of $3 million and will fund a $1 million community service project in the U.S.V.I. The plea agreement is subject to approval by the district court.
“When misused, highly toxic pesticides can have catastrophic consequences, and that’s why those who are certified to apply them must do so responsibly and lawfully,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The facts in this case show the Terminix companies knowingly failed to properly manage their pest control operations in the U.S. Virgin Islands, allowing pesticides containing methyl bromide to be applied illegally and exposing a family of four to profoundly debilitating injuries. While on probation the companies are required to demonstrate to the EPA changes to their internal management and systems to ensure this type of tragedy does not reoccur.”
“This prosecution demonstrates the importance of complying with environmental laws and regulations,” said U.S. Attorney Ronald W. Sharpe of the District of the Virgin Islands. “Tragically, the defendants' failure to do so resulted in catastrophic injuries to the victims and exposed many others to similar harm. The United States Attorney’s Office is committed to the enforcement of environmental laws and will take all necessary steps to hold those who violate these laws criminally accountable and to protect residents and visitors of the Virgin Islands.”
“When you break a law that protects public health, there are real victims and real consequences, as this case tragically shows,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “This incident illustrates how important it is for EPA to enforce environmental laws and hold anyone accountable for endangering our safety. Today’s charges should send a clear message to the industry, and directs important funds toward training programs to help ensure this can’t happen again.”
In 1984 EPA banned the indoor use of methyl bromide products. The few remaining uses are severely restricted. Pesticides containing methyl bromide in the U.S. are restricted-use due to their acute toxicity, meaning that they must only be applied by a certified applicator. Health effects of acute exposure to methyl bromide are serious and include central nervous system and respiratory system damage. Pesticides can be very toxic and it is critically important that they be used only as approved by EPA.
After the government began its investigation, TERMINIX LP voluntarily ceased its use of methyl bromide in the U.S. and in U.S. territories, except for one remaining supervised government contract.
According to the information filed in federal court in the U.S. District Court of the Virgin Islands today, the defendants knowingly applied restricted-use fumigants at the Sirenusa resort in St. John for the purpose of exterminating household pests on or about Oct. 20, 2014, and on or about March 18, 2015. The companies were also charged with applying the restricted-use pesticide in 12 residential units in St. Croix and one additional unit in St. Thomas between September 2012 and February 2015.
According to the factual basis of the plea agreement, TERMINIX, USVI provided pest control services in the Virgin Islands including fumigation treatments for Powder Post Beetles, a common problem in the islands. These fumigation treatments were referred to as “tape and seal” jobs, meaning that the affected area was to be sealed off from the rest of the structure with plastic sheeting and tape prior to the introduction of the fumigant. Customers were generally told that after a treatment persons could not enter the building for a two to three-day period.
On or about March 18, 2015, two employees of TERMINIX, USVI, performed a fumigation pesticide treatment at the lower rental unit of Building J at Sirenusa in St. John. The upper unit in Building J was occupied by a Delaware family of four. Via various means, methyl bromide from the lower unit migrated to the upper unit of Building J, causing serious injury to and hospitalization of the entire family.
EPA regional staff responded immediately to the incident in St. John, securing the scene, performing testing and addressing the contamination. Within days, the EPA sent out a pesticide use warning to pesticides applicators in Puerto Rico and the U.S. Virgin Islands, followed by a broader pesticide notice to regulators in all states, the British Virgin Islands, and to other Caribbean and Latin American countries.
As a special condition of the companies’ three year probation, the defendants shall make good faith efforts to resolve past and future medical expenses for the family through separate civil proceedings. If they do not do so before the end of the probationary period, they would be subject to an order of restitution and the government may petition the District Court to reopen the sentencing proceedings to seek recovery of past and future medical and other expenses.
The $10 million penalty includes $8 million in criminal fines, $1 million in restitution to the EPA for response and clean-up costs, and a $1 million community service payment to the National Fish and Wildlife Foundation for the purpose of engaging a third party to provide training to pesticide applicators in the U.S. Virgin Islands.
The case was investigated by EPA Criminal Investigation Division working worked cooperatively with the Virgins Islands government and, the Agency for Toxic Substances and Disease Registry.
Senior Litigation Counsel Howard P. Stewart of the Department of Justice, Environmental Crimes Section, and Assistant U.S. Attorney Kim L. Chisholm of the District of the Virgin Islands are prosecuting the case with assistance of Patricia Hick, EPA Region II Regional Criminal Enforcement Counsel.
The investigation is ongoing.
For more information about EPA’s pesticide program and its requirements, visit www.epa.gov/pesticides/.
For more information on methyl bromide, visit www.epa.gov/region2/methyl-bromide.pdf
Tax Service Business Owner and Co-Defendant Pled Guilty for Their Participation in a Stolen Identity Tax Refund Fraud SchemeRead the Press Release
A tax service business owner and co-defendant pled guilty for their participation in a stolen identity tax refund fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Johny Wolf Jasmin, 32, of Boca Raton, pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, and one count of aggravated identity theft in violation of Title 18, United States Code, Sections 1028A and 2. Carneisha Patrice Mitchell, 31, of Miami, pled guilty to one count of theft of government funds, in violation of Title 18, United States Code, Sections 641 and 2. At sentencing, the defendants each face up to ten years in prison for the conspiracy and theft of government money charges. Jasmin also faces a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
According to court documents, Jasmin owned and operated a tax service business called Wolf Vision, Inc. at an address located in Hollywood, Florida. During the course of the investigation, law enforcement learned three separate Electronic Filing Identification Numbers (EFINs) were used to file false and fraudulent tax returns from Jasmin’s business. One of those EFINs was assigned to Mitchell. Based upon this information, law enforcement executed a search warrant at Jasmin’s business and recovered computers, thumb drives, prepaid debit cards, and numerous documents that contained over 2,100 names, dates of birth, and social security numbers that belonged to living and deceased individuals.
In fact, a review of Jasmin’s personal income tax for the 2014 tax year showed that Jasmin obtained the name, date of birth and social security number of a child who had passed away and later used that information to fraudulently claim the deceased child as one of his dependents.
In addition, law enforcement learned that an IRS treasury tax refund check in the name of a deceased individual was deposited into Mitchell’s personal checking account. Thereafter, Mitchell used the money from the IRS treasury check for her personal use.
As a result of Jasmin and his co-conspirator’s fraudulent conduct, over 220 false and fraudulent federal income tax returns were filed with the IRS using stolen personal identifying information (PII) of living and deceased individuals. Further, over $550,000 in tax refunds were sought from the false and fraudulent income tax returns filed from Jasmin’s tax business.
Sentencing for both defendants is scheduled for June 3, 2016 before U.S. District Judge William J. Zloch.
Mr. Ferrer commended the investigative efforts of FBI, IRS-CI and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
TERMINIX Companies Agree to Pay $10 Million for Applying Restricted-Use Pesticide to Residences in the U.S. Virgin IslandsRead the Press Release
The pest control corporation Terminix International Company LP (TERMINIX LP) and its U.S. Virgin Islands operation Terminix International USVI LLC (TERMINIX, USVI), were charged today with multiple violations of the Federal Insecticide, Fungicide and Rodenticide Act for illegally applying fumigants containing methyl bromide in multiple residential locations in the U.S. Virgin Islands, including the condominium resort complex in St. John where a family of four fell seriously ill last year after the unit below them was fumigated, the Department of Justice and the Environmental Protection Agency (EPA) announced today.
In a plea agreement, TERMINIX LP and TERMINIX, USVI agreed to pay a total of $10 million in criminal fines, community service and restitution payments. Except for completing one government contract at the Port of Baltimore, TERMINIX LP has stopped using pesticides containing methyl bromide in the United States and U.S. Territories. Under the agreement TERMINIX, USVI will pay $5 million in fines and $1 million in restitution to the EPA for response and clean-up costs at the St. John resort. TERMINIX LP will pay a fine of $3 million and will fund a $1 million community service project in the U.S.V.I. The plea agreement is subject to approval by the district court.
“When misused, highly toxic pesticides can have catastrophic consequences, and that’s why those who are certified to apply them must do so responsibly and lawfully,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The facts in this case show the Terminix companies knowingly failed to properly manage their pest control operations in the U.S. Virgin Islands, allowing pesticides containing methyl bromide to be applied illegally and exposing a family of four to profoundly debilitating injuries. While on probation the companies are required to demonstrate to the EPA changes to their internal management and systems to ensure this type of tragedy does not reoccur.”
“This prosecution demonstrates the importance of complying with environmental laws and regulations,” said U.S. Attorney Ronald W. Sharpe of the District of the Virgin Islands. “Tragically, the defendants' failure to do so resulted in catastrophic injuries to the victims and exposed many others to similar harm. The United States Attorney’s Office is committed to the enforcement of environmental laws and will take all necessary steps to hold those who violate these laws criminally accountable and to protect residents and visitors of the Virgin Islands.”
“When you break a law that protects public health, there are real victims and real consequences, as this case tragically shows,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “This incident illustrates how important it is for EPA to enforce environmental laws and hold anyone accountable for endangering our safety. Today’s charges should send a clear message to the industry, and directs important funds toward training programs to help ensure this can’t happen again.”
In 1984 EPA banned the indoor use of methyl bromide products. The few remaining uses are severely restricted. Pesticides containing methyl bromide in the U.S. are restricted-use due to their acute toxicity, meaning that they must only be applied by a certified applicator. Health effects of acute exposure to methyl bromide are serious and include central nervous system and respiratory system damage. Pesticides can be very toxic and it is critically important that they be used only as approved by EPA.
After the government began its investigation, TERMINIX LP voluntarily ceased its use of methyl bromide in the U.S. and in U.S. territories, except for one remaining supervised government contract.
According to the information filed in federal court in the U.S. District Court of the Virgin Islands today, the defendants knowingly applied restricted-use fumigants at the Sirenusa resort in St. John for the purpose of exterminating household pests on or about Oct. 20, 2014, and on or about March 18, 2015. The companies were also charged with applying the restricted-use pesticide in 12 residential units in St. Croix and one additional unit in St. Thomas between September 2012 and February 2015.
According to the factual basis of the plea agreement, TERMINIX, USVI provided pest control services in the Virgin Islands including fumigation treatments for Powder Post Beetles, a common problem in the islands. These fumigation treatments were referred to as “tape and seal” jobs, meaning that the affected area was to be sealed off from the rest of the structure with plastic sheeting and tape prior to the introduction of the fumigant. Customers were generally told that after a treatment persons could not enter the building for a two to three-day period.
On or about March 18, 2015, two employees of TERMINIX, USVI, performed a fumigation pesticide treatment at the lower rental unit of Building J at Sirenusa in St. John. The upper unit in Building J was occupied by a Delaware family of four. Via various means, methyl bromide from the lower unit migrated to the upper unit of Building J, causing serious injury to and hospitalization of the entire family.
EPA regional staff responded immediately to the incident in St. John, securing the scene, performing testing and addressing the contamination. Within days, the EPA sent out a pesticide use warning to pesticides applicators in Puerto Rico and the U.S. Virgin Islands, followed by a broader pesticide notice to regulators in all states, the British Virgin Islands, and to other Caribbean and Latin American countries.
As a special condition of the companies’ three year probation, the defendants shall make good faith efforts to resolve past and future medical expenses for the family through separate civil proceedings. If they do not do so before the end of the probationary period, they would be subject to an order of restitution and the government may petition the District Court to reopen the sentencing proceedings to seek recovery of past and future medical and other expenses.
The $10 million penalty includes $8 million in criminal fines, $1 million in restitution to the EPA for response and clean-up costs, and a $1 million community service payment to the National Fish and Wildlife Foundation for the purpose of engaging a third party to provide training to pesticide applicators in the U.S. Virgin Islands.
The case was investigated by EPA Criminal Investigation Division working cooperatively with the Virgins Islands government and, the Agency for Toxic Substances and Disease Registry.
Senior Litigation Counsel Howard P. Stewart of the Department of Justice, Environmental Crimes Section, and Assistant U.S. Attorney Kim L. Chisholm of the District of the Virgin Islands are prosecuting the case with assistance of Patricia Hick, EPA Region II Regional Criminal Enforcement Counsel.
The investigation is ongoing.
For more information about EPA’s pesticide program and its requirements, visit www.epa.gov/pesticides/.
Suspected Smuggler Slams into Semi-Truck, Two Undocumented Immigrants KilledRead the Press Release
Assistant U. S. Attorney Lara A. Stingley (619) 546-8403 or Assistant U.S. Attorney Brandon J. Kimura (619) 546-9614
NEWS RELEASE SUMMARY – March 29, 2016
EL CENTRO – A suspected alien smuggler who said she “panicked” and hit the accelerator when U.S. Border Patrol agents attempted to pull her over has been arrested and charged in connection with a subsequent crash that killed two of her customers, left another brain dead, and another paralyzed.
Lydiana Castro, a United States citizen, was arrested after the crash on March 23, 2016 near Andrade, California, and charged with illegally transporting aliens. In federal court in El Centro today, she elected to forgo a detention hearing and remain in custody.
According to a federal complaint, a Border Patrol agent saw several people running to a Dodge Durango at a gas station at the intersection of Sidewinder Road and Interstate 8 in Andrade, California. The agent alerted colleagues via radio.
When another Border Patrol agent in a marked vehicle saw the Durango, he activated his lights and attempted to stop the vehicle, which was being driven by Castro. At first the Durango began to slow down and pull over, but suddenly the vehicle accelerated and reached a high rate of speed. Castro lost control of the Durango and crashed into a semi-truck that was traveling westbound on Interstate 8. The Durango became entangled in the semi-truck trailer’s frame and the truck driver pulled onto the shoulder.
Border Patrol agents found five undocumented Mexican nationals in the Durango. Two men, Gustavo Sanchez-Orta and Jose Magdiel May-Gonzalez, were pronounced dead at the scene of the crash. Castro was taken to a hospital in Yuma, Arizona. The three men had more extensive injuries and had to be transported to a hospital in Phoenix, Arizona. They were identified as Miguel Angel May-Us, Rogelio Dzul-Castro and Javier Sanchez-Gonzalez.
According to the complaint, Castro told a Homeland Security Investigations agent that she picked up the undocumented immigrants at the gas station and drove away toward Yuma. The complaint said Castro stated that she panicked when she saw Border Patrol and she “pressed on the gas” and did not know what to do. She said she remembers hitting the semi-truck but not much after that.
In court today, Assistant U.S. Attorney Kyle Martin told U.S. Magistrate Judge Peter Lewis that Dzul-Castro is brain dead and on life support; Sanchez-Gonzalez is paralyzed from the waist down; and May-Us is in and out of consciousness.
A status hearing is scheduled for this Friday, April 1 at 10:00 a.m. before Judge Lewis.
DEFENDANTS Case Number 16MJ8265
Lydiana Castro Age: 30 Calexico, CA
SUMMARY OF CHARGES
Illegal Transportation of Aliens – Title 8, U.S.C., Section 1324(a)(l)(A)(ii)
Maximum penalty: 10 years in prison
AGENCY
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations
U.S. Border Patrol
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Stanislaus County District Attorney’s Office Receives Award for Contributions to the Mission of the Department of JusticeRead the Press Release
FRESNO, Calif. — United States Attorney Benjamin B. Wagner is pleased to announce the 2015 winner of the Eastern District of California Outstanding Law Enforcement Agency Award in the Fresno Division. This is one of four awards presented annually to a law enforcement agency and an officer in each of the Sacramento and Fresno divisions of the Eastern District of California to recognize outstanding collaboration between federal, state and local law enforcement in addressing criminal conduct in this region.
The 2015 Fresno division’s Outstanding Law Enforcement Agency Award goes to the Stanislaus County District Attorney’s Office for its participation in task forces that resulted in a number of significant prosecutions involving violent crime and fraud in the mortgage industry.
U.S. Attorney Wagner stated: “Our success is only ever possible because of dedicated, hard-working law enforcement officers in both federal and state law enforcement. The investigators with the Stanislaus County District Attorney’s Office deserve particular recognition for their skill, diligence, and spirit of cooperation.”
“District Attorney Birgit Fladager said, “We truly value the partnership we have with the U.S. Attorney’s Office and are grateful for this recognition. Serving crime victims and holding criminals accountable can best be done when working together.”
Two investigators merit particular mention this year: Lieutenant Froilan Mariscal who worked on the gang task force that investigated the notorious, violent gang Nuestra Familia, and Investigator Glenn Gulley who worked on the FBI’s Mortgage Fraud Task Force while it was in operation and continues to work extensively with our office.
Lt. Mariscal spearheaded a long-term and complex investigation of the Nuestra Familia gang that resulted in a RICO prosecution and a 20-year sentence for the lead defendant. So far, nine co-defendants have pleaded guilty. The case involved a series of assaults executed in jail, drug trafficking, an armed home invasion and carjacking, and a gang fight involving a shooting. Lt. Mariscal was relentless in his pursuit of this investigation and brought with him knowledge, gang expertise, good judgment, and dogged determination.
Investigator Gulley currently has several significant fraud cases pending with the office. He has comprehensive knowledge of real estate fraud, including industry practices and case-specific knowledge of pertinent real estate transactions. Gulley investigated the case against Xue Heu, who was a serial investment fraudster. He posed as a government representative to purportedly sell distressed properties to unwitting investors. Heu was indicted for defrauding victims, and was indicted in the Western District of Texas for a separate real estate investment fraud scheme. Investigator Gulley coordinated the case with other investigators in Texas, marshaled evidence to obtain a guilty plea in the Eastern District of California case, and also found the time and energy to uncover additional criminal conduct Heu perpetrated while out on bond. Investigator Gulley’s determination resulted in a prison sentence of over five years, as well as an additional state court conviction for Heu’s criminal conduct while on bail.
St. Thomas Man Sentenced to 10 Months in Prison for Drug TraffickingRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez sentenced Kasimir Asim McClean, 37, of St. Thomas, on March 28, 2016, to 10 months’ imprisonment and three years of supervised release for possession with intent to distribute approximately four kilograms of marijuana, United States Attorney Ronald W. Sharpe announced today. Judge Gomez also ordered McClean to pay a special assessment of $100 and perform 400 hours of community service.
On November 23, 2015, McClean pleaded guilty to possession with intent to distribute marijuana. According to the plea agreement, McClean was arrested on September 26, 2015, when he arrived at the Cyril E. King Airport, St. Thomas, U.S. Virgin Islands, aboard a Delta Airlines flight from Atlanta, Georgia. As part of his plea, McClean admitted that U.S. Customs and Border Protection officers, with the assistance of a canine, found approximately four kilograms of marijuana in his carry-on luggage.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and prosecuted by Assistant United States Attorney Everard E. Potter.
Springdale Man Sentenced to 50 Years in Federal Prison for Child Pornography OffensesRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Julian Rivera, age 21, of Springdale, was sentenced today to 600 months in federal prison without the possibility of parole and twenty five years of supervised release on one count of Production of Child Pornography and one count of Possession of Child Pornography. The sentencing hearing took place before the Honorable Timothy L. Brooks in the United States District Court in Fayetteville.
According to court records, in February, 2015, the Springdale Police Department was contacted by a family member of a minor female reporting that a Hispanic male attempted to kidnap and sexually assault her as she walked home from school. After a subsequent investigation, the Springdale Police Department arrested the defendant, Julian Rivera. At the time of his arrest, Rivera’s IPhone was seized pursuant to a search warrant. A subsequent forensic examination of his IPhone revealed numerous videos of the defendant masturbating in front of and sexually assaulting minors, the youngest of which was approximately five (5) years of age. Rivera was indicted by a federal grand jury in October, 2015 and pleaded guilty to the charge in December, 2015.
This case was investigated by the Internet Crimes Against Children Task Force and the Springdale Police Department. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), 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 www.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Settlements Totaling $84,000 Reached with Five Individuals Who Committed FraudRead the Press Release
United States Attorney Randolph J. Seiler announced that five individuals previously convicted of Conspiracy to Commit Theft of Federal Funds, have entered into agreements to pay civil penalties pursuant to the False Claims Act (FCA), 31 U.S.C. §§ 3729-3733. Regardless of criminal penalties, the FCA imposes civil liability on persons who knowingly submit false claims to obtain federal funds. Pursuant to the FCA, persons who submit a false claim must pay to the United States a civil penalty of not less than $5,500, and not more than $11,000 for each false claim, plus three times the amount of damages which the government sustained.
From May through December 2009, Samone Milk, Heather Garcia, Joe Garcia, Wayne Cortier, and Robert Running Bear took federal funds belonging to the Oglala Sioux Tribe’s Low Income Home Energy Assistance Program (LIHEAP) to which they were not entitled. Using their positions as tribal employees, Milk and Heather Garcia drafted fake invoices for work purportedly completed by contractors then shared the funds with those contractors.
In 2014, restitution of $83,585 (joint and severally) was ordered to be paid to the tribe’s LIHEAP program (criminal case 13CR50130). The FCA civil settlements finalized in March 2016 call for payments over a period of years to the United States as follows:
Samone Milk, $30,000 (monthly payments for 29 years);
Heather Garcia, $20,000 (monthly payments for 18.2 years);
Joe Garcia, $20,000 (monthly payments for 18.2 years);
Wayne Cortier, $10,000 (monthly payments for 8.7 years);
Robert Running Bear, $4,000 (monthly payments for 3.5 years).
The United States Attorney’s Office places a high priority on criminal and civil enforcement in cases involving all types of fraud committed against federal programs, and works with various law enforcement agencies to identify and investigate these matters.
This investigation was conducted by the U.S. Department of Health and Human Services, Office of Investigations. Assistant U.S. Attorney Ann M. Hoffman prosecuted the criminal case. Assistant U.S. Attorney Cheryl Schrempp DuPris finalized the civil settlements.
Roofing Company Owner Sentenced for Charges Connected to Employee's Fatal FallRead the Press Release
PHILADELPHIA - James J. McCullagh, 60, of Meadowbrook, PA, was sentenced today to 10 months in prison for charges related to the fatal fall of an employee. McCullagh, who owns James J. McCullagh Roofing, pleaded guilty on December 9, 2015, to four counts of making false statements, one count of obstruction of justice, and one count of willfully violating an Occupational Safety and Health Administration (OSHA) regulation causing death to an employee. In addition to the prison term, U.S. District Court Judge Nitza I. Quinones Alejandro ordered one year of supervised release, and a $510 special assessment.
On June 21, 2013, one of McCullagh’s employees was killed after falling approximately 45 feet from a roof bracket scaffold while performing roofing work for McCullagh. McCullagh, failed to provide fall protection equipment to his employees. In connection with the OSHA investigation of the fatality, McCullagh attempted to cover up his failure to provide fall protection by falsely stating, on four occasions, that he had provided fall protection equipment, including safety harnesses, to his employees. McCullagh knew that he had not provided fall protection to his employees and none of his employees had safety harnesses or any other form of fall protection. McCullagh told an OSHA Compliance Safety and Health Officer that his employees had been wearing safety harnesses tied off to an anchor point when he saw them earlier in the day prior to the fall. McCullagh also directed other employees to falsely state that they had fall protection, including safety harnesses, on the day of the fall.
The case was investigated by the United States Department of Labor-Office of Inspector General Labor Racketeering and Fraud Investigations and the Occupational Safety and Health Administration, with assistance from the U.S. Department of Labor's Occupational Safety and Health Administration and Office of Inspector General. It is being prosecuted by Assistant United States Attorney Mary Kay Costello.
Rapid City Man Pleads Not Guilty to Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Cody Reddy, age 22, was indicted on January 26, 2016. Reddy appeared before U.S. Magistrate Judge Daneta Wollmann on March 25, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Reddy failing to register and update his registration as a convicted sex offender between December 22, 2015, and January 26, 2016, at Rapid City.
The charge is merely an accusation and Reddy is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Reddy was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for May 31, 2016.
Rapid City Man Indicted on Multiple Fraud ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a former auditor and fraud investigator for the South Dakota Department of Revenue has been indicted by a federal grand jury for Conspiracy, Wire Fraud, Bank Fraud, Money Laundering, and Tampering.
Steven Arthur Knigge, 69, of Rapid City, was indicted on March 22, 2016, and appeared before U.S. Magistrate Judge Daneta Wollmann on March 25, 2016. He pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 30 years of imprisonment and/or a $500,000 fine, followed by 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges Knigge with receiving funds fraudulently stolen from the bank accounts of unsuspecting depositors in other States. Thereafter, Knigge transferred most, but not all, of the funds either to individuals in other States or out of the country. Following an interview of him conducted by Internal Revenue Service and Federal Bureau of Investigation Special Agents, Knigge, who had used his South Dakota Department of Revenue computer to conduct some of the transactions, deleted thousands of emails and has been, consequently, charged with tampering with evidence. With the assistance of the South Dakota Attorney General’s Office, the emails were recovered from Knigge’s State computer.
“This is a significant prosecution of a public servant committing fraud against innocent citizens, and also represents a serious breach of trust each South Dakota citizen places in its government employees,” said Seiler.
The charges are merely an accusation and Knigge is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Knigge was released pending trial. A trial date has not been set.
Puerto Rico Man Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
St. Thomas, USVI – On Tuesday, March 29, 2016, Jose Luis Ponce-Pagan, 36, of Puerto Rico, pleaded guilty in federal c ourt on St. Thomas, U.S. Virgin Islands, be for e the Honorable Curtis V. Gomez to conspi racy to possess cocaine wi th the intent to distribute , United States Attorney Ronald W. Sharpe announced today. Sentencing is scheduled for July 28, 2016.
According to the plea agreement filed with the court, between August 30, 2015, and September 3, 2015, Ponce-Pagan knowingly conspired with other individuals to purchase approximately 100 kilograms of cocaine on St. Thomas for distribution in Puerto Rico. He faces a maximum sentence of life in prison and a $10,000,000 fine. Ponce-Pagan remains in custody pending sentencing.
This case is the result of a joint investigation by the U.S. Drug Enforcement Administration, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives and U.S. Customs and Border Protection. It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Puerto Rican Man Arrested for Attempting to Receive Kilogram of Cocaine Through MailRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Omar Aponte Vellon a/k/a Chambo, 29, of Puerto Rico, was arrested and charged by criminal complaint with attempt to possess with intent to distribute 500 grams or more of cocaine. The charge carries a minimum penalty of 5 years and maximum penalty of 40 years in prison and a $5,000,000 fine.Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that, on two separate occasions in March 2016, federal law enforcement officials intercepted a package being shipped from Puerto Rico to a particular residence on the East Side of Buffalo. Each of the two packages contained approximately half a kilogram of cocaine. On March 25, 2016, the defendant accepted delivery of and left the residence with one of the packages, after which he was arrested.
The defendant is being held pending a detention hearing before the Honorable Michael J. Roemer on March 31, 2016.
The criminal complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent In Charges James J. Hunt, and the United States Postal Inspection Service, under the direction of Inspector in Charge Shelly Binkowski.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Pottsboro TX Man Pleads Guilty to Choctaw Nation Casino TheftRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that ALLEN MICHAEL SCOTT, age 22, of Pottsboro, Texas, pled guilty to THEFT BY OFFICERS OR EMPLOYEES OF GAMING ESTABLISHMENT ON INDIAN LANDS, in violation of Title 18, United States Code, Sections 1168(b) and 2.
The Indictment alleged that from on or about February 9, 2015, to on or about February 20, 2015, in the Eastern District of Oklahoma, the defendant, an employee of the Choctaw Nation Casino and Resort, did embezzle, abstract, purloin, willfully misapply and take and carry away in excess of $1,000.00 of moneys belonging to the Choctaw Nation Casino and Resort, an Indian gaming establishment operated by the Choctaw Nation in Indian Country, pursuant to an ordinance or resolution approved by the National Indian Gaming Commission.
The charges arose from an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation.
The statutory range of punishment is up to 20 years imprisonment, up to a $1,000,000.00 fine or both.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Edward Snow represented the United States.
Passaic County, New Jersey, Man Charged with Illegally Possessing Machine GunsRead the Press Release
NEWARK, N.J. –A Ringwood, New Jersey, man will appear in federal court today to face charges that he possessed 17 machine guns, which are illegal under federal law, U.S. Attorney Paul J. Fishman announced.
Mariusz Cebula, 36, is charged by complaint with knowingly possessing machine guns, which are defined as weapons that can shoot more than one shot automatically, without manual reloading, by a single function of the trigger. Cebula was arrested yesterday by federal agents and will appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to the complaint:
On July 17, 2015, law enforcement officers arrived at Cebula’s residence to serve a temporary restraining order on Cebula. Law enforcement officers conducted a search of his residence in furtherance of the temporary restraining order, as well as pursuant to a search warrant and Cebula’s oral consent. The search revealed that Cebula was in possession of approximately 262 high capacity magazines for firearms, as well as dozens of other firearms components, ammunition, accessories and manufacturing tools.
Approximately 17 of the firearms and firearm components that Cebula possessed were later determined to be machine guns under federal law. Of the 17 machine guns recovered from Cebula’s residence, some were found to be operational as automatic weapons, including, but not limited to, the following:
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A 9mm Lugar caliber, STEN Mk II type firearm, assembled using a machine gun receiver of unknown origin and original STEN-type machinegun parts, bearing a mark of identification of “86939,” but bearing no serial number.
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A C.G. Haenel 9mm caliber, MP-41 select-fire machine gun, bearing serial number 2108.
Cebula was also found to be in possession of two short-barreled rifles and one silencer.
The machine gun possession charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge George P. Belsky, and the Ringwood Police Department, under the direction of Chief Joseph Walker, with the investigation leading to the charge. He also thanked the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, for its role in the case.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense Counsel: Miles Feinstein Esq., Clifton, N.J.
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New York City School Guidance Counselor and Union Representative Pleads Guilty to Transportation of Child PornographyRead the Press Release
Earlier today, John Capuano, a New York City school guidance counselor and teacher’s union representative, pled guilty at the federal courthouse in Central Islip, New York, to Transportation of Child Pornography in Interstate and Foreign Commerce. Today’s plea proceeding took place before United States Magistrate Judge Gary R. Brown. At sentencing, Capuano faces a mandatory minimum sentence of five years in prison and a maximum of 20 years.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York.
“Protecting the vulnerable, particularly children, is a priority for law enforcement and this Office,” stated United States Attorney Capers. “This crime was particularly egregious in that Capuano was a school guidance counselor entrusted with ensuring the safety and wellbeing of children while he at the same time was victimizing them by distributing images of child pornography.” Mr. Capers thanked the Department of Homeland Security, Homeland Security Investigations (HSI), for its assistance in the investigation.
As set forth in the charging instruments and the defendant’s plea allocution, in April 2015, an undercover HSI agent, as part of an ongoing effort to locate individuals sharing child pornography, found child pornography images and videos involving children as young as 3-5 years’ old which had been posted by Capuano to a chat room in a publicly available Internet application. After tracing location information for the account used to post the images, law enforcement obtained a search warrant and executed on May 28, 2015, at Capuano’s residence in Valley Stream, New York.
During the search, Capuano spoke with law enforcement personnel following a waiver of his Miranda rights and admitted that he used the Internet application to trade child pornography and posted the images located by the undercover agent. Capuano also identified his personal telephone and his work telephone as a teacher’s union representative as devices he used to access these materials. Capuano was arrested and remains incarcerated.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, 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 www.projectsafechildhood.gov.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Allen Bode is in charge of the prosecution.
The Defendant:
John Capuano
Age: 43
Valley Stream, New YorkE.D.N.Y. Docket No. 15 CR 312 (DRH)
Muskogee Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that CHARLES RAY BENEFIELD, age 32, of Muskogee, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The charge arose from an investigation by the Federal Bureau of Investigation, Violent Crime Task Force. The defendant was indicted in March, 2016.
The Indictment alleged that on or about December 30, 2015, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
The statutory range of punishment is not more than 10 years imprisonment, up to a $250,000 fine or both.
Assistant United States Attorney Tim Hammer represented the United States.
Muskogee Man Pleads Guilty to Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that CHARLES ALBERT GRINDLE, age 42, of Muskogee, Oklahoma, pled guilty to FAILURE TO REGISTER AS SEX OFFENDER, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3).
The charge arose from an investigation by the United States Marshals Service. The defendant was indicted in March, 2016.
The Indictment alleged that from in or October 2014 to on or about January 26, 2016, in the Eastern District of Oklahoma, and elsewhere, the defendant, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Texas on or about August 25, 1997, for the felony offense of Aggravated Sexual Assault to a Child, traveled in interstate commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
The statutory range of punishment is not more than 10 years imprisonment, up to a $250,000 fine or both.
Assistant United States Attorney Edward Snow represented the United States.