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21 March 2016
L.A.-Area Man Sentenced to over 8 Years in Federal Prison for Two Fraud Schemes, including One that Cost Verizon Wireless $17 MillionRead the Press Release
SAN DIEGO – The owner of a Glendale-based ride-sharing business was sentenced in federal court today to more than eight years in prison in two separate fraud cases, including one involving the sale of more than 30,000 Apple iPhones fraudulently obtained from Verizon Wireless at substantially discounted prices.
Karen “Kevin” Galstian, 38, of Chatsworth, California, was sentenced by U.S. District Judge Barry Ted Moskowitz to 100 months in the scheme against Verizon Wireless that generated illegal profits of more than $13 million, and 87 months for defrauding Bank of America out of almost $700,000. The sentences are to run concurrently.
Judge Moskowitz also ordered Galstain to pay $17 million in restitution to Verizon and more than $200,000 in restitution to Bank of America.
Galstian pleaded guilty in November in San Diego to one count of wire fraud, admitting that he committed the offense while on pre-trial release in the case involving Bank of America. In that case, Galstian pleaded guilty in January 2014 to bank fraud.
“This defendant persisted in a multi-million dollar fraud scheme even while preparing to go to prison,” said United States Attorney Eileen M. Decker. “Today’s significant sentence and forfeiting the proceeds of his scheme may be the only meaningful deterrents to this defendant’s criminal conduct.”
As part of the scheme involving the iPhones, Galstian admitted that he used his company, Toro Ride, Inc., to induce Verizon Wireless to provide the business with more than 30,000 iPhones at a substantial discount. He purchased most of the mobile phones – which usually sell for more than $500 – for only 99 cents each in connection with a two-year contract.
Galstian claimed that the phones would be used by drivers for Toro Ride’s ride-sharing service and that Toro Ride, which had only been operating in the Los Angeles area, was poised to expand nationwide. Galstian falsely told Verizon that Toro Ride had received $20 million from investors. When he brokered the deal with Verizon last year, Galstian failed to disclose the he was awaiting sentencing in the bank fraud case and thus would be incarcerated and unavailable to lead the company in the expansion.
As Verizon provided the iPhones that supposedly would be used by Toro Ride’s drivers, Galstian sold the vast majority of the devices to companies engaged in the international re-sale of consumer electronics. Thousands of the iPhones that Verizon shipped to Toro Ride were never used on its network and instead were activated in countries such as Vietnam, Iraq, China and Saudi Arabia.
Galstian fraudulently convinced Verizon to provide him with iPhones worth more than $19.4 million. In less than six months, Galstian generated illegal proceeds of more than $13 million by re-selling the iPhones.
Toro Ride used some of the illicit proceeds derived from iPhone sales to make required monthly payments to Verizon, which enabled Galstian to continue to order thousands of additional iPhones.
In the bank fraud scheme, Galstian orchestrated a conspiracy to defraud Bank of America out of approximately $689,000. As part of the scheme, members of the conspiracy opened over 90 accounts at Bank of America and engaged in a series of transactions that allowed them withdraw funds before Bank of America learned that there were not sufficient funds in the target accounts to cover the withdrawals.
In yet another scheme, Galstain admitted to cashing checks drawn on accounts in which fraudulently-obtained tax returns had been deposited.
Galstian used approximately $2.5 million of the proceeds from the Verizon fraud to purchase several properties, including a penthouse condominium in the Palms Casino in Las Vegas, and a Mercedes S550. The court ordered the forfeiture of various assets obtained by Galstian through the fraud scheme, including real properties in Northridge, Sherman Oaks, Tujunga and Las Vegas, as well as more than $200,000 seized from bank accounts and a number of vehicles.
The investigation into Galstian’s wire fraud scheme against Verizon was conducted by the Federal Bureau of Investigation.
Kodiak Brothers indicted for federal firearm and drug trafficking crimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that, on March 16, 2016, two Kodiak brothers were indicted separately by a federal grand jury, for federal firearm and drug trafficking crimes.
Mark Benton, 49, of Kodiak, Alaska, was named as the sole defendant in an indictment charging him for being a felon in possession of ammunition, for an incident that occurred in Kodiak on January 8, 2016.
David Benton, 55, also from Kodiak, was named as the sole defendant in a separate indictment charging him with being in possession of a controlled substance with the intent to distribute, for an incident that occurred in Kodiak on January 26, 2016.
These charges stem from incidents previously charged by the State of Alaska. Mark Benton is currently charged by the State of Alaska in case 3KO-16-00009 CR with kidnapping, assault, and misconduct involving weapons. David Benton is currently charged by the State of Alaska in case 3KO-16-00033 CR with misconduct involving controlled substances.
The Alaska State Troopers and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Justin Stone and Corrin Laraway Charged with Maintaining Bristol Apartment for Heroin DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Justin Stone, age 24, and Corrin Laraway, age 22, both of Bristol, Vermont have been charged with knowingly and intentionally making their apartment at 51 Woodland Drive, in Bristol, available for use as a place to store and distribute heroin. If convicted, Stone and Laraway each face a maximum possible penalty of up to twenty years in jail and a $500,000 fine under 21 U.S.C. § 856(b).
The Vermont State Police were alerted to the residence of Stone and Laraway in the early morning hours of March 19, 2016 in response to a report of a disturbance coming from the residence. Vermont State Police interacted with both Stone and Laraway at the residence, who reported that they were safe. A short while later, law enforcement received a 911 call indicating that a person, who had been staying at the residence of Stone and Laraway, had been injured. The 911 caller provided the phone number of the injured individual, who was later located by Bristol Rescue and Lincoln Fire Department on the side of Notch Road, in Lincoln. The individual was taken to the hospital for treatment of his injuries.
In light of the 911 call connecting the injured individual to Stone and Laraway’s residence, Vermont State Police returned to the residence but Stone and Laraway were not there. Stone and Laraway were subsequently found at the Motel Six in Colchester where they were apprehended. A subsequent search of the motel room revealed several thousand dollars of U.S. currency as well as heroin. Stone and Laraway were interviewed and both admitted that they had permitted a man to distribute heroin out of their Bristol apartment for the past month. They also admitted that they had transported and left the man on the side of Notch Road in Lincoln the previous night.
The complaint is an accusation only and the defendants are presumed innocent until and unless proven guilty. The sentence against defendants will be advised by the Federal Sentencing Guidelines.
The United States Attorney, Eric Miller, commended the work of the many law enforcement agencies involved in the efforts to apprehend Stone and Laraway, stating, “Today’s charges are the result of first-rate detective work by state, federal, and local agents.” Participating agencies included the Vermont State Police, the Colchester Police Department, the Bristol Rescue and Lincoln Fire Department, and the FBI. Addison County State’s Attorney David Fenster also provided invaluable assistance throughout the investigation. The decision to charge Stone and Laraway in federal court was made in close collaboration with State’s Attorney Fenster.
The government is being represented in this matter by Assistant U.S. Attorneys Heather Ross and Michael Drescher. Elizabeth Quinn of the Federal Public Defender’s Office represents Mr. Stone. Robert Hemley and Amanda Hemley Paulino of Gravel & Shea represent Ms. Laraway.
Justice Department Settles Claims Against Barrios Street Realty Inc. for Discriminating Against U.S. WorkersRead the Press Release
The Justice Department reached a historic settlement agreement today with Barrios Street Realty Inc., a company based in Lockport, Louisiana. The agreement resolves claims that the company and its agent, Jorge Arturo Guerrero Rodriguez, discriminated against U.S. workers by preferring to hire foreign workers under the H-2B visa program.
The department’s investigation found that in July 2014, Barrios Street Realty and Guerrero Rodriguez failed to consider or improperly rejected 73 U.S. workers who applied for positions as sheet metal roofers or laborers, and then solicited foreign workers to fill these positions. The department determined that the company’s applications for foreign workers falsely claimed that its earlier efforts to fill the sheet metal and laborer positions failed to identify qualified U.S. workers. Refusing to consider or hire qualified U.S. workers because of their citizenship violates H-2B regulations and the Immigration and Nationality Act’s (INA) anti-discrimination provision.
Under the settlement, Barrios Street Realty must create a back pay fund of $115,000 to compensate U.S. workers, pay $30,000 in civil penalties and be subject to monitoring for a three-year period. In addition, Barrios Street Realty acknowledged in the agreement that its misuse of the H-2B visa program constituted valid grounds for debarment from the program and agreed to a voluntary debarment prohibiting it from seeking H-2B visa workers or any other classification of non-immigrant visa workers from the Department of Labor’s Employment and Training Administration for a period of three years. This represents the first time the department has obtained a voluntary debarment as a remedy for violating the INA’s anti-discrimination provision.
“Federal law prohibits employers from discriminating against U.S. workers in hiring,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The department is committed to identifying and combating discriminatory hiring preferences that impede the ability of U.S. workers to compete equally for employment.”
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status or national origin in hiring, firing, recruitment or referral, should contact the worker hotline above for assistance.
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC), within the Justice Department’s Civil Rights Division, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits employers from discriminating against workers on the basis of citizenship, immigration status and national origin in hiring, firing, recruiting or referring for a fee, and employment eligibility verification.
For more information about protections against employment discrimination under federal immigration law, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2525, TTY for hearing impaired) or 202-616-5594; email [email protected]; or visit the website at www.justice/gov/crt/about/osc.
Barrios Settlement Agreement
Jamestown Woman Pleads Guilty to Fraud ChargeRead 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 Alicia Wilson, 36, of Jamestown, NY, pleaded guilty to access device fraud before U.S. District Judge Richard J. Arcara. The charge carries a penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Marie Grisanti, who is handling the case, stated that Wilson, an in-home health care aid, applied for credit cards in the names of the elderly couple she cared for. The defendant used the credit cards online and at local retail establishments in Jamestown and Erie, Pennsylvania, and withdrew cash from local banks. Losses suffered by Bank of America, Capital One and Citizen’s Bank totaled more than $25,000.The plea is the result of an investigation by the United States Postal Inspection Service under the direction of Inspector in Charge Shelly Binkowski.
Sentencing is scheduled for June 27, 2016 at 12:30 p.m. before Judge Arcara.Hydroponics Store Owner Sentenced to over 3 Years in Prison for Structuring Cash Deposits and Filing False Tax ReturnsRead the Press Release
FRESNO, Calif. — Branden Adam Eidson, 34, of Turlock, was sentenced today by United States District Judge Dale A. Drozd to three years and one month in prison and ordered to pay $433,205 in restitution for structuring cash transactions and filing false tax returns, United States Attorney Benjamin B. Wagner announced.
According to court documents, Eidson operated a hydroponics equipment and supply business, Hooked Up Hydroponics. Between 2008 and 2010, he filed false federal income tax returns by underreporting approximately $1,244,365 in gross receipts for his business, resulting in a tax loss to the Internal Revenue Service of more than $430,000. In addition, Eidson made multiple cash deposits of $10,000 or less during this same time period in an attempt to prevent his bank from filing Currency Transaction Reports. In total, Eidson made more than $1.5 million in structured cash deposits.
This case was a product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Grant B. Rabenn prosecuted the case.
Haydenville Woman Pleads Guilty to Stealing Social Security BenefitsRead the Press Release
BOSTON – A Haydenville, Mass. woman pleaded guilty today in U.S. District Court in Springfield to stealing more than $45,000 of her deceased mother’s Social Security benefits.
Shirley Warner, 52, pleaded guilty to theft of public money. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 20, 2016.
In July 2010, Warner’s mother died, but her monthly Social Security benefits continued to be directly deposited into a joint bank account in her and Warner’s names. From August 2010 to March 2014, Warner continued to receive her deceased mother’s benefits totaling $45,491.
This case was brought as part of an ongoing effort by the U.S. Attorney’s Office, in partnership with the Social Security Administration, to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died. In the past year, the U.S. Attorney’s Office has prosecuted several similar cases involving a total of more than $1 million in stolen government money.
Earlier this month, Lucy Girard, of Townsend, Mass., pleaded guilty to stealing $208,868 from Social Security and federal housing benefits, and Brian Sandiford, of Jamaica Plain, was sentenced for stealing $70,811 from Social Security from 2010 to 2014.
Next month, Richard Alan Hersey, of Winthrop, will be sentenced for stealing $444,287 in Social Security and federal pension benefits from 1991 to 2015. Hersey pleaded guilty in November 2015.
The charge of theft of public money provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Ft. Drum Civilian Pleads Guilty to Sexual Exploitation of A MinorRead the Press Release
SYRACUSE, NEW YORK – Brok Chase, 29, of Ft. Drum, New York pled guilty today to all four (4) counts of a criminal information alleging he made images of a six year old victim engaging in sexually explicit conduct, announced United States Attorney Richard S. Hartunian.
The defendant, a civilian, shared a residence with a serving member of the United States Army (who was not involved in the commission of his crimes) when a search warrant was executed there on September 15, 2015. A mobile telephone possessed by the defendant contained the multiple images of the victim engaged in sexually explicit conduct with the defendant.
The defendant faces a maximum sentence of thirty years and a minimum sentence of fifteen years as to each count when he is sentenced on July 22, 2016 in Syracuse, New York. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by Federal Bureau of Investigation ("FBI") Albany Division, Syracuse Resident Agency, with assistance from FBI Louisville, Kentucky, Army CID (Fort Drum, New York), and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Lisa Fletcher.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc.
Former U.S. State Department Employee Sentenced to 57 Months in Extensive Computer Hacking, Cyberstalking and “Sextortion” SchemeRead the Press Release
A former U.S. State Department employee was sentenced today to 57 months in prison for perpetrating a widespread, international e-mail phishing, computer hacking and cyberstalking scheme against hundreds of victims in the United States and abroad.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John A. Horn of the Northern District of Georgia, Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security Service and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office made the announcement.
Michael C. Ford, 36, of Atlanta, was sentenced today by U.S. District Judge Eleanor L. Ross of the Northern District of Georgia. On Dec. 9, 2015, Ford pleaded guilty to nine counts of cyberstalking, seven counts of computer hacking to extort and one count of wire fraud in connection with his ongoing criminal scheme. The names of the victims are being withheld from the public to protect their privacy.
According to the plea document, Ford admitted that between January 2013 and May 2015, while employed by the U.S. Embassy in London, he used various aliases to commit a widespread, international computer hacking, cyberstalking and “sextortion” campaign designed to force victims to provide Ford with personal information as well as sexually explicit videos of others. Ford targeted young females, some of whom were students at U.S. colleges and universities, with a particular focus on members of sororities and aspiring models.
Posing as a member of the fictitious “account deletion team” for a well-known e-mail service provider, Ford sent thousands of phishing e-mails to thousands of potential victims, warning them that their e-mail accounts would be deleted if they did not provide their passwords. Ford admitted he then used the passwords to hack into at least 450 e-mail and social media accounts belonging to at least 200 victims, where he searched for sexually explicit photographs and for victims’ personal identifying information (PII), including their home and work addresses, school and employment information, and names and contact information of family members, among other things. Using both the photos and PII, Ford admitted that he then e-mailed at least 75 victims, threatening to release those photos unless they took and sent him sexually explicit videos of “sexy girls” undressing in changing rooms at pools, gyms and clothing stores.
When the victims refused to comply, threatened to go to the police or begged Ford to leave them alone, Ford escalated his threats, according to the plea agreement. For example, Ford admitted that he wrote in one e-mail “don’t worry, it’s not like I know where you live,” followed by another e-mail with her home address and threatened to post her photographs to an “escort/hooker website” along with her phone number and home address. On several occasions, Ford followed through with his threats, sending his victims’ sexually explicit photographs to family members and friends, according to the plea.
Additionally, at sentencing, the government presented evidence that Ford engaged in a related scheme targeting aspiring models beginning in 2009. Posing as a model scout, Ford convinced young women to send their personal information, to include dates of birth and measurements, as well as topless photos for consideration for fictitious modeling opportunities. During this ruse, Ford obtained topless and partially nude photos from hundreds of women, including several minors. He also attempted to entice a minor to take voyeuristic videos of her peers in her school locker room. Some of his early model-scout victims became the first victims of his charged cyberstalking scheme.
“Michael Ford hacked hundreds of email accounts, particularly targeting young women so he could extort them into sending him sexually explicit images,” said Assistant Attorney General Caldwell. “He preyed on vulnerable victims, leaving them with indelible emotional scars. His sentence is a necessary step in holding him to account for his crimes and helping his victims move forward with their lives.”
“This case unfortunately shows that cyber-stalkers have the ability to torment victims from any corner of the globe,” said U.S. Attorney Horn. “Hopefully, Ford’s victims can be reassured that he will serve a significant sentence for his conduct. Members of the public must be extremely careful about disclosing their logins and passwords to anyone, even when the person on the other end of an e-mail or instant message appears to be legitimate.”
“The Diplomatic Security Service is proud of the hard work of everyone involved in the investigation including our partners at the FBI and the Department of Justice,” said Director Miller. “When a public servant in a position of trust commits crimes like cyberstalking and computer hacking on such a large scale, we will vigorously investigate those crimes and ensure they are brought to justice. We hope that this sentence will provide some closure for the victims.”
“Today’s sentencing of Mr. Ford will not only hold him accountable for his despicable criminal conduct but will also deny him the ability to further victimize others,” said Special Agent in Charge Johnson. “The FBI is proud of the role that it played in bringing this case forward for investigation, apprehension, and federal prosecution and it is hoped that those who were victimized by Mr. Ford will find some relief with this sentencing.”
The Diplomatic Security Service and the FBI investigated the case. Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia prosecuted the case. The Criminal Division’s Office of International Affairs and the U.S. Embassy in London provided assistance in this case.
Florida Audiologist Sentenced to 94 Months in Prison in Multimillion-Dollar Health Care Fraud and Money Laundering SchemeRead the Press Release
A Florida audiologist was sentenced to 94 months in prison today for her role in a multimillion-dollar health care fraud and money laundering scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Miami Regional Office and Special Agent in Charge Paul Wysopal of the FBI’s Tampa, Florida, Field Office made the announcement.
Terri L. Schneider, 57, of Lakeland, Florida, was sentenced by U.S. District Judge Steven D. Merryday of the Middle District of Florida, who also ordered Schneider to pay$$2,512,460.27 in restitution, joint and several. In December 2015, a jury in Tampa found Schneider and co-conspirator David Brock Lovelace guilty on all charges, which included conspiracy to commit health care fraud and wire fraud, health care fraud, conspiracy to commit money laundering, money laundering and aggravated identity theft. On March 7, Lovelace was sentenced to 174 months in prison and ordered to pay $2,512,460.27 in restitution, joint and several.
According to evidence presented at trial, from approximately June 2010 through approximately May 2014, Schneider and her co-conspirators used three purported medical clinics in Florida, Cornerstone Health Specialists, Summit Health Specialists and Coastal Health Specialists, to submit approximately $12,351,046 in false and fraudulent claims to Medicare seeking reimbursement for radiology, audiology, cardiology and neurology services. Medicare paid approximately $2,848,424 in reimbursement on the fraudulent claims. The evidence showed that Schneider and her co-conspirators used forged and falsified documents in the Medicare enrollment process for the medical clinics that they operated under false pretenses, and billed Medicare for services that had not been rendered by physicians. The co-conspirators also paid illegal kickbacks in exchange for access to Medicare patients and Medicare patient information used in the fraud scheme, the evidence showed.
HHS-OIG and the FBI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Middle District of Florida. Senior Fraud Section Trial Attorney Christopher J. Hunter is prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to www.stopmedicarefraud.gov.
Five Larimer County Residents Sentenced for Role in Synthetic Marijuana Distribution RingRead the Press Release
DENVER – The final defendant of five Larimer County residents has been sentenced for the illegal distribution of synthetic marijuana (Spice), U.S. Attorney John Walsh and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge David A. Thompson announced. Playing a critical role in the investigation was the Northern Colorado Drug Task Force. The sentencings came after the five defendants had earlier pled guilty to conspiracy to distribute a controlled substance and drug distribution related charges. The controlled substance in this case is commonly known as “Spice” – a synthetic type of marijuana. U.S. District Court Judge William J. Martinez accepted the five plea agreements and pronounced all of the sentences.
All five defendants pleaded guilty to one count of conspiracy to defraud the United States and violate the Controlled Substances Act. Dien Le was sentenced to 28 months in federal prison, to be followed by a term of 2 years supervised release, and fined $2,000.00 on March 9th, 2016. Ponlue Pim was sentenced to 44 months in federal prison, to be followed by a term of 3 years’ supervised release, and fined $5,000.00 on October 28th, 2015. Pirun Pim was sentenced to 40 months in federal prison, to be followed by a term of 3 years’ supervised release, and fined $3,500.00 on October 21st, 2015. Ricky Pim was sentenced to 48 months in federal prison, to be followed by a term of 3 years’ supervised release, and fined $6,000.00 on January 7th, 2016. Kenneth Barnes was sentenced to 18 months in federal prison, to be followed by 2 years’ supervised release, and fined $1,000.00 on February 25th, 2016.
On July 19, 2013, HSI agents and Northern Colorado Task Force officers executed search warrants at seven locations, including residences and businesses in Fort Collins. During the course of executing those warrants, agents and officers seized: money from several bank accounts used by the defendants (amounts to be determined), $26,000 in cash, 75 pounds of Spice and the chemicals and dry products to make Spice, thousands of packaging units of Spice for later sale, and several firearms. Spice, the street name, is a mixture of substances containing detectable amounts of XLR-11 and PB-22, also known as synthetic cannabinoid, a Schedule I controlled substance or considered to be analogues to controlled substances. Analogues are chemicals that are substantially similar to the chemical structure of a controlled substance and have stimulant, depressant, or hallucinogenic effects on the central nervous system. These products posed an imminent hazard to the public since many of these products were mislabeled, marketed, or sold openly as “bath salts,” “plant food,” “glass cleaner,” as in this case “tree mulch,” or legal alternatives to controlled substances that nevertheless caused people to hallucinate, overdose, and be hospitalized.
During the spring of 2013, the defendants engaged in knowingly and intentionally possessing with intent to manufacture and distribute mixtures or substances containing synthetic cannabinoid controlled substance. The investigation revealed that Pim/Le/Barnes Organization would order XLR-11 and PB-22, which is a white powder, from China. The organization would have the powder delivered from China to New York City. From there, the illegal substances were sent from New York to Fort Collins. The organization also had a green leafy type substance sent to Fort Collins from San Antonio, Texas. In Fort Collins, Barnes, Le and the Pims took XLR-11 and PB-22 and manufactured them into spice that can cause death to humans. The defendants in this case took the chemicals and mixed them in a solvent which was eventually sprayed onto a fake plant product. The crude way in which the defendants produced the spice in this case is a danger; if the fake cannabinoid is sprayed unevenly, it can create hot spots where the concentration of the chemical is dangerously high. They would then package the product and either sell it to smoke shops in Colorado or send it other smoke shops throughout the United States. The cost of 1.5 gram packets would be $10, and the cost for 3 gram packets would be $20.
The chemicals used by the defendant are manufactured in China, with no Food and Drug Administration or other type of oversight. It can contain substances that are dangerous to an individuals’ health. Some purchase Spice because they cannot purchase marijuana. Both substances are dangerous to an individual’s health, which is why XLR-11 and PB-22, similar to marijuana are now both listed as Schedule I Controlled Substances, which are banned from use.
As recent law enforcement investigations and media publications have shown, the rise of Spice continues to grow. Drug dealers are changing the chemical makeup of Spice faster to change than the laws are changing. The use of synthetic drugs such as the ones created by the defendants in this case are causing deaths throughout the country, harming individuals on a daily basis, and have a high cost on emergency health and long term care. U.S. emergency rooms saw 11,406 visits involving synthetic cannabinoids in 2010; but this number as large as it is may be limited since hospitals are lacking in their abilities to screen for substances. In 2013, almost 30 percent of 10th graders tried marijuana. The far more dangerous use of synthetic cannabis was second only to marijuana, with 7.4 percent of 10th graders admitting to using it. As shown in this case and by law enforcement trying to prevent further harm from synthetics, the system of declaring a new substance illegal isn’t equipped to handle the synthetics problem, because the possibilities of switching one small atom to create a new substance with the same effects are quick, easy, and literally endless. Another danger is the cost of the synthetic drugs are much lower than marijuana, making it more of a financially feasible product regardless of its deadly nature. An ounce of marijuana sells for $300.00 to $500.00 where a package of spice goes for $5.00 to $20.00.
“The resolution of this case is the end to a national drug organization that was producing and disturbing dangerous spice in Colorado and throughout the United States,” said U.S. Attorney John Walsh. “Colorado has been on the cutting edge of Spice related prosecutions, and thanks to HSI and the Northern Colorado Drug Task Force, five individuals importing and manufacturing this dangerous drug are now in prison as a consequence to their criminal actions.”
"These prison sentences represent the end of a lengthy investigation to dismantle this drug trafficking organization by our HSI Special Agents working together with our fellow law enforcement officers,” said Special Agent in Charge David A. Thompson, HSI Denver. “This law enforcement partnership effectively removed dangerous drugs from our local communities, and the criminals responsible for trafficking them.”
This investigation was conducted by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and the Northern Colorado Drug Task Force. The Northern Colorado Drug Task Force is made up of the Fort Collins Police Department, the Loveland Police Department and Colorado Adult Parole.
The defendants were prosecuted by Assistant U.S. Attorney Jeremy Sibert.
Five Convicted in Fraud SchemeRead the Press Release
HOUSTON – A total of five people from three different states have all been convicted in a $6 million nonexistent commercial accounts receivable scheme, announced U.S. Attorney Kenneth Magidson.
Stefano Guido Vitale, 40, of Scottsdale, Arizona pleaded guilty today to all 10 counts as charged, while Alan Leschyshyn, 53, of Cave Creek, Arizona; Bree Ann Davis, 39, of Lakewood, Colorado and Tammie Roth Hanania, 58, and Edward Peter Hanania, 64, both of Folsom, California, all had previously entered their respective pleas. All were convicted of conspiring to engage a scheme to defraud and conspiracy to commit money laundering. Vitale and Leschyshyn were also convicted of eight additional counts of wire fraud.
The scheme produced approximately $6.4 million in fraudulently obtained proceeds which the defendants agreed to launder through various bank accounts. They executed the scheme to defraud by using and establishing various business entities to sell, at a discount, nonexistent commercial accounts receivable. The defendants would approach factoring companies as sellers of customized gaming vault bundles and present fabricated invoices as evidence the defendants were owed a certain amount of money for goods provided to another one of their business entities. To establish creditworthiness of these companies and to convince the factoring company the credit risk was minimal, the defendants fabricated and/or altered documents and provided them to the factoring company.
The fraud conspiracy also proved that Vitale and Leschyshyn defrauded BOKF, NA, doing business as Bank of Arizona, when they applied for and received a $1 million line of credit secured by the Export Import Bank of the United States.
The conspiracy to commit bank, mail and wire fraud carries a possible sentence of 30 years in federal prison. The money laundering and wire fraud counts each also carry a possible term of imprisonment of 20 years. Vitale will remain in custody, while the others were permitted release pending sentencing, which has been set for May 16, 2016, before U.S. District Judge Vanessa Gilmore.
The investigation leading to the charges was conducted by Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
Factoring Business Owner Charged with Lying to FBI Agents, Selling Fraudulent Accounts Receivable to Another CompanyRead the Press Release
NEWARK, N.J. - An owner of a Bergen County, New Jersey, factoring company was arrested this morning on charges that he allegedly lied to FBI special agents about his efforts to sell fraudulent accounts receivable to another factoring company, U.S. Attorney Paul Fishman announced.
William Kirchgessner, 45, of Bloomingdale, New Jersey, was charged by complaint with one count of wire fraud and one count of making a false statement in an FBI investigation. He is scheduled to appear this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court.
According to the complaint:
Kirchgessner is an owner of a factoring business that purchases accounts receivable from transportation companies in return for short-term financing. In February 2016, Kirchgessner suspected that his company was being defrauded by a trucking company located in Georgia and contacted the FBI.
FBI special agents later told Kirchgessner that the trucking company was defrauding his factoring business and asked Kirchgessner to inform them if he was contacted by any other factoring business regarding the trucking company or if the trucking company wanted to move its accounts receivable to another business.
Instead, Kirchgessner took steps to sell the fraudulent accounts receivable to a second factoring company. Kirchgessner called a broker for the second factoring company in furtherance of the resale, made false statements to the broker promoting the trucking company, and signed the buyout agreement with the second factoring company.
Kirchgessner caused the second factoring company to send a wire transfer of more than $1.6 million as part of the buyout. During a phone conversation with FBI special agents on Feb. 23, 2016, Kirchgessner denied any knowledge of the second factoring company and concealed his personal involvement in the buyout.
The charge of wire fraud carries a maximum potential penalty of 20 years in prison. The charge of making a false statement carries a maximum potential penalty of five years in prison. Both charges carry a potential $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Espanola Man Pleads Guilty to Violating Federal Narcotics Trafficking LawsRead the Press Release
ALBUQUERQUE – Matthew Martinez, 38, of Espanola, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a heroin trafficking charge.
Martinez was arrested on Dec. 3, 2015, on a three-count indictment charging him with heroin trafficking offenses. The indictment alleged that Martinez distributed heroin in Bernalillo County, N.M., on April 30, 2015. It also charged Martinez with distributing heroin on two occasions in Santa Fe, N.M.; the first time on May 1, 2015 and the second on Sept. 16, 2015.
During today’s proceedings, Martinez pled guilty to distributing heroin on Sept. 16, 2015. In his plea agreement, Martinez admitted selling approximately two ounces of heroin to an undercover FBI agent outside of the Walmart located at 5701 Herrera Drive in Santa Fe.
At sentencing, Martinez faces a maximum penalty of 20 years in federal prison followed by not less than three years of supervised release. Martinez remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Santa Fe office of the FBI. This case is being prosecuted by Assistant U.S. Attorney Joel R. Meyers pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
El Departamento de Justica Resuelve Una Reclamación Presentada en Contra de Barrios Street Realty Por Haber Discriminado a Trabajadores EstadounidensesRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia llegó a un acuerdo histórico hoy con Barrios Street Realty LLC, una empresa con sede en Lockport, Luisiana. El acuerdo resuelve quejas de que la empresa y su agente, Jorge Arturo Guerrero Rodríguez, hubiesen discriminado a trabajadores estadounidenses al dar preferencia en la contratación a trabajadores extranjeros al amparo del programa de visas H-2B.
La investigación del Departamento halló que en julio del 2014, Barrios Street Realty y Guerrero Rodríguez se negaron a considerar, o bien rechazaron indebidamente, a 73 trabajadores estadounidenses que solicitaron empleo como obreros o techadores de chapas metálicas, y en su lugar reclutaron a trabajadores extranjeros para llenar estas vacantes. El Departamento determinó que las solicitudes que la empresa difundió entre trabajadores extranjeros afirmaron falsamente que en su esfuerzo previo de llenar los puestos para obreros y techadores de chapas metálicas no lograron identificar a trabajadores estadounidenses cualificados. El negarse a considerar o a contratar a trabajadores estadounidenses cualificados por motivos de su ciudadanía representa una violación de los reglamentos H-2B y la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés).
En el marco del acuerdo, Barrios Street Realty deberá establecer un fondo de pagos retroactivos que asciende a 115.000$ para compensar a trabajadores estadounidenses, pagar 30.000$ en sanciones civiles y someterse a supervisión durante un período de tres años. Asimismo, Barrios Street Realty reconoció en el marco del acuerdo que su uso indebido del programa de visas H-2B constituye un motivo fundado para su inhabilitación del programa y acordó participar en un programa de inhabilitación voluntario que prohibirá que reclute a trabajadores con visas H-2B o cualquier otro tipo de trabajador no inmigrante con visa de la Administración de Capacitación y Empleo del Departamento de Trabajo durante un período de tres años. Esta es la primera vez que el Departamento ha logrado la inhabilitación voluntaria como remedio contra una violación de la disposición antidiscriminatoria de la INA.
“Las leyes federales prohíben que los empleadores discriminen a trabajadores estadounidenses en la contratación,” afirmó la Secretaria de Justicia Auxiliar Adjunta Principal, Vanita Gupta, Directora de la División de Derechos Civiles del Departamento de Justicia. “El Departamento se compromete a identificar y luchar contra preferencias discriminatorias en la contratación que impidan la habilidad de trabajadores estadounidenses de competir, de una forma equitativa, por puestos de trabajo.”
Aquellos postulantes o empleados que creen haber sido sometidos a: requisitos documentales diferentes, basados en su estatus migratorio o de ciudadanía, o bien por su nacionalidad de origen; o discriminación por motivos de su estatus migratorio o de ciudadanía, o por su nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión deberán comunicarse con la línea directa para trabajadores que aparece a continuación para pedir ayuda.
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración (OSC, por sus siglas en inglés), que corresponde a la División de Derechos Civiles del Departamento de Justicia, es responsable de aplicar la disposición antidiscriminatoria de la INA. Esta ley prohíbe que los empleadores discriminen a sus trabajadores por motivos de su estatus migratorio o de ciudadanía, o bien por su nacionalidad de origen, en los procesos de contratación, despido o reclutamiento o recomendación por comisión; o en el proceso de verificación de la elegibilidad de empleo.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias federales, llame a la línea directa de la OSC para trabajadores al 1‑800‑255‑7688 (1‑800-237-2525, TTY para personas con discapacidades auditivas); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2525, TTY para personas con discapacidades auditivas) o el 202-616-5594; mande un correo electrónico a [email protected] o visite la página web en www.justice.gov/crt/about/osc.
East St. Louis Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Anthony J. Jones, a 50-year old, Illinois, man was sentenced on March 17, 2016, in federal district court in East St. Louis, Illinois, on one count of Failure to Register as a Sex Offender, violating the federal Sex Offender Registration and Notification Act (SORNA), the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Jones was sentenced to 18 months in federal prison, to be followed by 10 years of supervised release, and ordered to pay a $100 special assessment.
The violation occurred between November 2014 and April 21, 2015, when Jones, a sex offender, moved from Tennessee to East St. Louis, Illinois, without registering as a sex offender there. Jones was aware that he was required to either update his sex offender registration in Tennessee to reflect this change of address, or register as a sex offender in Illinois. Jones was convicted on September 9, 1998, in St. Louis County, Missouri, of Attempted Sexual Abuse, which required him to register as a sex offender thereafter.
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 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 individual’s who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the United States Marshals Service and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Douglasville GA Man Sentenced to 24 Months Probation for Possession of Counterfeit Access DevicesRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JAMES RODNEY SIMS, age 27, of Douglasville, Georgia, was sentenced to 2 years of probation for POSSESSION OF FIFTEEN OR MORE COUNTERFEIT ACCESS DEVICES, in violation of Title 18, United States Code, Sections 1029(a)(3) and 2.
The Indictment alleged that on or about April 24, 2015, within the Eastern District of Oklahoma, the defendant knowingly possessed fifteen (15) or more access devices, which were counterfeit or unauthorized access devices, with said activity affecting interstate commerce.
The charges arose from an investigation by the Oklahoma Highway Patrol and the United States Secret Service.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Melody Nelson represented the United States.
Dickinson ND Man Sentenced for Possession of Child PornographyRead the Press Release
BISMARCK - U. S. attorney Christopher C. Myers announced that on March 21, 2016, Eric Schrum, 38, Dickinson, ND, was sentenced before U. S. District Judge Daniel L. Hovland to serve 13 years 8 months in prison for Possession of Materials Involving the Sexual Exploitation of Minors. Judge Hovland further ordered Schrum to serve 10 years of supervised release, pay $850 in restitution, and also pay a $100 special assessment to the Crime Victims’ Fund.
From about Jan. 1, 2011, through about Dec. 20, 2013, Schrum knowingly possessed images containing minors engaging in sexually explicit conduct. According to evidence that was seized, Schrum had amassed a collection of over 70,815 images and videos during this time.
This case was investigated by the Federal Bureau of Investigation, ND Bureau of Criminal Investigation, Dickinson Police Department, Southwest Drug Task Force, and the Stark County Sheriff’s Office.
Assistant U. S. Attorney Gary Delorme prosecuted the case
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorneys’ Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Detroit Man Sentenced on Identity Theft ChargesRead the Press Release
St. Louis, MO - Shukree Melton, of Detroit, Michigan, was sentenced to 2 years for aggravated identity theft in connection with a fraudulent credit card and gift card scheme. He appeared before U.S. District Judge Henry Autrey in St. Louis today.
Melton was arrested at a shopping center in St. Louis County on July 28, 2015, with his three co-conspirators who had traveled down from Michigan. A search of the group’s vehicle and motel room revealed numerous fake store gift cards, a card encoder, a card reader and other device-making equipment, all of which has been seized and criminally forfeited. The group had successfully passed numerous fake gift cards before their arrest.
In addition to his prison sentence, Melton was ordered to pay restitution to the victims of his scheme pursuant to the Mandatory Victim Restitution Act.
The case was investigated by the St. Louis County Police Department and the St. Louis Office of the United States Secret Service.
Crack-Cocaine Distributor for Grape Street Crips Gang Sentenced to 176 Months in PrisonRead the Press Release
NEWARK, N.J. – A drug supplier for the Grape Street Crips street gang was sentenced today to 176 months in prison for his role in distributing large quantities of crack-cocaine in and around Newark, New Jersey, U.S. Attorney Paul J. Fishman announced.
Jihad Coles, a/k/a “Half Dead,” 31, of Newark, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to distribute 280 grams or more of crack-cocaine. Judge Salas imposed the sentence today in Newark federal court.
In May 2015, over the course of three weeks, 50 alleged members and associates of the Grape Street Crips were charged in criminal complaints that alleged drug-trafficking, physical assaults, and witness intimidation. The charges were the result of a long-running investigation led by the Drug Enforcement Administration (DEA) and the FBI, in conjunction with the Essex County Prosecutor’s Office, the Newark Police Department and Essex County Sheriff’s Office Bureau of Narcotics. Over the course of the entire investigation, 71 defendants have been charged with federal and state charges.
According to documents filed in this case and statements made in court:
Coles admitted that between March 2012 and August 2012 he conspired with others to distribute hundreds of grams of crack-cocaine at the Mildred Terrell Homes public-housing complex located on Riverview Terrace in Newark, New Jersey. As a long-time member of the Grape Street Crips, Coles admitted that he served as an organizer and leader of the crack-cocaine distribution conspiracy.
In addition to the prison term, which will be served consecutively to a state prison term that he is currently serving, Coles was sentenced to five years of supervised release.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, for the investigation leading to today’s sentencing. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; police officers and detectives of the Newark Police Department, under the direction of Director Anthony Ambrose; and the Essex County Sheriff’s Office under the direction of Sheriff Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Clovis Pharmacy Owner Agrees to Pay $200,000 in Civil Penalties to Resolve Controlled Substances Act ClaimsRead the Press Release
SACRAMENTO, Calif. – Khoa Tan Huynh, owner of the Script Life Pharmacy in Clovis has agreed to pay the United States $200,000 to settle civil claims for statutory violations occurring at the pharmacy, United States Attorney Benjamin B. Wagner announced today.
According to the settlement agreement, in June 2013, an audit revealed multiple violations of the Controlled Substances Act (CSA). The government contends that between June 6, 2011, and December 31, 2012, Script Life Pharmacy accepted and filled prescriptions that lacked required information, including the prescribers’ DEA registration numbers and signatures. In addition, the audit demonstrated shortages of several controlled substances, along with overages of several others.
“Abuse of prescription drugs is a significant societal problem. Pharmacies must take great care to ensure that controlled substances do not end up in the wrong hands. This settlement underscores the federal commitment to holding accountable dispensaries of controlled substances,” said U.S. Attorney Wagner.
The Controlled Substances Act (CSA) authorizes the Drug Enforcement Administration (DEA) to regulate controlled substances to create a “closed” system of distribution that provides the legitimate drug industry with a unified approach to narcotic and dangerous drug control. The CSA establishes a classification system for all controlled substances, including prescription medications, based upon the potential for abuse, dependence profile, and medicinal value of the drugs. The CSA and its implementing regulations mandate that prescriptions for controlled substances include certain critical information and require pharmacies to maintain certain records and inventories of these controlled substances; these controls allow the DEA to protect the distribution system and prevent drug diversion and abuse.
This case was prosecuted by Assistant United States Attorney Catherine Swann and results from an investigatory audit by the DEA Fresno Diversion Group.
Canistota Woman Convicted of Tax FraudRead the Press Release
Canistota Woman Convicted of Tax Fraud
United States Attorney Randolph J. Seiler announced that Veronica Fairchild, age 42, of Canistota, South Dakota, and Okoboji, Iowa, who was found guilty of four counts of tax fraud as a result of a federal jury trial in Sioux Falls, South Dakota, lost her appeal of the conviction. The Eighth Circuit Court of Appeals affirmed the conviction of the District Court.
Fairchild was sentenced to 33 months in custody and ordered to pay over $214,000 in restitution to the U.S. Department of Treasury, Internal Revenue Service, for unpaid taxes.
Fairchild was indicted by a federal grand jury on July 9, 2013. The investigation stemmed from Fairchild’s late filing of her 2005 through 2008 income tax returns in 2010. Bank records revealed she had failed to claim over $850,000 in income over the four-year period of time. Fairchild claimed the unreported income she received from performing private shows as an exotic dancer was a gift. A jury trial commenced on June 24, 2014, and completed on June 26, 2014, with the jury convicting Fairchild on all four counts of the indictment.
On appeal, Fairchild challenged the evidence supporting her conviction, the jury instructions regarding the source of income, and the length of her sentence. The Eighth Circuit Court of Appeals affirmed the conviction and held that the evidence was sufficient to support the jury’s finding that Fairchild knowingly and willfully underreported her income as an exotic dancer. The Court also held that the jury instructions were proper and that the length of her sentence was reasonable.
This case was investigated by the Internal Revenue Service Criminal Investigation Division. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
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Cahokia Resident Pleads Guilty to Unlawful Possession of A Firearm and Tampering with A Potential WitnessRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that on March 17, 2016, Anthony D. Bradley, 27, Cahokia, IL, pled guilty to a three-count Superseding Indictment charging him, in Count 1, with the Unlawful Possession of a Firearm by a Previously Convicted Felon; and, in Counts 2 and 3, with Tampering with a Potential Witness.
On Count 1, Bradley faces a term of imprisonment of not more than ten (10) years, a fine up to $250,000, or both, and a term of supervised release of not more than three (3) years. On Counts 2 and 3, Bradley faces a term of imprisonment of not more than twenty (20) years, a fine up to $250,000, or both, and a term of supervised release of not more than three (3) years. Bradley also agreed to the forfeiture of the firearm he illegally possessed. Bradley’s sentencing is scheduled for June 24, 2016, in East St. Louis, Illinois. Bradley has been detained, that is, held without bond, since his arraignment on September 2, 2015.
The charge in Count 1 arose on July 18, 2015, when a traffic stop was conducted on a vehicle in which Bradley was a passenger. Prior to the vehicle stopping, the officer saw the Bradley, who was in the rear seat, bending towards the rear floorboard as if trying to hide something. After Bradley was removed from the rear seat, a firearm that had been partially concealed under the front driver’s seat was found on the rear floorboard. The officer noted from the position of the gun that it would have been impossible for either the driver or the front seat passenger to have placed the gun where he found it without him (the officer) having seen it before the vehicle stopped. In addition, both the driver and the front seat passenger were interviewed at the scene and both denied knowing that a gun was in the vehicle. Finally, the front seat passenger stated that she heard Bradley exclaim, "Damn," when the police pulled them over.
The charge in Count 2 arose when, on July 20, 2015, in a recorded jail call to K.M., Bradley asked K.M. to develop a false story that would involve K.M. leaving the gun, which was registered to K.M., in the vehicle without Bradley’s knowledge. Specifically, Bradley told K.M. to testify falsely that she got in the car and partially concealed the gun without Bradley’s knowledge. The charge in Count 3 arose later that same day when, in another recorded jail call to K.M., Bradley told K.M. to try to find witnesses to testify falsely that he/she/they saw K.M. sitting in the vehicle with Bradley prior to the July 18, 2015, traffic stop in which the gun was discovered.
The case was investigated by the Fairview Heights Police Department, the Illinois State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is assigned to Assistant United States Attorney Angela Scott.
Brockton Man Sentenced to Ten Years for Bank Robbery SpreeRead the Press Release
BOSTON – A Brockton man was sentenced on Friday, March 18, 2016, in U.S. District Court in Boston for robbing multiple banks in 2014.
James Patterson, 47, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 121 months in prison, three years of supervised release and restitution in of $34,871. Patterson was convicted by a jury following a six-day trial in November 2015.
From April to July 2014, Patterson robbed five banks: the Beverly Bank on Dodge Street in Beverly on April 16th; the People’s United Bank on Dodge Street in Beverly on May 10th; the Century Bank on Fellsway West in Somerville on June 4th; the South Shore Bank on Turnpike Street in Stoughton on June 12th; and the North Shore Bank on Highland Avenue in Salem on July 20th. On each occasion, Patterson wore sunglasses, gloves, and covered his lower face with a bandana or clothing. After entering each bank, Patterson announced that it was a robbery and demanded large bills from the bank tellers.
Patterson was arrested on Aug. 4, 2014, near the Century Bank on Cambridge Street in Burlington carrying a black BB gun that had the appearance of a semi-automatic pistol. At the time of his arrest, Patterson was wearing a hat, sunglasses, long pants pulled over shorts, a heavy pullover top and latex gloves. The lower part of his face was covered with black clothing.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The Beverly, Somerville, Stoughton, Salem, Peabody and Burlington Police Departments assisted with the investigation. The case was prosecuted by Assistant U.S. Attorneys Kenneth G. Shine and Robert E. Richardson of Ortiz’s Major Crimes Unit
Boston Man Convicted in Illegal Gun Trafficking SchemeRead the Press Release
BOSTON – A Boston man was convicted by a federal jury on Friday, March 18, 2016, in connection with his role in a scheme to illegally transport firearms into Massachusetts.
Shayne Parker, 41, of Dorchester, was convicted following a five-day trial of interstate transportation of firearms and being a felon in possession of 50 rounds of ammunition. U.S. District Court Judge F. Dennis Saylor, IV scheduled sentencing for June 10, 2016. In March 2015, Parker was arrested and charged in a criminal complaint. Parker has several felony convictions, including for violence and drug trafficking crimes.
In spring 2014, a joint law enforcement investigation uncovered a scheme in which firearms were bought in guns stores in New Hampshire and transported to Massachusetts for sale on the streets of Boston. The purchasers of the firearms were paid with drugs for their help.
During the course of the scheme, 16 guns were trafficked into Boston within three-weeks using three different straw purchasers. Ronald Scott, who was convicted in New Hampshire, purchased the guns and ammunition while Parker drove Scott to and from each of the five purchase locations in New Hampshire and handled the weapons and ammunition.
One of the guns – a 9mm semi-automatic firearm – was recovered on April 2, 2014, after Boston Police Officers pursued and arrested another individual. The firearm had been purchased 11 days before by Parker and his associates. In addition, during a search of a residence in Mattapan, law enforcement officers seized a .380 caliber semi-automatic weapon and a box containing 50 rounds of ammunition. The ammunition had been purchased just 22 days prior at Dick’s Sporting Goods in New Hampshire and transported to Massachusetts by Parker.
The charging statutes each provide a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William B. Evans, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Glenn MacKinlay of Ortiz's Organized Crime and Gang Unit.
Bankruptcy Court Approves Alternative Purchaser of Orange County Register and Riverside Press-EnterpriseRead the Press Release
Decision Follows TRO Halting Anticompetitive Sale to Owner of L.A. Times
Today, the Bankruptcy Court for the Central District of California approved Digital First Media as the purchaser of Freedom Communications Inc., publisher of the Register in Orange County and the Press-Enterprise in Riverside County, California. After Tribune Publishing Company, publisher of the Los Angeles Times, had attempted to emerge as the winning bidder in the bankruptcy proceeding, the Department of Justice filed a civil antitrust lawsuit seeking to block Tribune from acquiring Freedom Communications on March 17, 2016. The next day, the Honorable André Birotte Jr., a federal judge in Los Angeles, granted the department’s application for a temporary restraining order to prevent Tribune from acquiring Freedom Communications pending further proceedings.
“Many Americans depend on local newspapers even in this age of electronic information,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “As Judge Birotte held in his well-reasoned opinion, newspapers play an important role in our democracy. Preventing the Los Angeles Times from combining with the Register and the Press-Enterprise will ensure that citizens and advertisers in Southern California continue to benefit from competition and from a diversity of views in their local news coverage. The Antitrust Division will remain vigilant in protecting competition in this important industry.”
In his ruling granting the department’s application for a temporary restraining order, Judge Birotte found that “local newspapers continue to serve a unique function in the marketplace: they are the creators of local content. It further stands to reason that local advertisers in search of print advertising would choose to advertise with local news providers.”
Bank Robbers Sent toFederal PrisonRead the Press Release
CORPUS CHRISTI, Texas – A Pearsall woman and a Lubbock man have both been ordered to prison following their convictions of one count of bank robbery, announced U.S. Attorney Kenneth Magidson today. Manuel Salas, 47, pleaded guilty Dec. 14, 2015, while Joyce Jenkins, 49, entered her plea in November 2015. Today, Senior U.S. District Judge John Rainey ordered Salas serve 90 months in federal prison. Jenkins was sentenced to a 45-month term of imprisonment last month. Both were further ordered to pay restitution and will serve three years of supervised release following their prison sentences. On March 24, 2015, law enforcement officers responded to a bank robbery at the American Bank in the 4100 block of S. Alameda in Corpus Christi. After entering the bank, Salas displayed a black handgun and demanded money from the teller. After receiving the money, Salas left the bank in a vehicle driven away by Jenkins. During the investigation, agents were able to identify several area bank robberies involving both defendants. In federal custody since their arrests, Salas and Jenkins will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future. The charges stem from an investigation by the FBI and the Corpus Christi Police Department. Assistant U.S. Attorney Lance Watt prosecuted the case.Bakersfield Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
FRESNO, Calif. —Bryson LaPaul Blair, 30, of Bakersfield, pleaded guilty today to being a convicted felon in possession of a firearm and ammunition, United States Attorney Benjamin B. Wagner announced.
According to court documents, during the execution of a search warrant at Blair’s residence, officers found a loaded Russian assault weapon under Blair’s bed and 145 rounds of ammunition. Blair was previously convicted in Kern County of a felony and was prohibited from possessing firearms and ammunition.
Blair is scheduled to be sentenced by United States District Judge Lawrence J. O’Neil on June 13, 2016. Blair faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Bakersfield Police Department. Assistant United States Attorney Karen Escobar is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Alex White, 31, of Mobile, was sentenced today on charges involving drug distribution and using a gun during and in relation to his drug trafficking activities. White pled guilty to the charges in October of 2015.
Judge Kristi K. Dubose imposed a sentence of 90 months in White’s case, consisting of 84 months on the gun charge (a statutory mandatory sentence) followed by 6 months on the drug charge. She also ordered that White will undergo drug abuse counseling and treatment while he serves his time, and when he comes out of prison, he will continue such counseling and treatment as conditions of his five year term of supervised release. No fine was imposed, but the judge ordered that White pay $200 in special mandatory assessments.
The case was investigated by the Mobile County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Albuquerque Man Pleads Guilty to Federal Bank Robbery ChargeRead the Press Release
ALBUQUERQUE – Fabian Baros, 38, of Albuquerque, N.M., pleaded guilty today in federal court to a bank robbery charge under a plea agreement with the U.S. Attorney’s Office.
Baros was arrested in Sept. 2015, on a criminal complaint charging him with robbing the BBVA Compass Bank located at 1201 San Pedro Dr. in Albuquerque, on Sept. 10, 2015. The complaint alleged that Baros robbed the bank by approaching the bank teller and demanding money. Baros was arrested later that day by the Albuquerque Police Department.
Baros was subsequently indicted on Oct. 7, 2015. During today’s proceedings, Baros pled guilty to the indictment and admitted that he robbed the BBVA Compass Bank on Sept. 10, 2015.
At sentencing, Baros faces a maximum penalty of 20 years in federal prison followed by up to three years of supervised release. Baros remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney George C. Kraehe is prosecuting the case.
10 Year Sentence for Doctor Who Defrauded AFLACRead the Press Release
SAN JUAN, P.R. – On Monday, March 21, 2016, the Hon. Gustavo Gelpí sentenced Aníbal Pagan-Romero, a general practitioner with a clinic in Quebradillas, Puerto Rico, to a term of imprisonment of 120 months and a term of supervised release of five (5) years in the criminal case for mail fraud prosecuted against Pagan-Romero in federal court. Pagan-Romero was also ordered to pay $2,056,503.32 in restitution to the American Life Assurance Company (“AFLAC”) of Columbus, Georgia. This sentence is the result of a lengthy investigation undertaken by the Federal Bureau of Investigations into multiple insurance fraud schemes in the Western region of Puerto Rico which resulted in the arrest and prosecution of hundreds of individuals.
On October 5, 2015, Aníbal Pagan-Romero had been found guilty by a jury of his peers on all counts of an 82 count indictment charging 21 conspiracies and 61 individual counts of mail fraud. Pagan-Romero was charged with 35 patients for orchestrating a large-scale fraudulent scheme where he fraudulently signed AFLAC accidental insurance claim forms without examining the patients. The evidence presented at trial showed that Pagan-Romero caused a loss to AFLAC in excess of $6,000,000. The 35 patients who were charged alongside Pagan-Romero pled guilty to the charges prior to the trial.
The three-week trial before the Hon. Gustavo Gelpi included the testimony of three of the doctor’s employees and four patients who indicated that Pagan-Romero personally instructed them to submit the documents for his signature without examination. The evidence also showed that the scheme had grown so large and lucrative that Pagan-Romero had to hire two employees to do data entry full time in order to generate the thousands of AFLAC claim forms submitted for reimbursement under his signature.
The case was prosecuted by Assistant United States Attorneys Dennise N. Longo and Julia Díaz-Rex.
19 March 2016
Two Arrested for Child Sexual ExploitationRead the Press Release
SYRACUSE, NEW YORK – Jason Kopp,40, of Liverpool, New York and Emily Oberst, 23, of Syracuse, New York were arrested yesterday and charged with sexual exploitation of a child by making pornographic images and distribution of child pornography involving a 16 month old infant, announced United States Attorney Richard S. Hartunian.
As alleged in the criminal complaint filed today, both defendants were arrested by Special Agents of the Federal Bureau of Investigation ("FBI") following the execution of search warrants and the seizure of evidence from their residences in Syracuse and Liverpool last night and early this morning.
The charges filed against Kopp and Oberst for sexual exploitation of a child by making pornographic images carry a minimum sentence of fifteen years and a maximum sentence of thirty years imprisonment. The charges for distribution of child pornography carry a minimum sentence of five years and a maximum sentence of twenty years imprisonment. Each charge provides for a fine of up to $250,000.
Kopp and Oberst appeared today in Syracuse, New York, before United States Magistrate Judge Andrew T. Baxter and were detained without bail pending further court proceedings.
The charges in the complaint are merely accusations. The defendants are presumed innocent until proven guilty.
This case is being investigated by FBI Albany Division (Syracuse Resident Agency), and the District of Columbia Metropolitan Police Department-Federal Bureau of Investigation ("MPD-FBI") Child Exploitation Task Force (Washington Field Office), and is being prosecuted by Assistant U.S. Attorney Lisa Fletcher.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc.
18 March 2016
Woodbridge Man Pleads Guilty to Conspiring to Provide Material Support to ISILRead the Press Release
ALEXANDRIA, Va. – Joseph Hassan Farrokh, 28, of Woodbridge, pleaded guilty today to conspiring to provide material support and resources to a foreign terrorist organization, namely the Islamic State of Iraq and the Levant (ISIL).
In a statement of facts filed with the plea agreement, beginning in or about August 2015, and continuing through January 15, 2016, Farrokh conspired with Mahmoud Amin Elhassan, 25, of Woodbridge, to travel from the United States to Syria in order to fight with ISIL. As part of their plan, Farrokh would travel first, followed by Elhassan at a later date. Farrokh and Elhassan spoke in detail about their potential travel, including discussing the different routes each would take to travel to Syria. Farrokh also provided $600 to Elhassan to aid in Elhassan’s future travel to Syria. Both men spoke openly with each other about supporting ISIL and supporting violent jihad, with Farrokh saying on Oct. 2, 2015, that he had no patience and wanted to go right away and “chop their heads.”
According to the statement of facts, in an effort to conceal their plans to support ISIL, Farrokh and Elhassan communicated in a manner in which they thought they could not be detected by law enforcement, such as using apps they believed were safe from law enforcement detection. In the summer 2015, Farrokh and Elhassan talked more seriously about going to join ISIL. When Farrokh and Elhassan discussed ways to reach ISIL, they concluded that they needed someone to help them do so.
According to the statement of facts, from November 2015 through Jan. 15, 2016, Farrokh and Elhassan conspired with other persons they believed would help facilitate their travel to Syria. Over the course of many meetings, the men discussed in detail their travel plans and efforts to avoid law enforcement detection, including having Farrokh shave his beard and to fly out of Richmond International Airport to avoid what Farrokh believed to be stricter law enforcement scrutiny at Reagan National Airport. Farrokh and Elhassan agreed that Farrokh should tell his family that he intended to travel to Saudi Arabia to study.
On Jan. 15, 2016, Elhassan picked up Farrokh at his home in Woodbridge and drove him to Richmond to a location approximately one mile from the airport. Farrokh then took another cab to the airport, checked in for his flight, cleared security and was arrested as he was approaching his departure gate.
Farrokh was charged by criminal complaint on Jan. 16, 2016, and faces a maximum penalty of 20 years in prison when sentenced on July 15, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John Carlin, Assistant Attorney General for National Security; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga. The case is being prosecuted by Assistant U.S. Attorneys Gordon D. Kromberg and Dennis M. Fitzpatrick, along with Trial Attorney D. Andrew Sigler of the Justice Department’s National Security Division’s Counterterrorism Section. The FBI’s Joint Terrorism Task Force is investigating the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-20.
Winchester Man Sentenced to 135 Months in Federal Prison for Conspiring to Distribute in Excess of One Kilogram of HeroinRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced today that Jamie Hilow, age 28, of Winchester, New Hampshire was sentenced by United States District Judge Landya B. McCafferty to 135 months in federal prison for conspiracy to distribute one kilogram or more of heroin, in violation of Title 21, United States Code, Sections 846 and 841. The Grand Jury for the District of New Hampshire indicted Hilow for the crime September 23, 2015. Hilow pleaded guilty to the charge on October 27, 2015.
After a lengthy investigation, law enforcement determined that Hilow was employed as a runner for a drug trafficking organization headed, authorities allege, by Ross Gould, age 28, of Richmond, New Hampshire. Hilow distributed heroin for Gould to numerous individuals in and around Keene. On March 16, 2015, Gould was charged federally with possession with the intent to distribute heroin after search warrants executed at his Richmond, New Hampshire residence and another residence utilized by Gould to store narcotics on March 10, 2015 resulted in the seizure of over a kilogram of heroin, a large quantity of cocaine, prescription pills, currency, and 14 firearms.
“The United States Attorney’s Office is committed to working with our local, state and federal law enforcement partners to address the significant presence of heroin in New Hampshire by continuing to target drug trafficking organizations who are responsible for the importation of large quantities of heroin into New Hampshire from source cities such as Lawrence, Massachusetts” stated United States Attorney Emily Gray Rice.
Upon release from the Federal Bureau of Prisons, Hilow will be on supervised release under the supervision of the United States Probation Office for five years and as much as life. Should Hilow violate the terms of his supervised release, he could be sentenced to an additional prison term.
The investigation was conducted by the: (1) Immigration and Customs Enforcement, Homeland Security Investigations; (2) New Hampshire Attorney General’s Drug Task Force; (3) Bureau of Alcohol, Tobacco, Firearms and Explosives; (4) New Hampshire State Police; (5) Keene, New Hampshire Police Department; (6) Richmond, New Hampshire Police Department; and (7) Salem, New Hampshire Police Department. Assistant United States Attorney Jennifer Cole Davis is prosecuting the case.
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Waldorf Man Sentenced to Eight Years in Prison for Distribution of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Jamaar Davon Brandon, age 24, of Waldorf, Maryland, today to eight years in prison, followed by lifetime supervised release, for distribution of child pornography. Judge Messitte also ordered that upon his release from prison Brandon must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Charles County Sheriff Troy Berry; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, from at least October 2012 through at least June 2015, Brandon used email, cloud storage programs, file sharing programs, internet chat messaging, smartphone messaging applications and other internet-based programs to distribute and receive child pornography.
On October 18, 2012, a website reported to the National Center for Missing and Exploited Children (NCMEC) that one of its users, later identified as Brandon, had uploaded suspected child pornography to the website. A law enforcement review confirmed that a number of the files contained child pornography. A state search warrant was executed at Brandon’s residence and seized among other items, Brandon’s laptop. A forensic review of the laptop found approximately 700 digital files of interest, the majority of which were confirmed to be child pornography and child erotica. some of which portrayed sadistic and masochistic conduct and other depictions of violence. Three of the digital files were videos registered with the NCMEC Child Victim Identification Program, meaning the identities of the child victims portrayed in the videos have been confirmed by law enforcement.
On January 13, 2015, a cloud storage service website reported to NCMEC that 70 digital video files of suspected child pornography had been uploaded to Brandon’s account. After confirming that certain of the files contained child pornography, federal law enforcement obtained a search warrant for Brandon’s residence. On June 23, 2015, the federal search warrant was executed at Brandon’s residence and digital media and electronics were seized. After waiving his rights, Brandon was interviewed by federal agents and admitted that he downloaded and shared child pornography via the internet using a variety of mediums, including email and cell phone messaging applications. The digital media seized during the search contained more than 1,350 images depicting children engaged in sexually explicit conduct. In addition, a review of Brandon’s email and online storage accounts confirmed that Brandon had uploaded and distributed image and video files containing child pornography. Some of the videos and images involved toddler-aged and prepubescent females and some portrayed sadistic and masochistic conduct and other depictions of violence.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Maryland State Police and Charles County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Jennifer Wine and Assistant U.S. Attorney Kristi N. O’Malley, who are prosecuting the case.
Virginia Man Sentenced to 10 Years in Prison for Sex Trafficking 15-Year-Old GirlRead the Press Release
An Annandale, Virginia, man was sentenced today to 10 years in prison to be followed by 10 years of supervised release for sex trafficking of a minor.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office and Colonel Edwin C. Roessler Jr., Chief of the Fairfax County, Virginia, Police Department, made the announcement.
Ismael Antonio Mendez, 20, pleaded guilty on Dec. 29, 2015, to sex trafficking of a minor. Mendez will be required to register as a sex offender.
In connection with his plea, Mendez admitted that from at least November 2014 through February 2015, he and two adult co-conspirators recruited a 15-year-old girl to engage in commercial sex acts to pay off a debt that Mendez owed to one of the co-conspirators. The adults taught the girl how to prostitute, took photos of her to use in ads and created commercial sex ads that were posted on the Internet, he admitted. Mendez admitted that the co-conspirators knew that the girl was a minor and instructed her to lie about her age to customers. According to Mendez’s plea, over a three-month period, the co-conspirators traveled with the girl throughout Virginia, in New York and every state in between for the purposes of advertising and engaging the girl in commercial sex. Mendez admitted that during that time period, the defendants prostituted the girl every day, with an average of 10 to 12 customers a night until she earned enough to repay Mendez’s debt, at which point she was directed to leave the co-conspirators.
Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Whitney Dougherty Russell of the Eastern District of Virginia prosecuted the case.
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.
Virginia Man Sentenced to 10 Years for Sex Trafficking a 15-Year-Old GirlRead the Press Release
ALEXANDRIA, Va. – Ismael Antonio Mendez, 20, of Annandale, was sentenced today to 120 months in prison and 10 years of supervised release for sex trafficking of a minor. Mendez was also ordered to register as a sex offender upon release from prison.
Mendez pleaded guilty on Dec. 29, 2015. According to court documents, Mendez admitted that from at least November 2014 through February 2015, he and two adult co-conspirators recruited a 15-year-old girl to engage in commercial sex acts to pay off a debt that Mendez owed to one of the co-conspirators. The adults taught the girl how to prostitute, took photos of her to use in ads and created commercial sex ads that were posted on the Internet, he admitted. Mendez admitted that the co-conspirators knew that the girl was a minor and instructed her to lie about her age to customers. According to Mendez’s plea, over a three-month period, the co-conspirators traveled with the girl throughout Virginia, in New York and every state in between for the purposes of advertising and engaging the girl in commercial sex. Mendez admitted that during that time period, the defendants prostituted the girl every day, with an average of 10 to 12 customers a night until she earned enough to repay Mendez’s debt, at which point she was directed to leave the co-conspirators.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler Jr., Chief of the Fairfax County Police Department, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Whitney Dougherty Russell and Special Assistant U.S. Attorney Lauren Britsch prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-349.
Virginia Man Pleads Guilty to Conspiring to Provide Material Support to ISILRead the Press Release
Joseph Hassan Farrokh, 28, of Woodbridge, Virginia, pleaded guilty today to conspiring to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. The plea was accepted by U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia.
The plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.
According to a statement of facts filed with the plea agreement, beginning in or about August 2015, and continuing through Jan. 15, 2016, Farrokh conspired with Mahmoud Amin Elhassan, 25, of Woodbridge, to travel from the United States to Syria in order to fight for, and at the direction of, ISIL. As part of their plan, Farrokh would travel first, followed by Elhassan at a later date. Farrokh and Elhassan spoke in detail about their potential travel, including discussing the different routes each would take to travel to Syria. Farrokh also provided $600 to Elhassan to aid in Elhassan’s future travel to Syria. Both men spoke openly with each other about supporting ISIL and supporting violent jihad, with Farrokh saying on Oct. 2, 2015, that he had no patience and wanted to go right away and “chop their heads.”
According to the statement of facts, in an effort to conceal their plans to support ISIL, Farrokh and Elhassan communicated in a manner in which they thought they could not be detected by law enforcement, such as using apps they believed were safe from law enforcement detection. In the summer 2015, Farrokh and Elhassan talked more seriously about going to join ISIL. When Farrokh and Elhassan discussed ways to reach ISIL, they concluded that they needed someone to help them do so.
According to the statement of facts, from November 2015 through Jan. 15, 2016, Farrokh and Elhassan spoke with other persons they believed would help facilitate their travel to Syria. Two of the individuals Farrokh spoke to were, in fact, sources for the FBI. Over the course of many meetings, the men discussed in detail their travel plans and efforts to avoid law enforcement detection, including having Farrokh shave his beard and to fly out of Richmond International Airport, to avoid what Farrokh believed to be stricter law enforcement scrutiny at larger airports. Farrokh and Elhassan agreed that Farrokh should tell his family that he intended to travel to Saudi Arabia to study.
On Jan. 15, 2016, Elhassan picked up Farrokh at his home in Woodbridge and drove him to Richmond to a location approximately one mile from the airport. Farrokh then took another cab to the airport, checked in for his flight, cleared security and was arrested as he was approaching his departure gate.
Farrokh was charged by criminal complaint on Jan. 16, 2016, and faces a maximum penalty of 20 years in prison when sentenced on July 15, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case is being investigated by the FBI’s Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Gordon Kromberg and Dennis Fitzpatrick of the Eastern District of Virginia, along with Trial Attorney D. Andrew Sigler of the National Security Division’s Counterterrorism Section.
Farrokh Plea Agreement
Farrokh Statement of Facts
United States Files Suit Against Savannah River Nuclear Solutions LLC and Fluor Federal Services Inc. Related to Work at the Department of Energy Savannah River SiteRead the Press Release
The Justice Department announced today that the United States has filed a complaint under the False Claims Act in the U.S. District Court for the District of South Carolina against Savannah River Nuclear Solutions LLC (SRNS) and Fluor Federal Services Inc. (FFSI) for allegedly overcharging the Department of Energy under a management and operations contract at the Savannah River Nuclear Site in Aiken, South Carolina. SRNS is a joint venture of FFSI, Newport News Nuclear Inc. and Honeywell International.
The case is captioned United States v. Savannah River Nuclear Solutions and Fluor Federal Services, Inc., 1:16-825-JMC (D.S.C). The claims asserted in the United States’ complaint are allegations only, and there has been no determination of liability.
Two Mexican Nationals Charged with Conspiracy to Provide and Obtain Forced LaborRead the Press Release
Two Mexican nationals, who were working in the Homestead, Florida area and elsewhere, have been charged by indictment with participating in a conspiracy to provide and obtain forced labor.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Agustin Mendez-Vazquez, 43, and his son, Ever Mendez-Perez, 23, both originally of Mexico, were charged by indictment with one count of conspiracy to provide and obtain forced labor, in violation of Title 18, United States Code, Section 1594(b). Agustin Mendez-Vazquez was also charged with one count of providing and obtaining forced labor, in violation of Title 18, United States Code, Section 1589(a). If convicted, Agustin Mendez-Vazquez faces a statutory maximum term of imprisonment of 40 years. Ever Mendez-Perez faces a statutory maximum term of imprisonment of 20 years.
According to court records, Agustin Mendez-Vazquez and Ever Mendez-Perez, who work as unlicensed labor subcontractors on tomato farms in the Homestead area, utilized physical force, threats of physical force, threats of deportation, and debt bondage to maintain control over other migrant workers. Workers under the defendants’ control were beaten if they did not work every day; were subjected to harassment and abuse; and were required to relinquish large portions of their paychecks – sometimes their entire paychecks – to the Mendezes. The defendants are currently being held without bond pending trial.
Mr. Ferrer commended the investigative efforts of ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Benjamin Widlanski.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
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 Men Sentenced to Prison Terms for Murder of Man in Southwest WashingtonRead the Press Release
WASHINGTON – Dominique Holmes, 25, and Gregory Smithwick, 23, both of Washington, D.C., were sentenced today to prison terms of 28 years and six years, respectively, after earlier pleading guilty to charges stemming from the murder of a man in Southwest Washington, U.S. Attorney Channing D. Phillips announced.
Both men pled guilty in January 2016 in the Superior Court of the District of Columbia. Holmes pled guilty to one charge of second-degree murder while armed as well as a charge of armed robbery in an unrelated case. Smithwick pled guilty to acting as an accessory after the fact to armed carjacking in a crime leading up to the murder.
The guilty pleas, which were contingent upon the Court’s approval, called for prison sentences of between 25 and 30 years for Holmes and between five and eight years for Smithwick. The Honorable Lynn Leibovitz accepted the pleas and sentenced the defendants accordingly. Upon completion of their prison terms, the men will be placed on five years of supervised release.
According to the government’s evidence, on Oct. 10, 2014 at approximately 6:30 a.m., Holmes carried out a carjacking in the 2000 block of 37th Street SE. Holmes picked up Smithwick almost immediately after the carjacking. Smithwick got into the driver’s seat and drove away, helping Holmes escape from the area. Approximately 40 minutes after the carjacking, Holmes arrived in the carjacked vehicle in the 100 block of Ivanhoe Street SW. Holmes went up to the apartment unit of the victim, Ricky Kelly. Mr. Kelly, 29, was about to take his children to school, and they were in his car parked just outside of the apartment building. Mr. Kelly was alone inside the apartment. Holmes shot Mr. Kelly nine times with a 9mm handgun inside his apartment. He and Smithwick then fled the scene in the carjacked vehicle.
Shortly after the murder, the carjacked vehicle was spotted, and Smithwick and Holmes led officers on a high-speed chase that ended near Alabama Avenue and 32nd Place SE. Holmes and Smithwick were both immediately arrested.
The armed robbery charge stems from an attack carried out by Holmes early Sept. 27, 2014, in the area of 41st Street and Alabama Avenue SE. The victim was walking toward his parked car. Holmes, who was carrying what appeared to be a firearm, approached the man and demanded that he empty his pockets. The victim turned over his iPhone, some cash, and the keys to the vehicle. Holmes then drove away in the car with the victim’s belongings.
In announcing the sentences, U.S. Attorney Phillips commended the work of the detectives, officers, and others who investigated the case from the Metropolitan Police Department. He also expressed appreciation to the District of Columbia Office of the Medical Examiner. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Lashone Samuels; Victim/Witness Advocates M. Laverne Forrest, Wanda Queen, and Marcia Rinker; Investigative Analyst Zachary McMenamin; Assistant U.S. Attorneys Stephen Rickard and Lauren Bates, who provided appellate guidance, and Assistant U.S. Attorneys Kendra Briggs, Richard DiZinno, and Jeffrey Nestler, who prosecuted the case.
Two Former FedEx Hub Employees, New York Co-Conspirator Plead Guilty in Million-Dollar Shipping Theft SchemeRead the Press Release
Memphis, TN – Two former FedEx employees and a New York co-conspirator who partook in a shipping theft scheme that defrauded FedEx and wireless carriers of more than $1.7 million have pleaded guilty. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the pleas today.
The three defendants are Akeem Gowdy, 23; and Tavaris Mickens, 23; both of Memphis, Tennessee; and Juan Royal, 24, of New York City, New York.
In October 2015, the three defendants, along with two other co-conspirators — Christopher T. Crawford, 31, of Memphis; and Jordan West, 27, of New York City — were indicted for engaging in a conspiracy to commit interstate shipping theft of wireless mobile devices from both Verizon and AT&T. The mobile devices were being shipped throughout the United States by FedEx.
Gowdy, Mickens and Crawford were employed with FedEx during the scheme’s duration. They used fraudulent FedEx corporate shipping labels to over-label boxes of wireless devices. These boxes were diverted to other known and unknown co-conspirators in New York City and other cities through interstate commerce. Each box of merchandise contained thousands of dollars worth of Verizon and/or AT&T wireless mobile devices.
As part of the fraud, Crawford and West sent $10,000 in U.S. currency via FedEx to one another. In mid-2013, Crawford also contacted a FedEx vendor call center in Tucson, Arizona to set up a fraudulent corporate shipping meter account via his wireless mobile telephone.
Each of the defendants knew the wireless devices were stolen when they engaged in acts to perpetrate the crime. Ultimately, the interstate shipping theft scheme defrauded FedEx and the wireless carriers of more than $1.7 million.
On Thursday, March 17, 2016, Royal, Gowdy and Mickens each pled guilty before U.S. District Judge John T. Fowlkes Jr. to one count of interstate shipping theft.
All three defendants are scheduled to be sentenced on Friday, July 8, 2016. Each defendant faces up to 10 years when sentenced. They also face individual fines of up to $250,000.
The case is being investigated by the United States Secret Service, Federal Bureau of Investigations, and Memphis Cargo Theft Task Force.
Assistant U.S. Attorney Damon K. Griffin is prosecuting this case on the government’s behalf.
Three Charged in Arson Fraud Scheme Involving Seven Sacramento Area Commercial BuildingsRead the Press Release
SACRAMENTO, Calif. — Three Sacramento-area men have been charged in a 60-count indictment for a scheme to commit multiple arsons for profit, United States Attorney Benjamin B. Wagner announced.
The indictment returned by a grand jury on February 25, 2016, and unsealed today, charges Jamal M. Shehadeh, 57, of Sacramento, with all counts: seven counts of arson, 52 counts of mail and wire fraud, and one count of money laundering. Brian J. Stone, 57, of Elk Grove, is charged with 13 counts of mail fraud or wire fraud, and Saber A. Shehadeh, 73, of Sacramento, is charged with three counts of mail fraud. As a result of the scheme, the defendants and their associates received over $1.5 million in insurance proceeds.
According to court documents, the defendants participated in an arson fraud scheme that ran from at least December 2009 through September 2013, involving seven fires at six commercial buildings in Sacramento and Carmichael. Jamal Shehadeh owned and operated various businesses, many of which burned in commercial structure fires. Saber Shehadeh owned Tru Value Market and a nearby corner property, which were destroyed in two of the fires. Brian Stone provided business consultant services that included assisting with the insurance claims.
The dates and locations of the fires are as follows:
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1007 E Street and 427 10th St., Sacramento — December 27, 2009
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511 Broadway, Sacramento — June 9, 2010
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427 10th St., Sacramento — August 15, 2010
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6964 65th St., Sacramento — April 23, 2012
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5725 Marconi Avenue, Carmichael — September 24, 2012
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910 University Avenue, Sacramento — October 15, 2012
- 2764 Fulton Avenue, Sacramento — June 16, 2013
According to the indictment, Jamal Shehadeh and others working with him and at his direction obtained insurance policies that covered fire damage for businesses owned and controlled by the defendants and their associates. In some cases, false statements were made to insurance representatives in order to obtain insurance coverage. Once Jamal Shehadeh knew that insurance policies existed, he deliberately set fires or caused fires to be set that damaged the businesses and at least one vehicle.
According to the indictment, after the properties were destroyed and damaged by fire, the defendants submitted insurance claims. Those claims contained false statements regarding the amount, cost, value, and true ownership of property damaged and destroyed in a particular fire, as well as the prior income of the business, the amount of lost business income, and whether a business had reopened.
As part of the scheme, the defendants made false statements regarding the identity of the company doing the post-fire cleanup, the relationship between the insured and the company doing the cleanup, the actual cost of the cleanup, and whether other companies had been consulted to do the cleanup work and had submitted bids and estimates. In some cases, the defendants used a company that Jamal Shehadeh controlled for the cleanup, while misrepresenting to the insurance companies that it was a third-party company.
In furtherance of the scheme, the defendants personally, and through their associates and companies and accounts that they controlled, received insurance proceeds from the insurance companies.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation with assistance from the Sacramento Metropolitan Fire District and the City of Sacramento Fire Department. Assistant United States Attorneys Michael D. Anderson and Christopher S. Hales are prosecuting the case.
If convicted, the defendants face the following possible penalties: The maximum statutory penalty for mail fraud or wire fraud is 20 years in prison and a $250,000 fine. The statutory penalty for arson of property used in commerce is five to 20 years in prison and a fine up to $250,000. There is a mandatory minimum sentence of 10 years in prison for the first count of arson to commit a federal felony, a mandatory 20 years in prison consecutive to any other sentence for each subsequent count and a fine of up to $250,000. The maximum statutory penalty for money laundering is 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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St. Croix Man Sentenced to Nine Months in Prison for Possession with Intent to Distribute MarijuanaRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez sentenced on March 17, 2016, Alva Nicholas, 57, to nine months’ imprisonment and five years of supervised release for possession with intent to distribute marijuana, United States Attorney Ronald W. Sharpe announced. Judge Gomez also ordered Nicholas to pay a $100 special assessment.
On November 4, 2015, Nicholas pleaded guilty to possession with intent to distribute marijuana. According to the plea agreement filed with the court, Nicholas was arrested by Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) agents at the Cyril E. King Airport on St. Thomas, U.S. Virgin Islands, after his arrival on American Airlines flight 2379. Agents were conducting a screening of bags arriving at the airport when they detected an anomaly inside a suitcase bearing Nicholas’s name and flight tag. After further inspection, agents found 3.4 kilograms of marijuana wrapped in plastic inside his suitcase. The bag was then repackaged and placed on the conveyor belt. Nicholas was taken into custody after he collected the suitcase from the conveyor belt. He had previously been convicted of heroin smuggling and sentenced to 10 years’ incarceration.
This case is the result of a joint investigation by HSI and U.S. Customs and Border Protection. It was prosecuted by Assistant United States Attorney Delia Smith.
Saco Man Sentenced to over Four Years for Pharmacy RobberyRead the Press Release
Contact: Jonathan R. Chapman
Assistant United States Attorney
Tel: (207) 780-3257
Portland, Maine: United States Attorney Thomas E. Delahanty II announced that William C. Day, 40, of Saco, Maine was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 51 months in prison and three years of supervised release for pharmacy robbery. Day pleaded guilty to the charge on November 20, 2015.According to court documents, on August 10, 2015, Day entered the Community Pharmacy on Main Street in Saco, vaulted the counter at the back of the store and demanded that employees give him narcotic drugs. Officers of the Saco Police Department responding to a silent alarm spotted Day running away from the pharmacy with the drugs and chased him to a location near School Street. There, the officers arrested Day and recovered most of the stolen drugs.
The investigation of the case was conducted by the Saco Police Department and the Federal Bureau of Investigation.
Rockford Man Sentenced for Illegally Possessing a FirearmRead the Press Release
ROCKFORD — A Rockford man was sentenced today in federal court by U.S. District Judge Frederick J. Kapala for illegally possessing a firearm as a convicted felon.
CLIFFORD HORTON, 28, of Rockford, Ill., was sentenced to 86 months in federal prison, to be followed by 3 years of supervised release. Horton pleaded guilty to the charge on Dec. 15, 2015, and admitted that on Nov. 4, 2014, having previously been convicted as a felon, he possessed a Taurus .380 caliber pistol.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Jeffery Magee, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Gary Caruana, Winnebago County Sheriff; and, Patrick Hoey, Interim Chief of the Rockford Police Department.
The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.
Richmond, New Hampshire Man Pleads Guilty to Causing Misbranded Drugs to Be Introduced into Interstate CommerceRead the Press Release
CONCORD, N.H. –United States Attorney Emily Gray Rice announced that Panos Eliopoulos, age 37, of Richmond, New Hampshire, pleaded guilty before United States Magistrate Judge Andrea K. Johnstone to causing misbranded drugs to be introduced into interstate commerce.
Eliopoulos and his wife, Katie Eliopoulos, have operated the retail establishment, “Phat Stuff”, located at 84 Main Street, Keene, New Hampshire since 2011. In July, 2013, the United States Drug Enforcement Administration (DEA) received information that drug paraphernalia and smokeable synthetic cannabinoid products, commonly known as “spice”, were being sold from Phat Stuff. In August 2013 a DEA agent visited the store and observed a glass display case which contained numerous foil packages marked with various names which the DEA SA believed, based his training and experience, contained synthetic cannabinoids.
As a result of the DEA SA’s observations, on August 9, 2013 a DEA cooperating source (CS), acting at the direction of DEA, entered Phat Stuff and purchased four packets of a substance labeled “Griffon” from an employee of the defendant. Agents examined a packet of “Griffon” and concluded that it was misbranded in that: (1) the product was sold as potpourri when in fact the product was intended for use as a drug for human consumption; (2) its label, in package form, failed to include the name and address of the manufacturer, packer, or distributor; (3) its labeling did not bear adequate directions for use; and (4) its labeling did not bear such adequate warnings against use in those pathological conditions and by children, where its use may be dangerous to health, and against unsafe dosages and methods and duration of administration and application, in such manner or form, as are necessary for the protection of users. The DEA laboratory subsequently identified the substances as PB- 22, which at the time was an analogue of JWH-018, a Schedule I controlled substance.
As part of the plea agreement, Eliopoulos agreed to civilly forfeit to the United States the amount of $10,729.59 as well as a quantity of drug paraphernalia that was seized as part of the search. Eliopoulos is scheduled to be sentenced on June 14, 2016. The plea agreement contains a binding stipulation that the United States will recommend a sentence of one year probation. Eliopoulos was released pending sentencing.
The investigation was conducted by the: United States Drug Enforcement Administration and the Keene, New Hampshire Police Department. Assistant United States Attorney Jennifer Cole Davis is prosecuting the case.
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Republic Woman, Lee's Summit Man Plead Guilty to Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Republic, Mo., woman and a Lee’s Summit, Mo., man have pleaded guilty in federal court to their roles in a conspiracy to distribute large quantities of methamphetamine in Greene, Polk, Christian, Jasper, Laclede and Webster counties.
Kenna Harmon, 37, of Republic, and Carlos Tapia, 41, of Lee’s Summit, pleaded guilty in separate appearances before U.S. District Judge M. Douglas Harpool on Thursday, March 17, 2016.
Harmon pleaded guilty to being a leader, along with her husband, Daniel Harmon, in the drug-trafficking conspiracy as well as a money-laundering conspiracy and to being a felon in possession of a firearm. In total, the Harmon drug-trafficking organization was responsible for the distribution of over 45 kilograms of methamphetamine from June 1, 2013, through Nov. 29, 2014.
Tapia pleaded guilty to his role in the drug-trafficking conspiracy. Tapia admitted that he provided large amounts of methamphetamine to conspirators. Tapia provided approximately 10 pounds of methamphetamine every two weeks during the time of the conspiracy, to individual members of the conspiracy.
Beginning in 2012, the Drug Enforcement Administration, assisted by other agencies, investigated a large-scale methamphetamine distribution network in southwest Missouri involving several sources of supply. The Harmons obtained pound amounts of methamphetamine from sources in Kansas City and St. Louis, Mo., and in Oklahoma for distribution in the Springfield area.
In December 2013, Daniel Harmon was stopped by law enforcement officers outside of St. Louis. During a search of his vehicle, officers discovered approximately four pounds of methamphetamine, $60,000 and a handgun. Daniel Harmon was indicted in the Eastern District of Missouri and pleaded guilty to possessing methamphetamine with the intent to distribute and to being a felon in possession of a firearm.
After Daniel Harmon’s arrest and incarceration, Kenna Harmon continued to lead the drug-trafficking organization in its distribution of methamphetamine. Kenna Harmon directed the organization to purchase large amounts of methamphetamine from various sources of supply and provided distributive amounts of methamphetamine to co-defendants. Kenna Harmon, in order to distribute the large amount of methamphetamine that she was responsible for selling, stored methamphetamine in several residences in Greene and Polk Counties, and directed several individuals to assist in maintaining those residences.
On Nov. 27, 2014, Kenna Harmon was stopped in her blue BMW 545i while traveling in Springfield. During a search of Kenna Harmon’s vehicle, officers discovered a small amount of methamphetamine, $4,604 and marijuana, all of which was found on either her person or within the vehicle. A search warrant was executed at her residence the same day, where agents found approximately $20,000, approximately 5 ½ pounds of methamphetamine and a loaded Jennings .22-caliber pistol (in a nightstand in her bedroom).
Under the terms of her plea agreement, Kenna Harmon must forfeit to the government the house she was building in Halfway, Mo. Kenna Harmon paid approximately $324,185 in cash for the construction of the residence, which was from drug-trafficking proceeds. The proceeds were paid in installments to a local building contractor that Kenna Harmon hired. She told the contractor that she had inherited the cash, which was not true. She used the property to promote her continued sale of methamphetamine by storing methamphetamine at the residence. Harmon must also forfeit a firearm, five vehicles used by the conspiracy to distribute methamphetamine, jewelry purchased with drug proceeds and approximately $61,000.
Under federal statutes, Kenna Harmon is subject to a mandatory minimum sentence of 20 years in federal prison without parole due to her prior felony conviction for drug trafficking, up to a sentence of life in federal prison without parole. Tapia is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole.
The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Randall D. Eggert, Nhan D. Nguyen and Cynthia J. Hyde. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Postal Employee Indicted for Theft of More Than $2 Million in Social Security ChecksRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Stacy Darnell Mitchell (48, Tampa) with theft of government property and theft of mail. If convicted on all counts, he faces a maximum penalty of 15 years in federal prison.
According to the indictment, between in or about January 2012 and in or about October 2012, Mitchell stole Social Security benefits checks worth more than $1,000 from the mail. Richard Lee Anderson, an accomplice of Mitchell who received the checks, recently pleaded guilty to related charges. According to Anderson’s plea agreement, he received benefit checks totaling at least $2,275,000 during the relevant time period. Mitchell worked at the Processing and Distribution Center facility in St. Petersburg.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Social Security Administration - Office of the Inspector General, the U.S. Postal Service - Office of Inspector General, the U.S. Postal Inspection Service, and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Patrick Scruggs.
Philadelphia Woman Charged with Straw Purchasing FirearmsRead the Press Release
PHILADELPHIA - Sabrina Brooks, 34, of Philadelphia, PA, was charged by indictment, filed yesterday, with making false statements to a federal firearms licensee and aiding and abetting possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger. According to the indictment, on October 13, 2015, Brooks purchased two firearms for Nathan Manning, a convicted felon who is charged elsewhere. Brooks also made false statements to a federal firearms licensee in purchasing the firearms: a .380 caliber Magnum Research, Micro Desert Eagle, semi-automatic handgun and a nine-millimeter Ruger, Model SR9, semi-automatic handgun.
If convicted, Brooks faces a maximum statutory sentence of 15-years in prison, up to three years of supervised release, a fine of up to $500,000, and a $200 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney José Arteaga.