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Monday 1 February 2016
Louisville Man Sentenced to 50 Years in Prison Followed by A Lifetime Period of Supervised Release for the Sexual Abuse of A Minor Child and for Sexually Exploiting Ten Minor Children to Produce Visual ImagesRead the Press Release
Sixteen count indictment included forcing a minor child to engage in commercial sex acts with another person
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. announced the 50 year sentence followed by a lifetime period of supervised release today, by Chief District Judge Joseph H. McKinley Jr., of a Louisville man who sexually abused a minor child, forced the minor child to engage in commercial sex acts with another person, and sexually exploited that child and nine other minor children to produce visual images.
Christopher Kosicki, 27, pleaded guilty to 15 charges in a superseding indictment, on July 23, 2015, in U.S. District Court in Owensboro, Kentucky. Further charges included sex trafficking a child under age 14, and aiding and abetting another person to cross a state line with intent to engage in sexual acts with a person who had not attained the age of 12 years. Co-defendant Howard Key Chambers of Oldham County, Kentucky, remains in the custody of the U.S. Marshals Service. Chambers is charged with forcing a minor child to engage in commercial sex acts and engaging in sexually explicit conduct with a minor child to create visual images that can be transported in commerce by any means. Chambers is scheduled for trial in Louisville on April 12th, 2016.
According to the plea agreement, and statements made in court, the criminal activity took place at Kosicki’s Louisville home between September 2012 and September 26, 2014 - when the defendant was arrested through a federal criminal complaint. Kosicki admitted in court to making a 10, then 11-year-old child available to others for sexually explicit activity. Later examination of digital devices and storage media owned by Kosicki revealed his production of sexually explicit images of 10 different children over the course of several years. All of the images were created in Jefferson County, Kentucky.
Law enforcement officials first became aware of Kosicki’s criminal conduct after arresting Raymond Shadburn in Seymour, Indiana, on September 24, 2014, on child exploitation charges. During a post-arrest interview, Shadburn allegedly provided information that led law enforcement to Kosicki’s residence in Jefferson County, Louisville, Kentucky.
Shadburn and Kosicki originally met online when Shadburn responded to a Craig’s List ad placed by Kosicki. In connection with the ad, Shadburn drove from Indiana to Kosicki’s residence in Louisville at least four times beginning in late August, early September 2014. While there, Kosicki made an 11-year-old child available to Shadburn for sexual activity. During one of the visits in September, Shadburn took sexually explicit photographs of the child (Jane Doe 1), in the presence of Kosicki. At least one photo depicted Kosicki and the child. Shadburn took the images with him back to Indiana and later shared the images with other individuals on the Internet (including an undercover police officer in Washington, D.C.). During at least one visit, both men engaged in sexual activity with the child.
In 2013, Kosicki allegedly met co-defendant Howard Key Chambers via Craig’s List. The two communicated online and, eventually, Chambers allegedly travelled from Oldham County, Kentucky, to Louisville, Kentucky, to meet Kosicki at Kosicki’s residence.
Chambers is charged with travelling to Kosicki’s home to engage in sexual activity with the 10-year-old turned 11-year-old child, between six and eight times, from 2013 until August 2014. The two helped each other entice, harbor, provide, obtain, and maintain a person that had not attained the age of 14 years who was caused to engage in commercial sex acts, that is, any sex act, on account of which anything of value is given to and received by any person. On several occasions, Chambers allegedly gave Kosicki money after engaging in sexual activity with the child (age 10 and then 11). On at least one occasion, he (Chambers) is charged with giving money directly to the child after engaging in sexual activity with her. Additionally, on one occasion, Kosicki photographed Chambers allegedly engaging in sexual activity with the child.
This case is being prosecuted by Assistant United States Attorneys Jo E. Lawless and Spencer McKiness and is being investigated by the Indianapolis Police Department, District of Columbia Metro Police, Louisville Metro Police, and the Federal Bureau of Investigation (FBI).
Jury Finds St. George Doctor Guilty of Narcotics Trafficking Offenses After Eight-Day Federal TrialRead the Press Release
SALT LAKE CITY – A jury concluded an eight-day trial in U.S. District Court Thursday evening finding Dr. Simmon Lee Wilcox, age 60, of Las Vegas, guilty of one count of conspiracy to distribute oxycodone and one count of distribution of oxycodone. The jury acquitted Wilcox on three counts of distribution of hydrocodone. The jury deliberated about five hours before returning the verdict.
Evidence at the trial showed Dr. Wilcox wrote about 618 prescriptions resulting in the diversion of approximately 74,000 30-milligram oxycodone pills for non-medical purposes between July of 2010 and March of 2013. Dr. Wilcox wrote hundreds of prescriptions to people using false identifications that were filled at various pharmacies in Utah and Nevada. Those who filled the prescriptions and took possession of the oxycodone either sold it or used it personally.
Five co-conspirators in the case previously pleaded guilty to conspiracy to distribute oxycodone. Benjamin David Grisel, age 49, and Brenda Grisel, age 48, both of Santa Clara; Jeron Scott Hales, age 40, of Hurricane; Jeremy Daniel Perkins, age 36, of Washington; Randall David Ayrton, age 35, of St. George; and Wilcox were initially charged in a 12-count indictment returned by a federal grand jury in October 2013 following an investigation by DEA drug diversion investigators. The first 11 counts of the indictment involved drug trafficking offenses. The final count charged identification document fraud.
As a part of plea agreements reached with federal prosecutors, co-conspirators in the case admitted they conspired with Dr. Wilcox to use his medical license to write prescriptions for oxycodone pills. To facilitate the conspiracy, one of the co-conspirators created false identification documents for the group to use in filling the oxycodone prescriptions at various pharmacies. Co-conspirators in the case are scheduled to be sentenced in February.
“I have talked before about the heroin and opioid tsunami threatening Utah. In 2012, 31.71 pounds of heroin were seized in Utah. In 2014, that number grew to 244.04 pounds,” U.S. Attorney John W. Huber said today. “The 74,000 oxycodone pills that found their way into our communities through the 618 prescriptions Dr. Wilcox wrote are no different than a drug dealer selling heroin on the corner. In fact, these crimes are worse because they abuse the trust we place in physicians. To stop the wave we are seeing, we need to attack every angle of the heroin and opioid problem in our state,” Huber said.
“DEA takes its responsibility to prevent the distribution of dangerous and addictive drugs to those who do not have a medical reason to have them very seriously,” Acting DEA Assistant Special Agent in Charge John Eddington said today. “We are pleased the jury recognized the seriousness of the conduct involved in this case.”
U.S. District Judge Ted Stewart, who presided over the trial, set sentencing for Dr. Wilcox for April 18, 2016, at 10 a.m. Wilcox faces up to 20 years in prison and a fine of $1 million for each of the two drug distribution counts of conviction.
Investment Fund Manager Pleads Guilty to Obstructing Justice in SEC Investigation of His Business ActivitiesRead the Press Release
WASHINGTON – Vineet Kalucha, 51, an investment fund manager from Washington, D.C., pled guilty today to obstructing justice in an investigation into his business activities that was being conducted by the U.S. Securities and Exchange Commission, announced U.S. Attorney Channing D. Phillips and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.
Kalucha pled guilty in the U.S. District Court for the District of Columbia. The Honorable Rosemary M. Collyer scheduled sentencing for June 6, 2016. The charge carries a statutory maximum of five years in prison and potential financial penalties. Under the sentencing guidelines, the parties have agreed that he faces a likely range of 10 to 16 months in prison and a potential fine of $3,000 to $30,000.
A business partner, George Palathinkal, 54, of Singapore, pled guilty in March 2015 to a federal charge of perjury. He is awaiting sentencing before Judge Collyer.
According to the government’s evidence, Kalucha formed Aphelion Fund Management LLC (“Aphelion Management”) in 2012 and was its majority owner, partner and chief investment officer. Palathinkal was the general partner and chief financial officer. The company served as the investment adviser and general partner for two unregistered hedge funds (known as “the Aphelion Funds”).
In 2013, according to the government’s evidence, Kalucha, Palathinkal, and Aphelion Management began soliciting new investors for the Aphelion Funds. Kalucha subsequently provided potential investors with marketing materials for Aphelion Management, using inaccurate performance statistics. Among other things, he altered a report prepared by an accounting firm hired by Aphelion Management to review prior investment performance and caused this report to be sent to prospective investors.
The accounting firm became aware of the misrepresentations and demanded that Kalucha cease distributing the altered report and that he provide notice to those who received it. He incorrectly reported back to the firm that only one copy of the altered report had been distributed.
The U.S. Securities and Exchange Commission began an investigation of Aphelion Management in January 2014, including an investigation into the propriety and reasonableness of payments from Aphelion Management to Kalucha. Kalucha provided investigative testimony before the SEC on Feb. 25, 2014. Among other things, he testified that he had entered into a written promissory note for “about $350,000” with Aphelion Management. Kalucha later told Palathinkal that he had testified before the SEC that there were written promissory notes covering loans that the two of them had purportedly taken from Aphelion Management.
Knowing that these notes did not exist, Kalucha told Palathinkal that he would have Aphelion Management’s outside counsel prepare such written loan documents. Kalucha and Palathinkal later signed two such documents, both said to be promissory notes. One purportedly showed a loan of up to $350,000 for Kalucha and the other was for a loan of up to $200,000 for Palathinkal. Although these documents were actually signed in early March 2014, they were dated January 1, 2013. Kalucha and Palathinkal provided these documents to the SEC.
In announcing the plea, U.S. Attorney Phillips and Assistant Director in Charge Abbate commended the work of those who investigated the case for the FBI’s Washington Field Office. They also expressed appreciation for the assistance provided by the SEC. They acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Document Management Analyst John Lowell and former Assistant U.S. Attorney Bryan Seeley. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Peter C. Lallas, who investigated and prosecuted the case.
Honduran Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE – United States Attorney Emily Gray Rice announced today that Maynor Wenden Aleman-Troches, of Honduras, was sentenced to ten months in federal prison, after pleading guilty to illegally reentering the United States after having been previously deported.
In August 2015, agents from the Department of Homeland Security Immigration and Customs Enforcement - Enforcement and Removal Operations observed the defendant as he was walking down a Manchester street. The agents recognized the defendant from a prior deportation proceeding and initiated an investigation, which resulted in the defendant’s arrest in Manchester on September 13, 2015. A comparison of the defendant’s fingerprints taken when he was arrested confirmed that he had been previously deported in 2006, 2007 and 2009.
On October 27, 2015Aleman-Troches pleaded guilty to illegally re-entering the United States after deportation.
The case was investigated by the Department of Homeland Security and prosecuted by Assistant U.S. Attorney Alfred Rubega.
Hermosa Beach Couple Arrested on Federal Charges Related to Tax Scam and Passing False ‘Checks’ and ‘Bonds’ to Pay Off DebtsRead the Press Release
LOS ANGELES – Two Hermosa Beach residents were taken into custody yesterday after being indicted by a federal grand jury on a host of charges related to a scheme to defraud the Internal Revenue Service, which included passing bogus checks and bonds as a way to pay off debt for themselves and others.
Sean David Morton, 58, and his wife, Melissa Ann Morton, 50, are expected to be arraigned this afternoon in federal court in Los Angeles on a 56-count superseding indictment that was returned by a grand jury on January 27. The couple was arrested by special agents with IRS - Criminal Investigation in San Pedro Sunday morning after disembarking from a “Conspira-Sea Cruise.”
According to the superseding indictment, Sean David Morton filed a series of false income tax returns for the years 2005 and 2010 that sought millions of dollars in refunds. Melissa Morton allegedly filed several false tax returns for the year 2007. The couple “caused multiple copies and multiple versions of their income tax returns to be submitted to various IRS service centers throughout the United States in 2009 and 2010,” according to the indictment, which alleges they attached false Forms 1099-OID to support their claims for refunds.
The indictment specifically alleges that Sean David Morton filed a false 2006 income tax return 2010 that requested a refund of $2,809,921, and that in 2012 he filed a document that sought a tax refund of $1,560,634 for 2006.
In relation to the scheme, the indictment alleges that Sean David Morton on multiple occasions submitted to the IRS documents he called “Coupon for Setoff, Settlement, and Closure” in the amounts of $5,286,867 and $8,429,763. “These fictitious financial instruments were a purported bond in exchange for the refunds they sought from the IRS,” according to the indictment.
“Those who try to defraud the tax system often try to use complicated ‘legal’ filings to hide their true goal – stealing money paid by other taxpayers,” said United States Attorney Eileen M. Decker. “IRS agents and federal prosecutors have the tools to investigate and prosecute these sophisticated schemes, which undermine the entire tax system and ultimately victimize law-abiding taxpayers.”
Melissa Morton allegedly presented to the IRS in 2010 a “Coupon for Setoff, Settlement, and Closure” in the amount of $44,450 as a purported bond in exchange for a $14,450 refund that she sought. And, in 2013, both defendants allegedly presented to the IRS two “Non-Negotiable Discharging Bond and Indemnity” in the amounts of $10 million for Sean David Morton and $600,000 for Melissa Morton.
In relation to the tax returns and other documents submitted to the IRS, the Mortons are each charged with one count of conspiracy to defraud the United States and two counts of making false claims to the United States.
The indictment also charges Sean David Morton and Melissa Morton each with 24 counts of presenting false and fictitious instruments and documents – specifically items called “Non-Negotiable Discharging Bond and Indemnity” – which purported to be actual securities and financial instruments issued under the authority of the United States. These documents were submitted to the IRS, the California Franchise Tax Board, banks, mortgage companies, student loan companies, and county tax collectors, supposedly as a means to pay off debt. Melissa Ann Morton was charged with 25 counts of presenting or passing these documents. The Mortons allegedly also assisted others in presenting these false and fictitious instruments in amounts as high as $1.5 million.
“Driven by insatiable greed and a blatant disregard for the tax code, Mr. and Mrs. Morton have a long history of allegedly filing bogus tax returns and fictitious instruments claiming fraudulent refunds,” stated Erick Martinez, Special Agent in Charge of the IRS - Criminal Investigation. “People who create elaborate schemes that have no purpose other than to defraud the IRS run the very high risk of prosecution.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If they are convicted of the charges in the superseding indictment, Sean David Morton would face a statutory maximum sentence of 650 years in federal prison, and Melissa Morton would face a statutory maximum sentence of 625 years.
The investigation into the Mortons was conducted by IRS - Criminal Investigation.
Hancock County, WV man convicted of possession of child pornographyRead the Press Release
WHEELING, WEST VIRGINIA – Ryan Bobby Schnettler, 25, of Weirton, West Virginia, was convicted of possession of child pornography today in federal court, United States Attorney William J. Ihlenfeld, II, announced.Schnettler was discovered in possession of child pornography in October 2015 in Hancock County, West Virginia. He pled guilty today to an Information charging him with “Possession of Child Pornography.”
Schnettler faces up to 20 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Grand Rapids Man, Carl Luther Thompson II, Sentenced to More Than Eight Years in Prison for Felony Gun and Drug PossessionRead the Press Release
GRAND RAPIDS, MICHIGAN — Carl Luther Thompson II was sentenced to eight years and two months’ federal incarceration after his conviction on two counts of being a felon in possession of a firearm and one count of possessing heroin, cocaine base, and marijuana with intent to distribute. U.S. District Judge Janet T. Neff pronounced the sentence. A jury found Thompson guilty of all three counts on April 10, 2015.
Thompson was convicted after possessing one of two firearms left on a picnic table in Dickinson Buffer Park on Grand Rapids’s southeast side on June 11, 2013. The next day, Thompson got into an altercation with a woman who requested that members of the Madison Avenue street gang move away from her house on Brown Street near Madison Avenue in Grand Rapids. Thompson threatened the woman by brandishing a 9mm semiautomatic pistol and stating, "We own Brown Street." The State was unable to prosecute the felonious assault when the victim recanted at a preliminary hearing out of fear of retaliation. More than a year later, a federal grand jury returned an indictment of Thompson for being a felon in possession of firearms. During his arrest on the federal gun charges, he was found to be in possession of heroin, crack cocaine, and marijuana, which led the grand jury to subsequently bring the drug charges as well.
U.S. Attorney Patrick Miles praised the cooperation of federal, state, and local investigators in prosecuting Thompson. "This conviction and sentence result from cooperation among the Grand Rapids Police Department, the Michigan State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Attorney’s Office in pursuing justice against individuals who destabilize communities through drug dealing and gun violence."
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Grand Rapids Police with assistance from the Michigan State Police. It was prosecuted by Assistant U.S. Attorney Sally J. Berens and former Assistant U.S. Attorney Russell A. Kavalhuna.
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Gaithersburg Man Sentenced to Prison for Selling Heroin to a Customer Who Died from OverdoseRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Nathaniel Wright, Jr., age 58, of Gaithersburg, Maryland today to four years in prison followed by three years of supervised release for conspiring to distribute and possession with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, from at least June 2013 until his arrest in April 2015, Wright distributed heroin to heroin addicts. Wright had many customers who would purchase between one-half to two grams from him a week.
On June 14, 2013, Wright sold an individual a gram of heroin for $100. Later that evening and after ingesting the heroin, the individual died as a result of alcohol and narcotic intoxication.
Wright also admitted that on 16 occasions he sold a total of 22 grams of heroin to two confidential sources.
During his participation in the drug conspiracy, Wright was responsible for distributing between 400 and 700 grams of heroin.
Ronald Bryant, a/k/a “Dean,” age 46, of Montgomery Village, Maryland; Carlos Brandon Peoples, a/k/a “Los,” age 29, of Washington, D.C., and Carlisle Sampson Pipkin II, age 32, of Hanover, Maryland previously pleaded guilty to their participation in the conspiracy. Bryant was sentenced to 46 months in prison. Peoples and Pipkin are scheduled to be sentenced on February 8, 2016 at 10:30 a.m. and March 21, 2016 at 10:00 a.m., respectively.
United States Attorney Rod J. Rosenstein commended the ATF and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Mara Z. Greenberg, who prosecuted the case.
Four sentenced for drug traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Four individuals were sentenced in federal court in Martinsburg today for various drug trafficking offenses, United States Attorney William J. Ihlenfeld, II, announced.
Joseph Perry, 31, of Gerrardstown, West Virginia, attempted to purchase heroin in March 2015 in Berkeley County. He pled guilty in October 2015 to an Information charging him with one count of “Aiding and Abetting Attempted Possession with Intent to Distribute Heroin.” He was sentenced today to 32 months in prison.
Earl Ferguson, 46, of Inwood, West Virginia, sold oxycodone in July 2015 in Berkeley County, West Virginia. He pled guilty in November 2015 to one count of “Distribution of Oxycodone.” He was sentenced today to 21 months in prison.
Elliot Iwon Reed, 32, of Baltimore, Maryland, sold heroin and cocaine in Berkeley County. He pled guilty in October 2015 to one count of “Conspiracy to Distribute Cocaine Base and Heroin.” He was sentenced today to 21 months in prison.
Jesus Demas Valencia, 48, of Martinsburg, sold cocaine in Berkeley County. He pled guilty in October 2015 to one count of “Distribution of Cocaine.” He was sentenced today to 12 months in prison.
Assistant United States Attorneys Paul Camilletti and Anna Krasinski prosecuted Ferguson, Perry, and Valencia on behalf of the government. Assistant U.S. Attorney Jarod Douglas also prosecuted Valencia on behalf of the government. Assistant U.S. Attorney Paul Camilletti and Special Assistant U.S. Attorney Stephanie Taylor, also of the Berkeley County Prosecuting Attorney’s Office, prosecuted Reed on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated each of the defendants. The Federal Bureau of Investigation also investigated Ferguson and Perry.
Chief U.S. District Judge Gina M. Groh presided.
Former Police Officer and School Administrator Sentenced to 48 Months in Prison for Violating Sex Abuse LawsRead the Press Release
LOUISVILLE, Ky. – A Grayson County, Kentucky, former police officer and school administrator was sentenced to 48 months in prison followed by ten years of supervised release today, by Chief District Judge Joseph H. McKinley, for violating federal and state sex abuse laws, announced United States Attorney John E. Kuhn, Jr.
Stephen E. Miller, age 45, pleaded guilty to four counts in a superseding information, on July 30, 2015. Miller pleaded guilty to engaging in abusive sexual contact with three female students and third degree sodomy with a fourth female student. The incidents occurred at Bluegrass Challenge Academy between February and August 2013. Miller is in the custody of the United States Marshall Service.
Miller previously worked as a police officer in Leitchfield, Kentucky. He resigned the position following complaints of inappropriate conduct toward two women. Miller then began working at Bluegrass Challenge Academy, a residential, educational program run by the Kentucky National Guard, located on Fort Knox Military Base. Miller had supervisory authority over the Academy students.
John Smith, who was the director of Bluegrass Challenge Academy during the time, has been indicted for failure to report child abuse.If convicted, he faces a maximum sentence of one year in prison, a fine of up to $100,000, and up to one year of supervised release.
Assistant United States Attorneys Amanda E. Gregory and Stephanie M. Zimdahl are prosecuting the case. The Federal Bureau of Investigation (FBI) with assistance from the Army Criminal Investigation Division conducted the investigation.
Former Maryland Circuit Court Judge Pleads Guilty to Civil Rights ViolationRead the Press Release
The Justice Department announced today that Robert C. Nalley, a former judge in Charles County, Maryland, pleaded guilty to one count of the deprivation of rights under color of law for ordering a deputy sheriff to activate a stun-cuff worn by a pro se criminal defendant during a pre-trial court proceeding.
From 1988 to September 2014, Nalley was a judge of the Circuit Court for Charles County. According to his guilty plea, on July 23, 2014, Judge Nalley presided over the jury selection for the victim, who was representing himself in a criminal proceeding in Charles County court. Before the proceedings began, a deputy sheriff informed Judge Nalley that the victim was wearing a stun-cuff. Nalley was aware that when activated, the stun-cuff would administer an electrical shock to the victim, thereby incapacitating him and causing him pain.
Several minutes after the proceedings had begun, Judge Nalley asked the victim whether he had any questions for the potential jurors. The victim repeatedly ignored Nalley and instead read from a prepared statement, objecting to Judge Nalley’s authority to preside over the proceedings, while standing calmly behind a table in the courtroom. The victim did not make any aggressive movements, did not attempt to flee the courtroom and did not pose a threat to himself or to any other person at any point during the proceedings. Judge Nalley twice ordered the victim to stop reading his statement, but the victim continued to speak.
Judge Nalley then ordered the deputy sheriff to activate the stun-cuff, which administered an electric shock to the victim for approximately five seconds. The electric shock caused the victim to fall to the ground and scream in pain. Judge Nalley recessed the proceedings.
“Under our constitution, judges serve as the guardians and arbitrators of justice,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “When government officials – including judges – violate the rights we entrust them to defend and break the laws we expect them to uphold, they undermine the legitimacy of our justice system.”
“Disruptive defendants may be excluded from the courtroom and prosecuted for obstruction of justice and contempt of court, but force may not be used in the absence of danger,” said U.S. Attorney Rod J. Rosenstein of the District of Maryland.
Sentencing for Judge Nalley is scheduled for March 31, 2016.
The case was investigated by the FBI’s Baltimore Division. The case is being prosecuted by Assistant U.S. Attorneys Kristi C. O’Malley and Daniel N. Gardner of the District of Maryland, and Trial Attorney Mary J. Hahn of the Civil Rights Division's Criminal Section.
Nalley Plea Agreement
Former Juneau Resident Pleads Guilty to Unauthorized Burning of Timber and Failing to Maintain Control of Non-Prescribed FireRead the Press Release
Juneau, Alaska-U.S. Attorney Karen L. Loeffler announced today that a former Juneau resident pled guilty to charges related to a Jan. 15, 2015, unauthorized burning of timber and failure to maintain control of a fire located within the Tongass National Forest.
John H. Shryne, 31, of Olympia, Washington, was arraigned and pled guilty before U.S. Magistrate Judge Leslie C. Longenbaugh on the charges of unauthorized burning of timber and failing to maintain control of a non-prescribed fire, contained in a two-count information. Judge Longenbaugh subsequently sentenced Shryne to pay a $2,400 fine and placed him on one year of probation.
Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, indicated that United States Forest Service (USFS) Law Enforcement had been investigating a number of tree pitch fires occurring on local hiking trails within the Juneau area. On Jan. 15, 2015, Shryne was observed by a USFS Law Enforcement Officer conducting surveillance, entering and subsequently leaving the Tolch Rock Trail within the Tongass National Forest. After observing Shryne and another individual leaving the area, the USFS officer entered the trail and observed a tree on fire approximately 100 yards from the trailhead and a few feet from off the trail. The fire was extinguished and evidence at the scene was collected. On Feb. 13, 2015, Shryne was interviewed by USFS Law Enforcement and admitted he had set the fire at the Tolch Rock Trail on USFS land and admitted to setting several other fires on other trails located within the City and Borough of Juneau.
During sentencing, Judge Longenbaugh noted the seriousness of the offense, as well as the need to address the defendant’s serious substance abuse and mental health issues. Judge Longenbaugh also ordered the defendant to obtain a substance abuse and mental health evaluation and follow their recommendations, as well as, monthly drug testing.
The USFS Law Enforcement conducted the investigation leading to the conviction in this case.
Former Georgia Accountant Pleads Guilty to Filing a False Tax ReturnRead the Press Release
A former certified public accountant in Georgia pleaded guilty today to one count of filing a false tax return, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney John A. Horn of the Northern District of Georgia announced.
According to court documents and information presented in court, Thomas D. Ziff was a licensed certified public accountant in Georgia, and from approximately January 2006 through December 2010, Ziff operated a tax return preparation and accounting business. During that time, Ziff was the trustee of a trust that was associated with the last will and testament of another individual. As the trustee, Ziff opened a bank account in the name of the trust at Wachovia Bank over which he had sole signatory authority; he then proceeded to embezzle and cause to be transferred approximately $300,000 from the trust bank account to other bank accounts that he controlled and then used the funds for his personal use. Ziff failed to report the embezzled funds as income on his federal income tax returns for the years 2008, 2009 and 2010.
Ziff faces a statutory maximum sentence of three years in prison, one year of supervised release and a $250,000 fine. As part of his plea agreement, Ziff also agreed to pay restitution to the Internal Revenue Service (IRS). U.S. District Judge Steve C. Jones of the Northern District of Georgia set sentencing for April 11, 2016.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Horn commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Christopher J. Maietta of the Tax Division and Assistant U.S. Attorney Steven D. Grimberg of the Northern District of Georgia, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Freedom Industries official sentenced for role in chemical spillRead the Press Release
CHARLESTON, W.Va. – A former official of Freedom Industries was sentenced today to three years of probation and a $10,000 fine for a Clean Water Act violation connected to the 2014 Elk River chemical spill, announced Acting United States Attorney Carol Casto. Robert J. Reynolds, of Apex, North Carolina, previously pleaded guilty in federal court to negligently discharging a pollutant in March 2015. Reynolds is one of six former officials of Freedom Industries, in addition to Freedom Industries itself as a corporation, to be prosecuted for federal crimes associated with the chemical spill.
On January 9, 2014, a major chemical leak was discovered in Charleston at the above-ground storage tank area owned and operated by Freedom Industries (Freedom) on the Elk River. Freedom used these storage tanks to keep and process chemicals, and the leak consisted primarily of 4-methylcyclohexane methanol (MCHM), a chemical used in the coal mining industry as a cleansing agent. A significant amount of MCHM leaked into the Elk River, flowed into a water treatment plant, and contaminated the water supply of Charleston and the surrounding areas for several days. Freedom did not have a permit required by law that would have allowed the company to discharge MCHM into the Elk River.
Beginning in 2002, Reynolds worked with Freedom as an environmental consultant and was responsible for developing and maintaining pollution prevention plans. Reynolds admitted that he should have developed and maintained a storm water pollution prevention plan and a groundwater protection plan for the MCHM storage tanks that could have prevented the chemical spill. Freedom did have a permit issued by West Virginia’s Department of Environmental Protection that allowed for the discharge of storm water and groundwater subject to monitoring and reporting requirements. However, this permit did not allow for the discharge of MCHM, and required the development and maintenance of a storm water plan and a groundwater plan. Generally, storm water and groundwater plans identify potential sources of pollution and outline steps to prevent, contain, and reduce pollutants.
Reynolds admitted that he should have known of this requirement. He also admitted that while there was no storm water or groundwater plan in place at Freedom’s facility on the Elk River, there were such plans implemented at another facility operated by Freedom in Nitro. Reynolds even provided training to Freedom’s employees at the Nitro facility on its plans, despite the absence of similar plans at Freedom’s facility by the Elk River.
Reynolds knew of and should have appreciated the hazards associated with MCHM and the need to take reasonable steps to ensure that it did not spill into the Elk River. Reynolds admitted that he carried out his duties without due care for regulatory and environmental compliance, and that his failure to implement a storm water plan was a proximate cause of the 2014 chemical spill of MCHM.
Reynolds is the first defendant sentenced as part of the investigation into the chemical spill. Freedom itself, which has been in bankruptcy since shortly after the chemical spill, pleaded guilty to violating the Clean Water Act, the unlawful discharge of refuse matter in violation of the Refuse Act, and violating an environmental permit. Freedom is scheduled to be sentenced on February 4, 2016.
Charles E. Herzing, of McMurray, Pennsylvania, and William E. Tis, of Verona, Pennsylvania, former owners of Freedom, each pleaded guilty in March 2015 to the unlawful discharge of refuse matter in violation of the Refuse Act. Herzing is scheduled to be sentenced on February 2, 2016. Tis is scheduled to be sentenced on February 8, 2016.
Michael E. Burdette, of Dunbar, a plant manager for Freedom, pleaded guilty in March 2015 to violating the Clean Water Act by negligently discharging a pollutant, and is scheduled to be sentenced on February 4, 2016.
Dennis P. Farrell, of Charleston, a former Freedom president and owner, pleaded guilty in August 2015 to violating the federal Refuse Act and violating a permit by failing to have a pollution prevention plan. Farrell is scheduled to be sentenced on February 11, 2016.
Gary Southern, of Marco Island, Florida, the president of Freedom at the time of the spill, pleaded guilty in August 2015 to violating the Clean Water Act, negligently discharging refuse matter in violation of the Refuse Act, and violating a permit by failing to have a pollution prevention plan. Southern is scheduled to be sentenced on February 17, 2016.
The investigation of the chemical spill was conducted by the Federal Bureau of Investigation and the Environmental Protection Agency’s Criminal Investigation Division. Assistant United States Attorneys Philip H. Wright, Larry R. Ellis, and Eric P. Bacaj, as well as the Environmental Protection Agency’s Regional Criminal Enforcement Counsel Perry D. McDaniel, are handling the prosecutions. United States District Judge Thomas E. Johnston imposed the sentence, and will preside over the remaining sentencing hearings associated with the chemical spill.
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Former Connecticut Resident Admits Defrauding Federal Energy Program of More Than $9 MillionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WALTER CRAIG BRADWAY, 64, formerly of Glastonbury and currently residing in Holmes Beach, Florida, waived his right to indictment and pleaded guilty today in New Haven federal court to fraudulently obtaining more than $9 million in economic stimulus program funds in 2010 and 2011.
According to court documents and statements made in court, in 2009, Congress passed the American Recovery and Reinvestment Act, which included provisions for various economic stimulus programs funded in part or in whole by the United States. These programs included the Specified Energy Property Program administered by the U.S. Department of the Treasury, which was referred to as the “Section 1603 program.” The Section 1603 program, which was administered by the National Renewable Energy Laboratory (“NREL”) in Golden, Colorado, provided funds to reimburse eligible applicants a portion of their costs for installing specific energy properties, including the installation of solar panel projects.
Applicants seeking reimbursement for their energy projects were required to submit supporting documentation including engineer-certified design plans for the project, vendor invoices reflecting the costs of installing the energy property and, for projects that were connected to an existing public utility, an interconnection agreement with that utility. Under the rules of the Section 1603 program, reimbursements could not be made until the energy property in question was completed and placed in service. The Department of the Treasury reimbursed 30 percent of the cost of approved Section 1603 applications.
BRADWAY was the owner and president of Glastonbury-based DataComm Services LLC (“DCS”). In 2010 and 2011, BRADWAY, through DCS, submitted more than 300 applications for Section 1603 reimbursements for solar panel projects in Connecticut, Massachusetts, Florida, South Carolina, Pennsylvania, Rhode Island, Maine and California. Many of these applications were fraudulent, however, because BRADWAY represented that the project was installed and in service when, in fact, the project had not been completed or even begun. BRADWAY also overstated the size and cost of projects in order to increase the reimbursement amount. In connection with many applications, BRADWAY submitted false documentation, including falsified engineer reports and fake interconnection agreements with local utility companies. As a result of these fraudulent applications, BRADWAY received approximately $9,026,637 in funds that he was not entitled to.
BRADWAY pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on April 25, 2016.
As part of his plea, BRADWAY has agreed to restitution in the amount of $8,935,266.50.
This matter is being investigated by the U.S. Department of Treasury – Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Sarah Karwan.
Former Charles County Circuit Court Judge Pleads Guilty to Civil Rights ViolationRead the Press Release
Greenbelt, Maryland – Former Charles County Judge Robert C. Nalley, of La Plata, Maryland, pleaded guilty today to deprivation of rights under color of law for ordering a deputy sheriff to activate a stun-cuff worn by a pro se criminal defendant during a pre-trial court proceeding.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Principal Deputy Assistant Attorney General for the Department of Justice Civil Rights Division Vanita Gupta; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
"Disruptive defendants may be excluded from the courtroom and prosecuted for obstruction of justice and contempt of court, but force may not be used in the absence of danger," said U.S. Attorney Rod J. Rosenstein.
“Under our constitution, judges serve as the guardians and arbitrators of justice,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “When government officials – including judges – violate the rights we entrust them to defend and break the laws we expect them to uphold, they undermine the legitimacy of our justice system.”
From 1988 to September 2014, Nalley was a judge of the Circuit Court for Charles County, Maryland. According to his guilty plea, on July 23, 2014, Judge Nalley presided over the jury selection for the victim, who was representing himself in a criminal proceeding in Charles County court. Before the proceedings began, a deputy sheriff informed Judge Nalley that the victim was wearing a stun-cuff. Judge Nalley was aware that when activated, the stun-cuff would administer an electrical shock to the victim, thereby incapacitating him and causing him pain.
Several minutes after the proceedings had begun, Judge Nalley asked the victim whether he had any questions for the potential jurors. The victim repeatedly ignored Judge Nalley and instead read from a prepared statement, objecting to Judge Nalley’s authority to preside over the proceedings, while standing calmly behind a table in the courtroom. The victim did not make any aggressive movements, did not attempt to flee the courtroom, and did not pose a threat to himself or to any other person at any point during the proceedings. Judge Nalley twice ordered the victim to stop reading his statement, but the victim continued to speak.
Judge Nalley then ordered the deputy sheriff to activate the stun-cuff, which administered an electric shock to the victim for approximately five seconds. The electric shock caused the victim to fall to the ground and scream in pain. Judge Nalley recessed the proceedings.
Nalley faces a maximum sentence of one year in prison followed by one year of supervised release and a fine of up to $100,000. U.S. Magistrate Judge William Connolly has scheduled sentencing for March 31, 2016 at 10:00 a.m.
United States Attorney Rod J. Rosenstein and Principal Deputy Assistant Attorney General Vanita Gupta commended the FBI for its work in the investigation, and thanked Assistant U.S. Attorneys Kristi N. O’Malley and Daniel C. Gardner of the District of Maryland, and Trial Attorney Mary J. Hahn of the Civil Rights Division, who are prosecuting the case.
Florida-Based Centerra Services International Inc. Agrees to Pay $7.4 Million to Settle False Claims Act Allegations Related to Wartime ContractRead the Press Release
Centerra Services International Inc., formerly known as Wackenhut Services LLC, has agreed to pay $7.4 million to resolve allegations that Wackenhut violated the False Claims Act by double billing and inflating labor costs in connection with a contract for firefighting and fire protection services in Iraq, the Department of Justice announced today. Centerra is a security services company headquartered in Palm Beach Gardens, Florida.
“Our military depends on the private sector – both prime contractors and subcontractors – to provide critical services to protect the health and safety of our men and women in uniform,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Those subcontractors who knowingly inflate the costs of these services, which are passed onto the government and the taxpayer, will face appropriate consequences. Today’s settlement demonstrates our continuing vigilance to ensure that our servicemen and women obtain the services they need at the price we bargained for.”
Wackenhut provided U.S. military bases with firefighting and fire protection services under a subcontract with Kellogg Brown & Root Inc. (KBR), the prime contractor for the Army’s contract for logistical support in the military theater, known as LOGCAP III. LOGCAP III is the third generation of contracts under the Army’s Logistical Civil Augmentation Program. The government alleged that from 2008 to 2010, Wackenhut inflated its labor costs by billing the salaries of certain managers as direct costs under the subcontract, when those salaries had already been charged as indirect costs. The government further alleged that Wackenhut artificially inflated its labor rate by counting its costs for holidays, vacation, sick leave, rest and recuperation and other variable labor costs twice in calculating the rate. Wackenhut billed KBR, which then passed on the costs to the government under LOGCAP III.
“Contractors are expected to comply with their statutory obligations and act in good faith when dealing with the U.S. government,” said Special Agent in Charge Janice M. Flores of the Defense Criminal Investigative Service (DCIS) Southwest Field Office. “The DCIS is committed to working with its partner agencies, such as the U.S. Department of Justice, Defense Contract Audit Agency and the U.S. Army Criminal Investigation Command to ensure the integrity of the Defense Department’s procurement process. This settlement demonstrates that combatting fraud, waste and abuse within Department of Defense contracting remains a top priority.”
This settlement resolves a lawsuit filed by whistleblower Gary W. Reno under the qui tam or whistleblower provisions of the False Claims Act. The act permits private individuals to sue on behalf of the government those who falsely claim federal funds, or cause others to do so, and to receive a share of any funds recovered through the lawsuit. Reno will receive $1.332 million as his share of the recovery.
This settlement was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Eastern District of Texas, the Department of Defense Inspector General’s Office, the Defense Criminal Investigative Service and the Defense Contract Audit Agency.
The case is captioned Reno v. Kellogg Brown & Root, Inc. and Wackenhut Services, LLC, et al., Case No. 1:10-CV-504 (E.D. Tex.). The claims resolved by the settlement are allegations only; there has been no determination of liability.
Florida Man Sentenced for His Role in Fraudulent Tax Return SchemeRead the Press Release
Contact Person: Benjamin Garner (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Amondo Samuel Burke of Tampa, Florida was sentenced to 33 months’ incarceration in federal court. On May 28, 2015, Burke pled guilty to one count of theft of government funds, in violation of Title 18, United States Code, Section 641, and one count of possession of fifteen or more unauthorized devices, in violation of Title 18, United States Code, Section 1029(a)(3). Senior United States District Judge Margaret B. Seymour sentenced Burke to 33 months’ imprisonment followed by a three-year term of supervised release. Judge Seymour also ordered Burke to pay restitution to the Internal Revenue Service in the amount of $111,228.00.
Evidence presented at the guilty plea hearing established that, in February 2012, deputies with the Kershaw County Sheriff’s Office executed a traffic stop of Burke’s vehicle for a moving violation. During a search of Burke’s vehicle, deputies found two lap-top computers, fifty-two pre-paid debit cards in the names of other individuals, and seventy three medical intake forms from a drug treatment facility in Philadelphia. Burke later admitted to running a criminal tax scheme whereby he would use the personal identifying information of unsuspecting individuals to file false tax returns and have the fraudulent returns loaded onto pre-paid debit cards. By executing this scheme, Burke received a total of $111,228.00 in fraudulently obtained tax refunds from the Internal Revenue Service.
The case was investigated by agents of the Internal Revenue Service Criminal Investigations with the assistance of the Kershaw County Sheriff’s Office. Assistant United States Attorney Ben Garner of the Columbia office is prosecuting the case.
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Federal Jury Finds Cape Coral Man Guilty of Illegal Firearm PossessionRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Michael Terrill Faircloth (58, Cape Coral) guilty of possessing a firearm and ammunition after being convicted of a felony offense. He faces a maximum penalty of 10 years in federal prison. A sentencing hearing is scheduled for May 2, 2016.
Faircloth was indicted on July 9, 2014.
According to testimony presented at trial, prior to May 21, 2014, the date of the offense, Faircloth had been convicted of felony offenses, and was wanted on an active arrest warrant. Upon receiving information of his possible location, law enforcement officers from the Florida Regional Fugitive Task Force, the United States Marshals Service, and the Cape Coral Police Department conducted an operation to arrest Faircloth. When law enforcement officers arrived to execute the arrest, they witnessed Faircloth, who was standing in a neighbor’s yard, holding a firearm in his back waistband. As the officers approached Faircloth, he fled a short distance, threw the loaded gun to the ground, and surrendered.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Charles Schmitz.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Federal Indictment Charges 12 in Methamphetamine Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Twelve defendants have been charged in a federal indictment, partially unsealed on Friday, with felony offenses stemming from their role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Eleven defendants, all from the Lubbock, Texas, area, were arrested last Thursday in a joint operation by the Federal Bureau of Investigation, Homeland Security Investigations, Immigration and Customs Enforcement, the U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshals Service, the Texas Department of Public Safety, the Lubbock County Sheriff’s Office and the Lubbock Police Department. Those arrested made their initial appearances Friday afternoon before U.S. Magistrate Judge E. Scott Frost, and most remain in federal custody. Three defendants are set for detention hearings, and one defendant remains a fugitive.
In connection with the takedown, law enforcement seized approximately one kilogram of methamphetamine, 13 firearms, ammunition and several items of stolen property.
The indictment charges each of the following defendants with one count of conspiracy to distribute and possess with intent to distribute methamphetamine:
Isabel Soto, 28
Veronica Sanchez Lopez, 37
Monty Fred Humble, 35
Martin Leonard Lomas, 34
Michael Brent Watson, 33
Joe Louis Lara, 29
Cruz Lee Betancur, 32
Richard Luke Elam, 49
Jonathon Christopher Chapa, 33
Christopher Ray Lovington, 29
Erica Dominguez, 36In addition, most of the defendants are charged with at least one substantive count of distribution and possession with intent to distribute methamphetamine and aiding and abetting. Defendant Joe Louis Lara is also charged with two firearms offenses – one count of possession of firearms in furtherance of a drug trafficking crime and aiding and abetting and one count of being a convicted felon in possession of firearms and aiding and abetting.
The indictment alleges that the defendants conspired with, among others, three recently-convicted/sentenced defendants who were sent by the Sinaloa Cartel, an international drug trafficking, money laundering, and organized crime syndicate, to Lubbock to facilitate the distribution of methamphetamine in Lubbock for the cartel. Each of these three below-listed defendants pleaded guilty last year to one count of possession with intent to distribute 500 grams or more of methamphetamine and aiding and abetting and was sentenced last month as follows:
Juan Carlos Pinales, 23, sentenced to 151 months in federal prison
Ramon Osvaldo Escobar-Robles, 25, sentenced to 78 months in federal prison
Jesus Mario Moreno-Perez, 24, sentenced to 120 months in federal prisonA federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the conspiracy count carries a maximum statutory penalty ranging from 20 years to life in federal prison and a $1 million to $10 million dollar fine. The other drug counts carry a maximum statutory penalty ranging from 20 years to life imprisonment. One firearm count carries a statutory penalty of not less than five years or more than life in federal prison and a $250,000 fine. The other firearm count carries a statutory penalty of not more than 10 years in federal prison and a $250,000 fine
Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
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Fayetteville Man Sentenced to over 11 Years in Federal Prison for Immigration and Drug Trafficking OffenseRead the Press Release
Acting United States Attorney Kenneth Elser
Western District of Arkansas
_______________________________________________________FOR IMMEDIATE RELEASE CONTACT: Joyce Snow
Febryary 1, 2016 PHONE: (479) 494-4066TWITTER: @WDARnews
FAYETTEVILLE MAN SENTENCED TO OVER 11 YEARS IN FEDERAL PRISON FOR IMMIGRATION AND DRUG TRAFFICKING OFFENSE
Fayetteville - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Melquaides Lopez-Del Angel, aka Eduardo Lopez-Corpus, aka Nacho, age 40, of Fayetteville, was sentenced to 135 months in federal prison on one count of Possession with Intent to Distribute More than 500 Grams of a Mixture or Substance Containing Methamphetamine in violation of 21 U.S.C. 841(a) and (b)(1)(A)(viii) and 120 months on one count of Illegal Reentry by Removed Alien Following a Felony Conviction. Lopez’s sentence will run concurrently and be followed by five years of supervised release. The Honorable Timothy O. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, Lopez was caught by the Benton County Sheriff’s Office and the Drug Enforcement Administration (DEA) in the parking lot of a Rogers, Arkansas restaurant waiting to make a delivery of methamphetamine. A search of the vehicle in which he was traveling yielded what was later confirmed to be 646 grams of actual methamphetamine. When interviewed by investigators, Lopez admitted he had come to the restaurant to deliver the methamphetamine to another person, and that he had done so on two or three previous occasions. After arrest, it was also determined by Immigrations and Customs Enforcement that Lopez had been previously removed from the United States by deportation in 2013 and was currently in the country without lawful permission. Lopez pleaded guilty to the charges in September, 2015.
This case was investigated by the Benton County Sheriff’s Office, the Drug Enforcement Administration, and Immigrations and Customs Enforcement. Assistant United States Attorney Brandon Carter prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Executive Office for Immigration Review Swears in Nine Immigration JudgesRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced the investiture of nine immigration judges. Acting Chief Immigration Judge Print Maggard presided over the investiture during a ceremony held Jan. 29, 2016, at the U.S. Court of Appeals for the Armed Forces in Washington D.C.
After a thorough application process, Attorney General Loretta E. Lynch appointed Xiomara Davis-Gumbs, Jennifer M. Gorland, Denise C. Hochul, Mark J. Jebson, Margaret M. Kolbe, Ramin Rastegar, Shifra Rubin, Meredith B. Tyrakoski, and Daniel H. Weiss to their new positions.
“Our agency continues to work hard to hire highly qualified immigration judges who will help to decrease our pending caseload,” said Maggard. “With these nine new immigration judges, our immigration judge corps now totals 254, and we will continue adding to this number throughout this year to further enhance EOIR’s capacity to meet the tremendous challenges we face.”
Xiomara Davis-Gumbs, Immigration Judge, Dallas Immigration Court
Attorney General Loretta E. Lynch appointed Judge Davis-Gumbs to begin hearing cases in January 2016. Judge Davis-Gumbs earned a Bachelor of Science degree in 1983 from John Jay College of Criminal Justice, City University of New York and a Juris Doctor in 1992 from Touro College, Jacob D. Fuchsberg Law Center. From 2008 through 2015, Judge Davis-Gumbs served in the Office of the Chief Counsel, U.S. Citizenship and Immigration Services (USCIS), U.S. Department of Homeland Security (DHS), in Dallas, in various capacities including deputy chief counsel, and previously as associate counsel, Central Law Division, and as associate counsel, Training and Knowledge Management Division. From 2002 through 2008, Judge Davis-Gumbs served as assistant chief counsel in the Office of Principal Legal Advisor, U.S. Immigration and Customs Enforcement, DHS, in Newark, N.J. From 1997 through 2002, Judge Davis-Gumbs served as an asylum officer in the Office of International Affairs, in the former Immigration and Naturalization Service, U.S. Department of Justice (DOJ), in Rosedale, N.Y. From 1994 through 1997, Judge Davis-Gumbs served as special assistant/litigation coordinator for the Federal Bureau of Prisons, DOJ, in New York, N.Y. From 1993 through 1994, Judge Davis-Gumbs served as a law clerk, and from 1988 through 1993, as an inmate grievance counselor in the Trial Unit, New York City Department of Corrections. Judge Davis-Gumbs is a member of the New York Bar.
Jennifer M. Gorland, Immigration Judge, Detroit Immigration Court
Attorney General Loretta E. Lynch appointed Judge Gorland to begin hearing cases in January 2016. Judge Gorland received a Bachelor of Arts degree in 1982 from the University of Michigan and a Juris Doctor in 1985 from Wayne State University School of Law. From 1989 through 2015, Judge Gorland served in the U.S. Attorney’s Office for the Eastern District of Michigan, in Detroit, as an assistant U.S. attorney in various capacities, including: first assistant U.S. attorney; chief, General Crimes Unit; deputy chief, and previously as assistant U.S. attorney, General Crimes Unit; assistant U.S. attorney, Economic Crimes Unit; and, as assistant U.S. attorney, Civil Division. From 1985 through 1989, Judge Gorland served as an associate for Pepper, Hamilton and Scheetz, in Detroit. Judge Gorland is a member of the State Bar of Michigan.
Denise C. Hochul, Immigration Judge, Buffalo Immigration Court
Attorney General Loretta E. Lynch appointed Judge Hochul to begin hearing cases in January 2016. Judge Hochul received a Bachelor of Arts degree in 1980 from the State University of New York at Buffalo and a Juris Doctor in 1985 from the Ohio Northern University, Claude W. Pettit College of Law. From 1996 through 2015, Judge Hochul served in the Office of the Chief Counsel, U.S. Immigration and Customs Enforcement (ICE), Department of Homeland Security, in Buffalo, in various capacities, including: senior attorney; assistant chief counsel; designated human rights law special interest attorney; designated national security special interest attorney; member of the Trial Advocacy Training Team; and as a special assistant U.S. attorney in the U.S. Attorney’s Office for the Western District of New York. From 1987 through 1996, she served as an assistant district attorney in the Erie County District Attorney’s Office in Buffalo. Judge Hochul is a member of the New York Bar.
Mark J. Jebson, Immigration Judge, Detroit Immigration Court
Attorney General Loretta E. Lynch appointed Judge Jebson to begin hearing cases in January 2016. Judge Jebson received a Bachelor of Arts degree in 1990 from the University of California, Los Angeles, a Juris Doctor in 1994 from the John Marshall Law School, and a Master of Laws degree in 1995 from the New York University School of Law. From 2003 through 2015, Judge Jebson served in the Office of Chief Counsel, U.S. Immigration and Customs Enforcement (ICE), Department of Homeland Security, in Detroit, in various capacities, including: senior attorney, deputy chief counsel, assistant chief counsel, and as a special assistant U.S. attorney in the U.S. Attorney’s Office for the Eastern District of Michigan. From 2002 through 2003, Judge Jebson served as an assistant U.S. attorney in the U.S. Attorney’s Office for the Northern District of Texas, in Dallas. From 1997 through 2002, Judge Jebson served as an assistant district counsel in the former Immigration and Naturalization Service, U.S. Department of Justice, in Detroit. From 1996 through 1997, he served as a judicial law clerk for the Michigan Supreme Court, and from 1995 through 1996, as a prehearing attorney for the Michigan Court of Appeals, in Detroit. Judge Jebson is a member of the Illinois State Bar and the State Bar of Michigan.
Margaret M. Kolbe, Immigration Judge, New York Immigration Court
Attorney General Loretta E. Lynch appointed Judge Kolbe to begin hearing cases in January 2016. Judge Kolbe received a Bachelor of Arts degree in 1987 from the University of Cincinnati, a Master of Arts degree in 1989 from the University of Cincinnati, and a Juris Doctor in 1996 from the Notre Dame Law School. From 2002 through 2015, Judge Kolbe served as assistant U.S. attorney in the U.S. Attorney’s Office for the Eastern District of New York, in Brooklyn, N.Y. From 1996 through 2002, Judge Kolbe served as an attorney advisor for the Board of Immigration Appeals, Executive Office for Immigration Review, U.S. Department of Justice, in Falls Church, Va., and from 1991 through 1993, as a Peace Corps volunteer in Gabon, Africa. Judge Kolbe is a member of the Ohio Bar.
Ramin Rastegar, Immigration Judge, Newark Immigration Court
Attorney General Loretta E. Lynch appointed Judge Rastegar to begin hearing cases in January 2016. Judge Rastegar received a Bachelor of Science in 1991 from George Mason University and a Juris Doctor in 1995 from New York Law School. From 2000 through 2015, Judge Rastegar served as assistant chief counsel in the Office of the Chief Counsel, U.S. Immigration and Customs Enforcement, Department of Homeland Security, in New York, N.Y. From 1997 through 2000, Judge Rastegar served as an associate at Barst and Mukamal LLP, in New York, N.Y., and from 1996 through 1997, as an associate in the Law Offices of Ronald Salomon, in New York, N.Y. Judge Rastegar is a member of the Connecticut and New York Bars.
Shifra Rubin, Immigration Judge, Newark Immigration Court
Attorney General Loretta E. Lynch appointed Judge Rubin to begin hearing cases in January 2016. Judge Rubin received a Bachelor of Arts degree in 1992 from Rutgers University and a Juris Doctor in 2002 from Rutgers School of Law. From 2003 through 2015, Judge Rubin served in various capacities for the Immigration Representation Project, Legal Services of New Jersey, in Edison, N.J., including serving as a senior attorney, supervising attorney, and staff attorney. Judge Rubin is a member of the New Jersey Bar.
Meredith B. Tyrakoski, Immigration Judge, San Antonio Immigration Court
Attorney General Loretta E. Lynch appointed Judge Tyrakoski to begin hearing cases in January 2016. Judge Tyrakoski received a Bachelor of Arts degree in 1996 from Northwestern University and a Juris Doctor in 2003 from the William and Mary School of Law. From 2006 through 2015, Judge Tyrakoski served as an assistant U.S. attorney in a number of U.S. Attorney’s Offices throughout the country, including the U.S. Attorney’s Office for the District of Nebraska in Omaha, the U.S. Attorney’s Office for the Western District of Texas in El Paso, Texas, and as special assistant attorney in the U.S. Attorney’s Office for the Central District of California in Los Angeles, Calif. From 1997 through 2008, Judge Tyrakoski served in the U.S. Marine Corps in various capacities, including: staff judge advocate, legal assistance attorney, defense counsel, student judge advocate, operations officer, public affairs officer, and supply officer. Judge Tyrakoski is a member of the State Bar of Texas and the Virginia Bar.
Daniel H. Weiss, Immigration Judge, Dallas Immigration Court
Attorney General Loretta E. Lynch appointed Judge Weiss to begin hearing cases in January 2016. Judge Weiss received a Bachelor of Arts degree in 1986 from the University of Pennsylvania and a Juris Doctor in 1990 from the University of Maryland School of Law. From 2010 through 2015, Judge Weiss served as senior trial attorney in the Human Trafficking Prosecution Unit, Criminal Section, Civil Rights Division, U.S. Department of Justice (DOJ), in Washington, D.C. From 2005 through 2010, Judge Weiss served as deputy chief, and, previously as a trial attorney, in the Special Litigation Section, Civil Rights Division, DOJ. From 1992 through 2000, Judge Weiss served as an assistant public defender II in the Appellate Trials Division, State of Maryland Office of the Public Defender, in Baltimore. From 1991 through 1992 Judge Weiss served as an attorney at the Fidelity & Deposit Companies of Maryland, in Baltimore, and from 1990 through 1991, as law clerk to the Honorable Ellen Hollander, Circuit Court for Baltimore City. Judge Weiss is a member of the District of Columbia and Maryland Bars.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR's immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR's Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
District Election Officer and Primary Day Hotline Established by United States Attorney’s OfficeRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced the establishment of a Primary Day hotline that will be monitored throughout Primary Day on February 9, 2016. The hotline number, which will be active on Primary Day, is 603-230-2503.
Assistant United States Attorney Mark S. Zuckerman of the United States Attorney’s Office will oversee complaints of election fraud and abuse of voting rights in consultation with Justice Department Headquarters in Washington, D.C. In order to respond to these complaints and address any abuse of voting rights, AUSA Zuckerman will be on duty while the polls are open.
United States Attorney Rice said, “The right to vote without interference or discrimination, and to have that vote counted, is the bedrock on which our democracy is built. Information about discrimination or election fraud should be reported immediately to my office, the FBI, or the Civil Rights Division. The Department of Justice and the U.S. Attorney’s Office will act promptly and aggressively to ensure that those who seek to undermine the integrity of the election process are brought to justice.”
Complaints about ballot access problems or discrimination may be made directly to the Civil Rights Division’s Voting Section in Washington, D.C. at 1-800-253-3931.
A Federal Election Fraud Fact Sheet that explains federal criminal jurisdiction in connection with elections and voting rights is posted on the United States Attorney’s website: www.usdoj.gov/usao/nh.
Department of Justice Launches Comprehensive Review of the San Francisco Police DepartmentRead the Press Release
The Department of Justice today announced the launch of an independent and comprehensive review of the San Francisco Police Department. This review will be conducted by the Office of Community Oriented Policing Services (COPS Office) through its Collaborative Reform Initiative.
The review is in response to requests made by city officials and community members asking that the Justice Department conduct an in-depth look into the use of force policies and practices of the San Francisco Police Department.
“The Department of Justice is dedicated to upholding the highest standards of law enforcement throughout the United States, and this Collaborative Reform Initiative is a vital component of that effort,” said Attorney General Loretta E. Lynch. “In the days and months ahead, we will examine the San Francisco Police Department’s current operational policies, training practices and accountability systems, and help identify key areas for improvement going forward. I am confident that together we can make certain that our officers have the tools and training they need to do their jobs, and that every member of the San Francisco community has the protection and service they deserve.”
Director Ronald Davis of the COPS Office, the Justice Department agency responsible for collaborative review, and Acting U.S. Attorney Brian J. Stretch of the Northern District of California, were joined by San Francisco city and law enforcement leaders to announce the launch of the collaborative reform process.
“As part of the collaborative reform process, the Justice Department will conduct a thorough, independent and objective assessment of the San Francisco Police Department’s policies, practices and accountability systems,” said Director Davis. “The findings will allow the police department to implement best practices in law enforcement and empower the community to hold the department to those standards.”
“San Francisco Mayor Ed Lee and San Francisco Police Department Chief Greg Suhr have jointly requested this collaborative review and have publicly committed to providing the resources necessary for its successful completion,” said Acting U.S. Attorney Stretch. “The Department of Justice will engage the police department, the Mayor's office, and the communities they serve in a constructive assessment. We are also committed to monitoring and assisting with the implementation of any reforms recommended by the COPS Office.”
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The Collaborative Reform Initiative for Technical Assistance is an independent and objective way to transform a law enforcement agency through an analysis of policies, practices, training, tactics and accountability methods around key issues facing law enforcement today. The initiative is designed to provide technical assistance to agencies facing significant law enforcement-related issues. Using subject matter experts, interviews and direct observations, as well as conducting extensive research and analysis, the COPS Office assists law enforcement agencies in enhancing and improving their policies and procedures, operating systems and professional culture.
Following the assessment, the Justice Department will issue a public report detailing the findings of the assessment, along with specific recommendations for improvement. The COPS Office will assess progress made in implementing those recommendations over an 18-month period following the initial assessment. Two progress reports will be released tracking implementation of those recommendations.
The COPS Office is currently providing collaborative reform in Spokane, Washington; Philadelphia; St. Louis County, Missouri; Salinas, California; Fayetteville, North Carolina; Calexico, California; and Milwaukee, Wisconsin, and has completed the process in Las Vegas.
The COPS Office, headed by Director Ronald Davis, is a federal agency responsible for advancing community policing nationwide. Since 1995, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 127,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
Darkode Criminal Forum Member Sentenced to 27 Months in PrisonRead the Press Release
PITTSBURGH - A resident of Indianapolis, Indiana, has been sentenced in federal court to 27 months imprisonment to be followed by one year supervised release, on his conviction of violating the CAN-SPAM ACT, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Phillip Fleitz, 31. Fleitz is one of 12 individuals charged in connection with a significant computer hacking forum known as Darkode, which has been dismantled.
According to information presented to the court, Fleitz knowingly used a protected computer to relay or retransmit multiple commercial electronic mail messages with the intent to deceive or mislead recipients.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Phillip Fleitz.
Cottage Hills Woman Sentenced on Healthcare Fraud ChargeRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today, that on January 29, 2016, Lisa Jorden, 50, of Cottage Hills, Illinois, pled guilty and was sentenced in the U.S. District Court in East Saint Louis, Illinois, on the charge that she engaged in a scheme to steal from a health care program. The district court sentenced Jorden to five years of probation. She is also ordered to pay $16,828.00 in restitution to the Home Services Program and a $100.00 special assessment.
Court records indicate that Jorden admitted that she had submitted false and fraudulent bills in relation to her alleged performance of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. Jorden admitted to falsely billing the program between February 14, 2013 and August 15, 2014, when she purportedly rendered personal assistant services to customers when, in fact, she had not. As a result, Jorden improperly billed hours of services and obtained $16,828.00 in payments for services not performed.
The investigation was conducted by the U.S. Department of Health and Human Services - Office of Inspector General, the Illinois State Police - Medicaid Fraud Control Bureau, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney William E. Coonan.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Centralia Man Sentenced for Meth ConspiracyRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Joseph Lee Smith, 35, of Centralia, Illinois, was sentenced today to 36 months in federal prison, to be followed by 4 years of supervised release, a $500 fine and a $200 special assessment. There is no parole in the federal system. Sentencing followed Smith’s September 15, 2015, guilty plea to Conspiracy to Manufacture and Distribute Methamphetamine, and Possession of Pseudoephedrine Knowing It Would Be Used to Manufacture Methamphetamine.
According to court documents, from approximately December 2012, to February 21, 2014, a conspiracy to manufacture methamphetamine was operating in Marion, Clinton and Jefferson Counties. Smith participated in the conspiracy by providing pills containing pseudoephedrine to his co-conspirators in exchange for cash or drugs, knowing the pills would be used in the manufacture of methamphetamine.
Information leading to the conviction of Smith was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team, and the Centralia Police Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
California Man Operating Phone Room in Debt Relief Scam Pleads Guilty to Defrauding ConsumersRead the Press Release
An Orange County, California, man pleaded guilty today for his role in operating fraudulent debt relief firms that offered to settle credit card debts but instead took victims’ payments as undisclosed up-front fees, the Justice Department and U.S. Postal Inspection Service announced.
Jeremy Nelson, 30, pleaded guilty to one count of an indictment alleging conspiracy to commit mail fraud and wire fraud in connection with companies known as Nelson Gamble & Associates (Nelson Gamble) and Jackson Hunter Morris & Knight LLP (Jackson Hunter). According to the indictment, Nelson and his employees portrayed the debt relief companies as law firms and attorney-based companies that would negotiate favorable settlements with creditors. Clients made monthly payments expecting the money to go toward settlements. Nelson and his co-conspirators instead took at least 15 percent of the total debt as company fees, with the first six months of payments going almost entirely toward undisclosed up-front fees.
“Debt relief scams prey on vulnerable consumers trying to climb out of tough financial situations,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Justice Department will continue to investigate those who take advantage of consumers facing hard times, and prosecute unlawful schemes that bleed desperate consumers of their remaining resources.”
“This scheme victimized people already in financial distress,” said U.S. Attorney Eileen M. Decker of the Central District of California. “As today’s guilty plea shows, the Justice Department is committed to protecting consumers, particularly those who are vulnerable to fraud schemes designed to prey upon people already in perilous economic condition.”
“Protecting our customers from fraud is one of our agency’s biggest priorities,” said Acting Inspector in Charge Daniel Brubaker of the U.S. Postal Inspection Service. “The U.S. Postal Inspection Service will continue to vigorously pursue those who use our nation’s mail system to commit fraud or other illegal activity.”
Jeremy Nelson’s scheme ran from February 2010 to September 2012. Nelson admitted he changed the name of his company from Nelson Gamble to Jackson Hunter in 2011. Nelson and his co-conspirators told victims that Nelson Gamble had gone bankrupt and that Jackson Hunter was an unrelated company that had taken over some of the accounts. Nelson and his co-conspirators blamed past problems on Nelson Gamble and denied requests for refunds of money paid to Nelson Gamble. Some victims who previously demanded refunds accepted the explanation that Nelson Gamble was bankrupt and did not pursue complaints against Jackson Hunter.
Nelson faces a statutory maximum penalty of 20 years in prison. The court has not yet scheduled a sentencing date before U.S. District Judge Dale S. Fischer of the Central District of California in Los Angeles.
One of Nelson’s co-defendants, Elias Ponce, previously pleaded guilty in October 2015. Two other defendants, Athena Maldonado and Christopher Harati, pleaded guilty in June 2015 in a related case. Trial against the remaining defendant charged in the scheme, John Vartanian, is set for Sept. 13 in Los Angeles.
In September 2012, the Federal Trade Commission brought a civil case against Nelson and his companies, alleging that the defendants misrepresented debt relief services offered to consumers. (See https://www.ftc.gov/enforcement/cases-proceedings/122-3030-x120048/nelson-gamble-associates-llc-et-al). The case was settled by entry of a consent decree in August 2013.
Principal Deputy Assistant Attorney General Mizer commended the U.S. Postal Inspection Service team assigned to the Civil Division’s Consumer Protection Branch for their investigative efforts and thanked the U.S. Attorney’s Office of the Central District of California for their contributions to the case. The case is being prosecuted by trial attorneys Alan Phelps and James Harlow of the Consumer Protection Branch.
Buffalo Man Indicted, Charged with Multiple Bank RobberiesRead 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 a federal grand jury returned a 12 count indictment charging Casey Swain, 37, of Buffalo, NY, with committing bank robberies, entering banks with intent to commit larceny, and bank larcenies. The charges carry a maximum penalty of 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that according to the indictment, on four different dates, the defendant robbed First Niagara Bank branches in Buffalo, Lackawanna, Niagara Falls, and Kenmore. Each of the four robberies involved the defendant passing similar notes which demanded that the money provided contain no bank security devices and instructed the victims not to make any eye contact or sudden movement or things would turn bad.
The defendant was arraigned before U.S. Magistrate Judge H. Kenneth Schroeder, Jr., and is being detained pending further proceedings.
The indictment is the culmination of an investigation by the Federal Bureau of Investigation, under the direction on the part of Adam S. Cohen, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Lackawanna Police Department, under the direction of Chief James Michel, the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto, and the Kenmore Police Department, under the direction of Chief Peter Breitnauer.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Belleville Man Sentenced for Robbery of Imo’s DriverRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today, that on Friday, January 29, 2016, Gregory Morgan, 20, of Belleville, Illinois, was sentenced in federal District Court for obstructing commerce by robbery and for carrying a firearm during a robbery. Morgan was sentenced to a 111 months in federal prison, to be followed by two years of supervised release, and a $200 special assessment. The District Court also ordered that Morgan pay the victims of the robbery $45 in restitution.
On January 23, 2015, Morgan called an Imo’s Pizza restaurant and placed a delivery order for pizza and chicken wings. Morgan, wearing black pants, a black sweatshirt and a dark colored bandana covering his face, lay in wait for the driver. When the Imo’s Pizza delivery driver arrived, Morgan brandished a .22 caliber semi-automatic weapon and demanded the pizzas, chicken wings and any money the driver had. Morgan then fled with the food and $45 in cash.
This investigation was conducted by the Federal Bureau of Investigation and the Belleville Police Department and was prosecuted by Assistant United States Attorneys Laura Reppert and Jonathan Drucker.
Batavia Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Gordon L. Montgomery, 57, of Batavia, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to conspiracy to distribute, and possess with intent to distribute, 50 grams or more of methamphetamine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, a fine of $2,000,000, or both.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that the charges resulted from a joint federal, state and local investigation, which revealed that Montgomery was responsible for traveling to California on two occasions in 2007 and obtaining quantities of methamphetamine from Richard W. Mar, the President of the Hell’s Angels, Monterey (CA) Charter, and transporting the methamphetamine back to the Western District of New York, where it was distributed to others. The defendant made the trips to California on behalf of two other co-conspirators, James H. McAuley, Jr., then the Vice President of the Hell’s Angels, Rochester Charter, and McAuley’s wife, Donna Boon. McAuley and Boon sent Montgomery on both trips, paying for his airfare and paying him a $1,000 fee for each trip. The defendant obtained and transported between 500 grams and 1.5 kilograms of methamphetamine on the two trips.
This case was part of a larger investigation that resulted in the indictment and arrest of members and associates of the Rochester and Monterey (California) Hell's Angels for drug trafficking and racketeering-related offenses in February 2012. Along with Montgomery, Monterey (California) Hell's Angels President Richard W. Mar, Rochester Hell's Angels members James H. McAuley, Jr., of Oakfield, NY, and Jeffrey A. Tyler, of Rochester, NY, and Donna Boon, of Oakfield, were charged with conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of methamphetamine. Two other defendants, Paul Griffin, of Blasdell, NY, and Richard E. Riedman, of Webster, NY, were convicted for their roles in the methamphetamine conspiracy. Judge Siragusa sentenced Griffin to probation and Riedman to 37 months in prison.
Rochester Hell's Angels member Robert W. Moran, Jr., of Rochester along with Gina Tata, also of Rochester, are charged in the same indictment with assault with a dangerous weapon in aid of racketeering activity, and McAuley, Moran and Tata are charged with conspiracy to commit assault with a dangerous weapon in aid of racketeering activity. In addition, Tata is charged with being an accessory after the fact to the assault and conspiracy. Another defendant, Timothy M. Stone, of Gates, NY, was convicted of being an accessory after the fact to the assault and conspiracy on July 6, 2015. He is scheduled to be sentenced by Judge Siragusa on February 5, 2016.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam Cohen, the Genesee County Sheriff's Office, under the direction of Sheriff Gary T. Maha, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the New York State Police, under the direction of Major Craig Hanesworth, the City of Batavia Police Department, under the direction of Chief Sean Shawn Heubusch, and the Village of LeRoy Police Department.Sentencing is scheduled for May 3, 2016, at 10:45 a.m. before Judge Siragusa.
Bakersfield Resident Sentenced for Pointing a Laser at Kern County Sheriff HelicopterRead the Press Release
FRESNO, Calif. — Jose Javier Rosas, aka Jose Javier Rosas Jimenez 62, of Bakersfield, was sentenced today to 18 months in prison for aiming the beam of a high-powered laser pointer at Air-1, a Kern County Sheriff’s helicopter, United States Attorney Benjamin B. Wagner announced.
The sentence follows Rosas’s guilty last fall. According to court documents, Rosas struck and tracked Air-1 with a green laser pointer during the evening hours. As a result, the pilot experienced glare, flash blindness, significant loss of night vision, watering eyes, and eye pain and was forced to divert attention from assisting in the search for a robbery suspect.
“Pointing a laser at any aircraft is a reckless action which has potential to cause a catastrophic incident affecting both the air crew and community. In this case, the airmen were impaired by the laser but were able to safely divert from the planned operation,” said Special Agent in Charge Monica M. Miller of the FBI Sacramento field office. “Due to the risk to public safety, anyone who witnesses an individual shining a laser at aircraft or any vehicle should immediately report the activity to law enforcement to protect the safety of the community.”
“As this sentence makes clear, Mr. Rosas’ actions put the life of this aircraft’s pilot and the safety of the general public in peril,” said Ryan Spradlin, special agent in charge for HSI San Francisco, which oversees HSI’s enforcement efforts throughout northern California. “In addition to the jail term, this defendant will face removal to his native Mexico upon completion of his prison time. HSI will continue to use its resources and unique enforcement authorities to protect our communities from those who engage in criminal activity that endangers our citizens.”
Reports of laser attacks on aircraft have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. Last year, there were 7,702 laser strikes, or 21.16 laser incidents per day, reported in the United States. In the Eastern District of California, which encompasses 34 counties, including Kern County, in the eastern portion of California, there were 214 reported incidents. So far this year, the Federal Aviation Administration reports over 24 laser incidents per day nationwide. Aviators, such as helicopter pilots, are particularly vulnerable to laser illuminations when conducting low-level flight operations at night.
This case was the product of an investigation by the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Kern County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar prosecuted this case.
Adams County Man Indicted Federally for Receipt and Possession of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an Adams County man was indicted by a federal grand jury in Harrisburg on January 20, 2016 for receipt and possession of child pornography.
According to United States Attorney Peter Smith, the grand jury alleges that Earl Greg Walker, age 53, received and possessed child pornography at his home in Adams County in 2011-2012. The indictment was unsealed today following Walker’s arrest on January 29, 2016. Walker is due to appear before U.S. Magistrate Judge Susan E. Schwab today for his initial appearance.
This case was investigated by Homeland Security Investigations and the Pennsylvania State Police and is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 30 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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13 People Arrested after Law Enforcement Intercepts Nearly 3,000 Pounds of Marijuana being Smuggled into U.S. by Panga BoatRead the Press Release
LOS ANGELES – Federal authorities on Saturday arrested 13 people after law enforcement authorities interdicted nearly 3,000 pounds of marijuana that they were trying to smuggle into the United States by panga boat at Arroyo Quemada Beach in southern Santa Barbara County, just north of the city of Santa Barbara. All 13 defendants were named in a criminal complaint filed Sunday that charges them with possession of marijuana with the intent to distribute.
“Smuggling by panga boat endangers the lives of both the smugglers and authorities interdicting the boats and their payloads,” said United States Attorney Eileen M. Decker. “Law enforcement has and will continue to use all available means to curtail this dangerous activity.”
According to the affidavit in support of the criminal complaint filed yesterday, the United States Coast Guard first observed the panga boat at Arroyo Quemada Beach early Saturday morning. The affidavit notes that drug-traffickers commonly use panga boats at night in an effort to evade law enforcement.
In this case, authorities believe that three people were in the boat, and approximately 15 people were observed on shore helping to unload the bales of marijuana. Two vans and a pick-up truck separately drove to the beach, and bales of marijuana were loaded into the pick-up and one of the vans. The vehicles then departed the beach at about the same time, but they went in separate directions. One van, which was being used to transport the marijuana, was stopped in Camarillo; the second van, which was being used to transport people, was stopped when it returned to Arroyo Quemada Beach; and the pick-up, which was being used to transport marijuana, was stopped in Carpinteria. Law enforcement seized 114 bales of marijuana from the van stopped in Camarillo and the pick-up truck stopped in Carpinteria.
Authorities arrested the following individuals:
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Hector Raul Bernal-Lara, 41;
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Ricardo Sanchez-Marquez, 36;
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Daniel Aguilar, 25;
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Mark Garcia, 23;
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Susana Tobaldo, 42;
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Kevin Tes, 22;
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Josh Rubio, 21;
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Alfonso Aguilar-Ballestros, 48;
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Jesus Moreno-Sepulveda, 31;
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Santiago Galvan-Carrillo, 48;
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Paul Armenta-Bueno, 34;
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Bryan Castro, 18; and
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Daniel Fernando-Huizar, 26.
All 13 defendants are expected to make their initial appearances today in federal court in Los Angeles.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The statutory maximum penalty for a violation of possession nearly 3,000 pounds of marijuana with the intent to distribute it is life in prison.
The investigation in this case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Coast Guard, the United States Border Patrol, the Los Angeles County Sheriff’s Department, the Santa Barbara County Sheriff’s Department, and the Ventura County Sheriff’s Department.
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Saturday 30 January 2016
Riverside Man Faces 10-Year Mandatory Federal Prison Term after Being Convicted for Third Time of Possessing Child PornographyRead the Press Release
LOS ANGELES – A Riverside resident has pled guilty to possessing child pornography and now faces a 10-year mandatory minimum sentence in federal prison.
James Gregory O’Neill, 58, of Riverside pleaded guilty on Monday, January 25 before United States District Judge R. Gary Klausner to possession of child pornography.
Because O’Neill has twice before been convicted of possessing child pornography, he will face a 10-year mandatory minimum prison term – and could be sentenced to as much as 20 years – when he is sentenced on April 18.
“Despite being convicted twice previously for possessing child pornography, Mr. O’Neill continued to victimize children by creating a market for child pornography,” said United States Attorney Eileen M. Decker. “It is one of the highest priorities of my office to prosecute those who would seek to victimize children, and in particular those who do so repeatedly.”
O’Neill pleaded guilty to possessing an SD memory card containing as many as 97 images of child pornography which he accessed on his cellphone. He possessed the memory card despite his convictions in 2003 in federal court for possessing child pornography – for which he was sentenced to 40 months in prison – and in 2011 in Riverside County Superior Court.
The case against O’Neill was investigated by the Riverside Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Former Owner and Operator of Long Beach Medical Equipment Supply Company Sentenced for Their Roles in $1.5 Million Medicare Fraud SchemeRead the Press Release
LOS ANGELES – The former owner and the former operator of a durable medical equipment supply company based in Long Beach have been sentenced for their roles in a $1.5 million Medicare fraud scheme.
Amalya Cherniavsky, 41, and her husband, Vladislav Tcherniavsky, 46, both of Long Beach, were ordered to pay $614,418 in restitution at a hearing yesterday afternoon before United States District Judge Terry J. Hatter Jr.
Judge Hatter ordered Tcherniavsky to serve 51 months in prison at yesterday’s hearing, while Cherniavshy was placed on probation.
On October 15, 2015, a federal jury convicted both defendants of one count of conspiracy to commit health care fraud and five counts of health care fraud.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Special Agent in Charge Chris Schrank of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) Los Angeles Region, Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division and Special Agent in Charge Joseph Fendrick of the California Department of Justice’s Bureau of Medi-Cal Fraud and Elder Abuse made the announcement.
The evidence at trial demonstrated that Cherniavsky owned JC Medical Supply, a purported durable medical equipment supply company that she co-operated with Tcherniavsky. Evidence further showed that the defendants paid illegal kickbacks to patient recruiters in exchange for patient referrals and paid kickbacks to physicians for fraudulent prescriptions – primarily for expensive, medically unnecessary power wheelchairs – which the defendants then used to support fraudulent bills to Medicare.
Between 2006 and 2013, the defendants submitted $1,520,727 in claims to Medicare and received $783,756 in reimbursement for those claims, according to evidence presented at trial.
“The sole purpose of JC Medical Supply was to obtain fraudulent prescriptions and submit bills to Medicare for unneeded but expensive durable medical equipment,” said United States Attorney Eileen M. Decker. “The defendants attempted to hide their activity from Medicare by seeking reimbursement for a variety of equipment. Prosecutors saw through that deception, resulting in today’s sentences and restitution orders.”
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Central District of California. HHS-OIG’s Los Angeles Regional Office, the FBI and the California Department of Justice’s Bureau of Medi-Cal Fraud and Elder Abuse investigated the case. Attorneys Blanca Quintero and Kevin R. Gingras of the Criminal Division’s Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to Health Care Fraud Unit.
Former Owner and Operator of Long Beach Medical Equipment Supply Company Sentenced for Their Roles in $1.5 Million Medicare Fraud SchemeRead the Press Release
LOS ANGELES – The former owner and the former operator of a durable medical equipment supply company based in Long Beach have been sentenced for their roles in a $1.5 million Medicare fraud scheme.
Amalya Cherniavsky, 41, and her husband, Vladislav Tcherniavsky, 46, both of Long Beach, were ordered to pay $614,418 in restitution at a hearing yesterday afternoon before United States District Judge Terry J. Hatter Jr.
Judge Hatter ordered Tcherniavsky to serve 51 months in prison at yesterday’s hearing, while Cherniavshy was placed on probation.
On October 15, 2015, a federal jury convicted both defendants of one count of conspiracy to commit health care fraud and five counts of health care fraud.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Special Agent in Charge Chris Schrank of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) Los Angeles Region, Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division and Special Agent in Charge Joseph Fendrick of the California Department of Justice’s Bureau of Medi-Cal Fraud and Elder Abuse made the announcement.
The evidence at trial demonstrated that Cherniavsky owned JC Medical Supply, a purported durable medical equipment supply company that she co-operated with Tcherniavsky. Evidence further showed that the defendants paid illegal kickbacks to patient recruiters in exchange for patient referrals and paid kickbacks to physicians for fraudulent prescriptions – primarily for expensive, medically unnecessary power wheelchairs – which the defendants then used to support fraudulent bills to Medicare.
Between 2006 and 2013, the defendants submitted $1,520,727 in claims to Medicare and received $783,756 in reimbursement for those claims, according to evidence presented at trial.
“The sole purpose of JC Medical Supply was to obtain fraudulent prescriptions and submit bills to Medicare for unneeded but expensive durable medical equipment,” said United States Attorney Eileen M. Decker. “The defendants attempted to hide their activity from Medicare by seeking reimbursement for a variety of equipment. Prosecutors saw through that deception, resulting in today’s sentences and restitution orders.”
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Central District of California. HHS-OIG’s Los Angeles Regional Office, the FBI and the California Department of Justice’s Bureau of Medi-Cal Fraud and Elder Abuse investigated the case. Attorneys Blanca Quintero and Kevin R. Gingras of the Criminal Division’s Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to Health Care Fraud Unit.
Canadian Man Sentenced to Nearly Four Years in U.S. Prison for Mass Marketing Schemes Targeting U.S. CitizensRead the Press Release
LOS ANGELES – A Canadian man has been sentenced to nearly four years in prison on a federal fraud charge for targeting American victims in several schemes, including a fake lottery scam, one involving “secret shopper” pitch letters, and another involving bogus credit repair services.
Peter Omagbemi, 45, of Montreal, was sentenced yesterday to 47 months in prison by United States District Judge George H. Wu. In addition to the federal prison term, Judge Wu ordered Omagbemi to pay just over $1 million in restitution.
“The border between the United States and Canada did not protect Mr. Omagbemi from prosecution,” said United States Attorney Eileen M. Decker. “My office will pursue foreign nationals who seek to profit by defrauding people in the United States. In this case, Mr. Omagbemi’s fraud was particularly harmful as it caused the arrest of one of his victims.”
Omagbemi operated a MoneyGram outlet in Montreal and engaged in a mass marketing fraud scheme by targeting victims – primarily in the United States – and fraudulently claiming that the victims had won a lottery or sweepstakes. In some cases, Omagbemi claimed the victim had been offered a job as a mystery shopper, or that he could repair the victim’s credit.
In the lottery scheme, Omagbemi claimed that the victim had won a lottery or sweepstakes, but, in order to claim the funds, the victim needed to send money through MoneyGram to pay for taxes, fees and other purported expenses. In the mystery shopper scheme, Omagbemi falsely told the victim that they had been selected as a mystery shopper, which he followed up with by sending the victim a counterfeit check to deposit and directing them to send some of the money to MoneyGram. Finally, in the credit repair scheme, the defendant would claim that he could repair the victim’s credit in exchange for a fee. All of these claims were false.
Omagbemi’s schemes caused 294 victims to send him money. After the victims deposited the counterfeit checks and sent money to Omagbemi, the banks would reverse payment and would debit the amount against the victim’s own bank funds. Some victims fell behind on their bills, and, in one case, a victim was arrested for passing a fraudulent check.
The case against Omagbemi was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service. The case originated from an investigation by the Royal Canadian Mounted Police.
Albuquerque Woman Sentenced to 36 Months in PrisonRead the Press Release
ALBUQUERQUE – Cordelia Louisa Espinosa, 52, of Albuquerque, N.M., was sentenced in federal court today to 36 months in prison for conspiracy and distribution of at least 50 grams of methamphetamine.
According to court documents, Espinosa participated in a methamphetamine trafficking conspiracy from the beginning of April 2015 to February 9, 2017. As part of the conspiracy, she participated in a drug transaction in Albuquerque on December 7, 2016. Espinosa gave a gift bag containing approximately 553 grams of methamphetamine to another drug trafficker, who then gave the bag to an undercover law enforcement officer posing as a drug purchaser. On February 9, 2017, Espinosa participated further in the conspiracy by coordinating a drug transaction by telephone involving more than 14 kilograms of methamphetamine.
The indictment against Espinosa also charged three co-defendants. On January 3, 2019, Hector Hugo Magana, 35, of Redwood City, California, received a sentence of 70 months in prison after pleading guilty to distribution of 500 grams or more of methamphetamine.
On July 3, 2018, Efrain Espinoza-Pena, 45, of Mexico, pleaded guilty to conspiracy, distribution of at least 50 grams of methamphetamine, and possession with intent to distribute at least 50 grams of methamphetamine. On September 13, 2018, Edgar Madrid-Rascon, 33, of Mexico, pleaded guilty to distribution of 500 grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Both of these co-defendants are awaiting sentencing.
The Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case with assistance from the Drug Enforcement Administration, the New Mexico State Police, and Immigration and Customs Enforcement. Assistant U.S. Attorneys Paul J. Mysliwiec and David Cowen prosecuted the case.
Friday 29 January 2016
Woman Submitted False Student Loan DocumentsRead the Press Release
PITTSBURGH - A former resident of Turtle Creek, Pennsylvania, pleaded guilty in federal court to charges of mail fraud, United States Attorney David J. Hickton announced today.
Mary Beth Bawden, 54, waived indictment and pleaded guilty to the two felony counts before United States District Judge David Stewart Cercone.
According to information presented to the Court at the guilty plea, Bawden defrauded Doral Bank and Sallie Mae by submitting false and fraudulent student loan documents purportedly for her son.
Judge Cercone scheduled sentencing for June 2, 2016. The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000 or both, at each count. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Bawden on bond.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Office of Inspector General, U.S. Department of Education conducted the investigation leading to the Information in this case.
Williamsport Man Indicted for Drug Trafficking and Firearms ViolationsRead the Press Release
WILLIAMSPORT. The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Williamsport man was indicted yesterday by a federal grand jury for narcotics trafficking and possessing firearms in furtherance of his drug trade.
According to United States Attorney Peter Smith, the grand jury alleges that Kalonji Jones, age 37, trafficked a substantial quantity of heroin in Williamsport and the surrounding area. A search of his premises at the time of his arrest yielded 110 packets of heroin packaged for individual sale to users and additional materials for the packaging and distribution of heroin including empty glassine packets, a grinder and scale. Also recovered at the time of the Defendant’s arrest were 3 unlicensed handguns that he is prohibited from possessing under Federal law. These items were found in a 2014 investigation by the Williamsport Police Department.
The charges stem from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Williamsport Bureau of Police, and the Lycoming County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Geoffrey MacArthur.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 30 years to life imprisonment, a term of 6 years’ supervised release following imprisonment, and a $2 million dollar fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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U.S. Navy Officer Sentenced to 40 Months in Prison for Selling Classified Ship and Submarine Schedules as Part of Navy Bribery ProbeRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Mark W. Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – January 29, 2016
SAN DIEGO – U.S. Navy Lieutenant Commander Todd Dale Malaki was sentenced in federal court today to 40 months in prison for accepting cash, hotel expenses and the services of a prostitute in return for providing classified U.S. Navy ship and submarine schedules and other internal Navy information to a foreign defense contractor.
Malaki, 44, of Oxnard, California, pleaded guilty in April to one count of conspiracy to commit bribery. As part of his guilty plea, Malaki admitted that in 2006, while he was working as a supply officer for the U.S. Navy’s Seventh Fleet, he began a corrupt relationship with Leonard Glenn Francis, the former president and chief executive officer of Glenn Defense Marine Asia (GDMA), a company that provided services to the U.S. Navy.
During today’s sentencing hearing, U.S. District Judge Janis L. Sammartino noted that a more significant sentence was warranted in this case in part because Malaki’s conduct was not a momentary lapse in judgment but long-term corruption that spanned more than seven years. She described Malaki’s case as “one of the most serious offenses the court has seen in its tenure in the Southern District of California.”
In addition to his prison sentence, Judge Sammartino ordered Malaki to pay a $15,000 fine and $15,000 in restitution to the Navy. He was ordered to report to the U.S. Bureau of Prisons on May 2, 2016.
As part of the scheme, Malaki provided Francis with classified U.S. Navy ship and submarine schedules and proprietary invoicing information about GDMA’s competitors. In exchange, Malaki admitted, Francis provided him with luxury hotel nights on at least a dozen occasions in Singapore, Hong Kong and the island of Tonga, as well as envelopes of cash, entertainment expenses and the services of a prostitute.
Malaki is the second defendant to be sentenced in the investigation of corruption and fraud in the U.S. Navy. Last week, U.S. Navy Petty Officer First Class Daniel Layug was sentenced to 27 months in prison for conspiracy to commit bribery
To date, 10 individuals have been charged in connection with this scheme; of those, nine have pleaded guilty, including Malaki, Commander Michael Vannak Khem Misiewicz, Captain Daniel Dusek, NCIS Special Agent John Beliveau, Commander Jose Luis Sanchez and Layug as well as GDMA executives Francis, Alex Wisidagama and Edmond Aruffo. Former Department of Defense civilian employee Paul Simpkins awaits trial. GDMA the corporate entity has also pleaded guilty.
“Malaki sold out the U.S. Navy which had provided him escape from his impoverished upbringing,” said U.S. Attorney Laura Duffy. “He put fellow sailors and warships at risk of exploitation, attack, or worse, and tarnished the reputations of those who had selected him from among the enlisted ranks and sponsored him to become a commissioned officer. Those who fail to uphold the public’s trust will pay the consequences for their crimes.”
“Today's sentencing of Lt. Commander Malaki is part of an ongoing joint effort by the Defense Criminal Investigative Service, the Naval Criminal Investigative Service and the Department of Justice to identify, investigate and bring to justice those seeking to enrich themselves at the expense of U.S. taxpayers,” said James B. Burch, Director, DCIS. “While the conduct of the vast majority of those in the U.S. Navy is beyond reproach, we will vigorously pursue those individuals who put the safety and security of U.S. Navy personnel at risk. The conduct of Lt. Commander Malaki is reprehensible and today's sentencing demonstrates the Defense Criminal Investigative Service and its law enforcement partners will continue to pursue allegations of fraud and corruption that puts the Warfighter at risk.”
“Lieutenant Commander Malaki betrayed his oath of office, failed to uphold the standards of selfless service, and threatened the security of Sailors when he sold U.S. Navy ship schedules for cash, hotel expenses, and the services of a prostitute," said NCIS Director Andrew Traver. “NCIS, in collaboration with Defense Criminal Investigative Service and the Department of Justice, will continue to aggressively pursue this investigation."
The ongoing investigation is being conducted by NCIS, DCIS and the Defense Contract Audit Agency. The case is being prosecuted by Assistant U.S. Attorney Mark W. Pletcher of the Southern District of California and Trial Attorneys Brian R. Young and Lawrence Atkinson of the Criminal Division’s Fraud Section.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANT Case Number: 15cr967
Todd Dale Malaki Age: 44 Oxnard, California
SUMMARY OF CHARGES
Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371. Maximum penalty five years in prison, $250,000 fine or twice the gross pecuniary gain or loss from the offense, whichever is greater;
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
U.S. Navy Officer Sentenced to 40 Months in Prison for Selling Classified Ship Schedules as Part of Navy Bribery ProbeRead the Press Release
A U.S. Navy Lieutenant Commander was sentenced today to 40 months in prison for accepting cash, hotel expenses and the services of a prostitute from foreign defense contractor Glenn Defense Marine Asia (GDMA) in exchange for classified U.S. Navy ship and submarine schedules and other internal Navy information.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura Duffy of the Southern District of California, Deputy Inspector General for Investigations James B. Burch of the Defense Criminal Investigative Service (DCIS) and Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) made the announcement.
In April 2015, Todd Dale Malaki, 44, pleaded guilty to one count of conspiracy to commit bribery and admitted that in 2006, while he was working as a supply officer for the U.S. Navy’s Seventh Fleet, he began a corrupt relationship with Leonard Glenn Francis, the former president and CEO of GDMA, a company that provided port services to U.S. Navy ships and submarines throughout the Pacific. In addition to his prison sentence, U.S. District Judge Janis L. Sammartino of the Southern District of California ordered Malaki to pay a $15,000 fine and $15,000 in restitution to the Navy.
As part of the scheme, Malaki provided Francis with classified U.S. Navy ship schedules and proprietary invoicing information about GDMA’s competitors in exchange for luxury hotel stays in Singapore, Hong Kong and the island of Tonga, as well as envelopes of cash, entertainment expenses and the services of a prostitute. Malaki admitted that the total value of the benefits he received from Francis was approximately $15,000.
To date, 10 individuals have been charged in connection with this scheme; of those, nine have pleaded guilty, including Malaki, Commander Michael Vannak Khem Misiewicz, Captain Daniel Dusek, NCIS Special Agent John Beliveau, Commander Jose Luis Sanchez and U.S. Navy Petty Officer First Class Dan Layug. Former Department of Defense (DoD) civilian employee Paul Simpkins awaits trial. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; the others await sentencing.
The NCIS, the DCIS and the Defense Contract Audit Agency are conducting the ongoing investigation. Assistant Chief Brian Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Robert S. Huie of the Southern District of California are prosecuting the case.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DoD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
Two Sentenced in Pill Mill CaseRead the Press Release
DALLAS — Two defendants who pleaded guilty to their roles in a pill mill operation they were involved in during parts of 2013-2014 have been sentenced.
U.S. Attorney John Parker announced that Shane Barron, 27, of Austin, Texas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 37 months in federal prison, following his guilty plea in October 2015 to one count of unlawful use of a communication facility. Last Friday, January 22, co-defendant Tonya Sue Griggs, 34, of Dallas, was also sentenced by Judge Fitzwater to 37 months in federal prison. She pleaded guilty in August 2015 to the same offense.
In March 2015, a federal grand jury in Dallas indicted 23 individuals, including Barron and Griggs, on offenses related to their participation in a prescription drug distribution conspiracy. That indictment alleged that from at least May 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic in Dallas, to obtain prescriptions to fill those prescriptions at designated pharmacies. Many of those defendants have pleaded guilty and are awaiting sentencing.
According to documents filed in the Barron case, on February 18, 2014, co-conspirator Cornelius Robinson told Barron, on a phone call, that he found a bottle of 154 pills in his kitchen cabinet that he had forgotten he had. Robinson told Barron that finding the pills was like finding free money. Barron estimated that the pills were worth $2,000, but the co-conspirator said $3,000. Barron then knew that the pills were 30 mg oxycodone and that the then-going rate for one 30 mg oxycodone pill was approximately $20. Barron admits he intended to obtain some of these oxycodone pills from Robinson to distribute to his own customers and admits that he used a cell phone to facilitate the conspiracy to distribute oxycodone. Robinson pleaded guilty in October 2015 to one count of conspiracy to distribute a controlled substance and is scheduled to be sentenced in April 2015. He faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine.
According to documents filed in the Griggs case, in a phone call on October 30, 2013, another co-conspirator instructed Griggs to recruit six new individuals to pose as patients to obtain prescriptions for hydrocodone from a clinic. The co-conspirator told Griggs he would pay her $15 per recruit. The next day, Griggs sent the co-conspirator a text stating she had six recruits, but three left before going to the clinic. Another co-conspirator picked up Griggs’ three recruits and transported them to McAllen Medical Clinic to obtain prescriptions.
Last week, however, a physician, Dr. Richard Andrews, 63, of Dallas, and pharmacists, Ndufola Kigham, 44, of Arlington, Texas, and Kumi Frimpong, 55, of Grand Prairie, Texas, were arrested on charges outlined in a superseding indictment that charged them with offenses related to their roles in the conspiracy. They are on bond; trial is set for June 2016. All three were ordered to surrender their DEA registration numbers, preventing Dr. Andrews from issuing prescriptions for controlled substances and pharmacists Kigham and Frimpong from dispensing controlled substances. Also, Kigham surrendered her stock of controlled substances that she had at her pharmacy to DEA.
The investigation is being conducted by the Drug Enforcement Administration, with assistance from the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service. Assistant U.S. Attorney Mary Walters is prosecuting.
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Two Palm Beach County Residents Sentenced for Their Participation in Stolen Identity Tax Fraud Scheme Involving at Least 790 IdentitiesRead the Press Release
Two Palm Beach County residents were sentenced to prison for their participation in a stolen identity tax fraud scheme involving at least 790 stolen identities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG), and Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA OIG), made the announcement.
Latonia Verdell, 40, of Palm Beach County (Case No. 14-CR-80158), and Starling Willis, 32, of West Palm Beach (Case No. 15-CR-80119), were each sentenced to a term of imprisonment by U.S. Senior District Judge Daniel T. K. Hurley, for their participation in a stolen identity tax fraud conspiracy. Verdell and Willis were previously convicted of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), and conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 1343 and 1349. Verdell was also convicted of being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1); possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3); theft of government property, in violation of Title 18, United States Code, Section 641; and making a false statement to a federal government agency, in violation of Title 18, United States Code, Section 1001(a)(2).
Verdell was sentenced to a total of 94 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $947,296.81. Verdell’s sentence includes a concurrent term of 70 months in prison for each count of conviction for theft of government money, felon in possession, and unauthorized access devices; and a concurrent sentence of 5 years in prison for the false statement conviction. In addition, Verdell was sentenced to a mandatory term of 24 months in prison, to run consecutive to all other sentences, for the aggravated identity theft conviction.
Willis was sentenced to a total of 33 months in prison, to be followed by three years of supervised release, and ordered jointly and severally liable for restitution, with Verdell, in the amount of $32,4551. Willis was sentenced to 9 months in prison for the conspiracy, to be followed by a mandatory consecutive term of 24 months in prison for the aggravated identity theft conviction.
According to court documents and the defendants’ testimony during the sentencing hearings, Verdell, Willis and co-defendant Kelli Witherspoon McIntosh, participated in a widespread stolen identity refund fraud scheme involving at least 790 stolen identities and personal identification information (PII). The PII was used to file fraudulent on-line income tax returns, with those refunds being directed to various bank accounts created and maintained by Verdell, McIntosh and Willis, as well as to reloadable debit cards. Identity theft victims whose personal information was used for this scheme spanned from Indian River, Highlands, St. Lucie, Martin and Palm Beach Counties, as well as persons outside the State of Florida. This scheme resulted in the submission to the IRS of more than 590 fraudulent returns in the names of other persons, seeking approximately $1.5 million in fraudulent income tax refunds.
Court documents also indicate that on September 1, 2010, while Verdell was receiving unauthorized income from the filing of fraudulent income tax returns with the IRS, she received a housing assistance payment funded by the U.S. Department of Housing and Urban Development (HUD), while knowing she was not entitled to receive such a payment. On September 24, 2013, Verdell submitted an application for enrollment in the Supplemental Nutrition Assistance Program (SNAP), also referred to as ‘food stamps.’ In her application, Verdell knowingly stated that her only monthly income was $715, without any other source of income, when she was in fact receiving significant income from fraudulent tax refund payments.
Court documents also indicate that evidence of the stolen PII, a list of bank accounts belonging to Willis, information regarding accounts which received fraudulent refunds, and a stolen .38 caliber pistol, were found in Verdell’s home during the execution of a federal search warrant.
Kelli Witherspoon McIntosh is scheduled to be sentenced on February 16, 2016 in West Palm Beach by U.S. Senior District Judge Hurley.
Mr. Ferrer commended the investigative efforts of the IRS-CI, HUD-OIG, and USDA OIG. Mr. Ferrer also thanked the Palm Beach County Sheriff’s Office for their assistance with this investigation. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
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 Convicted of Illegally Possessing a Firearm, After Shooting at a Miami-Dade Police OfficerRead the Press Release
Two Miami-Dade residents were convicted by a jury in federal court for being felons in possession of a firearm, after they shot at a police officer with an AK-47 rifle.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, and Juan Perez, Acting Director, Miami-Dade Police Department (MDPD), made the announcement.
Theodist Grimes, III, 27, and Wendell Trenell Clark, 25, both of Miami, were convicted after a nine-day trial before U.S. District Judge Joan Lenard for being felons in possession of a firearm.
According to evidence presented at trial, on April 22, 2015, Grimes and Clark, both convicted felons, along with a third male, entered a convenience store in Miami to confront two men they believed had stolen their friend's gun. After the initial confrontation, the defendants went back to their car to arm themselves with two handguns and an AK-47 rifle. Customers called 911 and Miami-Dade police officers responded.
The first officer on the scene testified that he immediately saw Grimes with a Glock handgun and grabbed him. After a brief struggle, Grimes jumped out of his shorts and sprinted away in his underwear, all of which was captured on the store surveillance video. Clark then pulled the get-away car around to pick up Grimes and led police on a high-speed chase. Unable to elude the pursuing officers, Clark maneuvered the car so that Grimes could lean out the window and open fire with the AK-47 rifle on the Miami-Dade robbery detective who was chasing them. The detective, who is also assigned as an ATF Task Force Officer, testified that Grimes fired eight to ten rounds at the detective’s car, and that he was able to pull his car out of the line of fire.
Clark and Grimes continued to flee and, after crashing their car into a pick-up truck, ran away on foot. A nearby resident watched from inside his home as Grimes jumped over the fence in his yard and discarded the AK-47 rifle in a trash can on his property. This resident then immediately ran into the street, flagged down a police officer and showed the officer where the rifle was abandoned. A perimeter was set up and aviation helped track the defendants, who were located and arrested shortly thereafter.
Grimes and Clark are currently scheduled to be sentenced on April 13, 2016.
Mr. Ferrer commended the investigative efforts of ATF and MDPD. Mr. Ferrer also thanked the City of Miami Police Department and Miami Beach Police Department for their assistance and cooperation in this matter. This case was prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough and Deputy Chief Michael Thakur.
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 Arrested in Watertown Area for Unlawful Possession of FirearmsRead the Press Release
SYRACUSE, NEW YORK – Loren Woodard, 34, of Calcium, New York and Corey Daniels, 33, of Watertown, New York, were arrested on federal firearms charges, announced United States Attorney Richard S. Hartunian.
Woodard appeared in court yesterday and Daniels appeared in court today on a ten-count indictment alleging possession of firearms by a convicted felon and possession of stolen firearms. Woodard is also charged with possession of a firearm with an obliterated serial number. The indictment alleges felony violations with respect to seven (7) different firearms, including multiple pistols and long guns.
If convicted, each defendant faces a maximum sentence of ten (10) years imprisonment, a term of supervised release of up to three (3) years following imprisonment, and a fine of up to $250,000. Actual sentences are typically less than the maximum penalties. Sentences are imposed by a judge based on U.S. Sentencing Guidelines and other statutory factors.
The defendants appeared in federal court in Syracuse, New York, before United States Magistrate Judge Andrew T. Baxter.
The charges in the indictment are merely accusations. The defendants are presumed innocent until proven guilty.
This case is being investigated by the United States Bureau of Alcohol, Tobacco, Firearms & Explosives ("ATF") and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Nicolas Commandeur.
Two Men Arrested and Charged with Conspiracy to Distribute Ecstasy and MollyRead 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 Richard Clarke, 47, a Canadian citizen residing in Buffalo, and Barrett Johnson, 32, of Jamestown, NY, were arrested and charged by criminal complaint with conspiracy to distribute controlled substances. The charge carries a maximum penalty of 20 years in prison and a fine of $1,000,000.
“Synthetic drugs such as ecstasy and molly can be deadly and have no place on the streets of our community,” said U.S. Attorney Hochul. “As always, we work closely with our law enforcement partners at every level to ensure all drugs, including synthetics, and those who deal in them are brought to justice.”
“These dangerous synthetic drugs are wreaking havoc in communities all over the country and right here in Western New York,” said HSI Buffalo Special Agent in Charge James C. Spero. “As today’s charges clearly demonstrate, HSI will continue to aggressively target the individuals and groups distributing this poison.”
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the complaint, the investigation began in March of 2015. Clarke was identified through surveillance as the supplier of MDA and MDMA, also known as ecstasy or molly, to Johnson over a 10-month period. On January 28, 2016, law enforcement officers established surveillance at Clarke’s Nottingham Terrace residence in Buffalo and Johnson’s business, Iconz Barbershop on Hertel Avenue in Buffalo. Officers trailed Clarke and Johnson to Elmwood Avenue where they observed Johnson approaching Clarke’s vehicle and the two exchanged what appeared to be a blue colored bottle.
Subsequently, officers executed a search warrant at Iconz Barbershop where Johnson was arrested. At the time of the arrest, the defendant threw all of the items in his hands to the ground including a blue Pepsi cup which contained a substance similar to molly.
During the execution of a search warrant at Clarke’s Nottingham Terrance residence, officers seized specific amounts of powder molly and ecstasy pills as well as approximately $13,000 in cash.
The defendants made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder this morning and were released on conditions.
The complaint is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the Border Enforcement Security Taskforce which includes the Ontario Provincial Police, Niagara Regional Police, Peel Regional Police and Toronto Police Services.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Two Individuals Indicted in Fraud Scheme Involving Distribution of Infectious Human RemainsRead the Press Release
A husband and wife from Grosse Pointe Park, Michigan, have been charged in an indictment with wire fraud, transportation of hazardous material, and false statements in an alleged scheme involving the distribution of body parts, some that tested positive for diseases, including HIV and hepatitis, announced United States Attorney Barbara L. McQuade. McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division; Regional Special Agent-in-Charge Thomas J. Ullom, U.S. Department of Transportation - Office of Inspector General; Officer in Charge Elizabeth Harton of the Centers for Disease Control and Prevention, Division of Global Migration & Quarantine and Arizona Attorney General Mark Brnovich. Indicted were Arthur Rathburn, 62 and Elizabeth Rathburn, 55. The indictment was unsealed today upon the arrest of the defendants. As alleged in the 13-count indictment, Arthur Rathburn and Elizabeth Rathburn were the owners and operators of International Biological, Inc. (“IBI”). IBI’s primary function was renting human body parts, such as heads and torsos, to customers who used the remains for medical or dental training. The Rathburns participated in a scheme to defraud in which IBI obtained donated bodies and body parts from suppliers, which IBI would then typically dismember and rent out to customers for medical or dental training. Arthur and Elizabeth Rathburn knew that the donors of a number of these bodies had died of an infectious disease, or that the bodies had tested positive for an infectious disease. IBI sometimes obtained diseased remains from their suppliers at a reduced cost, due to the fact that end users of human remains generally reject infectious bodies and body parts for use in medical or dental training. It was part of the scheme that the Rathburns would provide human remains to IBI’s customers, falsely representing to those customers that the remains were free of certain infectious diseases. The Rathburns were aware that IBI’s customers would not accept remains infected with certain diseases. The scheme included directly profiting from infectious remains supplied to unwitting customers in violation of contractual agreements and failing to disclose to customers that IBI ignored industry standard precautions to prevent potential cross-contamination between infectious and non-infectious remains. The indictment further alleges that Arthur Rathburn willfully caused to be delivered hazardous material regulated by the Department of Transportation, namely a human head of an individual known to have died from bacterial sepsis and aspiration pneumonia, to Delta Cargo, an air carrier, for transportation in air commerce in violation of federal regulations. In violation of these regulations, the human head was packaged in a trash bag placed within a camping cooler. Seven other human heads were also part of the shipment and packed in the same manner. Large quantities of liquid blood were found within the coolers. Furthermore, Arthur Rathburn was charged with making three false statements connected to this shipment. “This alleged scheme to distribute diseased body parts not only defrauded customers from the monetary value of their contracts, but also exposed them and others to infection,” McQuade said. “The alleged conduct risked the health of medical students, dental students and baggage handlers.” “These indictments represent one step in the FBI’s larger investigation into violations of federal law by individuals working within the poorly regulated willed-body-to-science industry,” said David P. Gelios, Special Agent in Charge, FBI Detroit Division. “We recognize that thousands of donor families, medical doctors and affiliated personnel across the country have been adversely affected by these illegal acts. This investigation does not stop here. We continue to work with our state and federal partners to conduct a full and rigorous investigation. And, while all of our partnerships on this case have been valuable, special thanks is due to the staff of the CDC’s Detroit Quarantine Station, without whose extensive help, this investigation would have been greatly hampered." Martin S. Cetron, MD, Director, Division of Global Migration, Centers for Disease Control and Prevention said, "The CDC is pleased to have provided its technical assistance on public health concerns related to the safe handling, packaging, and import of human remains that pose a potential threat to human health. U.S. quarantine stations are part of a comprehensive system that serves to limit the introduction and spread of infectious diseases into the United States. We continue to support our law enforcement partners, other federal agencies, and state and local entities on this important public health matter." “The indictment brought against Arthur Rathburn and Elizabeth Rathburn for allegations related to wire fraud, transportation of HAZMAT, and false statements demonstrates that ensuring the safety of the Nation’s transportation system remains a high priority for the Office of Inspector General (OIG), the Department of Transportation (DOT) and its Pipeline and Hazardous Materials Safety Administration,” said Thomas J. Ullom, DOT OIG Regional Special Agent-in-Charge. “Working with our law enforcement and prosecutorial colleagues, we will continue our efforts to uncover illicit hazardous materials shipments, whether that be body parts with infectious diseases or otherwise, and prevent their use and punish those who seek to compromise the integrity of DOT’s safety program.” "These federal indictments are a significant step in our pursuit of justice for donors' families and medical staff affected by these despicable acts," said Arizona Attorney General Mark Brnovich. "Last month, Arizona successfully convicted a defendant involved in this multi-state investigation. Our team will continue to work with the Department of Justice to ensure that everyone involved in these illegal acts is appropriately prosecuted." An indictment is only a charge and is not evidence of guilt. A defendant is presumed not guilty unless convicted at trial by a jury. If convicted, the Rathburns face a maximum statutory penalty of twenty years in prison for each of nine counts of wire fraud. Arthur Rathburn also faces a maximum of five years in prison for one charge of Transporting Hazardous Material under 49 U.S.C. §463 and a maximum of five years in prison for each of three counts charging him with making false statements to the United States Government. The investigation in this case was handled by the Federal Bureau of Investigation, the Centers for Disease Control and Prevention, the Arizona Attorney General’s Office, and the U.S. Department of Transportation, Office of Inspector General with support from U.S. Customs and Border Protection and Homeland Security Investigations. Special thanks are also due to the Wayne County Medical Examiner’s Office for their critical assistance. The case is being prosecuted by Assistant U.S. Attorneys John K. Neal and Timothy J. Wyse.Twice Convicted Pedophile Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced William Sylvia, age 71, of Hagerstown, Maryland, today to 10 years in prison, followed by lifetime supervised release, for possession of child pornography. Judge Russell ordered that Sylvia must continue to 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 and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
According to Sylvia’s plea agreement, in approximately 1995, Sylvia was convicted of raping a child in Massachusetts, and sentenced to seven to 10 years’ incarceration. On September 3, 2004, in the Circuit Court of Berkeley County, West Virginia, Sylvia was convicted of sexual abuse by a parent, custodian or guardian, and of third degree sexual abuse, and was sentenced to one to five years in prison.
Sylvia admitted that from April 1, 2013 through July 13, 2014, he used a computer to send, receive and collect child pornography. For example, on April 1, 2013, Sylvia sent another user six visual depictions of minors engaging in sexually explicit conduct. On September 4, 2014, law enforcement obtained a search warrant for Sylvia’s email account which revealed emails sent and received by Sylvia that included attachments of child pornography.
During the time of this investigation, Sylvia was a registered sex offender living at a motel in Hagerstown. On February 20, 2015, a search warrant was executed at Sylvia’s residence at the motel and law enforcement seized a desktop computer, camera, flash drive and other digital media. A forensic examination of the desktop computer and the flash drive recovered additional images of minors – including prepubescent minors – engaged in sexually explicit conduct.
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 for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow who prosecuted the case.