Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 19 January 2016
Ocean County, New Jersey, Man Admits Bribing Doctor as Part of Compounding Pharmacy Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Manchester, New Jersey, man today admitted paying tens of thousands of dollars in bribes to a sports medicine doctor on behalf of Prescriptions R Us, a compound pharmacy in Lakewood, New Jersey, U.S. Attorney Paul J. Fishman announced.
Howard Wertheim, 67, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of paying kickbacks.
According to documents filed in this case and statements made in court:
Wertheim admitting that from February 2013 through October 2013, he worked for Vladimir Kleyman, 44, of Lakewood, New Jersey, the president and pharmacist-in-charge of Prescriptions R Us. As a compounding pharmacy, Prescriptions R Us prepared medication using different types and dosages of drugs in order to provide more personalized medications for patients. Prescriptions R Us supplied a topical cream for pain treatment that was made from ketamine (a Schedule III non-narcotic), lidocaine, diclofenac and other ingredients.
Wertheim admitted that Kleyman paid him to help recruit and pay physicians to refer their prescriptions to Prescriptions R Us. Wertheim admitted that as part of the scheme, he paid tens of thousands of dollars in cash bribes to James Morales, 45, a sports medicine doctor with a practice in Toms River, New Jersey, in exchange for referring pain cream prescriptions.
The kickback charge to which Wertheim pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for April 25, 2016. As part of his plea agreement, Wertheim must forfeit $25,000, representing the money he made as payment for his work as a middle-man in the scheme.
Morales, who admitted accepting more than $60,000 in cash bribes as part of the scheme, pleaded guilty to an information charging him with conspiracy to accept kickbacks and health care fraud on June 29, 2015 and awaits sentencing. Kleyman, who previously pleaded guilty to an information charging him with conspiracy to pay kickbacks and to commit health care fraud on Oct. 14, 2014, was sentenced Nov. 4, 2015 to 20 months in prison.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; and U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the ongoing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jane H. Yoon and R. David Walk Jr. of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $640 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: William Cunningham, Brick, New Jersey
Notice of Court HearingRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney?s Office announces today that there will be a sentencing hearing Wednesday (Wednesday, January 20, 2016) in United States v. James William Lewis. The hearing will be held at 10:45 am on January 20, 2016, before Senior United States District Judge Joseph F. Anderson, Jr. (courtroom # 4) at the Matthew J. Perry Federal Courthouse in Columbia, South Carolina.
#####Muskegon Man, Adam James Fitzpatrick, Sentenced to Twenty Years in Prison for Distributing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Adam James Fitzpatrick, 26, of Muskegon, Michigan was sentenced yesterday to 20 years in federal prison for distributing child pornography via the Internet, U.S. Attorney Patrick A. Miles, Jr. announced. In addition to the prison term, U.S. District Judge Paul L. Maloney imposed a 10-year term of supervised release that will commence once Fitzpatrick is released from imprisonment. Fitzpatrick will also be required to register as a sexual offender.
Fitzpatrick pled guilty on September 22, 2015, to distributing child pornography. He came to the attention of law enforcement in early 2015, when they discovered that he was distributing child pornography via the Internet. The FBI executed a search warrant at Fitzpatrick’s residence on August 5, 2015, and seized his computer. Forensic examination of the computer revealed thousands of images and videos, including hard-core, graphic material, such as images and videos of prepubescent children, to include infants and toddlers, being raped and tortured. Investigation further revealed that Fitzpatrick had access to children, attempted to convince other adults to abuse their children for him, and attempted to webcam with children. Fitzpatrick confessed to possessing child pornography and sharing it with others on the Internet.
In its sentencing memorandum, the U.S. Attorney’s Office wrote that "[t]he possession and distribution of child pornography is a very serious offense in any case. But here, the extreme depravity of the defendant’s collection and conduct makes his offense all the more serious and calls for a severe punishment." Judge Maloney agreed, noting that this was the worst child pornography case he had seen.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The FBI and the Michigan State Police investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
END
Montgomery County Man Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore J. Chuang sentenced Robert Michael Busching, age 26, of Clarksburg, Maryland, today to 10 years in prison, followed by 15 years of supervised release, for possession of and access with intent to view child pornography. Judge Chuang ordered that Busching must pay restitution of $5,000, to be apportioned among three victims whose sexual abuse was documented in some of the child pornography Busching possessed. Judge Chuang also ordered that upon his release from prison, Busching must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
According to Busching’s plea agreement, between February 13, 2014 and August 26, 2014, Busching used an internet-based cloud storage system to possess, and to access with intent to view, child pornography. On March 7, 2014, the National Center for Missing and Exploited Children received a CyberTipline report from the cloud storage system in reference to suspected files of child pornography being uploaded to one of their accounts. The account was being accessed from an IP address assigned to Busching’s residence in Clarksburg.
On September 9, 2014, agents from the FBI executed a search warrant at Busching’s residence and seized his desktop computer. Agents also interviewed Busching, who advised that he had been communicating with someone in an online chat site who provided Busching with the username and password to access various cloud storage accounts containing child pornography. Busching further admitted the he created two additional accounts, added videos of children engaged in sexually explicit conduct to both accounts, and shared links to the accounts he created with other people he met in the online chat site. Investigation showed that Busching accessed the cloud storage accounts, which contained more than 600 images of child pornography, on a number of occasions between February 12, 2014 and August 26, 2014.
Judge Chuang ordered that the federal sentence be served concurrent to the sentence imposed for violating his probation in Maryland v. Robert Busching, Montgomery County Circuit Court, Case No. 117672C. In that case, Busching was convicted of distribution of child pornography and on March 17, 2011, was sentenced to seven years in prison, with all but five days suspended, followed by five years of supervised probation.
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. Attorneys Lindsay Eyler Kaplan and Kristi N. O’Malley, who prosecuted the case.
Moncks Corner Man Pleads Guilty to Money LaunderingRead the Press Release
Contact Person: Nick Bianchi (843) 727-4381
Charleston, South Carolina ---- United States Attorney Bill Nettles stated today that Keith Scott, age 41, of Moncks Corner, South Carolina, has entered a guilty plea in federal court in Charleston, to conspiracy to conduct financial transactions involving proceeds of narcotics trafficking, a violation of 18 U.S.C. § 1956(h). United States District Judge David C. Norton of Charleston accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that during a time period spanning from May 2011 until November 2012, Scott, owner of Main Street Motors auto dealership in Moncks Corner, South Carolina, allowed a known drug dealer to purchase multiple vehicles using proceeds from drug trafficking. Scott also allowed the purchaser to have other individuals sign paperwork as if they were purchasing the vehicle.
Mr. Nettles stated the maximum penalty is imprisonment for 20 years and/or a fine of $500,000.
The case was investigated by agents of the Internal Revenue Service and the Federal Bureau of Investigations. Assistant United States Attorney Nick Bianchi of the Charleston is prosecuting the case.
#####
Mississippi Man Sentenced for Tampering with a Consumer ProductRead the Press Release
Jackson, Miss - Alfred Thornhill, 42, of Sontag, Mississippi, was sentenced today by U.S. District Judge Daniel P. Jordan III, to 18 months in federal prison followed by one year of supervised release for tampering with a consumer product, announced U.S. Attorney Gregory K. Davis. Thornhill was also ordered to pay restitution in the amount of $1,000.
Thornhill was employed at a dairy farm near Crystal Springs, Mississippi, when he poured chlorine, acid and bleach into a stainless steel container of milk right after the milk had been collected from the cows on March 28, 2014. The toxic chemicals were discovered in the milk by the farm’s owner just before the milk was to be picked up for transportation to a distribution center in New Orleans. The contents of the caustic agents were confirmed by a lab analysis conducted at Mississippi State University.
According to evidence disclosed during the guilty plea hearing, Thornhill confessed to USDA-OIG Special Agents that he poisoned the milk because he was angry at the dairy farm owner and intended to ruin the milk in order to financially harm the dairy farmer.
This case was investigated by the USDA- OIG and the Mississippi Agriculture Theft Bureau. It was prosecuted by Assistant United States Attorney Scott Gilbert.
Lubbock, Texas, Woman Sentenced to 6 Months in Federal Prison for Making False Statements to U.S. MarshalsRead the Press Release
LUBBOCK, Texas — Maria Guadalupe Baltazar, 37, of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 6 months in federal prison, following her guilty plea in September 2015 to one count of making a false statement to a government agency, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, Baltazar admitted to lying to U.S. Marshals about the whereabouts of a multi-time convicted felon. On June 26, 2015 federal agents learned of a felon sentenced to a term of incarceration of 235 months who was mistakenly released from custody and who had fled the area. Baltazar was subsequently questioned about the whereabouts of this man, and was untruthful with U.S. Marshals about her knowledge as to the man’s whereabouts and about her involvement. Baltazar must surrender to the Bureau of Prisons on February 19, 2016.
United States Marshals investigated the case. Assistant U.S. Attorney Myria Boehm of the U.S. Attorney’s Office in Lubbock, Texas, prosecuted.
# # #
Local Man Gets More Than Five Years for Illegally Possessing a FirearmRead the Press Release
CORPUS CHRISTI, Texas - A local man has been ordered to federal prison following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Kenneth Magidson announced. Eloy Silva, 38, of Corpus Christi, pleaded guilty Oct. 19, 2015.
Today, Senior U.S. District Judge John Rainey ordered he serve a sentenced of 64 months imprisonment to be followed by three years of supervised release. At the hearing today, a deputy U.S. Marshal testified about statements Silva made at the time of his arrest. Testimony revealed that Silva was upset at a local news reporter about a story he had aired about Silva. According to that testimony, Silva stated that he was “going to get even” with the reporter and his family.
In March 2015, authorities Silva with a state parole violators warrant and several state warrants for impersonating a peace officer at a residence in Skidmore. At the time of the arrest, deputies searched the location and discovered a 12-gauge shotgun, several boxes of ammunition and body armor underneath the bed. Silva, who has 12 prior felony convictions, is prohibited from possessing firearms and ammunition.
In federal custody since his arrest, Silva will remain in custody and serve his sentence at a U.S. Bureau of Prisons facility to be designated in the near future.
The charge stems from an investigation by Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Marshals Service.
Assistant U.S. Attorney Lance Watt prosecuted the case.
Lieutenant in the Jenifer Drug Trafficking Organization Sentenced to 16 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Tyrone Allen, age 44, of Bowie, Maryland, today to 16 years in prison, followed by five years of supervised release, for conspiring to distribute cocaine. Judge Bennett entered an order requiring Allen to forfeit the proceeds of the drug trafficking, including cash, vehicles, jewelry, and his interest in property held in the name of New Millenium Investors, LLC and/or Tyrone Allen, including five properties in Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Commissioner Kevin Davis of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement and court documents, from September 2012 until his arrest in October 2014, Kedrick Jenifer was the head of a drug organization that transported cocaine and cash between Baltimore and Houston, Texas. Allen was Jenifer’s lieutenant in the organization, assisting Jenifer with the day to day operations, including the collection of money for and the distribution of cocaine to the organization’s customers while Jenifer was out of town. The Jenifer DTO obtained its cocaine from sources of supply in and around Houston. The Jenifer DTO would hide money in secret compartments in “courier vehicles” that were transported from Baltimore to Houston. The cocaine was then transported from Houston to Baltimore hidden in the courier vehicles.
In September 2012, Texas State Police stopped a courier vehicle in Chambers County, Texas. Law enforcement officers discovered approximately 30 kilograms of cocaine hidden in secret compartments within the vehicle. In July 2013, a courier vehicle for the Jenifer DTO loaded on a car-carrier was intercepted in Arkansas. The vehicle contained approximately 23 kilograms of cocaine hidden in a secret compartment.
Between August 2013 and October 2014, approximately 30 shipments of cocaine concealed in secret compartments in the courier vehicles were made to the Jenifer DTO. During this time, Allen was seen on numerous occasions providing kilogram quantities of cocaine to members of the organization. For example, on June 12, 2014, law enforcement intercepted calls Jenifer made to other members of the organization indicating that Allen would meet with them to distribute kilograms of cocaine. On June 14 and 16, 2014, law enforcement observed Allen meeting with members of the Jenifer DTO to supply them with cocaine. On July 11, 2014, Allen and Jenifer were seen removing kilogram-sized packages from hidden compartments in one of the courier vehicles that had recently returned from Houston.
Allen admitted that he was responsible for the distribution of at least 450 kilograms of cocaine between August 2013 and October 2014.
Kedrick Arnold Jenifer, a/k/a “Ricky Jenifer,” “James Howard Collier, Jr.” and “Rick,” age 44, of Bowie, Maryland, pleaded guilty to conspiring to distribute cocaine and is scheduled to be sentenced on January 26, 2016. Eight other co-conspirators have pleaded guilty. Brooke Renee Lunn, a/k/a “Brooke Thomas” and “Brooke Renee,” age 49; William Hegie, age 55; Kermit Clark, age 45; and Elroy Johnson, age 49, all of Baltimore, and Thomas Simmons, age 38, of Hampton, Virginia, were sentenced to between 10 and 12 years in prison. The other three defendants are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the DEA, IRS Criminal Investigation and Baltimore City and County Police Departments for their work in the investigation, and expressed his appreciation to the United States Attorney’s Offices for the Southern District of Texas and the Southern District of New York for their assistance. Mr. Rosenstein thanked Assistant United States Attorney John W. Sippel, Jr. and Special Assistant United States Attorney Matthew Hoff, a cross-designated Baltimore City Assistant State’s Attorney, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Justice Department Releases Human Trafficking Resources to Raise Awareness and Serve VictimsRead the Press Release
Attorney General Loretta E. Lynch announced today the release of a video series and resource guide to raise awareness about the many forms of human trafficking in the United States and to provide information on how to identify and serve its victims. She also spoke with a group 20 survivors of human trafficking at a forum hosted by the Justice Department’s Office for Victims of Crime (OVC) to seek survivors’ input about how federal agencies can most effectively address the crime of human trafficking.
“In an effort to bring human trafficking survivors’ voices to as many people as we can, we are proud to announce today the release of The Faces of Human Trafficking, a new video series sponsored by OVC,” said Attorney General Lynch. “I applaud OVC and the producers for their work to present the strength and resilience of the survivors who were interviewed for the film, which will serve as an informative training, outreach and awareness tool for years to come.”
Created by OVC, the Faces of Human Trafficking multidisciplinary resource includes:
• Nine videos with Spanish subtitled versions;
• Public Service Announcements (PSAs) offered in Spanish, Thai, Hindi and Tagalog;
• Discussion guide;
• Four fact sheets; and
• Four posters
“Through heightened awareness, victim-centered services, and effective investigations and prosecutions, we can work together to fight the horrific crime of human trafficking and support survivors,” said Director Joye Frost of OVC. “A crucial first step is to help everyone recognize the reality of trafficking in the United States, and we hope our new resource will do just that.”
The resource features voices of survivors of trafficking and is intended to educate service providers, law enforcement, prosecutors and others in the community about multidisciplinary approaches to serving victims of human trafficking, effective victim services and victims' legal needs. It addresses the special considerations and needs of youth victims and describes promising practices for building effective collaborations among federal agencies to address human trafficking. The posters are available for download and can be customized with information about training opportunities or local service providers.
For more information about OVC’s anti-human trafficking programs, please visit http://www.ovc.gov/trafficking.
Justice Department Reaches Settlement with Evolve Bank & Trust to Resolve Allegations of Discrimination Against Recipients of Disability IncomeRead the Press Release
Settlement Provides Compensation to Victims Identified by the Department of Justice and Establishes Fair Procedures for Treating Borrowers Who Receive Disability Income
The Justice Department announced today that Evolve Bank & Trust has agreed to maintain revised policies, conduct employee training and compensate victims to resolve allegations that it engaged in a pattern or practice of discrimination on the basis of disability and receipt of public assistance in violation of the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA). The FHA prohibits lenders from discriminating on the basis of disability, and the ECOA prohibits lenders from discriminating on the basis of receipt of public assistance.
The settlement, which is subject to court approval, was filed today in federal court in Memphis, Tennessee, where Evolve is headquartered. The terms of the settlement require Evolve to establish a settlement fund of $86,000 to compensate eligible mortgage loan applicants who were asked to provide a letter from their doctor to document their disability income. Under the settlement, Evolve will conduct training of its underwriters and loan officers and will monitor loan applications to insure that applicants with disabilities are not asked for a letter from a doctor.
“Loan applicants who rely on disability income should not be treated differently than other applicants,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This settlement will provide relief to victims of a discriminatory practice that illegally and unnecessarily burdens individuals with disabilities in violation the Fair Housing Act and the Equal Credit Opportunity Act.”
The lawsuit originated with a referral from the Board of Governors of the Federal Reserve System to the Civil Rights Division. Evolve is a member of the Federal Reserve System.
“Illegal discrimination on the basis of disability is unacceptable,” said Federal Reserve Governor Lael Brainard. “This settlement not only provides restitution for mortgage applicants that were harmed by the bank’s discriminatory practices, but ensures that the bank institutes new, fair policies and trains its staff to implement them.”
“Every individual is entitled to equal and fair treatment when applying for a loan,” said U.S. Attorney Edward L. Stanton III of the Western District of Tennessee. “This settlement underscores the Department of Justice’s unwavering commitment to holding financial institutions accountable when they engage in unlawful discriminatory practices.”
The Civil Rights Division, the Board of Governors of the Federal Reserve System and the U.S. Attorney’s Office of the Western District of Tennessee are members of the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information about the task force, please visit www.StopFraud.gov.
The department’s enforcement of fair lending laws is conducted by the Housing and Civil Enforcement Section’s Fair Lending Unit in the Civil Rights Division. Since the Fair Lending Unit was established in February 2010, it has filed or resolved 44 lending matters under the Fair Housing Act, ECOA and the Servicemembers Civil Relief Act. The settlements in these matters provide for a total of over $1.4 billion in monetary relief for impacted communities. The Attorney General’s annual reports to Congress on ECOA enforcement highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications.
A copy of the complaint, as well as additional information about fair lending enforcement by the Justice Department, can be obtained from the Justice Department’s website at www.justice.gov/fairhousing.
Evolve Bank & Trust Complaint
Evolve Bank & Trust Consent Order
Jury Convicts Schenectady Man on Crack and Gun ChargesRead the Press Release
ALBANY, NEW YORK – A federal jury today convicted Steven Ray Morgan, age 48, of Schenectady, New York, of five felony charges including conspiracy to distribute crack cocaine and possession of a firearm by a felon.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration.
The jury convicted Morgan of four counts relating to crack cocaine and one count of possession of a firearm by a felon. The jury acquitted Morgan on a sixth charge, of possessing a firearm in furtherance of a drug trafficking offense.
Morgan faces at least 10 years and up to life in prison, as well as at least 8 years of post-imprisonment supervised release, when he is sentenced on May 18, 2016 by Senior United States District Judge Thomas J. McAvoy. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors.
The jury convicted Morgan following a four-day trial. The evidence at trial demonstrated that Morgan worked with others to distribute crack cocaine in and around Schenectady, that he and others stored drugs in a Schenectady stash house for purposes of distribution, and that the amount of crack cocaine involved was 28 grams or more. The evidence also demonstrated that Morgan illegally possessed a loaded 9 mm handgun that was stored with the drugs.
A prior jury trial in 2009 resulted in convictions on all six charges. However, in 2015, the United States Court of Appeals for the Second Circuit reversed those convictions and remanded the case for a new trial.
This case was investigated by the Drug Enforcement Administration, and was prosecuted on retrial by Assistant United States Attorney Sean O’Dowd.Joplin Man Pleads Guilty to Money Laundering in $5.6 Million Cooking Oil SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man pleaded guilty in federal court today to money laundering, the third defendant to plead guilty to charges related to a conspiracy to sell more than $5.6 million worth of spent cooking oil – stolen from restaurants across five states – to a recycling facility in Oklahoma.
Neal Sawyer Robbins, 29, of Joplin, Mo., pleaded guilty today before U.S. Magistrate Judge David P. Rush to money laundering.
Co-defendant Virgil Orin Bird, Jr., 52, of Joplin, pleaded guilty to the same charge on Thursday, Jan. 14, 2016. Co-defendant Brian Dale Fleming, 49, of Mountain Grove, Mo., pleaded guilty on Nov. 19, 2015, to his role in a conspiracy to transport stolen property across state lines and to money laundering.
Brian Fleming admitted that he utilized his business, Tri-State Grease in Cabool, Mo., to transport spent cooking oil that had been stolen from restaurants from Nov. 1, 2010, to Sept. 30, 2011.
Spent cooking oil is the by-product of cooking oil that restaurants use for frying food. Restaurants have on-site collection tanks in which their spent cooking oil was stored. Many restaurants establish contracts with various companies for the collection and removal of spent cooking oil. Brian Fleming and his co-conspirators trained, encouraged and aided others to steal spent cooking oil in order to sell it to others for recycling.
On July 11, 2011, Brian Fleming assisted undercover law enforcement officers in what he believed was the theft of approximately 32,000 pounds of spent cooking oil with a value of approximately $9,000 from a tanker truck. Fleming paid an undercover officer $4,650 for the purported stolen spent cooking oil. Brian Fleming told undercover agents that he sent his drivers to Memphis, Tenn., and other areas to steal spent cooking oil.
Brian Fleming has agreed to forfeit any interest he may have to $595,429 that was seized by law enforcement officers as proceeds of the illegal scheme.
By pleading guilty today, Robbins admitted that he participated with undercover law enforcement agents to obtain spent cooking oil, which he believed had been stolen. Robbins delivered the spent cooking oil to a recycling facility, for which he was paid $1,400. Robbins paid $7,076 to individuals whom he assisted in stealing the spent cooking oil.
Bird admitted that he conducted a financial transaction on Sept. 20, 2011. Bird paid $6,720 to undercover agents for spent cooking oil he believed had been stolen from a tanker truck in Kansas and transported to Missouri. Under the terms of his plea agreement, Bird must forfeit to the government the $6,720 that was paid to the undercover agents.
Brian Fleming also pleaded guilty, in a separate case, to being a felon in possession of a firearm. Brian Fleming admitted that he was in possession of a Smith and Wesson 9mm pistol and ammunition on Feb. 9, 2015. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Brian Fleming has a prior felony conviction for distributing a controlled substance.
Under federal statutes, Robbins and Bird are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $500,000 (or twice the value of the funds involved) and an order of restitution. Brian Fleming is subject to a sentence of up to 35 years in federal prison without parole plus a fine up to $1 million (or twice the value of the funds involved) and an order of restitution. Brian Fleming is scheduled to be sentenced on March 3, 2016. Sentencing hearings for Robbins and Bird will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Abram McGull and Patrick Carney. It was investigated by IRS-Criminal Investigation, the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Investment Adviser Sentenced in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that STEVEN WESSEL, a/k/a “Wes Wessels,” was sentenced today in Manhattan federal court to 55 months in prison for securities fraud, wire fraud, and aggravated identity theft. WESSEL engaged in a scheme to defraud two investors and unlawfully use the identity of another person in furtherance of that scheme to defraud. WESSEL pled guilty on April 23, 2015, and was sentenced today by Chief United States District Judge Loretta A. Preska.
Manhattan U.S. Attorney Preet Bharara said: “Steven Wessel lied to investors who trusted him with their money, spending almost all of it to pay for his own personal expenditures.”
According to the allegations contained in the Superseding Indictment, the underlying criminal Complaint unsealed on June 24, 2014, and statements made during court proceedings:
From at least June 2013 through April 2014, WESSEL ran a fraudulent investment scheme. WESSEL, who claimed to be the Chairman and Executive Managing Member of Steeplechase USA, LLC (“Steeplechase USA”), located in New York, New York, represented to an investor (“Investor A”) that Steeplechase USA was in the business of trading securities. WESSEL personally solicited $200,000 from Investor A on the understanding that the funds would be solely invested in securities.
Contrary to WESSEL’s promise to invest Investor A’s funds in securities, WESSEL used substantially all of Investor A’s money for his own personal benefit, including for cash withdrawals and personal expenses, such as the payment of $25,000 toward a restitution obligation from a prior judgment of conviction. WESSEL did not tell Investor A about this misappropriation. Instead, WESSEL falsely represented to Investor A that his $200,000 investment had gained tens of thousands of dollars and that Steeplechase USA’s portfolio had gained approximately 167% in 2013. Furthermore, in connection with this fraudulent scheme, WESSEL sent Investor A multiple emails that purported to come from Steeplechase USA’s accountant (“Accountant 1”). In those emails, WESSEL, pretending to be Accountant 1 without Accountant 1’s knowledge or permission, made multiple false statements concerning Investor A’s investment with Steeplechase USA.
When Investor A requested to withdraw his funds from Steeplechase USA, WESSEL solicited a $550,000 loan from a second investor (“Investor B”). WESSEL falsely represented that he would use Investor B’s money to provide financing for a commercial real estate project. To induce Investor B to lend him money, WESSEL, among other things, created and sent a fabricated email to Investor B. The fabricated email purported to be from a bank and made it appear as if the real estate project were legitimate.
Contrary to WESSEL’s promise to Investor B, WESSEL used substantially all of Investor B’s money for his own benefit, including to pay $251,000 to Investor A – money that, according to WESSEL, represented Investor A’s initial $200,000 investment and $51,000 in trading profits.
* * *
In addition to the prison sentence, WESSEL, 58, of New York, New York, was sentenced to three years of supervised release. The Court further ordered WESSEL to pay $499,000 in restitution.
Mr. Bharara praised the work of the Criminal Investigators of the United States Attorney’s Office, who investigated this case.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Damian Williams is in charge of the prosecution.
Human Smuggler Sentenced in Conspiracy that Resulted in Death of TwoRead the Press Release
CORPUS CHRISTI, Texas – A 22 year-old undocumented alien from Mexico has been sentenced for his conviction of conspiracy to transport undocumented aliens, announced U.S. Attorney Kenneth Magidson. Amurabi Medina-Cruz pleaded guilty Oct. 19, 2015.
Today, U.S. District Judge John D. Rainey handed Medina-Cruz a total of 71 months in prison for the alien smuggling conviction. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison. At the hearing, the court noted the need to impose a sentence that would deter not only the defendant, but others considering engaging in similar conduct to include evading law enforcement.
On Dec. 3, 2014, Border Patrol (BP) agents learned of several individuals running from the brush and entering a green Tahoe on U.S. Highway 285. A witness told the agents the Tahoe was headed eastbound on Highway 285 towards Highway 77. A BP unit located the vehicle and attempted to conduct a traffic stop. Median-Cruz pulled to the shoulder of the road, as though attempting to stop, but suddenly accelerated northbound onto Highway 77.
A second BP unit appeared on the scene. Medina-Cruz noticed it and once again attempted to pull off onto the shoulder of the highway. Due to his excessive speed, the vehicle rolled over several times and ejecting several of the occupants.
A total of eight individuals were transported to a nearby hospital for observation and treatment, two of whom later died as a result of their injuries.
Medina-Cruz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by Homeland Security Investigations with the assistance of BP. Assistant U.S. Attorney (AUSA) Justin Martin prosecuted the case. AUSA Elsa Salinas handled the sentencing.
Hobbs Woman Arrested on Federal Production and Distribution of Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Kyla Norby, 27, of Hobbs, N.M., made her initial appearance in federal court in Las Cruces, N.M., this morning on a criminal complaint charging her with production and distribution of child pornography. Norby remains in federal custody pending a preliminary hearing and detention hearing, which have yet to be scheduled.
The criminal complaint alleges that Norby produced and distributed child pornography between May 1, 2015 and Dec. 30, 2015, in Lea County, N.M. According to the criminal complaint, the investigation into Norby was initiated after Homeland Security Investigations (HSI) agents from Laredo, Tex., arrested a man in Odessa, Tex., who revealed that Norby made a two-year old child sexually available to him. The criminal complaint further alleges that a search of the man’s smartphone revealed photos of Norby that included images consistent with child pornography. The man alleged that Norby sent the images to him from her smartphone.
Norby was arrested on Jan. 14, 2016, in Odessa, Tex., and was transferred to New Mexico to face the charges against her.
If convicted on the production charge, Norby faces a statutory mandatory minimum of 15 years and a maximum of 30 years in federal prison. If convicted on the distribution charge, she faces a statutory mandatory minimum of five years and a maximum of 20 years in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces office of HSI and the Lea Country Sheriff’s Office, both members of the New Mexico Internet Crimes Against Children (ICAC) Task Force, with assistance from HSI in Laredo, Texas. The case is being prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga of the U.S. Attorney’s Las Cruces Branch Office.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the Office of the New Mexico Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Hartford Man Sentenced to 66 Months in Federal Prison for Trafficking HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBINSON CRUCETTS, also known as “Robi,” 50, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 66 months of imprisonment, followed by four years of supervised release, for his role in a heroin trafficking ring.
According to court documents and statements made in court, in March 2013, the DEA New Haven Task Force began investigating a heroin trafficking organization headed by members of the Estevez family who lived in New York and the Dominican Republic. The investigation revealed that William Suarez, 41, of New Haven, and Ivan Estrada, 43, of Wallingford, were street-level dealers in New Haven who regularly obtained heroin from CRUCETTS and Martin Rodriguez, 50, in Hartford. The investigation further revealed that CRUCETTS was receiving kilogram quantities of heroin from Carlos Gabriel Estevez, 23, of Ozone Park, N.Y.; Jimmy Estevez, 25, of Brooklyn, N.Y.; Miguel Estevez, also known as “Domi,” 27, of the Bronx, N.Y.; and Josue Ortiz, 27, of East Hartford.
On December 31, 2013, in response to court-authorized intercepts of calls and texts, investigators surveilled Ortiz as he drove from Connecticut to a parking lot in New Rochelle, N.Y., where he met Carlos Gabriel Estevez. After Estevez provided Ortiz with two brick-like packages, Ortiz drove back to Connecticut. A Connecticut State Police trooper conducted a motor vehicle stop of Ortiz as he was driving on I-95 in Milford and seized two bricks of heroin, each weighing approximately 500 grams, from a natural cavity in the vehicle’s wall. Subsequent investigation revealed that one of the bricks of heroin was to be delivered to CRUCETTS.
CRUCETTS was arrested at his Hartford residence on September 3, 2014. When investigators entered the residence, they found CRUCETTS attempting to swallow several bags of heroin. Investigators also found and seized $18,985 in cash.
On September 17, 2014, a federal grand jury returned a 13-count indictment charging CRUCETTS and his seven co-defendant with heroin trafficking and money laundering offenses.
On September 17, 2015, CRUCETTS pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
On December 8, 2015, a jury found Carlos Gabriel Estevez guilty of one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, and one count of possession with intent to distribute, and distribution of, one kilogram or more of heroin. He is scheduled to be sentenced on March 3, 2016.
The other six defendants previously pleaded guilty and await sentencing.
This matter was investigated by the DEA New Haven Task Force, with the assistance of the DEA Hartford Task Force and the DEA in New York. The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorneys Geoffrey M. Stone and Brian P. Leaming.
Guatemalan Pleads Guilty to Immigration and SORNA ChargesRead the Press Release
PITTSBURGH - A citizen of Guatemala pleaded guilty in federal court to charges of illegal re-entry after deportation and failing to register as a sex offender, United States Attorney David J. Hickton announced today.
Edward Jacinto Garcia, 30, of Guatemala, pleaded guilty to two counts before United States Senior District Judge Gustave Diamond.
In connection with the guilty plea, the court was advised that on July 6, 2015, Jacinto Garcia, an alien who, on October 6, 2011, had been deported and removed from the United States, and having reentered the United States without permission, was found in Butler County, Pennsylvania, after being arrested and charged with Driving Under the Influence by the Butler Township Police Department. Jacinto Garcia had been deported following conviction in the State of Nebraska of Sexual Assault of a Minor, 1st degree, and serving a period of imprisonment. By reason of this sex offense, Jacinto Garcia was required to register as a sex offender under the provisions of the Sex Offender Registration and Notification Act. Jacinto Garcia had failed, as required, to register in the State of Pennsylvania, the state in which he was employed during the period June 2015 through July 6, 2015.
Judge Diamond scheduled sentencing for May 11, 2016, at 10 a.m. The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000, or both. Jacinto Garcia remains in custody pending the sentencing hearing. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Department of Homeland Security, Immigration and Customs Enforcement, and the United States Marshals Service conducted the investigation leading to the prosecution of Jacinto Garcia.
Guatemalan Deported Four Times Pleads Guilty to Illegal Re-EntryRead the Press Release
ALBANY, NEW YORK – William Heriberto Reyes-Morales, age 42, of Guatemala, pled guilty on Friday to illegally re-entering the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Michael T. Phillips, Buffalo Field Office Director of Enforcement & Removal Operations for U.S. Immigration and Customs Enforcement (ICE).
Reyes-Morales pled guilty to violating the Immigration and Nationality Act (INA), which prohibits previously removed aliens from being found in the United States without permission.
ICE officers first encountered Reyes-Morales in the Montgomery County Jail on July 8, 2015. A check of Reyes-Morales’s fingerprints indicated that he had been deported and removed from the United States to Guatemala a total of four times, the most recent removal being on July 19, 2012.
Reyes-Morales faces up to 20 years in prison and a maximum $250,000 fine when he is sentenced on May 11, 2016 by Senior United States District Judge Thomas J. McAvoy. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors. Following his term of imprisonment, Reyes-Morales will be processed for removal from the United States.
This case was investigated by U.S. Immigration and Customs Enforcement and is being prosecuted by Edward P. Grogan.
Grady Memorial Hospital Agrees to Resolve Alleged Violations of the Americans with Disabilities ActRead the Press Release
ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia has reached a settlement agreement with Grady Memorial Hospital (Grady), the largest hospital in the State of Georgia and located in Atlanta, Georgia, to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (ADA) by failing to ensure effective communication with individuals who are deaf and hard of hearing.
“When a deaf patient or caregiver is unable to understand what is happening during a medical visit or procedure, it can be a terrifying experience and adversely affect the quality of care,” said U.S. Attorney John Horn. “I am encouraged that Grady has demonstrated an ongoing commitment to ensure that people who are deaf or hard of hearing have equal access to quality medical care.”
The U.S. Attorney’s Office initiated an investigation after receiving a complaint alleging that Grady failed to provide appropriate auxiliary aids and services when necessary to ensure effective communication. The complainant, who is deaf and relies on American Sign Language as his primary means of communication, was treated in the Emergency Care Center at Grady after falling from a ladder. The complainant alleged that he was in a lot of pain during his six hour stay in the Emergency Care Center. Complainant did not understand most of what was being communicated because he was not provided a sign language interpreter or other auxiliary aid or service.
Under the settlement agreement, Grady has agreed to ensure effective communication to patients who are deaf and hard of hearing. Among other things, Grady has agreed to provide mandatory in-service training to all its Emergency Care Center personnel and provide reports to the U.S. Attorney’s Office regarding its compliance with the settlement agreement. The training will address the needs of deaf and hard of hearing patients and companions. Grady also agreed to pay $5,000 to the complainant.
The ADA prohibits discrimination against individuals with disabilities by health care professionals. Under the ADA, health care providers are required to provide effective communication to individuals who are deaf and hard of hearing. When complex, lengthy communication is involved, the ADA generally requires health care professionals to provide qualified sign language interpreters for the person who is deaf or hard of hearing.
This agreement is part of the Department of Justice’s Barrier-Free Health Care Initiative, which is a partnership between the Civil Rights Division and U.S. Attorneys’ offices across the nation designed to target enforcement efforts on a critical area for individuals with disabilities. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of more than 40 U.S. Attorneys’ offices, including the U.S. Attorney’s Office for the Northern District of Georgia. Information about the initiative can be found at www.ada.gov/usao-agreements.htm.
Assistant United States Attorney Aileen Bell Hughes and Assistant United States Attorney Neeli Ben-David are representing the United States in this matter.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Glastonbury Man Sentenced to 3 Years in Prison for Distributing Heroin to a MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RYAN POULIN, 25, formerly of Glastonbury, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 36 months of imprisonment, followed by six years of supervised release, for distributing heroin to a minor.
“This is truly tragic story and one that is playing out in our state at an alarming rate,” said U.S. Attorney Daly. “There were nearly 400 heroin-related overdose deaths in Connecticut in 2015, which is an increase of approximately 50 percent since 2013. This epidemic is deeply disturbing and must be addressed from a number of perspectives. From the law enforcement perspective, together with the DEA and local police departments, we will continue to prioritize investigations of heroin overdoses and prosecutions of traffickers responsible for overdoses.”
According to court documents and statements made in court, a long-term Drug Enforcement Administration Hartford Task Force investigation has focused on the distribution of Fentanyl-laced heroin that contributed to several heroin overdoses in the Hartford area. Fentanyl is a powerful opioid analgesic used to treat moderate to severe chronic pain that cannot be controlled with other medicines. It is approximately 80 times more potent than morphine, and is potentially lethal, even at very low levels.
On February 15, 2014, East Windsor Police and other emergency personnel responded to a residence in East Windsor on a report of a possible drug overdose. A 14-year-old female victim was transported to Connecticut Children’s Medical Center in Hartford and died the following day. The Office of the Chief Medical Examiner subsequently determined the manner of death was an accident and the cause of death was heroin and fentanyl intoxication.
The investigation revealed that POULIN was involved in a relationship with a 16-year-old girl from East Windsor. On February 12, 2014, POULIN drove his minor girlfriend to Hartford to purchase heroin. POULIN and his minor girlfriend thereafter used the heroin together.
The investigation further revealed that on February 14, 2014, POULIN and an acquaintance traveled to a heroin dealer in the Hartford area where POULIN’s acquaintance brokered a deal for two bundles (20 dose bags) of heroin for $80. The heroin was stamped “New World.” POULIN and his acquaintance then traveled to Portland, Connecticut, where the acquaintance injected himself with three bags of the “New World” heroin and passed out. POULIN immediately left. Later that afternoon, POULIN arrived at his 16-year-old girlfriend’s house and injected a quantity of the “New World” heroin before he and his girlfriend went out to dinner for Valentine’s Day. When they returned from dinner, POULIN injected more of the “New World” heroin.
The next thing POULIN remembered from that evening is that someone put him in the shower to revive him.
The following morning, POULIN gave a bag of the “New World” heroin to his girlfriend. After seeing the heroin’s effect on POULIN and believing that it was too strong, POULIN’s girlfriend traded the heroin to her 14-year-old friend in exchange for a different bag of heroin. On the morning of February 15, 2014, POULIN’s girlfriend and her 14-year-old friend injected heroin. The 14-year-old showered and went to sleep. She never woke up.
POULIN was arrested on a federal criminal complaint on July 31, 2014, and was released into a substance abuse and counseling program. He has been detained since September 26, 2014, when his bond was revoked for violating the conditions of his release. On September 21, 2015, he pleaded guilty to one count of distributing a controlled substance to a minor.
This matter was investigated by the DEA Hartford Task Force and the East Windsor Police Department. The Task force includes participants from the Bristol, East Hartford, Hartford, Manchester, Newington, New Britain, Wethersfield and Willimantic Police Departments.
The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Ft. Walton Man Sentenced to 480 Months for Child Pornography OffensesRead the Press Release
PENSACOLA, FLORIDA – Samuel J. Johnson, 42, a registered sex offender who resides in Ft. Walton Beach, Florida, was sentenced today to 480 months in prison for production and receipt of child pornography, and the transfer of obscene matter to a minor. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
At his guilty plea on September 14, 2015, Johnson admitted that, between April 2013 and April 2015, he knowingly used a minor to engage in sexually explicit conduct to produce visual depictions, and that he committed this offense while required to register as a sex offender. During an undercover operation, law enforcement officers discovered that Johnson possessed child pornography videos and images on his cellular telephone and computers. Additionally, detectives recovered thousands of text messages between Johnson and an underage female, including those persuading the minor to produce and send videos of child pornography.
“I commend our prosecutors and law enforcement professionals for their hard work to bring child predators to justice,” said Acting United States Attorney Christopher P. Canova. “This prison sentence is a reminder that those who seek to harm our children face serious consequences under federal law.”
“This criminal stole the innocence of a young victim,” said Susan L. McCormick, special agent in charge of HSI Tampa. “The work of HSI special agents, along with our local and state partners, has ensured he cannot hurt another child.”
The case was investigated by the United States Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Pensacola Police Department, and the other agencies that are part of the North Florida Internet Crimes Against Children Task Force, whose joint investigation led to the charges in this case. The case was prosecuted by Assistant United States Attorney Jeffrey M. Tharp.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Fresno Man Sentenced for Striking Police Helicopter with Powerful LaserRead the Press Release
FRESNO, Calif. — Johnny Alexander Quenga, 29, of Fresno, was sentenced today to six months in prison, to be followed by three years of supervised release for aiming the beam of a laser pointer at Air 1, a Fresno Police helicopter, United States Attorney Benjamin B. Wagner announced.
According to court documents, Quenga repeatedly struck Air 1 with a powerful green laser attached to an airsoft rifle. As a result, the airmen experienced visual interference, flash blindness, after-imaging, a persistent headache lasting several hours, and dizziness. On October 26, 2015, Quenga pleaded guilty to aiming a laser pointer at an aircraft.
“Our continued partnership with the Fresno Police Department helps us address laser strikes in the area in an effort to protect both law enforcement and the public from the significant danger this activity presents,” said Supervisory Special Agent Robert Guyton of the Fresno resident agency of the FBI’s Sacramento Field Office. “We encourage the public to immediately report any individual who shines a laser on aircraft or motor vehicles to stop this dangerous behavior.”
Two Fresno police officers, who were responding to calls to assist in the investigation of the laser incident, collided with a civilian motorist at a busy intersection in northeast Fresno. The officers and civilian were seriously hurt or suffered significant property damage as a result of the accident, which Quenga was monitoring via a police scanner application on his iPhone.
According to the Federal Aviation Administration (FAA), reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. In 2015, the FAA received 7,702 reports of incidents involving laser strikes on aircraft in the United States. In the Eastern District of California, which encompasses 34 counties in the eastern portion of California, there were 214 reported incidents in 2015, with the majority in Fresno. Lasers can completely incapacitate pilots who are trying to fly safely to their destination, endangering their crew members, passengers and people on the ground.
The case against Quenga was investigated by the Federal Bureau of Investigation and the Fresno Police Department. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Former High School Photographer Indicted for Lying to A Federal Agent and Internet StalkingRead the Press Release
LITTLE ROCK, Ark.—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Raymond R. Parmer, Jr., special agent in charge of Homeland Security Investigations (HIS) New Orleans, announced today the indictment of Christian Trey Ashcraft, the owner of Ashven photography and former photographer of high school students and activities in the Pine Bluff, Arkansas area.
The two-count Indictment, returned by a federal Grand Jury on January 5, 2016, charges Ashcraft, 40, of Pine Bluff, with one count of lying to a federal agent and one count of internet stalking.
Ashcraft appeared before United States Magistrate Judge Beth Deere today. A trial is scheduled for February 22, 2016, in front of United States District Judge Kristine G. Baker.
The charges in the Indictment are based on an investigation that began in August 2014, when a minor disclosed to the Maumelle Police Department that Seth Ganahl had previously asked her to engage in illicit sexual activity on multiple occasions. Execution of a search warrant on Ganahl’s email account revealed that he was emailing with the user of [email protected], who was purporting to be a 15-year-old minor female. During the email exchange, Ganahl repeatedly asked the user of [email protected] to send him sexually explicit photographs.
Ganahl was indicted by a federal Grand Jury in the Eastern District of Arkansas on February 4, 2015, and is currently scheduled for trial on June 27, 2016.
During the investigation, agents developed information that led them to believe that Ashcraft was the real user of [email protected]. Agents interviewed Ashcraft on December 30, 2014, and he denied being the user of [email protected].
On January 13, 2015, agents obtained a federal search warrant for [email protected]. Law enforcement analysis of the contents of this account indicated that Ashcraft communicated with multiple individuals while posing as young teenage girls.
Agents also observed that Ashcraft, using [email protected], sent sexually explicit photographs of an adult female—while posing as this female—to at least two individuals over a significant period of time.
Agents again interviewed Ashcraft on April 1, 2015, at which time he admitted that he was the user of email account [email protected].
"The internet continues to be the weapon of choice for many individuals because they believe it provides them anonymity," Thyer said. "This case demonstrates that law enforcement and the United States Attorney’s Office will track down individuals who abuse the internet for their own deviant purposes, and that these people will be prosecuted to the fullest extent of the law."
"Lying to a federal agent is a serious crime that carries significant penalties," said Parmer Jr. "While revenge porn legislation is under debate in many states, the facts of this particular case are already covered under federal stalking laws. Not only were these actions distasteful, they were criminal, and HSI will continue to investigate and seek prosecution of cyber crimes as one of its highest priorities. "
Lying to a federal agent, a violation of 18 U.S.C.§ 1001(a)(2), carries a penalty of not more than five years imprisonment, not more than three years of supervised release, and a fine of up to $250,000.
Internet stalking, a violation of 18 U.S.C. § 2261A(2)(B), carries a penalty of not more than five years imprisonment, not more than three years of supervised release, and a fine of up to $250,000. This investigation was conducted by the Arkansas State Police and HSI. It is being prosecuted by Assistant United States Attorney Kristin Bryant.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Former City of Garwin Clerk Pleads Guilty to Theft of City FundsRead the Press Release
A woman who used her position as the city clerk for the City of Garwin to steal public funds pled guilty today in federal court in Cedar Rapids.
Anna Leytham from Garwin, Iowa, was convicted of Theft Concerning a Program Receiving Public Funds.
In a plea agreement, Leytham admitted that she held a position of public trust as the city clerk and that her position of trust contributed significantly to the commission and concealment of her crime. By using city funds to pay her personal credit cards or by causing the city to issue her unauthorized checks, Leytham admitted to stealing at least $70,000 from January 2001 to October 2013.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Leytham remains free on bond previously set. She faces a possible maximum sentence of 10 years’ imprisonment; a fine equal to the greater of twice the gross gain to defendant resulting from the offense, twice the gross loss resulting from the offense, or $250,000; $100 in special assessments, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Jacob Schunk and was investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-7.
Follow us on Twitter @USAO_NDIA.
Former Bernalillo County Firefighter Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Patrick M. Lopez, 48, of Albuquerque, N.M., pleaded guilty today in federal court to child pornography charges. The guilty plea was entered without the benefit of a plea agreement.
Lopez was arrested in July 2015, on a criminal complaint charging him with possession of visual depictions of minors engaged in sexually explicit conduct. At the time of his arrest, Lopez was employed as a paramedic/firefighter with the Bernalillo County Fire Department.
The charges against Lopez arose from an investigation by the FBI and the Bernalillo County Sheriff’s Office (BCSO). On July 10, 2015, the FBI and BCSO executed a federal search warrant at Lopez’s residence. During the search, forensic examiners found a laptop computer that contained videos consistent with child pornography.
During today’s proceedings, Lopez pled guilty to a felony information charging him with possession of child pornography. According to the information, Lopez possessed the child pornography in Bernalillo County, N.M., between Jan. 19, 2015 and July 10, 2015.
At sentencing Lopez faces a statutory maximum sentence of ten years in federal prison followed by not less than five years of supervised release. Lopez will also be required to register as a sex offender. Lopez remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and BCSO, both members of the New Mexico Internet Crimes Against Children (ICAC) Task Force.
The case is being prosecuted by Assistant U.S. Attorney Shammara H. Henderson as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Five Defendants Sentenced for Their Involvement in A Scheme to Defraud XeroxRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul Jr. announced today that five defendants convicted in a scheme to defraud the Xerox corporation by submitting fictitious bills for work never performed on equipment, were sentenced by Chief U.S. District Judge Frank P. Geraci. Sentenced were:• Anthony Fretto, of Webster, NY, who was convicted of conspiracy to commit mail fraud and conspiracy to engage in monetary transactions involving the proceeds of unlawful activity, was sentenced to 12 months in prison and ordered to pay restitution to Xerox totaling $4,061,000.
• Daniel Streff, of Webster, NY, who was convicted of conspiracy to commit mail fraud, was sentenced to five years probation and ordered to pay restitution to Xerox totaling $850,000.
• Thomas Randall, of Marion, NY, who was convicted of conspiracy to commit mail fraud, was sentenced to five years probation and ordered to pay restitution to Xerox totaling $298,000.
• Edward Hawkins, of Marion, NY, who was convicted of conspiracy to commit mail fraud, was sentenced to five years probation and ordered to pay restitution to Xerox totaling $185,000.
• And David Dailey, of Bloomfield, NY, who was convicted of conspiracy to commit mail, was sentenced five years probation and ordered to pay restitution to Xerox totaling $175,000.Assistant U.S. Attorney Bradley E. Tyler, who handled the case, stated that between 2002 and 2007, the defendants, along with five other individuals, perpetrated a scheme through Clarkson Auto Electric to defraud the Xerox Corporation. The scheme involved the submission of false invoices for parts and repair services related to the maintenance of the forklift fleet at the Xerox facilities in Webster. The defendants, through Clarkson Auto Electric, issued approximately $4,100.000 in false invoices to Xerox which was charged for new forklift parts and repair services that were ordered by the defendants but never provided to Xerox.
Five other defendants, John Jarnot, Mathew Lavilla, Gerald Fretto, James Noto, and Randy Vansteen have all been convicted.
The sentencings are the culmination of a joint investigation on the part of the Internal Revenue Service, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office, and the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge, Boston Division, United States Postal Inspection Service.
Final Two Defendants Plead Guilty to Marijuana Cultivation Scheme in Sacramento and Elk Grove ResidencesRead the Press Release
SACRAMENTO, Calif. —Jun Mou Peng, 42, and Shihong Chen, 50, both of Elk Grove, pleaded guilty today to manufacturing marijuana inside homes in Elk Grove and Sacramento, United States Attorney Benjamin B. Wagner announced.
According to court documents, from April 2012 to January 2013, law enforcement observed Peng and Chen and others traveling between five residences in Elk Grove and Sacramento. On January 30, 2013, investigators executed search warrants, and found sophisticated marijuana grows inside each residence. Agents seized 417 growing marijuana plants and processed marijuana at 8270 Cliffcrest Way; 152 growing marijuana plants, multiple kilograms of processed marijuana, and $4,240 in U.S. currency at 9761 McKenna Drive; 251 growing marijuana plants at 8108 Gwerder Court; 282 growing marijuana plants and nearly 10 kilograms of processed marijuana at 3713 45th Avenue; and inside 8646 Everidge Court, agents found 867 growing marijuana plants, approximately 31 kilograms of cultivated marijuana, and $7,070 in U.S. currency.
Peng and Chen are scheduled to be sentenced on March 30, 2016, by United States District Judge Kimberly J. Mueller. Each faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Co-defendant Zhiqiang Liu pleaded guilty to manufacturing marijuana on December 16, 2015. He is scheduled to be sentenced on March 9, 2016. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
On September 30, 2015, co-defendant Huanhao Chen pleaded guilty to concealing a felony, and on December 17, 2015, he was sentenced to one year of probation. On October 28, 2015, co-defendant Qinghong Li pleaded guilty to conspiracy to manufacture marijuana and manufacturing marijuana, and she was sentenced to one year in prison.
This case is the product of an investigation by the Drug Enforcement Administration and the Elk Grove Police Department. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
Fairbanks Soldier Sentenced to 72 Months in Prison for Child PornographyRead the Press Release
Fairbanks, Alaska — Stephen Michael St. Hilaire, 28, a soldier stationed at Ft. Wainwright, Alaska, was sentenced today by U.S. District Judge Ralph R. Beistline to 72 months in prison to be followed by a 15-year term of supervised release for possession of child pornography, U.S. Attorney Karen L. Loeffler announced.
According to documents filed in the case, St. Hilaire was identified by law enforcement using an Internet file-sharing network to trade images of child pornography. A search of St. Hilaire’s computer located in his barracks room at Ft. Wainwright found hundreds of files of child pornography, including images and videos of toddlers and infants being sexually molested by adult males.
At sentencing, Judge Beistline emphasized the fact that while the defendant’s activities may have occurred online, his crime involved images and videos of actual victims of molestation. “The problem is, when you are viewing these kinds of things, [you are] viewing real people,” said Judge Beistline, “[t]hat victimization stays with them their entire life.” Judge Beistline also noted that his sentence was intended to “discourage people from looking at this stuff, so there is no market [for it].” “We as a society are trying to protect young children,” said Judge Beistline.
This case was investigated by the FBI, with assistance from the United States Army, Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Kyle Reardon.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Executives of Panamanian Corporation and Aviation Company Plead Guilty in Multi Million Dollar Money Laundering StingRead the Press Release
BROOKLYN, N.Y. – Earlier today, Michael J. Dodd and James Robert Shipman, Jr. pleaded guilty to charges that they conspired to launder more than two million dollars, which they believed to be proceeds of a penny stock fraud scheme. The money was, in fact, provided to the defendants by an undercover law enforcement agent who posed as a criminal stock promoter as part of an FBI sting operation. A third defendant, Kenneth Landgaard, pleaded guilty to the same charges on January 15, 2016. Defendants Landgaard and Shipman were arrested after flying to an airport in New York on a private jet to take possession of $2,200,000 in cash, which they had agreed to launder through banks in Panama and Belize. Dodd was arrested a few hours later at a Manhattan restaurant where he had expected to meet with the undercover agent. Prior to their arrests, the defendants had already laundered $400,000 in cash previously provided by the undercover agent.
The guilty pleas were announced by Robert L. Capers, United States Attorney for the Eastern District of New York.
“The defendants agreed to transport millions of dollars represented to be stock fraud proceeds on private jets to Panama and then engage in a series of financial transactions designed to conceal the illegal source of the funds. They did so with the intention of lining their own pockets without regard for the law,” stated United States Attorney Capers. “We are committed to stopping the laundering of money through offshore safe havens and prosecuting those who would abuse the financial markets to enrich themselves.” Mr. Capers thanked the Federal Bureau of Investigation (FBI), the Internal Revenue Service, Criminal Investigation (IRS-CI) and the U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI) for their hard work and dedication through the course of the investigation and prosecution.
In his dealings with the defendants, the undercover agent represented himself to be a middleman working with corrupt stock brokers who artificially inflated prices for worthless stocks in exchange for high commissions. Despite being made aware this, the defendants agreed to launder $2,600,000 in exchange for a 13% to 15% fee. Immediately prior to their arrest, Landgaard and Shipman accepted $2,200,000 from the undercover agent, which they believed to be proceeds from the penny stock fraud. In conversations which were recorded by the FBI, the defendants explained in detail the measures they took to avoid detection of their money laundering scheme by law enforcement – Dodd insisted that the undercover agent download and use encryption software for online chats and voice communications, Landgaard insisted that the cash be provided in expensive Louis Vuitton duffel bags, and Shipman explained their reasoning, “You know why they do that? Because cops can’t get the authority to buy a Louis Vuitton bag, it’s too expensive ….” Landgaard and Shipman also insisted that the undercover agent buy a “throwaway” or “burner” phone on which to speak to them about the scheme.
The guilty pleas took place before United States District Judge John Gleeson at the United States Courthouse in Brooklyn, New York. When sentenced, the defendants each face a maximum sentence of 20 years’ imprisonment.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Jack Dennehy is in charge of the prosecution. Assistant United States Attorneys Brian Morris and Karin Orenstein of the Office’s Civil Division are responsible for the forfeiture of assets.
* * *
This prosecution was the result of efforts by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets, and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
* * *
The Defendants:
Name: Michael Dodd, also known as "Michael Stanley"
Age: 65
Panama City, PanamaName: Kenneth Landgaard
Age: 46
Alexandria, MinnesotaName: James Robert Shipman, Jr.
Age: 64
Hollywood, FloridaE.D.N.Y. Docket No. 15-CR-552 (JG)
Essex County, New Jersey, Man Charged with Two Bank Robberies and Using Firearm in Connection with Crime of ViolenceRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man charged with robbing Capital One Bank in Newark twice, including once in an armed robbery, will make his initial court appearance today, U.S. Attorney Paul J. Fishman announced.
Gregory A. Jones, 59, of Newark, is charged by complaint with two counts of bank robbery and one count of using a firearm during the commission of a crime of violence. Jones is expected to make his initial appearance this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the complaint and statements made in court:
On May 6, 2014, Jones entered the Capital One Bank wearing dark glasses and a scarf and presented the teller a note demanding cash. After Jones left the bank with stolen money, including a dye pack, law enforcement recovered a pair of dark glasses and a scarf near the bank next to currency, saturated with ink from the dye pack. DNA recovered from the glasses and the scarf matched a DNA sample that previously was lawfully obtained from Jones. He was later identified based on surveillance video and witness statements.
On Sept. 19, 2014, Jones entered the bank again, brandished a firearm from underneath his sweater, and told a teller to give him money, stating that he had a gun and would shoot. Jones fired the weapon into the ceiling. He was later identified using surveillance video and witness statements.
Jones has been detained in the Essex County Jail on state charges related to the May 6, 2014 robbery.
The bank robbery counts each carry a maximum potential penalty of up to 20 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss. The discharging a firearm during the bank robbery count carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison, which must be served consecutive to the other counts.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, New Jersey; N.J. State Police, under the direction of Col. Rick Fuentes; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; and the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
District Heights Man Convicted for Involuntary Manslaughter in Fatal Baltimore-Washington Parkway Car CrashRead the Press Release
Greenbelt, Maryland – A federal jury convicted Anthony Lamont Payne, age 27, of District Heights, Maryland, today for involuntary manslaughter in connection with a fatal car crash that occurred on the Baltimore-Washington Parkway on March 20, 2015. The jury acquitted Payne of second degree murder.
“The evidence showed that Anthony Lamont Payne threatened the victim with a gun, then chased his car on the Baltimore-Washington Parkway at speeds of up to 115 miles per hour,” said U.S. Attorney Rod J. Rosenstein. “Payne’s atrocious criminal conduct caused the tragic death of Terrance Terrelle Lagrue, a 19 year old man.”
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief of Police Robert D. MacLean of the U.S. Park Police.
According to evidence presented at the four day trial, Payne caused the death of the victim on March 20, 2015, following a high-speed chase on the Baltimore-Washington Parkway. Two eyewitnesses testified that Payne pointed a gun at the victim both before and during the chase on the Parkway. According to trial testimony, the victim’s car was hit by Payne’s vehicle, causing the victim’s vehicle to roll over and burst into flame. Scientific evidence presented at trial from the airbag module in Payne’s vehicle showed that Payne was driving 115 miles per hour at the time of the collision. The victim died at the scene.
Payne faces a maximum sentence eight years in prison. U.S. District Judge Theodore J. Chuang has scheduled sentencing for April 25, 2016 at 2:00 p.m. Payne has been detained since his arrest on April 28, 2015.
United States Attorney Rod J. Rosenstein praised the U.S. Park Police for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Hollis Raphael Weisman and Special Assistant United States Attorney Conor Mulroe, who are prosecuting the case.
Denham Springs Woman Pleads Guilty to Embezzlement of over $600,000Read the Press Release
U.S. Attorney Kenneth A. Polite announced that KRISTEN KOENIG, a/k/a KRISTEN BARNES, age 41, of Denham Springs, pled guilty today to one count of bank fraud.
According to court records, KOENIG was hired to do accounting work for a Jefferson Parish business. From September of 2011 through July of 2014, KOENIG embezzled $601,822.90 from her client by forging her name on company checks and manipulating internal computer/accounting records.
KOENIG faces a sentence of up to thirty years in prison, up to $250,000 in fines, and up to three years of supervised release. U.S. District Judge Jay C. Zainey set sentencing on April 19, 2016.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, along with assistance from the Internal Revenue Service and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Edward J. Rivera is in charge of the prosecution.
Corpus Christi Firefighter Sentence for Production of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Justin Ryan Serna, 28, of Corpus Christi, has been ordered to prison for sexual exploitation of a child, otherwise known as production of child pornography, announced U.S. Attorney Kenneth Magidson. Serna pleaded guilty in October 2015.
Today, Senior US. District Judge John D. Rainey sentenced Serna to 15 years in federal prison to be immediately followed by 10 years of supervised release. He must also register as a sex offender.
At the hearing, the victim's father gave a statement explaining how the crime effected his daughter and family.
Serna came to the attention of authorities after they discovered electronic images on a notebook computer of a juvenile female engaged in a sexual act. After further investigation, law enforcement learned Serna enticed the juvenile female to engage in the sexually explicit conduct with the purpose of producing a visual depiction of the activities. Law enforcement identified the juvenile female who confirmed the activities. Authorities also learned many of the communications Serna had with the juvenile occurred while Serna was employed as a Corpus Christi firefighter.
Serna was arrested on the federal charges in July 2015 and has been in custody since that time where he will remain pending his transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation conducted by Homeland Security Investigations with the assistance of the Corpus Christi Police Department – Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
Colleton County Man Sentenced to 30 Years in Prison for Child Pornography OffensesRead the Press Release
Contact Person: Dean H. Secor (843) 266-1654
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Michael Robert Bixby, age 32, of Cottageville, South Carolina was sentenced today in federal court in Charleston, South Carolina, to a total of 360 months (30 years) for Receipt of Child Pornography, a violation of 18 U.S.C. § 2252A(a)(2), and Possession of Child Pornography, a violation of 18 U.S.C. § 2252A(a)(5)(B). Last March, Bixby plead guilty to those counts pursuant to a plea agreement in which Bixby agreed to a total sentence of 360 months (30 years). Senior United States District Judge Patrick Michael Duffy of Charleston sentenced Bixby to 360 months and 240 months in federal prison on those counts, respectively, to run concurrently. Judge Duffy also ordered Bixby to serve a lifetime term of supervised release after he is released from prison.
Evidence presented at the change of plea hearing established that Bixby engaged in sexually explicit conduct with a minor female in Colleton County on August 4, 2012, and he used a cell phone to take pictures of that conduct. When deputies with the Colleton County Sheriff’s Office arrested Bixby in North Charleston on August 9, 2012, those pictures were on his cell phone along with other images of child pornography that Bixby received from the internet, including images of prepubescent minors. At the time of the offenses, Bixby was a registered sex offender who had recently moved from Indiana to South Carolina without notifying Indiana or South Carolina authorities.
The case was investigated by agents of the Federal Bureau of Investigation (FBI) and the Colleton County Sheriff’s Office. Assistant United States Attorney Dean H. Secor of the Charleston office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
#####
Clovis Man Sentenced to Twelve and a Half Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Michael Montoya, 37, of Clovis, N.M., was sentenced today in federal court in Albuquerque, N.M., to 151 months in prison for his methamphetamine trafficking conviction. Montoya will be on supervised release for ten years following his incarceration. Montoya was also ordered to pay a money judgment in the amount of $60,000.00.
Montoya and his co-defendants, Brian Acuna, 23, and Dianna Hernandez-Trujillo, 24, both of Clovis, N.M., and Alexander Page, 28, of Tucumcari, N.M., were arrested in Nov. 2013, on a six-count indictment charging them with trafficking methamphetamine in three New Mexico counties. Count 1 charged Montoya and his co-defendants with conspiracy to distribute methamphetamine in Curry County, N.M., between Oct. 2007 and Nov. 2013. Count 2 charged Montoya with possession of methamphetamine with intent to distribute on Oct. 11, 2011 in Curry County. Count 3 charged Montoya and Acuna, and Hernandez-Trujillo with possession of methamphetamine with intent to distribute on March 27, 2012, in Cibola County. Count 4 charged Montoya and Page with possession of methamphetamine with intent to distribute on Nov. 7, 2012, in Socorro County. Count 5 charged Montoya with money laundering for purchasing a residence with money derived from a drug trafficking activity on Sept. 22, 2010. Count 6 charged Acuna with using and carrying a firearm in relation to a drug trafficking crime on March 27, 2012, in Cibola County.
On Oct. 1, 2015, Montoya pled guilty to Count1 of the indictment charging him with conspiracy to distribute methamphetamine and Count 5 charging him with money laundering. In his plea agreement, Montoya admitted arranging for drivers to travel to California in vehicles he provided so that they could transport methamphetamine from his sources of supply. Montoya then distributed the methamphetamine in New Mexico. He also admitted being the owner of the 1.7 kilograms of methamphetamine seized from Acuna on March 27, 2012, and the 1.2 kilograms of methamphetamine seized from Page on Nov. 7, 2012, as well as providing the vehicles Acuna and Page were driving. In entering his guilty plea, Montoya also admitted that on Sept. 22, 2010, he purchased a residence in Clovis with proceeds from his ongoing narcotics activities. He also admitted that drug trafficking proceeds were his only source of income from 2005 through 2011, and that he did not file federal income tax returns on that income during those years.
On July 7, 2015, Page pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In his plea agreement, Page admitted that he was stopped for driving 85 miles per hour in a 35 mile per hour zone by a deputy of the Socorro County Sheriff’s Office on Nov. 7, 2012, while traveling near Socorro, N.M. During a search of the vehicle driven by Page, the deputy found approximately 1259 grams of methamphetamine in a hidden compartment in the vehicle. At the time, Page was transporting the methamphetamine to Clovis where the drugs were to be sold and where Page was to be paid for transporting the drugs. Page was sentenced on Nov. 30, 2015 to 27 months in prison followed by three years of supervised release.
Acuna pled guilty on June 26, 2014, to Counts 1 and 3 of the indictment, charging him with participation in a methamphetamine trafficking conspiracy and possession of methamphetamine with intent to distribute. He also pled guilty to Count 6 of the indictment, charging him with using and carrying a firearm in relation to and in furtherance of a drug trafficking crime. In entering his guilty plea, Acuna admitted that on March 27, 2012, he and a co-defendant were stopped by police while transporting methamphetamine from California to Clovis. At the time of the stop, Acuna and the co-defendant knew that a large quantity of methamphetamine was concealed in a secret compartment in the vehicle and that additional methamphetamine was in a backpack in the vehicle. Acuna also admitted that he had a revolver and ammunition in the vehicle for protection.
At sentencing, Acuna faces a mandatory minimum of 10 years to a maximum of life imprisonment on the methamphetamine trafficking charges. On the gun charge, Acuna faces a mandatory minimum of five years in prison which must be served consecutive to any sentence imposed on the drug charges. Acuna remains in federal custody pending his sentencing hearing, which has not yet been scheduled.
Hernandez-Trujillo has entered a not guilty plea to the indictment and is participating in a judicial pretrial diversion program. Charges in indictments are merely accusation and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and IRS-Criminal Investigation, Curry County Sheriff’s Office and City of Clovis Police Department. Assistant U.S. Attorneys Sean J. Sullivan and Jennifer M. Rozzoni are prosecuting this case.
Clarksburg man sentenced for heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Larry D. Saunders, 40, of Clarksburg, was sentenced today to 21 months in prison for heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Saunders sold heroin in April 2015 near a Harrison County, West Virginia playground. He pled guilty in September 2015 to one count of “Distribution of Heroin within 1,000 feet of a Protected Location – Aiding and Abetting.”
Assistant U.S. Attorney Stephen Vogrin and former Assistant U.S. Attorney Shawn Morgan prosecuted Saunders on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided.
Career Offender from California Sentenced to Twenty Years for Conviction on Federal Drug Trafficking and Firearms Charges in New MexicoRead the Press Release
ALBUQUERQUE – Marcos Anthony Correa, 31, of San Bernardino, Calif., was sentenced today in federal court in Albuquerque, N.M., to 20 years in prison followed by five years of supervised release for his methamphetamine trafficking and firearms convictions.
The sentence was announced by U.S. Attorney Damon P. Martinez, 8th Judicial District Attorney Donald Gallegos, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Pete N. Kassetas of the New Mexico State Police.
U.S. Attorney Damon P. Martinez said that Correa, a career criminal, was prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
“I am very grateful for this program and for the U.S. Attorney’s Office’s efforts to get violent career criminals off our streets. It is important that our communities know about the local/state/federal cooperation that is holding these criminals accountable,” said 8th Judicial District Attorney Donald Gallegos.
Correa was charged in a four-count indictment filed on Aug. 12, 2014, with possession of methamphetamine and heroin with intent to distribute, carrying a firearm in relation to a drug trafficking crime, and being a felon in possession of a firearm. The indictment was subsequently superseded on Sept. 9, 2014, to reflect an increase of the quantity of methamphetamine involved. Correa was charged with committing the four offenses on May 30, 2014, in Colfax County, N.M. At the time, Correa was prohibited from possessing firearms or ammunition because he previously had been convicted of multiple felony offenses, including evading a peace officer, possession of a controlled substance for sale, transporting a controlled substance with a participation in a criminal street gang enhancement and possession of heroin, resisting an officer.
Court records reflect that Correa was arrested on May 30, 2015, on related-state charges filed in the 8th Judicial District Court for the State of New Mexico in Colfax County, N.M. The state charges were dismissed in favor of federal prosecution.
On June 4, 2015, Correa pled guilty to possession of methamphetamine with intent to distribute and using a firearm in relation to a drug trafficking crime. In entering the guilty plea, Correa admitted that on May 30, 2014, he possessed 87.3 grams of 100% pure methamphetamine that he intended to deliver to another person. He further admitted possessing a semiautomatic pistol and ammunition in order to protect himself and his drugs in the event someone tried to rob him.
“This case highlights the impact we continue to have through the “worst of the worst” initiative. We will continue to work together and pursue those who threaten our community through the smuggling and distribution of illegal and dangerous drugs,” said DEA Special Agent in Charge Will R. Glaspy.
“I commend the outstanding investigative efforts of all our law enforcement partners. ATF will continue to utilize the full weight of the federal firearms to reduce violent crime in New Mexico,” stated ATF Special Agent in Charge Thomas G. Atteberry.
“The New Mexico State Police is committed to the safeguarding of our citizens and such apprehension of violent offenders is indicative of our ongoing efforts,” said New Mexico State Police Chief Pete N. Kassetas. “We will continue partnering with law enforcement to ensure our citizens are safe and criminals are removed from the communities they jeopardize.”This case was investigated by the Albuquerque offices of the DEA and ATF and the New Mexico State Police, with assistance from the 8th Judicial District Attorney’s Office. Assistant U.S. Attorney Samuel A. Hurtado prosecuted the case.
Bradford County Man Sentenced to Five Years in Prison for Possessing Child Pornography and Wire FraudRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 69-year-old Sayre, Pennsylvania resident was sentenced today to five years in prison by Senior U.S. District Court Judge Richard P. Conaboy in Scranton for possessing child pornography and participating in a wire fraud scheme.
According to United States Attorney Peter Smith, the defendant, Harold Schrader pleaded guilty in January 2015 to charges filed in November 2014. Schrader admitted that he possessed child pornography on a computer in 2012, and participated in a fraud scheme during 2008-2011. The fraud scheme involved using the internet to solicit overseas loans from others totaling more than $200,000. Those loans were never repaid.
The charges against Schrader resulted from an investigation by the Department of Homeland Security and the Pennsylvania State Police.
Judge Conaboy also ordered Schrader to pay $232,500 in restitution to victims of the fraud scheme. Schrader must also serve five years on supervised release following his prison sentence, register as a sex offender, undergo sex offender treatment, and comply with sex offender registration requirements.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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."
# # #
Binghamton Man Pleads Guilty to Sex Trafficking and Prostitution of A ChildRead the Press Release
BINGHAMTON, NEW YORK – Alphonso Dennis, age 34, of Binghamton, New York, pleaded guilty on Friday to 4 counts of sex trafficking of a child and 2 counts of prostitution of a child.
The announcement was made by United States Attorney Richard S. Hartunian, Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation, and New York State Police Superintendent Joseph A. D’Amico.
Sentencing is scheduled for May 27, 2016 before Senior United States District Judge Thomas J. McAvoy. Dennis faces a minimum term of 10 years and up to life in prison, as well as a minimum period of supervised release – to be served following his release from prison – of 5 years and up to life. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors. Upon release, Dennis will also have to register as a sex offender.
From about August 2014 to November 2014, in Broome County, Dennis hosted two minors at his apartment, who met with men in that apartment for the purpose of engaging in sex acts for money. Dennis also transported and caused the minors to be transported to various locations in order to meet with men, all for the purpose of having the minors engage in commercial sex acts. Throughout this time period, the minors were 15 years old and 14 years old, respectively, and Dennis knew that they were minors.
Using a cell phone and while in his apartment, Dennis took photos and caused photos to be taken of the minors in sexually provocative poses when they were barely dressed, and then used those photographs in advertisements placed on an Internet advertising site.
As men called the phone number listed in the advertisements, Dennis arranged for the men to meet with the minors. Dennis told the minors how much money to charge the men and required that the minors surrender to him 50% of the money that they received from the men.
The prosecution stems from an investigation into a child prostitution ring conducted by the Federal Bureau of Investigation, the New York State Police, and the Vestal Police Department.
The case is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Attorney General Loretta E. Lynch Statement on Recent Police Officer ShootingsRead the Press Release
Attorney General Loretta E. Lynch released the following statement on recent police officer shootings:
“I am appalled and deeply saddened by the recent shooting attacks against law enforcement officers in Danville, Ohio, and Holladay, Utah, in addition to an earlier ambush in Philadelphia, which left an officer injured. These heinous assaults are reminders of the difficult jobs that our brave law enforcement officers perform every day and of the dangers that they willingly face in the service of their communities. The Department of Justice is dedicated to supporting the courageous men and women who wear the badge and determined to do all that we can to keep them safe. We stand ready to offer any and all appropriate resources to help hold accountable those who threaten our communities, attack our neighbors and seek to harm the peacekeepers within our nation.”
Atlantic City Man Sentenced to 30 Months in Prison for Conspiring with Alleged Members of Organized Crime Family and Others in Fraud SchemeRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man was sentenced today to 30 months in prison for assisting members and associates of an organized crime family in a fraud scheme, U.S. Attorney Paul J. Fishman announced.
John Parisi, 54, previously pleaded guilty before U.S. District Judge Robert B. Kugler to conspiring to defraud FirstPlus Financial Group Inc. (FPFG), a Texas-based financial services company targeted for extortionate takeover and looting by a group led by Nicodemo S. Scarfo. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Parisi and 12 others – including his cousin, Scarfo, an alleged member of the Lucchese La Cosa Nostra (LCN) crime family, and Salvatore Pelullo, an alleged associate of the Lucchese and Philadelphia LCN families – were variously charged in a November 2011 indictment with a racketeering conspiracy, including acts of securities fraud, wire fraud, mail fraud, bank fraud, extortion, interstate travel in aid of racketeering, money laundering and obstruction of justice. The indictment charged that FPFG was targeted for extortionate takeover and looting by a group of the conspirators. A substantial part of the enterprise’s activities occurred in New Jersey, including communications and the transfer of money into and out of the state. John Parisi admitted that he joined the conspiracy in April 2007.
Parisi managed a family trust and a limited liability company on behalf of Scarfo as part of the scheme to defraud FPFG. Parisi said Scarfo directed him in the use of various bank accounts through which Scarfo received hundreds of thousands of dollars between July 2007 and April 2008 as part of the scheme. As alleged in the indictment, the money involved proceeds of the fraud that Scarfo allegedly received as part of a fraudulent “consulting” agreement between his shell company, Learned Associates, and one controlled by Pelullo. The money also involved proceeds received from the fraudulent sale of Scarfo and Pelullo’s worthless companies to FPFG in 2007. The receipt of the fraudulent proceeds often occurred in the form of wire transfers from accounts in Pennsylvania to accounts in New Jersey.
Parisi admitted that beginning in February 2008 he assisted Scarfo and his then-fiancée, Lisa Marie Scarfo, obtain a mortgage for a $715,000 house in Egg Harbor Township, New Jersey, that the Scarfos intended to purchase. Lisa Marie Scarfo pleaded guilty on Sept. 17, 2013, to a conspiracy to make a false mortgage loan application in connection with the purchase of the Egg Harbor Township house.
In addition to the prison term, Judge Kugler sentenced Parisi to two years of supervised release and ordered him to pay $14 million in restitution.
Scarfo, Pelullo, and William and John Maxwell were convicted in convicted in July 2014 of racketeering conspiracy and related offenses, including securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice, after a six-month trial before Judge Kugler. Scarfo and Pelullo were previously sentenced to 30 years in prison. William and John Maxwell were previously sentenced to 20 and 10 years in prison, respectively.
U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing. They also thanked the U.S. Department of Labor-Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations New York Region, the FBI’s Philadelphia Division and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their roles in the case.
The government is represented by Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the New Jersey U.S. Attorney’s Office Camden Office.
Defense counsel: Lisa Evans Lewis Esq., Camden
Amarillo Men Sentenced to Lengthy Federal Prison Sentences for Trafficking Large Quantity of Liquid MethamphetamineRead the Press Release
AMARILLO, Texas — Two Amarillo, Texas, men, who admitted trafficking a large quantity of liquid methamphetamine, have been sentenced by U.S. District Judge Mary Lou Robinson to lengthy federal prison terms, announced U.S. Attorney John Parker of the Northern District of Texas.
Today, Damian Erik Alcala, 37, was sentenced to 324 months in federal prison to run consecutively to the 37-month sentence he received for his supervised release revocation. In mid- December 2105, Richard Madrigal, 42, was sentenced to 262 months in federal prison to run consecutively to the 12-month sentence he received for his supervised release revocation. Each defendant pleaded guilty to one count of conspiracy to possess with intent to distribute and distribute 500 grams or more of methamphetamine. Both have been in federal custody since their arrest last summer on a related federal criminal complaint.
According to documents filed in the case, law enforcement learned that a green Chevy Blazer, with Chihuahua registration, was to arrive in Amarillo from El Paso, Texas, and that the vehicle was transporting a methamphetamine solution concealed in its fuel tank. On July 17, 2015, law enforcement observed Alcala, driving a white Toyota Camry, and Madrigal, driving a green Chevy Blazer, arrive at a residence on Houston Street in Amarillo. Shortly thereafter, both left the residence in the white Camry. Several minutes later, they returned to the residence and Madrigal left in the white Camry. When officers with the Amarillo Police Department arrived to secure the residence, Alcala fled on foot. Officers with the Amarillo Police Department apprehended Madrigal and brought him back to the residence.
During the subsequent execution of a search warrant at the residence, law enforcement found three Tupperware containers containing crystal methamphetamine in the kitchen. Two semi-automatic pistols were also found in the residence.
When law enforcement searched the green Chevy Blazer that was parked in the garage, they removed its fuel tank and extracted approximately 84 pounds of liquid methamphetamine from the fuel tank.
The Drug Enforcement Administration, the Amarillo Police Department, the Federal Bureau of Investigation and the Texas Department of Public Safety investigated. Assistant U.S. Attorney Joshua Frausto prosecuted.
# # #
Albuquerque Resident Pleads Guilty to Federal Charges Arising Out of January 2015 Pharmacy RobberyRead the Press Release
ALBUQUERQUE – Joseph Montano, 23, of Albuquerque, N.M., pleaded guilty today in federal court to felony charges arising out of a pharmacy robbery in Jan. 2015. Under the terms of his plea agreement, Montano will be sentenced within the range of 80 to 120 months in federal prison followed by a term of supervised release to be determined by the court.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, Chief Gorden Eden, Jr., of the Albuquerque Police Department, Chief Pete N. Kassetas of the New Mexico State Police.
Montano and his co-defendant Victor Hurtado, 21, also of Albuquerque, were charged in April 2015 with crimes arising from the Jan. 6, 2015, armed robbery of the Smith’s Pharmacy located at 4016 Louisiana Blvd. NE in Albuquerque. The indictment alleged that the two men (1) violated the Hobbs Act by interfering with interstate commerce by robbery and violence; (2) brandished a firearm during a crime of violence; (3) violated the Controlled Substance Registrant Act by robbery involving controlled substance; (4) violated the Safe Doses Act by theft of medical products; and (5) possessed Oxycodone with intent to distribute.
During today’s change of plea hearing, Montano plead guilty to violating the Hobbs Act by interfering with interstate commerce by robbery and violence, violating the Controlled Substance Registrant Act by robbery involving controlled substances, violating the Safe Doses Act by theft of medical products and possession of Oxycodone with intent to distribute. Montano admitted that on Jan. 6, 2015, he acted as a lookout while his accomplice jumped over the pharmacy counter at the Smith’s Pharmacy located at 4016 Louisiana Blvd. NE in Albuquerque, pointed a firearm at pharmacy employees and bagged bottles of Oxycodone pills. Montano further admitted that he and his accomplice intended to distribute the controlled substances to other individuals and that the replacement value to Smith’s Pharmacy for the stolen pills in approximately $1,831.00.
Montano remains in custody pending a sentencing hearing which has yet to be scheduled.
On July 1, 2015, co-defendant Hurtado pled guilty to robbing a commercial business engaged in interstate commerce; brandishing a firearm during a crime of violence, and possession of Oxycodone with intent to distribute. Hurtado also pled guilty to possession of methamphetamine with intent to distribute, and admitted that he was arrested on state charges on March 5, 2015, after the New Mexico State Police found 54 grams of heroin and 133 grams of methamphetamine in the vehicle Hurtado was driving. Hurtado was sentenced on Dec. 11, 2015, to 141 months in federal prison followed by three years of supervised release. Hurtado was also ordered to pay restitution to the pharmacy.
This case was investigated by the Albuquerque office of the FBI, the Tactical Diversion Squad of the DEA in Albuquerque, the Albuquerque Police Department and the New Mexico State Police, with assistance from the 2nd Judicial District Attorney’s Office in Bernalillo County. The case is being prosecuted by Assistant U.S. Attorneys Joel R. Meyers and Shaheen P. Torgoley.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
These cases are being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Albuquerque Man Sentenced to Five Years for Violating the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Antonio Escobedo, 41, a resident of Albuquerque, N.M., from Calera, Zacatecas, Mexico, was sentenced today in federal court to 60 months in prison for violating the federal firearms laws. Escobedo will be deported following his term of incarceration.
Escobedo was arrested in Feb. 2012, and charged by criminal complaint with possession of methamphetamine with intent to distribute on Feb. 2, 2012, in Bernalillo County, N.M. According to the complaint, on Feb. 2, 2012, law enforcement officers executed a search warrant on Escobedo’s residence and vehicle and seized approximately 29 grams of methamphetamine, three firearms and ammunition, $12,541.00 in cash and drug paraphernalia.
Escobedo was indicted on March 1, 2012, and charged with possession of methamphetamine with intent to distribute. The indictment was subsequently superseded on June 26, 2013, charging Escobedo with possession of methamphetamine with intent to distribute, being a felon in possession of firearms and possession of firearms in furtherance of a drug trafficking crime. Escobedo was prohibited from possessing firearms or ammunition because of his previous felony convictions.
On July 1, 2014, Escobedo pled guilty to possessing a firearm in furtherance of a drug trafficking crime. Escobedo admitted that on Feb. 2, 2012, he possessed methamphetamine inside of a shed on his property and inside of his vehicle, $12,541.00 in a bedroom closet, scales for weighing illegal drugs and wireless telephones for communicating about methamphetamine trafficking. He further admitted that the methamphetamine was intended for distribution to others and not for his personal use. Escobedo also admitted that he possessed three firearms in furtherance of his drug trafficking activities and that he was prepared to use the firearms to protect the controlled substances and proceeds of his drug trafficking activities.
This case was investigated by the Albuquerque offices of the DEA and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Sean J. Sullivan prosecuted the case.
Aiken Doctor Among Multiple Defendants Indicted for Illegal Distribution of OxycodoneRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles announced today an indictment charging multiple defendants, including Dr. Mackie James Walker, Jr., a podiatrist of Aiken, South Carolina, with their roles in a conspiracy to illegally distribute oxycodone.
The indictment alleges that the defendants conspired to possess with intent to distribute, and to distribute, oxycodone, a Schedule II controlled substance, from January 2013 and continuing until the date of the indictment, in violation of Title 21, United States Code, Section 846. Walker is also charged with two counts of distributing oxycodone without a legitimate medical purpose, in violation of Title 21, United States Code, Section 841(a)(1), and one count of using a telephone to facilitate the commission of a felony under the Controlled Substances Act, in violation of Title 21, United States Code, Section 843(b). The maximum penalty Walker could receive is twenty years’ imprisonment for the drug counts and four years’ imprisonment for the count charging use of a communication device to facilitate the commission of a felony under the Controlled Substances Act.
Mr. Nettles states that the indictment follows two other recent federal indictments charging multiple individuals in and around Aiken County with the illegal distribution of oxycodone, and it represents the office’s commitment to address the illegal distribution of prescription pills.
The indictment is the result of an investigation conducted by the Drug Enforcement Administration. Assistant United States Attorney Ben Garner of the Columbia office is prosecuting the case.
Mr. Nettles states that the charges in this Indictment are merely accusations and the defendants are presumed innocent until and unless proven guilty.
#####
Monday 18 January 2016
U.S. Attorney's Office collected nearly $41 million in 2015Read the Press Release
U.S. Attorney Steven M. Dettelbach announced that the Northern District of Ohio collected more than $40.7 million in Fiscal Year 2015 from criminal and civil actions.
Approximately $33.6 million was collected in criminal actions and about $7.1 million in civil actions.
Additionally, the office took in $12.6 million in civil and criminal forfeitures.
The office’s total overall budget for this fiscal year was about $16 million.
“Once again our office brought in millions of dollars and doubled our annual budget,” Dettelbach said. “In addition to thwarting terrorism, protecting the environment, enforcing civil rights laws, rooting out corruption and getting guns off the streets, this office protects the fiscal interests of the taxpayers and the Treasury.”
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources and protecting the American people from exploitation and abuse,” said Attorney General Lynch. “The collections we are announcing demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
The money is used to compensate crime victims, is distributed to state and local law enforcement partners who participate in investigations and is returned to the general treasury.
Among the largest collections this year:
United States v. Robinson Health System Inc.: The Ravenna-based nonprofit paid $10 million to settle claims that it violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute by engaging in improper financial relationships with referring physicians.
The settlement involved Robinson’s financial relationships with a number of referring physicians that allegedly violated the Anti-Kickback Statute and the Stark Statute, both of which restrict the financial relationships that hospitals may have with doctors who refer patients to them. These relationships included management agreements that Robinson had with two physicians groups. These physicians allegedly failed to provide sufficient bona fide management services to have justified the payments that they received. Robinson disclosed these issues to the government. The company operated a number of health care facilities in Portage County, including Robinson Memorial Hospital.
United States v. Thomas Shumay: Shumay paid $400,000 in restitution last year. He was previously found guilty of mail fraud and making false statements in relation to his work as president of All Tools. In that capacity, he was responsible for ensuring that landing gear parts produced and sold by All Tools for use on military aircraft were developed and tested in compliance with military contract specifications.
United States v. Scott A. Fisher: Fischer, of Marion, Ohio, was previously found guilty of tax evasion for evading nearly $900,000 in federal income tax between 2006 and n2010. Fisher paid the unpaid taxes leading up to plea. He was sentenced to one year in prison and fined $250,000. That fine was paid last year.
The Justice Department collected approximately $23.1 billion in civil and criminal actions across the country in the 2015 fiscal year.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal financial, health, safety, civil rights and environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $16.2 billion in payments made directly to the Justice Department and more than $6.8 billion in indirect payments made to other federal agencies, states and other designated recipients.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
A complete breakdown of collections in the Northern District of Ohio over past decade is as follows:
2014: $356.7 million
2013: $23.9 million
2012: $79.7 million
2011: $48.6 million
2010: $42 million
2009: $17.7 million
2008: $36.7 million
2007: $63.5 million
2006: $80 million
2005: $51.4 million
2004: $22.3 million
Sunday 17 January 2016
List of Individuals Receiving Pardons/CommutationsRead the Press Release
Below is a list of the seven defendants who either received pardons or commutations.
- Khosrow Afghahi – Southern District of Texas (Pardon)
Offenses: One count of conspiracy to violate the Iranian embargo and the Export Administration Regulations (EAR), one count of violating the Iranian embargo, one count of conspiracy to commit money laundering and one count of money laundering.
- Tooraj Faridi – Southern District of Texas (Pardon)
Offenses: One count of conspiracy to violate the Iranian embargo and the EAR, two counts of violating the Iranian embargo and one count of conspiracy to commit money laundering.
- Bahram Mechanic – Southern District of Texas (Pardon)
Offenses: One count of conspiracy to violate the Iranian embargo and the EAR, six counts of violating the Iranian embargo and the EAR, five counts of violating the Iranian embargo, one count of conspiracy to commit money laundering, eight counts money laundering and one count of failure to file Reports of Foreign Bank and Financial Accounts (FBARs).
- Nima Golestaneh – District of Vermont (Pardon)
Offenses: Four counts of wire fraud, one count each of conspiracy to access a computer without authorization and accessing a computer without authorization.
- Nader Modanlo, aka Modanlu and Modanlou – District of Maryland (Commutation)
Offenses: One count of conspiracy to violate the Iranian embargo, two counts of violating the Iranian embargo, one count each of money laundering and obstruction of bankruptcy proceedings.
- Arash Ghahreman – Southern District of California (Commutation)
Offenses: One count of conspiracy to violate the Iranian embargo, one count of conspiracy to smuggle goods from the United States, one count of attempting to violate the Iranian embargo, one count of smuggling, one count of conspiracy to money launder and two counts of money laundering.
- Ali Saboonchi – District of Maryland (Commutation)
Offenses: One count of conspiracy to violate the Iranian embargo and seven counts of violating the Iranian embargo.
Saturday 16 January 2016
Woodbridge Men Charged with Terrorism Offenses Related to Attempting to Travel to Syria to Join ISILRead the Press Release
ALEXANDRIA, Va. – Joseph Hassan Farrokh, 28, and Mahmoud Amin Mohamed Elhassan, 25, both of Woodbridge, were charged today for criminal activity relating to Farrokh’s attempt to travel to Syria to join the Islamic State of Iraq and the Levant (ISIL).
Farrokh was arrested yesterday afternoon at the Richmond International Airport as he attempted to board a flight to Chicago, where he intended to board a flight to Amman, Jordan, with an ultimate destination of Syria. Elhassan was arrested yesterday evening in Woodbridge after returning from driving Farrokh to Richmond and being interviewed by FBI agents.
Farrokh, who is a U.S. citizen originally from Pennsylvania, has been charged with attempting to provide material support and resources to a designated foreign terrorist organization. Elhassan, who is a legal permanent U.S. resident originally from Sudan, has been charged with aiding and abetting Farrokh’s attempt to provide material support and resources to a designated foreign terrorist organization.
According to the criminal complaints, since at least Nov. 20, 2015, Farrokh has been engaged in efforts to leave the United States and join ISIL in Syria. Farrokh purchased an airline ticket on Dec. 21, 2015, for flights departing yesterday from Richmond with an ultimate arrival destination of Jordan, and would then travel to Syria.
According to the criminal complaints, Elhassan introduced Farrokh to a person who Elhassan believed maintained connections to individuals engaged in jihad overseas. Elhassan also knew of Farrokh’s plans to travel to Syria to join ISIL, and Elhassan acknowledged to others that Farrokh was falsely telling his family that he intended to travel to Saudi Arabia to study.
According to the criminal complaints, Elhassan picked up Farrokh yesterday morning and drove him to Richmond to a location approximately one mile from the airport. Farrokh then took a cab to the airport, checked in for his flight, cleared security and was arrested as he was approaching his departure gate. After driving Farrokh to Richmond, Elhassan returned to Woodbridge yesterday afternoon and voluntarily consented to an interview by FBI agents. Elhassan acknowledged to the interviewing agents several times that he knew it was illegal to knowingly lie to federal agents, then proceeded to make a number of false statements in response to the agents’ questions. For example, when asked when he had last seen Farrokh, Elhassan told the agents it had been earlier in the day in Woodbridge. Elhassan also stated that Farrokh was going to the Dulles International Airport to fly to California to attend a funeral and would be gone for two weeks.
Farrokh and Elhassan each face a maximum penalty of 20 years in prison, if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The initial appearance for both men is scheduled for Jan. 19, 2016, in front of U.S. Magistrate Judge Theresa C. Buchanan at the federal courthouse in Alexandria.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John Carlin, Assistant Attorney General for National Security; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. The case is being prosecuted by Assistant U.S. Attorneys Gordon D. Kromberg and Dennis Fitzpatrick, along with Trial Attorney D. Andrew Sigler of the Justice Department’s National Security Division’s Counterterrorism Section. This case is being investigated by the FBI’s Joint Terrorism Task Force.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-24 (Farrokh) and 1:16-cr-25 (Elhassan).
The criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Two Virginia Men Charged with Terrorism Offenses Related to Attempted Travel to Syria to Join ISILRead the Press Release
Joseph Hassan Farrokh, 28, and Mahmoud Amin Mohamed Elhassan, 25, both of Woodbridge, Virginia, were charged today for criminal activity relating to Farrokh’s attempt to travel to Syria to join the Islamic State of Iraq and the Levant (ISIL).
The charges were announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.
Farrokh was arrested yesterday afternoon at the Richmond, Virginia, International Airport as he attempted to board a flight to Chicago, where he intended to board a flight to Amman, Jordan, with an ultimate destination of Syria. Elhassan was arrested yesterday evening in Woodbridge after returning from driving Farrokh to Richmond and being interviewed by FBI agents.
Farrokh, who is a U.S. citizen originally from Pennsylvania, has been charged with attempting to provide material support and resources to ISIL, a designated foreign terrorist organization. Elhassan, who is a legal permanent U.S. resident originally from Sudan, has been charged with aiding and abetting Farrokh’s attempt to provide material support and resources to a designated foreign terrorist organization.
According to the criminal complaints, since at least Nov. 20, 2015, Farrokh has been engaged in efforts to leave the United States and join ISIL in Syria. Farrokh met several times with confidential human sources in attempts to work out the details of how and when he could travel to Syria to join ISIL. Farrokh purchased airline tickets on Dec. 21, 2015, for flights departing yesterday from Richmond with an ultimate arrival destination of Jordan. He planned to thereafter travel to Syria to join ISIL. According to the criminal complaints, Elhassan introduced Farrokh to a person who Elhassan believed maintained connections to individuals engaged in jihad overseas, Elhassan knew of Farrokh’s plans to travel to Syria to join ISIL and he acknowledged to others that Farrokh was falsely telling his family that he intended to travel to Saudi Arabia to study.
According to the criminal complaints, Elhassan picked up Farrokh yesterday morning and drove him to Richmond, to a location approximately one mile from the airport. Farrokh subsequently took a cab to the airport, checked in for his flight, cleared security and was arrested. After driving Farrokh to Richmond, Elhassan returned to Woodbridge yesterday afternoon and voluntarily consented to an interview by FBI agents. Elhassan acknowledged to the interviewing agents several times that he knew it was illegal to knowingly lie to federal agents, then proceeded to make a number of false statements in response to the agents’ questions, according to the criminal complaints.
The initial appearance for both defendants is scheduled for Jan. 19, 2016, at the federal courthouse in Alexandria, Virginia.
If convicted, Farrokh and Elhassan each face a maximum penalty of 20 years in prison. The maximum statutory sentence is prescribed by Congress, and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
The case is being investigated by the FBI’s Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Gordon D. Kromberg and Dennis Fitzpatrick of the Eastern District of Virginia, along with Trial Attorney D. Andrew Sigler of the National Security Division’s Counterterrorism Section.
Farrokh Complaint
Elhassan Complaint