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Tuesday 12 January 2016
KC Man Sentenced for Armed Robbery ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to commit several armed robberies at restaurants in the metropolitan area.
Jeremy Hunter, also known as “Heat,” 25, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 10 years in federal prison without parole.
On Sept. 1, 2015, Hunter pleaded guilty to participating in a conspiracy to commit armed robbery, to one count of armed robbery and to one count of using a firearm in a crime of violence. Co-defendants Isiah G. Etienne, 20, and and Mikah M. Labayen, 20, both of Blue Springs, and Renargo L. Martin, 46, of Kansas City, Mo., have also pleaded guilty to their roles in the conspiracy and to related charges.
Hunter, Etienne, Labayen and Martin each admitted that he participated in a conspiracy to rob several fast food restaurants in the Kansas City area in the fall of 2014. Etienne and Labayen were employed at a Chipotle restaurant in Blue Springs. Using their knowledge of procedures commonly used by such establishments, conspirators would wait until the end of a business day, and then rob restaurants by waiting until an employee opened a door to take trash out of the premises. They rushed the door to gain access, and then forced the manager or shift supervisor to give them access to the restaurant’s safe. Conspirators threatened restaurant employees with an assault rifle in order to force their cooperation.
Hunter admitted that he participated in one of the robberies, and loaned his assault rifle to co-conspirators to use in several other robberies in exchange for part of the proceeds. Martin admitted that he drove Hunter to the Blue Springs Chipotle on Nov. 16, 2014. Hunter and Martin were given access to that restaurant’s back door by Labayen, an employee of the restaurant. Armed with his assault rifle, Hunter forced the restaurant employees to the ground as he kicked the door into the manager’s office. Once in the manager’s office, Hunter ordered the supervisor to open the safe and put all the money into a green duffle bag.
Etienne admitted that he robbed a Chipotle restaurant in Lee’s Summit, Mo., on Nov. 3, 2014, taking $1,600; a Burger King restaurant in Independence, Mo., on Nov. 10, 2014, taking $914 and again on Nov. 30, 2014, taking $565; and a Chipotle restaurant in Blue Springs on Nov. 16, 2014, taking $6,800. Following these robberies, Etienne and Labayen were captured after an attempted robbery of a motel.
This case is being prosecuted by Assistant U.S. Attorney Patrick Edwards. It was investigated by the Kansas City, Mo., Police Department, the Lee’s Summit, Mo., Police Department, the Blue Springs, Mo., Police Department and the FBI.
Jury Finds Waterloo Man Guilty of Production and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal jury found Ronald T. Spoor, 54, of Waterloo, NY, guilty of production and possession of child pornography. The charges carry a mandatory minimum sentence of 15 years in prison and a maximum of 30 years.“To learn that one’s child has been victimized by a predator is among the most distressing of life events. On behalf of the entire community, this Office thanks all who testified against the defendant we today convicted,” said U.S. Attorney Hochul. “Our commitment to them is this: at sentencing, we will seek the maximum punishment allowed by law.”
Assistant U.S. Attorneys Bradley E. Tyler and Craig Gestring, who handled the prosecution of the case, stated that in December 2012, the New York State Police were alerted by officials at a school in Seneca County, NY, after minor students indicated they had been abused by Spoor. The defendant was interviewed by investigators and admitted to abusing two victims under the age of 10 years old.
A search warrant was then executed at the defendant’s Waterloo residence. Officers seized computer hard drives, two pinhole cameras, and several flash drives. A forensic examination determined that four of the hard drives and a pinhole camera contained videos and images of child pornography including minor boys who had been videotaped by the defendant without their knowledge. Officers also discovered that the pinhole camera had been installed by the defendant in a bathroom and used by the defendant to record minor children.
The conviction is the culmination of an investigation on the part of the New York State Police, under the direction of Major Craig Hanesworth and Immigration and Customs Enforcement, Homeland security Investigations, under the direction of Special Agent in Charge James C. Spero.
Sentencing is scheduled for May 4, 2016 before Judge Charles J. Siragusa who presided over the trial.
Hagerstown Man Pleads Guilty to Conspiracy to Distribute HeroinRead the Press Release
Baltimore, Maryland – Cory Allen Kline, age 32, of Hagerstown, Maryland pleaded guilty today to conspiracy to distribute heroin.
The guilty plea 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; Washington County Sheriff Douglas Mullendore; and Acting Hagerstown Police Chief Paul Kifer.
According to Kline’s plea agreement, early on April 13, 2015 Kline and a co-defendant went to a residence in Hagerstown, Maryland with a 19-year old woman from Clear Spring, Maryland. The woman was a recovering heroin addict who had recently been released from jail. While at the residence, Kline and his co-defendant agreed to provide heroin to the woman. After injecting the heroin, the woman became very high. Kline left the residence sometime before 6:00 a.m. The woman left the residence in her car at about 6:15a.m. and spoke to another individual on her cell phone from that time until approximately 7:06 a.m. on April 13. According to this individual, the victim stated she was very high and did not feel right, and the individual could hear the victim throwing up. The victim reported driving to a convenience store parking lot, and then to a nearby church. Toward the end of the call, the victim began nodding off and then stopped speaking. The victim’s body was discovered the following day in her car in a church parking lot in Hagerstown. The medical examiner reported that the cause of death was heroin intoxication. There were no drugs or drug paraphernalia found inside the vehicle, nor does the victim’s cell phone reflect any completed calls or outgoing messages after 7:06 a.m. on April 13. Kline admitted that his distribution of heroin resulted in the victim’s death.
Kline faces a maximum sentence of 20 years in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for April 11, 2016 at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended the DEA and the Washington County Narcotics Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Christina Hoffman and Robert R. Harding, who are prosecuting the case.
Gulfport Man Pleads Guilty in Case Involving 52 GunsRead the Press Release
Gulfport, Miss – Octavia Jermaine Winters, 32, of Gulfport, entered a guilty plea before U.S. District Judge Sul Ozerden to theft of firearms from a federal firearms licensee, announced U.S. Attorney Gregory K. Davis. The case involved the theft of 52 firearms from Friendly Pawn and Auto in Saucier Mississippi.
Winters will be sentenced on April 22, 2016, and faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives, the Drug Enforcement Administration and the Harrison County Sheriff’s Department. Assistant United States Attorney Annette Williams is prosecuting the case.
Germantown Felon Sentenced to over 10 Years in Prison for Conspiracy to Distribute Heroin and for the Illegal Possession of a GunRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Jelani Omar Johnson, age 34, of Germantown, Maryland today to six years in prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute heroin. Judge Grimm ordered that this sentence be served consecutive to the 51 month sentence Johnson previously received for being a felon in possession of a gun, which was charged in a separate case.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, from June through August 2013, Johnson conspired with others to distribute heroin in the Germantown area. Johnson had other conspirators drive him to locations in Montgomery County, where he distributed the heroin, charging $100 to $120 per bag. Johnson traveled to Washington, D.C. and to Richmond, Virginia to obtain the heroin. Johnson cut the heroin he obtained with Xanax and other substances to increase the quantity of heroin.
According to documents filed in the case, at least two deaths occurred after individuals ingested heroin that Johnson had distributed. Statements made by Johnson suggest that he was aware that cutting agents he had added to the heroin were causing harm and he didn’t care. During his participation in the drug conspiracy, he possessed with intent to distribute between 80 and 100 grams of heroin.
According to his plea agreement in the gun case, Johnson contacted a Montgomery County Police Department confidential source and discussed obtaining a gun from the source. Johnson admitted that on October 1, 2013, he purchased a 9mm semi-automatic pistol from an undercover Montgomery County Police officer and the source, paying for the gun with cash and approximately one gram of heroin. Johnson had previously been convicted of a felony and was prohibited from possessing a gun.
United States Attorney Rod J. Rosenstein praised the ATF and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Mara Zusman Greenberg, Deborah A. Johnston, and Lindsay Eyler Kaplan, who prosecuted the case.
Fort Worth Men Sentenced to Lengthy Federal Prison Sentences for Role in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Two Fort Worth, Texas, area men were sentenced yesterday by U.S. District Judge Reed C. O’Connor to serve lengthy federal prison sentences for their roles in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Matthew Rutledge, 33, was sentenced to 324 months in federal prison, and Joel Prickett, 37, was sentenced to 160 months in federal prison. Each pleaded guilty last year to one count of conspiracy to possess with intent to distribute more than 50 grams of methamphetamine.
According to documents filed in the case, since approximately 2014, Rutledge and Prickett distributed methamphetamine to others. A total of 29 defendants were charged in that case; 28 have been convicted, and most of those have been sentenced.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Texas Department of Public Safety and the Fort Worth Police Department investigated the case. Assistant U.S. Attorney Shawn Smith was in charge of the prosecution.
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Fort Myers Man Sentenced to 5 Years in Prison for Filing False Tax Returns and Aggravated Identity TheftRead the Press Release
Fort Myers, Florida – Senior U.S. District Judge John E. Steele today sentenced Stafford Kelly to five years in federal prison for filing false or fictitious claims with the IRS and aggravated identity theft. The Court also ordered him to pay $98,065 in restitution to the IRS. Kelly pleaded guilty on September 29, 2015.
According to court documents, between February and May 2013, Kelly, working with others, filed approximately 80 false income tax returns requesting $288,021 from the IRS. These returns were filed using stolen identities and personal identifying information belonging to others.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney David G. Lazarus.
Fort Hall Man Sentenced for Assault on an Officer and Illegal Possession of a FirearmRead the Press Release
POCATELLO – Raymond Hye Broncho, 40, of Fort Hall, Idaho, was sentenced today to 108 months in prison for assault on an officer with a dangerous weapon and illegal possession of a firearm by a drug user, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Broncho to serve three years of supervised release, and to forfeit the guns involved in the incident. Broncho pleaded guilty on October 27, 2015.
According to the plea agreement, on September 20, 2014, Fort Hall Police officers were dispatched to a residence at 144 Lodge Pine on the Fort Hall Indian Reservation for a report of shots being fired. An officer arrived at the residence and found the door open and the house empty. Rifle-type spent shell casings were found near the front door. Additional officers heard yelling outside and saw Broncho holding an assault rifle in front of his body in a tactical position, as though he could raise the barrel and aim and shoot at any moment. The defendant was saying, “They’re in the trees” and “Watch out, they’re going to get me,” as though he saw other persons who weren’t really there. The officer ordered Broncho to drop the rifle multiple times, but Broncho ignored the commands. Eventually, Broncho went back into his house and shut the door.
Other officers assembled in the area and set up a perimeter on the house, surrounding it with officers and trying to negotiate with the defendant. An officer heard Broncho yell that he had a “head shot” on an officer. The officer thought it could have been her so she moved to another location and finally was positioned at the corner of a house near the Broncho residence. While there, five shots rang out and the bullets impacted the ground a few feet from where the officer was standing. Later investigators found that the second officer’s car had been hit by three bullets from the round of five shots.
The Bannock County and Federal Bureau of Investigations Special Weapons and Tactics (SWAT) teams arrived. While three members of the Bannock County SWAT team were positioned to watch the Broncho residence, Broncho began yelling. Then the Bannock County Sheriff’s SWAT team members heard a round fired from a deep-sounding rifle and they saw the round hit right in front of the position of the three officers. Another round was fired which hit the ground five to ten feet in front of the officers’ position.
The defendant surrendered to police later. Police took the defendant’s rifle, a SKS, Norinco assault rifle into custody. Police also found a .22 caliber rifle in the house, which they took into custody.
Broncho admitted that he possessed the firearms while he was an unlawful user of a controlled substance. He admitted to police officers that he had been using methamphetamine just before the shooting incident began and a blood test showed methamphetamine in the defendant’s body.
The case was investigated by the Fort Hall Police Department, the Bannock County Sheriff’s Office, and the Federal Bureau of Investigation.
Former Office Manager Sentenced to 37 Months in Prison for Stealing More Than $253,000 from Her EmployerRead the Press Release
STATESVILLE, N.C. – Angelina Marie Parker, 44, of Lincolnton, N.C., was sentenced on Monday, January 11, 2016, to serve 37 months in prison for stealing more than $253,000 from her former employer, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, U.S. District Judge Richard Voorhees ordered Parker to serve three years of supervised release and to pay $158,134 as restitution.
U.S. Attorney Rose is joined in making today’s announcement by Matthew Quinn, Assistant Special Agent in Charge of the United States Secret Service, Charlotte Field Division.
According to filed court documents and yesterday’s sentencing hearing, Parker was employed as an office manager by Piedmont Urgent Care of North Carolina, Inc. (Piedmont Urgent Care), formerly located in Hickory, N.C. Parker was indicted on 23 counts of uttering forged securities (checks) in 2009. According to court documents and evidence from the sentencing hearing, beginning in 2004, Parker used her position to embezzle over $250,000 from her employer. Court records show that Parker executed the embezzlement scheme by generating unauthorized company checks payable in her name and the name of a relative. According to court records and court proceedings, Parker forged the signatures of the doctors who owned Piedmont Urgent Care, and deposited the checks into her bank account and the bank accounts of relatives. Court records also show that Parker concealed her theft of Piedmont Urgent Care’s money by altering the accounting records in the healthcare company’s computer system. Court records and evidence presented at sentencing indicate that Parker used the money to pay for personal expenses. Parker pleaded guilty in September 2014, to three counts of uttering counterfeit securities, namely the company’s checks, with the intent to deceive the organization.
At the sentencing hearing, the court heard victim testimony regarding the initial discovery of Parker’s embezzlement and the substantial impact Parker’s fraud had on Piedmont Urgent Care, its employees and the company’s owners. Sentencing testimony revealed that the physicians who owned Piedmont Urgent Care first became aware of Parker’s embezzlement in 2009, after switching accounting firms. When the physician’s confronted Parker of the fraud she admitted to stealing money. According to court records, Parker later admitted to another person who worked at Piedmont Urgent Care that she had been stealing as much as $5,000 a month for five years from the company. According to victim testimony during yesterday’s sentencing hearing, Piedmont Urgent Care was unable to recover from the effects of Parker’s embezzlement, and eventually 12 employees lost their jobs when the healthcare company ceased its operations in 2014.
In handing down Parker’s sentence, Judge Voorhees noted the substantial victim impact of Parker’s embezzlement and imposed the highest sentence of imprisonment pursuant to federal Sentencing Guidelines.
Parker will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the U.S. Secret Service. In making today’s announcement, U.S. Attorney Jill Westmoreland Rose thanked the North Carolina State Bureau of Investigation for their invaluable assistance in this case.
The prosecution for the government was handled by Assistant United States Attorneys Thomas O’Malley and Tiffany Mallory of the U.S. Attorney’s Office in Charlotte.
Former Las Vegas Metropolitan Police Department Officer Charged with Excessive Use of Force and Obstruction of JusticeRead the Press Release
The Justice Department today announced that a former Las Vegas Metropolitan Police Department Officer, Richard Thomas Scavone, 49, was indicted on charges of violating the civil rights of A.O., an unnamed victim, by using excessive force during an arrest and charges of obstruction of justice for falsifying a report. The indictment was returned by a federal grand jury in the District of Nevada.
According to the indictment, on Jan. 6, 2015, while acting as a police officer, Scavone allegedly assaulted “A.O.” resulting in bodily injury. The indictment alleges that Scavone grabbed the victim around the neck with his hand and threw A.O. to the ground; struck A.O. in the forehead with an open palm; twice slammed A.O.’s head onto the hood of his patrol vehicle; and slammed A.O. into the door of his patrol vehicle. The obstruction charge alleges that on or about Jan. 6, 2015, Scavone knowingly falsified and made false entries in a document with the intent of impeding, obstructing and influencing the investigation and proper administration of a matter within the jurisdiction of the FBI.
If convicted, the defendant faces a maximum sentence of 10 years in prison and a $250,000 fine on the civil rights count, and a maximum sentence of 20 years and a $250,000 fine on the obstruction count.
An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI’s Las Vegas Division. The case is being prosecuted by Trial Attorney Patricia Sumner of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorneys Nicholas Dickinson and Phillip Smith of the District of Nevada.
Scavone Indictment
Former Corrections Officer Sentenced to Federal Prison for Scheme to Smuggle Drugs into Otero County PrisonRead the Press Release
ALBUQUERQUE – Luis Delgadillo, 39, of El Paso, Texas, was sentenced today in federal court in Las Cruces, N.M., to 40 months in prison followed by three years of supervised release for his participation in a conspiracy to distribute methamphetamine and heroin into the Otero County Prison Facility (OCPF) in Chaparral, N.M. Delgadillo was employed as a corrections officer at the OCPF when he committed the crime for which he was sentenced.
Delgadillo was one of six individuals charged in April 2014, in a criminal complaint with conspiracy to violate the federal narcotics laws by smuggling controlled substances into the OCPF. The other defendants charged with participating in the conspiracy were Anna Lopez, 26, of Albuquerque, N.M., Nancy Salas, 37, of Alamogordo, N.M., and three OCPF inmates, Eric Lovato, 32, of Boles Acres, N.M., and Armando Lopez, 29, and Gary Borja, 28, both of Albuquerque. All six defendants subsequently were indicted on Aug. 20, 2014, and charged with conspiracy to distribute methamphetamine and heroin from Dec. 2013 through April 26, 2014, in Otero County, N.M.
The FBI initiated an investigation into the case in Jan. 2014, after receiving information from the New Mexico Corrections Department showing that Delgadillo was smuggling heroin and methamphetamine into the OCPF. The investigation, which included a review of recorded inmate telephone calls and OCPF surveillance video, physical surveillance and the results of inmate drug testing, identified the six defendants as members of a conspiracy who smuggled narcotics into the OCPF between Jan. 2014 and April 2014.
On Nov. 19, 2014, Delgadillo entered a guilty plea and admitted participating in a conspiracy to smuggle drugs into the OCPF between Dec. 2013 and April 2014. Delgadillo admitted smuggling an ounce of methamphetamine into the OCPF in Dec. 2013; an ounce of heroin in Feb. 2014; and another ounce of heroin in April 2014. He also admitted that on April 26, 2014, he met with Ana Lopez and obtained 25 grams of methamphetamine, 11 grams of heroin and 10 suboxone pills from her. He was arrested before he was able to smuggle the drugs into the OCPF.
Delgadillo’s five co-defendants have entered guilty pleas to the indictment. On June 24, 2015, Lopez was sentenced to 30 months in federal prison followed by two years of supervised release. Sentencing hearings for the four remaining co-defendants have yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and the New Mexico Corrections Department and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
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 trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Former Controller at Bowling Green Company Sentenced to 21 Months for Embezzling Nearly $240,000Read the Press Release
BOWLING GREEN, Ky. - The former controller of KY Express, LLC., located in Bowling Green, Kentucky, was sentenced in U.S. District Court today by U.S. District Judge Greg N. Stivers to 21 months in prison, followed by three years of supervised release and ordered to pay restitution in the amount of $238,935.64 announced U.S. Attorney John E. Kuhn, Jr. in custody
Almir Demirovic, 24, of Warren County, Kentucky, pleaded guilty to a nine count federal indictment on August 25, 2015. Demirovic was charged with nine counts of wire fraud related to a scheme to conceal his theft by creating unauthorized automated clearing house payments to himself that appeared similar in amount to other legitimate vendor payments. From January of 2013, until August of 2014, Demirovic admitted to making the unauthorized automated clearing house payments from the bank accounts of his employer, KY Express, LLC, at PNC Bank (payment processing center located in Pittsburgh, Pennsylvania) and BB&T Bank (payment processing center located in Wilson, North Carolina) to his personal bank account.
This case was prosecuted by Assistant United States Attorney Joshua Judd and was investigated by the Federal Bureau of Investigation (FBI).
Federal Grand Jury Charges Man Already Under Indictment with FraudRead the Press Release
PITTSBURGH – A Pittsburgh man has been indicted by a federal grand jury in Pittsburgh on charges of interstate stalking, wire fraud, aggravated identity theft and making false statements, United States Attorney David J. Hickton announced today.
The seven-count superseding indictment named Frederick H. Banks, 48, as the sole defendant.
According to the superseding indictment, Banks harassed an individual through telephone calls and a Craigslist posting. The superseding indictment also alleges that Banks defrauded Forex, a retail foreign exchange company, through a wire fraud and an aggravated identity theft scheme. Finally, the indictment alleges that Banks filed a false habeas corpus petition on behalf of a third party with the federal court.
The law provides for a maximum total sentence of 72 years in prison, a fine of $1,500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the superseding indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
El Paso Man Sentenced to 23 Years in Federal Prison for Production of Child PornographyRead the Press Release
In El Paso, 42–year-old Eric Flores was sentenced to 23 years in federal prison for production of child pornography announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division.
In addition to the prison term, United States District Judge Philip R. Martinez ordered that Flores be placed on supervised release for life after completing his prison term.
On October 21, 2015, Flores pleaded guilty to one count of production of child pornography. By pleading guilty, Flores admitted that on September 13, 2013, he produced visual depictions of a minor engaged in sexually explicit conduct.
Flores has remained in federal custody since his arrest by FBI agents on May 6, 2015.
“FBI El Paso is committed to serve our community, particularly those who cannot protect themselves, our children,” stated FBI Special Agent in Charge Douglas E. Lindquist.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Rifian Newaz.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
Department of Justice Finds Leflore County, Mississippi, Juvenile Detention Center School Violated Individuals with Disabilities Education ActRead the Press Release
The Justice Department’s Civil Rights Division announced today that it has completed its investigation of special education services at the Leflore County, Mississippi, Juvenile Detention Center and found that the state of Mississippi violated the Individuals with Disabilities Education Act (IDEA) at the detention center school.
In the letter of findings sent to Mississippi Governor Phil Bryant and Mississippi Attorney General Jim Hood, the department concluded that the provision of special education services at the Detention Center school violated IDEA in three important respects: failing to identify, locate and evaluate children with disabilities; failing to promptly obtain Individualized Education Programs (IEP) from home schools; and depriving students with disabilities of a free appropriate public education (FAPE).
The Justice Department investigation found that the detention center school has failed to implement appropriate policies and procedures to identify, locate and evaluate children with disabilities for special education services. For instance, the detention center has no intake practices to ask children if they received special education services at their home school. And once children are in the detention center school, there are no procedures to observe and respond to student performance that may indicate a special education need.
According to the department’s investigation, the detention center school does not promptly obtain students’ IEPs when they are identified as requiring special education services upon arrival. As a result, students are denied special education services that they were entitled to because the detention center school’s records retrieval practices are inadequate.
The Justice Department’s investigation also found that the detention center school failed to provide a free appropriate public education for children with disabilities. Contrary to the requirements of the IDEA, the detention center school did not use a child’s IEP to drive instruction and often did not provide education services required in the IEP.
“Students with disabilities do not forfeit their rights to special education services simply because they are accused of or have committed juvenile offenses,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Agencies that are involved in the provision of special education of children in correctional facilities, such as the Mississippi Department of Education, must continue to ensure that students receive special education services even while incarcerated.”
“Incarceration for even a short time is a turbulent time in a child’s life, and appropriate special education services can be a stabilizing factor,” said U.S. Attorney Felicia C. Adams of the Northern District of Mississippi. “The Justice Department looks forward to continued cooperation with Mississippi to resolve these findings under mutually agreeable terms.”
The Justice Department began its comprehensive investigation of the conditions at the detention center in 2009. In March 2011, the department issued a findings letter identifying violations of children’s educational rights, as well as Constitutional violations related to safety and security. In June 2015, the U.S. District Court for the Northern District of Mississippi entered a consent decree between the United States and Leflore County that resolved the United States’ safety and security claims.
The findings letter the Justice Department issued today as to special education is directed to the state of Mississippi because it took over the Leflore County School system in 2013 and is therefore responsible for special education services at the detention center school. The department opened its investigation of Mississippi’s compliance with IDEA in 2014, and received full cooperation in this investigation from Mississippi and the staff at the detention center.
For more information about the Justice Department’s Civil Rights Division, please visit justice.gov/crt.
Leflore County Findings Letter
Darrel Salazar Arrested on Federal Attempted Bank Robbery ChargeRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division and Chief Gorden E. Eden, Jr., of the Albuquerque Police Department (APD) announced the arrest of Darrel Salazar, 47, of Albuquerque, N.M., on a criminal complaint charging him with attempted bank robbery.
Salazar was arrested this morning by the FBI and made his initial appearance in federal court earlier today. He remains in federal custody pending a preliminary hearing and a detention hearing, both of which are scheduled at 9:30 a.m. tomorrow morning.
According to the criminal complaint, on the afternoon of Jan. 11, 2016, Salazar attempted unsuccessfully to rob the branch of the Bank of America located at 3101 Carlisle Blvd. NE in Albuquerque. The criminal complaint alleges that shortly before 4:00 p.m., Salazar entered the bank where he allegedly passed a note demanding cash to a bank teller and brandished a firearm at the teller in an effort to rob the bank. Salazar allegedly left the bank without obtaining any cash and was apprehended shortly thereafter in the vicinity of a nearby convenience store by APD officers.
According to the criminal complaint, immediately before he was apprehended, Salazar was shot by an APD officer after Salazar allegedly pointed a firearm at APD officers. Thereafter Salazar was admitted to the University of New Mexico Hospital where he was treated for his injuries.
If convicted on the attempted bank robbery charge, Salazar faces up to 20 years in federal prison. Charges in criminal complaints are mere accusations 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 APD. Assistant U.S. Attorney David M. Walsh is prosecuting the case.
Salazar Complaint
Connecticut Medical Equipment Company Pays $600,000 to Settle False Claims Act AllegationsRead the Press Release
United States Attorney Deirdre M. Daly and Connecticut Attorney General George Jepsen today announced that J&L MEDICAL SERVICES, LLC (“J&L MEDICAL”) has entered into a civil settlement agreement with the federal and state governments in which it will pay $600,000 to resolve allegations that it violated the federal and state False Claims Acts.
J&L MEDICAL is a durable medical equipment company located in Middlebury, Connecticut. As part of its business, J&L MEDICAL provides Continuous Positive Airway Pressure (CPAP) and Bilevel Positive Airway Pressure (BiPAP) devices and accessories to Medicare and Medicaid beneficiaries who have been diagnosed with obstructive sleep apnea.
It is alleged that J&L MEDICAL regularly utilized the services of unlicensed technicians to provide respiratory therapy services to Medicare and Medicaid beneficiaries, including setting up CPAP and BiPAP machines, fitting the patients with the masks used with those machines, and educating the patients about the use of the machines.
Under Connecticut law, the practice of respiratory therapy is a licensed activity. It is alleged that the respiratory therapy services in question could only be legally performed by licensed respiratory therapists.
To resolve the allegations under the federal and state False Claims Acts, J&L MEDICAL has agreed to pay $600,000, which covers conduct occurring from January 1, 2008 through May 15, 2013.
As part of the settlement, J&L MEDICAL also agreed to implement a Compliance Program intended to prevent and/or detect fraud, waste, and abuse in claims submitted by the company to the Connecticut Medicaid program.
A complaint against J&L MEDICAL was filed in the U.S. District Court in Connecticut under the qui tam, or whistleblower, provisions of the both the federal and state False Claims Acts. The relator (whistleblower), John Hart, a former employee of J&L MEDICAL and a licensed respiratory therapist, will receive a share of the proceeds of the settlement in the amount of $102,000.
The whistleblower provisions of both the federal and state False Claims Acts provide that the whistleblower is entitled to receive a percentage of the proceeds of any judgment or settlement recovered by the government.
“Health care providers must utilize properly licensed individuals to treat Medicare and Medicaid patients, and the failure to do will have serious consequences,” stated U.S. Attorney Daly. “The U.S. Attorney’s office is committed to vigorously pursuing health care providers who submit false or fraudulent claims to federal health care programs.”
“My office is committed to protecting Connecticut’s healthcare programs – as well as the taxpayers who fund them – from fraud,” said Attorney General Jepsen. “By bringing state False Claims Act cases such as this, we recover funds obtained through fraud and deter others from attempting similar schemes. I appreciate the continued coordination with our state and federal law enforcement partners to ensure that our most vulnerable citizens and our taxpayer interests are protected.”
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and Auditor Kevin Saunders, and by Assistant Attorney General Robert B. Teitelman, and Forensic Fraud Examiners Larry Marini and David Bouchard, of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Charleston felon sentenced for Federal gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today in federal court to a year and six months in prison for being a felon in possession of a firearm, announced Acting United States Attorney Carol Casto. John Stanley Ford, 25, previously pleaded guilty to the federal gun crime in October of 2015.
Ford admitted that on February 26, 2014, he possessed a Smith & Wesson .40 caliber pistol that he threw in the bushes when officers with the Charleston Police Department approached him. The West Virginia State Police Forensic Laboratory tested the firearm and found Ford’s DNA on the gun. Ford was prohibited under federal law from possessing any firearm because of a 2011 felony conviction in Kanawha County Circuit Court for wanton endangerment.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Charleston Police Department. Assistant United States Attorney Haley Bunn handled the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Cecil County Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
Baltimore, Maryland –James J. Stanley, age 29, of Rising Sun, Maryland, pleaded guilty today to distribution of child pornography. As part of his plea, Stanley also admitted to the attempted sexual exploitation of a minor.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief F.D. “Chip” Peterson, Jr. of the Rising Sun Police Department; and Cecil County State’s Attorney Ellis Rollins.
According to his plea agreement, Stanley used a website that hosts anonymous, randomized, one-to-one video and text chat. The website allows users to seek chat partners without creating an account or providing any identifying information, and markets itself as an opportunity for users to “Talk to strangers!” The website allows users to engage in text-based chat sessions with or without accompanying video from the user’s webcam. On October 20, 2014, while Stanley was participating in a video chat session on the website he used his webcam to display an image documenting the sexual abuse of a prepubescent girl, which was stored on his computer or other digital storage media.
Stanley also admitted that prior to January 14, 2015, he placed a digital recording device in a shower that he knew would be used by a minor female (Girl1), with the intent to create video recordings of Girl 1 engaged in sexually explicit conduct. Between November 14, 2014 and January 14, 2015, Stanley saved a video file to his computer that depicted Girl 1 taking a shower. Girl 1’s genital area is not visible in the video. Stanley stated that he used his mobile phone to record Girl 1 showering on approximately 10 occasions, although other videos of Girl 1 were not recovered.
As part of his plea agreement, Stanley 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).
Stanley and the government have agreed that if the Court accepts the plea agreement Stanley will be sentenced to between 10 and 20 years in prison, followed by a lifetime of supervised release. U.S. District Judge George L. Russell III has scheduled sentencing for April 8, 2016 at 11:00 a.m.
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 HSI Baltimore, the Maryland State Police, Rising Sun Police Department, and the Cecil County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers, who is prosecuting the case.
Caribou Man Pleads Guilty to Bath Salts Distribution ConspiracyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Dustin Giles, 30, of Caribou, Maine, pleaded guilty today in U.S. District Court to conspiracy to possess with intent to distribute and to distribute bath salts.
According to court records, between about January 2012 and June 2014, Giles conspired with others in Aroostook County to obtain bath salts overseas via the internet and distribute it. Specifically, Giles was supplied with bath salts by another member of the conspiracy and distributed it to multiple customers.
The defendant faces up to 20 year in prison and a $1,000,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency with assistance from the Aroostook County Sheriff’s Department and the U.S. Postal Inspection Service.
Carbondale Man Pleads Guilty to Receiving Child PornographyRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 27-year-old Carbondale man pleaded guilty today before U.S. Magistrate Judge Karoline Mehalchick to using a computer to download child pornography from an internet website.
According to United States Attorney Peter Smith, the defendant, Edward Jeter, admitted to committing the offense between November 2014 and August 2015. Agents found more than 90 videos and more than 2,100 images of child pornography on Jeter’s computer, including images of children between the ages of 3 and 14.
Jeter was charged in a Criminal Information filed in November 2015, as a result of a nationwide investigation by the Federal Bureau of Investigation.
Judge Mehalchick ordered a pre-sentence investigation to be completed. Senior U.S. District Court Judge Richard P. Conaboy will schedule a date for sentence. Jeter faces a mandatory minimum sentence of five years in prison and a potential maximum sentence of 20 years in prison.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Canadian Youth Soccer Coach Pleads Guilty to Sex Crime for Seeking Sex with Person he Believed was 12-Year-Old GirlRead the Press Release
A 47-year-old man from Surrey, British Columbia pleaded guilty today in U.S. District Court in Seattle to a federal sex crime, announced U.S. Attorney Annette L. Hayes. KULDIP “KELLY” SINGH MAHAL was arrested in February 2015 at a park in Burlington, Washington, where he was expecting to meet a 12-year-old girl whom he believed he had enticed into having sexual contact with him. MAHAL believed he had been corresponding with a 12-year-old girl, but in fact he sent multiple sexually explicit messages and photos to an undercover agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). Under the terms of the plea agreement both sides will recommend a sentence between 78 and 108 months in prison, but U.S. District Judge Robert S. Lasnik is not bound by those recommendations and can impose any sentence up the maximum of 30 years in prison. Sentencing is scheduled for April 1, 2016.
According to the plea agreement and other records filed in the case, MAHAL responded to a posting on the internet in January 2015. MAHAL sent a picture of his arms and upper body, and expressed interest in a sexual relationship. MAHAL continued to communicate with the undercover agent even after the agent claimed she was 12-years-old. In fact MAHAL sent sexually explicit photos of himself and repeatedly requested the “girl” send sexually explicit photos of herself back to him. MAHAL engaged in lengthy sexualized chats via text message with the “girl.” MAHAL crossed the border from Canada into the U.S. at Blaine, Washington and was arrested at the park where he thought he was going to meet the “girl” and have sex.
MAHAL was employed as a facilities manager for a Vancouver, BC tech firm and was a volunteer coach for a U-16 soccer team in British Columbia.
Under the terms of the plea agreement, MAHAL will undergo a psycho-sexual evaluation before sentencing. Based on the results prosecutors could recommend up to lifetime supervision for MAHAL. MAHAL will also be required to register as a sex offender.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and is being prosecuted by Assistant United States Attorney Kate Vaughan.
Buffalo Man Pleads Guilty to Bank RobberiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Kenneth Dykes, 50, of Buffalo, NY, pleaded guilty to bank robbery before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000, or both.Assistant U.S. Attorney Caleb J. Petzoldt, who is handling the case, stated that the defendant robbed three separate locations of M&T Bank: on January 14, 2015 on Seneca Street in Buffalo; on January 15, 2015 on Lake Avenue in Blasdell, NY; and on January 20, 2015 on Niagara Falls Boulevard in Amherst, NY. During each robbery, Dykes verbally demanded money from a teller. On two occasions, the defendant led the teller to believe he had a firearm.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Amherst Police Department, under the direction Chief John Askey and the Village of Blasdell Police Department, under the direction of Officer in Charge Lieutenant Joseph Gramaglia.
Sentencing is scheduled for April 18, 2016, at 12:00 p.m. before Judge Arcara.Buffalo Man Arrested, Charged with Drug OffensesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. — U. S. Attorney William J. Hochul, Jr. announced today that Dellsean Hamilton, 26, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute, and distribution of, heroin. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that according to the complaint, on March 25, 2015, Cheektowaga Police officers recovered bundles of heroin following a traffic stop of a vehicle that the defendant was riding in. Analysis determined that some of the heroin contained fentanyl.
Subsequent investigation determined that Hamilton was a large volume heroin supplier in Buffalo and the surrounding area. The investigation included multiple undercover purchases from the defendant. On three separate occasions, December 11, 18 and 23, 2015, a confidential source purchased a quantity of heroin from Hamilton. Search warrants executed at residences at 1150 East Lovejoy Street and 2008 Bailey Avenue in Buffalo recovered a firearm and drug packaging materials and a scale.
The defendant made an initial appearance this morning before U.S. Magistrate Judge H. Kenneth Schroeder and was detained.
The criminal complaint is the culmination of an investigation by the Cheektowaga Police Department, under the direction of Chief David Zack, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Arizona Man Sentenced to Federal Prison for Violating Federal Narcotics Trafficking Laws in New MexicoRead the Press Release
ALBUQUERQUE – Jorge Antonio Rangel, 36, of Phoenix, Ariz., was sentenced today in federal court in Las Cruces, N.M., to 63 months in prison for his narcotics trafficking conviction. Rangel will be on supervised release for four years following his incarceration.
Rangel was arrested in Nov. 2014, and charged by criminal complaint with possession of heroin and methamphetamine with intent to distribute to Oct. 23, 2014, in Hidalgo County, N.M. According to the complaint, on Oct. 23, 2014, law enforcement officers executed a search warrant on Rangel’s vehicle and seized approximately four pounds of methamphetamine and two ounces of heroin. Rangel was subsequently indicted on the same charges on March 18, 2015.
On June 24, 2015, Rangel pled guilty to a felony information charging him with possession of methamphetamine and heroin with intent to distribute. In entering the guilty plea, Rangel admitted that on Oct. 23, 2014, he was stopped by law enforcement officers for speeding in Lordsburg, N.M., and during a search of his vehicle pursuant to a search warrant, the officers found approximately 4 pounds of methamphetamine and two ounces of heroin. Rangel admitted that he intended to deliver the methamphetamine and heroin to another person.
This case was investigated by Homeland Security Investigations and the Lordsburg Police Department. Assistant U.S. Attorney Anna R. Wright of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
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 trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Ambulance Company Owner Pleads Guilty to Health Care FraudRead the Press Release
CINCINNATI – Terry Johnson, 42, of Hamilton Ohio, pleaded guilty in U.S. District Court to one count of health care fraud and one count of money laundering.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Guy A. Ficco, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office, Lamont Pugh, Special Agent in Charge, Health and Human Services Office of Inspector General (HHS-OIG) and Ohio Attorney General Mike DeWine announced the plea entered into today before U.S. District Judge Michael R. Barrett.
According to court documents, Johnson is the owner and operator of Community Angels Ambulance Service, LLC, which provided medical transportation to dialysis patients from at least 2007 through 2012. He also operated the ambulance company Starlite Transportation.
For approximately seven years, Johnson fraudulently billed Medicare and Medicaid for ambulance and ambulette transports. Approximately $1.1 million was fraudulently billed to Medicare for Community Angels. The loss to Medicaid from both companies totaled more than $356,000.
“Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with government program money," said Guy A. Ficco, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. "Those individuals who engage in this type of health care fraud should know they will not go undetected and will be held accountable."
Health care fraud and money laundering are each crimes punishable by up to 10 years in prison.
U.S. Attorney Stewart commended the cooperative investigation by the IRS, HHS-OIG and the Ohio Attorney General’s Medicaid Fraud Unit, as well as Assistant United States Attorney Timothy Mangan, who is representing the United States in this case.
Alameda Real Estate Developer and Its President Plead Guilty to Securities Fraud and Wildlife ViolationsRead the Press Release
OAKLAND- An Alameda County development company, Wildlife Management, LLC, and its President, James Tong, pleaded guilty to crimes related to the illegal submission to the City of Dublin of a forged payment receipt, announced Acting U.S. Attorney Brian J. Stretch and U.S. Fish and Wildlife Service Special Agent in Charge Jill Birchell. The two plea agreements relate to charges that the defendants, after submitting the forged document, illegally caused a residential development site to be graded while sediment flowed off-site into a pond which was habitat for the California Tiger Salamander, a species protected under the Endangered Species Act. If accepted by the court, the plea agreements will result in a global resolution of state and federal criminal charges pending against the defendants that will result in a $1 million payment for restitution and a conservation easement on 107 acres of land in Contra Costa County.
Wildlife Management, LLC, based in Dublin, California, financed and developed residential and commercial real estate projects in the East Bay. Real estate developers like Wildlife Management are required to mitigate for the loss of threatened or endangered species or its habitats when a project impacts a protected species or its habitat. According to the plea agreement, during the development of the Dublin Ranch North real estate project in Dublin, Calif., a person acting on behalf of Wildlife Management submitted to the City of Dublin a forged $3.2 million mitigation receipt from the Ohlone Preserve Conservation Bank with the intent to deceive the City into believing Wildlife Management had purchased mitigation credits when it had not. Wildlife Management pleaded guilty to securities fraud, in violation of 18 U.S.C. § 513(a). In connection with the plea, Wildlife Management would pay $175,000 in restitution to resolve the federal case. The restitution would be paid to the National Fish and Wildlife Foundation, a non-profit organization established by Congress to administer such funds.
Tong, 70, of Pleasanton, Calif., and President of Wildlife Management, pleaded guilty to a criminal violation of the Endangered Species Act. In connection with the plea, Tong admitted he directed the grading activities at Dublin Ranch North without the City’s required mitigation measure and without authorization from wildlife officials. The grading activities caused sediment to run off into a pond on the adjoining property which provided habitat for the California Tiger Salamander. In the federal case, Tong was charged with one count of violating the Endangered Species Act, in violation of 16 U.S.C. §§ 1538(a)(1)(G) and 1540(b)(1). Tong also pleaded nolo contendere to a criminal forgery charge pending against him in state court. To resolve both the federal and state criminal cases, Tong has agreed to pay $350,000 to the Alameda County Fish and Game Commission, $175,000 to the Contra Costa County Fish and Wildlife Propagation Fund, and $300,000 to the California Department Fish and Wildlife. The funds paid to the California Department of Fish and Wildlife would be split equally between the Pollution Account and the Preservation Fund. If the plea agreement is accepted by the court, Tong also will provide a conservation easement on a 107-acre parcel of land in Contra Costa known as the Brown Ranch that provides habitat for endangered species. The value of the easement is estimated to be $3 million and it would prohibit any future owners from developing the property. In addition, Tong put $330,000 into an account to help manage the Brown Ranch.
The guilty pleas were received by United States District Judge Jon S. Tigar on January 8, 2016. Sentencing for Tong and Wildlife Management is scheduled to take place before Judge Tigar in Oakland on March 11, 2016, at 9:30 a.m.
Assistant U.S. Attorney Maureen Bessette is prosecuting the federal case with the assistance of Vanessa Quant. Deputy Attorney General Jason Malinsky prosecuted the state case. The prosecution was the result of an investigation by the California Department of Fish and Wildlife and the U.S. Fish & Wildlife Service.
Acoma Pueblo Man Sentenced to 97 Months for Voluntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Arthur L. Garcia, 24, an enrolled member and resident of Acoma Pueblo, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 97 months in prison followed by three years of supervised release for his voluntary manslaughter conviction.
Garcia was arrested in May 2014, and charged in a criminal complaint with killing a non-Native man in Indian Country in Cibola County, N.M., on May 8, 2014. The crime occurred during an argument between Garcia and the victim while the two men were drinking alcoholic beverages. The argument escalated into a physical altercation between the two men during which Garcia threw a ten-pound weight at the victim, hitting him in the head. Garcia then got on top of the victim and threw the weight down onto the victim’s face. Garcia was subsequently indicted on a second degree murder charge on May 21, 2014.
On March 27, 2015, Garcia pled guilty to a felony information charging him with voluntary manslaughter. In entering his guilty plea, Garcia admitted that on May 8, 2014, he killed the victim by striking him with a ten pound weight with the intention of causing him to suffer serious bodily injury. Garcia also admitted that his actions resulted in the victim’s death and that he committed the crime on the Acoma Pueblo Indian Reservation.
This case was investigated by the Albuquerque office of the FBI, the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Pueblo of Acoma Tribal Police Department. Assistant U.S. Attorney Niki Tapia-Brito prosecuted the case.
Monday 11 January 2016
Wellington Man Charged with Credit Card FraudRead the Press Release
A Palm Beach County resident is charged with using unauthorized personal identification information to facilitate a credit card fraud scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Delany De-Leon Colon, Inspector in Charge, United States Postal Inspection Service, Miami Division, made the announcement.
Kesner Joaseus, 46, of Wellington, FL, was charged by criminal complaint with aggravated identity theft, access device fraud, and bank fraud, in violation of Title 18, United States Code, Sections 1028A, 1029(a)(2) and 1344 (Case No. 15-CR-8006). If convicted, Joaseus faces up to 30 years in prison and up to $1 million in fines on the bank fraud charge, up to 10 years in prison and $250,000 in fines on the access device fraud charge, and two years in prison on the aggravated identity theft charge, to run consecutively to any other sentence imposed.
According to the criminal complaint, Joaseus used the personal identifiers, including the date of birth and Social Security number, of several victims to fraudulently obtain credit cards and then used the unauthorized cards to purchase merchandise and withdraw cash at various locations in Palm Beach County and elsewhere. The unauthorized merchandise purchases included two Mercedes-Benz automobiles. The total fraud loss resulting from the fraudulent scheme is estimated at over $260,000.
Mr. Ferrer commended the investigative efforts of the USPIS. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
A complaint is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
WV man convicted of role in animal fighting operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Steven Curtis Jennings, 54, of Kearneysville, West Virginia, was convicted today of unlawful possession of animals for the purpose of engaging in animal fighting, United States Attorney William J. Ihlenfeld, II, announced.
In June 2015, Jennings was discovered in possession of multiple dogs for the purpose of participating in an animal fighting venture. He pled guilty today to one count of “Possession of Animal for Participation in Animal Fighting Venture.” He faces up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul Camilletti prosecuted the case on behalf of the government. The Jefferson County, West Virginia Sheriff’s Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
United States Citizen Indicted for Supporting and Receiving Military Training from Al ShabaabRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, John P. Carlin, Assistant Attorney General for National Security, Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), announced today the indictment of MAALIK ALIM JONES based upon his alleged support of al Shabaab, a designated Foreign Terrorist Organization based in Somalia that is allied with al Qaeda. JONES, a United States citizen, was presented before Chief U.S. Magistrate Judge Frank Maas on December 19, 2015, pursuant to a Criminal Complaint. The case is assigned to U.S. District Judge Paul G. Gardephe.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Maalik Alim Jones traveled to Somalia, received military training from al Shabaab, and took up arms as a terrorist fighter with an organization that has declared the United States a target. Now, as ever, we are determined to protect the people of this country from the murderous designs of terrorist organizations. Having allegedly sworn allegiance to al Shabaab, a terrorist organization bent on destroying America, Maalik Jones will now face American justice in a Manhattan federal court.”
Assistant Attorney General John P. Carlin said: “Maalik Alim Jones was charged with providing material support to al Shabaab and receiving training from the terrorist organization. The National Security Division’s highest priority is counterterrorism and we will continue to hold accountable those who seek to provide material support to terrorists.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “This case highlights the international nature of terrorism and the criminal actions taken in pursuit of attacks against others. As alleged herein, Maalik Alim Jones, from Maryland, joined a terrorist organization in Somalia, traveled from New York to Kenya, through Morocco and the UAE, where he was trained to kill and destroy communities. Recently he was caught trying to get to Yemen. We applaud the thorough investigation by the agents and task force officers on FBI’s JTTF, who were able to identify his activities, stop his plans, and bring him here to face the U.S. justice system.”
Commissioner William J. Bratton said: “As alleged, Jones traveled to Somalia to fight on behalf of al Shabaab, learning to fire an AK-47 and rocket propelled grenade. He then used this training to attack the Kenyan government, fighting on behalf of this terrorist organization. The work by detectives and agents of the New York Joint Terrorism Task Force should be commended, and the prosecutors of the Southern District of New York whose efforts led to this indictment.”
According to the allegations in the Indictment, and the Complaint[1] that was unsealed in Manhattan federal court:
In February 2008, the U.S. Department of State designated al Shabaab as a Foreign Terrorist Organization. Al Shabaab has used violent means to, among other things, destabilize the government of Somalia, quell the Somali population, and force the withdrawal of foreign troops in Somalia. A former leader of al Shabaab, whose exhortations were echoed by the leadership of al Qaeda, called for foreign fighters to join al Shabaab in a “holy war” in Somalia. As a result of al Shabaab’s recruitment efforts, men from other countries – including the U.S. – have traveled to Somalia to engage in violent jihad. Since al Shabaab’s designation as a Foreign Terrorist Organization in February 2008, it has made several public statements demonstrating its intent to harm U.S. interests. In February 2012, the then-Emir of al Shabaab swore allegiance to Ayman al-Zawahiri, the Emir of al Qaeda, stating that al Shabaab “will hereby merge into al Qa’ida.”
Al Shabaab also maintains a specialized fighting force, known as Jaysh Ayman, that is responsible for carrying out commando-style attacks and cross-border raids in which fighters, among other things, travel across the land border between Somalia and Kenya to target individuals and carry out attacks against civilian and military targets in Kenya.
In or about July 2011, JONES traveled via commercial aircraft from New York to Kenya, with stopovers in Morocco and the United Arab Emirates. After arriving in Kenya, JONES traveled by land from Kenya to Somalia, where he trained, worked, and fought with al Shabaab in Somalia. Among other things, JONES received military training at an al Shabaab training camp, where he learned to operate an AK-47 assault rifle and rocket-propelled grenades. JONES also became a member of al Shabaab’s Jaysh Ayman, and participated in combat against soldiers of the Kenyan government on behalf of al Shabaab.
JONES has appeared with other al Shabaab fighters in at least two videos that were recovered from an al Shabaab fighter. In one of the videos, JONES possessed a firearm, and is seen with several al Shabaab fighters who participated in a June 14, 2015, attack on a Kenyan Defense Force base in Lamu County, Kenya, during which two Kenyan soldiers were killed.
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JONES, 31, of Maryland, is charged with five counts: (1) conspiracy to provide material support to al Shabaab; (2) providing, and attempting to provide, material support to al Shabaab; (3) conspiracy to receive military-type training from al Shabaab; (4) receipt of military-type training from al Shabaab; and (5) possessing, carrying, and using firearms during and in relation to a crime of violence. If convicted, JONES faces a maximum sentence of life in prison on the charges. In addition, Count Five carries a mandatory minimum sentence of 30 years in prison. The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the Court.
Mr. Bharara praised the investigative work of the FBI’s New York Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the New York City Police Department. He also expressed gratitude to the U.S. Department of Justice’s National Security Division and Office of International Affairs, and the U.S. Department of State, for their assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Sean S. Buckley and Andrew J. DeFilippis, and National Security Division Trial Attorney Josh Parecki, are in charge of the prosecution.
The charges contained in the Indictment and Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Indictment and the Complaint and the description of the Indictment and Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Un Hombre de Los Angeles Acusado Legalmente de Dirigir una Estafa Multimilloniaria en las Aperturas de Juicios de Rescates Hipotecarios en Visalia y SalinasRead the Press Release
FRESNO, Calif. – Un escrito de acusación se ha abierto hoy, acusando legalmente a un hombre de Los Ángeles de estar involucrado en una trama que estafaba a propietarios de viviendas que se encontraban en procesos de aperturas de juicios hipotecarios, anunció el Procurador de los Estados Unidos Benjamín B. Wagner.
El 31 de diciembre de 2015 un gran jurado federal dictó un escrito de acusación acusando legalmente a Martin Calzada, de 28 años de edad, y residente de Los Ángeles de conspirar a cometer fraude de correo y fraude de correo.
Según documentos del tribunal, entre agosto de 2010 y octubre de 2011, Calzada y otros empleados de la empresa Star Reliable Mortgage, que tenía oficinas en Bakersfield, Visalia y Salinas se dirigían a propietarios de viviendas afligidos con una estafa fraudulenta para “eliminar préstamos.” Star Reliable cobraba a sus clientes de entrada una cuota que oscilaba entre los $2,500 y los $4,500 dólares – como también cuotas mensuales, basándose en la promesa falsa de que los clientes podrían ver sus viviendas liberadas “de toda deuda” como resultado de los servicios prestados de Star Reliable. Para fomentar aún más la estafa, Calzada y otros empleados presentaban documentos fraudulentos en las oficinas de registros de propiedad del condado de parte de los propietarios-clientes en los que se pretendía reemplazar a los administradores legítimos de las propiedades con compañías fiduciarias ficticias asociadas con Calzada y Star Reliable; todo en un intento de “opacar el título” e impedir o atrasar el proceso judicial hipotecario. Además, Calzada y otros empleados que trabajaban bajo su dirección, dijeron a sus clientes que dejaran de pagar sus hipotecas. También expresaron falsamente que cada cliente tenía un millón de dólares en una cuenta del gobierno de los Estados Unidos que podía ser utilizada para terminar de pagar las hipotecas de cada uno de los propietarios.
En lugar de liberar “de toda deuda” sus viviendas, muchos de los clientes de Star Reliable perdieron sus viviendas en juicios hipotecarios. La estafa ocasionó que más de 100 propietarios-clientes pagaran aproximadamente $875, 000 dólares a Star Reliable y que las entidades de crédito perdieran más de $4 millones de dólares. Por lo menos unos $270,000 dólares del dinero pagado a Star Reliable por los propietarios-clientes fueron canalizados de vuelta a Calzada.
Este caso es el producto de una investigación llevada a cabo por la Oficina Federal de Investigaciones (FBI) y la Oficina del Fiscal del Distrito del Condado de Tulare. El Procurador Federal Auxiliar Patrick R. Delahunty está procesando el caso.
Si es declarado culpable, Calzada se enfrentaría a una pena máxima establecida por la ley de 30 años de prisión y una multa de $1 millón de dólares. Sin embargo, cualquier sentencia sería determinada a la discreción del tribunal después de considerar cualquier factor aplicable establecido por la ley y por las Normas para Sentenciar Federales. Los cargos son solo alegaciones; el demandado es presunto inocente hasta y a menos que sea comprobado culpable sin duda razonable.
U.S. Citizen Who Resides in Mexico Arrested Based on DEA Seizure of Twelve Pounds of HeroinRead the Press Release
ALBUQUERQUE – Ricardo Raul Murrietta-Romero, 38, a U.S. citizen who resides in Nogales, Mexico, made his initial appearance today in federal court in Albuquerque, N.M., on a criminal complaint charging him with possession of more than 12 pounds of heroin with intent to distribute. Murrietta-Romero remains in federal custody pending a preliminary hearing and a detention hearing which are scheduled for tomorrow morning.
Murrietta-Romero was arrested yesterday after DEA agents allegedly found approximately 12.208 pounds of heroin in his luggage at the Greyhound Bus Station in Albuquerque. If convicted on the charge in the criminal complaint, Murrietta-Romero faces a statutory penalty of a mandatory minimum of ten years and maximum of life in federal prison. Charges in criminal complaints are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Rumaldo R. Armijo is prosecuting the case.
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 trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
U.S. Citizen Indicted for Supporting and Receiving Military Training from Al ShabaabRead the Press Release
Maalik Alim Jones, 31, of Maryland, was indicted based on his alleged support of al Shabaab, a designated foreign terrorist organization based in Somalia that is allied with al Qaeda. Jones, a U.S. citizen, was presented before Chief U.S. Magistrate Judge Frank Maas of the Southern District of New York on Dec. 19, 2015, pursuant to a criminal complaint.
The charges were announced today by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara of the Southern District of New York, Assistant Director in Charge Diego Rodriguez of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department.
“Maalik Alim Jones was charged with providing material support to al Shabaab and receiving training from the terrorist organization,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is counterterrorism and we will continue to hold accountable those who seek to provide material support to terrorists.”
“As alleged, Maalik Alim Jones traveled to Somalia, received military training from al Shabaab, and took up arms as a terrorist fighter with an organization that has declared the United States a target,” said U.S. Attorney Bharara. “Now, as ever, we are determined to protect the people of this country from the murderous designs of terrorist organizations. Having allegedly sworn allegiance to al Shabaab, a terrorist organization bent on destroying America, Maalik Jones will now face American justice in a Manhattan federal court.”
“This case highlights the international nature of terrorism and the criminal actions taken in pursuit of attacks against others,” said Assistant Director in Charge Rodriguez. “As alleged herein, Maalik Alim Jones, from Maryland, joined a terrorist organization in Somalia, traveled from New York to Kenya, through Morocco and the UAE, where he was trained to kill and destroy communities. Recently he was caught trying to get to Yemen. We applaud the thorough investigation by the agents and task force officers on FBI’s JTTF, who were able to identify his activities, stop his plans, and bring him here to face the U.S. justice system.”
“As alleged, Jones traveled to Somalia to fight on behalf of al Shabaab, learning to fire an AK-47 and rocket propelled grenade,” said Commissioner Bratton. “He then used this training to attack the Kenyan government, fighting on behalf of this terrorist organization. The work by detectives and agents of the New York Joint Terrorism Task Force should be commended, and the prosecutors of the Southern District of New York whose efforts led to this indictment.”
According to the allegations in the indictment and the complaint, which was unsealed today:
In or about July 2011, Jones traveled via commercial aircraft from New York to Kenya, with stopovers in Morocco and the United Arab Emirates. After arriving in Kenya, Jones traveled by land from Kenya to Somalia where he trained, worked and fought with al Shabaab in Somalia. Among other things, Jones received military training at an al Shabaab training camp, where he learned to operate an AK-47 assault rifle and rocket-propelled grenades. Jones also became a member of al Shabaab’s specialized fighting force, Jaysh Ayman, and participated in combat against soldiers of the Kenyan government on behalf of al Shabaab.
Jones has appeared with other al Shabaab fighters in at least two videos that were recovered from an al Shabaab fighter. In one of the videos, Jones possessed a firearm, and is seen with several al Shabaab fighters who, on June 14, 2015, participated in an attack on a Kenyan Defense Force base in Lamu County, Kenya, during which two Kenyan soldiers were killed.
Jones is charged with conspiracy to provide material support to al Shabaab; providing, and attempting to provide, material support to al Shabaab; conspiracy to receive military-type training from al Shabaab; receipt of military-type training from al Shabaab; and possessing, carrying and using firearms during and in relation to a crime of violence. If convicted, Jones faces a maximum sentence of life imprisonment on the charges. In addition, the firearms offense carries a mandatory minimum sentence of 30 years’ imprisonment. The minimum and maximum potential sentences are prescribed by Congress and are provided here for information purposes only, as any sentencing of the defendant would be determined by the court.
The charges contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Assistant Attorney General Carlin joined U.S. Attorney Bharara in praising the investigative work of the FBI’s New York Joint Terrorism Task Force. The Justice Department’s Office of International Affairs also provided significant assistance.
This case is being prosecuted by Assistant U.S. Attorneys Sean S. Buckley and Andrew J. DeFilippis of the Southern District of New York and Trial Attorney Josh Parecki of the National Security Division’s Counterterrorism Section.
Maalik Jones Indictment
Maalik Jones Complaint
U.S. Attorney, Muslim-American Leaders to Host Community ConversationRead the Press Release
CINCINNATI – U.S. Attorney Carter M. Stewart will join members of the Board of Directors of the Islamic Center of Greater Cincinnati (ICGC) and other regional Muslim-American leaders to discuss building understanding and safety for Muslim-American communities.
The briefing will be held:
TOMORROW: JANUARY 12, 2016
WHEN: 4:00 P.M.
WHERE: Islamic Center of Greater Cincinnati
Education Building
8092 Plantation Drive
West Chester, OH 45069
WHO: U.S. Attorney Carter M. Stewart
Shakila Ahmad, President of the Board, ICGC
Community leaders
Room available beginning at 3:45 P.M. No TV lighting or multbox will be available. ID will be required for entrance.
U.S. Attorney's Office, Law Enforcement Agencies & Community Organizations Gather to Recognize "National Slavery and Human Trafficking Prevention Month" and to Raise Community AwarenessRead the Press Release
CHARLOTTE, N.C. – The U.S. Attorney’s Office, law enforcement agencies and community organizations gathered today in recognition of “National Slavery and Human Trafficking Prevention Month,” announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
During an early morning press conference, U.S. Attorney Rose emphasized the importance of raising awareness and educating the public about human trafficking and highlighted the continued efforts of law enforcement and the Charlotte Metropolitan Human Trafficking Task Force against one of the most grievous crimes impacting our communities today.
“Over the past five years, our response to the scourge of human trafficking has been persistent and aggressive. The U.S. Attorney’s Office has worked hand-in-hand with our law enforcement partners, community organizations and victims’ services groups to forge a strong coalition against human trafficking and to put end in the sex trafficking of children. While we’ve succeeded in raising public awareness, bringing perpetrators to justice and assisting victims rescued from a cycle of abuse and exploitation, our work is far from over. As we move forward, we will continue our record of success and draw upon our collective resources to identify and assist trafficking victims and put behind bars those who seek to profit from the exploitation of other human beings,” said U.S. Attorney Rose.
“Human trafficking is a form of modern-day slavery. Homeland Security Investigations continues to pursue the perpetrators of this heinous crime as one of its highest priorities, via a coordinated global effort with our federal, state and local law enforcement partners,” said Special Agent in Charge of HSI Atlanta Nick Annan. “Over the past two years HSI has doubled its number of human trafficking arrest and we will continue our relentless pursuit to investigate and seek prosecution of these criminals while also ensuring the victims of this terrible crime are rescued and get the care they need.”
“Human trafficking victims are trapped in lives of misery, often beaten, starved, and forced to work as prostitutes or to take grueling jobs with little or no pay. The FBI devotes a significant amount of resources to hold those accountable who sacrifice another person’s civil rights and freedom for their own profit,” said John A. Strong, Special Agent in Charge of the FBI in North Carolina.
The Charlotte Metropolitan Human Trafficking Task Force comprises law enforcement agencies – including ICE-Homeland Security Investigations, the FBI, and the Charlotte-Mecklenburg Police Department – federal and state prosecutors and community organizations. During today’s press conference, U.S. Attorney Rose praised the work of the task force for their ongoing collaboration and thanked its community partners for their unwavering commitment and critical assistance to rescued victims.
“Our community organizations have stepped up to the plate and have been incredible allies in our fight against human trafficking, by providing much-needed short and long-term assistance to those rescued from the hands of sex traffickers. As the victims slowly begin to rebuild their lives, access to resources, including food, shelter, medical and mental health services and legal assistance, is critical. Time and again, we have relied on our community groups to provide rescued victims with the recovery support they need, and their commitment and willingness to help has been nothing short of extraordinary,” said U.S. Attorney Rose.
This morning’s press conference was followed by a half-day training workshop organized by the task force. The workshop was open to the public with a special emphasis on members of the hospitality industry. The goal of the training was to enhance participants’ understanding of human trafficking and highlight best practices for supporting law enforcement in combating sex trafficking.
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If you believe you are the victim of a trafficking situation or may have information about a potential trafficking situation, call the National Human Trafficking Resource Center (NHTRC) at 1-888-373-7888. NHTRC is a national, toll-free hotline, with specialists available to answer calls from anywhere in the country, 24 hours a day, seven days a week, every day of the year related to potential trafficking victims, suspicious behaviors, and/or locations where trafficking is suspected to occur. You can also submit a tip to the NHTRC online.
You can also contact ICE-Homeland Security Investigations at 1-866-DHS-2-ICE (1-866-347-2423) or the Charlotte Office of the FBI at 704-672-6100.
Two Mercer County men prosecuted for distributing pain pillsRead the Press Release
BLUEFIELD, W.Va. – Two Mercer County men appeared in federal court today on drug charges, announced Acting United States Attorney Carol Casto.
George F. Brooks Jr., 45, of Princeton, was sentenced to eight years in federal prison for distribution of oxymorphone. Brooks previously pleaded guilty in June of 2015, and admitted that on December 3, 2014, he sold oxymorphone to a confidential informant working with law enforcement. The drug deal took place on High Street in Princeton.
Keith Joseph Alfred, 42, of Bluefield, pleaded guilty to distribution of hydromorphone. Alfred admitted that on October 22, 2013, in Bluewell, he sold four hydromorphone pills to a confidential informant working with law enforcement. He faces up to 20 years in federal prison and a $1 million fine when he is sentenced on April 5, 2016.
The investigations of Brooks and Alfred were conducted by the Southern Regional Drug and Violent Crime Task Force and the West Virginia State Police Bureau of Criminal Investigation. Assistant United States Attorney John File is handling the prosecutions. The hearings took place before Senior United States District Judge David A. Faber.
These cases were prosecuted as part of the Bluefield Pill Initiative, a collaborative, multi-agency regional law enforcement effort designed to halt prescription drug trafficking in Mercer, McDowell, and Wyoming counties. The Bluefield Pill Initiative is led by the Southern Regional Drug and Violent Crime Task Force, which includes the West Virginia State Police Bureau of Criminal Investigation; the Mercer, McDowell and Wyoming County Sheriff’s Departments; and the Bluefield and Princeton Police Departments.
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Tulalip Tribal Member Sentenced to Two Years in Prison for Purchasing Firearms While Subject to Domestic Violence Protection OrderRead the Press Release
The father of a teen who killed four students, severely injured a fifth student and killed himself last year at Marysville-Pilchuck High School was sentenced today in U.S. District Court in Seattle to two years in prison for six counts of illegal firearms possession, announced U.S. Attorney Annette L. Hayes. RAYMOND LEE FRYBERG, JR., 42, was convicted in September 2015 following a four day jury trial. At the sentencing hearing U.S. District Judge James L. Robart observed that FRYBERG felt his right to own guns “exceeded the law.” Judge Robart said he was troubled by FRYBERG’s failure to pay a fine ordered by the Tribal court, and instead illegally purchasing multiple firearms that were stored in an unsafe manner.
“Guns in the wrong hands are just plain wrong and will not be tolerated,” said U.S. Attorney Annette L. Hayes. “The Department of Justice has an ongoing commitment to prosecuting firearms crimes. The goal is to enforce our gun laws against those who pose a threat to public safety. Here the illegal possession of a firearm played a devastating role in a community tragedy.”
“This case underscores our commitment to keep our federally recognized Tribal communities safe,” said FBI Special Agent in Charge Frank Montoya, Jr. “So much tragedy stemmed from the actions of one person. I commend the resilience of the victim families and the community that are working to move forward.”
According to records filed in the case and testimony at trial, in 2002, FRYBERG’s then-girlfriend asked the Tulalip Tribal Court for an order of protection alleging FRYBERG had recently threatened her and had in the past physically assaulted her by hitting, slapping and/or pulling her hair. The protection order was made permanent in September 2002 and had no expiration date. In September 2012, FRYBERG was back in tribal court and pleaded “no contest” to violating the protection order. FRYBERG was fined and placed on probation for one year. Less than four months later, FRYBERG went to Cabela’s Sporting Goods store on the Tulalip reservation and purchased the Beretta, and, over subsequent months, four other firearms. FRYBERG filled out forms for the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) stating that he was not the subject of any court order restraining him from harassing, stalking, or threatening an intimate partner or the child of a partner. The form states that anyone subject to such an order is prohibited from purchasing a firearm.
According to testimony at trial, FRYBERG purchased a Beretta, Model PX4 Storm, in January, 2013. On October 24, 2014, FRYBERG’s son, 15-year-old Jaylen Fryberg, used the illegally purchased Beretta to kill four students and himself at Marysville-Pilchuck High School in Marysville, Washington. Fryberg’s cousin was critically injured but survived. Jurors were not told of the connection between FRYBERG’s weapons and the school shooting.
When law enforcement executed a search warrant at the FRYBERG home four months after the school shooting, they found five firearms unsecured in a bedroom of the home. Prosecutors noted in their sentencing memo that the firearms were not secured in a gun safe in the home, and instead were accessible to a 14-yearold and two children under the age of six.
The case was investigated by the FBI, and the Tulalip Tribal Police Department. The case was prosecuted by Assistant United States Attorneys Ye-Ting Woo and Bruce Miyake.
Tribunal Federal Paraliza Permanentemente Las Operaciones De Preparador De Impuestos De ColoradoRead the Press Release
Un tribunal federal ha prohibido en forma permanente a un hombre de Colorado y su empresa preparar declaraciones de impuestos federales, anunció hoy el Departamento de Justicia. Los Estados Unidos entablaron una demanda civil contra Gerardo Herrera y su empresa, El Lobo Multiservicios Profesionales Inc., en la que alega que redujeron las obligaciones tributarias de sus clientes fraudulentamente al declarar dependientes adicionales y reclamar deducciones de impuestos falsas. Después de que los demandados dejaron de contestar la demanda, el 7 de enero de 2016 el Juez John L. Kane emitió una orden prohibiendo a Herrera preparar declaraciones de impuestos en forma permanente.
De acuerdo con la demanda civil entablada por el gobierno, Herrera y su personal declararon repetidamente a miembros de la familia extendida de sus clientes como dependientes de los mismos, a pesar de que no cumplían los requisitos para dependientes según la ley federal, y solicitaron indebidamente deducciones por gastos personales como teléfonos celulares y seguro de automóvil. Además, de acuerdo con la demanda, las auditorías realizadas indicaron que Herrera y sus empleados exageraron deducciones, solicitaron deducciones fraudulentas por contribuciones caritativas y declararon indebidamente estado de jefe de familia. La demanda alega que el Servicio de Impuestos Internos [Internal Revenue Service (IRS)] auditó más de 200 formularios de declaración de impuestos preparados por la empresa de Herrera y encontró declaraciones falsas en más del 99 por ciento de las mismas.
El fraude cometido por preparadores de declaraciones de impuestos es uno de los Doce principales ardides tributarios del IRS de 2015. El portal del IRS incluye algunos consejos para la elección de un preparador de declaraciones de impuestos. En la última década, la División de Impuestos ha obtenido interdictos contra cientos de preparadores de impuestos fraudulentos. Se puede encontrar información sobre estos casos en el portal del Departamento de Justicia. Se encuentra una lista alfabética de personas prohibidas de preparar declaraciones de impuestos y promover ardides tributarios en esta página. Si usted cree que una de las personas o empresas bajo prohibición puede estar violando un interdicto, por favor comuníquese con la División de Impuestos para proveer detalles.
Tribal Member Sentenced in Washington State to Two Years in Prison for Purchasing Firearms While Subject to Domestic Violence Protection OrderRead the Press Release
One of Weapons Purchased Illegally Later Used in Marysville-Pilchuck School Shooting
The father of a teen who killed four students, severely injured a fifth student and killed himself in October 2014 at Marysville-Pilchuck High School in Washington State was sentenced today in U.S. District Court in Seattle to two years in prison for six counts of illegal firearms possession, announced U.S. Attorney Annette L. Hayes of the Western District of Washington. Raymond Lee Fryberg Jr., 42, was convicted in September 2015 following a four day jury trial. U.S. District Judge James L. Robart imposed three years of supervised release to follow the prison term.
“Guns in the wrong hands are just plain wrong and will not be tolerated,” said U.S. Attorney Hayes. “The Department of Justice has an ongoing commitment to prosecuting firearms crimes. The goal is to enforce our gun laws against those who pose a threat to public safety. Here the illegal possession of a firearm played a devastating role in a community tragedy.”
“This case underscores our commitment to keep our federally recognized Tribal communities safe,” said Special Agent in Charge Frank Montoya Jr. of the FBI’s Seattle’s Division. “So much tragedy stemmed from the actions of one person. I commend the resilience of the victim families and the community that are working to move forward.”
According to records filed in the case and testimony at trial, in 2002, Fryberg’s then-girlfriend asked the Tulalip Tribal Court for an order of protection. The protection order was made permanent in September 2002 and had no expiration date. In September 2012, Fryberg was back in tribal court and pleaded “no contest” to violating the protection order. Fryberg was fined and placed on probation for one year. Less than four months later, Fryberg went to Cabela’s Sporting Goods store on the Tulalip reservation and purchased a handgun, and, over subsequent months, four other firearms. Fryberg filled out forms for the Bureau of Alcohol, Tobacco, Firearms & Explosives stating that he was not the subject of any court order restraining him from harassing, stalking, or threatening an intimate partner or the child of a partner. The form states that anyone subject to such an order is prohibited from purchasing a firearm.
According to testimony at trial, Fryberg purchased a Beretta, Model PX4 Storm, in January, 2013. On Oct. 24, 2014, Fryberg’s son, Jaylen Fryberg, 15, used the illegally purchased Beretta to kill four students and himself at Marysville-Pilchuck High School in Marysville, Washington. Fryberg’s cousin was critically injured but survived. Jurors were not told of the connection between Fryberg’s weapons and the school shooting.
The case was investigated by the FBI, and the Tulalip Tribal Police Department. The case was prosecuted by Assistant U.S. Attorneys Ye-Ting Woo and Bruce Miyake.
Treasure Valley Contractor Pleads Guilty and is ResentencedRead the Press Release
BOISE – Elaine Martin, 69, of Meridian, Idaho, the former president and majority stockholder of MarCon, Inc., pleaded guilty to one count of making and subscribing a false tax return before Chief U.S. District Judge B. Lynn Winmill today, U.S. Attorney Wendy J. Olson announced. Following the entry of her plea, Judge Winmill sentenced her for the tax conviction, and resentenced her for wire fraud, mail fraud, and interstate transportation of property taken by fraud convictions. Judge Winmill sentenced Martin to 60 months’ imprisonment on the fraud convictions and 24 months’ imprisonment on the tax conviction, those sentences to run concurrently. Judge Winmill further ordered Martin to pay restitution to the IRS and Idaho Department of Transportation in the amount of $131,400.48, costs of prosecution in the amount of $22,859.60, and a forfeiture money judgment of $3,084,038.05, amounts Martin previously paid.
Previously, on September 19, 2013, after a 26-day trial, a federal jury convicted Martin of 22 criminal counts, including four counts of filing false individual and corporate tax returns, two counts of conspiracy to defraud the United States, five counts of wire fraud, five counts of mail fraud, one count of false statement, three counts of interstate transportation of property taken by fraud, one count of conspiracy to obstruct justice and one count of obstruction of justice. On February 24, 2014, Judge Winmill sentenced Martin to 24 months’ imprisonment on the tax, conspiracy, false statements, and obstruction counts, and 84 months’ imprisonment on the wire fraud, mail fraud, and interstate transportation of property taken by fraud counts, with these sentences to run concurrently. Further, he ordered Martin to pay restitution to the IRS and Idaho Department of Transportation in the amount of $131,400.48, costs of prosecution in the amount of $22,859.60, and a forfeiture money judgment of $3,084,038.05. On August 7, 2015, the United States Court of Appeals for the Ninth Circuit vacated Martin’s sentence and her tax convictions, and remanded the case for further proceedings, including resentencing on the fraud charges.
In the plea agreement, Martin admitted that she willfully signed false and fraudulent Form 1120S income tax returns for Marcon, Inc., a construction company that was located in Meridian, Idaho, for tax years 2005 and 2006. Martin also admitted that she caused these tax returns to be false and fraudulent by keeping the unreported income off of the books, and that she falsely told an IRS Revenue Agent, who was conducting a civil audit of Marcon, that all of Marcon’s gross receipts were deposited into Marcon’s Wells Fargo operating account. In fact, as Martin well knew at the time, she had and was causing gross receipts from the used material sales to be diverted and secretly deposited into Marcon’s Bank of Cascades account. Martin purposefully did not provide records for Marcon’s Bank of Cascades account to the individual who prepared her and Marcon’s tax returns for tax years 2005 and 2006. Martin admitted that the total tax loss was $73,678.
Further, Martin admitted in the plea agreement to her participation in the fraud counts, including the conspiracy to defraud the SBA 8(a) Program, and the U.S. Department of Transportation, Disadvantaged Business Enterprise (“DBE”) Program, by submitting fraudulent tax returns and making false statements concerning her finances that caused Marcon to qualify and/or remain eligible for these programs. Martin further admitted that her behavior affected the award of contracts pursuant to the 8(a) Program and DBE Programs. For example, Marcon’s status as an Idaho DBE affected how and what DBE goals were set for particular construction projects, and helped Marcon maintain a virtual monopoly in its geographic region between 2000 and 2006. Marcon participated in the SBA 8(a) Program pursuant to direct negotiations with the awarding agency, rather than through fair and open competition. Martin admitted that during the relevant time period, she would not have been awarded the 33 contracts at issue in the case but for the fraud.
As part of the plea agreement that Martin entered into today, she waived her right to further appeal.
The case was investigated by Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation, the Office of Inspector General for the U.S. Small Business Administration, and the Office of Inspector General for the U.S. Department of Transportation.
Today's announcement is part of efforts underway 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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
Three Sentenced in Bakersfield Heroin Trafficking ConspiracyRead the Press Release
FRESNO, Calif. — Three defendants have been sentenced by United States District Judge Anthony W. Ishii for a conspiracy to distribute heroin, United States Attorney Benjamin B. Wagner announced.
On Monday, Rafael Legorreta, 34, of Bakersfield, was sentenced to nine years and five months in prison, and Francisco Rivera, 29 of Palmdale, was sentenced to seven years in prison. On January 4, 2016, Julio Perez, 32, of Bakersfield, was sentenced to 10 years in prison.
According to court documents, on December 2, 2014, members of Kern County Sheriff’s Gang Suppression Unit conducted a probationary search of the home of Julio Perez. Perez, Legorreta, and Rivera were located in the locked basement of the residence with approximately 10 lbs. of heroin, together with packaging material, zip lock bags, digital scales, metal strainers, a blender, and drug paraphernalia, among other items. All three defendants appeared to have heroin residue on their hands and clothing, and all three subsequently admitted to their involvement in the conspiracy.
This case was the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Gang Suppression Unit. Assistant United States Attorney Brian K. Delaney prosecuted the case.
Three Palm Beach County Residents Charged in Elaborate Fraud Scheme Involving Rental Property TakeoversRead the Press Release
Three Palm Beach County residents are charged with running a fraudulent rental property scheme that caused the true property owner to sustain financial losses of hundreds of thousands of dollars.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, Sean Scheller, Chief of Police for the Town of Lantana, Florida, and Delany De-Leon Colon, Inspector in Charge, United States Postal Inspection Service, Miami Division, made the announcement.
Kesner Joaseus, 46, of Wellington, FL, Wadno Dorneau, 36, of West Palm Beach, and Miguel Tilus, 54, of Lake Worth, were charged by criminal complaint for their participation in a fraud scheme from November 2014 through January 2016. The defendants are charged with conspiracy to commit mail fraud, mail fraud, in violation of Title 18, United States Code, Sections 1341 and 1349 (Case No. 16-CR-8005). The defendants each face up to 20 years imprisonment, up to $250,000 in fines and mandatory restitution, on each count of conviction. Detention hearings have been scheduled for each defendant on January 19, 2016 in West Palm Beach.
According to court documents, a legitimate real estate investment trust based in Georgia, RHA 2, LLC, owns dozens of properties in Palm Beach and Broward Counties that it leases out as residential single family homes. This company operates as HavenBrook Homes. From November 2014 through the present, Joaseus, Dorneau and Tilus have conspired to use a similar company name, “RHA Two, LLC,” to illegally take possession of and rent the homes lawfully owned by HavenBrook by assuming the legitimate company’s identity.
In order to facilitate the fraud scheme, the defendants identify and monitor the status of homes being renovated by HavenBrook. When construction is nearing completion, the defendants remove the lockbox from a targeted home and call a locksmith to change the locks. After having the locks changed, sometimes within hours, the defendants place signs in high traffic areas advertising a home for rent and post one of several prepaid cellular telephone numbers.
When individuals seeking to rent a house call the listed numbers, one of the defendants arranges to meet the prospective renter at the property, presents the renter with fraudulent leases with a counterfeit “HavenBrook Homes” logo, and collects thousands of dollars in money orders or cash, purportedly for the security deposit, as well as the first and last month’s rent. In this manner, the defendants collected purported lease payments from dozens of tenants of houses owned by which the defendants had no right to possess.
During the course of the fraud scheme, at least 80 homes owned by HavenBrook Homes were taken over by the defendants, causing the company to sustain approximately $100,000 a month in rental income losses.
Mr. Ferrer commended the investigative efforts of the ICE-HSI, Lantana Police Department, and USPIS. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
A complaint is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Texas Man Arraigned in New Mexico on Indictment Alleging Scheme to Defraud Social Security AdministrationRead the Press Release
ALBUQUERQUE – Dannelly Labogin, 68, of Amarillo, Texas, was arraigned today in federal court in Las Cruces, N.M., on a 36-count indictment charging him with defrauding the Social Security Administration (SSA) of $82,483.00 in Social Security Child’s Insurance Benefits and theft of government property. Labogin entered a not guilty plea to the indictment and was released on his own recognizance.
Count 1 of the indictment alleges that between June 2007 and Nov. 2013, Labogin executed a scheme to defraud the SSA by continuing to receive benefits on his daughter’s behalf even though the girl had been adopted by others and was no longer in his care. It further alleges that as a result of this scheme, Labogin fraudulently received an aggregate of $82,483.00. Counts 2 through 36 of the indictment allege that Labogin knowingly stole and embezzled an aggregate of $26,633.00 in Social Security Child’s Insurance Benefit payments from the SSA between Oct. 1, 2010 and Dec. 3, 2013.
Labogin was arrested in Amarillo on Dec. 4, 2015, and was transferred to the District of New Mexico on Jan. 5, 2016, to face the charges against him.
If convicted, Labogin faces a statutory maximum penalty of five years in prison on the fraud charge and ten years in federal prison on each of the theft of government property charges. Maximum potential sentences are prescribed by Congress and the sentence imposed on a defendant is determined by the court.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Social Security Administration, Office of the Inspector General, and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Tahlequah Woman Pleads Guilty to Use of A Communication Device in Furtherance of Drug TraffickingRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that BRITTANI M. ROSS, age 26, of Tahlequah, Oklahoma, pled guilty to an Information charging her with USE OF A COMMUNICATION DEVICE IN FURTHERANCE OF DRUG TRAFFICKING, in violation of Title 21, United States Code, Section 843(b).
The charges arose from an investigation by the Tulsa County Sheriff’s Department, Tahlequah Police Department and the Drug Enforcement Administration.
The Information alleged that on or about April 1, 2015, within the Eastern District of Oklahoma, the defendant, BRITTANI M. ROSS, knowingly, intentionally, and unlawfully used a communication facility, that is: a telephone (cellular or otherwise) in committing, causing, and facilitating acts constituting a felony under Title 21, United States Code, Section 846, in that the Defendant used a telephone to discuss various matters concerning Drug Conspiracy.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the defendant’s guilty plea, and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion.
The statutory range of punishment is not more than 4 years imprisonment, a fine of up to $250,000.00 or both.
Assistant United States Attorney Shannon Henson represented the United States.
Three Face Federal Charges in Cumberland County for Cocaine Distribution ConspiracyRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that a federal grand jury in Raleigh returned a four count indictment (attached) charging three defendants with conspiring to distribute and possess with intent to distribute cocaine.
The following people were indicted and arrested in December 2015. They are detained by order of a federal judge.
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Genesis Lee Whitted, Jr., aka “Gen” and “Juice Man”, 26, of Fayetteville, NC
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Wayne Desmond Whitted, aka “Weezy”, 24, of Fayetteville, NC
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Joel Michael McLaurin, Jr., aka “Knowledge,” 29, of Fayetteville, NC
Genesis Lee Whitted, Jr. was also charged with Possession of a Firearm in Furtherance of a Drug Trafficking Crime and Brandishing a Firearm During and In Relation To a Drug Trafficking Crime.
If convicted, the maximum penalties for the charged drug count are twenty years’ imprisonment, a $1 million fine, and a term of supervised release of not less than 3 years following any term of imprisonment.
The maximum penalties for Possessing a Firearm in Furtherance of a Drug Trafficking Crime are no less than 5 years, up to life imprisonment, consecutive to any other sentence; a $250,000 fine; and up to 3 years supervised release following any term of imprisonment. The maximum penalties for Brandishing a Firearm in Furtherance of a Drug Trafficking Crime are no less than seven years, up to life imprisonment, consecutive to any other sentence; a $250,000 fine; and up to 3 years supervised release following any term of imprisonment. A second or subsequent conviction for a firearms charge of this type carries a mandatory minimum term of twenty five years imprisonment, consecutive to any other sentence.
The charges and allegations contained in the indictment are merely accusations. The defendants are considered innocent unless and until proven guilty in a court of law.
The case is being investigated by the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Fayetteville Police Department (FPD).
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News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release
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Statement of U.S. Attorney Preet Bharara Relating to Moreland Commission InvestigationRead the Press Release
“After a thorough investigation of interference with the operation of the Moreland Commission and its premature closing, this Office has concluded that, absent any additional proof that may develop, there is insufficient evidence to prove a federal crime. We continue to have active investigations related to substantive inquiries that were being conducted by the Moreland Commission at the time of its closure.”
South Carolina Man Sentenced for Mail FraudRead the Press Release
CINCINNATI – Christopher Outlaw, 46, of Moore, S.C., was sentenced in U.S. District Court to 30 months in prison and ordered to pay $1.9 million in restitution for mail fraud.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the sentence handed down today by U.S. District Judge Michael R. Barrett.
According to court documents, beginning in at least 2005 through August 2012, Outlaw embezzled more than $1.9 million from his former employer.
Outlaw was employed by FTZ Industries, Inc. FTZ is a manufacturer of electrical products for transportation, plant maintenance, marine and custom applications, located in Simpsonville, South Carolina. FTZ is a division of ILSCO Corporation, which is an electrical connector manufacturing company located in Cincinnati, Ohio.
The defendant embezzled money by impersonating a former vendor of his employer. Specifically, the defendant opened a bank account in false affiliation with Molex Incorporated, a company that provides electrical components to its customers, which previously included FTZ. Outlaw submitted to his employer fictitious invoices that appeared to be from Molex. In reality, however, FTZ had not received any products from Molex because the invoices that Outlaw submitted were fake. Through the fictitious invoices, Outlaw would direct his employer to send payments to Molex to a mailbox that he had opened in Georgia in Molex’s name.
U.S. Attorney Stewart commended the cooperative investigation by the FBI, as well as Cincinnati Branch Chief Emily N. Glatfelter, who represented the United States in this case.
Sex Trafficking Law Enforcement Task Force Highlighted During National Slavery and Human Trafficking Prevention MonthRead the Press Release
PROVIDENCE, R.I. – January is National Slavery and Human Trafficking Prevention Month. In Rhode Island, the Sex Trafficking Law Enforcement Task Force, comprised of local and state law enforcement, agents from Homeland Security Investigations and the FBI, and prosecutors from the Rhode Island Attorney General’s Office and the United States Attorney’s Office, continue to be laser-focused working together as “one voice” on “one mission” to investigate, arrest and prosecute sex traffickers and sex buyers, and to rescue as many victims as possible who have become ensnarled in webs weaved by sex traffickers.
Human trafficking is the world's fastest growing criminal enterprise, valued to be an estimated $32 billion-a-year global industry. After drug trafficking, human trafficking is the world's second most profitable criminal enterprise, a status it shares with illegal arms trafficking. Sex trafficking can and does take place in every community, no matter the cultural make up, the affluence, or the location of a community. No community is immune from being affected by the exploitation of human beings for commercial sexual activity.
Nationally, for the 5th year, the U.S. Department of Homeland Security’s Blue Campaign is raising public awareness about human trafficking, and, among other things, the commitment of law enforcement on every level to, as the campaign stresses, to work as “One Voice. One Mission. End Human Trafficking.”
The Blue Campaign also offers training to law enforcement and others to increase detection and investigation of human trafficking, and to protect victims and bring suspected traffickers to justice.
Over the past two years in Rhode Island, at least 30 individuals have been charged with sex trafficking crimes by prosecutors from the United States Attorney’s Office and the Attorney General’s Office. Most sex trafficking cases are jointly reviewed by prosecutors from both offices to determine appropriate charges, appropriate jurisdiction and in which court appropriate penalties are likely to be realized. Several prosecutors from each office have been cross-designated, allowing them to work side-by-side to prosecute sex trafficking cases either in state or federal court.
For example, in 2014, local, state and federal law enforcement from two states worked collaboratively to successfully locate and rescue a 17-year-old Boston area woman who was enticed to leave her residence and who was brought to a Rhode Island motel by a Missouri man, for the purposes of being offered for commercial sexual activity. The Missouri man is now serving a 14-year sentence in federal prison.
In June 2015, a Superior Court jury found a Boston man guilty of two counts of sex trafficking a minor for forcing a 14-year-girl to dance and solicit men for sex at a Providence strip club, as well as posting an ad for her as an escort on adult websites. Working in concert with one another, law enforcement from Rhode Island and Massachusetts found a second girl in a motel in Seekonk. Law enforcement was able to successfully rescue both teenagers and arrest the defendant, who had been previously been convicted of sexual assault and interstate transportation of a minor for prostitution. The defendant, who is awaiting sentencing, is facing a maximum of 91 years in state prison.
In addition, members of the Sex Trafficking Law Enforcement Task Force have worked closely with Day One in Providence, the Aubin Center at Hasbro Children’s Hospital, DCYF, the Rhode Island Public Defender’s Office and the Rhode Island Police Chiefs’ Association to develop a uniform response protocol intended to serve as a guide and resource to assist in detecting and investigating the commercial sexual exploitation of children, successfully prosecuting those who engage in this conduct, and addressing the recovery needs of the victims of this crime.
“Make no mistake about it: the depraved individuals who enslave others for the commercial sex industry are more than mere criminals. They are kidnappers, torturers and rapists. To effectively end sex trafficking, it requires cooperation among local, state, national law enforcement agencies,” said Attorney General Peter F. Kilmartin. “The partnership by law enforcement through the Rhode Island Sex Trafficking Task Force has shown that by working together, we can successfully combat this new form of slavery and put the traffickers out of business.”
United States Attorney Peter F. Neronha commented, “Commercial sex traffickers trade in, and make money on, the vulnerability of their teenage and young adult victims. Few, if any, crimes are more outrageous or harmful to their victims, and those who engage in this conduct deserve the full attention of our joint law enforcement efforts. Those on the other side of these criminal transactions – the sex buyers – should also take notice, for they are an equal part of the problem, and they too will have a price to pay as we move forward with these cases.”
“U. S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) is committed to combating human trafficking in Rhode Island and beyond through close coordination with our federal, state and local partners,” said Special Agent in Charge Matthew Etre, of HSI Boston. “It is through information sharing mechanisms, such as the RI Sex Trafficking Law Enforcement Task Force, that we are able to combine our strengths, exchange best practices and provide a whole of government response to fighting these heinous crimes and getting the victims the support and resources that they need to recover.”
Commenting on behalf of local and state law enforcement across the state, Lincoln Police Chief Brian W. Sullivan, President of the Rhode Island Police Chiefs’ Association said, “In Rhode Island, when investigating Human Trafficking crimes, the emphasis that has been placed on creating a multi-agency, collaborative investigation has been critical in the removal of barriers. This partnership demonstrates the commitment of federal, state, and local law enforcement agencies to combating this crime.”
“Human trafficking has become a profitable business for criminals of all kinds to fund and advance their enterprises. Equally disturbing, victims of this trafficking are often beaten, starved, and forced to work in the sex industry or as domestic servants with little to no pay. People believe this could never happen here in Rhode Island—but it does,” said Harold H. Shaw, Special Agent in Charge of the FBI’s Boston Division. “As part of this task force, the FBI will continue to dedicate resources to disrupt these trafficking networks, all in an effort to help victims of these heinous crimes, and stem this egregious criminal activity.”
Click here to view the “Out of the Shadows” public service announcement designed to enhance awareness of human trafficking and encourage the public to educate themselves about how to recognize and report human trafficking.
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Seven sentenced in Maryland to West Virginia heroin trafficking networkRead the Press Release
MARTINSBURG, WEST VIRGINIA – Seven individuals were sentenced in federal court today for heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
The defendants sentenced today participated in a drug trafficking network in which a large group of individuals repeatedly traveled across state lines to the Baltimore area to procure heroin. The individuals then returned to various locations in Maryland, West Virginia, Virginia, and Pennsylvania to redistribute and sell the drug. The operation was interrupted in June 2015 by a 163-count federal indictment targeting 41 defendants.
Megan Saylor, 32, Cortney Blaire Saylor, 30, both of Martinsburg, and Cassandra Elaine Riggs, 26, of Falling Waters, West Virginia, each pled guilty to one count of “Use of Telephone to Facilitate the Distribution of Heroin,” and one count of “Aiding and Abetting Interstate Travel in Aid of Racketeering.” Cortney Saylor was sentenced today to 60 months in prison on the racketeering charge and 48 months in prison on the distribution charge. The sentences will run partially concurrently for a total of 77 months in prison. Megan Saylor was sentenced today to 10 months in prison on each count. The sentences will run concurrently for a total of 10 months in prison. Cassandra Riggs was sentenced today to probation for a term of five years on each count. The sentences will run concurrently for a total of five years of probation.
Scott Andrew Ours, 33, and James Miner Jenkins, 37, both of Martinsburg, each pled guilty in September 2015 to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin.” Ours was sentenced today to 32 months in prison. Jenkins was sentenced today to 24 months in prison.
Lindsay Bohrer, 37, of Berkeley Springs, West Virginia, pled guilty in September 2015 to one count of “Use of Telephone to Facilitate the Distribution of Heroin,” and one count of “Interstate Travel in Aid of Racketeering.” He was sentenced today to 21 months in prison on each count. The sentences will run concurrently for a total of 21 months in prison.
Veronica Gladden, 32, of Martinsburg, pled guilty in September 2015 to one count of “Aiding and Abetting Interstate Travel in Aid of Racketeering.” She was sentenced today to five years of probation.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted the cases on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Federal Bureau of Investigation led the inquiry.
Chief U.S. District Judge Gina M. Groh presided.