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Thursday 7 January 2016
Hawaii Businessman Sentenced to 46 Months in Prison for Tax FraudRead the Press Release
Diverted More than $2 Million from Company to Fund Lavish Lifestyle
A Honolulu County businessman was sentenced to prison yesterday for corruptly endeavoring to obstruct the Internal Revenue Service (IRS) and filing false tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Florence T. Nakakuni of the District of Hawaii.
Albert S.N. Hee, 61, of Kailua, Hawaii, was sentenced by Senior U.S. District Judge Susan Oki Mollway of the District of Hawaii to serve 46 months in prison, to be followed by one year of supervised release. Hee was also ordered to pay a fine of $10,000 and restitution to the IRS in the amount of $431,793. In July following an 11-day jury trial, Hee was convicted of one count of corruptly endeavoring to obstruct the IRS and six counts of filing false individual income tax returns for the years 2007 to 2012.
According to court documents and the evidence introduced at trial, Hee owned Waimana Enterprises Inc., a telecommunications holding company based in Honolulu. Between 2002 and 2012, Hee caused Waimana to pay more than $2 million of his personal expenses. Hee then falsely characterized these personal expenditures as business expenses on Waimana’s corporate income tax returns. Hee also filed false individual income tax returns for 2002 to 2012 on which he failed to report the expenditures as income. Hee’s lavish spending included more than $90,000 for personal massages, which he deducted on the corporate tax returns as “consulting fees,” full-time salaries and benefits for his wife and children even though they performed little to no work for the company and more than $736,900 in college tuition, housing and other expenses for his children.
In 2008, Hee purchased a $1.3 million home in Santa Clara, California, with corporate money and told his accountants that the property would be used by Waimana employees. Instead, from 2008 through 2012, Hee’s children lived in the home during and after they attended college in Santa Clara. At trial, Hee’s children testified that they indeed lived at the home and did not pay any rent to Waimana for their use of the property. Hee’s children also testified that the house was within walking and skateboarding distance of the college campus and that they rented out other rooms in the house to their college friends and collected rent from their roommates, which they kept rather than remit to Waimana.
Waimana financed Hee’s and his family’s trips to Disney World, Tahiti, France and Switzerland. Hee also used company funds to pay for a $17,000, five-day family vacation at the Mauna Lani resort on the Big Island of Hawaii, which Hee falsely characterized as a “stockholder’s meeting” even though he was the only shareholder of the company at that time.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Nakakuni commended the special agents of IRS-Criminal Investigation, who investigated the case, Assistant U.S. Attorney Larry Tong and Trial Attorney Quinn P. Harrington of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Hartford Man Sentenced to 4 Years in Federal Prison for Illegally Possessing FirearmsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JASON WATSON, 28, of Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 48 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms. WATSON also was ordered to perform 100 hours of community service while on supervised release.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of WestHell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” as the leader of the West Hell street gang who, along with WATSON and other associates distributed crack cocaine in the Westland Street area of Hartford.
On April 24, 2014, a grand jury in Hartford returned a 52-count indictment charging 25 members and associates of the WestHell Street Gang, including Scott and WATSON, with narcotics distribution offenses. On April 30, 2014, law enforcement executed federal arrest warrants of the charged defendants and WATSON was arrested at his Hartford residence. On that date, a search of WATSON’s residence revealed a .22 caliber pistol, a .44 caliber revolver, a 9 millimeter pistol and assorted ammunition. Two of the three firearms were manufactured outside of Connecticut.
Prior to April 30, 2014, WATSON had been convicted of multiple felony offenses, and he was on state special parole at the time of his federal arrest. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
WATSON has been detained since his arrest. On April 21, 2015, he pleaded guilty to one count of possession of firearms by a previously convicted felon.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants. The Office of the Chief State’s Attorney is also assisting with this ongoing investigation.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Hartford Man Found with More Than a Kilo of Heroin Pleads GuiltyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that YOANNI SUAREZ, also known as “Cuba,” 39, of Hartford, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of possession with intent to distribute 100 grams or more of heroin.
According to court documents and statements made in court, SUAREZ was arrested on September 18, 2015, after investigators with the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force found him in possession of approximately 1,250 grams of heroin, which was hidden both in his truck and in a residence he utilized.
Judge Shea scheduled sentencing for April 5, 2016, at which time SUAREZ faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
SUAREZ has been detained since his arrest.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Michael J. Gustafson and Gabriel J. Vidoni.
Hammond Resident Pleads Guilty to Conspiracy to Traffic CocaineRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KELVIN PROVOST, age 38, of Hammond, pled guilty today to conspiracy to distribute and to possess with the intent to distribute 500 grams or more of a mixture or substance containing cocaine hydrochloride (“powder cocaine”) and 28 grams or more of a mixture or substance containing cocaine base (“crack cocaine”).
According to court records, in September 2014, PROVOST made two separate sales of crack cocaine to an undercover government source. Then, in November 2014, PROVOST and two other named defendants were traveling along Interstate 12 from Houston, TX, to Hammond, when law enforcement performed a traffic stop on their car. During the stop, officers recovered from PROVOST and his associates approximately 330 grams of powder cocaine, which PROVOST had just purchased from sources in Houston. PROVOST admitted during the traffic stop that he had previously made two other trips to Houston for purposes of obtaining similar quantities of powder cocaine.
PROVOST is facing a mandatory minimum sentence of five years in prison, a maximum sentence of forty years in prison, and a possible fine up to $5,000,000. U.S. District Judge Mary Ann Vial Lemmon will sentence PROVOST on April 14, 2016.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, Louisiana State Police, and Iowa Louisiana Police Department in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Gregory Man Gets 60 Years for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 34-year-old resident of Gregory has been ordered to serve a 60-year federal prison term following his two convictions of production of child pornography, announced U.S. Attorney Kenneth Magidson. Daniel H. Aleman II was convicted Oct. 13, 2015, following a one-day bench trial before Senior U.S. District Judge Hayden Head.
Today, Judge Head ordered Aleman to serve 30 years on each count of conviction to be served consecutively for a total of 60 years in federal prison. He will then be on supervised release for the rest of his life. He will also be ordered to register as a sex offender.
Additional information was also presented today, including testimony from a federal agent with Homeland Security Investigations (HSI). The agent described the videos Aleman recorded while female customers were changing clothes in the dressing rooms at the Goodwill Store where Aleman worked. One video depicted a woman dressing a female child that the agent estimated was approximately four-years-old. The agent also described the videos of child pornography Aleman possessed, many of which depicted prepubescent females engaging in sexually explicit conduct with adult males. The court also took into consideration a victim letter read in court by the mother of two girls Aleman sexual assaulted. In the letter, the mother described the impact the sexual abuse has had on the children.
In handing down the sentence, Judge Head noted that this kind of behavior cannot be tolerated. “Mr. Aleman, you should never walk the streets again,” he said.
At the time of the bench trial, the court heard that in December 2014, officers with the Portland Police Department were dispatched to a local Goodwill Store in reference to an employee video recording female customers while they were changing clothes in the dressing rooms. A customer reported that a store employee, later identified as Aleman, taped a small video recorder to the corner of a shopping cart. Aleman then positioned the shopping cart under the bottom gap of the dressing room door.
In January 2015, law enforcement executed a search warrant at Aleman’s residence and seized various electronic devices. A forensic analysis on those devices revealed more than 50 videos of child pornography, more than 20 videos of women in dressing rooms, a video of Aleman sexual assaulting an unconscious adult female and 12 videos of Aleman sexual assaulting two children. The children were identified and confirmed the abuse.
At trial, Aleman did not deny the allegations, only argued that the search was not valid. The court found him guilty as charged.
Aleman was arrested on federal charges in April 2015 and has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future
The charges are the result of an investigation by Homeland Security Investigations, Portland Police Department and the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Great Falls Roofer Sentenced to Seven Years in PrisonRead the Press Release
GREAT FALLS – The United States Attorney’s Office today announced that James Antonio Amato, 50, a Great Falls roofer, was sentenced to 88 months in federal prison followed by 4 years of supervised release by U.S. District Judge Brian Morris. Amato entered a guilty plea in September of 2015 to possession with intent to distribute methamphetamine. Amato faced a maximum sentence of 40 years in prison.
Assistant United States Attorney Jessica Betley told the court that in February 2015 the Russell Country Drug Task Force began to purchase methamphetamine from a local woman. Law enforcement later learned that James Amato had provided the woman with methamphetamine for redistribution in the Great Falls area. Over the next few months, the task force completed numerous undercover purchases of methamphetamine and determined that on each occasion Amato was the woman’s source for methamphetamine. On several occasions, while the woman was under surveillance, law enforcement observed her meet the defendant and obtain methamphetamine which the agents had arranged to purchase. Investigators also determined that Amato traveled to Helena, to meet his source, when he needed to replenish his supply of the drug.
On April 11, 2015, law enforcement stopped the defendant as he traveled back to Great Falls from Helena. Amato was searched and officers removed one-fourth of a pound of methamphetamine from his pants. The defendant told law enforcement that he frequently picked up methamphetamine in Helena in order to transport it back to Great Falls. Officers also found seven checks in the defendant’s truck made out from the defendant to the defendant’s supplier of methamphetamine in Helena for a total of $10,562.96.
Parole does not exist in the federal system so Amato will serve all of the 7 year sentence, except for a small reduction if he maintains good behavior while incarcerated. The investigation was conducted by the Russell Country Drug Task Force.
Glenham Man Sentenced for Conspiracy to Distribute and Possess with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Glenham, South Dakota, man convicted of Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine was sentenced on January 4, 2016, by U.S. District Judge Charles B. Kornmann.
Aaron Sackreiter, age 35, was sentenced to 108 months in custody, followed by 10 years of supervised release, a $10,000 fine, and $100 to the Federal Crime Victims Fund. He must also forfeit a Taurus Judge .41 caliber pistol, and $4,514.13 in currency that was seized.
Sackreiter was indicted for Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance and Possess with Intent to Distribute a Controlled Substance by a federal grand jury on September 16, 2014. He pled guilty to Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance on October 27, 2015. The drug quantity attributed to Sackreiter as a part of his role in the narcotics trafficking conspiracy was at least 50 grams, but less than 200 grams, of methamphetamine.
Sackreiter conspired with individuals from California to have methamphetamine brought into South Dakota for re-distribution. Sackreiter distributed some of the methamphetamine himself and recruited others to distribute for him on both the Cheyenne River and Standing Rock Sioux Reservations.
On June 29, 2014, local law enforcement went to Sackreiter’s residence to serve an arrest warrant on him. Sackreiter, Luis Salazar, and Spring Gullickson were present at the residence when law enforcement arrived. During the arrest process, law enforcement could smell a distinct odor of marijuana coming from inside the residence. While they were searching Sackreiter’s person after placing him under arrest, they found $533.13 in cash. Search warrants were then obtained for the residence. A quantity of methamphetamine the size of a billiard ball was seized during execution of the search warrant. The “ball” weighed 65 grams (2.3 ounces). Also found during the search was $3,981.00 in cash, a loaded Taurus Judge pistol, and other drug-related evidence.
Previously, on June 13, 2014, Sackreiter and Salazar had at least eight ounces of methamphetamine in their possession. Sackreiter recruited Gullickson to assist him in distributing the methamphetamine. Sackreiter also provided methamphetamine to Stanley Schily multiple times so that Schily could re-distribute the methamphetamine to others. Schily purchased approximately four "8-balls" (3.5 grams) and other quantities of methamphetamine from Sackreiter a total of five or six times. A separate search of Schily’s residence on July 1, 2014, resulted in the seizure of additional quantities of methamphetamine.
This case was investigated by the Mobridge Police Department and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller prosecuted the case.
Sackreiter was immediately turned over to the custody of the U.S. Marshals Service.
Gainesville Man Sentenced to 25 Years for Human TraffickingRead the Press Release
GAINESVILLE, FLORIDA – Mikel Alemin Craig, 33, of Gainesville, Florida, was sentenced today to 25 years in federal prison for sex trafficking of an adult by force and coercion. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
During Craig’s guilty plea on August 19, 2015, the government presented evidence that, between January 1, 2014, and March 30, 2014, Craig was involved in a scheme to make money by using an adult female to perform sex acts. The defendant caused a picture of the victim, posing in a motel room, to be posted on Backpage.com, an Internet advertising website. The advertisement was listed in a section for “escort services,” when, in truth, the advertisement was for the purpose of offering the victim for commercial sexual activity. As a result, the victim engaged in sexual activity for money on numerous occasions with persons who responded to the advertisement. This sexual activity took place at various locations in the Northern District of Florida, including local hotels in Gainesville, Florida. Craig used physical and nonphysical means to coerce the victim to engage in this sexual activity, including violence and the threat of physical violence against her. He also collected proceeds from the victim’s commercial sexual activity.
The prosecution was brought as part of the Department of Justice’s Project Safe Childhood Program. The case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement and was prosecuted by Assistant United States Attorney Frank Williams.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Four Convicted in Large-Scale Drug and Money Laundering ConspiracyRead the Press Release
CORPUS CHRISTI, Texas - One man and three women, all of South Texas, have entered guilty pleas to charges of conspiracy to possess with the intent to distribute cocaine and conspiracy to commit money laundering, announced U.S. Attorney Kenneth Magidson.
Efren Cisneros-Reyes, 36, Mayra Alejandra Cervantes, 27, and Norma Argelia Ramirez, 42, all of McAllen; and Gabriela Martinez, 34, of Mission, all pleaded guilty to conspiracy to possess with the intent to distribute more than five kilograms of cocaine. Cisneros-Reyes, Cervantes and Ramirez also pleaded guilty to conspiracy to launder monetary instruments, while Cisneros-Reyes was also convicted of being a felon in possession of a firearm.
At the time of his plea, Cisneros-Reyes agreed to the forfeiture of two firearms - a Cobra FS380, .380 caliber pistol and a Maverick Arms, Model 88, 12-gauge shotgun. Ramirez agreed to the forfeiture of a Wells Fargo bank account in her name.
The investigation identified the four defendants as leaders within this criminal organization. Law enforcement determined that the organization utilized many different methods of transportation to include, but not limited to, concealing cocaine in false compartments located inside passenger vehicles and tractor/trailers. Further, the investigation has revealed a total of 19 funnel bank accounts directly linked to members of the organization. These funnel bank accounts have been used to funnel illicit bulk currency from throughout the country to the Rio Grande Valley.
It is estimated that at least 100 kilograms of cocaine were trafficked during the course of the conspiracy and more than $1 million in currency was transported to South Texas.
Based upon the amount of the alleged cocaine involved, all of the defendants face no less than 10 years and a maximum of life in federal prison. Those convicted of the money laundering conspiracy also face up to 20 years imprisonment. Cisneros-Reyes could receive up to another 10 years for the firearms conviction. Sentencing has been set for April 21, 2016.
The case is the result of an Organized Crime Drug Enforcement Task Force Operation dubbed “Operation Green-Eyed Tiger” conducted by the Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Border Patrol, Homeland Security Investigations, police departments in Mission and McAllen as well as the U.S. Marshals Service. Assistant United States Attorney Julie K. Hampton is prosecuting the case.
Former UCSD Professor Admits Fraud, Agrees to Forfeit $180,000Read the Press Release
Assistant U.S. Attorneys Rebecca S. Kanter (619-546-7304) and Christopher M. Alexander (619-546-6665)
NEWS RELEASE SUMMARY – January 7, 2016
SAN DIEGO - Dr. Homayoun Karimabadi, a former research professor at the University of California, San Diego (“UCSD”) and the Chief Executive Officer for SciberQuest, Inc., was charged in federal court today with fraudulently obtaining millions of dollars in government grants and contracts.
Dr. Karimabadi and SciberQuest, Inc., the corporation run by Dr. Karimabadi, both waived indictment and were arraigned on an information charging them with felony wire fraud and criminal forfeiture. SciberQuest entered a guilty plea before U.S. Magistrate Judge Karen S. Crawford; Dr. Karimabadi is scheduled to enter into a deferred prosecution agreement on January 15, 2016 at 8:30 a.m. before Judge Gonzalo P. Curiel. Additionally, Dr. Karimabadi and SciberQuest jointly agreed to forfeit $180,000 as money that was improperly received as a result of the fraud, in addition to a fine that will be imposed on the corporation at sentencing.
According to court records, during the fraud Dr. Karimabadi was the Chief Executive Officer and Chief Technology Officer at SciberQuest and at the same time was employed as a research professor at UCSD where, among other things, he served as the group leader of the space physics plasma simulation group.
According to the corporation’s plea agreement, from January 2005 to June 2013, Dr. Karimabadi, who has a Ph.D. in Plasma Astrophysics, applied for and received grants or contracts from the National Science Foundation (“NSF”), United States Air Force (“USAF”) and National Aeronautics and Space Administration (“NASA”) both through SciberQuest and UCSD. SciberQuest was awarded around $6.4 million under 22 separate grants or contracts. Of those, eight were Small Business Innovation Research (“SBIR”) grants with a value of about $1,760,000. The SBIR Program was enacted by Congress to strengthen the role of innovative small business concerns in federal-funded research and development in order to stimulate technological innovation, foster and encourage participation by socially and economically disadvantaged small business concerns, and increase private sector commercialization of innovations derived from federal research and development, thereby increasing competition, productivity and economic growth.
To obtain the SciberQuest grants or contracts, Dr. Karimabadi made false statements to government officials. Specifically, in award proposals, Dr. Karimabadi failed to disclose all of his and SciberQuest’s current and pending grants or contracts, thereby overstating the time he and SciberQuest could devote to the projects he was applying to receive. In one example, Dr. Karimabadi only disclosed to NSF four current and eleven pending grants, and knowingly failed to disclose an additional ten current and five pending grants. In all, Dr. Karimabadi disclosed to NSF only about three months per year of work that he was committed to, when in fact, he had already committed to various agencies over nineteen months per year of work.
Dr. Karimabadi also falsely certified in SBIR award proposals submitted to NASA and USAF that he was primarily employed by SciberQuest. In truth, he was employed full-time at UCSD both at the time of the award submission and during the performance of the grant. Dr. Karimabadi and SciberQuest made these false statements to be awarded grants or contracts that they likely would not have received but for the deception. As a result, from 2005 to 2013, Dr. Karimabadi received over $1.9 million in salary from SciberQuest due, in part, to the fraudulently obtained grants or contracts.
“Dr. Karimabadi took advantage of his trusted positions at SciberQuest and UCSD to deceive government agencies into awarding federal grants or contracts,” said U.S. Attorney Laura E. Duffy. “Federal research funding is an important stimulus to local economies, especially in San Diego, which has a large research university presence. Fraud in the award process threatens to undermine confidence in the continued federal funding of research and innovation. With the continued diligence of our agency partners, we will continue to deter the dishonest practices used in this case by prosecuting those responsible and taking away any ill-gotten gains.”
Chris Hendrickson, Special Agent in Charge of the Defense Criminal Investigative Service Western Field Office, said “As this matter demonstrates, we are committed to investigate not only those who make false claims in supplying goods and services for the national defense, but also those who misrepresent research and submit deceitful intellectual representations. Any such abuses of the public trust for personal gain simply will not be tolerated.”
Allison Lerner, NSF Inspector General said, “Dr. Karimabadi violated the public trust to enrich himself when he fraudulently represented his work on NSF awards. My office will continue to vigorously pursue those who attempt to illegally obtain scarce federal dollars intended for scientific research, and I commend the U.S. Attorney’s office for its sustained efforts in reaching this settlement agreement.”
“Individuals who fraudulently obtain federal research funds earmarked for small businesses deprive others of an opportunity to pursue meaningful technological discoveries,” said Paul Martin, NASA Inspector General. I commend the outstanding efforts of our agents and the other law enforcement agencies that are committed to ensuring the integrity of this program and prosecuting to the fullest extent of the law those who abuse research programs for the sake of personal enrichment.”SciberQuest will be sentenced on March 18, 2016 at 8:30 a.m. before U.S. District Judge Gonzalo P. Curiel. Dr. Karmabadi was placed on bond and ordered to return to court on January 15, 2016, for further proceedings to enter a Deferred Prosecution Agreement for his role in the matter.
A deferred prosecution agreement is an agreement between a criminal defendant and the United States Attorney’s Office wherein the defendant admits to the facts constituting a criminal offense, but the United States agrees to suspend the entry of judgment for a period of time and agrees to dismiss the charges if, during that period, the defendant complies with certain conditions set forth in the agreement.
The investigation was conducted by the Department of Defense, NSF, and NASA. The case is being prosecuted by Assistant U.S. Attorneys Rebecca S. Kanter and Christopher M. Alexander of the Southern District of California.
Those with information relating to fraud, corruption, or waste in government contracting should contact the DOD Hotline at www.dodig.mil/hotline or call (800) 424-9098.
DEFENDANTS
SciberQuest, Inc. Del Mar, California
Homayoun Karimabadi Age: 56 Del Mar, California
Criminal Case No. 16CR026-GPC
SUMMARY OF CHARGE
Wire fraud, a felony, in violation of Title 18, United States Code, Section 1343.
SciberQuest’s Maximum Penalty: 5 years of probation, and a minimum of 1 year of probation; a fine of $500,000, or twice the gross gain or loss derived from the offense; a mandatory special assessment of $400 per count; an order of restitution; and an order of forfeiture.
Karimabadi’s Maximum Penalty: 20 years in custody; a fine of $250,000, or twice the gross gain or loss derived from the offense; a mandatory special assessment of $100 per count; an order of restitution; and an order of forfeiture.
INVESTIGATING AGENCIES
Department of Defense, Office of Inspector General
National Science Foundation, Office of Inspector General
National Aeronautics and Space Administration, Office of Inspector General
Former Savings and Loan Employee Pleads Guilty to Embezzling MoneyRead the Press Release
CINCINNATI – Rebecca D. Bingham, 39, of Cincinnati pleaded guilty in U.S. District Court to theft from a savings and loan corporation.
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 plea entered into today before U.S. District Judge Michael R. Barrett.
According to court documents, Bingham was employed at Cincinnatus Savings and Loan from 2004 until September 2014. During that time, Bingham embezzled approximately $215,000 from the financial institution.
She took advantage of her autonomy as Assistant Vice President and Senior Accountant to conceal stealing from the institution’s main operational account. She deposited at least 63 checks into her personal account. Bingham then used the funds for her own personal expenses, to pay off a vehicle in her name and to assist an unemployed family member.
Theft from a savings and loan corporation carries a maximum sentence of up to 30 years in prison and a fine of up to $1 million.
U.S. Attorney Stewart commended the cooperative investigation by the FBI, as well as Assistant United States Attorney Anthony Springer, who is representing the United States in this case.
Former Nurse Pleads Guilty to Stealing Narcotics from HospitalRead the Press Release
BOSTON – A former nurse at Franklin Baystate Medical Center in Greenfield, Mass. pleaded guilty today in U.S. District Court in Springfield to stealing pain medication from the hospital’s automated drug dispensing machine.
Daniel Herlocker, 41, of Brattleboro, Vt., pleaded guilty to an Information charging him with acquiring and obtaining controlled substances by deception and subterfuge.
In fall 2014, while Herlocker was employed as a nurse at Franklin County Medical Center, he diverted Dilaudid, also known as hydromorphone, as well as morphine from sterile cartridge units known as carpujects. The carpujects were stored in an automated drug dispensing machine. Herlocker syphoned the drugs from the carpujects with sterile needles and replaced the medications with sterile saline solution.
The charging statute provides a sentence of no greater than four years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Spencer Morrison, Acting Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Monica Bharel, MD, MPH, Commissioner of the Massachusetts Department of Public Health, Division of Food and Drugs, Drug Control Program, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Branch Office.
Former Norwalk Resident Sentenced to 70 Months in Prison for Traffcking HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that OMAR ANDRADE, 29, a citizen of Mexico last residing in Norwalk, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 70 months of imprisonment, followed by four years of supervised release, for trafficking heroin.
According to court documents and statements made in court, this matter stems from an investigation by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Norwalk Police Department into suspected cocaine and heroin distribution by ANDRADE. In September 2014, ANDRADE agreed to provide one kilogram of heroin to a DEA Task Force officer acting in an undercover capacity. ANDRADE, Joel A. Estrella-Disla and Wilmer Antonio Gomez-Rodriguez were arrested on September 30, 2014, after they delivered approximately one kilogram of heroin to a pre-arranged location in Norwalk.
ANDRADE has been detained since his arrest. On August 24, 2015, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
ANDRADE faces immigration proceedings after he serves his prison term.
On August 24, 2015, Estrella-Disla pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin. On September 10, 2015, a jury found Gomez-Rodriguez guilty of one count of conspiracy to possess with intent to distribute, and to distribute, one kilogram or more of heroin, and one count of possession with intent to distribute, and distribution of, 100 grams or more of heroin. Both await sentencing.
This case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Former Manager of IBEW Credit Union in Paducah Sentenced to 78 Months in Prison for Embezzling More Than $600,000Read the Press Release
Stolen money used to benefit herself and her friends and family
PADUCAH, Ky. – Debra C. Pyfrom, the former manager of the International Brotherhood of Electrical Workers (IBEW) Local 816 Federal Credit Union, was sentenced yesterday in U.S. District Court by Senior Judge Thomas B. Russell to serve 78 months in prison and pay restitution in the amount of $600,520.16 for committing bank fraud, announced U.S. Attorney John E. Kuhn, Jr.
Pyfrom pled guilty in September of last year to executing a scheme for an unknown period of time, up until she was terminated by IBEW and arrested in July 2014. During that time, Pyfrom admitted to embezzling and stealing money from IBEW and its members for an approximate total loss exceeding $600,000. Pyfrom admitted to using the money for her personal benefit and for the benefit of her daughter, her boyfriend, friends, and family. She did this by manipulating credit union accounts, posting false loan payments, misappropriating cash, and taking out loans in members’ names without their knowledge.
Pyfrom also admitted to stealing money from IBEW credit union members’ accounts to cover her personal bills and those of her daughter, boyfriend and others, who had personal deposit accounts at the credit union. Pyfrom would cover these withdrawals with false, computer entry only deposits.
Further, Pyfrom admitted to issuing loans to herself and to her daughter and then posting false payments on those loans in order to conceal the fraud and make the loans appear current on IBEW’s books.
Lastly, Pyfrom admitted to taking out loans in the names of other IBEW account holders without their knowledge and using that loan money for her own benefit. Again, the balances on these loans were never repaid; rather, Pyfrom would manipulate the entries in the IBEW books in order to falsely show that the loan payments were current.
Due to its insolvency as a result of Pyfrom’s fraud, IBEW was forced into liquidation by the National Credit Union Administration.
This case was prosecuted by Assistant United States Attorney Nute A. Bonner and was investigated by the McCracken County Sheriff’s Office and the Federal Bureau of Investigation.
Former Greene County Sheriff's Deputy Charged with Child PornRead the Press Release
jones_complaint.pdf (2.25 MB)SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Greene County, Mo., Sheriff’s Deputy has been charged in federal court with possessing child pornography.
Juan Jones, 27, of Springfield, Mo., was charged in a federal criminal complaint filed in the U.S. District Court in Springfield, Mo., on Wednesday, Jan. 6, 2015. Jones remains in federal custody pending a detention hearing on Monday, Jan. 11, 2016.
The federal criminal complaint alleges that Jones was in possession of child pornography between Aug. 21, 2015, and Jan. 6, 2016.
According to an affidavit filed in support of the criminal complaint, law enforcement received a Cyber Tip that had originally been filed with the National Center for Missing and Exploited Children by Dropbox, Inc. Dropbox is a file hosting service and online backup facility that offers cloud storage, file synchronization and client software.
Dropbox had discovered many video and image files that they believed contained child pornography. Investigators determined that Jones was connected to the account responsible for uploading those files to Dropbox. A search warrant was executed for the Dropbox account, which contained 168 video files and approximately 1,500 image files depicting child pornography. Some of the files depict children as young as infants being sexually abused by adult males.
A search warrant was executed on Wednesday, Jan. 6, 2016, at Jones’s residence. While the warrant was being executed, law enforcement officers contacted Jones at his place of employment, the Greene County, Mo., Sheriff’s Department, and he was placed under arrest.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. The case was investigated solely by the Southwest Missouri Cyber Crimes Task Force and the FBI.
Project Safe Childhood
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."
Former Executive of Nuclear Power Company SentencedRead the Press Release
BOISE - Jennifer R. Ransom, 41, of Meridian, Idaho, was sentenced today in United States District Court to 30 months in prison followed by three years of supervised release—the first six months of which is home confinement--for the crime of securities fraud, U.S. Attorney Wendy J. Olson announced. Senior United States District Judge Edward J. Lodge also ordered Ransom to forfeit $580,780 and pay $116,138 in restitution to victim-investors. Ransom pleaded guilty to one count of securities fraud on April 21, 2015.
According to the plea agreement, Ransom was the Senior Vice President of Administration of Alternate Energy Holdings, Inc. (“AEHI”). AEHI was a development stage company headquartered in Eagle, Idaho, that planned to construct and operate a nuclear power plant in Payette County, Idaho.
According to the plea agreement, Ransom joined AEHI in late 2007. Prior to joining AEHI, Ransom took and passed the Series 63 examination, one of the tests required to become a licensed Securities Agent, and knew it was wrongful and unlawful to engage in conduct that was designed to defraud or deceive investors by artificially controlling or fraudulently affecting the price of securities. Notwithstanding, she agreed with her co-defendant, Donald L. Gillispie, the former President and CEO of AEHI, and other “nominees” to a scheme to defraud or deceive AEHI investors.
According to the plea agreement, the scheme involved Gillispie and Ransom recruiting nominees to make purchases of AEHI stock on the market for the express purpose of artificially inflating the market price of AEHI stock. Ransom personally helped recruit one of the nominees. Without investors’ knowledge, Gillispie and Ransom provided AEHI funds, obtained almost exclusively from investors, to two of the nominees to fund their market purchases of AEHI stock.
According to the plea agreement, investors who purchased AEHI stock directly from AEHI, through Private Placement Memoranda (PPM), were offered a price discounted from the market price that nominees were attempting to inflate. However, PPM investors could only purchase restricted AEHI stock, which they could not sell for six months to one year. On September 9, 2009 through September 11, 2009, Ransom assisted a nominee in making purchases of AEHI stock on the market. The purpose of these purchases was to artificially increase the market price of AEHI stock, which was trading above the PPM price. During the next two months, private investors bought approximately $516,885 worth of AEHI restricted stock at the lower PPM price.
According to the plea agreement, Ransom received shares of AEHI stock as executive compensation. From June of 2010 through September of 2010, a period during which attempts were being made to artificially inflate the market price of AEHI stock, Ransom sold approximately 1,000,000 of her shares and received approximately $675,326 in return, of which approximately $580,780 was the proceeds of securities fraud.
“This sentence sends the clear message that those who take actions to intentionally mislead stock purchasers for their own personal gain will be held accountable,” said Olson. “Our securities markets require, and investor decisions rely on, fair dealing, not deception. Ms. Ransom’s intentional decision to disregard her obligations as a corporate vice president warrants her prosecution and punishment in this case.”
In May of 2015, Ms. Ransom’s co-defendant, Donald Gillispie, failed to appear for two scheduled arraignment hearings. He remains a fugitive and is being pursued by the United States Marshals Service.
The case was investigated by the Internal Revenue Service, Criminal Investigation Division, and the Federal Bureau of Investigation.
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.
Former Evanston Man Convicted of Robbing First Federal Savings Bank in Rock FallsRead the Press Release
ROCKFORD — A former Evanston, Ill. man was convicted today of bank robbery following a three-day jury trial in federal court in Rockford.
CONRAD J. GONZALEZ, 47, was found guilty of robbing the First Federal Savings Bank, located at 701 1st Ave., in Rock Falls, Ill. on Oct. 30, 2013.
According to the indictment and evidence at trial, at approximately 1:00 p.m. on Oct. 30, 2013, Gonzalez entered First Federal wearing a baseball cap and Chicago Bears sweatshirt. Gonzalez approached a bank teller and handed her a note demanding money. When the teller attempted to retrieve the note from the counter, Gonzalez said, “That was a stupid thing to do,” and took the note back. The teller then handed $1,870 to Gonzalez who then walked out of the bank on foot.
Gonzalez faces a maximum potential penalty of up to 20 years in prison, up to 3 years of supervised release following imprisonment, a fine of up to $250,000, and full restitution. The court must impose a reasonable sentence guided by the advisory United States Sentencing Guidelines. Sentencing for Gonzalez is set for April 19, 2016, at 2:30 p.m.
The conviction was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation. The Rock Falls and Sterling Police Departments assisted in the investigation.
The government was represented by Assistant U.S. Attorneys Joseph C. Pedersen and Monica V. Mallory.
Floridian Admits Concealing Assets from Bankruptcy CourtRead the Press Release
PITTSBURGH - A Florida resident has pleaded guilty in federal court on a charge of concealment of bankruptcy assets, United States Attorney David J. Hickton announced today.
Gregory M. Makozy, Sr., 54, of Port St. Lucie, Fla., pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the government represented to the court that Makozy concealed assets from the bankruptcy court in a Chapter 7 Petition in bankruptcy filed in 2013 by transferring assets he owned to others, including a 2005 Aston Martin automobile, and real estate located in Butler County, Pa.
Judge Schwab scheduled the sentencing for May 11, 2016. The law provides for a total sentence of 5 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Office of the United States Trustee, the United States Postal Inspection Service and the Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of Gregory M. Makozy.
Five indicted for bringing multi-kilo shipments of heroin, cocaine and marijuana to Toledo area from California and MexicoRead the Press Release
Five men were named in an 11-count indictment, accused of conspiring to bring heroin, cocaine and marijuana to the Toledo area from Mexico and California, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Indicted are: Jesus Reyes, 27, of Los Angeles; Jose Leal Jr., 27, of Los Angeles; Edgar Campos, 26, of San Fernando, Calif.; Rigoberto Luna Luna, 48, of Mexico, and Eric Dodd, 25, of Oregon, Ohio.
Reyes, Leal, Campos and Luna obtained the drugs in California and Mexico and distributed the heroi, cocaine and marijuana to members of the Alejandro Garcia organization, a narcotics operation that operated in Northwest Ohio. This took place beginning in 2010, according to the indictment.
Reyes, Leal, Campos and Luna facilitated the transportation of kilogram-quantities of heroin, cocaine and marijuana to the Toledo area by utilizing semi-truck deliveries, parcel delivery services and couriers, including Dodd, according to the indictment.
Dodd assisted in the distribution of narcotics to mid-level and lower-level drug dealers in the Toledo area, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Michael Freeman following an investigation by the Federal Bureau of Investigation, the Toledo Police Department and the Metro Drug Task Force.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Federal Jury Convicts Jefferson County Man for Receiving, Distributing and Possessing Child PornographyRead the Press Release
BIRMINGHAM – A federal jury on Wednesday convicted a Jefferson County man on multiple charges of receiving, distributing and possessing child pornography, announced U.S. Attorney Joyce White Vance and Alabama Law Enforcement Agency Secretary Spencer Collier.
Following a three-day trial before U.S. District Judge R. David Proctor, the jury deliberated less than one hour before convicting MARK ALAN LOVE, 50, for receiving, distributing and possessing child pornography between 2010 and 2014.
Love used his home computer and a peer-to-peer file sharing program to download and share thousands of images of child pornography, including images of prepubescent children under 12 years old, according to evidence at trial.
Love remains in federal custody. He is scheduled for sentencing April 19.
The Internet Crimes Against Children Task Force and ALEA’s State Bureau of Investigation investigated the case. Assistant U.S. Attorneys Jacquelyn M. Hutzell and Daniel J. Fortune prosecuted the case.
Father and Son Charged with Drug Related Murder on the Hoopa Indian ReservationRead the Press Release
SAN FRANCISCO – Rodney Vincent Ortiz and Vincent Rudy Ortiz were arraigned in federal court today for their alleged involvement in the March 21, 2015, drug related shooting and murder on the Hoopa Indian Reservation in Humboldt County, California, announced Acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation, Special Agent in Charge David J. Johnson.
Rodney Ortiz, 53, and Vincent Ortiz, 26, of Willow Creek, Calif., were indicted by a federal grand jury on December 17, 2015. In the indictment, the defendants are charged with conspiracy to distribute and possess with intent to distribute marijuana, use of a firearm during and in relation to a drug trafficking crime, use of a firearm during a drug trafficking crime causing murder, obstruction of justice, and use of a firearm during and in relation to a crime of violence.
Rodney and Vincent Ortiz made their initial appearances before the Honorable Laurel Beeler, United States Magistrate Court Judge today. The defendants are being held pending a bail hearing currently scheduled for January 14, 2016, before Chief United States Magistrate Judge Joseph C. Spero. A status conference is scheduled for February 2, 2016, before U.S. District Judge Richard Seeborg.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The maximum statutory penalty for each of the charged offenses is:
- Drug conspiracy, in violation of Title 21, United States Code, Section 846 and 841(a)(1) and (b)(1)(D): five years imprisonment, two years supervised release, and a fine of $250,000;
- Use of a Firearm During and in Relation to a Drug Trafficking Crime, in violation of Title 18, United States Code, Section 924(c): life imprisonment, mandatory minimum term of 10 years imprisonment, and carries a 25 year mandatory minimum consecutive term of prison for each second or successive 924(c) conviction, five years supervised release, and a $250,000 fine;
- Use of a Firearm During a Drug Trafficking Crime Causing Murder, in violation of Title 18, United States Code Section 924(j): death or life imprisonment, and a $250,000 fine;
- Conspiracy to Obstruct Justice and Obstruction of Justice, in violation of Title 18, United States Code, Section 1512(1)(1)(C) and (k): 30 years imprisonment, five years supervised release, and a $250,000 fine;
- Use of a Firearm During and in Relation to a Crime of Violence, in violation of Title 18, United States Code, Section 924(c): life imprisonment, mandatory minimum term of 10 years imprisonment, and carries a 25 year mandatory minimum consecutive term of prison for each second or successive 924(c) conviction, up to five years supervised release, and a $250,000 fine.
However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Kimberly Hopkins is prosecuting the case with the assistance of Lance Libatique. The prosecution is the result of an investigation by the Humboldt County Sherriff’s Office, Humboldt County District Attorney’s Office, Eureka Police Department, and the Federal Bureau of Investigation.
Eaton Rapids Man, Benjamin Jordan Knight, Sentenced to More Than Seventeen Years in Prison for Distribution Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Benjamin Jordan Knight, 29, of Eaton Rapids, Michigan was sentenced today to 210 months (17.5 years) in federal prison for distributing and attempting to distribute child pornography via the Internet, U.S. Attorney Patrick A. Miles, Jr. announced. In addition to the prison term, Chief U.S. District Judge Robert Jonker imposed a 10-year term of supervised release that will commence once Knight is released from imprisonment. Knight will also be required to register as a sexual offender.
Knight pled guilty on September 17, 2015, to distributing and attempting to distribute child pornography. Knight came to the attention of law enforcement on December 27, 2014, when a witness told police that Knight had used a cell phone to display child pornography in a public place. Ensuing police investigation revealed that Knight had distributed and attempted to distribute child pornography to another individual via the Internet. Investigation further revealed that Knight possessed a quantity of child pornography. Knight’s collection of child pornography included hard-core, graphic material, such as images and videos depicting brutal sexual assaults on infants and toddlers. In addition, investigation revealed that Knight had claimed in chat communications that he had himself sexually abused children in the past and wanted to do so again in the future. He offered to pay the parent of a young child if the parent would allow him to sexually abuse the child. In addition, investigation revealed that Knight had previously held employment taking care of a vulnerable child.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The Department of Homeland Security, Homeland Security Investigations (HSI), Battle Creek Police Department, and Emmett Township Department of Public Safety investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
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East Hartford Man Sentenced to 5 Years in Federal Prison for Trafficking HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that BRAYAN GOMEZ, 26, of East Hartford, was sentenced yesterday by Chief U.S. District Judge Janet C. Hall in New Haven to 60 months of imprisonment, followed by three years of supervised release, for trafficking heroin.
According to court documents and statements made in court, the Drug Enforcement Administration’s Hartford Task Force initiated an investigation into a large-scale heroin trafficking organization in Hartford that was being operated by a close associate of GOMEZ. In March 2014, the DEA Task Force received information that GOMEZ’s associate was in possession of a large quantity of heroin.
On March 20, 2014, investigators observed GOMEZ leave his former residence on Sisson Avenue in Hartford, drive to his associate’s residence on Prospect Street in East Hartford and enter the residence. A short time later, GOMEZ drove a separate vehicle away from the East Hartford residence to a hotel in East Hartford, and then entered the hotel. After approximately 20 minutes, GOMEZ walked out of the hotel with a large duffel bag that he did not have with him when he entered the hotel. He placed the bag in the trunk of his vehicle and then drove away.
Investigators conducted a motor vehicle stop of the vehicle on Prospect Street in East Hartford. After GOMEZ gave his consent to a search of the vehicle, investigators removed the duffel bag from the trunk and seized 99.8 grams of raw heroin and 13,317 bags of heroin, packaged for street sale, containing 278.8 grams of heroin. In addition, investigators seized more than 25,000 empty bags used for packaging heroin, as well as other items used in the processing and packaging of heroin.
On September 14, 2015, GOMEZ pleaded guilty to one count of possession with intent to distribute 100 grams or more of heroin.
The DEA Hartford Task Force includes participants from the Bristol, East Hartford, Hartford, Manchester, New Britain, Newington and Wethersfield Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Decorah Man Sentenced for Selling Goats and Farm Equipment Pledged as Collateral for a Federal Farm LoanRead the Press Release
A man who had pledged assets as collateral for a United States Department of Agriculture farm operating loan and then sold those assets without notifying the Department he was doing so, was sentenced today to five years’ probation.
Andrew Hansen, age 36, from Decorah, Iowa, received the sentence after a guilty plea to one count of conversion of property pledged to a farm credit agency.
In a plea agreement, Hansen admitted that he pledged assets, including farm equipment and dairy goats, as security on Farm Services Agency loans he procured to operate a dairy goat farm in northeast Iowa. Hansen further admitted that, in August 2013, without notifying the Farm Services Agency, he sold goats that he had pledged as security on the loans and then used the proceeds from the sale for his own purposes rather than to pay off the farm loans. He also admitted to selling various pieces of farm equipment that he had also pledged as security on the loans.
Hansen was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to five years’ probation and 50 hours of community service. A special assessment of $100 was imposed and he was ordered to make $35,650 in restitution to the Farm Service Agency. Because Hansen was convicted of a felony offense, he can no longer legally possess firearms or ammunition.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the United States Department of Agriculture.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 15-CR-2039.
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David Christopher Mayhew Sentenced to 26 Years ImprisonmentRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that yesterday in federal court, Senior United States District Judge James C. Fox sentenced DAVID CHRISTOPHER MAYHEW, 43, of Raleigh, NC to 320 months imprisonment, followed by 3 years of supervised release. He also ordered payment of $2,025,300 in restitution
MAYHEW was named in a Superseding Indictment filed on July 2, 2014. He was originally indicted on July 9, 2013. His co-defendant, Ronald McCullough, has not yet been located and arrested on the charges.
Special Agent in Charge Thomas J. Holloman III stated, “The IRS, Criminal Investigation is committed to using our Agent’s financial expertise to help bring those that prey on innocent taxpayers for their own enrichment to justice.”
At trial, the Government presented evidence that MAYHEW was involved in an investment fraud scheme that spanned from January 2009 to May 2012 and swindled more than $2,000,000 from investors, promising them returns as much as 100% in 30 days. One victim testified that he had lost his family’s house as a result of the fraud. Two other victims testified that they had to back out of contracts to purchase property because of the fraud.
Investigation of this case was conducted by the FBI, the IRS Criminal Investigation, the Postal Inspection Service, and the North Carolina Secretary of State’s office, Securities Division. Assistant United States Attorney David A. Bragdon represented the government. AUSA Bragdon stated: “MAYHEW used trust in himself and trust in others to deprive victims of money, money that many of them had taken a lifetime to save.”
"When making investment decisions, Investors should always consider that if it sounds too good to be true, it probably is,” said Thomas Noyes, Inspector in Charge of the US Postal Inspection Service Charlotte Division. "This case was especially egregious because the defendants used the victims’ religious beliefs to gain their trust and steal their money. The US Postal Inspection Service will continue to vigorously pursue those who utilize the US Mail to steal our customers’ hard earned money."
“David Mayhew promised his victims huge investments returns, instead they lost their homes, their life savings, even property where they planned to build a church. Now he’ll pay for his crimes behind bars. The FBI and federal partners will keep exposing those responsible for these schemes as long as innocent people are being swindled,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
Convicted Felon Sentenced for Possessing Loaded FirearmRead the Press Release
PROVIDENCE, R.I. – Christopher Jeffrey Monroe, 29, of no permanent address, was sentenced on Wednesday to 24 months in federal prison for being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Newport Police Chief Gary T. Silva.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Monroe to serve 3 years supervised release upon completion of his prison term. Monroe pleaded guilty on September 25, 2015, to being a felon in possession of a firearm.
According to court documents and information presented to the court, on April 27, 2015, Newport Police Department officers developed information that Monroe, who was wanted on an active state arrest warrant, was staying in a room at a Newport motel. While officers were knocking on the door of the room they believed Monroe was occupying, they heard a window being opened. Officers observed Monroe leap from the window. Monroe was detained following a brief foot chase. The officers discovered a loaded semi-automatic handgun in Monroe’s pocket.
According to court records and information presented to the court, Monroe had previously been convicted of felony crimes, including assault.
The case was prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
ATF assisted Newport Police in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
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Concordia parish couple sentenced for stealing nearly $200,000 in Veterans Affairs benefitsRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that a former Concordia Parish couple were each sentenced to 12 months in prison for their roles in a scheme to steal Veterans Affairs benefits over a 10-year period.
Alfred Lewis Jr., 67, of Ferriday, La., and Rose M. Lewis, 64, of Natchez, Miss., were sentenced by U.S. District Judge Dee D. Drell. Alfred Lewis was sentenced on one count of theft of government property or funds, and Rose Lewis was sentenced on one count of conspiracy to commit theft of government property or funds. They were also sentenced to two years of supervised release and ordered to pay $197,784 restitution. According to evidence presented at the August 21, 2015 guilty plea, from July of 2003 until November of 2013, the defendants conspired to steal $197,784 in Veterans Affairs benefits. Alfred Lewis served in the U.S. Air Force and applied for veterans benefits in July of 2003. He and Rose Lewis did not disclose to Veterans Affairs that Rose Lewis had been working while living with Alfred Lewis during the 10-year period he received benefits. In written statements of their income sent to Veterans Affairs, they denied they were working when in fact Rose Lewis was earning more than $50,000 a year in Mississippi.
Veterans Affairs, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the case.
Columbus Man Convicted on Drug & Firearm ChargesRead the Press Release
Dyrell Leshaun Davis, age 32, of Columbus, Georgia was convicted, following a 3-day jury trial, on January 6, 2016, on one count of possession of a controlled substance and one count of possession of a firearm by a convicted felon. Chief U.S. District Court Judge Clay D. Land was the presiding judge.
Evidence presented at trial showed that on April 25, 2014, officers with the Special Operations Unit of the Columbus Police Department executed a search warrant at Mr. Davis’ residence based upon a controlled buy of marijuana that had been made from him at the residence during the previous week. The search revealed approximately 48 grams of packaged marijuana, found hidden inside a bedroom light fixture; a small digital hand held scale; and a loaded handgun found in the kitchen garbage can. The firearm had been reported stolen in July 2013.
Mr. Davis has two prior felony convictions for aggravated assault in Muscogee Superior Court, one in March 2003 and in March 2008.
“Guns and drugs are a deadly combination under any circumstances. When the person who possesses them has previously been twice convicted of violent felonies, it becomes even more so, making the prosecution of this type of case so important for safety in the community,” said Acting United States Attorney G. F. “Pete” Peterman, III.
Possession of a controlled substance carries a maximum sentence of five (5) years in prison. Possession of a firearm by a convicted felon is punishable by a maximum sentence of ten (10) years imprisonment, a fine of up to $250,000, or both. Mr. Davis will be sentenced in about 60 days following a presentence investigation. He remains in custody following this conviction.
The case was investigated by Columbus Police Department’s Lead Investigator S/A Robert Yates and S/A Will Panoke, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Mel Hyde is prosecuting the case on behalf of the Government.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office at 478-621-2603.
Cleveland man sentenced to nearly 10 years in prison for armed robbery in Cleveland HeightsRead the Press Release
A Cleveland man was sentenced to nearly 10 years in prison for robbing a Family Dollar store in Cleveland Heights, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.
Keyonte Oates, aka Keyontae Berry, aka “Pacco,” 23, was previously found guilty of one count of interference with commerce by means of robbery and one count of using and carrying a firearm during and In relation to a crime of violence. He was sentenced to 114 months in prison.
Oates and others attempted to rob the Family Dollar store on September 23, 2014. A firearm was brandished during the incident, according to court documents.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation, Cleveland Division, and the Cleveland Heights Police Department.
Clayton County Man Sentenced in Violent Multi-County Armed Robbery SpreeRead the Press Release
ATLANTA – Anthony Paul Smith has been sentenced 18 years, six months in federal prison for a series of violent armed robberies of six small businesses that he committed in Clayton County, and Henry County, Georgia.
“The hard working citizens of our community deserve to feel safe and secure at their workplaces,” said U.S. Attorney John A. Horn. “The defendant’s numerous acts of violence against multiple victims, including several who knew him, show a complete disregard for people’s lives. The sentence should reassure citizens of our District that we will find, prosecute, and ultimately remove from the community those who place others in danger through their own violent acts.”
“This investigation and sentence is another example of ATF remaining on the frontline of preventing violent crime through excellent cooperation with our law enforcement partners. Through this cooperative effort we were able to apprehend and successfully prosecute a violent and dangerous individual who posed a significant threat to the public,” said ATF Assistant Special Agent in Charge John Schmidt.
According to U.S. Attorney Horn, the charges and other information presented in court: Between December 10, 2013, and January 14, 2014, Smith committed the listed six armed commercial robberies and theft of a firearm from a federal firearms licensee:
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December 10, 2013 - Smith entered Papa John’s Pizza store located in Jonesboro, Georgia. He approached employee, L.C., and demanded money from her at gunpoint. During the robbery, Smith also grabbed employee B.M. around the neck, placed the barrel of the gun to her neck, and said “I want the money.” Smith threatened to shoot both B.M. and L.C., and fled the restaurant after stealing $1,500.
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January 5, 2014 - K.D., an employee of Boost Mobile located in Jonesboro, Georgia, reported to Clayton County Police officers that a man robbed her at gun point of $2,000 while she stood at the cash register. K.D. identified Smith as the armed robber, who she recognized as a former customer at the store. During the robbery, Smith took K.D.’s personal cell phone, ordered her to remove all the money from the cashier drawer, and demanded that she unplug the landline phone in the office and go to the back of the store.
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January 7, 2014 - Smith committed an armed robbery of a Metro PCS store in Stockbridge, Georgia. Just after the robbery, employee K.K. met with investigators and stated that Smith had entered the store several minutes before the robbery and inquired about an iPhone. K.K. identified Smith as the individual who robbed him at gun point of $6,785.
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January 8, 2014 - Smith entered Forest Park Army and Navy store located in Forest Park, Georgia, a federal firearms licensee, and stole a Ruger pistol. Surveillance video footage from the store captured images of Smith during the burglary.
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January 9, 2014 - Smith entered Big D’s Tobacco and Gifts located in McDonough, Georgia. He approached employee T.F. at the customer counter, pointed a silver handgun at her, and demanded money. Smith left the store after stealing more than $400 from T.F. T.F. recognized him as a recent customer.
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January 11, 2014 - Smith committed an armed robbery of Metro PCS located in Jonesboro, Georgia. He approached employee K.H., cocked and pointed a gun at her, and demanded money from the store’s register and safe. K.H. recognized Smith as a former high school classmate. Smith fled the store after stealing $3,767.
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January 14, 2014 - Smith entered another Metro PCS store in Jonesboro, Georgia. He approached employee A.G., pointed a silver revolver at her, and stole $939, as well as a Samsung Galaxy phone, Samsung Galaxy Tablet, and the store’s cordless phone.
Anthony Paul Smith, 24, of Jonesboro, Georgia, was sentenced on January 6, 2015, to 18 years, six months in federal prison, to be followed by five years of supervised release, and restitution of $16,000.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives as well as the Clayton County Police Department and Henry County Police Department.
Assistant United States Attorneys Richard S. Moultrie, Jr. and Suzette Smikle prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
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Clairton Man Pleads Guilty to Child Sex Trafficking ChargeRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of sex trafficking of a child, United States Attorney David J. Hickton announced today.
Robert Allen Middlebrook, 41, of Clairton, Pennsylvania, pleaded guilty to one count of Sex Trafficking of a Child before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, in February 2015, Middlebrook knowingly recruited, enticed, harbored, transported, provided and obtained a female minor, Minor A, to engage in commercial sex acts.
United States District Judge Schwab scheduled sentencing for May 9, 2016, at 9:30 a.m. The law provides for a maximum total sentence of life imprisonment, a fine of $250,000.00, and a term of supervised release for any term of years not less than 5, and up to life, or any or all.
Assistant United States Attorneys Jessica Lieber Smolar and Katherine A. King are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
California Man Arrested for Making False Statements in a Terrorism InvestigationRead the Press Release
A Sacramento, California, resident was arrested today on a federal charge of making a false statement involving international terrorism. Aws Mohammed Younis Al-Jayab, 23, is charged in a complaint that was unsealed today in the U.S. District Court of the Eastern District of California following his arrest. He will have his initial appearance tomorrow at 2:00 p.m. PST in Sacramento.
The arrest was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Benjamin B. Wagner of the Eastern District of California and Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Division.
“Aws Mohammed Younis Al-Jayab allegedly traveled overseas to fight alongside terrorist organizations and lied to U.S. authorities about his activities,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is protecting the nation from terrorism, and we will continue to hold accountable those who seek to join or aid the cause of terrorism, whether at home or abroad.”
“According to the allegations in the complaint, the defendant traveled to Syria to take up arms with terrorist organizations and concealed that conduct from immigration authorities,” said U.S. Attorney Wagner. “While he represented a potential safety threat, there is no indication that he planned any acts of terrorism in this country. I commend the FBI’s Joint Terrorism Task Force for their dedicated work on this matter.”
“In today’s complex terrorism environment, our Joint Terrorism Task Force plays an important role in combating the threat of terrorism. The collaboration is stronger than ever and essential to protect our communities from harm,” said Special Agent in Charge Miller. “The public plays an equal, if not more important, role in protecting the community. We encourage those who encounter individuals who express an intent to do harm or claim allegiance to a terrorist group – whether in person or online – to voice their concerns to law enforcement.”
According to the complaint, Al-Jayab is a Palestinian born in Iraq, who came to the United States as an Iraqi refugee in October 2012. Between October 2012 and November 2013, while living in Arizona and Wisconsin, he communicated over social media with numerous other individuals about his intent to return to Syria to fight for terrorist organizations. In those communications, according to the complaint, Al-Jayab discussed his previous experience with firearms and with fighting against the regime in Syria. On Nov. 9, 2013, he flew from Chicago to Turkey, and then traveled to Syria. Between November 2013 and January 2014, Al-Jayab allegedly reported on social media that he was in Syria fighting with various terrorist organizations, including Ansar al-Islam, a designated foreign terrorist organization since 2004. He returned to the United States on Jan. 23, 2014, and settled in Sacramento.
The complaint alleges that on Oct. 6, 2014, Al-Jayab was interviewed by U.S. Citizenship and Immigration Services and responded in the negative to numerous questions, including whether he had ever been a member of any rebel group or militia; whether he had ever provided material support for any person or group engaged in terrorist activity; and whether he had ever been a member of a group, or assisted in a group, which used or threatened the use of weapons against others. Al-Jayab also allegedly stated during the interview that he had traveled to Turkey in late 2013 and early 2014 to visit his grandmother. The complaint alleges that all of those answers were materially false.
If convicted, Al-Jayab faces a maximum statutory penalty of eight years in prison and a $250,000 fine. Any potential sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation.
The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The ongoing investigation is being conducted by the FBI’s Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorney Jill Thomas of the Eastern District of California and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section.
Al-Jayab Complaint (Has Been Unsealed)
Bullhead Woman Sentenced for Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a Bullhead, South Dakota, woman convicted of Child Abuse was sentenced on January 4, 2016, by U.S. District Judge Charles B. Kornmann.
Velnita Jolette Hairy Chin, age 43, was sentenced to 37 months in custody, followed by 3 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Hairy Chin was indicted by a federal grand jury on July 14, 2015. She pled guilty on November 2, 2015. Hairy Chin has had twelve previous convictions for Child Abuse/Neglect.
The conviction stems from an incident on June 23, 2015, when Bureau of Indian Affairs (BIA) law enforcement responded to a house call in Bullhead. Law enforcement was informed of a female passed out in the residence and multiple young children outside without supervision. Upon arrival, an officer made contact with a young female child in the home. The officer asked her if her mom was home, to which she responded no, but that grandma was home and was “drunk.”
The officer came into the home in an attempt to find a responsible adult. In searching for an adult in the home, the officer noticed a baby in a car seat in the living room and multiple other young children. In a basement room, the officer discovered an adult male and female passed out in a bed. The officer woke the female up and identified her as Hairy Chin who asked law enforcement “What’s going on?” The officer asked her who was watching the kids to which she responded “I am.” When the officer inquired how long the baby had been in the car seat, he had to repeat himself as Hairy Chin did not appear to be able to comprehend the question. Despite being asked repeatedly about the baby in the car seat, Hairy Chin was not able to answer the question. Hairy Chin informed the officer that the children were hers. At this point, Hairy Chin was placed under arrest for child neglect and was escorted to the patrol unit.
The officer then went back into the house to check on the kids. A neighbor came over and helped him change some of the kids’ diapers. The neighbor also made a bottle for the youngest child. The officer became concerned when he noticed the baby kept screaming when they would try to touch him. The officer went out to his patrol unit and asked Hairy Chin if something was wrong with the baby, to which she replied that the baby was “fine, fat, and okay.” One of the little girls told the officer that the baby had fallen, after being dropped. The officer called for an ambulance to come and check the baby out. The officer again asked Hairy Chin what happened to the baby. Initially Hairy Chin denied that anything was wrong with him, but later admitted that he was dropped the previous day but claimed he was now fine.
When the EMTs arrived on scene, they too noticed that the baby cried whenever he was picked up and carried. Again, the officer went to his unit and asked Hairy Chin if anything was wrong with the baby, Hairy Chin again informed the officer that the baby was fine. The EMTs took the child to the hospital in Mobridge.
Child Protection Services (CPS) arrived and the officer and a neighbor relayed the events that had occurred earlier in the day. The neighbor came over earlier in the day to find all seven children in the home without supervision. The oldest of the children, approximately 11 years of age, informed the CPS worker that he was in charge and could take care of all of the children. Safe homes were found for all of the children. The CPS worker then travelled to Mobridge to check on the baby who had the following injuries: abrasions on his legs from sitting in the car seat for so long, bruising on his right leg and buttock, diaper rash, air in his stomach from constant crying, and a right ear infection.
This case was investigated by the BIA, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Hairy Chin was immediately turned over to the custody of the U.S. Marshals Service.
Buffalo Man Indicted on Drug ChargesRead 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 a federal grand jury has returned and indictment charging Rashawn Crule, 40, of Buffalo, NY, with possession with intent to distribute, and distribution of heroin, possession with intent to distribute crack cocaine, possession with intent to distribute cocaine, maintaining a drug involved premises, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm. The charges carry a minimum penalty of five years in prison, a maximum of life and a $1,000,000 fine.Assistant U.S. Attorney Meghan Tokash, who is handling the case, stated that according to the indictment, between October 2, 2015 and November 2, 2015, the defendant possessed with intent to distribute and distributed various illegal narcotics including heroin, crack cocaine and cocaine. The indictment further states that Crule maintained a premises at 98 Gillette Avenue in Buffalo for the purpose of manufacturing, distributing and using these illegal narcotics. The defendant also allegedly possessed a 9mm handgun. Following a 2002 conviction in Erie County Court, Crule is prohibited from possessing a firearm.
Crule made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and was released on bail.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause and Lieutenant Kevin Reyes, CNET West Commander, and the U.S. Customs and Border Protection, Air and Marine Unit, under the direction of Brian Manaher, Director, Marine Operations.
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.
Boston Man Arrested for Multiple RobberiesRead the Press Release
BOSTON – A Boston man was arrested today and charged with robbing three financial institutions: the East Cambridge Saving Bank and Naveo Credit Union in Cambridge and Rockland Trust in Allston.
Kim N. Daley, 46, was charged by criminal complaint with three counts of bank robbery. U.S. District Court Magistrate Judge Donald L. Cabell scheduled a detention and probable cause hearing for Jan. 14, 2016.
According to court documents, on June 1, 2015, an individual later identified as Daley, entered the East Cambridge Savings Bank in Cambridge and gave the teller a note demanding money. The teller handed Daley money from her drawer and he fled the bank. Surveillance video recorded the robbery and Daley’s image was circulated on the Massachusetts Crime Network. A state parole officer recognized Daley as the robber and notified the Cambridge Police Department.
On Aug. 7, 2015, an individual, later identified as Daley, entered the Rockland Trust in Allston. Once again, Daley gave the teller a note demanding money. The teller handed Daley money from her drawer and he fled the bank. Following the robbery, Daley was identified by bank employees from a photo array.
On Aug.14, 2015, an individual, later identified as Daley, entered the Naveo Credit Union in Cambridge. Daley gave the teller a note demanding money and stated, “hurry up, I have a gun.” The teller handed Daley money from her drawer and he then fled the bank. Surveillance cameras recorded the robbery which law enforcement reviewed and identified Daley.
On Aug. 21, 2015, Daley was arrested in New York City and transported to Massachusetts to face charges.
The charging statue provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $250,000 on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Boston Police Commissioner William Evans; Cambridge Police Commissioner Robert C. Haas; and John Gibbon, U.S. Marshal for the District of Massachusetts, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Beckley physician pleads guilty to Federal drug crime and health care fraudRead the Press Release
BECKLEY, W.Va. - Acting United States Attorney Carol Casto announced today that Jose Jorge Abbud Gordinho, M.D., of Beckley, pleaded guilty in federal court to illegally prescribing the pain medication hydrocodone. Dr. Gordinho also pleaded guilty to defrauding Medicare and Medicaid by submitting materially false claims for medical services that were not medically necessary.
Dr. Gordinho admitted that he routinely prescribed pain pills for illegitimate purposes and in a manner that was outside the bounds of medical practice. Dr. Gordinho further admitted that he defrauded Medicare and Medicaid when he sought and received payment for office visits, services, and prescriptons related to his illegal prescribing practices.
United States District Judge Irene C. Berger set Dr. Gordinho’s sentencing for April 26, 2016, in Beckley. Dr. Gordinho faces up to 10 years in federal prison, a $1,250,000 fine, and restitution to Medicare and Medicaid. Additionally, as part of the plea agreement, he will permanently surrender his DEA Certificate of Registration, ensuring that he will no longer be permitted to prescribe controlled substances.
This case was investigated by the West Virginia State Police, the Federal Bureau of Investigation, and the Office of Inspector General, U.S. Department of Health and Human Services.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Beckley man sentenced on Federal drug chargeRead the Press Release
BECKLEY, W.Va. – Acting United States Attorney Carol Casto announced that a Beckley man was sentenced today in federal court to a year and three months in prison for a drug crime.
Michael Leigh Benko, 33, previously pleaded guilty in July of 2015 to using a telephone to facilitate a drug deal. Benko admitted that on January 13, 2015, he used a cell phone to coordinate the sale of oxycodone to a confidential informant working with law enforcement authorities.
The case was investigated by the Beckley/Raleigh County Drug and Violent Crime Unit. The defendant was sentenced by United States District Judge Irene C. Berger.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Beckley felon sentenced to over eight years on Federal gun chargeRead the Press Release
BECKLEY, W.Va. – Acting United States Attorney Carol Casto announced that a Beckley felon was sentenced today in federal court to eight years and four months in prison for being a felon in possession of a firearm. Kevin Terrell, 30, previously pleaded guilty in July of 2015 to the federal gun charge.
On January 13, 2015, Terrell admitted that he was in possession of an assault rifle. Law enforcement seized the ArmaLite Model M-15 5.56 mm rifle at Terrell’s residence on Granville Avenue in Beckley. Terrell was prohibited from possessing any firearm under federal law because of his 2007 felony convictions in Raleigh County Circuit Court for unlawful wounding and felony destruction of property.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The defendant was sentenced by United States District Judge Irene C. Berger.
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 that target gun crime.
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Baton Rouge Man Convicted of Extorting Minors, Producing Child Pornography, and Receiving Child PornographyRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced the conviction of Matthew Chaney Walker, 25, of Baton Rouge, Louisiana, for extorting numerous children over the internet for the purpose of producing and receiving child pornography.
This morning, before Chief U.S. District Court Judge Brian A. Jackson, Walker pleaded guilty to four counts of extortion, in violation of Title 18, United States Code, Section 875(d); three counts of production of child pornography, in violation of Title 18, United States Code, Sections 2251(a) and 2; and three counts of receipt of child pornography, in violation of Title 18, United States Code, Section 2252A(a)(2); and he also agreed to forfeiture. Walker is scheduled to be sentenced on May 5, 2016.
In connection with his guilty plea, Walker admitted that, in 2014, he met young girls online for the purpose of sexually exploiting them. In order to lure his victims, Walker pretended to be a teenage girl and used different online screen names. During chats with his victims, Walker broached the topic of trading nude and sexually explicit images. To lower his victims’ inhibitions, Walker initiated sexually explicit conversations and sent sexually suggestive photographs of other young girls that he represented to be of himself. Once he obtained compromising pictures of his victims, Walker then demanded that the victims send him images even more graphic than those they had already sent to him. Walker threatened to send compromising pictures of the victims to their families, schools, friends, and the public should they refuse to comply with his demands. As a result of his conduct, Walkers’ victims created and sent child pornography to him.
U.S. Attorney Green stated: “The defendant used social media to target and sexually exploit young girls. This type of criminal conduct is an evolving and pernicious threat to our children. The devastating impact of this type of criminal conduct on our children, their families, and the community cannot be ignored. With an internet connection or smart phone, children of all ages are vulnerable to online predators, such as this defendant.”
This case is being handled jointly by the U.S. Department of Homeland Security, Homeland Security Investigations, and the United States Secret Service, with assistance from the Cyber Crime Unit and the Criminal Division of the Louisiana Attorney General’s Office; the Peterborough Police Service, a member of the Ontario Provincial Strategy to Protect Children from Sexual Abuse and Exploitation on the Internet; the Cheatham County, Tennessee Sheriff’s Office; the Naperville, Illinois Police Department; and the Ottawa County, Michigan Sheriff’s Office, among others.
This matter is being prosecuted by Assistant U.S. Attorney Cam T. Le, who serves as the Project Safe Childhood Coordinator for the Middle District of Louisiana.
The investigation of this matter is ongoing. Law enforcement is attempting to confirm the identity of additional victims. Anyone who believes that they might have been a victim of Walker’s offenses is encouraged to contact the Baton Rouge Office of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), at 225-757-7770, extension 106, or the local HSI field office.
These federal charges are part of Project Safe Childhood, a nationwide initiative by the U.S. 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “Resources” tab for information about Internet safety education.
Armed Career Criminal is Sentenced to PrisonRead the Press Release
Robert M. Hertz, age 52, of Cedar Rapids, Iowa, was sentenced in United States District Court in Cedar Rapids today, after pleaded guilty to one count of possessing a firearm and ammunition as a felon.
In an Indictment filed on June 11, 2015, Hertz was charged with possessing a .40 caliber rifle and 237 rounds of ammunition in May 2015, after he had previously been convicted of three felonies, namely, Arson, Second Degree Burglary, and Manufacturing Methamphetamine. Hertz pled guilty to that charge on July 22, 2015.
Today, Chief United States District Court Judge Linda R. Reade sentenced Hertz to serve 188 months in federal prison, to be followed by a five-year term of supervised release.
Evidence presented at the sentencing hearing showed that Hertz attempted to obstruct justice by trying to influence a witness to conceal information from the FBI about Hertz’s use and possession of guns. Other evidence presented showed Hertz possessed three guns and numerous ammunition magazines. Hertz was also shown to have made a number of concerning posts on his Facebook accounts including describing how he had: made a promise to kill another person for a friend, and remained committed to that promise, if called upon; offered to kill a woman and “bury her deep;” and on another occasion “burned the house down” around his unfaithful wife and brother-in-law. Hertz referred to himself on Facebook as a “professional convict” stating, “I used to say there’s one thing I do well and that’s time . . . I do it real good . . . and I am known for it out there.”
In sentencing Hertz, Judge Reade noted that Hertz’s Facebook messages reflect his “criminal thinking” and were very concerning, and although he had no recent criminal convictions, his “head is still not on straight.”
The case was prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by Homeland Security Investigations; Alcohol, Tobacco and Firearms; and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-00053.
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Alabama Courts Not Free to Disobey U.S. Supreme Court on Marriage Equality: U.S. Attorneys Joyce White Vance & Kenyen BrownRead the Press Release
“The Chief Justice of the Alabama Supreme Court has issued an administrative order, directing probate judges that they may not issue marriage licenses to same-sex couples, despite the U.S. Supreme Court's decision last year on marriage equality. We have grave concerns about this order, which directs Alabama probate judges to disobey the ruling of the Supreme Court,” said U.S. Attorneys Joyce White Vance of the Northern District of Alabama and Kenyen Brown of the Southern District of Alabama. “Government officials are free to disagree with the law, but not to disobey it. This issue has been decided by the highest court in the land and Alabama must follow that law.”
Acoma Pueblo Man Sentenced for Assaulting His Intimate PartnerRead the Press Release
ALBUQUERQUE – Randy P. Shutiva, 54, a member of the Acoma Pueblo who resides in San Fidel, N.M., was sentenced this afternoon in federal court in Albuquerque, N.M., to eight months in federal prison followed by one year of supervised release for his assault conviction.
Shutiva was arrested on Dec. 19, 2014, on a criminal complaint charging him with assaulting his intimate partner, an Acoma Pueblo woman, by punching her in the face and head and kicking her body. The criminal complaint alleged that Shutiva committed the assault on Dec. 6, 2014, in Acoma Pueblo within Cibola County, N.M. The victim lost the hearing in one ear and sustained other injuries as a result of the assault.
On Aug. 25, 2015, Shutiva pled guilty to a misdemeanor information charging him with assault by striking, beating or wounding, and admitted assaulting the victim.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Pueblo of Acoma Tribal Police Department. Assistant U.S. Attorneys Raquel Ruiz-Velez and Elaine Ramirez prosecuted this case.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Wednesday 6 January 2016
Wichita Falls Man Sentenced to Statutory Maximum of 20 Years in Federal Prison for Role in Methamphetamine Distribution ConspiracyRead the Press Release
WICHITA FALLS, Texas — Joshua Antonio Ramirez, a Wichita Falls, Texas, man who admitted his role in a methamphetamine distribution conspiracy, was sentenced Monday to the statutory maximum sentence of 20 years in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Ramirez, 30, pleaded guilty in September 2015 to one count of conspiracy to possess with intent to distribute methamphetamine. His co-defendant, Doty Lee Standridge, 31, also of Wichita Falls, pleaded guilty to the same offense and was sentenced in October 2015 to 110 months in federal prison.
According to documents filed in the case, between February and August 2013, Ramirez supplied quantities of methamphetamine – ranging from1/4 ounce to one pound – to numerous individuals in the Wichita Falls area, including Standridge. Ramirez received and distributed the methamphetamine in the Wichita Falls area and elsewhere.
The case was investigated by the Texas Department of Public Safety. Assistant U.S. Attorney Mary Walters prosecuted.
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Wichita Falls Man Sentenced to 189 Months in Federal Prison on Methamphetamine ConvictionsRead the Press Release
WICHITA FALLS, Texas — A Wichita Falls man, Matthew Taylor Lawrence, 25, has been sentenced by U.S. District Judge Reed C. O’Connor to 189 months in federal prison, following his guilty plea in August 2015 to one count of possession with intent to distribute methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
According to plea documents filed in the case, on May 9, 2015, at approximately 7:30 p.m., officers with the Wichita Falls Police Department, in a marked patrol car, attempted to stop Lawrence, who was driving a motorcycle and exceeding the speed limit. Lawrence pulled into a driveway, left the motorcycle and fled on foot. As he was running away, officers saw him drop a firearm in the front yard of a nearby residence. Officers caught up with Lawrence and took him into custody. He had a small backpack that contained approximately 212 grams of methamphetamine contained in four plastic bags. Officers also later recovered the Glock 9mm caliber pistol that Lawrence had dropped.
The Wichita Falls County District Attorney’s Office, the Wichita Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Mary Walters prosecuted.
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West Point Cadet Sentenced to More Than Eight Years in Prison for Distributing, Receiving, and Possessing Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that RICKY PATRICK HESTER was sentenced to 97 months’ in prison by United States District Judge Vincent L. Briccetti for receipt, distribution, and possession of child pornography. The sentencing today followed HESTER’s conviction on June 23, 2015, following a jury trial before Judge Briccetti.
U.S. Attorney Preet Bharara said: “Ricky Patrick Hester collected, shared, and distributed appalling depictions of children being sexually abused. This case reinforces the need for law enforcement to remain vigilant in its efforts to protect children from those who prey on them.”
According to the Indictment and the evidence at trial:
From at least as early as November 2012, HESTER used a Yahoo! email account, a file-sharing account on Dropbox.com, as well as his personal cellphone, to collect and share images of children being forced into sexual activity.
On December 18, 2013, HESTER was interviewed by agents with Homeland Security Investigations (“HSI”) and he admitted that he had used his Yahoo! email account to send child pornography, that his preference was for boys as young as four years old, that he had used Dropbox to trade child pornography with others, and that he stored child pornography on his cellphone.
HESTER’s cellphone, which was seized by HSI on December 18, 2013, during a search warrant of HESTER’s dorm room at West Point, contained approximately 1,200 images and videos of children engaging in sexual activity.
Evidence at trial included approximately 100 emails sent or received by HESTER. In many of these emails, HESTER requested videos and images of “kids being forced to do stuff,” “boys being tied up and peed on,” and “man boy hardcore.” In numerous emails, he indicated a preference for boys aged four to 10 years old.
HESTER entered the United States Military Academy at West Point as a cadet in August 2009. He took a sabbatical from West Point from August 2011 through August 2012. He returned to West Point in the fall of 2012. At the time of his arrest, on December 19, 2013, HESTER was one semester away from graduation.
HESTER, 25, lived in Granger, Indiana, from his arrest until his conviction. Judge Briccetti remanded him following his conviction. In sentencing HESTER, Judge Briccetti underscored that the “evidence of guilt was overwhelming,” and that the images that HESTER possessed and traded depicted “the torture of children.”
Mr. Bharara praised the outstanding investigative work of the Department of Homeland Security. He also thanked the Army Criminal Investigation Command for their assistance with the investigation.
This prosecution is being handled by the White Plains Division. Assistant United States Attorneys Lauren Schorr and Marcia S. Cohen are in charge of the prosecution.
Waterloo Man Convicted of Firearm and Drug ChargesRead the Press Release
A Waterloo man who possessed a firearm as a felon and possessed crack cocaine with the intent to distribute it was convicted by a jury today after a two-day trial in federal court in Cedar Rapids.
Marchello Rembert, 32, from Waterloo, Iowa, was convicted of being a felon in possession of a firearm and possessing crack cocaine with the intent to distribute. The verdict was returned this morning following about two hours of jury deliberations.
The evidence at trial showed that on June 4, 2015, Rembert was at the 200 block of Cottage Street on the East Side of Waterloo, when police placed him under arrest on an active state arrest warrant. During a pat-down search, police located 15 baggies of crack cocaine in Rembert’s front pocket. Further investigation that evening revealed a loaded 9mm Ruger pistol in Rembert’s girlfriend’s vehicle. During analysis of the firearm, police located Rembert’s left index fingerprint on the left side of the firearm near the trigger guard area. Rembert was a felon, having previously been convicted of felony drug crimes, as well as felony theft and fraud offenses.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Rembert remains in custody of the United States Marshal pending sentencing. Rembert faces a possible maximum sentence of 30 years’ imprisonment, a $1,250,000 fine, $200 in special assessments, and at least three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated by the Waterloo Police Department, which was assisted by the Federal Bureau of Investigation, Federal Task Force, Black Hawk County Sheriff’s Office, Cedar Falls Police Department, Bureau of Alcohol Tabaco and Firearms, Drug Enforcement Administration, and Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-2038.
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United States Reaches Agreement with Former York County Chiropractor in Civil False Claims Act SuitRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that it has entered into a Consent Decree with former chiropractor Kurt Bauer, age 62, of York, PA, to resolve a suit the United States filed alleging that Bauer remained involved in the management of a Medicare provider’s business despite his exclusion by the U.S. Department of Health and Human Services, in violation of the False Claims Act.
United States Attorney Peter Smith announced today that the resolution was accepted by U.S. District Court Chief Judge Christopher C. Conner.
The civil Complaint filed by the United States alleged that Bauer was the former owner of Leader Heights Healthcare, a York County-based chiropractic and primary care provider that accepted Medicare patients. The U.S. Department of Health and Human Services (HHS) excluded Bauer from participating in federal health care programs in 2008, which had the practical effect of precluding his employment at Leader Heights in any capacity.
Despite the exclusion and after falsely informing Medicare that he had “[r]etired,” Bauer allegedly retained ownership of Leader Heights until 2009 and continued to be involved in the management and administration of Leader Heights until he learned of the government’s investigation in 2013. During this period of time, Leader Heights allegedly submitted thousands of claims to Medicare for reimbursement for several million dollars. The government contends that, because of Bauer’s involvement in the management and administration of Leader Heights during his exclusion, Bauer knowingly caused the submission of false claims to Medicare that improperly sought reimbursement for the services he provided.
The Consent Decree resolves the allegations in the Complaint, and requires Bauer to:
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Make payments over the next five years to the United States totaling approximately $30,000.
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Consent to a renewed exclusion from federal health care programs for the next 25 years.
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Make bi-annual certifications to the U.S. Attorney’s Office for the next 5 years, under penalty of perjury, certifying that he is complying with his renewed exclusion and the pertinent guidance from HHS.
This matter was investigated by the U.S. Department of Health and Human Services’ Office of Inspector General and the Health Care Fraud Unit of the U.S. Attorney’s Office. The matter was handled by Assistant U.S. Attorney Anthony Scicchitano for the U.S. Attorney’s Office.
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URS E & C Holdings, Inc. Agrees to Pay $9 Million to Resolve False Claims Act AllegationsRead the Press Release
URS E & C Holdings Inc., a successor in interest to the global design and construction company Washington Group International Inc. (WGI), has agreed to pay $9 million to settle allegations that WGI submitted false claims in connection with United States Agency for International Development (USAID) contracts, the Justice Department announced today.
“Contractors who misrepresent their eligibility for government contracts undermine the government procurement process,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Justice Department will take action to protect that process and to ensure that taxpayer funds are not misused.”
“Government contractors must be honest and forthright,” said U.S. Attorney Wendy J. Olson for the District of Idaho. “This settlement protects the integrity of the federal procurement process. Whether a situation involves procurement fraud, as in this case, or healthcare fraud or any other type of fraud and dishonesty, the U.S. Attorney’s Office for the District of Idaho seeks to hold those obtaining public funds accountable.”
The settlement concerns USAID-funded contracts for the construction of water and wastewater infrastructure projects in the Arab Republic of Egypt in the 1990s. The contracts were awarded to a joint venture partnership between WGI, Contrack International Inc. (Contrack) and Misr Sons Development S.A.E. (HAS), an Egyptian company. The United States filed suit under the False Claims Act and the Foreign Assistance Act, alleging that prior to the award of those contracts, the joint venture partners concealed from USAID that Contrack and HAS were partners in the venture, thus preventing USAID from evaluating their qualifications and eligibility, which was a precondition to contract award. As a result, WGI and its partners allegedly received USAID-funded contracts for which they were ineligible. The settlement resolves only WGI’s liability. The United States previously settled with Contrack and is continuing to pursue its claims against HAS.
This settlement was the result of a coordinated effort by the Department of Justice, Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the District of Idaho; and the USAID Office of Inspector General.
The case is United States v. Washington Group International Inc. f/k/a/ Morrison Knudsen, Corporation, Contrack International, Inc.; and Misr Sons Development S.A.E. a/k/a Hassan Allam Sons, No. 04-555 (D. Idaho). The claims resolved by this settlement are allegations only and there has been no determination of liability.
Two Men Facing Charges in Separate Bank Robbery CasesRead 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 Ronald Anthony McCarter, Jr., 24, of Lackawanna, NY, was arrested and charged by criminal complaint with bank robbery. The charge carries a maximum sentence of 20 years in prison, a fine of $250,000, or both. Additionally, a federal grand jury has returned an indictment in a separate case charging Laverne Palmer, a/k/a Poogaloo, 25, of Buffalo with bank robbery, entering a bank with intent to commit a larceny, and bank larceny. Those charges also carry a maximum sentence of 20 years in prison, a fine of $250,000, or both.Assistant U.S. Attorney Brendan T. Cullinane, who is handling the cases, stated that according to the criminal complaint against McCarter, on October 29, 2015, the Key Bank on Broadway Avenue in Lancaster, NY was robbed. An individual entered the bank, approached a teller and passed a note which demanded cash, no dye pack, and no sudden movements. Subsequent investigation identified McCarter as the individual based on bank surveillance photos.
Meanwhile, according to the indictment and a criminal complaint filed previously against Palmer, on October 26, 2015, the Key Bank on George Urban Boulevard in Depew was robbed in what is believed to be a series of connected bank robberies. The defendant entered the bank, approached a teller and passed a note which demanded cash, no dye pack, and no sudden movements. Palmer was identified by investigators in bank surveillance photos.
McCarter made an initial appearance and Palmer was arraigned before U.S. Magistrate Judge Michael J. Roemer. Both defendants are being held pending further proceedings.
The complaint and indictment are the culmination of investigations by the Federal Bureau of Investigation, under the direction on the part of Adam S. Cohen, the Lancaster Police Department, under the direction of Chief Gerald Gill, the Depew Police Department, under the direction of Chief Stan Carwile, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
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.
Three Tampa Residents Sentenced in Conspiracy to Import Synthetic Cannabinoids, a/k/a "Spice"Read the Press Release
After a two day hearing, three Tampa residents were sentenced for their participation in a conspiracy to import synthetic cannabinoids, a/k/a “Spice,” to the United States from China, by U.S. District Court Judge Donald M. Middlebrooks in West Palm Beach, Florida.
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, A.D. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, and Delany E. De Leon-Colon, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Saiful Hossain, 28, was sentenced to 120 months incarceration, to be followed by 3 years of supervised release. Hossain was also ordered to forfeit assets totaling over $1.5 million and real property in St. Petersburg, Florida.
Ahmed Yehia Khalifa, 28, was sentenced to 96 months incarceration, to be followed by 3 years of supervised release and Ahmed Maher Elhelw, 25, was sentenced to 36 months incarceration, to be followed by 3 years supervised release. Khalifa and Elhelw were also ordered to forfeit assets totaling $472,780.00.
The defendants previously pled guilty to conspiracy to import a Schedule 1 controlled substance (XLR-11) and conspiracy to manufacture, possess with intent to manufacture and distribute a Schedule 1 controlled substance (XLR-11).
According to court records, U.S. Customs and Border Protection (CBP) Officers in New York identified, searched and detained twelve U.S. Postal Service (USPS) parcels, destined for Indian River and Palm Beach Counties, in the Southern District of Florida. Each of the parcels was shipped from China and contained three kilogram packages of a controlled substance, XLR-11 a chemical used in the manufacture of smokable synthetic cannabinoids (SSC). The parcels were mailed to separate private mailboxes, with defined street addresses, located at mailbox service centers in Indian River and Palm Beach Counties.
The court records further indicate that SSC products, commonly known as “Spice,” are a mixture of an organic “carrier” medium, such as the herb-like substance damiana leaf and/or marshmallow leaf, which is then typically sprayed or mixed with a synthetic cannabinoid chemical compound which mimics the pharmacological effect of the a Schedule I controlled substance, THC. This organic “carrier” is then commonly sprayed with a tobacco flavoring such as strawberry, blueberry, or pineapple, in order to mask the harsh chemical taste upon ingestion. Currently, there are hundreds of synthetic cannabinoid compounds.
Mr. Ferrer commended the investigative efforts of ICE-HSI, DEA, USPIS, U.S. Customs and Border Protection, the Hillsborough County Sheriff’s Office, the Tampa Police Department, and the Indian River County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorneys Carmen Lineberger and Antonia Barnes.
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.