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23 February 2016
Kittanning Woman Gave False Information to Social Security to Continue Receiving BenefitsRead the Press Release
PITTSBURGH – An Armstrong County resident pleaded guilty in federal court to a charge of making false statements to the Social Security Administration, United States Attorney David J. Hickton announced today.
Sona Marie Murphy, 38, of Kittanning, Pa., pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that on July 30, 2012, in order to ensure continued receipt of disability insurance payments, Murphy submitted a signed statement to the Social Security Administration falsely reporting that she was not working, did not have wages or self-employment income, and had not worked since 2009. The Social Security Administration - Office of Inspector General gathered evidence, however, establishing that Murphy had worked as a waitress at the Burrell Inn, located in Lower Burrell, Pa., as well as owned and was operating a catering business, most recently doing business as Sweet Pea's Catering and Sweets and "Every Day is an Occasion."
Judge Fischer scheduled sentencing for June 16, 2016, at 9:30 a.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court allowed Murphy to remain on bond.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Social Security Administration - Office of Inspector General conducted the investigation that led to the prosecution of Murphy.
Kent County Tax Return Preparer, Andres Orrego-Hernandez, Sentenced for Conspiring to Defraud the Government and Aiding in the Filing of A False Tax ReturnRead the Press Release
GRAND RAPIDS, MICHIGAN – Grand Rapids resident Andres Orrego-Hernandez, age 31, was sentenced to 18 months’ imprisonment by U.S. District Judge Paul L. Maloney for conspiracy to defraud the government and aiding in the filing of a false tax return, U.S. Attorney Patrick A. Miles, Jr. announced today. In addition to the prison term, U.S. District Judge Maloney ordered Orrego-Hernandez to pay $371,648.00 in restitution to the IRS, and to serve two years of court supervision following his release from prison.
Orrego-Hernandez had pled guilty before Magistrate Judge Phillip J. Green in November, 2015. According to the plea agreement filed with the court, Orrego-Hernandez admitted his role in the conspiracy and in aiding and assisting in the preparation of false and fraudulent federal income tax returns. The returns filed inflated income and/or the number of dependents to qualify for the earned income credit and/or inflated or claimed entirely false deductions or credits to qualify for larger refunds. Orrego-Hernandez directed the portion of the client refunds attributable to his criminal activity to bank accounts he controlled. Orrego-Hernandez’s actions defrauded the United States of $371,648.00.
In November 2015, U.S. District Judge Paul L. Maloney sentenced co-defendant Humberto Manrique-Mendoza to 18 months imprisonment, followed by 24 months of supervised release, 200 hours of community service in lieu of a fine. He also ordered Manrique-Mendoza to pay restitution in the amount of $371,648 to the IRS, joint and severally with Orrego-Hernandez.
IRS-CI Special Agent in Charge Jarod J. Koopman stated, "Most professional tax preparers provide a great service to their clients. However, those like Orrego-Hernandez and Manrique-Mendoza should remind us all of the importance of selecting a reputable tax return preparer."
This case was investigated by Special Agents of IRS-Criminal Investigation and Assistant U.S. Attorney B. Rene Shekmer prosecuted the case.
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KC Man Pleads Guilty to Armed Craigslist RobberiesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to his role in a conspiracy to commit a series of armed robberies against victims who were lured through an advertisement posted on Craigslist.
Debvon Buckner, 24, of Kansas City, pleaded guilty before U.S. District Judge Roseann Ketchmark to one count of participating in the robbery conspiracy, five counts of aiding and abetting the robberies and one count of aiding and abetting the discharge of a firearm during a crime of violence.
By pleading guilty today, Buckner admitted that he participated in a conspiracy between May 1 and Sept. 19, 2014, to rob several individuals at gunpoint. Buckner knew that co-conspirators robbed a Hispanic family on June 25, 2014, when the victims responded to a false advertisement for a Samsung television on Craigslist. After that robbery, Buckner agreed to be the primary point of contact with the victims, as conspirators continued using Craigslist to lure victims to be robbed. Buckner made initial contact with the victims, while his co-conspirators robbed them at gunpoint.
Buckner admitted that he participated in five additional armed robberies in which conspirators posted false advertisements to buy or sell items on Craigslist in order to entice their victims to meet so that conspirators could steal money and electronics.
July 16, 2014, Armed Robbery and Shooting
The final robbery occurred on the evening of July 16, 2014, when three victims met Buckner at 5500 E. 84th Terrace, Kansas City, Mo., to look at a Hyundai Sonata that was falsely listed for sale in a Craigslist advertisement. Buckner’s two co-conspirators were hiding, armed with firearms. Buckner accompanied two of the victims as they took a test drive in the vehicle and made a purchase offer. Buckner agreed, but stated he needed to call his wife about the purchase and walked away. As he walked away, the two co-conspirators appeared and each pointed a firearm at the victims and demanded money.
The victims tried to return to their car, but Buckner’s conspirators shot the two adult victims multiple times. Conspirators took money and personal property (including a purse that contained $500) from the victims then shot one of the victims again, striking him an additional time. Conspirators fled from the area in the Hyundai Sonata, which was found shortly afterward behind an abandoned house. One of the victims was transported to a local hospital for life-threatening injuries from multiple gunshot wounds.
July 16, 2014, Armed Robbery #2
Earlier on the same day, on the afternoon of July 16, 2014, another victim had been contacted by Buckner, who said he wanted to purchase an XBOX One that the victim had listed for sale on Craigslist. The victim arranged to meet Buckner at Ridge Pointe Apartments in Kansas City, Mo. When he arrived, Buckner approached him and asked to see the XBOX. When the victim handed him the XBOX, Buckner’s two co-conspirators appeared and each pointed a firearm at the victim and demanded the XBOX One, XBOX games, and the accessories. They took those items then fled to their vehicle.
July 17, 2014, Arrest
The next day, Kansas City police detectives located Buckner in the area of East US 40 Highway and Sterling Avenue, Kansas City, Mo., and set up surveillance. When Buckner boarded a metro bus, police officers took him into custody. He possessed the phone that was used to contact several victims and wore the Samsung Galaxy watch that had been stolen from the victim of an earlier robbery.
In addition to the two robberies on July 16, 2014, Buckner admitted to his role in three earlier armed robberies.
July 3, 2014, Armed Robbery
On July 3, 2014, another victim was robbed while trying to buy an XBOX from a Craigslist advertisement. The victim met Buckner at Ridge Pointe Apartments after he had agreed to give him $160 and a Samsung Galaxy watch to buy the XBOX. One co-conspirator was in hiding and armed with a firearm while another co-conspirator waited in the getaway vehicle. When Buckner refused to make the exchange, the victim began walking back to his car. Buckner’s co-conspirator appeared, pointed a firearm at him and demanded money. The two men took the watch and the cash then fled.
June 30, 2014, Armed Robbery
One victim responded on June 30, 2014, to purchase a cell phone that was advertised on Craigslist. She decided not to purchase the phone and began to walk away, when Buckner’s co-conspirators pointed firearms at her and demanded money. After she gave the men $100 they demanded her car keys, cellphone and purse. She pressed the panic button on her car keys and when the alarm sounded, all three of the men ran.
June 30, 2014, Armed Robbery #2
Another victim met Buckner later that night on the same date. She had been contacted about purchasing an XBOX One that she posted for sale on Craigslist. When she arrived (with three other persons, one of whom was a minor) at Ridge Pointe Apartments, Buckner showed her that he had cash to make the purchase. As soon as she took out the XBOX, he took it and ran. Buckner’s co-conspirators, armed with handguns, approached and pointed the guns at the victims in the vehicle. They demanded all of their money, purses, and XBOX games and controllers. One of the victims asked for her purse back, and one of the conspirators said, “Get back in the car or I’ll shoot you” and racked the slide on his gun.
Under federal statutes, Buckner is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Matthew P. Wolesky and Jess E. Michaelsen. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Judge Sentences Pittsburgh Heroin Dealer to 8 Years in Federal PrisonRead the Press Release
PITTSBURGH - A local resident has been sentenced in federal court to 8 years (96 months) imprisonment, to be followed by five years of supervised release, on his conviction of violations of federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Natel Blessitt, 39, of Pittsburgh, Pa.
According to information presented to the court, on March 5, 2014, and again on Sept. 23, 2014, Blessitt distributed and possessed with intent to distribute heroin.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the FBI Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police for the investigation that led to the prosecution of Blessitt.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Jackson County Resident Sentenced for Methamphetamine OffenseRead the Press Release
On February 23, 2016, Michael F. Halliday, 34, of Elkville, was sentenced on a methamphetamine offense, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Halliday, who had previously pled guilty to one count of conspiracy to distribute and manufacture methamphetamine, was sentenced to 84 months in federal prison, 3 years’ supervised release, and fined $300.00. Evidence at the plea and sentencing hearings established that Halliday was involved with others in manufacture and distribution of methamphetamine. Halliday cooked methamphetamine with others. Halliday obtained pseudoephedrine and collected pseudoephedrine from others for use in the manufacture of methamphetamine. At sentencing, the judge found that Halliday was responsible for the possession of 167.92 grams of pseudoephedrine. The offense occurred between 2013 and June 2015, in Perry, Jackson, and Randolph Counties. One co-defendant has previously been sentenced for his role in the methamphetamine conspiracy. Five co-defendants have pled guilty and are awaiting sentencing. Four co-defendants have pled not guilty and are awaiting an April 18, 2016, jury trial. As to those co-defendants, remember that they are presumed innocent until proven guilty in court.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Percy Police Department, Steeleville Police Department, Mascoutah Police Department, Illinois State Police Methamphetamine Response Team, DuQuoin Police Department, Pinckneyville Police Department, and Drug Enforcement Administration. The Randolph and Perry County State’s Attorney’s Offices also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Indictment Unsealed Charging One More Defendant in Kidnapping, Murder of Junction WomanRead the Press Release
TOPEKA, KAN. – An indictment unsealed in federal court here Thursday charges one more defendant with kidnapping and killing a Junction City woman, U.S. Attorney Barry Grissom said.
Shantrell D. Woody, 26, Fort Riley, Kan., is charged with one count of kidnapping resulting in death.
Three other defendants charged previously with the same count were:
Larry L. Anderson, 26, who is being held in the Geary County Jail.
Marryssa M. Middleton, 23, who is being held in the Geary County Jail.
Drexel A. Woody, 24, who is being held in the Geary County Jail.
The body of Amanda Clemons, 24, of Junction City, was found in February 2014 in Geary County, Kan.
The indictment alleges that on Feb. 7, 2014, the defendants kidnapped the victim and held her on the Fort Riley military installation. While they were holding her they killed her.
If convicted, they face a maximum penalty of life in federal prison without parole. The Junction City Police Department, the Grandview Plaza Police Department, the Geary County Sheriff’s Office, the Riley County Police Department, the Fort Riley Criminal Investigation Division and the FBI investigated. Assistant U.S. Attorney Jared Maag, Assistant U.S. Attorney Tony Mattivi are prosecuting. Grissom also thanked the Geary County Attorney for his assistance.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Unsealed Charging FLDS Church Leaders with Conspiracy to Divert SNAP BenefitsRead the Press Release
SALT LAKE CITY – A two-count indictment unsealed Tuesday afternoon in U.S. District Court in Salt Lake City charges 11 leaders and members of the Fundamentalist Church of Jesus Christ of Latter-day Saints (FLDS Church) with conspiracy to commit Supplemental Nutrition Assistance Program (SNAP) benefits fraud and conspiracy to commit money laundering. The defendants include leaders of the church.
The indictment alleges church leaders diverted SNAP proceeds from authorized beneficiaries to leaders of the FLDS Church for use by ineligible beneficiaries and for unapproved purposes. A large percentage of FLDS Church members living in the Hildale, Utah – Colorado City, Arizona, community known as Short Creek receive SNAP benefits, amounting to millions of dollars in benefits per year.
Charged in the indictment are Lyle Steed Jeffs, age 56, John Clifton Wayman, age 56, Kimball Dee Barlow, age 51, Winford Johnson Barlow, age 50, Rulon Mormon Barlow, age 45, Ruth Peine Barlow, age 41, and Preston Yates Barlow, age 41, all of Hildale; Seth Steed Jeffs, age 42, of Custer, South Dakota; and Nephi Steed Allred, Hyrum Bygnal Dutson, age 55, and Kristal Meldrum Dutson, age 55, all of Colorado City. Lyle Jeffs is the brother of Warren Jeffs. In the physical absence of Warren Jeffs, Lyle Jeffs handles the daily affairs of the organization, including its financial matters. Another of Warren Jeffs’ brothers, Seth Jeffs, leads a congregation of FLDS members in rural Custer County, South Dakota. Arrest warrants were issued for all defendants charged in the indictment.
“This indictment is not about religion. This indictment is about fraud,” U.S. Attorney John W. Huber said today. “This indictment charges a sophisticated group of individuals operating in the Hildale-Colorado City community who conspired to defraud a program intended to help low-income individuals and families purchase food.”
Washington County Sheriff Cory Pulsipher, who helped initiate the investigation and has officers participating on the FBI’s Public Corruption Task Force, emphasized the role his local investigators played in starting the investigation. “What started as a small investigation quickly grew to a point where it was important to work with federal agencies to build a case to present to a grand jury.” Washington County Attorney Brock R. Belnap, whose office also participated in the investigation, will participate in prosecuting the case as a Special Assistant U.S. Attorney.
Arrest warrants were executed Tuesday morning in Salt Lake City, in the FLDS community encompassing Hildale, Utah and Colorado City, Arizona, and in Custer County, South Dakota. The case is being investigated by the FBI, Washington County Sheriff’s Office, IRS Criminal Investigation, the U.S. Department of Agriculture’s Office of Inspector General, and the Washington County Attorney’s Office. The Arizona Department of Economic Security, the Mohave Sheriff’s Office, the FBI’s Minneapolis and Phoenix Field Offices, and the U.S. Attorney’s Office in South Dakota assisted with the case. Custer County, South Dakota Sheriff Rick Wheeler also assisted with the investigation and arrests Tuesday.
“Today’s indictment is the culmination of the tireless efforts of the FBI Public Corruption Task Force, which includes the IRS-Criminal Investigation, the U.S. Department of Agriculture’s Office of Inspector General, the Washington County Sheriff’s Office and the Washington County Attorney’s Office. The violations included in the indictment are especially egregious since they allege that leaders of the conspiracy directed others to commit crimes, for which only certain people benefited. This type of conduct represents nothing less than pure theft. The FBI and its law enforcement partners will actively pursue those entities or persons who unlawfully manipulate and control government programs for their own gain,” Eric Barnhart, Special Agent in Charge of the FBI’s Salt Lake City Field Office said today.
"IRS Criminal Investigation uses its financial expertise to unravel complex financial transactions and money laundering schemes designed to conceal the true source of funds," stated Acting Special Agent in Charge Aimee Schabilion. "We are committed to working with our federal agency partners in combatting frauds against the government."
Washington County Attorney Brock R. Belnap, who will help prosecute the case, expressed appreciation for the efforts of the many agencies involved in the investigation. "I am grateful for the numerous partners who have worked diligently on this case. It is our shared hope that this action will help innocent families receive the food assistance that they genuinely need while holding people accountable who conspire to divert those resources to illegal purposes."
Special Agent in Charge Lori Chan, Office of Inspector General (OIG) of the U.S. Department of Agriculture (USDA), Western Region, stated, “Protecting the integrity of the Supplemental Nutrition Assistance Program (SNAP) is a major investigative priority for the Office of Inspector General. Vendors who engage in SNAP fraud exploit the program’s needy beneficiaries, and misuse the substantial funding that taxpayers provide. OIG is dedicated to ensuring SNAP funds are used for their intended purpose – feeding individuals and families. We look forward to continuing to work with our law enforcement partners to combat SNAP fraud.”
The U.S. Department of Agriculture’s Food and Nutrition Service operates the SNAP program to provide assistance to low-income individuals and families to purchase food products.
The authority to determine eligibility and to certify individual SNAP recipients who qualify for the program is delegated to individual states. Persons in need of benefits apply with the appropriate state agency. Approved applicants receive an Electronic Benefits Transaction Card (EBT card), similar to a bank debit card, that is linked to a SNAP account. EBT cards have a magnetic strip containing recipient information and the benefit amount. When a recipient presents a SNAP EBT card to a retailer to pay for eligible food items, the retailer debits funds from the recipient’s available SNAP benefits. SNAP benefits apply only to the purchase of eligible food items. Recipients cannot exchange their benefits for non-food items, household goods or cash. Only members of the recipient household may use the program benefits.
The indictment alleges that starting in about 2011, FLDS leaders, including Lyle Jeffs, instituted the “United Order” within the ranks of the Church. Participation in the United Order purports to constitute the highest level of worthiness and spiritual preparedness in the church. Devout FLDS members aspire to eligibility in the United Order. Adherents to the United Order must donate all of their material assets to the FLDS Storehouse, a communal clearinghouse charged with collecting and disbursing commodities to the community. United Order policy also dictates that members must obtain their food and household commodities solely through the FLDS Storehouse, according to the indictment.
The indictment alleges that the defendants engage in a variety of overt acts in furtherance of a conspiracy to defraud the SNAP program by diverting SNAP proceeds from authorized beneficiaries to leaders of the FLDS Church for use by ineligible beneficiaries and for unapproved purposes. Church leaders, including Lyle Jeffs, Seth Jeffs, John Wayman and Kimball Barlow, held meetings in which they disseminated storehouse protocols, according to the indictment. These protocols dictated methods for unlawfully diverting SNAP benefits to the FLDS Storehouse as well as instruction on how to avoid suspicion and detection by the government, according to the indictment.
FLDS members transferred their SNAP benefits to FLDS controlled stores without receiving eligible food products at the time of the transactions. For example, on Oct. 16, 2015, an FLDS member conducted a SNAP transaction for $800 without receiving eligible food products at the time of the transaction. On one occasion, John Wayman collected EBT cards from legitimate beneficiaries, provided the cards to another individual, and directed that person to use the SNAP funds to purchase food and goods for non-eligible persons.
SNAP fraud proceeds also financed ineligible purposes. For example, the indictment alleges that in March 2015, using SNAP fraud proceeds, Kimball Barlow signed a check for $16,978 to Orchid’s Paper Products Company for the purchase of paper products. During the period May 31, 2013, through September 22, 2014, the indictment alleges Ruth Barlow signed five checks totaling $13,561 made payable to John Deere Financial. The SNAP fraud proceeds were used for installment payments on a 2013 John Deere load tractor. SNAP fraud proceeds were also used for 16 checks totaling $30,236 payable to Ford Motor Credit for installment payments on a 2012 Ford F-350 purchased by Winford Barlow about Sept. 29, 2012.
The money laundering count of the indictment alleges the defendants conspired to conceal and disguise the nature, location, source, ownership and control of proceeds of a specified unlawful activity while conducting or attempting to conduct financial transactions. The indictment also seeks a money judgment equal to the value of the proceeds traceable to the alleged criminal offenses.
The potential penalty for conspiracy count is five years in prison. The money laundering count carries a potential penalty of 20 years in prison.
An indictment is not a finding of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.
Lyle Steed Jeffs and John Clifton Wayman were arrested Tuesday morning in Salt Lake City. They are scheduled to make an initial appearance on the charges Wednesday at 10 a.m. in Room 7.1 of the federal courthouse in Salt Lake City.
Seth Steed Jeffs was arrested Tuesday morning in Custer County, South Dakota, and will have an initial appearance in federal court in South Dakota.
Defendants arrested Tuesday in the Hildale – Colorado City area will appear Wednesday at 10 a.m. in federal court in St. George. At this time, Ruth Peine Barlow and Kristal Meldrum Dutson have been taken into custody. (Will update through the day.)
Hugo Man, Woman Sentenced for Firearm Possession and Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MICHAEL DANGELO JOHNSON, age 27, and LACEY SHARELL FREEMAN, age 27, both of Hugo, Oklahoma, were sentenced in federal court.
JOHNSON was sentenced to 60 months imprisonment, followed by 5 years of supervised release for POSSESSION OF FIREARM IN FURTHERANCE OF DRUG TRAFFICKING CRIME, in violation of Title 18, United States Code, Section 924(c).
FREEMAN was sentenced to 32 months imprisonment, followed by 5 years of supervised release for POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
The charges are a result of an investigation by the Choctaw County Sheriff’s Department and the Federal Bureau of Investigation. The defendants were indicted in August, 2015 and pled guilty in September, 2015.
The Indictment alleged that beginning on or about June 30, 2015, in the Eastern District of Oklahoma, LACEY SHARELL FREEMAN, did knowingly and intentionally possess with the intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
It was also alleged that on or about June 30, 2015, within the Eastern District of Oklahoma, MICHAEL DANGELO JOHNSON, did knowingly possess a firearm in furtherance of a drug trafficking crime.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendants will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which they will serve their nonparoleable sentences.
Assistant United States Attorney Dean Burris represented the United States.
Former U.S. Navy Contractor Pleads Guilty to False Statement ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Navy Contractor has pleaded guilty to submitting a False Statement to the government in connection with $4.4 million contract to renovate warehouses at the Naval Support Facility in Mechanicsburg, PA .
According to United States Attorney Peter Smith, Andrew Persuad, age 43, of Mt Holly Springs, Pennsylvania, was indicted in October 2015. Persuad pleaded guilty to one count of false statements before Senior U.S. District Court Judge Sylvia Rambo.
The Indictment alleged that Persaud was the President and Corporate Director of Persuad Companies, Inc., a Virginia and Maryland based construction company that entered into a $4.4 million contract in 2011 to renovate warehouses at the Naval Support Activity (NSA) facility in Mechanicsburg.
Persuad hired approximately 17 sub-contractors to work on the project which began in May of 2012. In June and July of 2012 Persuad submitted invoices to the Navy for progress payments. In the documents Persuad attached signed Certifications stating that all of his subcontractors had been paid for their work. Relying on Persuad’s representations, the Navy paid Persaud $1,206,470 between June and August of 2012.
However, by September of 2012 most of the subcontractors had walked off the job site and the Navy terminated Persaud’s contract after it learned, contrary to Persuad’s Certifications, that none of the subcontractors had received any payment for their work on the project.
The Navy had required Persuad to purchase a materials/labor bond prior to his first contract draw, the premium for which cost Persuad $53,539. As a result, the subcontractors filed claims and eventually received payments from the bond carrier for their work totaling $1,281,753.
Under the terms of a plea agreement with the government Persaud has agreed that the loss suffered by the victims in the case is $1,206,470. Persaud has also agreed to make restitution in this amount and has agreed to forfeit the sum of $1,206,470.
The offense is punishable by a maximum of 5 years imprisonment and a $250,000 fine. No date has been set as yet for sentencing.
The case was investigated by the Inspector General’s Offices of the U.S. Navy and Department of Defense, and is being prosecuted by Assistant U.S. Attorney Kim Douglas Daniel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Software Company Employee Sentenced to 30 Months in Prison for Sending Damaging Computer Code to Company ServersRead the Press Release
A Union, New Jersey, man was sentenced today to 30 months in prison following his guilty plea to one count of causing the transmission of computer code and, as a result, damaging computers and causing at least $5,000 in losses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina and Special Agent in Charge John A. Strong of the FBI in North Carolina.
Nikhil Nilesh Shah, 33, was sentenced by U.S. District Judge Louise W. Flanagan of the Eastern District of North Carolina, who also ordered Shah to pay $324,462 in restitution.
According to the plea agreement, from 2007 to 2012, Shah was an information technology manager at Smart Online Inc., a company located in Durham, North Carolina, that developed platforms for the creation of mobile applications. Shah admitted that in March 2012, he left Smart Online to work for another technology company, and on June 28, 2012, he sent malicious computer code to Smart Online’s computer servers in Durham and Raleigh, North Carolina, deleting much of Smart Online’s intellectual property.
The FBI’s Raleigh Office investigated the case. Senior Trial Attorney Richard D. Green of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Hulbig of the Eastern District of North Carolina prosecuted the case.
Former Software Company Employee Sentenced to 30 Months in Prison for Sending Damaging Computer Code to Company ServersRead the Press Release
WASHINGTON – A Union, New Jersey, man was sentenced today to 30 months in prison for one count of causing the transmission of computer code and, as a result, damaging computers and causing at least $5,000 in losses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina and Special Agent in Charge John A. Strong of the FBI in North Carolina.
Nikhil Nilesh Shah, 33, was sentenced by U.S. District Judge Louise W. Flanagan of the Eastern District of North Carolina, who also ordered Shah to pay $324,462 in restitution.
According to the plea agreement, from 2007 to 2012, Shah was an information technology manager at Smart Online Inc., a company located in Durham, North Carolina, that developed platforms for the creation of mobile applications. Shah admitted that in March 2012, he left Smart Online to work for another technology company, and on June 28, 2012, he sent malicious computer code to Smart Online’s computer servers in Durham and Raleigh, North Carolina, deleting much of Smart Online’s intellectual property.
The FBI’s Raleigh Office investigated the case. Senior Trial Attorney Richard D. Green of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Hulbig of the Eastern District of North Carolina are prosecting the case.
Former Residents of Las Vegas, N.M., Indicted on Federal Spice Trafficking and Money Laundering ChargesRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, announced today that two former residents of Las Vegas, N.M., who recently relocated to Kingman, Ariz., have been indicted on drug trafficking and money laundering charges.
Ray L. Smith, 50, and Tamara Phillips, 47, are charged in a four-count indictment filed in the U.S. District Court for the District of New Mexico on Feb. 9, 2016. The couple was arrested in Kingman on Feb. 18, 2016, and made their initial appearances in federal court in Flagstaff, Ariz., on Feb. 19, 2016. During the judicial proceedings in Arizona, the court ordered the U.S. Marshals Service to transfer Smith and Phillips to New Mexico to face the charges against them. Smith and Phillips remain in federal custody pending detention hearings that will be scheduled after they return to New Mexico.
The indictment charges Smith and Phillips with participating in a conspiracy to distribute synthetic cannabinoids, more commonly known as “spice,” maintaining premises for the purpose of distributing spice, and participating in a conspiracy to launder drug proceeds. The indictment alleges that between Feb. 2010 and Feb. 2016, Smith and Phillips participated in a conspiracy to distribute spice from three businesses in New Mexico and Arizona that are owned by Smith and jointly managed by Smith and Phillips
According to the indictment, Smith and Phillips used the three businesses, “Smokin Body Jewelry” stores located in Las Vegas, Raton and Kingman, to sell spice. The indictment alleges that employees at the three stores sold spice to customers while acting at the direction of Smith and Phillips. The indictment includes information about two alleged drug transactions that occurred on Sept. 29, 2015: the first involved the sale of $1,687.46 of spice by an employee at the Raton store, and the second involved the sale of $1,556.91 of spice by an employee at the Las Vegas store.
The indictment includes forfeiture allegations which seek to forfeit property and other assets that constitute the proceeds of the drug trafficking offenses charged in the indictment or were used to facilitate those crimes including eight parcels of real property located in New Mexico and Arizona, funds in 18 bank accounts, a safety deposit box, and three vehicles.
The indictment is the result of a year-long investigation led by the DEA’s offices in Albuquerque, N.M., and Flagstaff, Lake Havasu and Yuma, Ariz., with assistance from the Raton Police Department and the Mohave Area General Narcotics Enforcement Team. During the course of the investigation, approximately one pound of spice was allegedly purchased from businesses operated by Smith and Phillips and approximately 22 kilograms (48 pounds) of spice was seized from a storage facility allegedly rented by Smith and Phillips.
During law enforcement operations executed on Feb. 18, 2016, law enforcement agents and officers seized 18 bank accounts, a safety deposit box and the eight parcels of real property identified in the indictment. They also executed six search warrants, including search warrants for each of the three stores, a second commercial property in Kingman, and two residences in Kingman. The estimated aggregate value of the real property, currency and other assets seized on Feb. 18, 2016, exceeds $2.3 million, including approximately $220,000 in cash. The agents and officers also seized approximately 11 kilograms (24.2 pounds) of precursor chemicals allegedly shipped from China in the primary residence of Smith and Phillips. In addition, approximately 25 kilograms (55 pounds) of suspected spice with a street value of $250,000 was seized from the stores and the residence of Smith and Phillips.
If convicted on the charges in the indictment, Smith and Phillips each face a statutory maximum penalty of 20 years in prison. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the DEA’s offices in Albuquerque, N.M., and Flagstaff, Lake Havasu and Yuma, Ariz., with assistance from the Raton Police Department and the Mohave Area General Narcotics Enforcement Team. Assistant U.S. Attorney Shaheen P. Torgoley is prosecuting the case.
The synthetic cannabinoids charged in the indictment are commonly referred to as synthetic marijuana or “spice.” According to the DEA, over the past several years, there has been a growing use of synthetic cannabinoids. Smoke-able herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular because they are easily available and, in many cases, more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These substances, however, have not been approved by the Food and Drug Administration for human consumption, and there is no oversight of the manufacturing process. Synthetic cannabinoids often are labeled as incense to mask their intended purpose.
Smith Phillips Indictment
Former Port St. Lucie Police Officer Pled Guilty to Child ExploitationRead the Press Release
A former police officer with the Port St. Lucie Police Department pled guilty yesterday to multiple federal child exploitation charges before United States District Court Judge Robin L. Rosenberg in Fort Pierce, Florida.
Wifredo A. Ferrer, United States 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, and John A. Bolduc, Chief, Port St. Lucie Police Department, made the announcement.
Michael Edwin Harding, 28, of Port St. Lucie, pleaded guilty to three counts of distributing material involving sexual exploitation of minors, in violation of Title 18, United States Code, Section 2252(a)(2), possession of material involving sexual exploitation of minors, in violation of Title 18, United States Code, Section 2252(a)(4)(B), attempt to coerce and entice a minor to engage in sexual activity, in violation of Title 18, United States Code, Section 2422(b), and producing child pornography, in violation of Title 18, United States Code, Section 2251(a)(e). Harding is facing a 5 year mandatory minimum term of imprisonment and a maximum of 20 years’ imprisonment, for each count of distribution of child pornography; a maximum of 20 years’ imprisonment for possessing child pornography; a mandatory minimum of 10 years’ imprisonment and a potential life sentence for the attempted enticement of a minor child to engage in sexual activity; and a 15 year mandatory minimum sentence of imprisonment and a maximum term of 30 years’ imprisonment for producing child pornography. In addition, Harding faces a lifetime term of supervised release and will be required to register as a sex offender.
According to filed documents and statements made in court, Harding distributed videos and still images involving the sexual exploitation of minors on three separate dates. Between July 23, 2015, and August 4, 2015, Michael Harding posted multiple images and videos to a chat room on a popular social media application. The still images and videos depicted minor children engaging in sexually explicit acts. The images posted to the chat room were discovered during a forensic examination of a cell phone owned by Harding.
During the execution of a search warrant at Harding’s house, agents with HSI located electronic devices and thumb drives containing hundreds of videos and still images depicting the sexual exploitation of minors. A large number of the images and videos depicted prepubescent minors engaging in sexual acts with adults.
Additionally, Harding attempted to coerce and entice a minor to engage in sexual activity over the internet. Chat messages recovered from Harding’s phone memorialized a conversation between the defendant and another individual, wherein they claimed to have custody of minor children whom they offered to exchange for their own sexual gratification.
Harding also produced child pornography by using his cell phone to create a video depicting his sexual contact with a child under the age of 12. A thumbnail image from the video was located on Harding’s cell phone during a computer forensic examination.
Harding is scheduled to be sentenced on May 16, 2016, by U.S. District Court Judge Robin L. Rosenberg in Fort Pierce, Florida.
This case is part of Operation Predator, an international law enforcement initiative, led by ICE-HSI, to combat the sexual exploitation of children. Through this collaborative effort, law enforcement strives to protect children from sexual predators, including individuals who travel overseas in order to engage in sexual conduct with minors, individuals who possess, trade and produce child pornography, criminal alien sex offenders, and child sex traffickers. Anyone with information about suspected child exploitation is encouraged to call 1‑866‑872-4973. For additional information regarding the initiative and resources, visit www.ice.gov.
Mr. Ferrer commended ICE-HSI for their investigative efforts and the Port St. Lucie Police Department for their assistance with this investigation. The case is being prosecuted by Assistant United States Attorneys Daniel E. Funk and Russell R. Killinger.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Firefighter Sentenced to Five Years in Prison for Wildland Arson Fire on Federal LandRead the Press Release
SACRAMENTO, Calif. — Benjamin Cunha, 33, of Placerville, was sentenced today to five years in prison for arson, United States Attorney Benjamin B. Wagner announced. In addition, United States District Judge John A. Mendez ordered Cunha to pay $246,862 in restitution to Cal Fire.
According to court documents, Cunha, a seasonal CAL FIRE firefighter from 2001 to 2003, admitted to setting at least 30 wildland fires during the summers of 2006 and 2007. Two of these fires burned onto federal land. Cunha indicated that his motivation for setting the fires was to overcome boredom, to earn overtime pay for fighting the fires, and to impress his peers.
“As he admitted in his plea agreement, this defendant set a multitude of fires with a callous disregard for the danger to life and property that he was inflicting,” said U.S. Attorney Wagner. “Today’s sentence is a just result that takes a serial arsonist off the streets.”
“Benjamin Cunha set over 30 fires in El Dorado and Amador Counties. ATF worked with our local partners and utilized several resources to perfect an investigation for federal prosecution,” said Special Agent in Charge Jill A. Snyder. “Cunha had no consideration for CAL FIRE fighters’ safety when he set the fires, placing them in grave danger during the fire suppression efforts.”
On October 6, 2015, Cunha pleaded guilty to one count of arson for the July 6, 2007, Mine Fire, a vegetation fire that burned approximately 80 acres including federally owned land. Cunha admitted to using a distinctive time-delay incendiary device, which he had also used to start many of his other fires.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from CAL FIRE. Assistant United States Attorneys William S. Wong and Audrey B. Hemesath prosecuted the case.
Former Employee of Sporting Goods Distributor Convicted of Embezzling over $300,000 from Orange County CompanyRead the Press Release
SANTA ANA, California – A former office manager for an independent sporting goods distributor was found guilty this afternoon of three counts of wire fraud for using company checks and credit cards to embezzle more than $300,000 from her Los Alamitos-based employer.
Juliana James England, 60, of Cedar Rapids, Iowa, was found guilty of the three felony counts for embezzling money from her former employer, Callan Western Sales Company (CWS).
The evidence at trial showed that England charged company credit cards and wrote company checks to herself to obtain the company’s funds. As part of her scheme, she altered company records and created false bank stubs to give to the company’s accountant.
England was hired by CWS in 2000 to be a part-time secretary and office manager in charge of office administration, which including preparing checks for the signature of Michael Callan, the founder of the company. England was also in charge of maintaining the company’s check ledger, coding the payments, and providing monthly bank statements to the company’s accountant.
From March 2003 to July 2007, England wrote at least 55 checks payable to either herself or her creditors totaling more than $33,000. To cover her tracks, England wrote false notations on the check stubs to indicate payment to a legitimate company vendor. After using these checks for her personal use, she altered the company’s bank statements and provided these altered statements to the CPA.
England also used company credit cards for unauthorized expenses which totaled nearly $280,000. She used CWS Visa and American Express credit cards for personal expenses and made unauthorized online payments from the CWS bank account to these credits cards in an attempt to conceal the unauthorized purchases.
“Workers who steal from their employers can face consequences far beyond mere termination,” said United States Attorney Eileen M. Decker. “Embezzlement is a serious criminal offense. The defendant’s conduct in this case was egregious in that she sought to conceal her crimes by altering business documents and bank records. In the end, those efforts became compelling evidence of the embezzlement.”
England was ordered to surrender herself to the United States Marshals Service on March 1. England is scheduled to be sentenced by United States District Judge James V. Selna on June 20, at which time she will face a statutory maximum penalty of 60 years in federal prison.
England is also facing charges in the Eastern District of Arkansas for making false statements to the Social Security Administration to obtain disability benefits.
This case was the product of an investigation by Federal Bureau of Investigation and the Los Alamitos Police Department.
Former Chairman of International Credit Union Sentenced to 12 Years in Prison for Wire FraudRead the Press Release
GAINESVILLE, FLORIDA – Samuel J. Cusumano, 66, of Orlando, Florida, was sentenced late yesterday to 12 years in prison and ordered to pay $7.8 million in restitution for wire fraud in connection with his fraudulent solicitation from investors of the Swedish-registered Storehouse Credit Union. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
During his guilty plea on June 24, 2015, Cusumano admitted that, between 2007 and 2009, as the chairman of the board of Storehouse, he promoted the international credit union as a high yield investment opportunity through intentionally misleading presentations and materials. Cusumano fraudulently induced investors to transfer monies to investment accounts under Cusumano’s control by misrepresenting the rates of return being generated by the business. He falsely claimed that Storehouse used professional currency traders when, in fact, Cusumano personally executed all trades from his home, investing primarily in the Foreign Currency Exchange Market. Although the business was actually losing money, Cusumano created fraudulent financial statements to convince investors that Storehouse was reaching or exceeding the high rates of return that Cusumano had promised them. When investors discovered that they were unable to withdraw their funds due to trading losses, a financial review was conducted. The review revealed that investor funds had been depleted, that earnings had been overstated, and that Cusumano had used a large portion of the investors’ funds to pay personal expenses. The 347 victims of the scheme resided in the United States, including in the Northern District of Florida, as well as Canada, Great Britain, and Australia.
The case resulted from an investigation by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the Florida Office of Financial Regulation. It was prosecuted by Assistant United States Attorney Gregory P. McMahon.
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]Former California Attorney Sentenced to 60 Months for His Role in International Investment Fraud SchemeRead the Press Release
A Las Vegas man was sentenced today to 60 months in prison for his role in an investment fraud scheme that promoted fraudulent investment opportunities and caused more than $5 million in losses to investors.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Laura A. Bucheit of the FBI’s Las Vegas Field Office made the announcement.
Joseph Micelli, 62, was sentenced by U.S. District Judge Kent J. Dawson of the District of Nevada, who also ordered Micelli to pay $5.65 million in restitution and to forfeit $505,220 in fraudulent proceeds.
As part of his plea, Micelli admitted that he conspired with others in the United States and Switzerland to promote investments and loan instruments that he knew to be fraudulent. The conspirators told victims that, for an up-front payment, a Swiss company known as the Malom Group A.G. would provide access to lucrative investment opportunities and substantial cash loans. In connection with his plea, Micelli admitted that he held himself out to investors as an attorney, when in fact he had lost his license to practice law. In addition, as part of an effort to defraud an investor who held an equity stake in a corporation that had filed for bankruptcy, Micelli submitted a sworn affidavit to the U.S. Bankruptcy Court for the District of New Hampshire, in which he made false statements about the Malom Group’s ability to provide financing to the debtors.
Five other defendants have been charged in the case, two of whom were convicted at trial in December, two of whom are at large in Switzerland and one of whom is awaiting extradition from Canada.
The FBI’s Las Vegas Field Office investigated this case. Assistant Chief Brian R. Young and Trial Attorneys Melissa Aoyagi and Anna G. Kaminska of the Criminal Division’s Fraud Section are prosecuting this case with assistance from the Criminal Division’s Office of International Affairs and the U.S. Attorney’s Office for the District of Nevada. The U.S. Securities and Exchange Commission’s Enforcement Division, which referred the matter to the department and is conducting a parallel civil enforcement investigation, also provided valuable assistance.
Today’s conviction 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 is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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. For more information on the task force, visit www.stopfraud.gov.
Former Aide at a Prince George’s County Elementary School Facing Federal and State Charges Related to Sexual Abuse of Multiple ChildrenRead the Press Release
Greenbelt, Maryland – Deonte Carraway, age 22, of Glenarden, Maryland, was charged by federal criminal complaint today with eight counts of producing child pornography, involving six minor victims ranging in age from nine to 11 years old. An indictment was also returned today in Prince George’s County Circuit Court charging Carraway with child sexual abuse; second degree sex offense; attempted second degree sex offense; third degree sex offense; fourth degree sex offense; and second degree assault. Carraway was a “Dedicated Assistant” for Judge Sylvania Woods Elementary School in Prince George’s County.
The investigation is ongoing and investigators are asking anyone with information about possible victims or details about Mr. Carraway to call 1-800-CALL-FBI (1-800-225-5324).
The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Prince George’s County State’s Attorney Angela D. Alsobrooks; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Hank Stawinski of the Prince George’s County Police Department.
“Many criminals take advantage of anonymous internet messaging services to transmit child pornography,” said U.S. Attorney Rod J. Rosenstein. “One alert relative checked a child’s smartphone, found a naked photo and called the police. That call may have prevented more children from being abused.”
“Today’s indictment is for one victim, but we will continue to work with our law enforcement partners to ensure that Mr. Carraway is held accountable for his actions, said Prince George’s County State’s Attorney Angela D. Alsobrooks. “It is my hope that we will be able to do this with as minimal impact as possible to the children so that we can help them and their families begin the healing process from these unspeakable incidents.”
“We are asking the public to continue coming forward in this case because there could be additional victims out there. We need people to call 1800-CALL-FBI. No matter how insignificant you think your information may be, please call,” said Kevin Perkins, Special Agent in Charge, FBI- Maryland. “Parents and primary caregivers are the first and most important line of defense against such terrible crimes. You know your child better than anyone else. Continue to be part of their lives and know who else is.”
“The manpower devoted to this case is on par with some of the most complex cases this police department has ever worked. Investigators have already spent more than 3,000 hours talking with victims, witnesses and family members and examining evidence. The ultimate goal is to ensure justice is served for each and every affected child and his or her loved ones,” said Chief Hank Stawinski of the Prince George’s County Police Department.
The affidavit filed in support of the federal criminal complaint alleges that from October 11, 2015 through January 8, 2016, on at least eight separate occasions Carraway coerced and persuaded multiple children to engage in sexually explicit conduct in order to produce videos of that conduct. Carraway met several of the victims at the school where he worked and other victims reported that Carraway recruited them from his choir group.
According to the affidavit, Prince George’s County Police arrested Carraway on February 4, 2016, after the family member of one of Carraway’s victims found a sexually explicit photo the victim had sent to Carraway using the Kik messenger application on his phone. Kik lets users send text, pictures, and videos within the Kik app. Kik users are identified by usernames rather than phone numbers. According to the affidavit, Carraway also used Kik to communicate with other victims. On February 11, 2016, a federal search warrant was signed authorizing a search of Carraway’s cellular phones and other digital items. A subsequent forensic analysis of one of Carraway’s cellular phones revealed approximately 38 videos depicting children engaged in sexually explicit conduct, including the videos that are the basis of these federal charges. The videos were taken using Carraway’s cell phone and were recorded at the homes of some of the victims and in the basement of a residence. The videos include Carraway engaging in sexual activity with victims, as well as directing the victims to engage in sexually explicit conduct.
According to the affidavit, law enforcement interviewed the victims who reported that Carraway engaged in, and directed other instances of sexually explicit conduct involving the victims, some of which Carraway allegedly videotaped, including at the school where he worked.
Carraway faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison followed by up to lifetime of supervised release for each of the eight counts of production of child pornography. No court appearance has been scheduled in U.S. District Court in Greenbelt. Carraway remains detained on the related state charges.
An indictment or criminal complaint is not a finding of guilt. An individual charged by indictment or criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
The case is being investigated by the FBI Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat sex crimes involving children, made up of members from ten state and federal law enforcement agencies.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein and Prince George’s County State’s Attorney Angela D. Alsobrooks commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Daniel C. Gardner and Kristi N. O’Malley, who are prosecuting the federal case.
Final Defendant Sentenced for Theft and Trafficking of 30 FirearmsRead the Press Release
RICHMOND, Va. – Jonathan Xavier Thorne, 21, of Richmond, was sentenced today to 84 months in prison for his role in the theft of firearms from a federally licensed firearms dealer. Thorne was also sentenced to three years of supervised release and ordered to pay $2500 in restitution.
Thorne pleaded guilty on Sept. 9, 2015. According to court documents, on May 22, 2015, Thorne, along with his brother, Jerell Markes Broadie, 23, and co-conspirators Meleke Daquan Osborne, 22, and William Grieger, 23, made plans to break into the American Family Pawn shop located in Powhatan. During the early morning hours of May 25, 2015, Thorne, Broadie and Osborne traveled to the American Family Pawn Shop and broke in to the store through a back window and smashed several glass cases, stealing 31 firearms, 11 of which were high capacity and capable of holding more than 15 rounds of ammunition. While leaving the store one of the men dropped a firearm in the parking lot before making their getaway.
Of the 30 firearms the men stole, Thorne and Broadie each kept one, sold 11 to Grieger, and sold the remaining 17 to an alleged family member located in the Tidewater area. Grieger kept one of his 11 firearms, and sold the remaining 10 to an alleged gang member from New York. All of the firearms sold within a matter of hours after the robbery.
Grieger was sentenced on Nov. 3, 2015, to 78 months in prison. Osborne was sentenced on Dec. 1, 2015, to 70 months in prison. Broadie was sentenced on Jan. 12, 2016, to 84 months in prison.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge James R. Spencer. Assistant U.S. Attorney Angela Mastandrea-Miller prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-115 and 3:15cr116.
Elkton Man Sentenced on Methamphetamine ChargesRead the Press Release
HARRISONBURG, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentencing of an Elkton man who was previously convicted of distributing methamphetamine.
Mark Anthony Rome Elliott, 38, of Elkton, Va., pled guilty in August 2015 to one count of possessing with the intent to distribute 500 grams or more of a substance containing methamphetamine. Today in the United States District Court for the Western District of Virginia in Harrisonburg, Elliott was sentenced to 168 months of federal incarceration, a sentence agreed to as part of his plea agreement.
“Methamphetamine continues to be a problem throughout the Western District of Virginia. The United States Attorney’s Office, along with our partners in law enforcement, will continue to prosecute those individuals who distribute this dangerous substance,” United States Attorney John P. Fishwick Jr. said today.
The investigation of the case was conducted by the Federal Bureau of Investigation, the RUSH Task Force and the Northwest Virginia Regional Drug Task Force. Assistant United States Attorney Grayson Hoffman prosecuted the case for the United States.
Easthampton Man Pleads Guilty to Federal Cocaine and Marijuana ChargesRead the Press Release
BOSTON – An Easthampton man pleaded guilty today in U.S. District Court in Worcester in connection with distributing cocaine and marijuana.
David Dulchinos, 50, pleaded guilty to one count each of distribution of cocaine and distribution of marijuana. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for May 24, 2016.
On Feb. 7, 2014, Dulchinos distributed controlled substances to an individual cooperating with federal agents. The transaction was captured on video and audio recordings. Dulchinos pleaded guilty to distributing nearly 400 grams of cocaine and 27 grams of marijuana in connection with that transaction.
The charge of distribution of cocaine provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. The charge of distribution of marijuana provides for a sentence of no greater than five 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; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Easthampton Police Chief Bruce McMahon, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Eagle Butte Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, Opposing and Impeding a Federal Officer.
Norman Blue Coat, age 32, was indicted on February 17, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 19, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about November 11, 2015, at Eagle Butte, Blue Coat, Jr., forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with an officer from the Cheyenne River Sioux Tribe, resulting in the infliction of bodily injury to the officer. The alleged incident happened while the officer was employed with the Cheyenne River Sioux Tribe, assigned to perform law enforcement functions, and was engaged in his official duties.
The charge is merely an accusation and Blue Coat, Jr., is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Blue Coat, Jr., was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Dupree Man Charged with Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that a Dupree, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Orville Belt, Jr., age 41, was indicted on February 17, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 19, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about January 1, 2016, at Dupree, Belt unlawfully assaulted the victim with shod feet, resulting in serious bodily injury to the victim.
The charges are merely an accusation and Belt is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Belt was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Defendants Convicted of Distributing Thousands of Pounds of Marijuana Ordered to Forfeit California Grow Farm and FirearmsRead the Press Release
United States Attorney Andrew M. Luger today announced that ALEXANDER EDWARD HEYING, 33, who was sentenced last month to serve 140 months in prison after being convicted in after trial November 2014 of conspiracy to distribute several tons of marijuana and conspiracy to commit money laundering, was ordered on February 23, 2016, to forfeit his Ukiah, Calif., farm on which he grew marijuana, a residence in Minnetonka, Minn., a truck and two guns. Also convicted in this conspiracy were PETER GREGORY HEYING, 29, and ACACIA LAUREN RUIZ, 35. PETER HEYING and RUIZ pleaded guilty in October 2014 to the charges against them and were sentenced on January 22, 2016.
As proven at trial and according to the defendants’ guilty pleas, between at least 2003 and October 2012, the HEYING brothers and RUIZ conspired to distribute marijuana in Minnesota. During the course of the conspiracy, the co-conspirators were responsible for trafficking several tons of marijuana into Minnesota, primarily from large-scale grow farms in California.
As a result of the conspiracy and money laundering convictions, the United States moved to forfeit property because the property facilitated the conspiracy, including the grow farm from which marijuana was harvested and sold.
These cases resulted from an investigation conducted by the Drug Enforcement Administration, Criminal Investigation Division of the IRS, Hennepin County Sheriff’s Office, West Metro Drug Task Force, Southwest Hennepin Drug Task Force, West Hennepin Public Safety, Wisconsin Department of Justice, Division of Criminal Investigation, Medina Police Department and the Orono Police Department.
This case was prosecuted by Assistant U.S. Attorneys LeeAnn Bell, Surya Saxena and Craig Baune.
Defendant Information:
ALEXANDER EDWARD HEYING, 33
Minnetonka, Minn.Convicted:
- Conspiracy to distribute marijuana, 1 count
- Conspiracy to commit money laundering, 1 count
Sentenced:
- 140 months in prison
PETER GREGORY HEYING, 29
Minnetonka, Minn.Convicted:
- Conspiracy to distribute marijuana, 1 count
- Conspiracy to commit money laundering, 1 count
Sentenced:
- Three years in prison
ACACIA LAUREN RUIZ, 35
Ukiah, Calif.Convicted:
- Conspiracy to distribute marijuana, 1 count
- Conspiracy to commit money laundering, 1 count
Sentenced:
- Time served
Contractor Sentenced to 19 Months in Prison for Attempting to Bribe West New York, New Jersey, Official to Eliminate More Than $8.7 Million in Fire Code ViolationsRead the Press Release
NEWARK, N.J. – A West New York, New Jersey, man was sentenced today to 19 months in prison for paying cash bribes to a West New York fire official to eliminate millions of dollars in outstanding fines and penalties on buildings with fire code violations, U.S. Attorney Paul J. Fishman announced.
Victor Coca, 50, previously pleaded guilty before U.S. District Judge Esther Salas to Count One and Count Two of an indictment charging him with paying bribes to a local government employee. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Coca was the owner and president of a general contracting company in West New York. Two buildings in West New York had outstanding fines for fire code violations. The first building, located on Bergenline Avenue and owned by a friend of his, had approximately $14,500 in fines and penalties for outstanding fire code violations. Coca agreed to pay a fire official for the West New York Bureau of Fire Prevention, a witness who was voluntarily cooperating with federal authorities, a $2,000 cash bribe to eliminate the outstanding fire code fines and penalties. On March 27, 2014, Coca handed the fire official a $2,000 cash bribe.
The second building, located on Hudson Avenue and partly-owned by Coca, had more than $8.7 million in fines and penalties for outstanding fire code violations. Coca paid a $5,000 cash bribe to the fire official in return for the fire official purportedly reducing the amount due to the West New York Bureau of Fire Prevention to the initial fine amount of $5,000.
In addition to the prison term, Judge Salas sentenced Coca to two years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Andrew Campi in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Conn. Resident Admits to Travelling to RI to Engage in Illicit Sexual ConductRead the Press Release
PROVIDENCE, R.I. – Joshua T. Robinson, 36, of Colchester, Conn., pleaded guilty in U.S. District Court in Providence, RI, to interstate travel to engage in illicit sexual conduct, admitting to the court that he traveled from his home to Cranston, RI, expecting to meet with and engage in sexual relations with a 14-year old girl.
Robinson’s guilty plea on February 18, 2016, is announced by United States Attorney Peter F. Neronha and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
According to court documents and information presented to the court, beginning in late August 2015, Robinson engaged in a series of emails with a person he believed to be a 14-year old girl in Rhode Island. Over the next several days, with each additional email, Robinson’s comments to the teenager became increasingly sexually explicit. He requested and arranged to meet with the teenager to engage in sexual activity.
However, the person purporting in the emails to be the 14-year old girl was, in fact, members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force. On September 4, 2015, Robinson was arrested in Cranston, RI, by members of the ICAC Task Force when he arrived at a location where he believed he was going to meet with the teenager.
Robinson is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on May 12, 2016. Travel with intent to engage in illicit sexual conduct is punishable by statutory penalties of up to 30 years in federal prison and lifetime supervised release.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by federal, state and local law enforcement agents and officers assigned to the Rhode Island State Police ICAC Task Force.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Carl Junction Woman Pleads Guilty to Child Porn after Posting Images on Victim's FacebookRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Carl Junction, Mo., woman pleaded guilty in federal court today to possessing child pornography after she posted nude photos of a 15-year-old victim on the victim’s Facebook page.
Michelle Renee McCoy, 49, of Carl Junction, pleaded guilty before U.S. Magistrate Judge David P. Rush to possessing child pornography.
According to today’s plea agreement, McCoy took an iPhone 5C from the 15-year-old victim after an argument on March 28, 2014. The victim was contacted by her cousin on May 14, 2014, to let her know that there were nude pictures of her on her Facebook page. Multiple friends and family members called the victim regarding the nude photos they saw on her Facebook page. The images, which portrayed the victim in a variety of sexually explicit poses, had been taken when she was 14 or 15 and saved on her iPhone.
The victim was unable to log into her account as the password had been changed. The victim was able to shut down the account after resetting her password.
Carl Junction police officers contacted McCoy, who admitted she had the victim’s iPhone but refused to give the phone to law enforcement. Officers later received a search warrant for McCoy’s residence and seized an Apple MacBook Pro laptop, an Apple iPad and three Apple iPhones, including the victim’s phone.
Investigators learned that, two weeks before taking away the victim’s iPhone, McCoy had asked to see her phone so she could run an update on it. McCoy discovered the nude photos of the victim on the victim’s phone and sent them to her own iPhone 5S, where she saved them to her camera roll. Investigators found the child pornography images on McCoy’s iPhone and on McCoy’s MacBook Pro laptop. They also discovered that the victim’s phone had been backed up to McCoy’s laptop less than 15 minutes after police officers had been at McCoy’s residence and asked her for the phone.
McCoy’s daughter told law enforcement officers that McCoy had shown her the nude pictures of the victim that were on her cell phone. She said McCoy was showing the pictures at a family gathering. McCoy also told her daughter that she had the pictures on her laptop. After the photos were posted on Facebook, McCoy told her daughter that she had posted the pictures and changed the victim’s Facebook password so she would not be able to take them down.
Under federal statutes, McCoy is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
McCoy must forfeit to the government the Apple iPhone and Apple MacBook Pro laptop that were used to commit the offense.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Republic, Mo., Police Department, the Carl Junction, Mo., Police Department, and the Southwest Missouri Cybercrime Task Force.
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."
Canfield physician charged for withholding taxes from employees but not paying the money over to governmentRead the Press Release
A physician from Canfield was charged with failing to pay over Social Security, Medicare and employment taxes collected from his employees, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Guy Ficco, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office.
Nicholas M. Garritano, 54, is charged with a willful failure to pay over taxes.
"This defendant took out the taxes from his employees but kept the money for himself," Rendon said. "He victimized his workers and those who paid their fair share of taxes."
"Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS," Ficco said. "The failure to pay over withheld taxes is a serious offense and IRS Criminal Investigation vigorously pursues anyone who collects taxes and fails to timely remit those taxes."
The indictment alleges that during 11 quarters spanning from 2009 through 2012, Garritano was president and sole shareholder of a corporation run by the name “Dr. N.M. Garritano, Inc.,” located in Canfield. Garritano was responsible for the corporation’s business and financial operations. Garritano caused the corporation to pay taxable wages and salaries to its employees, from which federal income and FICA taxes were withheld, according to the indictment.
Garritano filed quarterly forms with the Internal Revenue Service on behalf of the corporation relating to the employment taxes. Although the corporation withheld substantial employment taxes from the wages of its employees for each quarter, the defendant failed to pay over the full amount of the withheld taxes to the IRS, according to the indictment.
The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall following an investigation by IRS-CI.
If convicted, the defendant's sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Butler County Man Sentenced to 7 Years in Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH - A former resident of Butler County, Pennsylvania, has been sentenced in federal court to 84 months imprisonment, to be followed by ten years of supervised release, on his conviction of possession of child pornography, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence yesterday on Edward Wesley Bayne, III, 47, formerly of Seven Fields, Pa.
According to information presented to the court Bayne, III, the former Mayor of Seven Fields, Pennsylvania, on Jan. 17, 2013, unlawfully possessed in computer graphics files thousands of photographs and videos depicting minors engaged in sexually explicit conduct that he had obtained via Internet file-sharing networks.
Prior to imposing the sentence, Judge Cohill stated that he factored in the serious nature of Bayne's offense, his lack of criminal history and his personal characteristics, and harm perpetrated against the hundreds of child victims depicted in the videos and photographs. In addition to the terms of imprisonment and supervised release, the court ordered Bayne to pay $12,000 in restitution, to be divided among four child victims who had formally requested restitution in the case.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Bayne, III.
Buffalo Man Sentenced for Bank RobberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Isaiah Brown, 28, of Buffalo, NY, who was convicted of bank robbery, was sentenced to 57 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that on July 9, 2015, Brown entered the First Niagara Bank at 2853 Delaware Avenue in Kenmore, NY wearing a brown wig. The defendant passed a note to the teller demanding money and threatening that he had a gun. Brown made off with a specific amount of money.
The defendant also admitted that on July 3, 2015, he robbed the First Niagara Bank at 1726 Hertel Avenue in Buffalo using the same method.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. CohenBritish Man Named in Federal Grand Jury Indictment that Charges Him with Coming to U.S. to Have Sex with Pre-Teen BoysRead the Press Release
LOS ANGELES – A federal grand jury today indicted a British man on federal charges alleging that he travelled to the Coachella Valley in late January in order to engage in illicit sexual conduct with boys who were 10 and 12 years old.
Paul Charles Wilkins, 70, of Littleport in East Cambridgeshire, England, who had dual United States-United Kingdom citizenship, was charged today with one count of traveling with the intent to engage in illicit sexual conduct and one count of attempted sex trafficking of children.
While the first count of the indictment relates to Wilkins travel to the United States to allegedly have sex with two pre-teen boys, the attempted sex trafficking charge stems from a deal he allegedly brokered with an undercover investigator in which Wilkins allegedly paid $250 to have sex with a 9-year-old boy at an apartment he had rented in Palm Springs.
“My office is committed to protecting children from predators – whether the predators are foreign or domestic,” said United States Attorney Eileen M. Decker. “When this defendant’s original plan was thwarted, he made other arrangements to sexually abuse a child. He must be held accountable for these crimes.”
Wilkins was arrested on February 11 at his rented apartment after paying the money to an undercover operative. He was charged in a criminal complaint that remains under seal and was ordered held without bond. Wilkins is scheduled to be arraigned in United States District Court on March 4.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The charge of traveling with the intent to engage in illicit sexual conduct carries a statutory maximum sentence of 30 years.
The charge of attempted sex trafficking of children carries a mandatory minimum sentence of 15 years in federal prison and statutory maximum penalty of life without parole.
The investigation into Wilkins was conducted by special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI)
“This case serves as a strong reminder that the abuse of children in the U.S. by citizens of any country is an unconscionable crime that will not be tolerated,” said Joseph Macias, special agent in charge for HSI Los Angeles. “Pedophiles who mistakenly believe they can escape detection by traveling to countries other than their own to commit child sex crimes should be on notice that HSI will use all the resources at its disposal to combat this reprehensible behavior and seek justice for the victims.”
Bridgeport Man Sentenced to 21 Months in Federal Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LORENZO CARTER, 21, of Bridgeport, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 21 months of imprisonment, followed by three years of supervised release, for unlawful possession of a firearm by a convicted felon.
According to court documents and statements made in court, on April 8, 2015, law enforcement officers located a .22 caliber handgun that CARTER had placed on the tire of a vehicle parked on Trumbull Avenue in Bridgeport. Prior to that date, CARTER had been convicted of carrying a pistol without a permit and illegally receiving a pistol, both felony offenses.
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.
CARTER has been detained since his arrest on April 8, 2015. He pleaded guilty on October 14, 2015.
This matter was investigated by the FBI Safe Streets Task Force and the Bridgeport Police Department. This case is being prosecuted by Assistant U.S. Attorney Jennifer Laraia.
Ashland Man Pleads Guilty to Employment Tax FraudRead the Press Release
RICHMOND, Va. – Michael Manning, 52, of Ashland, who operated two masonry contractor construction companies, pleaded guilty today to charges of failing to collect, account for and pay over employment taxes to the Internal Revenue Service (IRS).
According to court documents, Manning was the president of Manning Construction and Manning-Carhen Construction. Manning controlled the businesses’ finances and was responsible for filing the Employer’s Quarterly Federal Tax Returns, Forms 941 and paying over to the IRS the federal income, social security and Medicare taxes withheld from the wages of the businesses’ employees. For the third and fourth quarters of 2014, Manning willfully failed to comply with these legal obligations by failing to pay over more than $800,000 in withheld taxes to the IRS. Additionally, as part of his plea, Manning admitted that Manning Construction regularly and deliberately created false financial statements for submission to financial institutions in order to comply with that business’s existing loan covenants, to encourage banks to lend new funds to the company, or to enable the renewal of existing loans.
Manning faces a maximum penalty of five years in prison when sentenced on May 31, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Caroline D. Ciraolo, Acting Assistant Attorney General of the Justice Department’s Tax Division, made the announcement after the plea was accepted by U.S. District Judge M. Hannah Lauck.
The case was investigated by IRS-Criminal Investigation, and is being prosecuted by Assistant U.S. Attorneys Thomas Garnett and Jasmine Yoon, along with Trial Attorney Melanie Smith of the Tax Division.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-17.
Artesia Man Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Eduardo Duran, Jr., 34, of Artesia, N.M., was sentenced today in federal court in Las Cruces, N.M., to 84 months in prison followed by five years of supervised release for his methamphetamine trafficking conviction.
Duran was arrested on May 6, 2015, on a criminal complaint alleging that he possessed methamphetamine with intent to distribute in Eddy County, N.M., on Feb. 9, 2015. According to the complaint, Pecos Valley Drug Task Force agents executed a search warrant at a residence in Carlsbad where they seized a large sum of cash, several packages of Suboxone, a small amount of marijuana, drug paraphernalia and approximately 780 grams of methamphetamine.
On Oct. 7, 2015, Duran pled guilty to a felony information charging him with conspiracy to possess methamphetamine with intent to distribute. In entering the guilty plea, Duran admitted that on Feb. 9, 2015, he possessed approximately 780 grams of methamphetamine which was seized by officers who executed a search warrant at his residence.
This case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force. Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Arrests Made, Indictment Unsealed in Federal Case Charging FLDS Church Leaders and Others with Conspiracy to Divert SNAP Benefits, Money LaunderingRead the Press Release
SALT LAKE CITY – A two-count indictment unsealed Tuesday afternoon in U.S. District Court in Salt Lake City charges 11 leaders and members of the Fundamentalist Church of Jesus Christ of Latter-day Saints (FLDS Church) with conspiracy to commit Supplemental Nutrition Assistance Program (SNAP) benefits fraud and conspiracy to commit money laundering. The defendants include leaders of the church.
The indictment alleges church leaders diverted SNAP proceeds from authorized beneficiaries to leaders of the FLDS Church for use by ineligible beneficiaries and for unapproved purposes. A large percentage of FLDS Church members living in the Hildale,Utah – Colorado City, Arizona, community known as Short Creek receive SNAP benefits, amounting to millions of dollars in benefits per year.
Charged in the indictment are Lyle Steed Jeffs, age 56, John Clifton Wayman, age 56, Kimball Dee Barlow, age 51, Winford Johnson Barlow, age 50, Rulon Mormon Barlow, age 45, Ruth Peine Barlow, age 41, and Preston Yates Barlow, age 41, all of Hildale; Seth Steed Jeffs, age 42, of Custer, South Dakota; and Nephi Steed Allred, Hyrum Bygnal Dutson, age 55, and Kristal Meldrum Dutson, age 55, all of Colorado City. Lyle Jeffs is the brother of Warren Jeffs. In the physical absence of Warren Jeffs, Lyle Jeffs handles the daily affairs of the organization, including its financial matters. Another of Warren Jeffs’ brothers, Seth Jeffs, leads a congregation of FLDS members in rural Custer County, South Dakota. Arrest warrants were issued for all defendants charged in the indictment.
“This indictment is not about religion. This indictment is about fraud,” U.S. Attorney John W. Huber said today. “This indictment charges a sophisticated group of individuals operating in the Hildale-Colorado City community who conspired to defraud a program intended to help low-income individuals and families purchase food.”
Washington County Sheriff Cory Pulsipher, who helped initiate the investigation and has officers participating on the FBI’s Public Corruption Task Force, emphasized the role his local investigators played in starting the investigation. “What started as a small investigation quickly grew to a point where it was important to work with federal agencies to build a case to present to a grand jury.” Washington County Attorney Brock R. Belnap, whose office also participated in the investigation, will participate in prosecuting the case as a Special Assistant U.S. Attorney.
Arrest warrants were executed Tuesday morning in Salt Lake City, in the FLDS community encompassing Hildale, Utah and Colorado City, Arizona, and in Custer County, South Dakota. The case is being investigated by the FBI, Washington County Sheriff’s Office, IRS Criminal Investigation, the U.S. Department of Agriculture’s Office of Inspector General, and the Washington County Attorney’s Office. The Arizona Department of Economic Security, the Mohave Sheriff’s Office, the FBI’s Minneapolis and Phoenix Field Offices, and the U.S. Attorney’s Office in South Dakota assisted with the case. Custer County, South Dakota Sheriff Rick Wheeler also assisted with the investigation and arrests Tuesday.
“Today’s indictment is the culmination of the tireless efforts of the FBI Public Corruption Task Force, which includes the IRS-Criminal Investigation, the U.S. Department of Agriculture’s Office of Inspector General, the Washington County Sheriff’s Office and the Washington County Attorney’s Office. The violations included in the indictment are especially egregious since they allege that leaders of the conspiracy directed others to commit crimes, for which only certain people benefited. This type of conduct represents nothing less than pure theft. The FBI and its law enforcement partners will actively pursue those entities or persons who unlawfully manipulate and control government programs for their own gain,” Eric Barnhart, Special Agent in Charge of the FBI’s Salt Lake City Field Office said today.
"IRS Criminal Investigation uses its financial expertise to unravel complex financial transactions and money laundering schemes designed to conceal the true source of funds," stated Acting Special Agent in Charge Aimee Schabilion. "We are committed to working with our federal agency partners in combatting frauds against the government."
Washington County Attorney Brock R. Belnap, who will help prosecute the case, expressed appreciation for the efforts of the many agencies involved in the investigation. "I am grateful for the numerous partners who have worked diligently on this case. It is our shared hope that this action will help innocent families receive the food assistance that they genuinely need while holding people accountable who conspire to divert those resources to illegal purposes."
Special Agent in Charge Lori Chan, Office of Inspector General (OIG) of the U.S. Department of Agriculture (USDA), Western Region, stated, “Protecting the integrity of the Supplemental Nutrition Assistance Program (SNAP) is a major investigative priority for the Office of Inspector General. Vendors who engage in SNAP fraud exploit the program’s needy beneficiaries, and misuse the substantial funding that taxpayers provide. OIG is dedicated to ensuring SNAP funds are used for their intended purpose – feeding individuals and families. We look forward to continuing to work with our law enforcement partners to combat SNAP fraud.”
The U.S. Department of Agriculture’s Food and Nutrition Service operates the SNAP program to provide assistance to low-income individuals and families to purchase food products. The authority to determine eligibility and to certify individual SNAP recipients who qualify for the program is delegated to individual states. Persons in need of benefits apply with the appropriate state agency. Approved applicants receive an Electronic Benefits Transaction Card (EBT card), similar to a bank debit card, that is linked to a SNAP account. EBT cards have a magnetic strip containing recipient information and the benefit amount. When a recipient presents a SNAP EBT card to a retailer to pay for eligible food items, the retailer debits funds from the recipient’s available SNAP benefits. SNAP benefits apply only to the purchase of eligible food items. Recipients cannot exchange their benefits for non-food items, household goods or cash. Only members of the recipient household may use the program benefits.
The indictment alleges that starting in about 2011, FLDS leaders, including Lyle Jeffs, instituted the “United Order” within the ranks of the Church. Participation in the United Order purports to constitute the highest level of worthiness and spiritual preparedness in the church. Devout FLDS members aspire to eligibility in the United Order. Adherents to the United Order must donate all of their material assets to the FLDS Storehouse, a communal clearinghouse charged with collecting and disbursing commodities to the community. United Order policy also dictates that members must obtain their food and household commodities solely through the FLDS Storehouse, according to the indictment.
The indictment alleges that the defendants engage in a variety of overt acts in furtherance of a conspiracy to defraud the SNAP program by diverting SNAP proceeds from authorized beneficiaries to leaders of the FLDS Church for use by ineligible beneficiaries and for unapproved purposes. Church leaders, including Lyle Jeffs, Seth Jeffs, John Wayman and Kimball Barlow, held meetings in which they disseminated storehouse protocols, according to the indictment. These protocols dictated methods for unlawfully diverting SNAP benefits to the FLDS Storehouse as well as instruction on how to avoid suspicion and detection by the government, according to the indictment.
FLDS members transferred their SNAP benefits to FLDS controlled stores without receiving eligible food products at the time of the transactions. For example, on Oct. 16, 2015, an FLDS member conducted a SNAP transaction for $800 without receiving eligible food products at the time of the transaction. On one occasion, John Wayman collected EBT cards from legitimate beneficiaries, provided the cards to another individual, and directed that person to use the SNAP funds to purchase food and goods for non-eligible persons.
SNAP fraud proceeds also financed ineligible purposes. For example, the indictment alleges that in March 2015, using SNAP fraud proceeds, Kimball Barlow signed a check for $16,978 to Orchid’s Paper Products Company for the purchase of paper products. During the period May 31, 2013, through September 22, 2014, the indictment alleges Ruth Barlow signed five checks totaling $13,561 made payable to John Deere Financial. The SNAP fraud proceeds were used for installment payments on a 2013 John Deere load tractor. SNAP fraud proceeds were also used for 16 checks totaling $30,236 payable to Ford Motor Credit for installment payments on a 2012 Ford F-350 purchased by Winford Barlow about Sept. 29, 2012.
The money laundering count of the indictment alleges the defendants conspired to conceal and disguise the nature, location, source, ownership and control of proceeds of a specified unlawful activity while conducting or attempting to conduct financial transactions. The indictment also seeks a money judgment equal to the value of the proceeds traceable to the alleged criminal offenses.
The potential penalty for conspiracy count is five years in prison. The money laundering count carries a potential penalty of 20 years in prison.
An indictment is not a finding of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.
Lyle Steed Jeffs and John Clifton Wayman were arrested Tuesday morning in Salt Lake City. They are scheduled to make an initial appearance on the charges Wednesday at 10 a.m. in Room 7.1 of the federal courthouse in Salt Lake City.
Seth Steed Jeffs was arrested Tuesday morning in Custer County, South Dakota, and will have an initial appearance in federal court in South Dakota.
Defendants arrested Tuesday in the Hildale – Colorado City area will appear Wednesday at 10 a.m. in federal court in St. George. At this time, Ruth Peine Barlow and Kristal Meldrum Dutson have been taken into custody. (Will update through the day.)
Ambulance Company Employee Sentenced to 37 Months in PrisonRead the Press Release
PHILADELPHIA – Thael Kuran, 24, of Philadelphia, PA, was sentenced today to 37 months in prison for a health care fraud scheme involving Brotherly Love Ambulance, Inc. In addition to the prison term, U.S. District Court Judge Gerald J. Pappert ordered three years of supervised release, restitution in the amount of $2,015,712.52, and a $200 special assessment.
Through Brotherly Love, Kuran transported patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements. Kuran and other conspirators falsified reports to make it appear that the patients needed to be transported by ambulance when he knew that the patients could be safely transported by other means and, in fact, many of them could walk. In addition, Kuran and other conspirators paid kickbacks to patients to ensure that they would use Brotherly Love Ambulance for services which were not medically necessary. The company also billed Medicare for ambulance services for patients who were not transported by ambulance, but whom Kuran and others transported in personal vehicles. Kuran and others completed documentation of these transports that made it appear that the patients had been transported in an ambulance and that misrepresented the medical care provided to and safety precautions taken for these patients. As a result of the fraudulent scheme at Brotherly Love, the Medicare program paid more than $2 million for fraudulent claims from Brotherly Love.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the Federal Bureau of Investigation, and the U.S. Department of Labor Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Mary E. Crawley and Paul W. Kaufman.
Alfredo Beltran Leyva Pleads Guilty to International Drug Trafficking Conspiracy ChargesRead the Press Release
Attorney General Loretta E. Lynch announced today that Alfredo Beltran Leyva, also known as Mochomo, one of the leaders of the Beltran Leyva Organization, a Mexican drug-trafficking cartel responsible for importing multi-ton quantities of cocaine and methamphetamine into the United States, pleaded guilty to participating in an international narcotics trafficking conspiracy.
Assistant Director Joseph S. Campbell of the FBI’s Criminal Investigative Division, Acting Administrator Chuck Rosenberg of the Drug Enforcement Administration (DEA) and Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) joined the Attorney General in making the announcement.
“For decades, Alfredo Beltran Leyva helped to lead one of the world’s most notorious drug cartels, causing widespread violence and disrupting lives,” said Attorney General Lynch. “With this guilty plea, justice has been done, and Beltran Leyva will be held accountable for his crimes. This conviction is the result of our close partnership with the Mexican government, and it should serve as a reminder that our countries will not rest in the fight against drug trafficking and violent crime.”
“This plea is the result of the unwavering commitment to aggressively investigate the leaders of transnational criminal organizations throughout world,” said Assistant Director Campbell. “The significant and constant cooperation between our domestic and international law enforcement partners aided significantly in this successful outcome.”
“Alfredo Beltran Leyva and his criminal network destroyed families and communities,” said Acting Administrator Rosenberg. “He oversaw a violent organization responsible for pushing dangerous drugs like cocaine and methamphetamine onto the streets of America and his guilty plea marks the end of his criminal reign and the beginning of his life behind bars.”
“Today’s guilty plea sends the strongest possible message to drug traffickers,” said Executive Associate Director Edge. “HSI and our law enforcement partners, both in the United States and around the world, will continue to work tirelessly to disrupt and dismantle international drug trafficking organizations and bring them to justice.”
Leyva, 45, was indicted on Aug. 24, 2012, for conspiracy to distribute cocaine and methamphetamine for importation into the United States. The defendant was extradited from Mexico to the United States on Nov. 15, 2014, and pleaded guilty before U.S. District Judge Richard J. Leon of the District of Columbia.
In court, the defendant admitted that he was part of a conspiracy to import large quantities of drugs into the United States. At the hearing, the government proffered evidence that from 1990 until his arrest in January 2008, the defendant was a leader of the Beltran Leyva Organization, a global criminal enterprise that was responsible for importing multi-ton quantities of cocaine and methamphetamine into the United States. Beltran Leyva admitted that he and his organization obtained tonnage quantities of cocaine from South American suppliers, which the defendant and his organization helped finance and which were transported to Mexico via air, land and sea. Once the cocaine reached Mexico, the defendant’s organization transported it to central key points in Mexico, including to Culiacan, Sinaloa, which was also the central point for the collection of billions of dollars from drug trafficking proceeds in the United States. Additionally, the government’s evidence would have shown that the organization carried out acts of violence, including murders, kidnappings, tortures and violent collections of drug debts, in order to sustain the drug importation operation. Further, the government’s evidence would have shown that the organization made payments to public officials to ensure that the organization’s drug shipments passed through Mexico uninhibited.
On May 30, 2008, the president added the Beltran Leyva Organization to the Department of Treasury’s Office of Foreign Asset Control’s Specially Designated Nationals and Blocked Persons list pursuant to the Foreign Narcotics Kingpin Designation Act. On Aug. 20, 2009, the president specifically designated Beltran Leyva as a specially designated drug trafficker under the same Kingpin Act.
The FBI’s El Paso Office led the investigation in partnership with the DEA’s New York Field Division and HSI’s New York Office as part of the Organized Crime Drug Enforcement Task Force. Deputy Chief Andrea Goldbarg, Assistant Deputy Chief Amanda Liskamm and Trial Attorney Adrian Rosales of the Criminal Division’s Narcotic and Dangerous Drugs Section and Assistant U.S. Attorney Marcia M. Henry of the Eastern District of New York are prosecuting the case. The Criminal Division’s Office of International Affairs and the U.S. Attorneys’ Offices of the Eastern District of New York, the Southern District of Florida, the Southern District of Texas, the Northern District of Georgia and the Northern District of Illinois provided substantial assistance. The Justice Department thanks the government of Mexico for their assistance in this matter.
Albuquerque Man Sentenced to Ten Years for Distributing Child PornographyRead the Press Release
ALBUQUERQUE – Ruben Nieto, 45, of Albuquerque, N.M., was sentenced in federal court yesterday afternoon to 120 months in prison for his conviction for distributing child pornography. He will be on supervised release for five years after completing his prison sentence. Nieto was ordered to pay $1,000 to each of the two victims whose images were used in the child pornography distributed by Nieto. Nieto also will be required to register as a sex offender.
Nieto was arrested by the FBI on Nov. 13, 2014, on a criminal complaint charging him with distribution of a visual depiction of a minor engaged in sexually explicit conduct and possession of a visual depiction of a minor engaged in sexually explicit conduct. Nieto was charged with committing both offenses in Bernalillo County, N.M., from March 24, 2014 through March 27, 2014. On Dec. 3, 2014, Nieto was indicted and charged with distributing child pornography.
According to court filings, the FBI initiated a federal investigation into Nieto in May 2014, after receiving a referral from the Bernalillo County Sheriff’s Office (BCSO) and the New Mexico Office of the Attorney General (NMOAG), both of which are members of the New Mexico Internet Crimes Against Children (ICAC) Task Force. In Jan. 2014, investigators identified an IP address that was being used to download and share child pornography. Investigation revealed that the IP address was subscribed to the residence in which Nieto lived until April 2014. In May 2014, investigators executed a search warrant at the residence and seized computers and computer-related media that contained child pornography after learning that Nieto regularly used the computer while he lived in the residence.
On July 29, 2015, Nieto pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Albuquerque office of the FBI, the BCSO, the NMOAG and the New Mexico ICAC Task Force.
The case was prosecuted by Assistant U.S. Attorney Shammara H. Henderson as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMOAG. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Albuquerque Man Pleads Guilty to Federal Firearms and Counterfeiting ChargesRead the Press Release
ALBUQUERQUE – Phillip Pacheco, 29, of Albuquerque, N.M., pleaded guilty today in federal court to being a felon in possession of firearms and counterfeiting U.S. securities. Under the terms of his plea agreement, Pacheco will be sentenced to 84 months in federal prison followed by a term of supervised release to be determined by the court.
Pacheco was indicted on May 28, 2015, and charged with being a felon in possession of firearms and counterfeiting U.S. securities on July 1, 2013, in Bernalillo County, N.M. At the time, Pacheco was prohibited from possessing firearms because he previously had been convicted of marijuana trafficking, armed robbery, conspiracy to commit armed robbery, aggravated assault with a deadly weapon and being a felon in possession of a firearm.
Pacheco was arrested in Aug. 2015, after he was transferred to federal custody from state custody where he was being held on related state charges. The state charges have since been dismissed in favor of federal prosecution.
During today’s proceedings, Pacheco pled guilty to the indictment. In entering the guilty plea, Pacheco admitted that on July 1, 2013, he possessed three firearms even though he was prohibited from possessing firearms because of his status as a convicted felon. Pacheco further admitted that he fraudulently made 147 counterfeit Federal Reserve Notes with a total face value of $9,820.00.
Under the terms of his plea agreement, Pacheco must forfeit the three firearms found in his possession on July 1, 2013. He also must forfeit the equipment he used to make the counterfeit Federal Reserve Notes.
Pacheco remains in custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney David M. Walsh is prosecuting the case.
5 Iberia Parish Sheriff’s Office employees plead guiltyRead the Press Release
LAFAYETTE, La. – Principal Deputy Assistant Attorney General Vanita Gupta and U.S. Attorney for the Western District of Louisiana Stephanie A. Finley announced today that three former and two current employees of the Iberia Parish Sheriff’s Office pleaded guilty to their roles in beating inmates at the Iberia Parish Jail.
Those pleading guilty before U.S. District Judge Patricia Minaldi today to one count of deprivation of civil rights are: Robert E. Burns, 46, Youngsville, La.; Byron Benjamin Lassalle, 34, Erath, La.; Wade Bergeron, 40, Milton, La.; Bret Klein Broussard, 35, Broussard, La.; and Wesley Hayes, 36, St. Martinville, La. Additionally, Lassalle and Hayes pleaded guilty to one count of civil rights conspiracy. Lassalle and Broussard are currently employed by the Iberia Parish Sheriff’s Office. The other three defendants no longer work there.
Each of the defendants, except Burns, faces 10 years in prison and a $250,000 fine for each count. Burns faces one year in prison and a $100,000 fine. They all face three years of supervised release.
The FBI and the U.S. Department of Justice, Civil Rights Division, participated in the investigation. Assistant U.S. Attorney Joseph G. Jarzabek, and Special Litigation Counsel Mark Blumberg and Trial Attorney Tona Boyd of the U.S. Department of Justice, Civil Rights Division, are prosecuting the case.
20 Individuals Indicted and Arrested for Defrauding the Department of EducationRead the Press Release
SAN JUAN, P.R. – On February 17, 2016, a Federal grand jury returned a ninety-three count superseding indictment charging a total of 52 defendants, including 20 additional employees of Rocket Learning, LLC with conspiracy to commit mail fraud, mail fraud, theft of government money and property, and aggravated identity theft, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Department of Education-Office of Inspector General, the FBI and ICE-HSI are in charge of the investigation. The superseding indictment was unsealed earlier today.
As part of the conspiracy in the superseding indictment, the additional individuals indicted are either “teacher leaders” or “teachers” who provided tutoring services as employees of Rocket Learning, LLC. They participated in the scheme to submit fraudulent attendance information for payment by supervising, or participating in fraudulent biometric attendance entries, signing blank or false manual attendance forms, and/or signing false post-test forms indicating that students received the services when they did not.
The superseding indictment alleges one count of conspiracy to commit mail fraud, a violation of Title 18 United States Code, Sections 1349 and 1341 and twenty-six counts of mail fraud, a violation of Title 18, United States Code, Section 1341, related to payments caused to be made via the U.S. Mail to Rocket Learning, Inc., for twenty six fraudulent invoices submitted from 2011 - 2013 to the Puerto Rico Department of Education; one count of theft of public money, a violation of Title 18, United States Code, Section 641, related to the approximately $954,297.00 in Title I Federal Funds unlawfully received; and sixty-five counts of aggravated identity theft, a violation of Title 18, United States Code, Section 1028A(a)(1), related to the use of means of identification of another person by using the name and signature of real students, in relation to the theft of public money charged in the indictment.
“The U.S. Attorney’s Office will continue its efforts to investigate and prosecute those who abuse their access to government funds, and fraudulently obtain moneys destined to help children in our communities,” said Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
“This case reveals once again that there will always be those among us who will endeavor to steal money from even the most vulnerable of populations; in this case, our community’s children. Regrettably, nearly one million dollars in taxpayer funds was lost to a scheme by people willing to sacrifice the futures of the children this federal program was intended to benefit. The FBI and its law enforcement partners recognize the harm caused to Puerto Rico by those who divert public monies to their own use, and will continue to prioritize the investigation and prosecution of these crimes,” said Douglas A. Leff, Special Agent in Charge, Federal Bureau of Investigation.
The defendants are:
- Maria Plaza- Teacher Leader at Hector I. Rivera School
- Wanda Figueroa Figueroa- Teacher Leader at Antonio Serrano Gonzalez School
- Aracelis Rivera Rivera- Teacher at Hector I. Rivera School
- Annette Coppin Bald- Teacher at Ines Maria Mendoza School
- Idalis Torres Torres Torres- Teacher at Nueva Superior de Loiza School
- Jessica Marrero Santana- Teacher at Eugenio Maria de Hostos School
- Keila Silva Sanchez - Teacher at Jesus T. Pinero School
- Monica Ortiz Alicea- Teacher at Antonia Saez Irizarry School
- Nayda Torres De Leon-Teacher at Maria Dolores Faria School
- Guillermo Morales Muñiz- Teacher at Francisco Matias Lugo School
- Raquel Roman Bonilla- Teacher at Joaquin Vazquez School
- Joel Torres Beltran- Teacher at Manuel Mendez Liciaga School
- Laurie Baerga Castro- Teacher at Adrin Torres Torres School
- Angel Velez Rosa- Teacher at Berwind Intermedia School
- Florentino Perez Gonzalez- Teacher at Berwind Intermedia School
- Ivelisse Vazquez Garcia- Teacher at Dr. Ramon Tellado School
- Maritza Rosario Medina- Teacher at Antonia Serrano Gonzalez School
- Ana Oben- Teacher at Luis Munoz Rivera School
- Mariam Candelaria- Teacher at Antonia Serrano Gonzalez School
- Margarita Arroyo Heredia- Teacher at Antonia Serrano Gonzalez School
The case is being prosecuted by Assistant United States Attorney Seth A. Erbe. If found guilty, defendants are facing a maximum penalty of 20 years in prison and two additional years for each corresponding aggravated identity theft count. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
22 February 2016
“Pill Mill” Medical Director Convicted in Scheme to Distribute Oxycodone Without a Medical NeedRead the Press Release
Baltimore, Maryland – A federal jury convicted physician William Crittenden III, age 52, of Kensington, Maryland late Friday of conspiring to distribute oxycodone and alprazolam, and eight separate counts of unlawfully distributing oxycodone.
The guilty verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
“William Crittenden prescribed opioid drugs to people who had no medical need for the drugs,” said U.S. Attorney Rod J. Rosenstein. “Pharmaceutical pills can be just as harmful as illegal drugs when they are used without proper oversight.”
According to evidence presented at the 11 day trial and court documents, in March 2011, co-defendants Michael Resnick, Alina Margulis and Gerald Wiseberg opened Healthy Life in Owings Mills, Maryland as a purported pain management clinic. Healthy Life later moved to a larger space in Timonium, Maryland, until it closed on May 15, 2012. Both Healthy Life locations attracted large and unruly crowds. Customers caused disturbances outside the locations, used narcotics inside the clinic itself, and engaged in narcotics transactions in the parking lot. Over 80% of the customers of Healthy Life were from out of state.
Wiseberg interviewed and hired Crittenden to serve as one of the first medical directors at Healthy Life because Wiseberg believed that Crittenden would write prescriptions for narcotics to customers without a legitimate medical need. Customers to Healthy Life paid at least $300 for an initial visit and at least $250 for all subsequent visits and the fees were collected upfront. Crittenden was paid $1,500 a day by the managers of Healthy Life, and received a total of $104,500 over just four months while he was engaged in the scheme. During this time, Crittenden knowingly provided prescriptions to individuals who were addicted to oxycodone and only wanted more pills to feed their addictions. Crittenden also knowingly provided prescriptions to individuals who wanted to sell the narcotic pills on the street. Finally, Crittenden knowingly provided prescriptions to Healthy Life customers even after their urinalysis results showed the presence of illicit substances such as cocaine and marijuana.
Crittenden was the medical director of Healthy Life until his resignation in August 2011 when the Maryland Board of Physicians - the agency authorized to issue licenses to practice medicine in Maryland and to discipline licensees - initiated an investigation into Crittenden’s prescribing practices. This investigation ultimately led the Maryland Board of Physicians to suspend Crittenden’s medical license.
Wiseberg, who was not a doctor, established the standard operating procedures for Healthy Life, including which drugs the prescribing physician could prescribe and the maximum dosage amounts of these drugs. Healthy Life also accepted cash payments in exchange for providing prescriptions for large amounts of oxycodone, alprazolam and other drugs, to customers who did not have a legitimate medical need for the drugs.
To maximize profits, they also encouraged the prescribing physicians, including Crittenden, to prescribe the maximum amount of oxycodone to each customer; and established that prescriptions would be written for 28-day cycles as opposed to 30-day cycles. Additionally, Margulis and Resnick handled complaints by Healthy Life customers who were unhappy with the prescriptions they received, particularly when a medical provider might prescribe less oxycodone than the customer wanted. In those instances, Margulis and Resnick would intervene and ask the prescribing medical provider to reconsider, knowing it would lead the provider to give the customer what the customer wanted.
Crittenden was acquitted on 15 of the drug distribution counts.
Crittenden faces a maximum sentence of 20 years in prison. A sentencing date will be scheduled in the near future.
Michael Resnick, a/k/a Michael Reznikov, age 54, and his wife, Alina Margulis, age 49, both of Brooklyn, New York; Gerald Wiseberg, a/k/a Gerry Wiseberg and Jerry Wiseberg, age 82, of Boca Raton, Florida; along with Daniel Alexander, age 53, of Pikesville, Maryland, who served as a medical director at Healthy Life after Crittenden resigned, previously pleaded guilty to conspiracy to distribute oxycodone and alprazolam. Margulis also pleaded guilty to money laundering, and Resnick also pleaded guilty to structuring currency deposits. Resnick and Margulis have agreed to the entry of an order to forfeit $280,000, the amount of illicit profits they received from the scheme. Alexander has agreed to the entry of an order to forfeit $30,000, the amount he was paid for his activities at Healthy Life. Chief U.S. District Judge Catherine C. Blake has scheduled sentencing for Wiseberg on March 7, Resnick and Margulis on March 18, and Alexander on March 25.
United States Attorney Rod J. Rosenstein commended DEA, IRS-CI, Baltimore County Police Department and Baltimore County State’s Attorneys’ Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jason D. Medinger and Peter J. Martinez, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Whitesboro Man Sentenced to 60 Months for Methamphetamine Distribution and Possession of AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that KENNY RAY SMITH, age 52, of Whitesboro, Oklahoma, was sentenced to 60 months imprisonment, followed by 3 years of supervised release for POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841 (b)(1)(C) and FELON IN POSSESSION OF AMMUNITION, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about February 13, 2015, in the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with the intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
It was further alleged that on or about February 13, 2015, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, ammunition which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Oklahoma Bureau of Narcotics and the District 16 District Attorney’s Drug Task Force.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshals Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Christopher Wilson represented the United States.
VA Medical Center ICU Nurse Pleads Guilty to Theft of Prescription Drugs, Falsifying Employment ApplicationRead the Press Release
PROVIDENCE, R.I. – Lisa M. McManaman, 47, of Providence, a former registered nurse in the intensive care unit of the Providence VA Medical Center, pleaded guilty on Friday to stealing prescription drugs from the VA Medical Center and to failing to disclose on her employment application with the VA that she was previously terminated from a similar position at another hospital in Rhode Island.
Appearing Friday before U.S. District Court Chief Judge William E. Smith, McManaman pleaded guilty to one count of theft of government property and one count of false statements. McManaman’s guilty plea is announced by United States Attorney Peter F. Neronha; Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
At the time of her guilty plea, McManaman admitted to the court that on dozens of occasions between May 2015 and October 2015, she used an override feature of an automated medication dispensing system (AMDS) to obtain controlled substance pills, including but not limited to oxycodone and morphine, that were not prescribed for nor provided to patients. According to court records, in the month of September 2015 alone, McManaman used the override feature of the AMDS 19 times and removed approximately 240 controlled substance pills that were not prescribed by a physician and that were not administered to patients.
Additionally, McManaman admitted to the court that in March 2014, she provided false information on her job application for employment at the Providence VA Medical Center when she stated that she had not been terminated from any employment within the previous 5 years. An investigation revealed that in November 2013, McManaman had been fired from her previous job as a nurse in the intensive care unit of a hospital in Rhode Island.
McManaman is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on May 13, 2016.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
The matter was investigated by the United States Department of Veterans Affairs, Office of Inspector General, and the DEA.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
U.S. Attorney Holds Roundtable Discussion with Police Chiefs, Sheriffs and Other Law Enforcement Representatives of District's Westernmost CountiesRead the Press Release
ASHEVILLE, N.C. – On Friday, February 19, 2016, U.S. Attorney Jill Westmoreland Rose convened a roundtable discussion with police chiefs, sheriffs and other law enforcement representatives of the district’s westernmost counties, to discuss law enforcement related issues impacting their communities.
The meeting was held at the Eastern Band of Cherokee Indians Justice Center in Cherokee, N.C., and was attended by C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and representatives of The Yancey County Sheriff’s Office, the Swain County Sheriff’s Office, the Jackson County Sheriff’s Office, the Haywood County Sheriff’s Office, the Macon County Sheriff’s Office, the Maggie Valley Police Department, the Brevard Police Department and the Cherokee Police Department.
“As the district’s chief federal law enforcement officer and a representative of the Justice Department, it is important to reach out to our local police departments and sheriffs’ offices to discuss some of the law enforcement issues they are currently facing,” said U.S. Attorney Rose, following Friday’s roundtable discussions. “Local law enforcement agencies know and understand the unique needs of their communities, and their input ensures that we are effectively deploying federal resources to maximize the positive impact on the lives of the people in those communities.”
Among the issues discussed was the need for additional law enforcement training; the impact of crime in small and rural communities; conducting collaborative investigations and focusing on law enforcement initiatives that deliver greater local impact; joint terrorism-related investigations; as well as the epidemic of opiate and heroin overdose deaths. Over the course of the meeting, U.S. Attorney Rose emphasized the importance of developing and maintaining strategic partnerships with local law enforcement agencies and reiterated her office’s commitment to ensuring their needs are met.
“We rely on the dedicated service and assistance of our partners in local law enforcement agencies to keep our communities safe. They are important partners and teammates and I have tremendous respect and gratitude for their professionalism, partnership and hard work. Following today’s discussion, I am confident that we all have an increased understanding of each other’s needs in accomplishing our common goal: the safety and well-being of the people in our communities.”
Two Chinese nationals charged with defrauding GoodyearRead the Press Release
Xin Franco Fan, 40, and Rex Xu Yu, 41, two Chinese nationals, were arrested and charged on February 19, 2016 with wire fraud and honest services wire fraud for defrauding Goodyear, said FBI Special Agent in Charge Stephen D. Anthony and Acting U.S. Attorney Carole S. Rendon.
"The FBI takes its responsibility to aggressively protect US companies from the vulnerabilities associated with operating overseas seriously, including significant fraud as alleged in this investigation," Anthony said. "Individuals who participate in fraud schemes should not underestimate the resolve of the FBI to work closely with companies such as Goodyear to root out these schemes and bring the perpetrators to justice."
"These two defendants were engaged in a multi-year scheme designed to steal tens of thousands of dollars from Goodyear," Rendon said. "Goodyear is to be commended for promptly reaching out to law enforcement when they uncovered this scheme. Because of their quick action, we are now able to hold these men accountable for their conduct."
According to a criminal complaint, Fan and Yu were employees of Goodyear Orient Company (Private) Limited, or GOCPL, a subsidiary of Goodyear, located in Singapore and with offices in China. GOCPL manages all of the natural rubber purchasing, delivery, financing and quality certifications for Goodyear’s global operations. Goodyear, through GOCPL, spends approximately $1 billion annually to acquire natural rubber for its operations.
As a condition of their employment, Fan and Yu are obligated to act in the best interests of Goodyear when purchasing natural rubber. In 2015, Goodyear received an anonymous tip that Fan and Yu were receiving kickback payments in connection with GOCPL’s raw materials purchases. With the cooperation of Goodyear executives, an investigation into the matter led to a complaint being filed in the Northern District of Ohio federal court and arrest warrants being issued for Fann and Yu.
A complaint is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tax Preparer Sentenced to 51 Months for Filing False Tax Returns and Lying on A Loan ApplicationRead the Press Release
CHARLOTTE, N.C. – Malik Shropshire, 43, of Charlotte was sentenced today to 51 months in prison for filing false tax returns and lying on a loan application, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank D. Whitney ordered Shropshire to serve 3 years under court supervision following his prison term, and to pay $582,933 as restitution to IRS and $7,749.24 to a credit union he defrauded.
U.S. Attorney Rose is joined by Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), in making today’s announcement.
According to filed court documents and today’s sentencing hearing, Malik Shropshire worked as a tax preparer and a financial advisor in the Charlotte area, and aided and assisted in the preparation of hundreds of false tax returns which were filed with the IRS. Court records show that Malik Shropshire’s sister, Nkhenge Shropshire, was the owner of “Tax Connections,” a tax return preparation business also located in Charlotte. According to court records, from 2010 through 2012, Malik Shropshire conspired with his sister and others, to execute a fraudulent tax fraud scheme involving the filing of fraudulent tax returns. Court records indicate that Malik Shropshire recruited individuals to have their tax returns prepared and filed through his sister’s business and elsewhere, promising in exchange large tax refunds. Court records show that Malik Shropshire obtained the fraudulent refunds by filing tax returns that contained fraudulent information, including false Schedule C businesses, false dependents, and false refundable education credits. As a result of using the fraudulent information, court records show that the taxpayers’ tax liabilities decreased, they received larger tax refunds, and they qualified for the Earned Income Tax Credit. According to court records, the tax loss associated with the fraudulent returns is $582,933.00.
In addition to the fraudulent tax scheme, court records show that Malik Shropshire, assisted by his sister, lied on loan applications and was able to obtain a credit card and a car loan, using fake social security numbers, false income information and false employment information. According to court records, Malik Shropshire used the auto loan to purchase a Land Rover vehicle. Subsequently, he defaulted both on the auto loan, and the credit card, after he maxed out its $10,000 limit. Malik Shropshire pleaded guilty to conspiracy to defraud the IRS and to making false statements on a loan application in June 2015.
In handing down Malik Shropshire’s sentence today, Judge Whitney emphasized that this was a very serious, sophisticated crime and noted the importance of general deterrence so “would be fraudsters” would not participate in tax refund fraud schemes.
Malik Shropshire has been in federal custody since August 2015. Upon designation of a federal facility he will be transferred to the custody of the Federal Bureau of Prisons. Nkhenge Shropshire was previously sentenced for her participation in the scheme.
The investigation was handled by IRS-CI. Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte prosecuted the case.
St. Petersburg Man Sentenced to More Than 12 Years for Child Exploitation OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Jorge Valencia (43, St. Petersburg) to 12 years and 11 months in federal prison for receiving child pornography and attempting to entice a minor. The Court also ordered Valencia to forfeit items that he had used while committing the offenses, including a laptop and an iPhone. Valencia pleaded guilty on September 24, 2015.
According to court documents, in January 2015, an undercover FBI task force officer discovered that Valencia was using an online file-sharing program to share files depicting child pornography. Subsequently, a search warrant was executed at Valencia’s residence and several of his electronic devices were seized for evaluation.
The forensic analyses of the devices revealed that since at least 2012, Valencia had been using a phone messaging app to chat with individuals, he believed to be under the age of 18, for the purpose of soliciting sexually explicit pictures from them. A large collection of child pornography, including numerous videos and images depicting children under the age of 12, were also found on his devices.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rachel Jones.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
St. Petersburg Man Sentenced to Fifteen Years for Firearm and Drug OffensesRead the Press Release
Tampa, Florida – United States District Judge Elizabeth Kovachevich has sentenced Tom Kelly (St. Petersburg, 32) to 15 years in federal prison for possessing a firearm as a convicted felon and for conspiring to possess with the intent to distribute crack cocaine. He pleaded guilty in October 2015.
According to court documents, Kelly operated a drug house in St. Petersburg. During the execution of a search warrant at his home in October 2014, law enforcement officers found Kelly in possession of two loaded firearms, crack cocaine, powder cocaine, and prescription pills. Kelly has multiple prior felony convictions for drug and firearm offenses, and is therefore prohibited from possessing a firearm or ammunition under federal law. The officers also seized more than $100,000 of jewelry and cash from the residence and other locations as proceeds of the drug distribution scheme.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorney Rachel K. Jones.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
South Carolina Native Sentenced to 180 Months for Leadership Role in a-PVP Trafficking and International Money Laundering ConspiraciesRead the Press Release
GREENEVILLE, Tenn. – On Feb. 19, 2016, Joshua Lee Lindsey, 30, of Lyman, S.C., was sentenced by the Honorable Pamela L. Reeves, U.S. District Court Judge, to serve 180 months in federal prison for his leadership role in an extensive a-PVP (alpha-pyrrolidinopentiophenone) distribution conspiracy and an international money laundering conspiracy involving northeast Tennessee, southwest Virginia, western North Carolina and western South Carolina.
A-PVP is a synthetic drug primarily ordered from China, which is commonly referred to on the street as “gravel” or “flakka.” Common effects on users include: extreme paranoia; hallucinations; elevated blood pressure; extremely high body temperature; excited delirium; staying awake for days; hostility and having exceptional strength without apparent fatigue. These characteristics make the drug not only very dangerous for the user but also for law enforcement responding to people who are high on it. A-PVP has been referred to by users of the substance as “meth on steroids.”
According to his plea agreement on file with U.S. District Court, Lindsey admitted that between January 2012 and October 2014 he conspired to distribute and was accountable for a conservative estimate of between 35,000 and 75,000 grams (35 to 75 kilograms) of a-PVP. Lindsey and Randall Scott Braddock, 50, of Hendersonville, N.C., became involved in obtaining a-PVP from China and redistributing it for profit as early as January 2012. Braddock was also charged in this case and was previously sentenced to serve 192 months in federal prison.
The investigation in this case resulted in the recovery of a large number of emails between Lindsey and a particular a-PVP supplier in China. In these emails, Lindsey asked for the “most potent” and “top quality” a-PVP they had available. He asked for the “big rocks,” because “demand was high” and was concerned because there had been complaints about a recent drop in potency. Lindsey asked that the supplier in China label the a-PVP as acrylic paint and made up a fake name of ‘AcryliCO’ for the company to ship to him to avoid detection from law enforcement. He requested the supplier send the a-PVP to his address in South Carolina, instead of North Carolina or Tennessee because his partner Braddock had a previous arrest in North Carolina for dealing in a-PVP and other substances. In an email to the supplier Lindsey wrote, “I already gave u good business in n.c. and Landrum s.c, All that was brought to you by me! Scott Braddock and Rick lowe! The whole nc tn boom last year! You’re welcome!” Lindsey expressed his gratification to the China a-PVP supplier by emailing,” You have been a blessing for me! My life is much better now!”
Lindsey later recruited and hired other individuals from South Carolina to assist in the conspiracy by providing them money to send to the supplier in China via Western Union. After the 500 to 1,000 gram shipments of a-PVP were received in South Carolina, Lindsey instructed the others to repackage it into 50 gram bags and deliver them to Braddock in Hendersonville, N.C., for distribution to a very large number of other dealers and customers, primarily in northeast Tennessee.
Others who were charged and previously sentenced in this conspiracy include Richard McNeal Hillman, Ronnie Lee Shelton, Austin Michael Stallard, Johnny Michael Stallard, Desera Jade Allen, Phillip Wayne Mullins, Johnny White, Michael Ray Mangum, Eric Matthew Vance, Evelyn Vickers, James Elmer Mclain, Joshua Brandon Hinkle and Richard Allen Lowe, who were sentenced to serve 188 months, 235 months, 121 months, 180 months, 151 months, 151 months, 120 months, 120 months, 135 months, 110 months, 110 months, 110 months and 80 months in federal prison respectively.
Law enforcement agencies participating in the investigation included: the Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; Sullivan County Sheriff’s Office; Kingsport Police Department; Hawkins County Sheriff’s Department; Johnson City Police Department; Greeneville, Tennessee Police Department; Hendersonville, North Carolina Police Department; and Scott County, Virginia Sheriff’s Office. Assistant U.S. Attorney Wayne Taylor represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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