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17 February 2016
Brooke County, WV man charged with failure to update sex offender registrationRead the Press Release
ELKINS, WEST VIRGINIA – A federal grand jury returned an indictment today charging convicted sex offender Christopher Barker, 27, of Follansbee, West Virginia, with moving across state lines without updating his sex offender registration status, United States Attorney William J. Ihlenfeld, II, announced.
Barker, also known as Christopher D. Cooper, was previously convicted in Ohio County, West Virginia of “First Degree Sexual Assault Involving a Minor.” As a result of that conviction, Barker is required to register as a sex offender. Barker is alleged to have moved from Pittsburgh, Pennsylvania to Follansbee, West Virginia in late 2015 without updating his sex offender registration status.
Barker is charged with one count of “Failure to Register and Update Registration as a Sex Offender.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin is prosecuting the case on behalf of the government. The United States Marshals Service, the Pennsylvania State Police, and the Pittsburgh, Pennsylvania Police Department are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Bismarck Man Sentenced for Tax FraudRead the Press Release
BISMARCK - U. S. Attorney Christopher C. Myers announced that on February 16, 2016, Solomon Lindsay, 39, Bismarck, N.D., was sentenced before U. S. District Court Judge Daniel L. Hovland to time served plus three years’ supervised release on three counts of Tax Fraud. Judge Hovland also ordered Lindsay to pay $300 to the Crime Victims’ Fund, as well as restitution to the IRS.
An IRS investigation revealed that for the tax years 2009 through 2012, Lindsay, who has a Bachelor’s Degree in Accounting from UND, ran a tax service out of his apartment. Lindsay created a scheme whereby he would file returns on behalf of others, mainly family and friends, which would include inflated income figures and false credits. Each return then requested a false refund. Lindsay electronically filed the returns and deposited all the refunds in his personal account. Each taxpayer received a smaller refund than requested, while Lindsay skimmed a substantial amount of the money for himself. The scam resulted in the IRS paying out fraudulent refunds totaling $140,741.00.
The U. S. Attorney’s Office is committed to the enforcement of all federal tax violations, from refund scams to tax evasion schemes, and will continue to aggressively prosecute this category of federal crimes.
This case was investigated by the Internal Revenue Service.
Assistant U. S. Attorney Cameron Hayden prosecuted the case.
Billings Hospital One of 51 Hospitals Nationwide to Pay More Than $23 Million to Resolve False Claims Act Allegations Related to Implantation of Cardiac DevicesRead the Press Release
WASHINGTON – The Department of Justice announced today that it has reached settlements with 51 hospitals in 15 states for more than $23 million related to cardiac devices that were implanted in Medicare patients in violation of Medicare coverage requirements. Saint Vincent Healthcare in Billings is one of the hospitals included in the settlements. St. Vincent is part of the Sisters of Charity of Leavenworth Health System, based in Broomfield, CO, and is one of five Sisters of Charity hospitals that together paid 1.95 million under the settlements.
An implantable cardioverter defibrillator, or ICD, is an electronic device that is implanted near and connected to the heart. It detects and life-threatening heart rhythms, called fibrillations, by delivering a shock to the heart, restoring the heart’s normal rhythm. Only patients with certain clinical characteristics and risk factors qualify for an ICD covered by Medicare.
Medicare coverage for the device, which costs approximately $25,000, is governed by a National Coverage Determination (NCD). The Centers for Medicare and Medicaid Services implemented the NCD based on clinical trials and the guidance and testimony of cardiologists and other health care providers, professional cardiology societies, cardiac device manufacturers and patient advocates. The NCD provides that ICDs generally should not be implanted in patients who have recently suffered a heart attack or recently had heart bypass surgery or angioplasty. The medical purpose of a waiting period - 40 days for a heart attack and 90 days for bypass/angioplasty - is to give the heart an opportunity to improve function on its own to the point that an ICD may not be necessary. The NCD expressly prohibits implantation of ICDs during these waiting periods, with certain exceptions. The Department of Justice alleged that from 2003 to 2010, each of the settling hospitals implanted ICDs during the periods prohibited by the NCD.
The settlements announced today follow similar agreements announced in October of 2015 in which the Department settled with 457 hospitals for more than $250 million. The settlements announced today represent the final stage of a nationwide investigation into the practices of hundreds of hospitals improperly billing Medicare for these devices. The case underlying the settlements was brought as a qui tam, or whistleblower, lawsuit under the False Claims Act. The investigation was part of the government’s Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which is a collaborative effort between DOJ and the Department of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. Since January 2009, the Justice Department has recovered a total of more than $27.4 billion through False Claims Act cases, with more than $17.4 billion of that amount recovered in cases involving fraud against federal health care programs. With these additional agreements, the Justice Department’s investigation has now yielded settlements with more than 500 hospitals totaling more than $280 million.
The settlements were the result of a coordinated effort among the DOJ’s Civil Division Commercial Litigation Branch, the U.S. Attorney’s Office of the Southern District of Florida and HHS-OIG’s Office of Investigations and Office of Counsel to the Inspector General. More information on the settlements announced today can be found at the DOJ’s Office of Public Affairs Website.
The claims resolved by these settlements are allegations only and there has been no determination of liability.
This lawsuit is captioned U.S. ex rel. Ford et al. v. Abbott Northwestern et al. No. 08-cv-20071 (S.D. Fla.)
Berlin Man Sentenced for Marijuana Trafficking, Money Laundering and Tax EvasionRead the Press Release
BOSTON - A Berlin man was sentenced today in federal court for conspiring to distribute more than 100 kilograms of marijuana, money laundering and tax evasion.
Eric W. Sliwa, age 35, was sentenced by U.S. District Judge Timothy S. Hillman to 78 months in prison to be followed by four years of supervised release. On October 7, 2015, Sliwa pleaded guilty to a 34-count indictment.
The defendant and others distributed large quantities of marijuana between 2001 and 2012. In June 2006, the defendant set up a company, EWS Gem Corp., for the purpose of concealing his drug proceeds and making it appear as though he had legitimate income. While the defendant filed personal tax returns for the tax years 2008 through 2010, he failed to report all of the proceeds from his drug trafficking business. During the time period of the conspiracy, the defendant lived a lavish lifestyle and purchased several assets including his home in Berlin, Mass., a condominium in Killington, Vt. and multiple luxury vehicles. At the time of his arrest, Sliwa possessed nearly $500,000 in cash as well as a coin and precious metal collection worth approximately $370,000 in a safe deposit box. As part of his plea agreement, Sliwa agreed to forfeit over $1,000,000 in cash, gold coins and luxury vehicles.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Manny J. Muriel, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Cory Flashner of Ortiz’s Worcester Branch Office.
Bank Robber Sentenced to 151 Months in Federal PrisonRead the Press Release
DALLAS — A Dallas man, Shaun Wesley Skinner, 27, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to 151 months in federal prison following his guilty plea in May 2015 to one count of bank robbery and one count of attempted bank robbery. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, on November 18, 2014, Skinner entered the Wells Fargo Bank, located at 2222 McKinney Avenue in Dallas, where he handed a teller a note that demanded money. The teller, however, did not give Skinner any money, and he fled the bank on foot.
On December 29, 2014, Skinner entered the Chase Bank, located at 10321 Lake June Road in Dallas, approached the teller, and verbally ordered and intimidated the teller into giving him money. Skinner then fled the bank with the money.
The Federal Bureau of Investigation and the Dallas Police Department investigated. Assistant U.S. Attorney Keith Robinson prosecuted the case.
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Bank Manager Sentenced for Staging Bank Robbery and Falsifying Bank DocumentsRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Matthew S. Liebheit, 40, Moro, IL, was sentenced in federal court to 41 months in federal prison, to be followed by 4 years of supervised release on two counts of Theft, Embezzlement, or Misapplication by a Bank Officer or Employee and one count False Bank Entries. Liebheit was also ordered to pay $140,862 in restitution and a $300 Special Assessment.
The charges stem from a purported bank robbery at Liberty Bank in Bethalto, Illinois on December 13, 2014. Liebheit, a bank manager at Liberty Bank, called police to report a bank robbery, indicating that a masked individual forced him into the bank at gun point prior to the bank opening. He gave a description of the suspect’s vehicle and stated that he was forced to give that individual over $280,000 from the bank’s vault.
Further investigation revealed that Liebheit’s truck was used as a getaway vehicle and Liebheit was involved in the planning of the staged bank robbery. The "robber" was identified as Eugene Babcock, who Liebheit recruited to do the "robbery," and who used a BB gun to make the robbery appear authentic. Additional investigation showed that Liebheit had also altered withdrawal documents from a Liberty Bank customer’s account to reflect a larger than intended withdrawal from that customer’s account. The day before the staged robbery, Liebheit falsified documentation to show a substantial deposit to that customer’s account.
Babcock has pled guilty to his role in the staged robbery and is scheduled to be sentenced on March 30, 2016.
The case was investigated by the Federal Bureau of Investigation and the Bethalto Police Department. The case is assigned to Assistant United States Attorneys Laura Reppert and Jonathan Drucker.
Atlantic Beach Woman Indicted on Federal Charge of Failure to Register as A Sex OffenderRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Sunshine Marie McEwen (41, Atlantic Beach) has been indicted by a federal grand jury and charged with failing to register as a sex offender after traveling from Florida to California. If convicted, she faces up to 10 years in federal prison. McEwen was arrested in Palm Springs, California on November 28, 2015, and is currently in state custody in Jacksonville.
According to the indictment, on or about August 20, 1998, McEwen was convicted of two counts of lewd and lascivious act (sexual battery) in Jacksonville, Florida. Subsequent to her conviction, and between May 15, 2015, and November 28, 2015, she traveled from Florida to California and failed to register as a sex offender, as required by the Sex Offender Registration and Notification Act.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders. This case was investigated by the United States Marshals Service, the Jacksonville Sheriff’s Office, the Florida Department of Law Enforcement, and the Palm Springs (California) Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This 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 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.
Atkins, Va. Man Sentenced on Methamphetamine ChargesRead the Press Release
ABINGDON, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentencing of a man who previously pled guilty to charges related to the manufacturing and distribution of methamphetamine.
Stanley Martin Frye, 40, of Atkins, Va., pled guilty in March 2015 to one count of manufacturing, distributing and possessing with the intent to distribute methamphetamine. Today in the United States District Court for the Western District of Virginia in Abingdon, Frye was sentenced to 24 months of federal incarceration to be followed by three years of supervised release.
“We must continue to fight the scourge of drug abuse and addiction in the Western District of Virginia,” United States Attorney John P. Fishwick Jr. said today. “It is the mission of the United States Attorney’s Office to prosecute those who distribute these dangerous substances and provide support to those groups that help treat the drug addicted in our communities.”
The investigation of the case was conducted by The investigation of the case was conducted by the Washington County Sheriff’s Office, Russell County Sheriff’s Office, Tazewell County Sheriff’s Office, Smyth County Sheriff’s Office, Bristol, Virginia Sheriff’s Office, Abingdon Police Department, Bristol, Virginia Police Department, Virginia State Police, United States Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration. Special Assistant United States Attorney Kevin Jayne prosecuted the case for the United States.
Artesia Woman Pleads Guilty to Federal Money Laundering ChargeRead the Press Release
ALBUQUERQUE – Jerilyn Munoz, 28, of Artesia, N.M., pleaded guilty this afternoon in federal court in Las Cruces, N.M., to a money laundering conspiracy charge under a plea agreement with the U.S. Attorney’s Office.
Munoz was one of 34 individuals charged with federal and tribal drug offenses as the result of an 18-month multi-agency investigation led by the DEA and BIA into methamphetamine trafficking on the Mescalero Apache Reservation. Eighteen defendants, including five members of the Mescalero Apache Tribe and 13 non-Natives were charged in six federal indictments and a federal criminal complaint. Sixteen other members of the Mescalero Apache Tribe were charged in tribal criminal complaints approved by the Mescalero Apache Tribal Court.
The investigation leading to the federal and tribal charges was initiated in May 2014, in response to an increase in violent crime on the Mescalero Apache Reservation perpetrated by methamphetamine users. The investigation initially targeted a drug trafficking organization that was allegedly distributing methamphetamine within the Reservation, and later expanded to include two other drug trafficking organizations in southeastern New Mexico that allegedly served as sources of supply for the methamphetamine distributed within the Reservation. In Aug. 2014, the investigation was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation is one of the first OCDETF investigations to utilize electronic surveillance (wiretaps) in Indian Country. More than ten kilograms of methamphetamine were seized during the course of the investigation.
Munoz was arrested on Nov. 20, 2015, on an indictment charging her and seven other non-Natives with methamphetamine trafficking and money laundering offenses. The indictment charged Munoz with participation in a methamphetamine trafficking conspiracy, participation in a money laundering conspiracy, and using a communications device, a telephone, to facilitate a drug trafficking crime.
During today’s change of plea hearing, Munoz pled guilty to the money laundering conspiracy charge. In entering the guilty plea, Munoz admitted that between April 2015 and Oct. 2015, she maintained a bank account that was used by another person to deposit the proceeds of drug trafficking crimes in order to conceal the proceeds. Munoz admitted that the other person deposited approximately $25,000.00 into her bank account during that period.
At sentencing, Munoz faces a statutory maximum penalty of 20 years in prison followed by not more than three years of supervised release. Her sentencing hearing has yet to be scheduled.
Munoz is the second of the 18 federal defendants to enter a guilty plea. Wallace Rice, 23, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., pled guilty to a methamphetamine distribution charge on Feb. 5, 2016. At sentencing, Rice faces a statutory maximum penalty of 20 years in federal prison followed by not less than three years of supervised release.
The federal and tribal cases were investigated by the Las Cruces office of the DEA, District IV of the BIA’s Office of Justice Services (Mescalero Agency), BIA’s Division of Drug Enforcement, Mescalero Tribal Police Department, Hatch Police Department, FBI and Lea County Drug Task Force. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the federal cases, and Mescalero Tribal Prosecutor Alta Braham is prosecuting the tribal cases.
Armed career offender sentenced to more than 20 years in prison on firearms and drug chargesRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Shreveport man was sentenced Tuesday to 248 months in prison as an Armed Career Offender for firearms and drug charges.
Jeffery Lynn Alexander, 44, of Shreveport, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on two counts of felon in possession of a firearm, one count of possession with intent to distribute cocaine and one count of carrying a firearm in relation to a drug trafficking offense. He was also sentenced to serve five years of supervised release. According to the September 14, 2015 guilty plea, law enforcement agents conducted a controlled sale of cocaine at a Shreveport hotel in October of 2014. Alexander was recorded participating in the purchase of approximately 8 ounces of cocaine, while armed with a loaded Smith & Wesson .40 caliber handgun. While executing a warrant at Alexander’s home on April 15, 2015, law enforcement agents found Alexander in possession of a loaded 9 mm pistol, cocaine, methamphetamine and cash. Alexander has a prior conviction for possession of cocaine in 2003 and multiple felony drug trafficking convictions in 1998, 2005 and 2010. He was sentenced as an Armed Career Offender. The mandatory minimum sentence for an Armed Career Offender is 15 years in prison.
To be found an Armed Career Offender under federal law, a defendant must have three previous convictions that are either a violent felony or a serious drug offense, or both, committed on occasions different from one another. A serious drug offense can be an offense under federal or state law if it involves the manufacturing, distributing or possessing with intent to manufacture or distribute a controlled substance for which a maximum term of 10 years or more in prison is prescribed by law.
“This defendant had multiple felony convictions and was prohibited by law from possessing a firearm; yet, he not only continued to possess firearms, but also continued to engage in illegal drug offenses,” Finley stated. “The safety and security of the community is our highest priority.”
This case is part of Project Safe Neighborhoods, which is a Department of Justice initiative designed to reduce firearm crimes by removing dangerous and persistent felons from the community and promote firearm safety.
The ATF, Shreveport Police Department and Caddo-Shreveport Narcotics Task Force conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
Alton Woman Indicted for Government Benefits FraudRead the Press Release
Ebony J. Smith, 37, of Alton, Illinois, was indicted by a federal grand jury on January 20, 2016, on two counts of Theft of Government Funds and two counts of False Statement, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Smith was arraigned on the charges this week. If convicted of Theft of Government Funds, Smith faces a maximum penalty of ten years in prison, a $250,000 fine, and three years of supervised release as to each count. If convicted of False Statement, Smith faces a maximum penalty of five years in prison, a $250,000 fine, and three years of supervised release as to each count.
The indictment alleges that from around November 2001, continuing to around November 2011, Smith willfully and knowingly did steal, purloin, and convert for her own use money belonging to the U.S. Department of Housing and Urban Development, having a value of approximately $88,000, by obtaining HUD Housing Choice Voucher Program rent subsidies for a home in which she had an ownership interest when she knew she was not entitled to the rent subsidies due to her ownership interest in the property. The indictment further alleges that from November 2001, continuing to around November 2011, Smith willfully and knowingly did steal, purloin, and convert to her own use money of the Social Security Administration, having a value of approximately $72,000, by obtaining supplemental social security income while also receiving unreported assistance from the HUD Housing Choice Voucher Program. Smith is also alleged to have made materially false statements to the U.S. Department of Housing and Urban Development and the Social Security Administration in the HUD "Tenant Annual Renewal Personal Declaration" and the SSA "Redetermination Summary for Determining Continuing Eligibility for Supplemental Security Income Payments" forms when she did not disclose her ownership interest in the real estate for which she was receiving the rent subsidies and she did not disclose to the SSA the rent assistance she was receiving through the HUD Housing Choice Voucher Program.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the United States must prove guilt beyond a reasonable doubt.
The case was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General and the U.S. Social Security Administration, Office of Inspector General, Office of Investigations. The case is being prosecuted by Assistant U.S. Attorney Ali Summers.
Additional Federal Charges Brought in Nationwide Identity Theft and IRS Tax Refund SchemeRead the Press Release
MEDFORD, Ore. - Federal law enforcement agents arrested Michael Oluwasegun Kazeem, 22, in Georgia based on an Oregon federal grand jury indictment unsealed today. Kazeem, a resident of both Nigeria and Atlanta, Georgia, is charged with mail fraud, aggravated identity theft and conspiring to commit mail fraud with his brother, Emmanuel Oluwatosin Kazeem, 32, of Bowie, Maryland, and Oluwamuyiwa Abolad Olawoye, 29, of Marietta, Georgia.
Michael Kazeem made an initial appearance in Georgia and will be arraigned in the District of Oregon at a date to be set by the Court.
The indictment alleges that, beginning at least as early as tax year 2012, Michael Kazeem, along with his brother and Olawoye and others, engaged in an identity theft conspiracy, in Oregon and elsewhere, involving a scheme to obtain millions of dollars in fraudulent tax refunds from the Internal Revenue Service. The allegations of the indictment detail how Michael Kazeem and his co-conspirators carried out a complex fraudulent scheme involving the use of stolen personal identifying information (PII), falsified wage and withholding information, fraudulently generated electronic filing PINs, disposable email addresses to conceal the co-conspirators’ identities, and the receipt of fraudulent tax refunds through prepaid debit cards. In addition, it describes for the first time allegations brought involving the unauthorized access into the IRS system to obtain taxpayer transcript information. Specifically, Michael Kazeem and his co-conspirators used stolen PII for unauthorized online access to obtain over 1,200 taxpayer transcripts through the IRS “Get Transcript” application process, which was discontinued by the IRS in May 2015. Both Emmanuel Kazeem and Olawoye were previously charged in the District of Oregon, along with Lateef Aina Animawun, 35, Oluwatobi Rueben Dehinbo, 30, and Oluwaseunara Temitope Osanyinbi, 35, with obtaining stolen personal identifying information of taxpayers and submitting false federal tax returns.
“Pursuing those involved in identity theft remains one of our highest priorities,” said U.S. Attorney Billy J. Williams. “Oregonians, as well as others, have been continually victimized by those who unlawfully obtain personal identifying information. It is used to commit fraud, including tax refund fraud, inflicting chaos in the lives of innocent taxpayers long afterward. The U.S. Attorney’s office will continue to pursue those involved in this type of illegal activity and they will be held fully accountable.”
In total, Michael Kazeem and his co-conspirators are alleged to have unlawfully obtained the PII of over 250,000 taxpayers and filed over 2,900 false federal tax returns seeking over $25 million in fraudulent refunds. Although the IRS rejected millions of dollars of fraudulently claimed refunds, the indictment alleges that the defendants successfully obtained $4.7 million in illegal refunds.
“The Federal Trade Commission reported recently that Oregon jumped to third in the nation for reported incidences of identity theft. We know that tax refund fraud cases are a major contributor of the increase of reported identity theft,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigation. “The arrest of Michael Kazeem is a firm indication of the determined efforts of IRS CI and the U.S. Attorney’s Office to reverse that trend here in Oregon and to provide some relief to the victims of this incredibly invasive crime.”
The indictment, which may be viewed here, charges Michael Kazeem with one count of conspiracy to commit mail fraud, seven counts of mail fraud and seven counts of aggravated identity theft. The fraud and conspiracy charges are each punishable by up to 30 years in federal prison and a fine of up to $1 million. If convicted of the aggravated identity theft charges, there is a mandatory minimum penalty of two years in federal prison for each count of conviction. An indictment is only an allegation of a crime and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case results from a joint investigation by IRS-Criminal Investigation, the U.S. Department of Health and Human Services, Office of Inspector General, and the Federal Bureau of Investigation, with support provided by the Department of Treasury, Inspector General for Tax Administration, the United States Postal Inspection Service, the U.S. State Department, Homeland Security Investigations, Medford, Oregon, U.S. Citizenship Immigration Services, Atlanta, Georgia and the Atlanta Police Department. This case is being prosecuted by District of Oregon Assistant U.S. Attorneys Byron Chatfield and Nancy Olson.
Taxpayers are reminded to be vigilant in the protection of their personal identifying information. Anyone interested in more information on preventing or reporting suspected identity theft should review the Internal Revenue Service’s website at http://www.irs.gov/uac/Taxpayer-Guide-to-Identity-Theft.
Adam Chartier Arrested for Bomb Threat Called into the United States Post Office in Burlington, VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Adam Chartier, 29 years old, of Puerto Rico, was arrested by the Federal Bureau of Investigation (FBI) on February 11, 2016 in Puerto Rico on federal charges that he used a telephone, or other instrument of interstate commerce, to make a threat concerning the destruction or damage to a building by means of explosive, in violation of 18 U.S.C. § 844(e). Chartier made an initial appearance on that same day before a U.S. Magistrate Judge in Puerto Rico and was ordered detained.
According to court documents, on February 5, 2016, at approximately 9:30 a.m., Chartier called the FBI office in Vermont and made statements about calling in a bomb threat to the post office. Approximately one half hour later, someone called the United States Post Office on Elmwood Avenue in Burlington and indicated that there was a bomb in the building. The building was evacuated and searched, but no bomb was found. Agents with the FBI and Federal Protective Service later spoke with Chartier who admitted he had just called in a bomb threat to the post office in Burlington. On February 8, 2016, a federal arrest warrant was issued for Chartier, and he was arrested February 11, 2016.
The United States Attorney, Eric S. Miller, emphasized that the charge against Chartier is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, the defendant faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the FBI, the Federal Protective Service and the Vermont State Police. The prosecutor is Assistant U.S. Attorney Wendy G. Fuller.
16 February 2016
Wood Village Resident Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
PORTLAND, Ore. – Guadalupe Ortiz Carrillo, 33, a resident of Wood Village, Oregon, was sentenced by U.S. District Judge Marco A. Hernandez to 125 months in prison following his federal conviction for engaging in a conspiracy to distribute and possess methamphetamine and heroin. When the defendant is released from prison, he is required to serve three years of supervised release.
On July 17, 2014, the defendant was arrested after he arranged to have a runner deliver four pounds of methamphetamine to an undercover police officer. The investigation revealed that the runner had been working for the defendant for a year and a half and was paid $500 a week to store and deliver methamphetamine and heroin at the behest of the defendant. Officers subsequently searched the residences of the defendant and the runner and found an additional six pounds of methamphetamine, over three-quarters of a pound of heroin, $10,524 in cash, scales, and drug packaging materials.
On July 7, 2015, the defendant pled guilty to engaging in a conspiracy to distribute and possess with the intent to distribute methamphetamine and heroin.
“Methamphetamine and heroin have been identified as two of the region’s most serious drug threats,” stated U.S. Attorney Billy J. Williams. “This case is another example of our continued dedication to work with our federal and local law enforcement partners to hold significant drug dealers accountable for poisoning our community.”
According to the Oregon High Intensity Drug Trafficking Area (HIDTA) Program:
Methamphetamine in the form of crystal methamphetamine, or “ice,” continues to be readily available and widely used throughout the Oregon HIDTA and represents the region’s most serious drug threat. Methamphetamine is a highly addictive central nervous system stimulant that is abused for its euphoric and stimulant effects. Chronic methamphetamine abusers exhibit violent behavior, confusion, insomnia and psychotic characteristics such as hallucinations and paranoia. Methamphetamine-related crime, such as identity theft, abused and neglected children, and other serious person and property crimes, continues to occur at a palpable rate and is prevalent throughout the HIDTA region.
Oregon and Idaho law enforcement officers surveyed in 2015 indicated methamphetamine remains a significant threat due to its level of use and availability; nexus to other crimes such as violent activity and property crime; societal impact; and connection to drug trafficking organizations, primarily MNDTOs [multi-national drug trafficking organizations]. Of law enforcement agencies surveyed, 62 percent reported methamphetamine as the greatest Oregon HIDTA Program drug threat to their area, with the majority indicating methamphetamine as the drug that contributes most to violent crime (88%) and property crime (69%). Furthermore, over 60 percent of officers ranked methamphetamine as the drug that serves as the primary funding source for major criminal activity.
Threat Assessment and Counter-Drug Strategy, Program Year 2016, Oregon HIDTA Program, at 12-13 (June 2015).
Heroin availability has increased in the Oregon HIDTA region since 2007, fueling a rise in the volume of heroin seized, number of new users and associated overdoses. Evaluation of recent indicators suggests that heroin availability and use has reached a critical level and represents a close second to methamphetamine as the region’s most serious drug threat.
Id. at 20.
This case was investigated by the Department of Homeland Security Investigations and the Portland Police Bureau’s Drugs and Vice Division. The case was prosecuted by Assistant United States Attorney Scott Kerin.
Westbrook Man Sentenced to Six Years for Distributing Bath Salts and Violating Release ConditionsRead the Press Release
Contact: David B. Joyce
Assistant United States Attorney
Tel: (207) 280-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Christopher Coombs, 44, of Westbrook, Maine, was sentenced today in U.S. District Court by Judge George Z. Singal to five years in prison for possessing with intent to distribute alpha-PHP (a bath salt) and obstruction of justice and a consecutive one year in prison for Coombs’s violation of the terms of supervised release imposed on him in connection with a 2009 drug trafficking conviction. Coombs pled guilty on November 10, 2015.
According to court records, on October 31, 2014, law enforcement officers conducted a controlled delivery of about 500 grams of alpha-PHP to Coombs at his residence in Westbrook. This package was sent from China and was intercepted by customs officials in New York. After Coombs accepted the package, he was arrested. Following his arrest, he directed his wife to delete certain emails that were relevant to the investigation.
This case was investigated by U.S. Immigration & Customs Enforcement’s Homeland Security Investigations, the Westbrook Police Department, and the U.S. Postal Inspection Service.
Washington County Man Charged with Distributing Heroin and Fentanyl that Caused Two OverdosesRead the Press Release
PITTSBURGH – Ronald McMillian, of Washington, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on charges of trafficking in heroin and fentanyl, which resulted in serious bodily injury, United States Attorney David J. Hickton announced today.
The four-count indictment, returned on Feb. 9, charged McMillian with conspiring to distribute and distributing heroin and fentanyl, which resulted in serious bodily injury to at least two people, in August, 2015.
The law provides for a maximum total sentence of not less than twenty years, and up to life in prison, a fine of up to $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Ross E. Lenhardt and Katherine A. King, of the violent crime section of the U.S. Attorney’s Office, are prosecuting this case on behalf of the government.
Special Agents and Task Force Officers from the Drug Enforcement Administration, the Washington County Drug Task Force, the Pennsylvania Office of the Attorney General, the Pennsylvania State Police, the Washington County District Attorney’s Office, and numerous local police departments including the Canonsburg Police Department, the Donora Police Department, the Monessen Police Department, and the Charleroi Police Department, as well as the Washington County Coroner’s Office, and the Allegheny County Medical Examiner’s Office, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Vinton Woman Charged with Providing a Firearm to an Unlawful User of MarijuanaRead the Press Release
Robyn Lynn Merchant, a/k/a Robyn Lynn Winterroth, 52, from Vinton, Iowa, has been charged with one count of providing a firearm to a prohibited person. The charges are contained in a Complaint unsealed today in United States District Court in Cedar Rapids.
The Complaint alleges that, on or about February 23, 2015, Merchant provided a Walther HK MP5 22LR semiautomatic rifle to her son, D.W., a minor child. The Complaint further alleges that at the time Merchant provided D.W. the semiautomatic rifle, Merchant knew or had reasonable cause to believe that D.W. was an unlawful user of marijuana.
Allegations in the Complaint provide that on February 24, 2015, at approximately 6:19 p.m., police responded to the residence of Merchant in Vinton, Iowa, after receiving a 911 call that a shooting had taken place. When police arrived, they discovered that a 14 year old girl, E.R., had been shot in an upstairs bedroom. That bedroom belonged to D.W., Merchant’s 16 year old son. D.W. was present in his bedroom at the time of the shooting. Also present in the bedroom were J.H. and W.H., both 16 year old males.
The Complaint further alleges that the investigation revealed that at the time of the shooting, D.W. was an unlawful user of marijuana. Several associates of D.W.’s admitted to observing D.W. use marijuana in D.W.’s bedroom at some time during 2014 and 2015, prior to the shooting incident. A urine sample obtained on February 24, 2015, from D.W. tested positive for the presence of marijuana. During a subsequent interview, D.W. admitted to first smoking marijuana at the age of 14, and becoming a regular marijuana user at age 15.
Allegations in the Complaint also state that when Merchant provided the firearm to D.W. on or about February 23, 2015, she knew and had reasonable cause to believe, that D.W. was then an unlawful user of marijuana. Specifically, the Complaint alleges that on the night of the shooting, police observed indicators of drug and alcohol use in plain view in D.W.’s bedroom. That night, from D.W.’s bedroom police seized a marijuana smoking pipe, drug paraphernalia, approximately seven ounces of marijuana individually packaged into eight separate plastic bags, and drug packaging materials. During a subsequent interview, Merchant admitted to police that she was aware that D.W. was a marijuana user.
If convicted, Merchant faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
“Federal law prohibits certain people from possessing guns and ammunition,” said U.S. Attorney Techau. “Identifying and prosecuting those who knowingly provide guns to prohibited persons is a priority of this office and an important part of keeping our communities safe.”
Merchant appeared today in federal court in Cedar Rapids and was held in custody of the United States Marshals Service pending a detention hearing. Merchant’s next appearance for her detention hearing is set for February 18, 2016.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case was referred to the United States Attorney’s Office by local authorities and is being prosecuted by Assistant United States Attorney Lisa C. Williams. The case was investigated by the Vinton Police Department, the Iowa Department of Public Safety, the Department of Homeland Security, and the Bureau of Alcohol Tabaco and Firearms.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-MJ-31.
Follow us on Twitter @USAO_NDIA.
U.S. Attorney Ortiz Announces Creation of Civil Rights UnitRead the Press Release
BOSTON – United States Attorney Carmen M. Ortiz announced today the creation of a Civil Rights Unit whose primary focus will be the civil enforcement of federal civil rights laws in Massachusetts. The new unit, which will operate within the office’s Civil Division, will also collaborate with local community members, advocacy groups and other federal and state agencies in the area of civil rights.
“As U.S. Attorney protecting the civil rights of the residents of Massachusetts has been a top priority,” said U.S. Attorney Ortiz. “We are committed to ensuring a level playing field for all residents in the Commonwealth, advancing equal opportunity, and educating the public about their rights and responsibilities. I can think of no better way to further this mission than by creating a unit comprised of attorneys and staff who are dedicated solely to enforcing and promoting federal civil rights.”
“U.S. Attorney Ortiz has demonstrated her office's firm commitment to vigorous and robust civil rights enforcement,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department's Civil Rights Division. “Institutionalizing this Civil Rights Unit will help enhance our shared mission to ensure equal opportunity and equal justice for all of the communities we serve.”
The Civil Rights Unit (CRU) is charged with enforcing federal civil rights statutes that protect the rights of the most vulnerable and underserved members of our community. The unit will focus on enforcing those laws that prohibit discrimination and harassment on the basis of race, national origin, gender, religion and disability; prohibit police misconduct; protect the constitutional rights of institutionalized persons; protect the employment rights of servicemembers; and prohibit discrimination in housing and mortgage lending. The unit will be led by Assistant U.S. Attorney Jennifer A. Serafyn.
Today, U.S. Attorney Ortiz hosted two civil rights-focused roundtables. The first focused on fair housing issues and included key stakeholders from state and local advocacy organizations. The second roundtable discussion, which featured Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, concentrated on community-police relations with law enforcement officials and representatives from faith-based institutions and organizations serving the community.
Since 2010, the U.S. Attorney’s Office has actively investigated and resolved civil rights cases involving disability discrimination, fair housing, fair lending, and Veterans’ rights, among others. Several recent examples of the Office’s civil rights work include:
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An agreement with the City of Somerville resolving discrimination against a service member who was disadvantaged in his employment with the City’s Fire Department because of his military service;
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An agreement with Sage Bank, headquartered in Lowell, for engaging in a pattern or practice of discrimination on the basis of race and national origin in the pricing of its residential mortgage loans;
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Issued a Letter of Findings in the investigation into Massachusetts Department of Children and Families for denying opportunities, benefits, and services to a 21-year-old single mother who has a developmental disability;
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Filed Statement of Interest in private lawsuit alleging that Springfield Public Schools discriminated against hundreds of children with mental health disabilities by segregating them in a separate school;
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An agreement with edX, an online course provider, over the accessibility of its website;
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Initiated an Americans with Disabilities Act (ADA) compliance review of restaurants in the Seaport and Fort Point sections of Boston and hotels in Copley Square;
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An agreement with the Town of Ware Police Department in a case involving effective communication for a deaf person at the police station;
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An agreement with Clarendon Hill Towers, a Somerville apartment building, for violating the fair housing rights of a couple and their three children; and
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An agreement with the owners of a North Attleboro apartment complex for discriminating against families with children.
In addition to the Office’s vigorous investigation and prosecution of civil rights matters, the Civil Rights Unit also has actively been reaching out to the community and providing training on civil rights matters. For example, the Office commemorated the 25th anniversary of the ADA by hosting a roundtable discussion with disability rights advocates and celebrated the 50th anniversary of the Voting Rights Act by hosting a panel discussion on emerging voting rights issues. In honor of Veterans’ Day, the Office hosted a training for employers on the Uniformed Services Employment and Reemployment Rights Act (USERRA), and U.S. Attorney Ortiz presided at a ceremony honoring the dozens of veterans and servicemembers who work in the Moakley Federal Courthouse.
The Civil Rights Enforcement Team which U.S. Attorney Ortiz created in June 2010 will maintain responsibility for investigating and prosecuting criminal civil rights violations such as hate crimes, damage to religious property, deprivation and conspiring to deprive constitutional rights and human trafficking, including involuntary servitude, forced labor, and sex trafficking of children. Assistant U.S. Attorney Ted Merritt will continue to oversee the work of the Team.
For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights. For more information on the Department of Justice’s civil rights effort, please visit www.justice.gov/crt.
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Tribunal Federal Cierra Las Operaciones De Empresa De Preparación De Declaraciones De Impuestos De Extensión NacionalRead the Press Release
Un tribunal federal en Chicago ordenó a Servicios Latinos Inc. cerrar su empresa de preparación de declaraciones de impuestos en todo el país, anunció hoy el Departamento de Justicia. La orden surge después de que el Departamento de Justicia entablara una demanda civil contra la empresa y sus propietarios, Georgina Lopez, Pamela Miranda y Jorge A. Miranda, en la que alegaba que los demandados falsamente declararon obligaciones tributarias inferiores de sus clientes y exageraron el derecho de sus clientes a reembolsos tributarios. El interdicto también prohíbe a Lopez, Pamela Miranda y Jorge Miranda actuar como preparadores de declaraciones de impuestos federales, ser propietarios u ocuparse de las operaciones de empresas de preparación de declaraciones de impuestos y emplear a preparadores de declaraciones de impuestos. Los demandados aceptaron la presentación del interdicto, pero no admitieron los alegatos en la demanda.
De acuerdo con la demanda, Servicios Latinos atendía en alrededor de 84 locales en hasta 30 estados, con ubicaciones que incluían Kennet Square, Pensilvania; Kansas City, Misuri, y Las Vegas, Nevada. La demandaba alegaba que los empleados de los acusados prepararon declaraciones de impuestos a la renta que:
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Falsamente alegaban tener derecho a créditos tributarios por hijo;
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Falsamente alegaban tener derecho al Crédito Tributario por Ingresos del Trabajo;
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Declaraban categorías de contribuyentes falsas; y
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Declaraban cifras de ingresos y gastos incorrectas.
La demanda alega que Servicios Latinos ha preparado más de 42.000 declaraciones de impuestos a la renta federales desde 2012. El Servicio de Impuestos Internos [Internal Revenue Service (IRS)] estima que la pérdida sufrida por el Tesoro de EE.UU. debido a la conducta de los demandados supera los 4.7 millones de dólares solo para 2014, de acuerdo con la demanda.
El fraude de preparador de declaraciones de impuestos ha sido nombrado uno de los Doce ardides tributarios sucios del Servicio de Impuestos Internos [Internal Revenue Service (IRS)]. El IRS tiene en su portal algunos consejos para elegir un preparador de impuestos y ha lanzado un directorio sin cargo de preparadores de declaraciones de impuestos federales. En la última década, la División de Impuestos ha obtenido interdictos contra cientos de preparadores de impuestos inescrupulosos. Existe información sobre estos casos disponible en el portal del Departamento de Justicia. Se encuentra una lista alfabética de personas prohibidas de preparar declaraciones de impuestos y promover ardides tributarios en esta página. Si usted cree que una de las personas o empresas bajo prohibición puede estar violando un interdicto, por favor comuníquese con la División de Impuestos con detalles.
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Topeka Man Sentenced to Federal Prison for Armed RobberyRead the Press Release
TOPEKA, KAN. – A Topeka man was sentenced Tuesday to 43 months in federal prison for taking part in an armed robbery, U.S. Attorney Barry Grissom said.
Zennie Lee Vasser, II, 32, Topeka, Kan., pleaded guilty to one count of aiding and abetting armed robbery. In his plea, he admitted that on June 4, 2014, he was captured on video holding open the door while co-defendant Charles Steele brandished a firearm and forced a store clerk to give him money from the cash drawer of Check Into Cash at 3711 S.W. Plaza Drive in Topeka. Investigators learned that Vasser was present with Steele and Steele’s twin brother, Lamar Steele, planned the robbery. Vasser agreed to enter the store and engage the clerk while Charles Steele committed the robbery. Lamar Steel agreed to drive the getaway car.
Charles Steele is set for sentencing June 6. Lamar Steele is set for sentencing March 14.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Topeka Man Pleads Guilty to Federal Charge of Using A Gun in A RobberyRead the Press Release
KANSAS, KAN. – A Topeka man Tuesday pleaded guilty to a federal charge of using a gun to commit a robbery, U.S. Attorney Barry Grissom said.
Renard Alston, 20, Topeka, Kan., pleaded guilty to one count of using a firearm in a robbery. In his plea, he admitted that on Aug. 28, 2015, he sold a 9 mm pistol with an obliterated serial number for $400 to an undercover informant working with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Then Alston pointed a gun to the informant’s head and ordered the informant to give him everything he had. Alston kept the cash the informant had paid for the gun and took back the 9 mm pistol before fleeing the scene.
Sentencing is set for May 16. He faces a penalty of not less than five years in federal prison and a fine up to $250,000. Grissom commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Jared Maag for their work on the case.
Swedish Medical Center Surgical Tech/Technologist Indicted by Federal Grand Jury in Denver on Charges of Tampering with a Consumer Product and Obtaining a Controlled Substance by DeceitRead the Press Release
DENVER – Rocky Allen, age 28, of Denver, a now former surgical tech/technologist at Swedish Medical Center, has been indicted by a federal grand jury in Denver on charges of tampering with a consumer product and obtaining a controlled substance by deceit, U.S. Attorney John Walsh, Food and Drug Administration’s Office of Criminal Investigations’ Kansas City Field Office Special Agent in Charge Catherine Hermsen, and Drug Enforcement Administration (DEA) Special Agent in Charge Barbra Roach announced. Allen is in custody, and will appear at 2:00 p.m. this afternoon for an initial appearance before U.S. Magistrate Judge Kristen L. Mix in Denver where he will be advised of his rights and the charges pending against him.
According to the indictment, on January 22, 2016, Allen, with reckless disregard for the risk that another person will be placed in danger of bodily injury, and under circumstances manifesting extreme indifference to such risk, tampered and attempted to tamper with a consumer product, namely a syringe containing Fentanyl Citrate, by removing the syringe containing Fentanyl Citrate and replacing it with a similar syringe containing other substance. Further, Allen did knowingly and intentionally acquire and obtain a Fentanyl Citrate, a controlled substance, by deception and subterfuge.
As a result of Allen's action, Swedish Medical Center has asked approximately 3,000 patients who had surgery between August 17, 2015 and January 22, 2016 in the main operating rooms and in the orthopedic operating room on October 28, 2015 to be tested for HIV, Hepatitis B and Hepatitis C free of charge. Swedish Medical Center is following the recommendations for testing from the Health Department and the CDC based on the investigations' focus on an injectable medication.
Allen faces one count of tampering with a consumer product. If convicted on that count, he faces not more than 10 years in federal prison, and up to a $250,000 fine. He also faces one count of obtaining a controlled substance by deceit and subterfuge. If convicted on that count, he faces not more than 4 years in federal prison, and up to a $250,000 fine.
The criminal investigation into Allen’s conduct while working at Swedish Medical Center is ongoing. No additional information about the investigation or this case is available at this time.
This case was investigated by the FDA OCI and the DEA with substantial critical assistance from the Englewood Police Department. The defendant is being prosecuted by Assistant U.S. Attorneys Jaime Pena and Anna Edgar.
The charges contained in this indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Santa Fe Man Pleads Guilty to Heroin Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Phillip Lovato, 30, of Santa Fe, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to heroin trafficking and firearms charges, announced U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and New Mexico State Police Lt. Scott McFaul, the Commander of the HIDTA Region III Drug Task Force.
Lovato was arrested by the FBI on Feb. 10, 2015, on a criminal complaint charging him with distributing heroin, possessing heroin with intent to distribute, using and carrying firearms in furtherance of drug trafficking crimes, and being a felon in possession of a firearm and ammunition. According to the criminal complaint, Lovato sold heroin to a person working with law enforcement on Oct. 23, 2014 and Nov. 4, 2014. It also alleged that Lovato unlawfully possessed more than 40 grams of heroin and a firearm on Nov. 17, 2014, and more than 670 grams of heroin on Feb. 6, 2015. It also charged him with being a felon in possession of firearm on Feb. 10, 2015.
On Feb. 25, 2015, a federal grand jury returned a seven-count indictment against Lovato charging him with two counts of distributing heroin, two counts of possession of heroin with intent to distribute, two counts of being a felon in possession of firearms and ammunition, and one count of using and carrying a firearm in furtherance of a drug trafficking crimes. According to the indictment, Lovato committed these crimes in Santa Fe County.
Today Lovato entered guilty pleas to two counts of possession of heroin with intent to distribute, one count of using a firearm in furtherance of a drug trafficking crime, and one count of being a felon in possession of a firearm. In his plea agreement, Lovato admitted selling heroin from a residence on Alta Vista Street in Santa Fe on Nov. 17, 2014. On that day, Lovato was carrying a black backpack which contained heroin and a semi-automatic pistol that he used to protect the drugs he was carrying and the proceeds from his drug sales. Lovato admitted that after completing several drug transactions at the Alta Vista Street residence, he got into a pickup truck to go to another location where he intended to continue selling heroin. When the truck was stopped by law enforcement officers, Lovato admitted that he had heroin in the truck, and the officers seized 40 grams of heroin and the semi-automatic pistol from Lovato’s backpack.
Lovato admitted in his plea agreement that he subsequently acquired another firearm and additional heroin and resumed selling heroin in and around Santa Fe, storing his heroin and cash proceeds in a storage facility in Santa Fe. On Feb. 6, 2015, law enforcement officers executed a search warrant on the storage facility where they seized 665 grams of heroin and $49,242 in proceeds from Lovato’s heroin deals.
Lovato was arrested on Feb. 10, 2015, outside a residence in Santa Fe. Lovato admitted that before his arrest, he left a semi-automatic handgun inside the residence. Following Lovato’s arrest, law enforcement officers seized the handgun when they executed a consensual search of the residence. Lovato acknowledged knowing that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
Under the terms of the plea agreement, Lovato will be sentenced to ten years in federal prison to be followed by at least four years of supervised release. The plea agreement also requires Lovato to forfeit the two firearms seized from him during the investigation of the case. He also must forfeit the $49,242 seized from his storage unit in Feb. 2016. Lovato remains in federal custody pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Santa Fe office of the FBI and the HIDTA Region III Drug Task Force, and is being prosecuted by Assistant U.S. Attorney Timothy S. Vasquez.
The HIDTA – High Intensity Drug Trafficking Area – Program is a program of the White House Office National Drug Control Policy (ONDCP) that facilitates cooperation among federal, state, local and tribal law enforcement to foster intelligence sharing and to support the execution of effective enforcement operations aimed at dismantling drug trafficking organization in critical drug trafficking regions of the United States. The HIDTA Region III Narcotics Task Force is comprised of the New Mexico State Police, the Santa Fe County Sheriff’s Office and the Santa Fe Police Department.
Lovato, who has two prior drug trafficking convictions and an aggravated assault conviction, is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Santa Fe County, under this initiative.
This case also is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Rochester Man Pleads Guilty to Sex Trafficking ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. — U.S. Attorney William J. Hochul, Jr., announced today that Brandon McNeal, 24, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to commit sex trafficking of a minor. The charge carries a maximum penalty of life in prison and a fine of $250,000.Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that McNeal conspired with others to recruit a minor female, knowing she was under the age of 18, to engage in commercial sex acts. Between July and August of 2015, the defendant had a minor female working for him as a prostitute. McNeal posted ads for the female on Backpage.com, an internet classified advertising website. The defendant also arranged for her to meet her customers at a Motel 6 and he paid for the hotel room.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation's Child Exploitation Task Force, which includes the Rochester Police Department, the Monroe County Sheriff’s Office, and Immigration and Customs Enforcement, Homeland Security Investigations.
Sentencing is scheduled for May 16, 2016 at 3:00 p.m. before Judge Geraci.
Rigby Man Pleads Guilty to Illegal Gun Possession and Trafficking MethRead the Press Release
POCATELLO - Brian Kim Southam, 36, of Rigby, Idaho, pleaded guilty today to unlawful possession of a firearm and possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Southam was indicted by a federal grand jury in Pocatello on September 22, 2015.
According to the plea agreement, Southam admitted that on August 3, 2015, he unlawfully possessed four handguns, including a Taurus .380 caliber pistol, a Sig Sauer .45 caliber pistol, a Canik55 9mm pistol, and a Ruger .22 caliber pistol. He also admitted that he possessed with intent to distribute more than 1,200 grams of actual methamphetamine, recovered from his storage unit. The defendant was prohibited from possessing firearms due to a previous felony conviction for possession of a controlled substance in Bannock County, Idaho. Madison County Sheriff's deputies arrested the defendant on August 3, 2015, after he was found in possession of a vehicle reported stolen out of Butte, Montana.
The charge of unlawful possession of a firearm is punishable by up to 10 years in prison, a maximum fine of $250,000.00, and up to three years of supervised release. The charge of possession with intent to distribute 1,200 grams of methamphetamine is punishable by 10 years to life in prison, a maximum fine of $10,000,000.00, and up to five years of supervised release.
Sentencing is set for May 20, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Madison County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
This case was prosecuted by an Assistant U.S. Attorney in Pocatello, with sentencing handled by the new Special Assistant U.S. Attorney hired by the Eastern Idaho Partnership and the State of Idaho. The Eastern Idaho Special Assistant U.S. Attorney was hired to bolster ongoing efforts to prosecute regional drug trafficking, gun and gang violence, internet based crimes against children, and other serious crimes with a federal nexus. The Eastern Idaho Partnership is a collaboration of elected officials and law enforcement from 11 counties and 18 cities across eastern Idaho, in partnership with the Idaho Department of Correction and the U.S. Attorney’s Office.
Removed Alien Charged with Illegally Re-entering United StatesRead the Press Release
PITTSBURGH - A resident of Mexico, has been indicted by a federal grand jury in Pittsburgh on a charge of reentry of removed alien, United States Attorney David J. Hickton announced today.
The one-count indictment named Javier Morales-Bautista, 35, of Mexico as the sole defendant.
According to the indictment, the defendant, who was previously removed from the United States on Nov. 27, 2013 and Sept. 20, 2014, was found in Butler County, Pennsylvania, on Dec. 26, 2015 without having applied for or received permission to reenter the United States from the Secretary of the Department of Homeland Security.
The law provides for a maximum total sentence of 10 years in prison, three years supervised release, and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The Department of Homeland Security conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Registered Sex Offender Sentenced to More Than 20 Years in Prison for Transporting Minor Across State Lines for SexRead the Press Release
NEWARK, N.J. – A Mercer County, New Jersey, man was sentenced to 255 months in prison for transporting an underage boy across state lines for the purpose of engaging in sexual activity, U.S. Attorney Paul J. Fishman announced.
Jayme Shannon, 53 of East Windsor, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with interstate transportation of a minor for illicit purposes and doing so while being a registered sex offender. Judge Salas imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
In September 2013, Shannon met a 15-year-old boy in the internet chat room “Chatavenue.com,” and continued to communicate with the victim in September and October 2013.
On Oct. 14, 2013, Shannon arranged to meet the victim at the Skyview Motel in Fort Lee, New Jersey. After renting a motel room that morning, Shannon drove from New Jersey to New York, where he picked up the victim. Shannon then drove the victim from New York to the Skyview Motel and engaged in sexual conduct with the victim. Shannon was arrested later that day when Fort Lee police officers found him with the victim inside the motel.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Andrew Campi; the Bergen County Prosecutor’s Office, under the direction of Acting Prosecutor Gurbir S. Grewal; and the Fort Lee Police Department, under the direction of Chief Keith M. Bendul, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Ron Bar-Nadav Esq. and Benjamin Morton Esq., Hackensack, New Jersey
Reggie Rucker charged for using charitable donations to pay gambling debts, personal expensesRead the Press Release
Reggie Rucker was charged in federal court for allegedly using charitable donations to anti-violence groups he led to pay his gambling debts and personal expenses, including mortgage payments, meals, and entertainment, law enforcement officials said.
He was also charged with lying to the FBI during when questioned about his alleged diversion of charitable funds.
Rucker, 68, of Warrensville Heights and a former professional football player with the Cleveland Browns, was charged in a criminal information with one count of wire fraud and one count of making false statements to law enforcement.
“Reggie Rucker misused his celebrity and position in the community to dupe some of our most important local foundations and generous citizens,” said Acting U.S. Attorney Carole Rendon. “He stole from the very violence interrupters he so publically claimed to support. In one breath he begged generous donors to save Amer-I-Can and the Peacemakers Alliance, and in the next he stole that money to support his lifestyle and his gambling junkets in Cleveland, Florida, and Las Vegas, using the charity's account as his own ATM.”
“Mr. Rucker used his position of trust to help fund his gambling habits and personal expenses, and ultimately, he betrayed those that supported his work in the community,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The FBI will continue to work with our partners to identify and hold accountable those who chose to commit such fraud.”
Rucker served as executive director of Amer-I-Can Cleveland (Amer-I-Can), a nonprofit organization located in Shaker Heights. Rucker also served as president of the Cleveland Peacemakers Alliance (CPA), a collaboration of community organizations that employed outreach workers to resolve conflicts in Cleveland. Rucker solicited charitable contributions and deposited them into Amer-I-Can’s bank account, according to the information.
From 2011 through February 11, 2015, Rucker diverted funds intended to support Amer-I-Can and CPA for his personal use and in excess of any compensation he was entitled to receive. Rucker wrote checks to himself and made withdrawals from the Amer-I-Can bank account in amounts and frequencies unrelated to the work he performed, but rather dictated by his own personal financial needs, including to pay his mortgage, entertainment, meals, travel, groceries, and dry cleaning, according to the information.
In furtherance of his scheme, Rucker falsely told current and prospective donors that Amer-I-Can had an independent board of directors to provide oversight when it did not. Rucker also filed documents under the penalties of perjury with the Internal Revenue Service that significantly understated the amount of money he took from the Amer-I-Can bank account. He also falsely claimed to certain actual and prospective donors, “I do not have a salary with Amer-I-Can,” and “We don’t have any contracts that pay me…”, according to the information.
Rucker withdrew approximately $48,000 at casino ATMs in Tampa, Las Vegas, and Cleveland, from the Amer-I-Can bank account from 2011 to 2015, including over $35,000 in 2014 alone. He also paid multiple gambling debts he incurred at a Las Vegas casino totaling $65,000 using money donated to Amer-I-Can and CPA for charitable purposes, according to the information.
In January 2013, when an employee of a Cleveland-area foundation (identified in the charges as Foundation 1) informed Rucker that “The Board (of Foundation 1) has awarded $150,000…for Peacemakers Alliance. Congrats!!!”, Rucker forwarded the email to a Las Vegas casino that he owed $20,000, stating “this is my non profit and they were a little behind getting me my money. I will not actually have this in my hands for 10 days, maybe 14 . . . I like to keep communication open so that I don’t get into any trouble. Can they work with me on this?” On March 5, 2013, Amer-I-Can received $58,751.52 of Foundation 1’s charitable funds, and on March 12, 2013, Rucker wrote a check for $20,000, funded in part by Foundation 1’s donation to Amer-I-Can, to the Las Vegas Casino to pay his gambling debt, according to the information.
In January 2014, after receiving $47,500 from a donor identified in the information as Foundation 2, Rucker wrote himself two checks totaling $40,000 from the Amer-I-Can bank account, and used a portion of this money to pay an outstanding gambling debt of $25,000 to a Las Vegas casino, according to the information.
In September 2014, Rucker incurred a $20,000 debt at a Las Vegas casino. Between November 18 and December 1, 2014, Rucker wrote himself checks totaling approximately $21,200 from the Amer-I-Can bank account and paid the Las Vegas casino $15,000 of his debt. In January 2015, after Amer-I-Can received $47,500 from Foundation 2, Rucker wrote himself a check for $10,000 and paid the remaining $5,000 he owed the Las Vegas casino, according to the information.
Rucker repeatedly solicited grants and donations from foundations, corporations and executives, but failed to disclose his diversion of charitable funds. For example, on November 19, 2014, Amer-I-Can received $10,000 from an entity identified as Foundation 4. The next day, Rucker wrote himself a check for $10,000, but later submitted a report to Foundation 4 that stated: “We appreciated the bridge support granted to us by [Foundation 4], it was helpful in being able to assist high risk and gang affiliated youth. The continued support of [Foundation 4] will be instrumental…,” according to the information.
Rucker also repeatedly cited CPA outreach workers’ lack of pay to justify his requests for additional funds, but did not disclose his personal use of charitable funds. For example, Rucker solicited funds from Foundation 1, which provided approximately $2.45 million to CPA between 2011 and 2015, by claiming that CPA workers “believe they are being disrespected and taken advantage of . . . I can’t hold them together much longer. We have come too far, put too much into this . . . None of us has money!”, according to the information.
This case is being prosecuted by Assistant U.S. Attorneys Adam Hollingsworth and Miranda Dugi following an investigation by the Federal Bureau of Investigation.
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 information 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.
Poplar Grove Woman Charged in Stolen Identity Fraud SchemeRead the Press Release
ROCKFORD — A Poplar Grove, Ill. resident was indicted in federal court in Rockford on charges of mail fraud, aggravated identity theft, and access device fraud, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, and U.S. Attorney Zachary T. Fardon of the Northern District of Illinois.
According to the indictment, SHAMEKA CARR filed fraudulent tax returns using stolen identities. Carr directed the anticipated tax refunds to prepaid debit cards and to federal income tax refund checks. She caused those items to be mailed to addresses that she had access to in Rockford, Ill. and surrounding areas. Carr used the cards and checks to enrich herself.
Each count of mail fraud carries a maximum sentence of 20 years in prison. Access device fraud carries a maximum sentence of 15 years in prison. Each count of aggravated identity theft carries a mandatory sentence of two years in prison. In addition, each count carries potential fines and restitution.
Acting Assistant Attorney General Ciraolo commended special agents of the United States Postal Service and IRS-Criminal Investigation and the Boone County Sheriff’s Department, who investigated the case, and Trial Attorneys Michael C. Boteler and John T. Mulcahy of the Tax Division, who are prosecuting the case.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Parkersburg felon sentenced for Federal drug and gun crimesRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man was sentenced today to two years and three months in federal prison for distribution of heroin and crack, and for being a felon in possession of a firearm, announced Acting United States Attorney Carol Casto. James Miller Johnson, III, 27, previously pleaded guilty in September 2015 to the federal drug and gun charges.
Johnson admitted that on August 14, 2014, he sold heroin and crack in Parkersburg to a confidential informant working with law enforcement. When Johnson was arrested on the drug charge near Vienna on November 19, 2014, law enforcement found Johnson with a Colt .45 Gold Cup National Match semiautomatic pistol. Johnson was prohibited from possessing any firearm under federal law because of a 2009 felony conviction in Logan County, Ohio, for drug possession.
The Parkersburg Narcotics Task Force, the Vienna Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Timothy D. Boggess handled the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
This case was also prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Pair Indicted for Using Internet Dating Site for Wire Fraud SchemeRead the Press Release
Oklahoma City, Oklahoma – Today, a federal grand jury has indicted KEN EJIMOFOR EZEAH, 33, from Nigeria, and AKUNNA BAIYINA EJIOFOR, 31, a resident of Houston, Texas, for conspiracy to commit wire fraud and wire fraud, announced Mark Yancey, Acting United States Attorney for the Western District of Oklahoma.
According to the indictment, defendants and their co-conspirators would use false profile information to open user accounts on online dating web sites and contact other users under the guise of forming an online relationship. Instead, it is alleged, the contact was actually for the purpose of attempting to scam money from other users by claiming to be successful financial advisors or affiliated with charitable causes.
It is alleged the defendants used telephone calls, cell phone text messages, and messages through the dating web site in order to further the illusion that a genuine relationship was developing. As the online relationship progressed, it is alleged, the defendants would make inquiries about their potential victim’s finances and investments and claim to have inside information, such as knowledge that the victim’s investment firm was under investigation by government authorities or was financially unsound. Ultimately, it is alleged, the defendants would use these false claims to persuade the victims that their money or investments were unsafe and cause the victims to wire money to the defendants. In reality, it is alleged, the defendants kept the victim’s money for themselves. Specifically, the indictment alleges that the defendants used this scheme to cause one victim from Oklahoma City to wire $500,000 on May 11, 2015, and another $501,000 on May 14, 2015, from her bank account to Barclays Bank in London.
Ezeah and Ejiofor were been charged by criminal complaint and were arrested in Houston, Texas, on January 27, 2016.
If convicted, Ezeah and Ejiofor each face up to 20 years in prison and a $250,000 fine. The public is reminded that the indictment is merely an accusation and that the defendants are presumed innocent unless and until proven guilty. Reference is made to court records for further information.
This case is the result of an investigation by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Tim Ogilvie.
PTC Inc. Subsidiaries Agree to Pay More Than $14 Million to Resolve Foreign Bribery ChargesRead the Press Release
Two subsidiaries of Massachusetts software company PTC Inc. entered into a non-prosecution agreement and agreed to pay a $14.54 million penalty today to resolve the government’s investigation into whether the companies improperly provided recreational travel to Chinese government officials in violation of the Foreign Corrupt Practices Act (FCPA), announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
According to admissions made in the resolution documents, Parametric Technology (Shanghai) Software Company Ltd. and Parametric Technology (Hong Kong) Ltd. (collectively, PTC China), through local business partners, arranged and paid for employees of various Chinese state-owned enterprises to travel to the United States, ostensibly for training at PTC Inc.’s headquarters in Massachusetts, but primarily for recreational travel to other parts of the United States, including New York, Los Angeles, Las Vegas and Hawaii. PTC China paid a total of more than $1 million through its business partners to fund these trips, while during the same time period, PTC China entered into more than $13 million in contracts with the Chinese state-owned entities. Company employees typically accompanied the Chinese officials on these trips. PTC China admitted that the cost of these recreational trips was routinely hidden within the price of PTC China’s software sales to the Chinese state-owned entities whose employees went on the trips.
As part of the non-prosecution agreement, PTC China agreed to pay the criminal penalty, to continue to cooperate with the department, to enhance its compliance program and to periodically report to the department on the implementation of its enhanced compliance program. The department reached this resolution based on a number of factors. Among other factors, PTC China did not receive voluntary disclosure credit or full cooperation credit because, at the time of its initial disclosure, it failed to disclose relevant facts that it had learned in connection with a prior internal investigation and did not disclose those facts until the department uncovered additional information independently and brought them to PTC China’s attention. By the conclusion of the investigation, however, the companies had provided to the department all relevant facts known to them, including information about individuals involved in the FCPA misconduct.
In a related matter, PTC Inc. reached a settlement today with the U.S. Securities and Exchange Commission (SEC) under which it agreed to pay $11,858,000 in disgorgement plus $1.764 million in prejudgment interest. Thus, the approximately $28 million in combined penalty and disgorgement far exceeds the $13 million in contracts associated with the improper payments.
The FBI’s Boston Field Office investigated the case. Trial Attorney Aisling O’Shea of the Criminal Division’s Fraud Section prosecuted the case. The U.S. Attorney’s Office of the District of Massachusetts and the SEC also provided assistance during the investigation.
Ohio man sentenced to Federal prison for role in Detroit-to-Huntington heroin schemeRead the Press Release
HUNTINGTON, W.Va. – A South Point, Ohio, man who participated in a heroin conspiracy in 2014 and 2015 was sentenced today in federal court, announced Acting United States Attorney Carol Casto. Dustin S. Barton, 19, was sentenced to a year and a day in federal prison after previously pleading guilty to distributing heroin. Barton was the seventh participant in the drug scheme to be sentenced.
From the summer of 2014 to January 2015, Barton participated in a conspiracy led by Kenneth E. Baxter that transported heroin from Detroit to Huntington for distribution. Once in Huntington, Barton assisted Sean L. Gist and Ramone L. Wells by transporting heroin to various locations and distributing heroin to customers when directed by Gist and Wells. On January 28, 2015, Barton met with a confidential informant at Harris Riverfront Park in Huntington and distributed heroin to the informant on behalf of Gist.
Multiple defendants have been convicted of drug offenses as a result of the investigation. Those sentenced to federal prison include Baxter, who was sentenced to seven years and three months; Coty S. Richardson, who was sentenced to five years and ten months; Gist, who was sentenced to five years and three months; Wells, who was sentenced to four years; and Pricilla Lee Dylan, who was sentenced to two years and nine months. Paul A. Roberts, Jr., was sentenced to five years of probation for assisting the group in securing a residence to conduct drug deals.
Also as part of this drug investigation, Warren G. Howard, Jr., pleaded guilty in December 2015 to distributing heroin. Howard faces up to 20 years in federal prison and a $1 million fine when he is sentenced on March 7, 2016.
The Huntington FBI Drug Task Force, the United States Postal Service, the West Virginia State Police, and the Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Ohio Man Convicted for Engaging in Child Exploitation EnterpriseRead the Press Release
A federal jury found a Hamilton, Ohio, man guilty of one count of engaging in a child exploitation enterprise, one count of conspiracy to advertise child pornography and one count of conspiracy to distribute child pornography.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney James A. Lewis of the Central District of Illinois and Special Agent in Charge Sean Cox of the FBI’s Springfield, Illinois, Division made the announcement.
Evidence at trial established that Jason Gmoser, 36, acted as a member and co-administrator of an Internet website through which Gmoser and others posted thousands of messages containing images of sexual exploitation involving pre-pubescent children. The website’s users also employed advanced technological means in order to undermine law enforcement’s attempts to identify them.
Gmoser was arrested on Oct. 16, 2014, following a court-authorized search of his home in Hamilton. A forensic examination of computers and devices seized pursuant to that search found he was in possession of millions of files depicting the sexual exploitation of children. Sentencing is scheduled for June 13, 2016.
The FBI’s Springfield Field Office and the FBI’s Violent Crimes against Children Section, Major Case Coordination Unit and Digital Analysis and Research Center led the investigation of this case. Trial Attorney Keith Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Elly Peirson of the Central District of Illinois prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
New Hampshire Man Found Guilty of Domestic Violence and Firearm Charges Arising Out of Saco Home InvasionRead the Press Release
Contact: Darcie N. McElwee
James W. Chapman, Jr.
Assistant United States Attorneys
Tel: (207) 280-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Gregory Owens, 59, of Londonderry, New Hampshire, was found guilty today by a jury in U.S. District Court of interstate domestic violence and discharging a firearm during and in relation to a crime of violence in connection with a home invasion shooting in Saco, Maine on December 18, 2014.
According to court records, on that date, Owens drove from New Hampshire to Maine intending to kill his wife who was an overnight guest at the home of friends living in Saco. During the home invasion, Owens shot his wife and the male home owner with a 9mm pistol. Both survived their injuries.
Owens faces up to 20 years in prison on the interstate domestic violence charge because the jury found that life threatening bodily injury occurred and no less than ten years and up to life on the firearm charge, which must be served consecutively. He also faces a $250,000 fine on each count.
The investigation was conducted by the Saco Police Department; the Maine and New Hampshire State Police; the Federal Bureau of Investigation; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Middletown Man Admits Robbing 6 Connecticut BanksRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MATTHEW DRAGONE, 31, of Middletown, waived his right to indictment and pleaded guilty today in New Haven federal court to one count of bank robbery and admitted that he robbed or attempted to rob a total of seven Connecticut banks last summer.
According to court documents and statements made in court, DRAGONE robbed the Webster Bank at 145 Highland Avenue in Cheshire on August 12, the TD Bank at 1127 Farmington Avenue in Berlin on August 13, the Liberty Bank at 151 Main Street in Deep River on August 17, the TD Bank at 25 Wells Road in Wethersfield on August 31, the Webster Bank at 377 Cromwell Avenue in Rocky Hill on September 9 (attempt), the Liberty Bank at 357 Main Street in Durham on September 3, and the TD Bank at 184 Clinton Road in Killingworth on September 11. During each of the robberies, DRAGONE, wearing a baseball cap and dark sunglasses and holding a cellphone to his ear, presented a teller with a bank-style bag affixed with a note that demanded money.
On September 16, 2015, a search of DRAGONE’s residence revealed clothing and sunglasses consistent with those worn during the Durham robbery on September 3, as well as a bank-style bag consistent with the one used during several of the bank robberies.
DRAGONE was arrested on September 18, 2015, and is released on a $50,000 bond. He is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on May 13, 2016, at which time he faces a maximum term of imprisonment of 20 years.
This investigation has been conducted by the FBI, the Connecticut State Police and the Middletown, Cheshire, Berlin, Wethersfield, and Rocky Hill Police Departments, with the assistance of the Connecticut Department of Emergency Services and Public Protection, Division of Scientific Services. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Mexican National Sent to Prison for Importing Nearly $2 Million in MethRead the Press Release
McALLEN, Texas – A 43-year-old Mexican national has been ordered to federal prison following his conviction of importing 75 kilograms of methamphetamine into the country hidden within a load of squash and cactus, announced U.S. Attorney Kenneth Magidson. Daniel Salvador Gomez-Reyes pleaded guilty Oct. 29, 2015.
Today, U.S. District Judge Randy Crane handed Gomez-Reyes a 72-month sentence, noting the significant weight of the methamphetamine that Gomez-Reyes brought into the United States. As an illegal alien, Gomez-Reyes is expected to face deportation proceedings following his release from prison.
On March 31, 2015, Daniel Salvador Gomez-Reyes was intercepted by federal agents while was driving a semi-truck loaded with squash and cactus into the Pharr port of entry from Mexico. Upon investigation, federal agents soon discovered 75 kilograms of methamphetamine hidden within false compartments in the pallets under the produce. Gomez-Reyes admitted he picked up the narcotics-laden produce under suspicious circumstances in Mexico and that he knew he was importing controlled substances into the U.S.
The estimated value of the load of methamphetamine is estimated to be approximately $1.98 million.
Gomez-Reyes will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by Homeland Security Investigations and Customs and Border Protection. Assistant U.S. Attorneys David A. Lindenmuth and Alexandro Benavides are prosecuting the case.
Los Ranchos Woman Sentenced for Robbing Bank in Albuquerque in March 2015Read the Press Release
ALBUQUERQUE – Denise Romero, 28, of Los Ranchos, N.M., was sentenced in federal court today to 37 months in prison for robbing the New Mexico Bank & Trust branch located on 4th Street NW in Albuquerque, N.M., in March 2015. She will be on supervised release for three years after completing her prison sentence. Romero also was ordered to pay full restitution to the bank.
Romero was arrested on March 20, 2015, on a criminal complaint alleging that she robbed the New Mexico Bank & Trust branch on March 16, 2015. According to the complaint, Romero approached the bank teller with a note to the teller suggesting that Romero had a gun. Romero used the money from the bank robbery to bail her boyfriend out of jail.
Romero was indicted on April 14, 2015, and charged with bank robbery. On Aug. 11, 2015, Romero pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and was prosecuted by Assistant U.S. Attorney Rumaldo R. Armijo.
Las Vegas man sentenced for participation in drug trafficking and money laundering conspiracies violationsRead the Press Release
Anchorage, Alaska –U.S. Attorney Karen L. Loeffler announced that, on Feb. 12, 2016, a Las Vegas man was sentenced by U.S. District Judge Sharon L. Gleason to 13 years in prison for his participation in a drug trafficking conspiracy involving methamphetamine and a related money laundering conspiracy.
Billy “Red Dollaz” Cooks, 38, of Las Vegas, Nevada, previously pled guilty to conspiring with his co-defendant and girlfriend, E’lala Frank, also of Las Vegas, and others to distribute and to possess with the intent to distribute 50 grams or more of methamphetamine. Cooks also pled guilty to conspiring with Frank to launder the illicit proceeds from his drug trafficking activity.
According to Assistant U.S. Attorney Timothy D. Edmonds, who handled the sentencing hearing, United States Postal Inspectors in Anchorage intercepted a suspicious package sent from Las Vegas to an address in Anchorage on Jan. 22, 2014. Once a drug detecting canine positively indicated for the presence of controlled substances inside the package, Inspectors obtained a search warrant for the parcel. Inside, Inspectors found what was ultimately determined to be 443.5 grams of methamphetamine. At that time, Inspectors removed the methamphetamine from the package, replaced it with an imitation substance, and prepared to deliver the package to the recipient address.
The next day, on Jan. 23, 2014, in a joint operation between the Drug Enforcement Administration (DEA), Internal Revenue Service (IRS), and United States Postal Inspection Service (USPIS), investigators conducted surveillance at the parcel’s recipient address, as an undercover Inspector delivered the package to the residence. The package was accepted at the door by a man identified as Dawud Johnson of Anchorage. Shortly after receiving the package, Johnson departed the residence in a vehicle and was followed by investigators. Minutes later, investigators observed Johnson throw the package out of the window of his vehicle. Johnson was arrested shortly thereafter at a nearby shopping center.
A subsequent review of Johnson’s telephone records revealed communication between Johnson and “Red Dollaz” in the days leading up to the shipment of the package of methamphetamine from Las Vegas to Johnson in Anchorage. Further investigation confirmed that “Red Dollaz” was Billy Cooks. Review of Johnson’s phone records also uncovered communication between Johnson and Cooks regarding a bank transaction involving a Wells Fargo bank account in Frank’s name. Investigator’s review of these records, as well as banking information for Frank’s account, indicated that Johnson deposited cash into the account that was subsequently withdrawn at an ATM in Henderson, Nevada, near Las Vegas. Continued investigation into banking records, bank security footage, and security footage from the United States Postal Service confirmed that Frank had mailed the package of methamphetamine on Cooks’ behalf and that Cooks, Johnson, and Frank had moved various amounts of money through Frank’s bank account.
Johnson previously received a sentence of 15 years in prison for his participation in this scheme.
In sentencing Cooks, Judge Gleason commented that she felt Cooks’ drug trafficking activity was primarily motivated not by the defendant’s own addiction, as the defendant suggested, but by greed. Judge Gleason also reflected for some time about the extremely damaging effects of methamphetamine on the Anchorage community, characterizing the defendant’s drug trafficking offense as a particularly troubling one. Judge Gleason also held Cooks responsible for getting Frank involved in facilitating the laundering of his drug trafficking proceeds.
“Trafficking in methamphetamine is not a victimless crime,” said First Assistant U.S. Attorney Kevin R. Feldis. “Meth can be highly addictive and highly damaging to the human brain. Nobody should be allowed to profit by doing harm to others and to the community, and their sentence reflects that fact.”
In announcing the sentence, U.S. Attorney Loeffler commended the work of the DEA, IRS, and USPIS, who jointly investigated the case.
Kansas Man Pleads Guilty to Defrauding InvestorsRead the Press Release
KANSAS, KAN. – An Overland Park man pleaded guilty Tuesday to defrauding investors in his businesses, U.S. Attorney Barry Grissom said.
Richard Ballard, 67, Overland Park, Kan., pleaded guilty to one count of wire fraud. In his plea, he admitted that he diverted $99,649 from companies he owned and used the investment proceeds for his personal benefit.
From March 2007 to September 2008 approximately 18 individuals or couples invested approximately $1.2 million into Ballard’s business ventures, including CRB Group, LLC; CRB Springwater, LLC; CRB Biosoft, LLC; CRB Holdings, LLC; and JHS Foods, LLC. He solicited working capital from investors for CRB Springwatter, LLC, to develop environmentally friendly bottled water and CRB Biosoft, LLC, to produce environmentally friendly pet chews.
Ballard wired a total of $125,000 from an account in New York to an account he controlled in Kansas. In the next few days, he engaged in 20 debit transactions totaling $99,649 by which he diverted corporate proceeds to other companies that he owned and used the investment proceeds for his personal benefit.
Sentencing is set for May 16. The parties have agreed to recommend 27 months in federal prison and restitution to be determined by the court.
Grissom commended the FBI and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Justice Department Settles Employment Discrimination Lawsuit Against City of Chicago Police DepartmentRead the Press Release
The Department of Justice announced today that it has reached a settlement agreement with the city of Chicago to resolve allegations that the Chicago Police Department (CPD) discriminated against entry-level police officer applicants on the basis of national origin, in violation of Title VII of the Civil Rights Act of 1964.
In a joint motion filed today in the U.S. District Court for the Northern District of Illinois, the Justice Department and the city requested that the court enter a provisional order that sets forth the terms of the settlement agreement, including more than $2 million in back pay, a number of priority hires and pension benefits. The motion also asks the court to schedule a fairness hearing, an opportunity provided by Title VII for those affected by the proposed agreement to comment on the settlement.
The proposed settlement, once approved by the district court, will resolve the complaint filed on Feb. 5, 2016. In that complaint, the Justice Department alleged that during its 2006 hiring cycle, the city used a 10-year continuous U.S. residency requirement to screen entry-level police officer applicants. The department further alleged that the residency requirement disproportionately removed applicants born outside of the United States from consideration in the hiring process and was not related to the job. Title VII prohibits discrimination in employment on the basis of race, color, sex, national origin or religion, whether the discrimination is intentional or involves the use of employment practices that have a disparate impact and are not job related and consistent with business necessity. This settlement is distinct from the department’s investigation into allegations concerning the Chicago Police Department’s methods of policing and its practices with respect to the use of force; that investigation remains ongoing.
“When brave men and women aspire to serve their communities as police officers, hiring procedures must evaluate the skills they need on the job, not where they come from or what they look like,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This agreement avoids costly litigation, provides relief for job applicants who suffered from discrimination and helps the Chicago Police Department refocus on fair hiring practices going forward.”
“Removing unlawful barriers to employment continues to be a top priority of the EEOC,” said Director Julianne Bowman of the EEOC’s Chicago District. “We are pleased that the successful collaboration between the Justice Department and the EEOC removed one such barrier and produced positive results for those who were unjustly denied police officer positions in the Chicago Police Department.”
Chicago no longer uses the 10-year continuous U.S. residency requirement challenged by the department. In addition to back pay and priority hiring relief for some applicants, the settlement agreement would require the city to evaluate whether its current five-year continuous U.S. residency requirement complies with Title VII and to provide Title VII compliance training to personnel involved in Chicago Police Department hiring. All priority hires must meet the city’s lawful selection criteria for qualified entry level police officers.
The case was brought by Trial Attorneys Valerie Meyer, Kathleen Lawrence and Carol Wong of the Civil Rights Division’s Employment Litigation Section. Enforcement of federal employment discrimination laws is a top priority for the Justice Department. Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
Chicago Proposed Consent Judgment
Irving Man Man Sentenced to 17 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS —Javier Gallegos, 49, of Irving, Texas, was sentenced this afternoon by U.S. District Judge Sam A. Lindsay to 204 months (17 years) in federal prison, following his guilty plea in October 2015 to one count of transportation of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
After serving his sentence, Gallegos will be referred to U.S. Immigration officials for deportation proceedings.
According to documents filed in the case, the investigation began in December 2014 when a detective with the Plano Police Department, working in an undercover capacity, noticed that a computer with a specific IP address was making files, with names indicative of child pornography, available for sharing. Between December 5 and December 6, 2014, the detective downloaded 30 files, including 27 videos, of child pornography depicting the sexual abuse of minor children.
Law enforcement executed a search warrant at Gallegos’s home in March 2015, and Gallegos, who was home at the time, admitted that for approximately two years, he had used a file-sharing program on the Internet to obtain child pornography. A forensic analysis of Gallegos’s laptop computer revealed that Gallegos had used the file-sharing program to share approximately 234 files and that the majority of those files had names consistent with child pornography. The forensic analysis further revealed that Gallegos had 25 videos of child pornography on his laptop computer and thumb drive, with some depicting sadistic and/or violent content.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Plano Police Department investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
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Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Lynch in Missoula on February 12, 2016 and entering pleas of Not Guilty were:
- SALVADOR ANDAYA CURIEL, a 28-year-old resident of California, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charge contained in the indictment, CURIEL faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and Homeland Security Investigations. PACER Case Reference. 15-01
Appearing before U.S. Magistrate Lynch in Missoula on February 11, 2016 and entering pleas of Not Guilty were:
- RICHARD CHARLES SAARI, a 32-year-old resident of East Helena, appeared on charges of sexual exploitation of children, and receipt of child pornography. If convicted of the most serious charge contained in the indictment, SAARI faces 30 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation, Internet Crimes Against Children Task Force, Helena Police Department, Lewis and Clark County Sheriff’s Office, East Helena Police Department, Homeland Security Investigations and Montana Division of Criminal Investigation. PACER Case Reference. 16-01
Appearing before U.S. Magistrate Johnston in Great Falls on February 10, 2016 and entering pleas of Not Guilty were:
- JEROME DALE FOLLET, SR., a 26-year-old resident of Poplar, appeared on charges of felony child abuse. If convicted of the charge contained in the indictment, FOLLET faces 10 years in prison, $50,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice. PACER Case Reference. 16-12
- RAMON TROY WHITE BEAR, a 22-year-old resident of Poplar, appeared on charges of assault resulting in serious bodily injury. If convicted of the charge contained in the indictment, WHITE BEAR faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice. PACER Case Reference. 16-08
Appearing before U.S. Magistrate Johnston in Great Falls on February 9, 2016 and entering pleas of Not Guilty were:
- PAUL OLDCHIEF, a 36-year-old resident of Browning, appeared on charges of assault resulting in serious bodily injury and assault with a dangerous weapon. If convicted of the most serious charge contained in the indictment, OLDCHIEF faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-11
- DEREK JAMES RIGHT HAND, an 18-year-old resident of Browning, appeared on charges of aggravated sexual abuse. If convicted of the charge contained in the indictment, RIGHT HAND faces life in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-13
Appearing before U.S. Magistrate Ostby in Billings on February 9, 2016 and entering pleas of Not Guilty were:
- GENE ANDREW TUFTON, a 44-year-old resident of Dagmar, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and conspiracy to commit money laundering. If convicted of the most serious charges contained in the indictment, TUFTON faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation and the HIDTA . PACER Case Reference. 16-05
Appearing before U.S. Magistrate Ostby in Billings on February 5, 2016 and entering pleas of Not Guilty were:
- EDWARD LEE DONNES, a 53-year-old resident of Belgrade, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, DONNES faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 16-12
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Illinois Woman Charged in Stolen Identity Tax Fraud SchemeRead the Press Release
A Poplar Grove, Illinois resident was indicted by a federal grand jury today on six counts of mail fraud, six counts of aggravated identity theft and one count of access device fraud, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Zachary T. Fardon of the Northern District of Illinois.
According to the indictment, Shameka Carr filed fraudulent tax returns with the Internal Revenue Service (IRS) in the names of individuals whose identities she had stolen. Carr is alleged to have directed the IRS to issue the tax refunds requested on these fraudulent returns in the form of prepaid debit cards and U.S. Treasury checks, both of which were mailed to addresses she had access to in Rockford, Illinois, and surrounding areas. It is further alleged that Carr used the debit cards and U.S. Treasury checks for her personal benefit.
If convicted, Carr faces a statutory maximum sentence of 20 years in prison for each mail fraud count, 15 years in prison for the charge of access device fraud and a mandatory sentence of two years in prison for each count of aggravated identity theft, which would be in addition to any other term of imprisonment she receives. Carr also faces potential fines and restitution.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo commended the U.S. Postal Inspection Service, IRS Criminal Investigation and the Boone County Sheriff’s Department, who investigated the case and Trial Attorneys Michael C. Boteler and John T. Mulcahy of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Husband & Wife Indicted for Conspiracy to Commit Mail Fraud by Filing Fraudulent Alien Income Tax ReturnsRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that a federal grand jury in Greenville returned an Indictment charging, PERFECTO RUANO, 56, and WALDA LUNA, 45, both of Wallace, North Carolina, of conspiracy to commit mail fraud by filing fraudulent income tax returns with the United States Department of Treasury. LUNA was also charged with three counts of filing false personal income tax returns, two counts of mail fraud and two counts of aggravated identity theft. According to the Indictment, LUNA falsely claimed two individuals as her dependents and failed to report all of her business income.
Thomas J. Holloman, IRS Special Agent in Charge of the Charlotte field office, said "tax refund fraud is a serious crime, and while the conduct detailed in the Indictment is an allegation, it outlines a complex, criminal scheme to defraud the Internal Revenue Service and the hard working American taxpayers.
“Tax fraud is an outrage to hard-working Americans everywhere who fulfill their obligation to society by paying their fair share,” said Special Agent in Charge of Homeland Security Investigations Atlanta Field Office Nick S. Annan. “Criminals who attempt to cheat the system and steal from law-abiding citizens will continue to be a major priority for HSI.”
According to the criminal complaint filed on January 5, 2016, RUANO and LUNA used post office boxes and physical addresses controlled by them to obtain more than one million dollars in fraudulent refunds from the Internal Revenue Service (IRS) through a program designed for individuals earning income in the United States, who are not eligible to obtain social security numbers but can obtain an Individual Tax Identification Number (ITIN). An ITIN can be obtained from the IRS by presenting original or certified copies of foreign identification documents to include passports, birth certificates and school records. The ITIN applicant must also establish a tax purpose, which is usually satisfied by filing an income tax return reflecting income earned in the United States by that individual. Dependents claimed on those returns, which are not eligible for a SSN, may also obtain an ITIN.
LUNA, who owned and operated a retail store in Wallace, had been licensed by the North Carolina Commission of Banks to cash checks. According the the criminal complaint, between January 2009 and May 2012, 2,760 U.S. Treasury refund checks with a total face value of $12,104,825.90 were deposited into a bank account controlled by the defendants. During this same time frame, LUNA withdrew $11,888,300 in cash by writing checks to cash.
On or about May 2014, the couple was stopped by the Arkansas State Police as they were driving west on Interstate 40. The police found $1,789.520 in cash in the vehicle. Most of the cash had been wrapped into nine large bundles and hidden in two safes and a cardboard box. The following day, the Duplin County Sheriff’s Office observed, in the couple’s Wallace residence, three empty cardboard boxes partially wrapped in packing tape consistent in shape and size to the bundles of currency seized from the vehicle in Arkansas. The Duplin County deputies also seized documents from their residence consistent with use for tax preparation services, foreign identification documents issued by the Republic of Honduras and Guatemala to individuals other than RUANO and LUNA, and over 300 ITIN letters issued by the IRS to individuals other than RUANO and LUNA. A laptop computer was seized from LUNA’S retail store, which contained tax files for fraudulent ITIN returns filed with the IRS. Refund checks were issued for 75 of these fraudulent ITIN returns and were deposited into the couple’s bank account.
The maximum penalty the couple can receive for the conspiracy charge is 20 years’ imprisonment. LUNA faces additional penalties for the other charges, including two mandatory minimum sentences of two years for each of the aggravated identity theft charges. The Indictment also seeks forfeiture of the monies seized in Arkansas, several tracts of land owned by the defendants in Duplin County and a money judgment of at least $2,944,799. United States Magistrate Judge Robert Jones previously ordered the couple detained pending trial.
The Internal Revenue Service – Criminal Investigations has led the investigation of this case with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Postal Inspection Service, and the Duplin County Sheriff’s Office.
Honduran National Sentenced for Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JEYSEE BARAHONA-FLORES, age 30, a native of Honduras, was sentenced today on a one-count Indictment for illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
U.S. District Judge Jane Triche Milazzo sentenced BARAHONA-FLORES to time served, which was five months. According to court documents, on October 6, 2015, the defendant was encountered by federal agents outside of a residence in Kenner. BARAHONA-FLORES had previously been removed from the United States on September 23, 2011.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Fort Pierce Resident and Three Time Convicted Felon Sentenced to 70 months in Prison for Possession of Sawed-off Shotgun and AmmunitionRead the Press Release
Ezra L. Ealy, 21, a convicted felon, was sentenced to 70 months in prison for possessing a sawed off shotgun and ammunition while on the streets of Fort Pierce by U.S. District Court Judge Kenneth A. Marra, sitting in Fort Pierce.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, and Diane Hobley-Burney, Chief, Fort Pierce Police Department (FTPPD), made the announcement.
Ealy, a Fort Pierce resident, was charged by indictment with being a felon in possession of a firearm and ammunition on July 13, 2015, in violation of Title 18, United States Code, Section 922(g)(1). Ealy faced a maximum statutory penalty of ten years in prison.
According to the allegations contained in court filings and detention hearing testimony, on July 13, 2015, an ATF Special Agent and a FTPPD Detective responded to a radio call of shots being fired by a large bearded male with a shotgun in the area of 31st & Avenue F in Fort Pierce, Florida. Upon arrival, the law enforcement officers observed Ealy, who fit the description, running away from the site of the call. During their pursuit, the agents observed Ealy stop, and open and close the lid of a recycling bin. Thereafter, agents recovered a sawed off Winchester 12 gauge shotgun in the trash bin. After his apprehension, agents recovered two (2) unspent Winchester shotgun shells from Ealy’s pocket, and one spent shotgun shell from the chamber of the shotgun. Fingerprints also linked Ealy to the shotgun.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is a Department of Justice nationwide initiative that combines traditional law enforcement activities with community-based support and intervention programs. The two primary goals of the PSN initiative are to reduce and prevent violent crimes and to help past offenders adjust and re-enter the community. This program emphasizes and facilitates cooperative federal, state and local prosecution of firearm crimes, violent criminals, repeat violent offenders and gang related criminal activity.
Mr. Ferrer commended the investigative efforts of ATF and the Fort Pierce Police Department. This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
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.
Fort Myers Man Sentenced for Check-Kiting Bank Fraud SchemeRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Roger Eugene Hagood (44, Fort Myers) to four years in federal prison for bank fraud. As part of the sentence, the Court also entered a money judgment in the amount of $677,722, the proceeds of the fraud. Hagood pleaded guilty on November 17, 2015.
According to court documents, Hagood operated Coral Palm Auto Sales, a used car dealership. Coral Palm Auto Sales received financing through a third-party lender to purchase automobiles. Vehicle titles were provided as security to procure the loans, and loan payments were made using proceeds from the vehicle sales. Once each loan was paid in full, the third-party lender would release the vehicle titles used to secure the loan back to Coral Palm Auto Sales.
In November and December 2011, Hagood engaged in a check-kiting scheme by writing 13 checks, totaling $1,592,121, on his business checking account, made payable to the third-party lender, knowing that the account lacked sufficient funds to cover the checks. As a result, the third-party lender wrote new loan checks on its account made payable to Coral Palm Auto Sales. Hagood’s scheme caused two federally insured banks to suffer a total loss of $1,037,770.01.
On March 29, 2015, Hagood attempted to surreptitiously dispose of 20 banker’s boxes containing records and documents pertaining to Coral Palm Auto Sales by throwing them in a dumpster located more than a mile from his residence. A video surveillance camera partially captured Hagood attempting to dispose of the boxes. The boxes were retrieved by the Lee County Sheriff’s Office and turned over to the FBI. A portion of the records and documents that Hagood tried to destroy were responsive to a federal subpoena previously served on him earlier that month.
This case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Former Employee of U.S. Contractor in Afghanistan Sentenced on Bribery and Structuring Conspiracy ChargesRead the Press Release
SHERMAN, Texas – A former government contractor employee was sentenced to 46 months in prison today for his role in a bribery scheme involving a federal program in Afghanistan and conspiracy to structure financial transactions to avoid currency transaction reporting requirements.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney John M. Bales, Eastern District of Texas, the Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Division and Inspector General Ann Calvaresi Barr of the U.S. Agency for International Development (USAID) made the announcement.
George E. Green, 58, of Carrollton, Texas, who worked at International Relief and Development Inc. (IRD) in Afghanistan, was sentenced by U.S. District Judge Marcia A. Crone of the Eastern District of Texas.
According to his plea agreement, Green served as IRD’s director of contracts, procurement and grants in connection with a cooperative agreement between USAID and IRD to strengthen economic stabilization and promote long-term agricultural development in specific areas of Afghanistan. Green admitted that in March and April 2012, he solicited and received a $51,000 bribe from a representative of an Afghan company that provided agriculture-related products and that sought subcontracts from IRD. Between May and August 2012, after he returned to Texas, he attempted to conceal the bribe proceeds by conspiring with others to make cash deposits of less than $10,000 each into his bank and credit card accounts to circumvent the financial institutions’ mandatory cash reporting requirements, he admitted.
SIGAR, the FBI and USAID’s Office of Inspector General investigated the case. Former Special Trial Attorney Mark H. Dubester and Trial Attorney Michael T. O’Neill of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Kevin McClendon of the Eastern District of Texas assisted with the prosecution.
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Former Employee of U.S. Contractor in Afghanistan Sentenced on Bribery and Structuring Conspiracy ChargesRead the Press Release
A former government contractor employee was sentenced to 46 months in prison today for his role in a bribery scheme involving a federal program in Afghanistan and conspiracy to structure financial transactions to avoid currency transaction reporting requirements.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John M. Bales of the Eastern District of Texas, the Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Division and Inspector General Ann Calvaresi Barr of the U.S. Agency for International Development (USAID) made the announcement.
George E. Green, 58, of Carrollton, Texas, who worked at International Relief and Development Inc. (IRD) in Afghanistan, was sentenced by U.S. District Judge Marcia A. Crone of the Eastern District of Texas, who also ordered the defendant to forfeit $51,000.
According to his plea agreement, Green served as IRD’s director of contracts, procurement and grants in connection with a cooperative agreement between USAID and IRD to strengthen economic stabilization and promote long-term agricultural development in specific areas of Afghanistan. Green admitted that in March and April 2012, he solicited and received a $51,000 bribe from a representative of an Afghan company that provided agriculture-related products and that sought subcontracts from IRD. Between May and August 2012, after he returned to Texas, he attempted to conceal the bribe proceeds by conspiring with others to make cash deposits of less than $10,000 each into his bank and credit card accounts to circumvent the financial institutions’ mandatory cash reporting requirements, he admitted.
SIGAR, the FBI and USAID’s Office of Inspector General investigated the case. Former Special Trial Attorney Mark H. Dubester and Trial Attorney Michael T. O’Neill of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Kevin McClendon of the Eastern District of Texas assisted with the prosecution.