Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
12 February 2016
Hot Springs Man Sentenced for Firearm OffenseRead the Press Release
United States Attorney Randolph J. Seiler announced that a Hot Springs, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on February 11, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Curtis Bennett, age 55, was sentenced to 1 day in custody, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Bennett was charged on July 21, 2015, and pleaded guilty on October 16, 2015.
The conviction stems from Bennett, a previously convicted felon, knowingly and unlawfully being in possession of a Smith & Wesson, model 10, .38 caliber revolver.
This case was investigated by the Bureau of Alcohol, Tobacco, Explosives, and Firearms and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Hilo Man Convicted of Disobeying Park RangerRead the Press Release
HONOLULU – After a two-day bench trial in United States District Court, United States Magistrate Judge Richard L. Puglisi found Travis R. Sanders, age 36, of Hilo, guilty on February 10, 2016, of violating a lawful order of a United States Park Ranger and sentenced him to pay a $1,000 fine. The trial was held in Hilo, on the island of Hawaii.
Florence T. Nakakuni, Untied States Attorney for the District of Hawaii, said that Sanders was convicted of disobeying a lawful order of a government employee, a Class B misdemeanor, while Sanders was in Hawaii Volcanoes National Park on the island of Hawaii during the evening of April 25, 2015. According to the evidence presented at trial, Sanders was flying a drone over a crowd gathered to view the Halema’uma’u crater. It is unlawful to fly a drone in a national park. A United States Park Ranger identified himself as a law enforcement officer and ordered Sanders to bring down the drone. Sanders initially refused, then eventually landed the drone. After Sanders refused to identify himself upon request of the Ranger, the Ranger attempted to place Sanders in custody and Sanders fled. The Ranger ordered Sanders to stop, which Sanders refused to do. The Ranger then used his taser to apprehend Sanders and took him into custody.
Magistrate Judge Puglisi found that Sanders heard and understood the Ranger’s order to stop; that the order was lawful; and that Sanders willfully disobeyed the order. Magistrate Judge Puglisi further found that the Ranger’s conduct, including deploying the taser, was "entirely justified." Sanders was not convicted of two other counts related to disobeying the orders to land the drone and to identify himself because he eventually complied with those orders. In addition to having to pay the fine, Sanders is banned from the Park for one year.
The National Park Service conducted the investigation which resulted in the charges in the case. Assistant U.S. Attorney Marc Wallenstein handled the prosecution.
Hannahville Man, Errol Martin Sagataw, Sentenced for Assault of Girlfriend That Resulted in Serious Bodily InjuryRead the Press Release
MARQUETTE, MICHIGAN — Errol Martin Sagataw, 60, of Wilson, Michigan, was sentenced in U.S. District Court to 12 months’ and one day of imprisonment for assault resulting in serious bodily injury, U.S. Attorney Patrick A. Miles, Jr., announced today. In addition, Chief U.S. District Judge Robert J. Jonker sentenced Sagataw to serve 2 years of supervised release following the completion of his term of incarceration.
On February 16, 2015, Sagataw assaulted his girlfriend at his home on the Hannahville Indian reservation after the victim rebuffed his sexual advances. Sagataw repeatedly punched the victim which caused extensive bruising and a fractured nose. Sagataw was indicted by a federal grand jury and pled guilty on October 28, 2015, to assault resulting in serious bodily injury.
The Hannahville Indian Community Tribal Police and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Hannah N. Bobee prosecuted the case.
END
Georgia Residents Charged in Interstate Armed Jewelry Robbery CaseRead the Press Release
Larry Bernard Gilmore, 43, and Michael Bernard Gilmore, 46, both of Atlanta, Georgia, were charged by criminal complaint on Thursday with conspiracy to interfere with commerce by threats or violence. The criminal complaint was announced by Acting U.S. Attorney Christopher P. Canova for the Northern District of Florida.
The charging documents allege that Larry and Michael Gilmore conspired with Abigail Lee Kemp, 24, of Smyrna, Georgia, and Lewis Jones III, 35, of Atlanta, to commit armed robberies of six jewelry stores in Panama City Beach, Florida; Woodstock and Dawsonville, Georgia; Bluffton, South Carolina; Sevierville, Tennessee; and Mebane, North Carolina. It is further alleged that, in each robbery, the robber brandished a firearm and ordered the employees to the back of the store where they were forced to lie face down on the ground with their hands zip tied behind their backs. Hundreds of thousands of dollars-worth of jewelry was then removed from the jewelry display cases.
The punishment for the alleged crime is a maximum of 20 years in prison. The initial appearance is expected to take place today with the Honorable Russell G. Vineyard for the Northern District of Georgia in Atlanta. Future court appearances will take place in the U.S. District Court in Panama City, Florida, in the Northern District of Florida, on a date to be determined.
This case resulted from an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Kathryn D. Risinger is prosecuting the case.
A criminal complaint is merely an allegation that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Soldier Guilty of Illegal Export of Defense Article and Violating the Arms Export Control ActRead the Press Release
Sold and shipped defense articles including night vision goggles, scopes and tubes through eBay accounts to buyers in the United Kingdom, Poland, and Japan
LOUISVILLE, Ky. – A Former United States Army Soldier, who served in that capacity in Iraq and elsewhere, pleaded guilty today, in United States District Court, to violating the Arms Export Control Act (AECA) and to the Illegal Export of Defense Article, announced United States Attorney John E. Kuhn, Jr.
Defendant Hunter Perry, age 33, of Louisville, Kentucky participated in a conspiracy to sell and export defense articles on the United States Munitions List (USML) to individuals located outside the United States. Specifically, beginning no later than May 2008, and continuing through September 2012, in Jefferson County, Kentucky, in Texas, and elsewhere, Perry and others, falsified customs documents to export night vision goggles, scopes, and tubes, to individuals outside of the United States. Perry was charged by federal information on December 30, 2015.
Further, in order to accomplish the conspiracy, Perry falsified shipping documents to state that he was exporting equipment other than defense articles in order to escape detection of his shipments by the United States. Payments for the equipment were made through PayPal accounts associated with eBay and through bank wire transfers.
According to court records, Perry communicated with email and agreed to ship items and did ship items, without obtaining an export license issued by the Department of State, Directorate of Defense Trade Controls (DDTC), to persons at addresses in the United Kingdom, Poland, and Japan.
Perry further pleaded guilty to four counts of violating the Illegal Export of Defense Article. On April 6, 2011, in Jefferson County, Perry exported a defense article, a D-760 night vision scope, to the United Kingdom, which was a defense article on the USML, without having first obtained from the Department of State a license for such export or written authorization for such export. Perry violated the Illegal Export of Defense Article again on January 12, 2012, when he shipped, from Jefferson County, a defense article, a PAS-23 mini-thermal scope, and on February 28, 2012, exported from the Jefferson County, to the United Kingdom, a defense article, that is a PVS-15 night vision binocular, and again on August 1, 2012, Perry shipped, from Jefferson County, a defense article, a PAS-13 thermal scope to the United Kingdom.
Perry faced a combined sentence of no more than 83 years in prison, a term of supervised release and a fine of no more than $4,250,000.
Perry is scheduled for sentencing before Senior Judge Russell, in Louisville, on May 18, 2016.
This case is being prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by Federal Bureau of Investigation and the Defense Criminal Investigative Service.
Former Soldier Guilty of Illegal Export of Defense Article and Violating the Arms Export Control ActRead the Press Release
LOUISVILLE, Ky. – A Former United States Army Soldier, who served in that capacity in Iraq and elsewhere, pleaded guilty today, in United States District Court, to violating the Arms Export Control Act (AECA) and to the Illegal Export of Defense Article, announced United States Attorney John E. Kuhn, Jr.
Defendant Hunter Perry, age 33, of Louisville, Kentucky participated in a conspiracy to sell and export defense articles on the United States Munitions List (USML) to individuals located outside the United States. Specifically, beginning no later than May 2008, and continuing through September 2012, in Jefferson County, Kentucky, in Texas, and elsewhere, Perry and others, falsified customs documents to export night vision goggles, scopes, and tubes, to individuals outside of the United States. Perry was charged by federal information on December 30, 2015.
Further, in order to accomplish the conspiracy, Perry falsified shipping documents to state that he was exporting equipment other than defense articles in order to escape detection of his shipments by the United States. Payments for the equipment were made through PayPal accounts associated with eBay and through bank wire transfers.
According to court records, Perry communicated with email and agreed to ship items and did ship items, without obtaining an export license issued by the Department of State, Directorate of Defense Trade Controls (DDTC), to persons at addresses in the United Kingdom, Poland, and Japan.
Perry further pleaded guilty to four counts of violating the Illegal Export of Defense Article. On April 6, 2011, in Jefferson County, Perry exported a defense article, a D-760 night vision scope, to the United Kingdom, which was a defense article on the USML, without having first obtained from the Department of State a license for such export or written authorization for such export. Perry violated the Illegal Export of Defense Article again on January 12, 2012, when he shipped, from Jefferson County, a defense article, a PAS-23 mini-thermal scope, and on February 28, 2012, exported from the Jefferson County, to the United Kingdom, a defense article, that is a PVS-15 night vision binocular, and again on August 1, 2012, Perry shipped, from Jefferson County, a defense article, a PAS-13 thermal scope to the United Kingdom.
This case is being prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by Federal Bureau of Investigation and the Defense Criminal Investigative Service.
Former President of the Broward Teachers Union Pleads Guilty to Defrauding the Broward County School Board and the Broward Teachers UnionRead the Press Release
On Friday, February 12, 2016, Patrick Santeramo, 68, of Dania Beach, Florida appeared in court in Fort Lauderdale, before U.S. District Court Judge William J. Zloch, and pleaded guilty to one count of mail fraud.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Rafiq Ahmad, Special Agent in Charge, Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (DOL-OIG), made the announcement.
According to court documents, Santeramo was the president of the Broward Teachers Union (BTU) from 2001 to 2011, and served as vice president of the BTU prior to that. The BTU and the School Board of Broward County negotiated a collective bargaining agreement in which the School Board of Broward County agreed to provide an annual payment of $80,000 to the BTU for the BTU’s Accountability Program, which was administered by the BTU.
The collective bargaining agreement required that all of the money provided by the School Board of Broward County for the Accountability Program be used to further the program’s goals “in such areas as training, release time for teachers working on accountability projects, guest speakers, etc.” The collective bargaining agreement also required the BTU to keep a written record of expenditures charged to the Accountability Program, and to make this information available to the School Board of Broward County.
Each year, defendant Santeramo would send a letter to the School Board of Broward County to explain how the money dedicated to the Accountability Program had been used during the previous school year. Subsequently, he would also send a letter to the School Board of Broward County requesting the next payment of $80,000 for the Accountability Program for the upcoming school year. As a result of the letters from Santeramo explaining the use of the funds that the School Board of Broward County provided for the Accountability Program, the School Board of Broward County would mail a check for $80,000 to the BTU.
After the BTU received the $80,000 payment from the School Board of Broward County, Santeramo authorized payments from the Accountability Program account for himself and three other employees of the BTU to which they were not entitled. In letters from Santeramo to the School Board of Broward County, Santeramo omitted that payments from the Accountability Program account had been made to him and the other employees. Consequently, Santeramo was responsible for the misappropriating more than $93,000 during the fraudulent scheme.
Sentencing is scheduled for April 22, 2016 at 11:00 a.m. before Judge Zloch.
Mr. Ferrer commended the investigative efforts of the Department of Labor, Office of Inspector General, Miami Field Office. The case is being prosecuted by Assistant U.S. Attorneys Miesha Darrough and Harry C. Wallace, Jr.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Pike County Surgeon Charged with Evading Tax Payments and Submitting False Documents to the IRSRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dr. Robert Gorrell, who formerly worked for Wayne Memorial Hospital in Honesdale, Pennsylvania, was charged with evading payment of his income taxes, and with filing a false document with the Internal Revenue Service (IRS). The indictment was returned by a federal grand jury in Scranton on December 8, 2015, but remained sealed until Dr. Gorrell was found and arrested in Texas on February 11, 2016.
According to United States Attorney Peter Smith, the indictment charges Gorrell, age 65, with engaging in a years-long pattern of activities to avoid paying over $148,000 in tax deficiencies. The grand jury charged Gorrell with, among other things, causing his tax preparer to file Form 1040 tax returns and Form 433-A collection statements that falsely claimed Gorrell paid for his own medical malpractice insurance. Gorrell also allegedly lied to IRS agents and submitted forged documentation to the IRS in support of his claims. The activities occurred between October 2006 and April 2012.
The indictment also charges Gorrell with causing his tax preparer to file a Form 433-A collection statement with the IRS that falsely claimed he paid for his own medical malpractice insurance, failed to report the extent of his bank accounts, and failed to report his ownership of a Porsche Cayenne.
The investigation was conducted by the IRS, Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Former High School Assistant Track Coach Pleads Guilty to Sexually Abusing Seven StudentsRead the Press Release
WASHINGTON - Charles Young, 35, of Washington D.C., pled guilty today to sexually abusing seven different male students at Dunbar Senior High School, announced U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD). The abuse occurred between January 2013 and May 2014, during which time the defendant worked at Dunbar as a business manager and assistant track coach.
Young pled guilty in the Superior Court of the District of Columbia to seven felony counts of sexual abuse, including first-degree child sexual abuse with aggravating circumstances, attempted first-degree sexual abuse of a minor, and multiple counts of attempted second-degree sexual abuse of a minor. Each of the seven counts concerns a different victim. Upon release, Young will be required to register as a sexual offender for the remainder of his life. The Honorable Robert E. Morin has scheduled a sentencing hearing to take place on April 22, 2016.
According to the government’s evidence, from 2012 to 2014, Young was employed as Dunbar’s business manager and was responsible for managing the school’s finances. Although he did not teach any classes, he served as a senior class advisor, designed and distributed Dunbar school apparel, volunteered as an assistant boys’ track coach, and held other responsibilities that regularly put him in contact with students.
Between January 2013 and May 2014, Young sexually abused seven male students, all between the ages of 14 and 17 years old. All the incidents occurred on the Dunbar campus, which is located in the 100 block of N Street NW. In one incident that occurred in the fall of 2013, a 15-year-old came to Young’s office to borrow a shirt to wear at basketball practice. Young led the boy into a closet next to his office that contained Dunbar apparel, closed the door, and eventually began performing oral sex on the student. In another incident that occurred in February or March 2013, a 17-year-old came to Young’s office to pay school fees. Once alone with the student, Young had him lift his shirt and pull down his pants and underwear purportedly so that he could show the student, who was an athlete, muscle groups he needed to strengthen. Young had the student pull down his pants and underwear, began touching the student’s penis with his hand, and pressed his mouth to the student’s penis.
On multiple occasions, Young used his position as a track coach to sexually abuse his juvenile victims. In one incident in November 2013, Young brought a 16-year-old to an empty bathroom after track practice, purportedly to provide him some additional one-on-one coaching. Inside the bathroom, he began touching the student on his stomach, pointing out muscle groups the defendant claimed needed work. Young gradually began lowering the student’s shorts before grabbing the boy’s penis and attempting to pull it out of his pants. In a separate incident that occurred in January or February of 2014, Young called a 14-year-old to his office to try on the new track team uniforms. After the student disrobed, Young began touching the student’s abdomen, pointing out exercises he could do to deepen his abdominal muscles. Young began touching the student near his groin and began pulling the student’s underwear down, exposing his penis. He then touched the boy’s penis with his hand.
The defendant would also voice concerns about student hygiene as a ploy to sexually abuse them. On multiple occasions, Young, while alone with a male student, would claim that the student smelled bad, apply hand sanitizer or lotion to his hand, and begin rubbing the boy’s abdomen, claiming that he was getting rid of the smell. Young would then attempt to reach into the boy’s pants and touch his penis.
The abuse came to light in November 2014 when one of the students reported to Dunbar administrators that the defendant had sexually abused him. That student’s disclosure triggered an investigation that ultimately uncovered seven different students whom Young had sexually abused over the span of just three school semesters. Young has been in custody since his arrest in November 2014.
In announcing the plea, U.S. Attorney Phillips and Chief Lanier commended the work performed by detectives from the Metropolitan Police Department’s Youth and Family Services Division. They also recognized the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Tracey Hawkins, Victim/Witness Services Coordinator Katina Adams-Washington, Litigation Technical Specialist Jeanie Latimore-Brown, Paralegal Specialist D’Yvonne Key, Criminal Investigators John Marsh and Mark Fitzgerald, former Legal Interns Stephanie Dinan and Emma MacArthur, and Assistant U.S. Attorneys Chrisellen Kolb and Sarah McClellan. Finally, they commended the work of Assistant U.S. Attorney Jodi Lazarus, who conducted much of the investigation, and Assistant U.S. Attorneys Jason Park and Julianne Johnston, who are prosecuting the case.
Former Harford Resident Sentenced to More Than 10 Years in Prison for Sex Trafficking of MinorsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that WELLINGTON BROWN, also known as “Jamal,” 26, a Jamaican citizen formerly residing in Hartford, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 126 months of imprisonment, followed by 10 years of supervised release, for sex trafficking of minors.
According to court documents and statements made in court, between June 2013 and February 2014, BROWN, with the assistance of Sheena Dume, used various manipulative tactics to recruit five different minor victims to engage in prostitution. BROWN drove expensive vehicles and displayed jewelry and cash to his victims, and lured them with the prospect of making significant amounts of money. BROWN recruited some victims with the fictitious prospect of a modeling career.
BROWN took pictures of the minor victims and used them to advertise prostitution services on websites such as backpage.com. BROWN and Dume covered the expenses of the prostitution operation, such as renting hotel rooms, providing transportation and condoms, and buying food for the victims. At times, BROWN also provided marijuana to the minor victims.
The investigation revealed that the victims engaged in prostitution at various hotels in Stratford and Milford. The victims provided BROWN with tens of thousands of dollars they earned through prostitution and received only a small portion of the money they made.
“This defendant recruited and manipulated vulnerable young girls luring them into the cruel world of sex trafficking,” said U.S. Attorney Daly. “He exploited these girls for months, having them commit sex acts for money, and keeping most all of the profits for himself. Prosecuting these offenses is a top priority for our office and the Department of Justice. Those who sexually exploit minors will be held accountable in federal court and sentenced to significant time in prison. We thank the FBI, the Milford and Stratford Police Departments, and the Connecticut State Police for their diligent work in this investigation. We will continue to work closely with our law enforcement partners to rescue girls and young women from brutal environments and to prosecute those who are responsible for and profit from this reprehensible conduct.”
BROWN and Dume were arrested in Maryland on July 30, 2014. On March 26, 2015, BROWN pleaded guilty to one count of conspiracy to commit sex trafficking of a minor, and five counts of sex trafficking of a minor. He has been detained since his arrest.
BROWN faces immigration proceedings after he serves his prison term.
On February 18, 2015, Dume pleaded guilty to the same six offenses. She awaits sentencing.
This matter was investigated by the Federal Bureau of Investigation, aided by the Milford Police Department, the Stratford Police Department and the Connecticut State Police. U.S. Attorney Daly also recognized the significant assistance provided by the Connecticut Department of Children and Families, particularly its Human Anti-Trafficking Response Team (“HART”).
This case is being prosecuted by AUSAs David Novick and Marc Silverman.
U.S. Attorney Daly encouraged trafficking victims, and anyone who comes in contact with potential victims of trafficking, to call the National Human Trafficking Resource Center Hotline at 888-373-7888. The hotline is run by the Polaris Project under a federal grant. Hotline operators are trained to identify potential trafficking situations, and will immediately refer tips to law enforcement. Individuals also can send an email to [email protected].
Trafficking victims also are encouraged to send a text message to “BEFREE” to receive an immediate response and help from the National Human Trafficking Resource Center.
Former Florida State University Finance Professor Sentenced to Prison for EmbezzlementRead the Press Release
TALLAHASSEE, FLORIDA – Today, former Florida State University (FSU) Assistant Professor of Finance, James S. Doran PhD, 40, of Boulder, Colorado, was sentenced to 13 months in prison and a $15,000 fine for embezzlement concerning a program receiving federal funds. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, between May 2010 and March 2011, Doran, while employed at FSU’s College of Business, intentionally embezzled money from the Student Investment Fund Inc. (SIF). The SIF was developed to give business students practice in conducting stock purchases and managing an investment portfolio. Doran, who oversaw the SIF as a faculty advisor, made a series of transfers totaling more than $650,000 from the SIF to his own personal investment account. He also used $10,000 in SIF monies to pay for a performance evaluation of his personal investment fund. Doran returned the monies after an audit disclosed his illegal transfers. Doran was convicted on November 19, 2015.
The case was investigated by the United States Secret Service, the FSU Police Department, and the FSU Office of Inspector General Services. It was prosecuted by Assistant United States Attorneys Gary K. Milligan and Jason R. Coody.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Former Augusta Fire Chief of Fire Prevention Bureau Convicted of Seven Counts of ExtortionRead the Press Release
Augusta, Ga: Yesterday, Jason Baron Beard, the former Fire Chief of the Fire Prevention Bureau, a division of the Augusta Fire Department, was convicted by a federal jury on six counts of extortion under color of official right and one count of attempted extortion under color of official right. United States District Court Judge J. Randal Hall presided over Beard’s four-day jury trial.
According to the evidence presented at trial, Beard extorted cash payments from two nightclubs in exchange for not assigning fire marshals to work “specials” and enforce the clubs’ occupancy limits. Beard would collect his payments from the clubs’ managers on the Saturday following the first Friday of each month, a date when restaurants, bars, and nightclubs in Augusta would hold special events and promotions to draw the largest crowds. Even when the nightclubs’ managers told Beard that the clubs were well over the occupancy limits, Beard continued to collect cash payments without ever even issuing a warning. So long as the clubs’ managers continued to pay Beard, he never assigned a fire marshal to that location. As a result, Beard knowingly allowed these nightclubs to operate in a dangerous and overcrowded manner on regular occasion and ignored a threat to the public’s safety.
United States Attorney Edward J. Tarver stated, “Acting as Fire Chief was not Mr. Beard’s job; it was the citizen’s job that he was hired to perform. He had no right to sell the public’s trust for his personal profit. The United States Attorney’s Office will continue to fight public corruption to help ensure the public’s safety.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated “public corruption remains the FBI’s number one criminal investigative program priority because of the vast damage that it can cause within government and to the public’s trust in its government. The investigation and resulting federal conviction of former Augusta Fire Chief Beard illustrates the FBI’s commitment to following up on allegations in these matters, developing facts, and presenting them for prosecution.”
Mr. Tarver commended the hard work and dedication of the FBI, which investigated the case. Special Agent Charles E. McKee led the FBI’s investigation.
Assistant United States Attorneys C. Troy Clark and Frederick W. Kramer prosecuted the case on behalf of the United States. Any questions should be directed to Mr. James D. Durham at (912) 341-7842.
Florida Man Pleads Guilty to Hate Crime for Threatening to Firebomb Two Mosques and Shoot WorshippersRead the Press Release
The Justice Department announced today that Martin Alan Schnitzler, 43, pleaded guilty to a hate crime in the Middle District of Florida for calling two mosques located in Pinellas County, Florida, and threatening to firebomb the mosques and shoot their congregants.
Schnitzler pleaded guilty to obstructing persons in the free exercise of religious beliefs for making the violent threats. As part of his plea, he admitted that on Nov. 13, 2015, he intentionally obstructed members of the Islamic Society of St. Petersburg, Florida, and the Islamic Society of Pinellas County from practicing their religion when he left voicemail messages threatening the safety of the mosques’ congregants. Schnitzler admitted that his threats were prompted by the terrorist attacks in Paris. Among other things, Schnitzler also admitted that in one of the voicemails he threatened to “personally have a militia” report to one of the mosques and “firebomb you, shoot whoever is there on sight in the head. I don’t care if they’re [expletive] two years old or a hundred.”
As a result of the above threats, both mosques requested increased law-enforcement presence at their locations and took extra safety precautions for congregants.
“Our Constitution and laws guarantee all people – regardless of where they worship – the right to live free from violence and discrimination,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Criminal threats of violence against people or places of worship have no place in our society, and as proven today, the Department of Justice will continue to vigorously prosecute those who commit religion-based hate crimes.”
“The right to worship as one chooses, free from threats and intimidation, is one of the core principles upon which our great nation was founded,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “The U.S. Attorney’s Office is committed to taking whatever action is necessary to vindicate this important First Amendment right.”
Sentencing for the defendant will be scheduled at a later date. Schnitzler faces a maximum sentence of 20 years in federal prison.
The FBI is investigating the case with the assistance of the St. Petersburg Police Department. Assistant U.S. Attorneys Daniel George and Daniel Irick of the Middle District of Florida and Trial Attorney Gabriel Davis of the Civil Rights Division’s Criminal Section are prosecuting the case.
Schnitzler Plea Agreement
Florida Man Pleads Guilty to Hate Crime for Threatening to Firebomb Two Mosques and Shoot WorshippersRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announced today that Martin Alan Schnitzler, 43, pleaded guilty to a hate crime in the Middle District of Florida for calling two mosques located in Pinellas County, Florida, and threatening to firebomb the mosques and shoot their congregants.
Schnitzler pleaded guilty to obstructing persons in the free exercise of religious beliefs for making the violent threats. As part of his plea, he admitted that on Nov. 13, 2015, he intentionally obstructed members of the Islamic Society of St. Petersburg, Florida, and the Islamic Society of Pinellas County from practicing their religion when he left voicemail messages threatening the safety of the mosques’ congregants. Schnitzler admitted that his threats were prompted by the terrorist attacks in Paris. Among other things, Schnitzler also admitted that in one of the voicemails he threatened to “personally have a militia” report to one of the mosques and “firebomb you, shoot whoever is there on sight in the head. I don’t care if they’re [expletive] two years old or a hundred.”
As a result of the above threats, both mosques requested increased law-enforcement presence at their locations and took extra safety precautions for congregants.
“Our Constitution and laws guarantee all people – regardless of where they worship – the right to live free from violence and discrimination,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Criminal threats of violence against people or places of worship have no place in our society, and as proven today, the Department of Justice will continue to vigorously prosecute those who commit religion-based hate crimes.”
“The right to worship as one chooses, free from threats and intimidation, is one of the core principles upon which our great nation was founded,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “The U.S. Attorney’s Office is committed to taking whatever action is necessary to vindicate this important First Amendment right.”
Sentencing for the defendant will be scheduled at a later date. Schnitzler faces a maximum sentence of 20 years in federal prison.
The FBI is investigating the case with the assistance of the St. Petersburg Police Department. Assistant U.S. Attorneys Daniel George and Daniel Irick of the Middle District of Florida and Trial Attorney Gabriel Davis of the Civil Rights Division’s Criminal Section are prosecuting the case.
District Man Sentenced to 17 Years in Prison for Armed Carjacking and Other ChargesRead the Press Release
WASHINGTON – Cephus Hollis, 18, of Washington, D.C., was sentenced today to 17 years in prison on numerous charges stemming from two violent carjackings in Northeast Washington within a four-day period, U.S. Attorney Channing D. Phillips announced.
Hollis was found guilty by a jury in November 2015 of a total of 15 charges, including assault with intent to kill while armed, armed carjacking, and aggravated assault of a senior citizen while armed. The verdicts followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Lynn Leibovitz. Following completion of his prison term, Hollis is to be placed on five years of supervised release.
According to the evidence presented at trial, Hollis and a co-conspirator went out on the evening of Sept. 7, 2014 to steal cars in the Riggs Park neighborhood of Northeast Washington and surrounding areas. After stealing their first car that night, they used it to drive around and steal or attempt to steal numerous other cars.
In the early morning hours of Sept. 8, 2014, Hollis and the co-conspirator saw a 62-year-old man delivering copies of the Washington Post, and followed him as he did this for several stops. At one stop, in the 5800 block of Eastern Avenue NE, the newspaper delivery man got out of his car to throw a paper onto the doorstep. Hollis then got into the front seat. Hollis assumed the victim had left the keys in the ignition. The victim had not, and when he returned to the car, Hollis confronted him and demanded the keys. When the victim would not surrender the keys, Hollis punched and kicked him, and the co-conspirator joined in. They beat the victim until they broke his wrist, dislocated his shoulder, broke the orbital bones around his eye, and caused other injuries. Then, after they beat him, they took the cars he was using to make the deliveries. A few days later, that car ran out of gas and was abandoned in the middle of the street. Fingerprints recovered from it matched the defendant and the co-conspirator.
Four days later on Sept. 12, 2014, at about 5 p.m., Hollis ordered Chinese food to be delivered to his own house in the 400 block of Oneida Street NE. When the delivery driver arrived, he parked in front of the house and called Hollis, who acknowledged ordering the food. As the driver walked up to Hollis’s porch, Hollis came out of the house. Without saying anything, Hollis stabbed the driver in the head. The driver fell to the ground and Hollis kept stabbing him. The driver somehow broke free and fled to his car. He locked the door, hoping the car would keep him safe. But as he looked out the car window, he saw that Hollis had his car keys and was walking towards the car. Using the electronic key fob, Hollis unlocked the car. The driver locked the car again, smearing his own blood over the controls as he did so. Hollis, however, kept coming and unlocked the car again, got inside, and resumed stabbing the driver.
The driver got out of the car. Hollis got out, too, ran around the car, and stabbed the driver again. In total, the driver was stabbed at least seven times, including to the head, face, chest, hands, and arms. In addition to his numerous lacerations and puncture wounds, the victim sustained a partially collapsed lung. Hollis then fled in the delivery driver’s car, which was recovered the next day. DNA evidence tying Hollis to the crime was recovered from inside the car. A phone later recovered from Hollis’s pocket was shown to have placed the call ordering the food, and received the call from the delivery driver when he arrived with the food.
Hollis has been in custody in this case since his arrest in May 2015. At sentencing, prosecutors sought a significant period of incarceration, noting the gruesome nature of the attacks and pointing out that Hollis has shown no remorse for his actions.
In announcing the sentence, U.S. Attorney Phillips commended the work of the detectives of the Fourth Police District of the Metropolitan Police Department and the Special Agents from the FBI Washington Field Office’s Violent Crime Task Force. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Tiffany Fogle and Benjamin Kagan-Guthrie; Lead Paralegal Specialist Kwasi Fields; Paralegal Supervisors Darline Douglas and Anthony Griffith; Victim/Witness Services Coordinator Katina Adams-Washington; Victim/Witness Advocate Diana Lim; Intelligence Analysts Shannon Alexis and Sharon Johnson; Information Technology Specialists Aneela Bhatia, Anisha Bhatia, Paul Howell, Claudia Gutierrez, Jeanie Latimore-Brown, William Henderson, and Leif Hickling; Criminal Investigators Nelson Rhone and Chris Brophy; Elizabeth Trosman, Chief of the Appellate Division; Assistant U.S. Attorneys Stephen Rickard and John Mannarino of the Appellate Division; and Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation. Finally, he praised the efforts of Assistant U.S. Attorneys Christopher Bruckmann and Katherine Earnest, who investigated and prosecuted the case.
District Man Pleads Guilty to Sexually Assaulting Woman in 2002 Attack in Northwest WashingtonRead the Press Release
WASHINGTON – Jeremiah Juwley, 30, formerly of Washington, D.C., pled guilty today to sexually assaulting a woman in 2002, U.S. Attorney Channing D. Phillips announced.
Juwley pled guilty in the Superior Court of the District of Columbia to attempted first-degree sexual abuse. The plea, which is subject to the Court’s approval, calls for a sentence of 16 years in prison. The Honorable José M. López scheduled sentencing for April 8, 2016. Upon his release from prison, Juwley is to be required to register as a sex offender for the rest of his life.
According to the government’s evidence, in the early morning hours of Sept. 14, 2002, the victim, then 22, was walking alone to a friend's home on the 1100 block of Columbia Road NW after leaving a nightclub. While in route, Juwley, a stranger to her, began walking behind her. To evade him, she walked to an outdoor stairwell that was somewhat secluded.
Juwley continued to pursue her. When he caught up to her, he grabbed her around the waist. The victim screamed. Juwley told her to shut up and knocked her face down onto the ground. She continued to scream, turning her face towards the apartment building so someone could hear her. The defendant continued to strike her in the face and started banging her head on the ground, eventually knocking her unconscious. Juwley then attempted to sexually assault her.
The victim reported the assault to the Metropolitan Police Department (MPD) and was taken to Howard University Hospital, where she was treated for injuries and swabbed for DNA. The case was cold until April 2014, when the defendant was identified as a suspect through the Combined DNA Index System (CODIS), a web of state and national databases containing DNA profiles from convicted offenders and crime scenes that is used as an investigative tool. Juwley’s DNA was in the system as a result of a 2011 conviction in a carjacking case; he was sentenced to a seven-year prison term in that case. Juwley’s DNA profile matched the DNA left behind by the assailant in 2002. Juwley was arrested in December 2015.
In announcing the plea, U.S. Attorney Phillips commended the work of detectives from the MPD’s Sexual Assault Unit, the Third Police District, and officers from the Forensic Science Division. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Lezlie Richardson; Paralegal Specialists Jason Manuel, Tiffany Jones, and Tierra Naches, and Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation. Finally, he expressed appreciation for the work of former Assistant U.S. Attorney Jeff Cook and Assistant U.S. Attorneys Kenya Davis and Nicholas Miranda, who investigated and prosecuted the case.
District Court Enters Permanent Injunction Against Maine-Based Seafood Company and Its Owner to Prevent Distribution of Adulterated ProductsRead the Press Release
The U.S. District Court for the District of Maine entered a consent decree of permanent injunction against Hancock, Maine-based Mill Stream Corporation (doing business as Sullivan Harbor Farm) and its owner, Ira J. (Joel) Frantzman, to prevent the distribution of adulterated seafood products, the Department of Justice announced today.
The department filed a complaint in the U.S. District Court for the District of Maine at the request of the U.S. Food and Drug Administration (FDA), alleging that the defendants’ seafood products are adulterated in that they have been prepared, packed, or held under insanitary conditions whereby the products may have become contaminated with filth or have been rendered injurious to health.
“The failure to plan for and control the presence of bacteria and neurotoxins commonly found in seafood-processing facilities can pose a significant risk to the public health,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work aggressively with FDA to prevent the distribution of adulterated food.”
The complaint alleges that the defendants prepare, process, pack, hold, and distribute refrigerated, vacuum-packed, ready-to-eat, cold and hot smoked fish or fishery products, such as smoked salmon, trout and char, for distribution to cities across the country, including Boston, Massachusetts, and Washington, D.C. The complaint also alleges that Frantzman is Mill Stream’s owner and has the authority and responsibility to prevent and correct the violations of federal law at the company.
In conjunction with the filing of the complaint, the defendants agreed to settle the case and be bound by a consent decree of permanent injunction that requires the defendants to cease all manufacturing operations and provides that, in order for defendants to resume distributing their products, FDA first must determine that the defendants’ manufacturing practices comply with the federal Food, Drug and Cosmetic Act (FDCA).
According to the complaint, an FDA inspection of defendants’ facility in March and April 2015 identified significant, recurring violations of seafood Hazard Analysis and Critical Control Point (HACCP) regulations and current Good Manufacturing Practices (cGMP) requirements. As alleged in the complaint, the HACCP violations included inadequate plans to control risks of Clostridium botulinum (C. bot), which produces a potent neurotoxin that can cause botulism. Though the incidence of botulism is rare, its effect can be severe. Botulism can cause paralysis or death if not promptly treated.
The complaint also alleges that FDA documented insanitary conditions at the defendants’ facility in violation of cGMP requirements. FDA investigators observed, among other things, rodent excreta pellets too numerous to count in the area of the facility where smoker trays are cleaned, apparent black mold and water staining on the doorframe of the walk-in freezer where fish is stored, an open rack of salmon stored beneath a pipe with frozen condensate build-up, and water splashing from the processing floor onto a cutting board and into bins where fish is stored.
Additionally alleged in the complaint, FDA’s testing of samples collected from the defendants’ facility during a December 2011 inspection revealed Listeria monocytogenes (L. mono) in the facility’s environment and on a fish-skinning machine. As noted in the complaint, as a result of that finding, FDA issued to defendants an Administrative Detention Order and defendants subsequently had the affected products destroyed and recalled. L. mono is the bacterium that causes listeriosis, a disease commonly contracted by eating food contaminated with L. mono. Listeriosis can be serious, even fatal, for vulnerable groups such as newborns and those with impaired immune systems. The most serious forms of listeriosis can result in meningitis and septicemia. Pregnant women may contract flu-like symptoms from listeriosis, and complications from the disease can result in miscarriage or septicemia in the newborn.
The complaint alleges that, for more than a decade, FDA repeatedly warned the defendants about HACCP and cGMP violations at the defendants’ facility. The complaint also alleges that FDA communicated these warnings through regulatory meetings, teleconferences, an Administrative Detention Order, Lists of Inspectional Observations and a Warning Letter. Yet, the complaint alleges, FDA continued to observe HACCP and cGMP violations at the defendants’ facility.
The government is represented by Trial Attorney Thomas E. Ross of the Civil Division’s Consumer Protection Branch and Andrew K. Lizotte of the U.S. Attorney’s Office for the District of Maine, with the assistance of Associate Chief Counsel Yen Hoang of the Department of Health and Human Services’ Office of General Counsel – Food and Drug Division.
Disbarred Somerset Attorney Convicted of FraudRead the Press Release
BOSTON – A disbarred Somerset attorney was convicted by a federal jury yesterday on fraud charges arising out of his promotion of investments in a Fall River-based company.
John Silvia, 66, purportedly the “Managing Member” of Richardson Consulting, LLC, was convicted following an eight-day trial of eight counts of securities fraud.
Silvia purported to sell ownership interests in Advanced Space Monitor (ASM) that he was not entitled to sell. In furtherance of his fraud, Silvia created and used a fake “Subscription Agreement” that purportedly gave him the right to receive and sell shares in ASM when, in reality, he did not have the right to do so. The government presented evidence that Silvia cut and pasted the signature of ASM’s founder on the document purporting to give Silvia ownership interest in the company. Silvia defrauded multiple investors out of more than $300,000 based on false representations about his ability to sell the shares. Many of his victims were his friends and family members. Silvia, who was licensed to practice law in Massachusetts in 1975, has been disbarred since 2003.
The charge of securities fraud provides a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $5 million, or twice the gross loss to the victims, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Seven additional counts of mail and wire fraud are still pending against Silvia based on fraud he is alleged to have perpetrated against additional victims. U.S. District Court Judge George A. O’Toole, Jr., who had severed the counts for a separate trial, scheduled a status conference for March 14, 2016. Silvia was acquitted at trial this week on two counts of wire fraud.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The Massachusetts Securities Division, which filed an administrative action charging Silvia with violation of Massachusetts securities laws, referred this case to the U.S. Attorney’s Office and cooperated with the criminal investigation. The case is being prosecuted by Assistant U.S. Attorney Neil Gallagher of Ortiz’s Economic Crimes Unit and Eric Forni of the Securities and Exchange Commission who was appointed as a Special Assistant U.S. Attorney.
Chief Executive Officer of International Stock Transfer Sentenced to 42 Months in Prison for Operating $3 Million Securities Fraud SchemeRead the Press Release
Wednesday evening, at the federal courthouse in Brooklyn, Cecil Franklin Speight, was sentenced by the Hon. Roslynn R. Mauskopf to 42 months in prison following his guilty plea to conspiracy to commit mail and securities fraud for defrauding 72 investors of $3.3 million by operating an Internet stock scheme. As part of the sentence, Speight was ordered to pay $3.3 million in restitution to the victims of his fraud and $3.3 million in forfeiture.
Speight owned International Stock Transfer (IST), a registered transfer agent with the United States Securities and Exchange Commission (SEC). According to court filings and facts presented at the sentencing hearing, Speight stole at least $3.3 million from victim investors and used the proceeds to pay personal expenses, including purchases at Mercedes Benz, Nordstrom, Netflix and Groupon.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York.
“Rather than transferring capital to issuers, the defendant used the investors’ funds as his own. His victims, from the Eastern District of New York and around the world, were conned into buying bogus securities that were not worth the paper they were printed on. We will continue to pursue those who use our markets to enrich themselves through fraud,” stated United States Attorney Capers. Mr. Capers extended his grateful appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation, and thanked the Securities and Exchange Commission for its assistance.
IST was founded by Speight in 2004 with offices in Palm Beach, Florida. Speight used cold callers and fake websites to entice victims into investing their money in allegedly high yield securities purportedly associated with IST. Investors were directed to wire funds into purportedly secure attorney escrow accounts. Once there, Speight typically stole the funds for his own use.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets, and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Jack Dennehy is in charge of the prosecution, with assistance provided by Assistant United States Attorney Brian D. Morris of the Office’s Civil Division, which is responsible for the forfeiture of assets.
The Defendant:
CECIL FRANKLIN SPEIGHT
Age: 54
West Palm Beach, FLE.D.N.Y. Docket No. 14-CR-379
Cheektowaga Man Charged with Aggravated Identity TheftRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Paul Keener, a/k/a Aaron Silverman, a/k/a Paul Robison, a/k/a Scott Walker, 47, of Cheektowaga, NY, was arrested and charged by criminal complaint with aggravated identity theft and using a passport secured by false statement. The charges carry a mandatory minimum penalty of two years and a maximum penalty of 12 years in prison.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that according to the complaint, in 1996, the defendant escaped from state custody in Colorado. Soon thereafter, Keener purchased false identification documents associated with a confirmed missing person who has been missing from his family in Virginia since 1993. The defendant purchased the documents from a seller on Craigslist for $300.00.
From 1995 to the present, Keener maintained several aliases supported by false identification documents including U.S. passports and driver’s licenses. Law enforcement officials learned of the defendant’s presence in Western New York in January 2016. Using his aliases and false identification documents, Keener has crossed into Canada, registered to vote, applied for and received federal financial student aid, and has obtained Social Security cards.
The defendant is being held following a detention hearing this morning before U.S. Magistrate Judge Jeremiah J. McCarthy.
The complaint is the result of an investigation by the Diplomatic Security Service, U.S. Department of State, under the direction of William Ferrari, the Social Security Administration, Office of Inspector General, under the direction of Edward J. Ryan, and the United States Marshals Service, under the direction Charles Salina.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
California Man Sentenced to 70 Months on Gun and Drug ChargesRead the Press Release
BOISE – Ronald Eugene Bohm, 50, from California, was sentenced yesterday to 70 months in prison followed by four years of supervised release for possessing methamphetamine with the intent to distribute and possessing a machinegun, U.S. Attorney Wendy J. Olson announced. Bohm was indicted by a federal grand jury on August 11, 2015 and entered guilty pleas on December 2, 2015.
According to court records, on July 26, 2015, Meridian Police Officers responded to Bohm’s residence in Meridian, Idaho after receiving complaints about parking violations. At the residence, officers contacted Bohm’s wife and co-defendant, Constance Bohm, and noticed the smell of marijuana from the house. Constance Bohm admitted to the officers that she had marijuana. At the same time, Bohm arrived at the residence with several individuals associated with the Henchman motorcycle club. A drug detection dog was utilized and alerted on Bohm’s saddle bag on his motorcycle. Officers found marijuana and firearms in the saddle bag. Officers then obtained a search warrant from the court to search the residence. Inside the residence, officers found approximately 63 grams of methamphetamine and 176.2 grams of marijuana. Officers also located a digital scale in the master bedroom with amphetamine residue on it and numerous firearms and firearm components including a drop in auto sear, which is a combination of parts designed to convert a semiautomatic firearm into a fully automatic machine gun. Other firearms located in the residence included two AR-15 semiautomatic rifles, five AR-15 receivers, a .22 caliber rifle with a shortened barrel, and a 7.62X54 millimeter rifle with a shortened barrel. None of the AR15 guns had a make, model, or serial number on them. Bohm was the President of the Idaho chapter of the Henchmen Motorcycle Club. As a condition of Bohm’s supervised release he was ordered not to have any contact with individuals identified by local law enforcement agencies as documented gang members nor can he possess any items representing or showing any affiliation with gangs.
The co-defendant, Constance Bohm, is scheduled for sentencing on March 29, 2016.
This case was investigated by the Meridian Police Department and the Treasure Valley Metro Violent Crime Task Force. The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Cahokia Man Sentenced for Conspiracy to Distribute Cocaine and Interstate Travel in Support of RacketeeringRead the Press Release
On February 11, 2016, Ronald Artis, 26, of Cahokia, Illinois, was sentenced in federal court in East St. Louis after having previously pled guilty to Conspiracy to Distribute Controlled Substances and Interstate Travel In Support of Racketeering, James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today. Artis was sentenced to 60 months in federal prison and 4 years of supervised release. In addition, Artis was ordered to pay a $200 fine and a $200 special assessment.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Agencies participating in this case include the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Internal Revenue Service, Criminal Investigations, the United States Marshals Service, the Illinois State Police, and the East St. Louis Police Department. This case was prosecuted by Assistant United States Attorney Donald S. Boyce.
Buffalo Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Terrance Baylor, 42, of Buffalo, NY, who was convicted of possession with intent to distribute crack cocaine and being a felon in possession of a firearm, was sentenced to 60 months in prison by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that on February 8, 2012, Buffalo Police officers executed a search warrant at the defendant’s Box Street residence. Officers seized 116 grams of crack cocaine and recovered two firearms. As a previously convicted felon, Baylor is prohibited from legally possessing firearms.
The sentencing is the culmination of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Bristol, Tennessee Man Sentenced for Role in Meth ConspiracyRead the Press Release
ABINGDON, VIRGINIA – A Bristol, Tennessee man, previously convicted of methamphetamine charges, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon.
Roy Clyde Newton III, 52, of Bristol, Tenn., pled guilty in October 2015 to one count of conspiring to possess with the intent to distribute methamphetamine. Today in District Court, Newton was sentenced to 37 months of federal incarceration to be followed by three years of supervised release.
“This case is an example of how law enforcement has pushed back against the recent resurgence of methamphetamine cases in the Western District of Virginia,” United States Attorney John P. Fishwick Jr. said today. “We will continue to prosecute those who manufacture and distribute this dangerous substance.”
The investigation of the case was conducted by the Bristol Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Bristol Office of the Drug Enforcement Administration, the Virginia State Police, the Sheriff's Offices of Washington County, Russell County, Tazewell County, and Smyth County, the Commonwealth's Attorney's Offices of Russell County and Tazewell County and the police departments of Abingdon and Lebanon. Special Assistant United States Attorney Kevin Jayne prosecuted the case for the United States.
Asheville, N.C. Man Sentenced to More Than 13 Years in Prison for Armed Robbery of Fast Food RestaurantRead the Press Release
ASHEVILLE, N.C. – On Thursday, February 11, 2016, U.S. District Judge Martin Reidinger sentenced Gordie Leroy Penson, 38, of Asheville, to 161 months in prison for the August 2014 armed robbery of a fast food restaurant, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Reidinger also sentenced Penson to five years of supervised release.
U.S. Attorney Rose is joined in making today’s announcement by C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Tammy Hooper of the Asheville Police Department.
According to filed court documents, evidence presented at Penson’s trial and yesterday’s sentencing hearing, on August 2, 2014, Penson robbed at gunpoint a Bojangle’s restaurant located on Merrimon Avenue in Asheville. Court records show that Penson entered the restaurant at approximately 9:55 in the evening and proceeded to demand money, first from the drive-thru cashier, threatening to shoot her if she did not open the cash drawer. According to court records, Penson then escorted the manager to the store’s safe and fired his gun once when the manager was unable to open the safe on the first attempt. According to court records, Penson fled the restaurant with $1,019 in cash.
A federal jury convicted Penson of one count of Hobbs Act Robbery, one count of unlawful use and carry of a firearm in furtherance of a crime of violence and one count of possession of a firearm by a convicted felon. According to trial evidence and yesterday’s sentencing hearing, Penson has prior convictions in North Carolina for robbery with a dangerous weapon.
Penson has been in federal custody since April 2015. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by ATF and the Asheville Police Department. The case was prosecuted by Assistant United States Attorney John Pritchard of the U.S. Attorney’s Office in Asheville.
Armed Heroin Trafficker Sentenced to More Than 7 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MIGUEL DIAZ, also known as “Smooth,” 35, of Hartford, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 90 months of imprisonment, followed by three years of supervised release, for possessing heroin with the intent to distribute and possessing a firearm in furtherance of a drug trafficking offense.
According to court documents and statements made in court, in May 2015, DIAZ led Hartford police on a high-speed pursuit, during which he threw a bag containing more than 300 wax paper sleeves of heroin from his car. DIAZ drove through lanes of opposing traffic, maneuvered recklessly and nearly collided with several cars, forcing officers to stop the pursuit. Officers apprehended DIAZ a short time later at his Hartford residence. A search of DIAZ’s person revealed approximately $2,400 in cash, and a search of his apartment yielded additional heroin, packaging material, a loaded 9mm Hi-Point Model C-9 handgun and 9mm ammunition.
DIAZ has been detained since his arrest. He pleaded guilty on November 18, 2015.
DIAZ has 16 prior convictions, including convictions for weapons and drug offenses.
This case was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case was prosecuted by Assistant U.S. Attorneys Michael J. Gustafson and Gabriel J. Vidoni.
Arlington, Texas, Businessman Sentenced to Statutory Maximum of 36 Months in Federal Prison and Fined $250,000 for Omitting Nearly $5 MIllion in Income on Filed Tax ReturnRead the Press Release
FORT WORTH, Texas — An Arlington, Texas, businessman has been sentenced to the statutory maximum sentence following his guilty plea in August 2015 to a federal felony tax offense, announced U.S. Attorney John Parker of the Northern District of Texas.
Avan Nguyen, according to the factual resume filed in the case, operates Nava Material Goods, Inc., a wholesale business for beauty and/or nail salon products in Arlington, Texas. He was sentenced this week by U.S. District Judge John McBryde to the statutory maximum sentence of three years in federal prison, and he was also ordered to pay a $250,000 fine. He must surrender to the Bureau of Prisons on March 1, 2016.
Nguyen pleaded guilty to an Information charging aiding and assisting in the preparation and presentation of a false and fraudulent return, statement or other document. According to the plea agreement filed in the case, Nguyen agreed to forfeit $1.1 million that the government seized from his bank accounts and business in 2013. As noted in court during the sentencing hearing, Nguyen made full restitution of approximately $337,864 to the IRS prior to sentencing.
According to the factual resume filed in the case, in 2012, Nguyen aided and assisted in the preparation and presentation of Nava Material Good Inc.’s U.S. Corporate Income Tax Return (Form 1120) for 2011. When filing that return, Nguyen aided and assisted another by willfully omitting approximately $4,910,697.60 of income on the return.
IRS Criminal Investigation was in charge of the investigation. Assistant U.S. Attorney Brian Poe prosecuted the case.
# # #
An editorial from U.S. Attorney William Hochul regarding young people and technology for your considerationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Another week has passed, and three more defendants have been charged by this Office with producing or receiving child pornography. A 14 year old girl murdered in Virginia. These and other cases share the common trait of alleged predators luring and manipulating children over social media.
It’s common to see teenagers attached to their cell phones throughout the day. Everyone knows that today’s device is a powerful internet access tool capable of connecting users to others throughout the world. Most seriously underestimate the frequency with which their children are exposed to sexually explicit texts and photographs.
According to one university study, 20 to 30% of teens will send or receive sexually explicit texts. 70% of teen-age girls will be asked to send a naked picture. As our investigations demonstrate, such requests come from both peers and predators seeking contact with vulnerable youth.
Neither denial nor ignorance provide any protection for children caught-up in a perfect storm of technology and vulnerability. Rather, safety lies in constant parent/child communication, and adult education and familiarity with computer applications, teen-age realities, and even language.
As internet dangers have multiplied, parents today must be as conversant in discussing “bytes and bits” as they are in discussing the “birds and bees.” Kids are warned to avoid strangers, but they also need to know that strangers lurk online and online messages and photographs can be preserved forever. Not hitting “send” is the best defense against future regret.
I urge parents to take full advantage of parental controls to monitor usage, media activity, and who your child is contacting. Learn to detect vault applications and icons used to conceal explicit videos and photographs.
Finally, know the common social media sites and terminology used. Some are shocked when they discover what the code words and symbols being used by their children really mean.
Being a teenager can be exciting and difficult. Today’s technology and social media enhance both realities. By becoming a technology expert, parents and adults help children navigate these challenges before our Office gets involved.
Alleged Con Man Charged with Impersonating a Psychiatrist and Prescribing Medications to Dozens of Patients in ChicagoRead the Press Release
CHICAGO — An alleged con man has been charged in federal court with holding himself out as a psychiatrist and fraudulently prescribing medications to a nine-year-old child and dozens of others.
SCOTT C. REDMAN, 36, used the identity of an Illinois physician to see patients and prescribe medications at a clinic on Chicago’s Near North Side, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. The real physician is a resident at a different Illinois medical facility.
Redman used the physician’s name to prescribe 71 prescriptions to 44 individuals from Dec. 10, 2015, to Jan. 30, 2016, according to the complaint. The purported patients included a nine-year-old child, who was prescribed a 30-day supply of Vyvanse, which treats attention deficit hyperactivity disorder, the complaint states.
Redman, formerly of Hammond, Ind., was arrested Wednesday. The complaint charges him with intentionally using a fictitious registration number in the name of another person to distribute and dispense a controlled substance. The charge is punishable by up to four years in prison.
Redman appeared yesterday before U.S. Magistrate Judge Jeffrey Cole and was ordered held in federal custody. A detention hearing is scheduled for Feb. 16, 2016, at 10:00 a.m.
According to the complaint, Redman maintained office hours at the clinic to treat his supposed patients. A purported profile of Redman on the clinic’s website contained the name of the real physician, alongside a photograph of Redman and fraudulent biographical and educational information, according to the complaint.
In addition to the Vyvanse, Redman prescribed other controlled substances, including Adderall, Clonazepam and Zolpidem Tartrate, the complaint states.
The complaint was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration.
The public is reminded that a complaint 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. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Katie M. Durick.
Abilene Man Sentenced to 121 Months in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
ABILENE, Texas — Michael Cleo Ivy, 37, of Abilene, Texas, was sentenced on Thursday, February 11, by Chief U.S. District Judge Jorge A. Solis to 121 months in federal prison, following his guilty plea in July 2015 to an indictment charging one count of possession of prepubescent child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Following sentencing, Judge Solis remanded Ivy, who had been on bond, to the custody of the U.S. Marshal.
According to documents filed in his case, Ivy used the computer at his residence to search for images and videos of child pornography, and in the course of those searches, he also located, downloaded, and viewed numerous images and videos constituting child pornography. Some of those images involved prepubescent minors.
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.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Abilene Police Department investigated the case. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
# # #
11 February 2016
Wilson Man Sentenced for Heroin and Crack Conspiracy and Firearm OffenseRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court yesterday Senior United States District Judge Malcolm J. Howard, sentenced CLAUDE KING, 42, of Wilson, North Carolina, to 171 months’ imprisonment followed by 5 years’ supervised release.
September 14, 2015, KING pleaded guilty to Conspiracy to Distribute and Possess with Intent to Distribute a Quantity of Heroin and Cocaine Base (Crack) and Possession of a Firearm in Furtherance of a Drug Trafficking Offense.
The investigation of KING began in 2013 for heroin and crack distribution. In September 2013, KING was arrested as he returned from New York with 50 grams of heroin. A search warrant was executed and a firearm was found at his home.
KING is responsible for the distribution of kilogram quantities of heroin in Wilson, Pitt, Beaufort, and Dare counties.
The criminal investigation of this case was conducted by the Drug Enforcement Administration, Wilson Police Department, Greenville Police Department, Beaufort County Sheriff’s Office, and Dare County Sheriff’s Office. Assistant United States Attorney Jennifer Wells handled the prosecution on behalf of the Eastern District of North Carolina.
Veterans Affairs Official Sentenced for Accepting Gifts in Relation to His Job DutiesRead the Press Release
SACRAMENTO, Calif. —Anthony Castaneda, 45, of Oakdale in Stanislaus County, was sentenced today by Judge Morrison C. England Jr. to serve five months of house arrest and two years of probation for receipt of a gratuity by a public official, United States Attorney Benjamin B. Wagner announced.
According to court documents, while working as a contracting official at the Department of Veterans Affairs, Castaneda was in a position to influence the award of construction contracts at VA facilities, including the VA hospital at the former Mather Field in Sacramento. In 2010, Castaneda received from a construction contractor a prepaid vacation package at a theme park worth approximately $2,250. Castaneda and his family traveled to the theme park for five days in October 2010. At the time that he accepted that gift, Castaneda was in a position to influence the award of construction contracts by making recommendations about which contractors should be given VA business. Court records also show that Castaneda received a second vacation package from the same contractor, worth approximately $1,440, in 2008.
In addition to his period of house arrest, Castaneda was ordered to forfeit the value of the 2010 vacation package and to pay a $2,000 fine.
The contractor in question has been charged separately in federal court in San Jose: United States v. Herrera, case number 5:14-cr-219. He pleaded guilty and on December 16, 2015, was sentenced to three years’ probation.
This case was the product of an investigation by the Veterans Affairs Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorney Matthew G. Morris prosecuted the case.
United States Announces Approximately $10 Million Settlement with Four Physicians and Two Compounding PharmaciesRead the Press Release
Jacksonville, FL – United States Attorney A. Lee Bentley, III announces that two compounding pharmacies - WELLHealth and Topical Specialists, as well as four physicians - Manish Bansal, Mehul Parekh, Marisol Arcila, and Syed Asad, have agreed to pay the government a total of approximately $10 million to resolve allegations involving TRICARE, the military’s healthcare program.
The United States contends that Topical Specialists was created by the pharmacist for WELLHealth and four physicians - Bansal, Parekh, Arcila, and Asad. It was meant to be a standalone pharmacy, but was unable to obtain separate contracts with the government healthcare programs. Instead, Topical Specialists simply sent all of its prescriptions to WELLHealth, which in turn submitted these prescriptions to the federal government.
The United States alleges that Bansal, Parekh, Arcila, and Asad had an incentive to refer prescriptions to their pharmacy, as steering costly prescriptions to Topical Specialists resulted in lucrative revenue streams for the doctors. The United States contends that these four physicians wrote hundreds of prescriptions for pain and scar creams. After speaking with patients, the government contends that these prescriptions were often not used by patients, despite the tremendous cost to the government. While the pharmacies billed the federal government tens of thousands of dollars for these creams, the cost to actually compound them was often 4-5% of the submitted cost. Records reviewed by the government showed that the pharmacy was making up to 90% profit for each cream submitted to the TRICARE program. This profit was then disbursed to the doctors who wrote the prescriptions. In some cases, the four physicians recruited other doctors to write prescriptions – promising to share revenue with them. The government alleges that in some cases, the doctors who wrote prescriptions to Topical Specialists and WELLHealth received up to 40% of the reimbursement.
At one point, certain defendants suggested that payments to physicians for these prescriptions were legitimate because these physicians were engaged in a “research study” to monitor the clinical effectiveness of these creams. No patient contacted by the government knew that they were enrolled in a research study, and no research findings were ever published.
Roughly 40% of the prescriptions submitted by WELLHealth and Topical Specialists were written by these four physicians. Bansal is a cardiologist at Baptist Hospital. Arcila is a pain management physician at Premier Spine & Pain Center. Asad is a neurologist at Universal Neurological Care. Parekh is a general practice physician at Baptist Hospital. All four received hundreds of thousands of dollars in reimbursements.
“The United States Attorney’s Office is committed to fighting healthcare fraud wherever it may occur,” said U.S. Attorney Bentley. “Those who defraud the TRICARE program are stealing funds that should be used to provide quality healthcare to military families. We will continue to use every weapon at our disposal to stamp out this fraud and recover misappropriated funds.”
Today’s settlement involved false claims submitted to the TRICARE program. This case was developed as part of a broader effort to identify and target unscrupulous compounding pharmacies. The United States Attorney’s Office for the Middle District of Florida has been focusing efforts on pharmacies that abuse the TRICARE program and defraud the government. Since March 2015, the district has collected more than $50 million in recoveries related to compounding pharmacies.
"The Defense Criminal Investigative Service is committed to protecting the integrity of TRICARE, the U.S. military health care program, so that it continues to provide quality medical care to America's Warfighters and their families, while ensuring that health care facilities and providers comply with Federal laws and regulations," said John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service - Southeast Field Office. "Through joint investigations with our law enforcement partners, DCIS will fully pursue both civil remedies to recover taxpayer dollars and criminal prosecutions to bring violators to justice."
"I applaud the Department of Justice and the U.S. Attorney for the Middle District of Florida for holding these pharmacies and physicians accountable for their actions," said Vice Admiral Raquel Bono, director of the Defense Health Agency. "Their egregious actions targeted American service members, veterans and their families, and in many cases offered them products with little or no substantiated evidence that they would improve health outcomes. The Defense Health Agency will continue working closely with the Justice Department and other state and federal agencies to investigate all those who participated in these nefarious, fraudulent practices."
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary 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. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered more than $27.1 billion through False Claims Act cases, with more than $17.1 billion of that amount recovered in cases involving fraud against federal health care programs.
Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, including the conduct described in this case, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
These cases were investigated by Health and Human Services Office of Inspector General (HHS/OIG), Office of Personnel Management (OPM), the Department of Veterans Affairs Office of Inspector General (VA/OIG), Defense Criminal Investigative Services (DCIS), and the Federal Bureau of Investigation (FBI) and were prosecuted by Assistant United States Attorney Jason Mehta.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Un Hombre de Elk Grove Arrestado y Acusado de Defraudar Inmigrantes Indocumentados en una Estafa de Adopción de AdultosRead the Press Release
SACRAMENTO, Calif. — Helaman Hansen, de 63 años de edad, y residente de Elk Grove fue arrestado hoy después de que un gran jurado federal dictara una acusación formal de 13 cargos inculpándolo de conspirar para cometer fraude por correo y fraude por telegrama, 11 cargos de fraude por correo y uno cargo de fraude por telegrama para operar un programa de adopción de adultos fraudulento que se dirigía a personas indocumentadas, ha anunciado el Procurador Federal Benjamín B. Wagner.
Según los documentos del tribunal, entre los meses de octubre de 2012 y enero de 2016, Hansen y otras personas utilizaron varias entidades como la organización Americans Helping America (AHA) para vender afiliaciones a miembros de comunidades de inmigrantes para lo que él llamaba un “Programa de Migración.” Un distintivo central del programa era el reclamo fraudulento de que los inmigrantes adultos podrían conseguir la ciudadanía americana si eran legalmente adoptados por un ciudadano americano y después de cumplir con una lista de cometidos adicionales. Al principio, las afiliaciones eran vendidas por una cuota anual de $150 dólares, pero esa cuota aumentó gradualmente hasta que eventualmente alcanzó la elevada cifra de $10,000 dólares.
Según la acusación formal, ni una sola persona obtuvo la ciudadanía aunque algunas de las víctimas habían completado la fase de adopción del “Programa de Migración.” Tan pronto como octubre de 2012, Hansen había sido informado por los Servicios de Ciudadanía e Inmigración que aquellas personas indocumentadas adoptadas después de cumplir los 16 años no podrían obtener la ciudadanía de la manera en la que lo estaba promoviendo Hansen. A pesar de ello, Hansen y sus co-conspiradores indujeron a aproximadamente 500 víctimas a pagar más de $500,000 dólares en cuotas para hacerse socios del programa fraudulento.
Este caso es el producto de una investigación llevada a cabo por la Oficina Federal de Investigaciones (FBI) y de las Investigaciones para la Seguridad Nacional (HSI) del Servicio del Orden Público de Inmigración y Aduanas de los Estados Unidos (ICE). El Procurador Federal Auxiliar André M. Espinosa está procesando el caso.
Si es declarado culpable, Hansen se enfrentaría a una pena máxima establecida por la ley de 20 años de prisión y una multa de $250,000 dólares. No obstante, cualquier sentencia sería determinada según la discreción del tribunal después de considerar cualquier factor establecido por la ley aplicable y las Normas para Sentenciar Federales. Los cargos son solo alegaciones; el demandado es presunto inocente hasta y a menos de que sea encontrado culpable sin duda razonable.
Se urge a las víctimas a llamar al FBI al 916-977-2479.
U.S. Attorney's Office issues warning about IRS phone scamsRead the Press Release
CHARLESTON, W.Va. – Several West Virginians have contacted the United States Attorney’s Office about robocalls fraudulently claiming to be from the Internal Revenue Service (IRS) and demanding immediate payment, announced Acting United States Attorney Carol Casto. These calls are not from the IRS, and are merely another scam carried out by criminals. The robocalls often contain aggressive language, insist on payment within an hour of the call, and threaten punishment if back taxes are not paid.
“These IRS phone scams can happen any time, not just around tax season, and people need to be wary. Criminals will use any trick to swindle honest people out of their hard-earned money, including phone calls to the home.” said Acting United States Attorney Casto. “We will continue working with the IRS to hold these criminals accountable and help West Virginians protect their personal and financial information.”
Be aware that many of these IRS phone scams use intimidating or bullying language to get payment for back taxes. The IRS will not contact you to demand immediate payment, and will not call you prior to sending a bill by mail. The IRS will also not demand that you pay your taxes a certain way or ask for credit card numbers over the phone. Most importantly, a legitimate call from the IRS will not threaten to have police arrest you for not paying.
Remember, if you think you owe taxes, call the IRS at 800-829-1040 and IRS workers can provide assistance. If you get one of these scam phone calls, you can contact the Treasury Inspector General for Tax Administration to report the call at 800-366-4484 or online at www.treasury.gov/tigta/contact_report_scam.shtml.
-
Follow us on Twitter: SDWVNews
-
Two Men Sentenced in Bradford County “Bath Salts” CasesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kurt Smith, age 50, formerly of Wyalusing, Pennsylvania, was sentenced today and Patrick Russell, age 50, of LeRaysville, Pennsylvania, was sentenced February 10, 2016, by U.S. District Court Judge Edwin M. Kosik in Scranton, for drug related offenses.
According to United States Attorney Peter Smith, Judge Kosik sentenced Smith to 24 months imprisonment for conspiracy to distribute and possession with intent to distribute Alpha-PVP, commonly known as “bath salts.” Smith imported two kilograms of the substance from sources of supply in China by placing orders over the internet. The bath salts were then distributed by Smith and other individuals in Bradford County. Smith has since moved to Kentucky.
Smith was initially charged in a Criminal Information on August 25, 2015 and pled guilty on September 8, 2015.
Russell was sentenced to 31 months imprisonment for his involvement in the conspiracy to distribute and possession with intent to distribute “bath salts.” Russell was directly involved in the importation and distribution of at least 500 grams of bath salts.
Russell was initially charged in an Indictment on December 10, 2013 and pled guilty on April 14, 2015.
The cases were investigated by Drug Enforcement Administration (DEA), the Pennsylvania State Police, and the Athens Borough Police Department and were prosecuted by Assistant U.S. Attorney Todd K. Hinkley.
# # #
Two Indicted in Fresno for Drugs and Firearms OffensesRead the Press Release
FRESNO, Calif. — A federal grand jury returned two indictments today charging two individuals with drug trafficking offenses and one with an additional firearms charge, United States Attorney Benjamin B. Wagner announced.
In the first indictment, Michael Paul Lopez, 32, of Fresno, was charged with with being a felon in possession of a firearm and ammunition and with possession of a controlled substance with the intent to distribute. According to court documents, on January 12, 2016, Lopez, a previously convicted felon, was in possession of a Raven Arms MP .25-caliber handgun that was loaded with .25-caliber ammunition. He was also in possession of methamphetamine.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. It was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
In the second indictment, the federal grand jury returned a two-count indictment against Ivan Vizcarra, 28, of Los Angeles, charging him with federal drug trafficking offenses. According to court documents, on November 19, 2015, Vizcarra was arrested by the Fresno Police Department after he attempted to deliver 12 pounds of methamphetamine.
This case is the product of an investigation by the Drug Enforcement Administration and the Fresno Police Department. Assistant United States Attorney Daniel J. Griffin is prosecuting both cases.
If convicted, both defendants face a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Twelve Methamphetamine Traffickers Sentenced to PrisonRead the Press Release
STATESVILLE, N.C. – U.S. District Judge Richard L. Voorhees handed down prison terms ranging from 21 to 120 months to 12 methamphetamine traffickers, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in Atlanta and the Carolinas; Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; and C. J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division
The 12 defendants sentenced today and yesterday in U.S. District Court in Statesville are:
-
Chang Cheng Vang, 20, of Hickory, NC, was sentenced to 120 months, followed by 5 years of supervised release. (5:15-cr-38)
-
Christopher Dwayne Helton, 31, of Connelly Springs, NC, was sentenced to 120 months, followed by 5 years of supervised release. (5:15-cr-25)
-
Shannon Marie Williams Greene, 37, of Hickory, NC, was sentenced to 105 months, followed by 3 years of supervised release. (5:15-cr-49)
-
Moises Valdovinos, 33, of Mexico, was sentenced to 97 months, followed by 5 years of supervised release. (5:14-cr-66)
-
Adrian Demarcus Perkins, 21, of Montezuma, GA, was sentenced to 97 months, followed by 3 years of supervised release. (5:15-cr-53)
-
Juan Jesus Santellan, 24, of Hickory, NC, was sentenced to 78 months, followed by 3 years of supervised release. (5:15-cr-47)
-
Bobby James Testerman, 31, of Jefferson, NC, was sentenced to 60 months, followed by 4 years of supervised release. (5:15-cr-42)
-
Jamie Martinez-Benitez, 27 of Mexico, was sentenced to 60 months, followed by 4 years of supervised release. (5:15-cr-62)
-
Travis Layden Bare, 39, of West Jefferson, was sentenced to 60 months, followed by 4 years of supervised release. (5:15-cr-52)
-
Anthony Ray Mauney, 30, of Maiden, NC, was sentenced to 51 months, followed by 5 years of supervised release. (5:15-cr-40)
-
Jose Luis Zavala, 20, of Hickory, NC, was sentenced to 46 months, followed by 3 years of supervised release. (5:14-cr-60)
-
Gerardo Espino Albarran, 25, of Mexico, was sentenced to 21 months, followed by 1 year of supervised release. (5:14-cr-66)
The sentencings are the result of two parallel and coordinated Organized Crime Drug Enforcement Task Force (OCDETF) investigations, codenamed “Dixie Crystal” and “Lay Low,” handled by HSI, DEA, and ATF, with the assistance of the North Carolina State Bureau of Investigation, North Carolina State Highway Patrol, Alexander County Sheriff’s Office, Alleghany County Sheriff’s Office, Ashe County Sheriff’s Office, Boone Police Department, Caldwell County Sheriff’s Office, Catawba County Sheriff’s Office, Hickory Police Department, Iredell County Sheriff’s Office, Lenoir Police Department, Lincoln County Sheriff’s Office, Mooresville Police Department, Pineville Police Department, Statesville Police Department, Burke County Task Force, and other law enforcement agencies throughout North Carolina and Texas, Georgia, and Tennessee.
According to court documents, to date, more than 80 individuals have been convicted as a result of the two related investigations. Court records show that the drug trafficking organizations involved have trafficked methamphetamine worth millions of dollars. Over the course of the investigation, law enforcement seized more than 10 kilograms of crystal methamphetamine, $100,000 in U.S. currency and other assets, and numerous firearms.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement U.S. Attorney Rose thanked all the law enforcement agencies for their investigative efforts. The prosecution is being handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
-
Three brothers charged with operating $4 million food stamp fraud conspiracy from their Cleveland storeRead the Press Release
A six-count indictment was filed in federal court charging three brothers for their roles in a $4 million food stamp fraud conspiracy operated through their Cleveland business, law enforcement officials said.
Mohammad H. Mohammad, 52 of Parma; Omar H. Mohammad, 49, of Parma, and Rashid H. Mohammad, 53, of Strongsville, are each charged with one count of conspiracy to commit food stamp fraud, one count of food stamp fraud and one count of unlawful redemption of food stamps. Mohammad Mohammad also faces three additional counts of engaging in financial transactions with proceeds from specified unlawful activity.
The Mohammads and others conspired to commit more than $4 million in food stamp fraud through the use of their business, Holyland Imported Goods, located at 11717 Lorain Avenue. This took place between 2003 and 2015, according to the indictment.
The investigation revealed the defendants and others used their business to exchange customer food stamps for cash and other unauthorized items. The defendants also engaged in a pattern of purchasing customer food stamp cards and using them at other grocery locations to purchase inventory for Holyland, according to the indictment.
The indictment also seeks to recover $4 million, including nearly $900,000 that has been seized from various bank accounts.
“For more than a decade, these defendants have been cheating the taxpayers by illegally accepting food stamp cards they knew didn’t belong to the card holder, and accepting food stamps for prohibited items, including tobacco and prepared food for resale at restaurants,” said Acting U.S. Attorney Carole S. Rendon. “We will continue to prosecute violations of the food stamp program, which is designed to help the most vulnerable in our community, not enrich those who prey on them.”
“This investigation and prosecution should send a strong zero-tolerance message to those individuals who attempt to defraud U.S. Department of Agriculture programs,” said Anthony V. Mohatt, Special Agent in Charge, USDA-OIG-Investigations. “It should also serve as a warning to all that fraud will be vigorously investigated and prosecuted by the USDA-OIG, the U.S. Attorney's Office, and all its federal, state, and local partners that have a stake in ensuring that fraud is eliminated from taxpayer funded programs.”
“The Supplemental Nutrition Assistance Program was designed to help the men, women and children of Cleveland with the purchase of eligible items, not to be used for the purchase of unauthorized items or to be exchanged for cash,” said Guy A. Ficco, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “IRS Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money.”
“The Mohammad’s engaged in millions of dollars of fraud targeting federal government food assistance programs in order to line their pockets,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “Driven by their greed, they showed a complete disregard for those who were truly in need.”
This case is being prosecuted by Assistant U.S. Attorneys Christos N. Georgalis, M. Kendra Klump and Phillip J. Tripi after an investigation by agents of the United States Department of Agriculture, Office of Inspector General-Investigations, the Internal Revenue Service – Criminal Investigations, the Federal Bureau of Investigation, Ohio Department of Public Safety and the Lakewood Police Department.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tax Return Preparer Arrested on Fraud and Theft ChargesRead the Press Release
PHILADELPHIA - Martin W. Kennedy, 68, of Coatesville, PA, was arrested today on charges of preparing false tax returns and theft of government property, announced United States Attorney Zane David Memeger.
According to an indictment filed February 9, 2016, Kennedy, an employee of the Department of Veterans Affairs’ Hospital located in Coatesville, PA, prepared approximately 176 federal income tax returns for other individuals, including his co-workers, during the years 2010 through 2013, which fraudulently sought tax refunds of approximately $610,526. It is further alleged that the tax returns that Kennedy prepared contained false financial information regarding the filers’ Schedule C Business Expenses and the filers’ Schedule a Medical Expenses, Charitable Deductions and phantom losses from the sale of business property. In addition to charging his co-workers a fee for preparing their tax returns, Kennedy allegedly stole a portion of the refunds that he generated for his clients by having a portion of the tax refunds deposited into his personal bank account. To accomplish his alleged theft, Kennedy prepared, without the filers’ knowledge, IRS Form 8888 requesting that a portion of the refund be deposited into a bank account controlled by Kennedy with the remaining amount of the refund deposited into the filers’ account.
If convicted of all counts, Kennedy faces a substantial period of incarceration, a possible fine, restitution to the IRS, a period of supervised release, and a $1,400 special assessment.
The case was investigated by the Office of Inspector General for Department of Veterans Affairs and IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorney Floyd J. Miller.
St. Croix Man Pleads Guilty to Wire FraudRead the Press Release
St. Croix, USVI – On Thursday, February 11, 2016, Miguel Esperanza-Vazquez, 60, pleaded guilty in federal court to wire fraud, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement filed with the court, on May 12, 2013, Esperanza-Vazquez, caused a money order to be transmitted from Texas to the Virgin Islands as part of an illegal scheme in which the defendant purported to be able to influence an undocumented immigrant’s residency status. The parties agreed that the total loss to the victim was $14,999.
Esperanza-Vasquez faces a maximum of 20 years in prison and a $250,000 fine. A sentencing date has been set for June 15, 2016.
The case is the result of months of investigative work by the IRS-Criminal Investigation, the U.S. Department of Homeland Security Office of the Inspector General, the U.S. Immigration and Customs Enforcement Office of Professional Responsibility, and the Federal Bureau of Investigations. The case is being prosecuted by Assistant U.S. Attorney Christian Stringer.
Southern California Man Charged with Bank Fraud, Wire Fraud, and Theft or Embezzlement of Pension Funds in Marin and San Mateo CountiesRead the Press Release
SAN FRANCISCO –A federal grand jury indicted Alan Weissman with bank fraud, wire fraud, theft or embezzlement from an employee pension benefit plan, and making false statements in documents required by the Employee Retirement Income Security Act (ERISA), announced Acting United States Attorney Brian J. Stretch and the Employee Benefits Security Administration of the Department of Labor
Weissman, 70, of Rancho Palos Verdes, Calif., allegedly served as a professional trustee of pension plans. According to the indictment, from September 2010 to November 2011, he used his position as trustee of two plans to funnel money into his own bank accounts and the accounts of a business he controlled. ERISA is the federal statute governing most pension plans. Under ERISA, a trustee of a plan is responsible for safeguarding pension plan assets and ensuring that they are invested prudently and in conformity with the directives of the trust agreement, and is prohibited from self-dealing. Nevertheless, according to the indictment, Weissman made hundreds of thousands of dollars of payments to himself and his business without the authorization or knowledge of the pension funds, the plan sponsors, or participants. The payments also allegedly violated the plans’ trust agreements, Weissman’s fiduciary obligations, and the ERISA statute.
The indictment further alleges that Weissman attempted to hide the fact that he stole the money. In part, Weissman accomplished this by falsely telling representatives of the pension plan that the entity holding the funds had been “hacked” and that, as a result, he had not been able to produce account statements. In addition, the indictment alleges that Weissman (1) altered and forged account statements and other documents to give the appearance that the money he converted was not missing from the accounts, (2) falsely reported to an auditor that some of the stolen funds were actually paid as investment fees, and (3) falsely stated at a deposition that some of the funds were moved from one account to another so as to earn “a higher rate of return.”
Weissman is charged with five counts of bank fraud, in violation of 18 U.S.C. § 1344; six counts of wire fraud, in violation of 18 U.S.C. § 1343; two counts of theft or embezzlement from an employee benefit plan, in violation of 18 U.S.C. § 664; and one count of making false statements and concealment of facts in relation to documents required by ERISA, in violation of 18 U.S.C. § 1027.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the maximum statutory penalty for bank fraud is 30 years’ imprisonment and a fine of $1,000,000 or twice the gross gain or loss resulting from the offense. The maximum statutory penalty for each count of wire fraud is 20 years’ imprisonment and a fine of $250,000 or twice the gross gain or loss resulting from the offense. The maximum statutory penalty for each count in violation of 18 U.S.C. § 664 and 18 U.S.C. § 1027 is 5 years’ imprisonment and a fine of $250,000 or twice the gross gain or loss resulting from the offense. Additional periods of supervised release and restitution also apply. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Benjamin Kingsley is prosecuting the case with assistance from Jessica Meegan. The prosecution is the result of an investigation by the San Francisco Regional Office of the Employee Benefits Security Administration of the Department of Labor.
South Charleston woman pleads guilty to Federal heroin crimeRead the Press Release
CHARLESTON, W.Va. – A South Charleston woman pleaded guilty today to possession with intent to distribute heroin, announced Acting United States Attorney Carol Casto. Sarah Elizabeth Myers, 28, entered her guilty plea in federal court to the drug charge.
Myers admitted that on May 15, 2015, she traveled to Columbus to pick up a supply of heroin. When she returned to West Virginia, law enforcement stopped her for speeding. During the stop, officers found over 100 grams of heroin hidden in the rear passenger side door panel. Myers admitted it was her intent to distribute the heroin in the Charleston area.
Myers faces up to 20 years in federal prison and a $1 million fine when she is sentenced on May 9, 2016.
The case against Myers was investigated by the South Charleston Police Department and members of the Drug Enforcement Agency Task Force. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The hearing was held before United States District Judge John T. Copenhaver, Jr.
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.
-
Follow us on Twitter: SDWVNews
-
Seven Hills man indicted for distributing oxycodone, other pillsRead the Press Release
An 11-count indictment was filed in federal court charging a Seven Hills man for conspiring to distribute oxycodone and other pills, Acting U.S. Attorney Carole Rendon said.
Alfonso C. Yunis, 42, was indicted on one count of conspiracy to possess with intent to distribute oxycodone, two counts of distribution of oxycodone, two counts of using U.S. mail to facilitate a felony and six counts for distribution of controlled substances, including Alprazolam, testosterone, amphetamines, oxycodone, Diazepam, and others. These actions took place between Sept. 9 and Oct. 26, 2015, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Marisa Darden following an investigation by United States Postal Inspection Service
If convicted, the defendant's sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An indictment 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.
Sentencings for February 5 - February 9, 2016Read the Press Release
Kenneth J. Canero, 39, of Buffalo, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 9, 2016, for conspiracy to distribute 500 grams of a mixture or substance containing a detectable amount of methamphetamine. Canero was arrested in Gillette, Wyoming. He received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $200.00 fine and a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Gabriel Tena-Bencomo, aka Gabriel Gutierrez, 29, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on February 8, 2016, for illegal re-entry of a previously deported alien into the United States. Tena-Bencomo was arrested in Jackson, Wyoming. He received 13 months imprisonment, to be followed by two years of supervised release, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Josue Tzompa-Ramirez, 30, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on February 8, 2016, for illegal re-entry of a previously deported alien into the United States. Tzompa-Ramirez was arrested in Jackson, Wyoming. He received 13 months imprisonment, to be followed by two years of supervised release, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Michael D. Backes, 39, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 5, 2016, for conspiracy to distribute 500 grams of a mixture or substance containing a detectable amount of methamphetamine. Backes was arrested in Cheyenne, Wyoming. He received 120 months imprisonment, to be followed by five years of
supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Second Texas Woman Sentenced in Credit Card Fraud SchemeRead the Press Release
BOISE – Charmaine Danelle Montgomery, 23, of Fort Worth, Texas, was sentenced today in United States District Court to 30 months in prison, followed by three years of supervised release for perpetrating a credit card fraud scheme that targeted local retailers in June 2015, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Montgomery to pay $15,904.08 in restitution. Montgomery pleaded guilty on December 1, 2015.
According to the plea agreement, Montgomery admitted to traveling to the District of Idaho, along with her co-defendant, Brooke Darby, for the purpose of making fraudulent purchases of gift cards and merchandise from retail stores, using stolen credit card numbers encoded onto stock gift cards. Montgomery admitted to obtaining the stock debit cards encoded with unauthorized credit card numbers, and making purchases at retail stores on June 23 and June 24, 2015. In all, Montgomery admitted that she and Darby purchased approximately $13,095.90 in gift cards and merchandise with the fraudulently encoded gift cards. Upon their arrest, Darby and Montgomery were found in possession of approximately 250 gift cards encoded with unauthorized credit card numbers.
Co-defendant Darby also pleaded guilty and was sentenced on January 25, 2016, to 28 months in prison and three years of supervised release. She was also ordered to pay restitution.
The case was investigated by the United States Secret Service and the Boise Police Department.
Scottsbluff Man Sentenced for Theft of Government FundsRead the Press Release
United States Attorney Deborah R. Gilg announced that Frank A. Sanchez, Jr., 42, formerly of Scottsbluff, Nebraska, was sentenced today in Lincoln, Nebraska, to 90 days of home confinement by United States District Judge John M. Gerrard, for theft of government funds. Along with the home confinement, Sanchez was ordered to make restitution in the amount of $92,064.00, perform 150 hours of community service and to serve a term of five years on supervised release.
Frank Sanchez, Jr., was employed by Burlington Northern Santa Fe (BNSF) from August of 2004 through July of 2007, before filing for a Railroad Retirement Disability Annuity in November , 2007. The disability was based on numerous medical conditions and, after review, the U. S. Railroad Retirement Board (RRB) approved his claim and Sanchez began receiving an annuity.
In June of 2009, Sanchez completed a “Continuing Disability Report” at the request of the RRB. On that form, Sanchez stated there had been no change in his condition and that he had not returned to work. Sanchez then signed and submitted that report to the RRB. In April of 2012, Sanchez was again asked to complete a “Continuing Disability Report”. He failed to return the form to the RRB and he was notified in May of 2012 that his benefits would be discontinued.
Upon further investigation, the RRB discovered that Sanchez had indeed returned to work in August of 2009 and was currently employed again by BNSF. Once contacted, Sanchez admitted to receiving the disability annuity, provided a statement admitting his actions to the investigators, and demonstrated a willingness to make restitution in full. Sanchez’s disability annuity was officially discontinued in August of 2009. Computations by investigators determined that during the period he was receiving the disability annuity he fraudulently received $92,064.00.
The case was investigated by the Office of the Inspector General of the Railroad Retirement Board.
Sandy Springs Man Sentenced to Prison for Impersonating a U.S. MarshalRead the Press Release
ATLANTA - John Letcher Edens has been sentenced to one year in federal prison for impersonating a United States Marshal.
“Edens misrepresented that he was a U.S. Marshal to gain sensitive personal information to use in his skip tracing business,” said U.S. Attorney John Horn. “He abused the trust that is placed in law enforcement to make exigent requests for phone location data. Instead of using the data to rescue kidnapped children, he used it to repossess cars.”
“When someone fraudulently represents themselves as a deputy U.S. Marshal – or any law enforcement officer – the consequences can be serious. Eden was able to gain access to non-public information, which allowed him to harass one victim. His crimes had the potential to damage the trust that the U.S. Marshals Service has worked long and hard to establish with the public, private companies and fellow law enforcement agencies”, said U.S. Marshal Beverly Harvard.
According to U.S. Attorney John Horn, the charges and other information presented in court: In October and November, 2014, Edens falsely claimed to be a Deputy U.S. Marshal and submitted exigent request forms to a cellular phone provider in order to obtain location information about private citizens. Edens then used that private location information for his business as a skip tracer, in which he located individuals for the purpose of repossessing their vehicles. Precise location information is provided by cellular phone companies to law enforcement with a search warrant, or when exigent circumstances require the disclosure of such information before a search warrant may be obtained.
When submitting the exigent request forms, Edens fraudulently represented that children had been kidnapped and were in immediate danger in order to trick the cellular provider into providing private citizens’ location information without a search warrant. In one instance, Edens even harassed a victim.
On May 6, 2015, a grand jury charged Edens, 56, of Sandy Springs, Georgia, with seven counts of false impersonation of a U.S. Officer. Edens pleaded guilty to six of the seven counts on September 24, 2015. On February 10, 2016, U.S. District Judge Eleanor L. Ross Sentenced Edens to one year and one day, and ordered him to serve three years of supervised release and pay a special assessment of $600.
This case was investigated by the United States Marshals Service.
Assistant United States Attorney Jolee Porter prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Rufus Phelps Ordered Detained Pending Trial on Federal Firearms ChargeRead the Press Release
ALBUQUERQUE – This morning a U.S. Magistrate Judge found probable cause to support a criminal complaint charging Rufus Phelps, 25, of Albuquerque, N.M., with being a felon in possession of a firearm and ammunition. Phelps was ordered detained pending trial.
Phelps was arrested by the U.S. Marshals Service on Feb. 5, 2016, on the federal criminal complaint which alleged that he unlawfully possessed a firearm and ammunition on Feb. 4, 2016, in Bernalillo County, N.M. According to the federal criminal complaint, Phelps was arrested on state charges on Feb. 4, 2016, after Albuquerque Police Department (APD) officers observed Phelps in a parked car and recognized him from previous encounters. The officers arrested Phelps after a warrant check revealed that there was an outstanding warrant for his arrest.
At the time of his arrest by APD, Phelps allegedly possessed a loaded firearm and a “golf ball size amount of methamphetamine.” At the time, Phelps was prohibited from possessing firearms or ammunition because he previously had been convicted for the unlawful taking of a motor vehicle.
If convicted of the federal offense against him, Phelps faces a maximum sentence of ten years in federal prison. The charges against Phelps are merely accusations and he is presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department, with assistance from the U.S. Marshals Service. Assistant U.S. Attorney Eva M. Fontanez is prosecuting the case.
The case is being prosecuted as part of the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Removed Alien Pleads Guilty to Immigration ViolationRead the Press Release
PITTSBURGH - An individual found by the U.S. Department of Homeland Security, pleaded guilty in federal court to a charge of Illegal Reentry after Deportation, United States Attorney David J. Hickton announced today.
Marcial Machado-Orrellano, 29, a citizen of Honduras pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that Machado-Orrellano, an alien, who was previously removed from the United States by U.S. Immigration and Customs Enforcement on April 21, 2003, Sept. 1, 2004, and July 2, 2009, was taken into custody on May 28, 2015, by Immigration and Customs Enforcement, Homeland Security Investigations.
Judge Hornak scheduled sentencing for June 10, 2016 at 9:30 a.m. The law provides for a maximum total sentence of twenty years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Homeland Security Investigation conducted the investigation that led to the prosecution of Machado-Orrellano.