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1 February 2016
Three men sentenced in Federal court for roles in heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – Three men who conspired to distributed heroin in 2014 and 2015 were sentenced today in federal court, announced Acting United States Attorney Carol Casto. Cordell Lopasker McCarrall, Jr., 22, of Detroit, was sentenced to three years and a month in federal prison for possession with intent to distribute heroin. Roger Lee Black, 34, of Barboursville, was sentenced to four years and nine months in federal prison for distribution of heroin. Alan R. Nolan, 36, of Chesapeake, Ohio, was sentenced to two and a half years in federal prison for distribution of heroin.
From November 2014 to April 2015, McCarrall, Black, and Nolan conspired to distribute heroin in the Huntington area. McCarrall frequently supplied heroin to Black during this time period. Black would distribute the heroin with the assistance of Nolan. On February 26, 2015, a confidential informant working at the direction of the Drug Enforcement Administration (DEA) contacted Black to arrange the purchase of heroin. Black met the informant and drove the informant to Black’s residence located at 21 Vincent Street in Barboursville. Inside the residence, Black distributed approximately 10 grams of heroin to the informant in exchange for $1,200.
On March 3, 2015, a confidential informant again contacted Black to arrange another drug deal. Black and Nolan met the informant in the parking lot of a car dealership near Hal Greer Boulevard in Huntington, where Nolan distributed approximately 10 grams of heroin to the informant in exchange for $1,200.
On April 2, 2015, law enforcement executed a search warrant at a residence located at 2017 9th Avenue in Huntington. During the execution of the warrant, McCarrall ran from the residence and was quickly caught. As a result of the search, law enforcement discovered approximately 90 grams of heroin, $6,700 in cash, paraphernalia used to distribute heroin, and a magnetic concealment box commonly used to transport heroin. McCarrall admitted that he possessed and intended to sell the heroin seized from the residence.
All three men admitted that they were responsible for distributing up to 700 grams of heroin during the conspiracy. Black also admitted that he possessed multiple firearms during the conspiracy.
The DEA Task Force and the West Virginia State Police conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecutions. Chief United States District Judge Robert C. Chambers imposed the sentences.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Tampa Man Sentenced to More Than Seven Years for Tax Fraud and Identity Theft ConspiracyRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday today sentenced Bobby Muhammad to seven years and ten months in federal prison for theft of government property and identity theft stemming from his involvement in a stolen identity refund fraud (SIRF) conspiracy. The Court also ordered him to pay $650,631 in restitution to the U.S. Treasury, jointly and severally with his co-conspirator, Tiffani Pye Williams. Muhammad pleaded guilty on October 26, 2015.
According to court documents, from December 2011 through October 2015, Muhammad participated in a scheme to defraud the IRS. He, along with others, electronically filed fraudulent federal income tax returns using stolen identities. The fraudulently obtained tax refunds were wired from the IRS to reloadable debit cards. Muhammad and others then used these debit cards at various ATMs.
Investigators determined that Muhammad and his conspirators had filed fraudulent federal income tax returns using the stolen identities of more than 400 individuals to make claims for refunds totaling approximately $3,089,219, and had received approximately $650,631 in fraudulently obtained refunds.
Williams previously pleaded guilty and was sentenced for her role in this scheme.
This case was investigated by the Internal Revenue Service – Criminal Investigative and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Tampa Man Pleads Guilty to Money LaunderingRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Khanjar Ahmad Dandache (59, Tampa) today pleaded guilty to money laundering. He faces a maximum penalty of 20 years in federal prison.
According to the plea agreement, in June and July 2015, Dandache met repeatedly with a DEA confidential source (CS) and agreed to launder what he believed were heroin proceeds. Dandache had planned to receive funds from the CS, deposit them into numerous bank accounts in the United States, and then purchase vehicles with the funds. He had planned to ship the vehicles from Florida to Lebanon for re-sale and eventually transfer the funds to the heroin sources of supply. Dandache met with the CS and an undercover DEA agent on July 8, 2015, accepted $150,000 in purported heroin proceeds, and was subsequently arrested.
This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Christopher F. Murray.
Springfield Man Pleads Guilty to Illegally Operating Unsafe Interstate Van ServiceRead the Press Release
BOSTON –Wilking A. Mateo Santana, 36, of Springfield, pleaded guilty on Friday, Jan. 29, 2016, to 12 counts of illegally operating a transportation service in violation of federal motor carrier safety laws. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for May 4, 2016.
Santana operated a van service between Springfield and New York City under the names of Santana Xpress, Inc. and Santana Busline. The Federal Motor Carrier Safety Administration ordered Santana to stop operating the transportation service after inspections uncovered numerous safety violations; however, Santana continued to operate the van service.
The charge provides a sentence of no greater than one year in prison, one year of supervised release and a fine of $25,000 on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Todd A. Damiani, Special Agent in Charge of the New England Region of the Department of Transportation Office of Inspector General, made the announcement today. The case is being prosecution by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Branch Office.
Soddy Daisy Man Sentenced to Seven Years in Federal Prison for Child PornographyRead the Press Release
CHATTANOOGA, Tenn. - Jason Collins, 37, of Soddy Daisy, Tenn., was sentenced by the Honorable Harry S. Mattice, Jr., U.S. District Judge, to serve 85 months in prison, followed by a 15-year term of supervised release. Collins pleaded guilty in August 2015, to receipt of child pornography. Restitution was also ordered to some of his victims.
The indictment and subsequent conviction of Collins was the result of a year-long investigation conducted by the Federal Bureau of Investigation (FBI), Bradley County Sheriff’s Department, and Harriman Police Department. The investigation began when a Harriman Police detective was able to download images and videos from a Peer-to-Peer internet account belonging to Collins on three different dates over the course of three months. These images and videos were of minors engaging in sexual activity. The FBI, along with an Internet Crimes Against Children Task Force Officer from the Bradley County Sheriff’s Department, discovered that Collins had more than 80,000 images and 300 videos on his computer and other electronic storage media. The images and videos were compared with those from known victims through the National Center for Missing and Exploited Children’s (NCMEC) database. The NCMEC database found that the images belonged to 222 known victim series and the videos belonged to 90 known victim series.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Saint Louis Man Sentenced for Heroin DistributionRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that on Friday, January 29, 2016, Ronald Terry, of Saint Louis, Missouri, was sentenced by United States District Court Chief Judge Michael J. Reagan to 57 months in federal prison for three counts of heroin distribution. Following his prison sentence, Terry will be on federal supervised release for 3 years. Terry was also ordered to pay a fine of $300 and a $100 special assessment.
According to court documents, Terry was arrested on July 16, 2015, after law enforcement officials conducted a series of controlled drug purchases from him in the parking lot of the St. Clair Square shopping mall in Fairview Heights, Illinois.
The investigation was conducted by the Drug Enforcement Administration and the Illinois State Police Southern Illinois Drug Task Force. The case was prosecuted by Special Assistant United States Attorneys Shane Kelbley and Vanessa Lu.
Reading's Former City Council President Sentenced to 24 Months in PrisonRead the Press Release
PHILADELPHIA - Francisco Acosta, 40, of Reading, PA, was sentenced today to 24 months in prison for accepting a bribe in order to repeal an ethics law. At the time of the offense, Acosta was the President of Reading’s City Council. He pleaded guilty on August 5, 2015 to conspiracy to commit the bribery offenses of honest services wire fraud and Travel Act bribery. In addition to the prison term, U.S. District Court Judge Juan R. Sanchez ordered a fine of $1,800, three years of supervised release, 200 hours of community service, and a $100 special assessment.
In the spring of 2015, Acosta conspired with a person identified as “Public Official #1” to repeal these restrictions before the May 19, 2015 primary election through a bribery scheme, in violation of federal criminal law. Public Official #1 was a Reading public official who had the power to sign into law ordinances that had been passed by City Council. Public Official #1 was also a candidate in the Democratic Party’s primary election, scheduled for May 19, 2015. Public Official #1 decided to offer Acosta an $1,800 “loan” to the campaign committee of Acosta’s ally ( “Public Official #2”), which would be “forgiven” upon Acosta successfully orchestrating a repeal of certain restrictions codified in Sections 1012 and 1006(H) of Reading’s Code of Ethics. Acosta accepted the payment on April 10, 2015 and, three days later, introduced legislation to eliminate those restrictions in accordance with Public Official #1’s wishes (“the repeal bill”). As agreed to by Public Official #1 and Acosta, the repeal bill would have repealed Section 1012 in its entirety, thereby eliminating the restrictions on campaign contributions and nullifying Section 1006(H)’s prohibition on awarding “no-bid contracts” to certain donors. When Acosta took possession of the bribe check, he agreed that neither he nor Public Official #2 would deposit the bribe check until a later date.
Acosta attempted to persuade other members of City Council to pass the repeal bill before the primary election by falsely asserting that he was motivated solely by the best financial interests of Reading and by concealing that he had received the bribe check. Acosta then made materially false statements to FBI agents who were investigating the bribery scheme. The next day, Acosta took affirmative steps to withdraw from the conspiracy, all without alerting other members of the conspiracy of the FBI’s inquiry into this matter. The repeal bill was unanimously defeated by Reading’s City Council.
This case is being investigated by the Federal Bureau of Investigation, IRS Criminal Investigations, and the Pennsylvania State Police. It is being prosecuted by Assistant United States Attorneys Joe Khan and Nancy Beam Winter.
Rapid City Man Convicted for Illegal Possession of a FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that Patrick Harding, 58, of Rapid City, South Dakota, was found guilty of Possession of a Firearm by a Prohibited Person and Possession of a Stolen Firearm at the conclusion of a three-day federal jury trial in Rapid City. The verdict was returned on January 28, 2016.
The maximum penalty is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Harding, a previously convicted felon, knowingly possessing a stolen Glock, model 23C, .40 caliber pistol in Rapid City.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson prosecuted the case.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service.
Peabody Man Sentenced for Trafficking Heroin and FentanylRead the Press Release
BOSTON – Jorge Delgado, a/k/a Antonio Martinez, a/k/a Elisaul Martinez Santana, 28, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 33 months in prison and three years of supervised release. In October 2015, Delgado pleaded guilty to one count of conspiracy to distribute heroin and fentanyl and three counts of distribution of heroin.
Delgado was the leader of a drug ring responsible for distributing heroin and fentanyl in the Salem and Peabody area. Delgado received orders for heroin from customers via cellphone and often sent couriers, two of whom were charged as co-defendants, to distribute drugs for him. Delgado’s drug ring not only distributed heroin but also distributed fentanyl in place of heroin on numerous occasions.
Delgado’s co-defendants, Juanel Pena and Thomas Martinez-Ortiz, pleaded guilty and were sentenced to 21 months and time served of 53 days in prison, respectively.
This case was brought as part of the federal response to the growing opioid abuse epidemic in Massachusetts and other New England states. A recent surge in overdose deaths has been attributed in part to the addition of fentanyl to heroin, creating a toxic mixture substantially more potent, and more dangerous, than heroin alone.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Salem Police Chief Mary Butler; and Peabody Police Chief Thomas M. Griffin, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Young Paik of Ortiz’s Criminal Division.
Pakistani Man Makes Appearance in U.S. District Court in Denver Following Indictment and Arrest for Sale and Distribution of New, Misbranded and Counterfeit Prescription DrugsRead the Press Release
DENVER – Junaid Qadir, age 33, of Karachi, Pakistan, appeared in U.S. District Court in Denver late last week on multiple charges of illegal importation and sale of misbranded and unapproved drugs, some of which are further alleged to have been counterfeit or controlled substances, and all of which were manufactured overseas and shipped to the United States, U.S. Attorney John Walsh, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigation (HSI) Special Agent in Charge David Thompson, Food and Drug Administration’s Office of Criminal Investigations’ Kansas City Field Office Special Agent in Charge Catherine Hermsen and U.S. Postal Service Inspector in Charge of the Denver Division Craig Goldberg announced.
Qadir was indicted by a federal grand jury in Denver on August 22, 2012. A superseding indictment was obtained on June 25, 2015. He was arrested last Spring in Germany, a country with U.S. extradition laws after he traveled there from Pakistan. Qadir fought extradition, which resulted in his incarceration in Germany until a court order was obtained mandating is extradition. He first appeared in federal court in Denver on January 25, 2016, where he was read his rights and advised of the charges pending against him. He again appeared on January 28, 2016 for arraignment, where he entered a pro-forma not guilty plea, and was ordered held in custody without bond pending a resolution of his case by a U.S. Magistrate Judge.
According to court documents, Qadir and his brother, Shehzad, who is not in custody, are principals of a family owned and operated business in Karachi, Pakistan known as JNS Impex. This company held itself out to be, among other things, a leading and long-standing exporter of branded and generic pharmaceutical drugs and surgical products. They wrongly claimed it had access to and could supply most brand name pharmaceutical products; that it was affiliated with many multinational pharmaceutical manufacturers; and that it was licensed to distribute and export over-the-counter, prescription and narcotic pharmaceutical drugs. At no time were they associated or registered with the DEA to import controlled substances into the U.S. or to distribute controlled substances in the United States
It was part of the conspiracy that Junaid Qadir, acting in concert with his brother and others known and unknown, used advertisements on internet websites on behalf of their prescription drug distribution company JNS Impex and through business-to-business internet website platforms, to solicit orders for a variety of brand name and generic pharmaceutical prescription, mostly in commercial and wholesale quantities. The defendants would take in these orders over the internet primarily from individuals and entities operating internet pharmacy websites and other types of illicit pharmacy operations who, in turn, were undertaking to sell these drugs to their retail customers without valid prescriptions from licensed medical professionals. The defendants would take in orders for bulk drug shipments directly to these pharmacy operations and for drop shipments directly to the customers of these pharmacy operations. A substantial portion of the orders taken in by the defendant were for shipment to businesses and individuals located in the United States.
The defendants would undertake to fill these drug orders to the United States businesses and residents by procuring brand name and generic drugs that they knew to be unapproved for the United States market by the FDA from suppliers whose drug manufacturing facilities were not approved by the FDA and whose packaging and patient literature for their drugs was also not approved by the FDA. As part of the conspiracy, the defendants, using a series of email addresses, would forward the drug orders to a network of drug suppliers in Pakistan, India, the United Kingdom, and China. Some would obtain stockpiles of the drugs being ordered and, from these stockpiles or from the suppliers directly, would cause the orders to be filled by shipments through the international mail to or on behalf of their customers. With respect to some of the drug shipments ultimately intended for United States recipients, the defendants would alternatively employ a network of individuals located in the United States to receive the imported drugs and re-ship them to the ultimate customers within the United States once the drugs had been safely imported.
Qadir would often cause the drugs being shipped to the United States to evade detection by United States customs and foreign customs authorities by having those drugs concealed, in loose format, in plastic vitamin bottles and plastic water bottles. They would also cause the drug shipments to evade customs detection by causing the shipments to be accompanied by customs declarations that inaccurately or misleadingly described the contents of the shipments or without customs declarations altogether. The drugs would often be shipped in mail parcels without packaging, without labels, and without patient safety leaflets or other written instructions and information.
In order to secure payment for the drug shipments, the defendants and their co-conspirators would have their United States customers send money transfers, by way of Western Union and similar money transferring services, to themselves in their own names or in the names of various individuals located in Pakistan or, alternatively, would have the customers send bank wire transfers to various bank accounts in the names of associated businesses or their own names at financial institutions located and based in the United Arab Emirates and elsewhere. The defendants, on occasion, would also have their domestic operatives transfer money to one another in order to satisfy obligations that the defendants and their co-conspirators had to them.
The illegal drugs imported by the defendants include counterfeit or unapproved versions of: Viagra, Lorazepam, Alprazolam, Diazepam, Zolpidem, and Phentermine.
"This case should be a reminder to everyone that buying counterfeit prescription drugs on line from overseas pharmacies is playing with fire," said U.S. Attorney John Walsh. "An online buyer of such drugs has no idea what drug or substance they are actually receiving. The U.S. Attorney's Office, Homeland Security Investigations and FDA will work tirelessly -- as we did in this case -- to locate, charge and apprehend counterfeit drug traffickers in whatever corner of the world they may hide."
“There’s a misperception that counterfeiting is a victimless crime, but unfortunately it is not – counterfeit pharmaceuticals can and have led to serious injuries and death,” said David A. Thompson, special agent in charge of HSI Denver. “For that reason, and because counterfeiting often funds illegal activity, we take cases like Qadir’s very seriously and work tirelessly with our partners to investigate these crimes and bring those who commit them to justice.”
“The FDA-regulated supply chain for medicines helps protect consumers from prescription drugs that could be harmful or unsafe for them to use. When criminals provide unapproved and counterfeit prescription drugs online, they place the public’s health at risk,” said Catherine A Hermsen, Special Agent in Charge, FDA Office of Criminal Investigations’ Kansas City Field Office. “We will continue to be vigilant in our efforts to bring such criminals to justice.”
“This arrest is evidence that no matter where you are, be it in the United States or abroad, if you use the U.S. Mail to endanger the American public, we will find you,” said Craig Goldberg, Inspector-in-Charge of the Denver Division of the U.S. Postal Inspection Service. “We will continue to use our resources to protect the American public and ensure the integrity of the U.S. Mail. This case is another great example of federal law enforcement agencies partnering together to keep America safe.”
Junaid Qadir faces the following charges: Introduction and Delivery for Introduction of Unapproved New Drugs into Interstate Commerce, Introduction and Delivery for Introduction of Misbranded Drugs into Interstate Commerce, Sale of Counterfeit Drugs, Importation of Schedule IV Controlled Substances, Distribution of Scheduled IV Controlled Substances, Importation of Merchandise Contrary to Law, Conspiracy to Defraud the U.S. and Commit Offenses Against the U.S., Conspiracy to Import Schedule IV Controlled Substances and Conspiracy to Distribute and Possess with Intent to Distribute Schedule IV Controlled Substances. Penalties for these offenses range from not more than 3 years in federal prison per count, to not more than 20 years in federal prison per count. Each count also carries a penalty of up to a $250,000 fine.
HSI further stated that the trafficking of counterfeit goods is the second largest illicit trade activity, valued at roughly $250 billion. In fiscal year 2014, HSI, working through its National Intellectual Property Rights Center, seized more than 23,000 counterfeit items with an MSRP of $1.2 billion. Members of a public who would like to report information about suspected counterfeiters are encouraged to call ICE’s toll-free Tip Line at 1-866-DHS-2-ICE or by completing this online tip form.
This case was investigated by HSI, FDA OCI, and the U.S. Postal Inspection Service.
Qadir is being prosecuted by Assistant U.S. Attorney Kenneth M. Harmon.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Paden City, WV man convicted of unlawful possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – Kevin Ray Morgan, 40, of Paden City, West Virginia, was convicted of unlawful possession of firearms today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Morgan, who has a previous felony conviction in Tyler County, was discovered in unlawful possession of two firearms in October 2015 in Tyler County. Morgan was convicted of “Failure to Appear” in the Circuit Court of Tyler County.
Morgan pled guilty today to one count of “Felon in Possession of a Firearm.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The Tyler County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge James E. Seibert presided.
Orange County Man Operating Phone Room in Debt Relief Scam Pleads Guilty to Defrauding ConsumersRead the Press Release
LOS ANGELES – An Orange County man pleaded guilty today for his role in operating fraudulent debt relief firms that offered to settle credit card debts but instead took victims’ payments as undisclosed up-front fees, the Justice Department and U.S. Postal Inspection Service announced.
Jeremy Nelson, 30, pleaded guilty to one count of an indictment alleging conspiracy to commit mail fraud and wire fraud in connection with companies known as Nelson Gamble & Associates (Nelson Gamble) and Jackson Hunter Morris & Knight LLP (Jackson Hunter). According to the indictment, Nelson and his employees portrayed the debt relief companies as law firms and attorney-based companies that would negotiate favorable settlements with creditors. Clients made monthly payments expecting the money to go toward settlements. Nelson and his co-conspirators instead took at least 15 percent of the total debt as company fees, with the first six months of payments going almost entirely toward undisclosed up-front fees.
“Debt relief scams prey on vulnerable consumers trying to climb out of tough financial situations,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Justice Department will continue to investigate those who take advantage of consumers facing hard times, and prosecute unlawful schemes that bleed desperate consumers of their remaining resources.”
“This scheme victimized people already in financial distress,” said U.S. Attorney Eileen M. Decker of the Central District of California. “As today’s guilty plea shows, the Justice Department is committed to protecting consumers, particularly those who are vulnerable to fraud schemes designed to prey upon people already in perilous economic condition.”
“Protecting our customers from fraud is one of our agency’s biggest priorities,” said Acting Inspector in Charge Daniel Brubaker of the U.S. Postal Inspection Service. “The U.S. Postal Inspection Service will continue to vigorously pursue those who use our nation’s mail system to commit fraud or other illegal activity.”
Jeremy Nelson’s scheme ran from February 2010 to September 2012. Nelson admitted he changed the name of his company from Nelson Gamble to Jackson Hunter in 2011. Nelson and his co-conspirators told victims that Nelson Gamble had gone bankrupt and that Jackson Hunter was an unrelated company that had taken over some of the accounts. Nelson and his co-conspirators blamed past problems on Nelson Gamble and denied requests for refunds of money paid to Nelson Gamble. Some victims who previously demanded refunds accepted the explanation that Nelson Gamble was bankrupt and did not pursue complaints against Jackson Hunter.
Nelson faces a statutory maximum penalty of 20 years in prison. United States District Judge Dale S. Fischer has not yet scheduled a sentenced date.
One of Nelson’s co-defendants, Elias Ponce, pleaded guilty in October 2015. Two other defendants, Athena Maldonado and Christopher Harati, pleaded guilty in June 2015 in a related case. Trial against the remaining defendant charged in the scheme, John Vartanian, is set for September 13 in Los Angeles.
In September 2012, the Federal Trade Commission brought a civil case against Nelson and his companies, alleging that the defendants misrepresented debt relief services offered to consumers. (See https://www.ftc.gov/enforcement/cases-proceedings/122-3030-x120048/nelson-gamble-associates-llc-et-al). The case was settled by entry of a consent decree in August 2013.
Principal Deputy Assistant Attorney General Mizer commended the U.S. Postal Inspection Service team assigned to the Civil Division’s Consumer Protection Branch for their investigative efforts and thanked the U.S. Attorney’s Office of the Central District of California for their contributions to the case. The case is being prosecuted by trial attorneys Alan Phelps and James Harlow of the Consumer Protection Branch.
North Carolina Man Indicted for Attempting to Provide Material Support to ISILRead the Press Release
A North Carolina man has been charged with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and related offenses, announced Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte, North Carolina, Division.
The seven-count indictment was unsealed in federal court today, charging Justin Nojan Sullivan, 19, of Morganton, North Carolina, with attempting to provide material support to ISIL; receipt of a silencer in interstate commerce with intent to commit a felony; receipt and possession of an unregistered firearm; concealment and storage of a stolen firearm; use of interstate facilities in the attempted commission of a murder-for-hire; and two counts of making false statements to FBI agents.
“According to allegations in the indictment, Sullivan attempted to provide material support to ISIL by acquiring weapons and planning to conduct deadly attacks on our soil,” said Assistant Attorney General Carlin. “Countering threats to the safety of the American people is the highest priority of the National Security Division, and we will continue to hold accountable those who seek to provide material support to designated foreign terrorist organizations.”
“As alleged in the indictment, Sullivan pledged allegiance to ISIL, a designated foreign terrorist organization, and planned to carry out assassinations and mass shootings against innocent people,” said U.S. Attorney Rose. “Detecting and prosecuting violent extremists is a priority for my office and we will work closely with our federal, state and local law enforcement partners to ensure that potential terrorist attacks are foiled, would-be assassins are brought to justice and Americans are kept from harm’s way.”
“Justin Sullivan had elaborate plans to kill hundreds of innocent people to show his support for the terrorist organization, ISIL,” said Special Agent in Charge Strong. “During the course of our investigation evidence was uncovered linking Sullivan to John Bailey Clark’s murder six months earlier. Any loss of life is tragic; due to the work of the FBI and our law enforcement partners, other planned attacks were thwarted preventing more violence.”
According to allegations contained in the indictment and information in related court filings, starting no later than September 2014, Sullivan watched violent ISIL attacks on the Internet, such as beheadings, after converting to Islam. The indictment alleges that Sullivan openly expressed support for ISIL in his home and destroyed religious items that belonged to his parents. The indictment also alleges that beginning no later than June 6, 2015, Sullivan attempted to provide material support to ISIL by planning terrorists attacks and discussed those plans on social media with an undercover FBI employee (UCE), who Sullivan attempted to recruit to join in such attacks.
As alleged in the federal indictment, Sullivan told the UCE via social media that it was better to remain in the United States to support ISIL than to travel. Sullivan suggested that the UCE obtain weapons and told the UCE that he was planning to buy a semi-automatic AR-15 rifle at an upcoming gun show in Hickory, North Carolina. On or about June 20, 2015, Sullivan attempted to purchase hollow point ammunition to be used with the weapon(s) he intended to purchase.
The indictment alleges that Sullivan had researched on the Internet how to manufacture firearm silencers and asked the UCE to build functional silencers that they could use to carry out the planned attacks. The indictment further alleges that Sullivan told the UCE he planned to carry out his attack in the following few days at a concert, bar or club, where he believed as many as 1,000 people would be killed using the assault rifle and silencer.
According to allegations in the indictment, on or about June 19, 2015, the silencer, which was built according to Sullivan’s instructions, was delivered to him at his home in North Carolina, where Sullivan’s mother opened the package. The indictment alleges that Sullivan took the silencer from his mother and hid it in a crawl space under his house. When Sullivan’s parents questioned him about the silencer, Sullivan, believing that his parents would interfere with his plans to carry out an attack, offered to compensate the UCE to kill them.
On June 19, 2015, Sullivan was arrested at his parents’ home, where law enforcement also executed a search for the silencer and other items. The indictment alleges that law enforcement interviewed Sullivan on separate occasions and that Sullivan made false statements pertaining to the weapons in his possession and his involvement in the murder of his neighbor, John Bailey Clark, 74. In particular, according to the indictment, Sullivan was asked on June 19, 2015, if he had a rifle, to which he answered no. However, the FBI’s search found a .22 rifle, a black ski mask and a lock pick kit hidden in the crawl space with the silencer. The indictment alleges that on June 20, 2015, Sullivan admitted that he had stolen the rifle from his father’s gun cabinet and hid it in the crawl space. Forensic testing shows that the .22 rifle hidden by Sullivan was used to murder Clark.
The District Attorney’s Office for North Carolina’s 25th Prosecutorial District, which includes Burke, Caldwell and Catawba Counties, is handling North Carolina’s prosecution of Sullivan for Clark’s murder.
Sullivan is currently in federal custody and has waived arrangement on the federal charges. Trial is set for Feb. 22, 2016, before U.S. District Judge Martin Reidinger of the Western District of North Carolina.
The charge of attempting to provide material support to a designated foreign organization carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of receiving a silencer in interstate commerce with intent to commit a felony carries a maximum potential penalty of 10 years in prison and a fine of $250,000. The charge of receipt and possession of an unregistered firearm carries a maximum potential penalty of 10 years in prison and a fine of $10,000. The charge of possession, concealment and storage of a stolen firearm carries a maximum prison term of 10 years and a $250,000 fine. The charge of using interstate facilities in the attempted commission of a murder-for-hire carries a maximum prison term of 10 years in prison and a $250,000 fine. Each count of making a false statement to an agency of the United States carries a maximum prison term of up to eight years in prison and a $250,000 fine.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, Assistant Attorney General Carlin and U.S. Attorney Rose thanked District Attorney David Learner for his office’s continued assistance and coordination. Both also praised the investigative efforts of the FBI, the Burke County Sheriff’s Office and the North Carolina State Bureau of Investigation in this case. Assistant Attorney General Carlin and U.S. Attorney Rose also thanked the U.S. Postal Inspection Service’s Charlotte Division, the U.S. Secret Service, the North Carolina Highway Patrol and the Hickory Police Department for their assistance in this investigation.
The case is being prosecuted by Assistant U.S. Attorney Michael E. Savage of the Western District of North Carolina and Trial Attorney Gregory Gonzalez of the National Security Division’s Counterterrorism section.
Justin Nojan Sullivan Indictment
North Carolina Man Indicted for Attempting to Provide Material Support to ISILRead the Press Release
CHARLOTTE, N.C. – A North Carolina man has been charged with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and related offenses, announced Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte, North Carolina, Division.
The seven-count indictment was unsealed in federal court today, charging Justin Nojan Sullivan, 19, of Morganton, North Carolina, with attempting to provide material support to ISIL; receipt of a silencer in interstate commerce with intent to commit a felony; receipt and possession of an unregistered firearm; concealment and storage of a stolen firearm; use of interstate facilities in the attempted commission of a murder-for-hire; and two counts of making false statements to FBI agents.
“According to allegations in the indictment, Sullivan attempted to provide material support to ISIL by acquiring weapons and planning to conduct deadly attacks on our soil,” said Assistant Attorney General Carlin. “Countering threats to the safety of the American people is the highest priority of the National Security Division, and we will continue to hold accountable those who seek to provide material support to designated foreign terrorist organizations.”
“As alleged in the indictment, Sullivan pledged allegiance to ISIL, a designated foreign terrorist organization, and planned to carry out assassinations and mass shootings against innocent people,” said U.S. Attorney Rose. “Detecting and prosecuting violent extremists is a priority for my office and we will work closely with our federal, state and local law enforcement partners to ensure that potential terrorist attacks are foiled, would-be assassins are brought to justice and Americans are kept from harm’s way.”
“Justin Sullivan had elaborate plans to kill hundreds of innocent people to show his support for the terrorist organization, ISIL,” said Special Agent in Charge Strong. “During the course of our investigation evidence was uncovered linking Sullivan to John Bailey Clark’s murder six months earlier. Any loss of life is tragic; due to the work of the FBI and our law enforcement partners, other planned attacks were thwarted preventing more violence.”
According to allegations contained in the indictment and information in related court filings, starting no later than September 2014, Sullivan watched violent ISIL attacks on the Internet, such as beheadings, after converting to Islam. The indictment alleges that Sullivan openly expressed support for ISIL in his home and destroyed religious items that belonged to his parents. The indictment also alleges that beginning no later than June 6, 2015, Sullivan attempted to provide material support to ISIL by planning terrorists attacks and discussed those plans on social media with an undercover FBI employee (UCE), who Sullivan attempted to recruit to join in such attacks.
As alleged in the federal indictment, Sullivan told the UCE via social media that it was better to remain in the United States to support ISIL than to travel. Sullivan suggested that the UCE obtain weapons and told the UCE that he was planning to buy a semi-automatic AR-15 rifle at an upcoming gun show in Hickory, North Carolina. On or about June 20, 2015, Sullivan attempted to purchase hollow point ammunition to be used with the weapon(s) he intended to purchase.
The indictment alleges that Sullivan had researched on the Internet how to manufacture firearm silencers and asked the UCE to build functional silencers that they could use to carry out the planned attacks. The indictment further alleges that Sullivan told the UCE he planned to carry out his attack in the following few days at a concert, bar or club, where he believed as many as 1,000 people would be killed using the assault rifle and silencer.
According to allegations in the indictment, on or about June 19, 2015, the silencer, which was built according to Sullivan’s instructions, was delivered to him at his home in North Carolina, where Sullivan’s mother opened the package. The indictment alleges that Sullivan took the silencer from his mother and hid it in a crawl space under his house. When Sullivan’s parents questioned him about the silencer, Sullivan, believing that his parents would interfere with his plans to carry out an attack, offered to compensate the UCE to kill them.
On June 19, 2015, Sullivan was arrested at his parents’ home, where law enforcement also executed a search for the silencer and other items. The indictment alleges that law enforcement interviewed Sullivan on separate occasions and that Sullivan made false statements pertaining to the weapons in his possession and his involvement in the murder of his neighbor, John Bailey Clark, 74. In particular, according to the indictment, Sullivan was asked on June 19, 2015, if he had a rifle, to which he answered no. However, the FBI’s search found a .22 rifle, a black ski mask and a lock pick kit hidden in the crawl space with the silencer. The indictment alleges that on June 20, 2015, Sullivan admitted that he had stolen the rifle from his father’s gun cabinet and hid it in the crawl space. Forensic testing shows that the .22 rifle hidden by Sullivan was used to murder Clark.
The District Attorney’s Office for North Carolina’s 25th Prosecutorial District, which includes Burke, Caldwell and Catawba Counties, is handling North Carolina’s prosecution of Sullivan for Clark’s murder.
Sullivan is currently in federal custody and has waived arrangement on the federal charges. Trial is set for Feb. 22, 2016, before U.S. District Judge Martin Reidinger of the Western District of North Carolina.
The charge of attempting to provide material support to a designated foreign organization carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of receiving a silencer in interstate commerce with intent to commit a felony carries a maximum potential penalty of 10 years in prison and a fine of $250,000. The charge of receipt and possession of an unregistered firearm carries a maximum potential penalty of 10 years in prison and a fine of $10,000. The charge of possession, concealment and storage of a stolen firearm carries a maximum prison term of 10 years and a $250,000 fine. The charge of using interstate facilities in the attempted commission of a murder-for-hire carries a maximum prison term of 10 years in prison and a $250,000 fine. Each count of making a false statement to an agency of the United States carries a maximum prison term of up to eight years in prison and a $250,000 fine.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, Assistant Attorney General Carlin and U.S. Attorney Rose thanked District Attorney David Learner for his office’s continued assistance and coordination. Both also praised the investigative efforts of the FBI, the Burke County Sheriff’s Office and the North Carolina State Bureau of Investigation in this case. Assistant Attorney General Carlin and U.S. Attorney Rose also thanked the U.S. Postal Inspection Service’s Charlotte Division, the U.S. Secret Service, the North Carolina Highway Patrol and the Hickory Police Department for their assistance in this investigation.
The case is being prosecuted by Assistant U.S. Attorney Michael E. Savage of the Western District of North Carolina and Trial Attorney Gregory Gonzalez of the National Security Division’s Counterterrorism section.
Nicholas County man pleads guilty to possession of child pornographyRead the Press Release
CHARLESTON, W.Va. – A Nicholas County man faces up to 20 years in federal prison after pleading guilty today to possessing images and videos of child pornography, announced Acting United States Attorney Carol Casto. Derrick Young, 33, of Nallen, West Virginia, entered his guilty plea in federal court to the child pornography crime.
Young admitted that on May 21, 2014, he possessed images and videos of prepubescent minors engaged in sexual acts. The images and videos were contained on his personal cell phone located at his residence in Nallen.
Sentencing is scheduled for April 26, 2016. Young faces a fine of up to $250,000, a lifetime period of supervised release, mandatory registration as a sex offender, possible restitution to the victims of his offense, and the forfeiture of computers and cell phones that contained the child pornography.
The Department of Homeland Security and the West Virginia State Police conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. The defendant entered his plea before United States District Judge John T. Copenhaver, Jr.
This case is being brought as part of an ongoing initiative by the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Maryland man sentenced for orchestrating multi-state heroin trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Brian Alexander Hall, 27, of Baltimore, Maryland, was sentenced today to 100 months in prison for leading a multi-state heroin distribution network, United States Attorney William J. Ihlenfeld, II, announced.
Hall sold heroin in the Baltimore, Maryland area. A large group of individuals repeatedly travelled across state lines to procure quantities of heroin from Hall in Maryland, and the surrounding region. The individuals then returned to locations in West Virginia, Maryland, Virginia, and Pennsylvania to redistribute the heroin. Hall pled guilty in November 2015 to one count of “Conspiracy to Distribute Heroin.”
Hall, along with 40 other individuals, was charged in a 163-count federal indictment in June 2015. Three additional defendants involved in the heroin trafficking scheme were also sentenced in federal court today.
Jessica Kesecker, 33, of Berkeley Springs, West Virginia, pled guilty in August 2015 to one count of “Interstate Travel in Aid of Racketeering.” She was sentenced today to 35 months in prison.
Josh Reid, 33, of Martinsburg, pled guilty in October 2015 to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin.” He was sentenced today to 30 months in prison.
Bruce Morton Vaudrien, Jr., 46, of Kearneysville, West Virginia, pled guilty in October 2015 to one count of “Possession with Intent to Distribute Heroin,” one count of “Use of a Telephone to Facilitate the Distribution of Heroin,” and one count of “Interstate Travel in Aid of Racketeering.” He was sentenced today to 27 months in prison on each count. The sentences will run concurrently for a total of 27 months in prison.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Marion Man Pleads Guilty to Obtaining Anabolic Steroids from ChinaRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today, that on January 28, 2016, Matthew Short, 29, of Marion, Illinois, pled guilty in federal court to Importation of a Controlled Substance (Anabolic Steroids) from China. Sentencing has been set for May 11, 2016. Short waived Grand Jury Indictment and was charged in the single count Information. Short will face up to 10 years in prison, a fine of up to $500,000, and up to 3 years of supervised release.
During his plea hearing, Short admitted that he had ordered close to a kilogram of various Anabolic Steroids, all Schedule III Controlled Substances, from China to be sent to his home in Marion, Illinois. The package was identified as it entered the United States and was seized by United States Customs and Border Protection at the San Francisco Mail Center, where it was referred for investigation to Homeland Security Investigations.
The investigation was conducted by the U.S. Department of Homeland Security, Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Lumber Liquidators Inc. Sentenced for Illegal Importation of Hardwood and Related Environmental CrimesRead the Press Release
Virginia-based hardwood flooring retailer Lumber Liquidators Inc. was sentenced today in federal court in Norfolk, Virginia, and will pay more than $13 million in criminal fines, community service and forfeited assets related to its illegal importation of hardwood flooring, much of which was manufactured in China from timber that had been illegally logged in far eastern Russia, in the habitat of the last remaining Siberian tigers and Amur leopards in the world, announced the Department of Justice.
In total, the company will pay $13.15 million, including $7.8 million in criminal fines, $969,175 in criminal forfeiture and more than $1.23 million in community service payments. Lumber Liquidators has also agreed to a five-year term of organizational probation and mandatory implementation of a government-approved environmental compliance plan and independent audits. In addition, the company will pay more than $3.15 million in cash through a related civil forfeiture. The more than $13.15 million dollar penalty is the largest financial penalty for timber trafficking under the Lacey Act and one of the largest Lacey Act penalties ever.
Lumber Liquidators pleaded guilty and was charged in October 2015 in the Eastern District of Virginia with one felony count of importing goods through false statements and four misdemeanor violations of the Lacey Act, which makes it a crime to import timber that was taken in violation of the laws of a foreign country and to transport falsely-labeled timber across international borders into the United States. The charges describe Lumber Liquidators’ use of timber that was illegally logged in Far East Russia, as well as false statements on Lacey Act declarations which obfuscated the true species and source of the timber. This is the first felony conviction related to the import or use of illegal timber and the largest criminal fine ever under the Lacey Act.
“The case against Lumber Liquidators shows the true cost of turning a blind eye to the environmental laws that protect endangered wildlife,” said Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division. “This company left a trail of corrupt transactions and habitat destruction. Now they will pay a price for this callous and careless pursuit of profit.”
“This prosecution has been the result of hard work of federal agents and prosecutors who have been dedicated to protecting our natural habitats in the United States and around the world,” said U.S. Attorney Dana Boente of the Eastern District of Virginia.
“Today’s sentence – which includes the largest financial penalty ever under the Lacey Act – demonstrates the consequences companies will face if they knowingly accept illegally sourced materials and violate U.S. customs laws,” said Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Washington, D.C.
“By knowingly and illegally sourcing timber from vulnerable forests in Asia and other parts of the world, Lumber Liquidators made American consumers unwittingly complicit in the ongoing destruction of some of the world's last remaining intact forests,” said Director Dan Ashe of the U.S. Fish and Wildlife Service. “Along with hastening the extinction of the highly endangered Siberian tiger and many other native species, illegal logging driven by the company's greed threatens the many people who depend on sustainable use of these forests for food, clean water, shelter and legitimate jobs. These unprecedented sanctions show how seriously we take illegal trade, and I am grateful to the Service special agents and wildlife inspectors, Homeland Security agents, and Justice Department attorneys who halted Lumber Liquidators' criminal acts and held the company accountable under the law.”
According to a joint statement of facts filed with the court, from 2010 to 2013, Lumber Liquidators repeatedly failed to follow its own internal procedures and failed to take action on self-identified “red flags.” Those red flags included imports from high risk countries, imports of high risk species, imports from suppliers who were unable to provide documentation of legal harvest and imports from suppliers who provided false information about their products. Despite internal warnings of risk and non-compliance, very little changed at Lumber Liquidators.
For example, Lumber Liquidators employees were aware that timber from the Russian Far East was considered, within the flooring industry and within Lumber Liquidators, to carry a high risk of being illegally sourced due to corruption and illegal harvesting in that remote region. Despite the risk of illegality, Lumber Liquidators increased its purchases from Chinese manufacturers using timber sourced in the Russian Far East. In 2013, the defendant imported Russian timber logged under a concession permit that had been utilized so many times that the defendants’ imports alone exceeded the legal harvest allowance of Mongolian oak, Quercus mongolica, by more than 800 percent. The investigation revealed a prevalent practice in timber smuggling enterprises, where a company uses a seemingly legitimate government permit to log trees. Corruption and criminal activity along the supply chain results in the same permit being used multiple times and in areas outside of the designated logging area, sometimes vastly exceeding its legal limits.
On other occasions, Lumber Liquidators falsely reported the species or harvest country of timber when it was imported into the United States. In 2013, Lumber Liquidators imported Mongolian oak from Far East Russia which it declared to be Welsh oak and imported merpauh from Myanmar which it declared to be mahogany from Indonesia.
The illegal cutting of Mongolian oak in far eastern Russia is of particular concern because those forests are home to the last 450 wild Siberian tigers, Panthera tigris altaica. Illegal logging is considered the primary risk to the tigers’ survival, because they are dependent on intact forests for hunting and because Mongolian oak acorns are a chief food source for the tigers’ prey species. Mongolian oak forests are also home to the highly endangered Amur leopard, Panthera pardus orientalis, of which fewer than 50 remain in the wild. In June 2014, in response to illegal logging and the decline in tiger populations, Mongolian oak was added to the Convention on the International Trade in Endangered Species (CITES) Appendix III.
The $1,230,825 in community service payments is being provided to two Congressionally-chartered recipients, the National Fish and Wildlife Foundation (NWFW) and the USFWS Rhinoceros and Tiger Conservation Fund. One project that will be funded is the development of a wood identification device that if successful, could fill a critical gap in enforcement when it comes to identifying the species of timber at a border or in an enforcement scenario. The device would be able to identify timber species that are listed on the CITES Appendices, including the species that were at issue in this case. If U.S. border officials would have had access to such a device in 2011, then perhaps Lumber Liquidators could have been flagged for violation years ago, thus averting the flow of money back to China and Far East Russia in support of illegal logging. Other projects would involve protecting, researching and preserving the Siberian tiger, Amur leopard and their habitat.
The case was jointly investigated by agents of the USFWS and HSI as part of Operation Oakenshield. The case is being prosecuted by Patrick M. Duggan and Christopher L. Hale of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division, and Stephen Haynie and Kevin P. Hudson of the U.S. Attorney’s Office in Norfolk.
Louisville Man Sentenced to 50 Years in Prison Followed by A Lifetime Period of Supervised Release for the Sexual Abuse of A Minor Child and for Sexually Exploiting Ten Minor Children to Produce Visual ImagesRead the Press Release
Sixteen count indictment included forcing a minor child to engage in commercial sex acts with another person
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. announced the 50 year sentence followed by a lifetime period of supervised release today, by Chief District Judge Joseph H. McKinley Jr., of a Louisville man who sexually abused a minor child, forced the minor child to engage in commercial sex acts with another person, and sexually exploited that child and nine other minor children to produce visual images.
Christopher Kosicki, 27, pleaded guilty to 15 charges in a superseding indictment, on July 23, 2015, in U.S. District Court in Owensboro, Kentucky. Further charges included sex trafficking a child under age 14, and aiding and abetting another person to cross a state line with intent to engage in sexual acts with a person who had not attained the age of 12 years. Co-defendant Howard Key Chambers of Oldham County, Kentucky, remains in the custody of the U.S. Marshals Service. Chambers is charged with forcing a minor child to engage in commercial sex acts and engaging in sexually explicit conduct with a minor child to create visual images that can be transported in commerce by any means. Chambers is scheduled for trial in Louisville on April 12th, 2016.
According to the plea agreement, and statements made in court, the criminal activity took place at Kosicki’s Louisville home between September 2012 and September 26, 2014 - when the defendant was arrested through a federal criminal complaint. Kosicki admitted in court to making a 10, then 11-year-old child available to others for sexually explicit activity. Later examination of digital devices and storage media owned by Kosicki revealed his production of sexually explicit images of 10 different children over the course of several years. All of the images were created in Jefferson County, Kentucky.
Law enforcement officials first became aware of Kosicki’s criminal conduct after arresting Raymond Shadburn in Seymour, Indiana, on September 24, 2014, on child exploitation charges. During a post-arrest interview, Shadburn allegedly provided information that led law enforcement to Kosicki’s residence in Jefferson County, Louisville, Kentucky.
Shadburn and Kosicki originally met online when Shadburn responded to a Craig’s List ad placed by Kosicki. In connection with the ad, Shadburn drove from Indiana to Kosicki’s residence in Louisville at least four times beginning in late August, early September 2014. While there, Kosicki made an 11-year-old child available to Shadburn for sexual activity. During one of the visits in September, Shadburn took sexually explicit photographs of the child (Jane Doe 1), in the presence of Kosicki. At least one photo depicted Kosicki and the child. Shadburn took the images with him back to Indiana and later shared the images with other individuals on the Internet (including an undercover police officer in Washington, D.C.). During at least one visit, both men engaged in sexual activity with the child.
In 2013, Kosicki allegedly met co-defendant Howard Key Chambers via Craig’s List. The two communicated online and, eventually, Chambers allegedly travelled from Oldham County, Kentucky, to Louisville, Kentucky, to meet Kosicki at Kosicki’s residence.
Chambers is charged with travelling to Kosicki’s home to engage in sexual activity with the 10-year-old turned 11-year-old child, between six and eight times, from 2013 until August 2014. The two helped each other entice, harbor, provide, obtain, and maintain a person that had not attained the age of 14 years who was caused to engage in commercial sex acts, that is, any sex act, on account of which anything of value is given to and received by any person. On several occasions, Chambers allegedly gave Kosicki money after engaging in sexual activity with the child (age 10 and then 11). On at least one occasion, he (Chambers) is charged with giving money directly to the child after engaging in sexual activity with her. Additionally, on one occasion, Kosicki photographed Chambers allegedly engaging in sexual activity with the child.
This case is being prosecuted by Assistant United States Attorneys Jo E. Lawless and Spencer McKiness and is being investigated by the Indianapolis Police Department, District of Columbia Metro Police, Louisville Metro Police, and the Federal Bureau of Investigation (FBI).
Jury Finds St. George Doctor Guilty of Narcotics Trafficking Offenses After Eight-Day Federal TrialRead the Press Release
SALT LAKE CITY – A jury concluded an eight-day trial in U.S. District Court Thursday evening finding Dr. Simmon Lee Wilcox, age 60, of Las Vegas, guilty of one count of conspiracy to distribute oxycodone and one count of distribution of oxycodone. The jury acquitted Wilcox on three counts of distribution of hydrocodone. The jury deliberated about five hours before returning the verdict.
Evidence at the trial showed Dr. Wilcox wrote about 618 prescriptions resulting in the diversion of approximately 74,000 30-milligram oxycodone pills for non-medical purposes between July of 2010 and March of 2013. Dr. Wilcox wrote hundreds of prescriptions to people using false identifications that were filled at various pharmacies in Utah and Nevada. Those who filled the prescriptions and took possession of the oxycodone either sold it or used it personally.
Five co-conspirators in the case previously pleaded guilty to conspiracy to distribute oxycodone. Benjamin David Grisel, age 49, and Brenda Grisel, age 48, both of Santa Clara; Jeron Scott Hales, age 40, of Hurricane; Jeremy Daniel Perkins, age 36, of Washington; Randall David Ayrton, age 35, of St. George; and Wilcox were initially charged in a 12-count indictment returned by a federal grand jury in October 2013 following an investigation by DEA drug diversion investigators. The first 11 counts of the indictment involved drug trafficking offenses. The final count charged identification document fraud.
As a part of plea agreements reached with federal prosecutors, co-conspirators in the case admitted they conspired with Dr. Wilcox to use his medical license to write prescriptions for oxycodone pills. To facilitate the conspiracy, one of the co-conspirators created false identification documents for the group to use in filling the oxycodone prescriptions at various pharmacies. Co-conspirators in the case are scheduled to be sentenced in February.
“I have talked before about the heroin and opioid tsunami threatening Utah. In 2012, 31.71 pounds of heroin were seized in Utah. In 2014, that number grew to 244.04 pounds,” U.S. Attorney John W. Huber said today. “The 74,000 oxycodone pills that found their way into our communities through the 618 prescriptions Dr. Wilcox wrote are no different than a drug dealer selling heroin on the corner. In fact, these crimes are worse because they abuse the trust we place in physicians. To stop the wave we are seeing, we need to attack every angle of the heroin and opioid problem in our state,” Huber said.
“DEA takes its responsibility to prevent the distribution of dangerous and addictive drugs to those who do not have a medical reason to have them very seriously,” Acting DEA Assistant Special Agent in Charge John Eddington said today. “We are pleased the jury recognized the seriousness of the conduct involved in this case.”
U.S. District Judge Ted Stewart, who presided over the trial, set sentencing for Dr. Wilcox for April 18, 2016, at 10 a.m. Wilcox faces up to 20 years in prison and a fine of $1 million for each of the two drug distribution counts of conviction.
Investment Fund Manager Pleads Guilty to Obstructing Justice in SEC Investigation of His Business ActivitiesRead the Press Release
WASHINGTON – Vineet Kalucha, 51, an investment fund manager from Washington, D.C., pled guilty today to obstructing justice in an investigation into his business activities that was being conducted by the U.S. Securities and Exchange Commission, announced U.S. Attorney Channing D. Phillips and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.
Kalucha pled guilty in the U.S. District Court for the District of Columbia. The Honorable Rosemary M. Collyer scheduled sentencing for June 6, 2016. The charge carries a statutory maximum of five years in prison and potential financial penalties. Under the sentencing guidelines, the parties have agreed that he faces a likely range of 10 to 16 months in prison and a potential fine of $3,000 to $30,000.
A business partner, George Palathinkal, 54, of Singapore, pled guilty in March 2015 to a federal charge of perjury. He is awaiting sentencing before Judge Collyer.
According to the government’s evidence, Kalucha formed Aphelion Fund Management LLC (“Aphelion Management”) in 2012 and was its majority owner, partner and chief investment officer. Palathinkal was the general partner and chief financial officer. The company served as the investment adviser and general partner for two unregistered hedge funds (known as “the Aphelion Funds”).
In 2013, according to the government’s evidence, Kalucha, Palathinkal, and Aphelion Management began soliciting new investors for the Aphelion Funds. Kalucha subsequently provided potential investors with marketing materials for Aphelion Management, using inaccurate performance statistics. Among other things, he altered a report prepared by an accounting firm hired by Aphelion Management to review prior investment performance and caused this report to be sent to prospective investors.
The accounting firm became aware of the misrepresentations and demanded that Kalucha cease distributing the altered report and that he provide notice to those who received it. He incorrectly reported back to the firm that only one copy of the altered report had been distributed.
The U.S. Securities and Exchange Commission began an investigation of Aphelion Management in January 2014, including an investigation into the propriety and reasonableness of payments from Aphelion Management to Kalucha. Kalucha provided investigative testimony before the SEC on Feb. 25, 2014. Among other things, he testified that he had entered into a written promissory note for “about $350,000” with Aphelion Management. Kalucha later told Palathinkal that he had testified before the SEC that there were written promissory notes covering loans that the two of them had purportedly taken from Aphelion Management.
Knowing that these notes did not exist, Kalucha told Palathinkal that he would have Aphelion Management’s outside counsel prepare such written loan documents. Kalucha and Palathinkal later signed two such documents, both said to be promissory notes. One purportedly showed a loan of up to $350,000 for Kalucha and the other was for a loan of up to $200,000 for Palathinkal. Although these documents were actually signed in early March 2014, they were dated January 1, 2013. Kalucha and Palathinkal provided these documents to the SEC.
In announcing the plea, U.S. Attorney Phillips and Assistant Director in Charge Abbate commended the work of those who investigated the case for the FBI’s Washington Field Office. They also expressed appreciation for the assistance provided by the SEC. They acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Document Management Analyst John Lowell and former Assistant U.S. Attorney Bryan Seeley. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Peter C. Lallas, who investigated and prosecuted the case.
Honduran Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE – United States Attorney Emily Gray Rice announced today that Maynor Wenden Aleman-Troches, of Honduras, was sentenced to ten months in federal prison, after pleading guilty to illegally reentering the United States after having been previously deported.
In August 2015, agents from the Department of Homeland Security Immigration and Customs Enforcement - Enforcement and Removal Operations observed the defendant as he was walking down a Manchester street. The agents recognized the defendant from a prior deportation proceeding and initiated an investigation, which resulted in the defendant’s arrest in Manchester on September 13, 2015. A comparison of the defendant’s fingerprints taken when he was arrested confirmed that he had been previously deported in 2006, 2007 and 2009.
On October 27, 2015Aleman-Troches pleaded guilty to illegally re-entering the United States after deportation.
The case was investigated by the Department of Homeland Security and prosecuted by Assistant U.S. Attorney Alfred Rubega.
Hermosa Beach Couple Arrested on Federal Charges Related to Tax Scam and Passing False ‘Checks’ and ‘Bonds’ to Pay Off DebtsRead the Press Release
LOS ANGELES – Two Hermosa Beach residents were taken into custody yesterday after being indicted by a federal grand jury on a host of charges related to a scheme to defraud the Internal Revenue Service, which included passing bogus checks and bonds as a way to pay off debt for themselves and others.
Sean David Morton, 58, and his wife, Melissa Ann Morton, 50, are expected to be arraigned this afternoon in federal court in Los Angeles on a 56-count superseding indictment that was returned by a grand jury on January 27. The couple was arrested by special agents with IRS - Criminal Investigation in San Pedro Sunday morning after disembarking from a “Conspira-Sea Cruise.”
According to the superseding indictment, Sean David Morton filed a series of false income tax returns for the years 2005 and 2010 that sought millions of dollars in refunds. Melissa Morton allegedly filed several false tax returns for the year 2007. The couple “caused multiple copies and multiple versions of their income tax returns to be submitted to various IRS service centers throughout the United States in 2009 and 2010,” according to the indictment, which alleges they attached false Forms 1099-OID to support their claims for refunds.
The indictment specifically alleges that Sean David Morton filed a false 2006 income tax return 2010 that requested a refund of $2,809,921, and that in 2012 he filed a document that sought a tax refund of $1,560,634 for 2006.
In relation to the scheme, the indictment alleges that Sean David Morton on multiple occasions submitted to the IRS documents he called “Coupon for Setoff, Settlement, and Closure” in the amounts of $5,286,867 and $8,429,763. “These fictitious financial instruments were a purported bond in exchange for the refunds they sought from the IRS,” according to the indictment.
“Those who try to defraud the tax system often try to use complicated ‘legal’ filings to hide their true goal – stealing money paid by other taxpayers,” said United States Attorney Eileen M. Decker. “IRS agents and federal prosecutors have the tools to investigate and prosecute these sophisticated schemes, which undermine the entire tax system and ultimately victimize law-abiding taxpayers.”
Melissa Morton allegedly presented to the IRS in 2010 a “Coupon for Setoff, Settlement, and Closure” in the amount of $44,450 as a purported bond in exchange for a $14,450 refund that she sought. And, in 2013, both defendants allegedly presented to the IRS two “Non-Negotiable Discharging Bond and Indemnity” in the amounts of $10 million for Sean David Morton and $600,000 for Melissa Morton.
In relation to the tax returns and other documents submitted to the IRS, the Mortons are each charged with one count of conspiracy to defraud the United States and two counts of making false claims to the United States.
The indictment also charges Sean David Morton and Melissa Morton each with 24 counts of presenting false and fictitious instruments and documents – specifically items called “Non-Negotiable Discharging Bond and Indemnity” – which purported to be actual securities and financial instruments issued under the authority of the United States. These documents were submitted to the IRS, the California Franchise Tax Board, banks, mortgage companies, student loan companies, and county tax collectors, supposedly as a means to pay off debt. Melissa Ann Morton was charged with 25 counts of presenting or passing these documents. The Mortons allegedly also assisted others in presenting these false and fictitious instruments in amounts as high as $1.5 million.
“Driven by insatiable greed and a blatant disregard for the tax code, Mr. and Mrs. Morton have a long history of allegedly filing bogus tax returns and fictitious instruments claiming fraudulent refunds,” stated Erick Martinez, Special Agent in Charge of the IRS - Criminal Investigation. “People who create elaborate schemes that have no purpose other than to defraud the IRS run the very high risk of prosecution.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If they are convicted of the charges in the superseding indictment, Sean David Morton would face a statutory maximum sentence of 650 years in federal prison, and Melissa Morton would face a statutory maximum sentence of 625 years.
The investigation into the Mortons was conducted by IRS - Criminal Investigation.
Hancock County, WV man convicted of possession of child pornographyRead the Press Release
WHEELING, WEST VIRGINIA – Ryan Bobby Schnettler, 25, of Weirton, West Virginia, was convicted of possession of child pornography today in federal court, United States Attorney William J. Ihlenfeld, II, announced.Schnettler was discovered in possession of child pornography in October 2015 in Hancock County, West Virginia. He pled guilty today to an Information charging him with “Possession of Child Pornography.”
Schnettler faces up to 20 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Grand Rapids Man, Carl Luther Thompson II, Sentenced to More Than Eight Years in Prison for Felony Gun and Drug PossessionRead the Press Release
GRAND RAPIDS, MICHIGAN — Carl Luther Thompson II was sentenced to eight years and two months’ federal incarceration after his conviction on two counts of being a felon in possession of a firearm and one count of possessing heroin, cocaine base, and marijuana with intent to distribute. U.S. District Judge Janet T. Neff pronounced the sentence. A jury found Thompson guilty of all three counts on April 10, 2015.
Thompson was convicted after possessing one of two firearms left on a picnic table in Dickinson Buffer Park on Grand Rapids’s southeast side on June 11, 2013. The next day, Thompson got into an altercation with a woman who requested that members of the Madison Avenue street gang move away from her house on Brown Street near Madison Avenue in Grand Rapids. Thompson threatened the woman by brandishing a 9mm semiautomatic pistol and stating, "We own Brown Street." The State was unable to prosecute the felonious assault when the victim recanted at a preliminary hearing out of fear of retaliation. More than a year later, a federal grand jury returned an indictment of Thompson for being a felon in possession of firearms. During his arrest on the federal gun charges, he was found to be in possession of heroin, crack cocaine, and marijuana, which led the grand jury to subsequently bring the drug charges as well.
U.S. Attorney Patrick Miles praised the cooperation of federal, state, and local investigators in prosecuting Thompson. "This conviction and sentence result from cooperation among the Grand Rapids Police Department, the Michigan State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Attorney’s Office in pursuing justice against individuals who destabilize communities through drug dealing and gun violence."
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Grand Rapids Police with assistance from the Michigan State Police. It was prosecuted by Assistant U.S. Attorney Sally J. Berens and former Assistant U.S. Attorney Russell A. Kavalhuna.
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Gaithersburg Man Sentenced to Prison for Selling Heroin to a Customer Who Died from OverdoseRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Nathaniel Wright, Jr., age 58, of Gaithersburg, Maryland today to four years in prison followed by three years of supervised release for conspiring to distribute and possession with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, from at least June 2013 until his arrest in April 2015, Wright distributed heroin to heroin addicts. Wright had many customers who would purchase between one-half to two grams from him a week.
On June 14, 2013, Wright sold an individual a gram of heroin for $100. Later that evening and after ingesting the heroin, the individual died as a result of alcohol and narcotic intoxication.
Wright also admitted that on 16 occasions he sold a total of 22 grams of heroin to two confidential sources.
During his participation in the drug conspiracy, Wright was responsible for distributing between 400 and 700 grams of heroin.
Ronald Bryant, a/k/a “Dean,” age 46, of Montgomery Village, Maryland; Carlos Brandon Peoples, a/k/a “Los,” age 29, of Washington, D.C., and Carlisle Sampson Pipkin II, age 32, of Hanover, Maryland previously pleaded guilty to their participation in the conspiracy. Bryant was sentenced to 46 months in prison. Peoples and Pipkin are scheduled to be sentenced on February 8, 2016 at 10:30 a.m. and March 21, 2016 at 10:00 a.m., respectively.
United States Attorney Rod J. Rosenstein commended the ATF and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Mara Z. Greenberg, who prosecuted the case.
Four sentenced for drug traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Four individuals were sentenced in federal court in Martinsburg today for various drug trafficking offenses, United States Attorney William J. Ihlenfeld, II, announced.
Joseph Perry, 31, of Gerrardstown, West Virginia, attempted to purchase heroin in March 2015 in Berkeley County. He pled guilty in October 2015 to an Information charging him with one count of “Aiding and Abetting Attempted Possession with Intent to Distribute Heroin.” He was sentenced today to 32 months in prison.
Earl Ferguson, 46, of Inwood, West Virginia, sold oxycodone in July 2015 in Berkeley County, West Virginia. He pled guilty in November 2015 to one count of “Distribution of Oxycodone.” He was sentenced today to 21 months in prison.
Elliot Iwon Reed, 32, of Baltimore, Maryland, sold heroin and cocaine in Berkeley County. He pled guilty in October 2015 to one count of “Conspiracy to Distribute Cocaine Base and Heroin.” He was sentenced today to 21 months in prison.
Jesus Demas Valencia, 48, of Martinsburg, sold cocaine in Berkeley County. He pled guilty in October 2015 to one count of “Distribution of Cocaine.” He was sentenced today to 12 months in prison.
Assistant United States Attorneys Paul Camilletti and Anna Krasinski prosecuted Ferguson, Perry, and Valencia on behalf of the government. Assistant U.S. Attorney Jarod Douglas also prosecuted Valencia on behalf of the government. Assistant U.S. Attorney Paul Camilletti and Special Assistant U.S. Attorney Stephanie Taylor, also of the Berkeley County Prosecuting Attorney’s Office, prosecuted Reed on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated each of the defendants. The Federal Bureau of Investigation also investigated Ferguson and Perry.
Chief U.S. District Judge Gina M. Groh presided.
Former Police Officer and School Administrator Sentenced to 48 Months in Prison for Violating Sex Abuse LawsRead the Press Release
LOUISVILLE, Ky. – A Grayson County, Kentucky, former police officer and school administrator was sentenced to 48 months in prison followed by ten years of supervised release today, by Chief District Judge Joseph H. McKinley, for violating federal and state sex abuse laws, announced United States Attorney John E. Kuhn, Jr.
Stephen E. Miller, age 45, pleaded guilty to four counts in a superseding information, on July 30, 2015. Miller pleaded guilty to engaging in abusive sexual contact with three female students and third degree sodomy with a fourth female student. The incidents occurred at Bluegrass Challenge Academy between February and August 2013. Miller is in the custody of the United States Marshall Service.
Miller previously worked as a police officer in Leitchfield, Kentucky. He resigned the position following complaints of inappropriate conduct toward two women. Miller then began working at Bluegrass Challenge Academy, a residential, educational program run by the Kentucky National Guard, located on Fort Knox Military Base. Miller had supervisory authority over the Academy students.
John Smith, who was the director of Bluegrass Challenge Academy during the time, has been indicted for failure to report child abuse.If convicted, he faces a maximum sentence of one year in prison, a fine of up to $100,000, and up to one year of supervised release.
Assistant United States Attorneys Amanda E. Gregory and Stephanie M. Zimdahl are prosecuting the case. The Federal Bureau of Investigation (FBI) with assistance from the Army Criminal Investigation Division conducted the investigation.
Former Maryland Circuit Court Judge Pleads Guilty to Civil Rights ViolationRead the Press Release
The Justice Department announced today that Robert C. Nalley, a former judge in Charles County, Maryland, pleaded guilty to one count of the deprivation of rights under color of law for ordering a deputy sheriff to activate a stun-cuff worn by a pro se criminal defendant during a pre-trial court proceeding.
From 1988 to September 2014, Nalley was a judge of the Circuit Court for Charles County. According to his guilty plea, on July 23, 2014, Judge Nalley presided over the jury selection for the victim, who was representing himself in a criminal proceeding in Charles County court. Before the proceedings began, a deputy sheriff informed Judge Nalley that the victim was wearing a stun-cuff. Nalley was aware that when activated, the stun-cuff would administer an electrical shock to the victim, thereby incapacitating him and causing him pain.
Several minutes after the proceedings had begun, Judge Nalley asked the victim whether he had any questions for the potential jurors. The victim repeatedly ignored Nalley and instead read from a prepared statement, objecting to Judge Nalley’s authority to preside over the proceedings, while standing calmly behind a table in the courtroom. The victim did not make any aggressive movements, did not attempt to flee the courtroom and did not pose a threat to himself or to any other person at any point during the proceedings. Judge Nalley twice ordered the victim to stop reading his statement, but the victim continued to speak.
Judge Nalley then ordered the deputy sheriff to activate the stun-cuff, which administered an electric shock to the victim for approximately five seconds. The electric shock caused the victim to fall to the ground and scream in pain. Judge Nalley recessed the proceedings.
“Under our constitution, judges serve as the guardians and arbitrators of justice,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “When government officials – including judges – violate the rights we entrust them to defend and break the laws we expect them to uphold, they undermine the legitimacy of our justice system.”
“Disruptive defendants may be excluded from the courtroom and prosecuted for obstruction of justice and contempt of court, but force may not be used in the absence of danger,” said U.S. Attorney Rod J. Rosenstein of the District of Maryland.
Sentencing for Judge Nalley is scheduled for March 31, 2016.
The case was investigated by the FBI’s Baltimore Division. The case is being prosecuted by Assistant U.S. Attorneys Kristi C. O’Malley and Daniel N. Gardner of the District of Maryland, and Trial Attorney Mary J. Hahn of the Civil Rights Division's Criminal Section.
Nalley Plea Agreement
Former Juneau Resident Pleads Guilty to Unauthorized Burning of Timber and Failing to Maintain Control of Non-Prescribed FireRead the Press Release
Juneau, Alaska-U.S. Attorney Karen L. Loeffler announced today that a former Juneau resident pled guilty to charges related to a Jan. 15, 2015, unauthorized burning of timber and failure to maintain control of a fire located within the Tongass National Forest.
John H. Shryne, 31, of Olympia, Washington, was arraigned and pled guilty before U.S. Magistrate Judge Leslie C. Longenbaugh on the charges of unauthorized burning of timber and failing to maintain control of a non-prescribed fire, contained in a two-count information. Judge Longenbaugh subsequently sentenced Shryne to pay a $2,400 fine and placed him on one year of probation.
Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, indicated that United States Forest Service (USFS) Law Enforcement had been investigating a number of tree pitch fires occurring on local hiking trails within the Juneau area. On Jan. 15, 2015, Shryne was observed by a USFS Law Enforcement Officer conducting surveillance, entering and subsequently leaving the Tolch Rock Trail within the Tongass National Forest. After observing Shryne and another individual leaving the area, the USFS officer entered the trail and observed a tree on fire approximately 100 yards from the trailhead and a few feet from off the trail. The fire was extinguished and evidence at the scene was collected. On Feb. 13, 2015, Shryne was interviewed by USFS Law Enforcement and admitted he had set the fire at the Tolch Rock Trail on USFS land and admitted to setting several other fires on other trails located within the City and Borough of Juneau.
During sentencing, Judge Longenbaugh noted the seriousness of the offense, as well as the need to address the defendant’s serious substance abuse and mental health issues. Judge Longenbaugh also ordered the defendant to obtain a substance abuse and mental health evaluation and follow their recommendations, as well as, monthly drug testing.
The USFS Law Enforcement conducted the investigation leading to the conviction in this case.
Former Georgia Accountant Pleads Guilty to Filing a False Tax ReturnRead the Press Release
A former certified public accountant in Georgia pleaded guilty today to one count of filing a false tax return, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney John A. Horn of the Northern District of Georgia announced.
According to court documents and information presented in court, Thomas D. Ziff was a licensed certified public accountant in Georgia, and from approximately January 2006 through December 2010, Ziff operated a tax return preparation and accounting business. During that time, Ziff was the trustee of a trust that was associated with the last will and testament of another individual. As the trustee, Ziff opened a bank account in the name of the trust at Wachovia Bank over which he had sole signatory authority; he then proceeded to embezzle and cause to be transferred approximately $300,000 from the trust bank account to other bank accounts that he controlled and then used the funds for his personal use. Ziff failed to report the embezzled funds as income on his federal income tax returns for the years 2008, 2009 and 2010.
Ziff faces a statutory maximum sentence of three years in prison, one year of supervised release and a $250,000 fine. As part of his plea agreement, Ziff also agreed to pay restitution to the Internal Revenue Service (IRS). U.S. District Judge Steve C. Jones of the Northern District of Georgia set sentencing for April 11, 2016.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Horn commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Christopher J. Maietta of the Tax Division and Assistant U.S. Attorney Steven D. Grimberg of the Northern District of Georgia, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Freedom Industries official sentenced for role in chemical spillRead the Press Release
CHARLESTON, W.Va. – A former official of Freedom Industries was sentenced today to three years of probation and a $10,000 fine for a Clean Water Act violation connected to the 2014 Elk River chemical spill, announced Acting United States Attorney Carol Casto. Robert J. Reynolds, of Apex, North Carolina, previously pleaded guilty in federal court to negligently discharging a pollutant in March 2015. Reynolds is one of six former officials of Freedom Industries, in addition to Freedom Industries itself as a corporation, to be prosecuted for federal crimes associated with the chemical spill.
On January 9, 2014, a major chemical leak was discovered in Charleston at the above-ground storage tank area owned and operated by Freedom Industries (Freedom) on the Elk River. Freedom used these storage tanks to keep and process chemicals, and the leak consisted primarily of 4-methylcyclohexane methanol (MCHM), a chemical used in the coal mining industry as a cleansing agent. A significant amount of MCHM leaked into the Elk River, flowed into a water treatment plant, and contaminated the water supply of Charleston and the surrounding areas for several days. Freedom did not have a permit required by law that would have allowed the company to discharge MCHM into the Elk River.
Beginning in 2002, Reynolds worked with Freedom as an environmental consultant and was responsible for developing and maintaining pollution prevention plans. Reynolds admitted that he should have developed and maintained a storm water pollution prevention plan and a groundwater protection plan for the MCHM storage tanks that could have prevented the chemical spill. Freedom did have a permit issued by West Virginia’s Department of Environmental Protection that allowed for the discharge of storm water and groundwater subject to monitoring and reporting requirements. However, this permit did not allow for the discharge of MCHM, and required the development and maintenance of a storm water plan and a groundwater plan. Generally, storm water and groundwater plans identify potential sources of pollution and outline steps to prevent, contain, and reduce pollutants.
Reynolds admitted that he should have known of this requirement. He also admitted that while there was no storm water or groundwater plan in place at Freedom’s facility on the Elk River, there were such plans implemented at another facility operated by Freedom in Nitro. Reynolds even provided training to Freedom’s employees at the Nitro facility on its plans, despite the absence of similar plans at Freedom’s facility by the Elk River.
Reynolds knew of and should have appreciated the hazards associated with MCHM and the need to take reasonable steps to ensure that it did not spill into the Elk River. Reynolds admitted that he carried out his duties without due care for regulatory and environmental compliance, and that his failure to implement a storm water plan was a proximate cause of the 2014 chemical spill of MCHM.
Reynolds is the first defendant sentenced as part of the investigation into the chemical spill. Freedom itself, which has been in bankruptcy since shortly after the chemical spill, pleaded guilty to violating the Clean Water Act, the unlawful discharge of refuse matter in violation of the Refuse Act, and violating an environmental permit. Freedom is scheduled to be sentenced on February 4, 2016.
Charles E. Herzing, of McMurray, Pennsylvania, and William E. Tis, of Verona, Pennsylvania, former owners of Freedom, each pleaded guilty in March 2015 to the unlawful discharge of refuse matter in violation of the Refuse Act. Herzing is scheduled to be sentenced on February 2, 2016. Tis is scheduled to be sentenced on February 8, 2016.
Michael E. Burdette, of Dunbar, a plant manager for Freedom, pleaded guilty in March 2015 to violating the Clean Water Act by negligently discharging a pollutant, and is scheduled to be sentenced on February 4, 2016.
Dennis P. Farrell, of Charleston, a former Freedom president and owner, pleaded guilty in August 2015 to violating the federal Refuse Act and violating a permit by failing to have a pollution prevention plan. Farrell is scheduled to be sentenced on February 11, 2016.
Gary Southern, of Marco Island, Florida, the president of Freedom at the time of the spill, pleaded guilty in August 2015 to violating the Clean Water Act, negligently discharging refuse matter in violation of the Refuse Act, and violating a permit by failing to have a pollution prevention plan. Southern is scheduled to be sentenced on February 17, 2016.
The investigation of the chemical spill was conducted by the Federal Bureau of Investigation and the Environmental Protection Agency’s Criminal Investigation Division. Assistant United States Attorneys Philip H. Wright, Larry R. Ellis, and Eric P. Bacaj, as well as the Environmental Protection Agency’s Regional Criminal Enforcement Counsel Perry D. McDaniel, are handling the prosecutions. United States District Judge Thomas E. Johnston imposed the sentence, and will preside over the remaining sentencing hearings associated with the chemical spill.
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Former Connecticut Resident Admits Defrauding Federal Energy Program of More Than $9 MillionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WALTER CRAIG BRADWAY, 64, formerly of Glastonbury and currently residing in Holmes Beach, Florida, waived his right to indictment and pleaded guilty today in New Haven federal court to fraudulently obtaining more than $9 million in economic stimulus program funds in 2010 and 2011.
According to court documents and statements made in court, in 2009, Congress passed the American Recovery and Reinvestment Act, which included provisions for various economic stimulus programs funded in part or in whole by the United States. These programs included the Specified Energy Property Program administered by the U.S. Department of the Treasury, which was referred to as the “Section 1603 program.” The Section 1603 program, which was administered by the National Renewable Energy Laboratory (“NREL”) in Golden, Colorado, provided funds to reimburse eligible applicants a portion of their costs for installing specific energy properties, including the installation of solar panel projects.
Applicants seeking reimbursement for their energy projects were required to submit supporting documentation including engineer-certified design plans for the project, vendor invoices reflecting the costs of installing the energy property and, for projects that were connected to an existing public utility, an interconnection agreement with that utility. Under the rules of the Section 1603 program, reimbursements could not be made until the energy property in question was completed and placed in service. The Department of the Treasury reimbursed 30 percent of the cost of approved Section 1603 applications.
BRADWAY was the owner and president of Glastonbury-based DataComm Services LLC (“DCS”). In 2010 and 2011, BRADWAY, through DCS, submitted more than 300 applications for Section 1603 reimbursements for solar panel projects in Connecticut, Massachusetts, Florida, South Carolina, Pennsylvania, Rhode Island, Maine and California. Many of these applications were fraudulent, however, because BRADWAY represented that the project was installed and in service when, in fact, the project had not been completed or even begun. BRADWAY also overstated the size and cost of projects in order to increase the reimbursement amount. In connection with many applications, BRADWAY submitted false documentation, including falsified engineer reports and fake interconnection agreements with local utility companies. As a result of these fraudulent applications, BRADWAY received approximately $9,026,637 in funds that he was not entitled to.
BRADWAY pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on April 25, 2016.
As part of his plea, BRADWAY has agreed to restitution in the amount of $8,935,266.50.
This matter is being investigated by the U.S. Department of Treasury – Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Sarah Karwan.
Former Charles County Circuit Court Judge Pleads Guilty to Civil Rights ViolationRead the Press Release
Greenbelt, Maryland – Former Charles County Judge Robert C. Nalley, of La Plata, Maryland, pleaded guilty today to deprivation of rights under color of law for ordering a deputy sheriff to activate a stun-cuff worn by a pro se criminal defendant during a pre-trial court proceeding.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Principal Deputy Assistant Attorney General for the Department of Justice Civil Rights Division Vanita Gupta; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
"Disruptive defendants may be excluded from the courtroom and prosecuted for obstruction of justice and contempt of court, but force may not be used in the absence of danger," said U.S. Attorney Rod J. Rosenstein.
“Under our constitution, judges serve as the guardians and arbitrators of justice,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “When government officials – including judges – violate the rights we entrust them to defend and break the laws we expect them to uphold, they undermine the legitimacy of our justice system.”
From 1988 to September 2014, Nalley was a judge of the Circuit Court for Charles County, Maryland. According to his guilty plea, on July 23, 2014, Judge Nalley presided over the jury selection for the victim, who was representing himself in a criminal proceeding in Charles County court. Before the proceedings began, a deputy sheriff informed Judge Nalley that the victim was wearing a stun-cuff. Judge Nalley was aware that when activated, the stun-cuff would administer an electrical shock to the victim, thereby incapacitating him and causing him pain.
Several minutes after the proceedings had begun, Judge Nalley asked the victim whether he had any questions for the potential jurors. The victim repeatedly ignored Judge Nalley and instead read from a prepared statement, objecting to Judge Nalley’s authority to preside over the proceedings, while standing calmly behind a table in the courtroom. The victim did not make any aggressive movements, did not attempt to flee the courtroom, and did not pose a threat to himself or to any other person at any point during the proceedings. Judge Nalley twice ordered the victim to stop reading his statement, but the victim continued to speak.
Judge Nalley then ordered the deputy sheriff to activate the stun-cuff, which administered an electric shock to the victim for approximately five seconds. The electric shock caused the victim to fall to the ground and scream in pain. Judge Nalley recessed the proceedings.
Nalley faces a maximum sentence of one year in prison followed by one year of supervised release and a fine of up to $100,000. U.S. Magistrate Judge William Connolly has scheduled sentencing for March 31, 2016 at 10:00 a.m.
United States Attorney Rod J. Rosenstein and Principal Deputy Assistant Attorney General Vanita Gupta commended the FBI for its work in the investigation, and thanked Assistant U.S. Attorneys Kristi N. O’Malley and Daniel C. Gardner of the District of Maryland, and Trial Attorney Mary J. Hahn of the Civil Rights Division, who are prosecuting the case.
Florida-Based Centerra Services International Inc. Agrees to Pay $7.4 Million to Settle False Claims Act Allegations Related to Wartime ContractRead the Press Release
Centerra Services International Inc., formerly known as Wackenhut Services LLC, has agreed to pay $7.4 million to resolve allegations that Wackenhut violated the False Claims Act by double billing and inflating labor costs in connection with a contract for firefighting and fire protection services in Iraq, the Department of Justice announced today. Centerra is a security services company headquartered in Palm Beach Gardens, Florida.
“Our military depends on the private sector – both prime contractors and subcontractors – to provide critical services to protect the health and safety of our men and women in uniform,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Those subcontractors who knowingly inflate the costs of these services, which are passed onto the government and the taxpayer, will face appropriate consequences. Today’s settlement demonstrates our continuing vigilance to ensure that our servicemen and women obtain the services they need at the price we bargained for.”
Wackenhut provided U.S. military bases with firefighting and fire protection services under a subcontract with Kellogg Brown & Root Inc. (KBR), the prime contractor for the Army’s contract for logistical support in the military theater, known as LOGCAP III. LOGCAP III is the third generation of contracts under the Army’s Logistical Civil Augmentation Program. The government alleged that from 2008 to 2010, Wackenhut inflated its labor costs by billing the salaries of certain managers as direct costs under the subcontract, when those salaries had already been charged as indirect costs. The government further alleged that Wackenhut artificially inflated its labor rate by counting its costs for holidays, vacation, sick leave, rest and recuperation and other variable labor costs twice in calculating the rate. Wackenhut billed KBR, which then passed on the costs to the government under LOGCAP III.
“Contractors are expected to comply with their statutory obligations and act in good faith when dealing with the U.S. government,” said Special Agent in Charge Janice M. Flores of the Defense Criminal Investigative Service (DCIS) Southwest Field Office. “The DCIS is committed to working with its partner agencies, such as the U.S. Department of Justice, Defense Contract Audit Agency and the U.S. Army Criminal Investigation Command to ensure the integrity of the Defense Department’s procurement process. This settlement demonstrates that combatting fraud, waste and abuse within Department of Defense contracting remains a top priority.”
This settlement resolves a lawsuit filed by whistleblower Gary W. Reno under the qui tam or whistleblower provisions of the False Claims Act. The act permits private individuals to sue on behalf of the government those who falsely claim federal funds, or cause others to do so, and to receive a share of any funds recovered through the lawsuit. Reno will receive $1.332 million as his share of the recovery.
This settlement was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Eastern District of Texas, the Department of Defense Inspector General’s Office, the Defense Criminal Investigative Service and the Defense Contract Audit Agency.
The case is captioned Reno v. Kellogg Brown & Root, Inc. and Wackenhut Services, LLC, et al., Case No. 1:10-CV-504 (E.D. Tex.). The claims resolved by the settlement are allegations only; there has been no determination of liability.
Florida Man Sentenced for His Role in Fraudulent Tax Return SchemeRead the Press Release
Contact Person: Benjamin Garner (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Amondo Samuel Burke of Tampa, Florida was sentenced to 33 months’ incarceration in federal court. On May 28, 2015, Burke pled guilty to one count of theft of government funds, in violation of Title 18, United States Code, Section 641, and one count of possession of fifteen or more unauthorized devices, in violation of Title 18, United States Code, Section 1029(a)(3). Senior United States District Judge Margaret B. Seymour sentenced Burke to 33 months’ imprisonment followed by a three-year term of supervised release. Judge Seymour also ordered Burke to pay restitution to the Internal Revenue Service in the amount of $111,228.00.
Evidence presented at the guilty plea hearing established that, in February 2012, deputies with the Kershaw County Sheriff’s Office executed a traffic stop of Burke’s vehicle for a moving violation. During a search of Burke’s vehicle, deputies found two lap-top computers, fifty-two pre-paid debit cards in the names of other individuals, and seventy three medical intake forms from a drug treatment facility in Philadelphia. Burke later admitted to running a criminal tax scheme whereby he would use the personal identifying information of unsuspecting individuals to file false tax returns and have the fraudulent returns loaded onto pre-paid debit cards. By executing this scheme, Burke received a total of $111,228.00 in fraudulently obtained tax refunds from the Internal Revenue Service.
The case was investigated by agents of the Internal Revenue Service Criminal Investigations with the assistance of the Kershaw County Sheriff’s Office. Assistant United States Attorney Ben Garner of the Columbia office is prosecuting the case.
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Federal Jury Finds Cape Coral Man Guilty of Illegal Firearm PossessionRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Michael Terrill Faircloth (58, Cape Coral) guilty of possessing a firearm and ammunition after being convicted of a felony offense. He faces a maximum penalty of 10 years in federal prison. A sentencing hearing is scheduled for May 2, 2016.
Faircloth was indicted on July 9, 2014.
According to testimony presented at trial, prior to May 21, 2014, the date of the offense, Faircloth had been convicted of felony offenses, and was wanted on an active arrest warrant. Upon receiving information of his possible location, law enforcement officers from the Florida Regional Fugitive Task Force, the United States Marshals Service, and the Cape Coral Police Department conducted an operation to arrest Faircloth. When law enforcement officers arrived to execute the arrest, they witnessed Faircloth, who was standing in a neighbor’s yard, holding a firearm in his back waistband. As the officers approached Faircloth, he fled a short distance, threw the loaded gun to the ground, and surrendered.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Charles Schmitz.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Federal Indictment Charges 12 in Methamphetamine Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Twelve defendants have been charged in a federal indictment, partially unsealed on Friday, with felony offenses stemming from their role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Eleven defendants, all from the Lubbock, Texas, area, were arrested last Thursday in a joint operation by the Federal Bureau of Investigation, Homeland Security Investigations, Immigration and Customs Enforcement, the U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshals Service, the Texas Department of Public Safety, the Lubbock County Sheriff’s Office and the Lubbock Police Department. Those arrested made their initial appearances Friday afternoon before U.S. Magistrate Judge E. Scott Frost, and most remain in federal custody. Three defendants are set for detention hearings, and one defendant remains a fugitive.
In connection with the takedown, law enforcement seized approximately one kilogram of methamphetamine, 13 firearms, ammunition and several items of stolen property.
The indictment charges each of the following defendants with one count of conspiracy to distribute and possess with intent to distribute methamphetamine:
Isabel Soto, 28
Veronica Sanchez Lopez, 37
Monty Fred Humble, 35
Martin Leonard Lomas, 34
Michael Brent Watson, 33
Joe Louis Lara, 29
Cruz Lee Betancur, 32
Richard Luke Elam, 49
Jonathon Christopher Chapa, 33
Christopher Ray Lovington, 29
Erica Dominguez, 36In addition, most of the defendants are charged with at least one substantive count of distribution and possession with intent to distribute methamphetamine and aiding and abetting. Defendant Joe Louis Lara is also charged with two firearms offenses – one count of possession of firearms in furtherance of a drug trafficking crime and aiding and abetting and one count of being a convicted felon in possession of firearms and aiding and abetting.
The indictment alleges that the defendants conspired with, among others, three recently-convicted/sentenced defendants who were sent by the Sinaloa Cartel, an international drug trafficking, money laundering, and organized crime syndicate, to Lubbock to facilitate the distribution of methamphetamine in Lubbock for the cartel. Each of these three below-listed defendants pleaded guilty last year to one count of possession with intent to distribute 500 grams or more of methamphetamine and aiding and abetting and was sentenced last month as follows:
Juan Carlos Pinales, 23, sentenced to 151 months in federal prison
Ramon Osvaldo Escobar-Robles, 25, sentenced to 78 months in federal prison
Jesus Mario Moreno-Perez, 24, sentenced to 120 months in federal prisonA federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the conspiracy count carries a maximum statutory penalty ranging from 20 years to life in federal prison and a $1 million to $10 million dollar fine. The other drug counts carry a maximum statutory penalty ranging from 20 years to life imprisonment. One firearm count carries a statutory penalty of not less than five years or more than life in federal prison and a $250,000 fine. The other firearm count carries a statutory penalty of not more than 10 years in federal prison and a $250,000 fine
Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
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Fayetteville Man Sentenced to over 11 Years in Federal Prison for Immigration and Drug Trafficking OffenseRead the Press Release
Acting United States Attorney Kenneth Elser
Western District of Arkansas
_______________________________________________________FOR IMMEDIATE RELEASE CONTACT: Joyce Snow
Febryary 1, 2016 PHONE: (479) 494-4066TWITTER: @WDARnews
FAYETTEVILLE MAN SENTENCED TO OVER 11 YEARS IN FEDERAL PRISON FOR IMMIGRATION AND DRUG TRAFFICKING OFFENSE
Fayetteville - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Melquaides Lopez-Del Angel, aka Eduardo Lopez-Corpus, aka Nacho, age 40, of Fayetteville, was sentenced to 135 months in federal prison on one count of Possession with Intent to Distribute More than 500 Grams of a Mixture or Substance Containing Methamphetamine in violation of 21 U.S.C. 841(a) and (b)(1)(A)(viii) and 120 months on one count of Illegal Reentry by Removed Alien Following a Felony Conviction. Lopez’s sentence will run concurrently and be followed by five years of supervised release. The Honorable Timothy O. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, Lopez was caught by the Benton County Sheriff’s Office and the Drug Enforcement Administration (DEA) in the parking lot of a Rogers, Arkansas restaurant waiting to make a delivery of methamphetamine. A search of the vehicle in which he was traveling yielded what was later confirmed to be 646 grams of actual methamphetamine. When interviewed by investigators, Lopez admitted he had come to the restaurant to deliver the methamphetamine to another person, and that he had done so on two or three previous occasions. After arrest, it was also determined by Immigrations and Customs Enforcement that Lopez had been previously removed from the United States by deportation in 2013 and was currently in the country without lawful permission. Lopez pleaded guilty to the charges in September, 2015.
This case was investigated by the Benton County Sheriff’s Office, the Drug Enforcement Administration, and Immigrations and Customs Enforcement. Assistant United States Attorney Brandon Carter prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Executive Office for Immigration Review Swears in Nine Immigration JudgesRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced the investiture of nine immigration judges. Acting Chief Immigration Judge Print Maggard presided over the investiture during a ceremony held Jan. 29, 2016, at the U.S. Court of Appeals for the Armed Forces in Washington D.C.
After a thorough application process, Attorney General Loretta E. Lynch appointed Xiomara Davis-Gumbs, Jennifer M. Gorland, Denise C. Hochul, Mark J. Jebson, Margaret M. Kolbe, Ramin Rastegar, Shifra Rubin, Meredith B. Tyrakoski, and Daniel H. Weiss to their new positions.
“Our agency continues to work hard to hire highly qualified immigration judges who will help to decrease our pending caseload,” said Maggard. “With these nine new immigration judges, our immigration judge corps now totals 254, and we will continue adding to this number throughout this year to further enhance EOIR’s capacity to meet the tremendous challenges we face.”
Xiomara Davis-Gumbs, Immigration Judge, Dallas Immigration Court
Attorney General Loretta E. Lynch appointed Judge Davis-Gumbs to begin hearing cases in January 2016. Judge Davis-Gumbs earned a Bachelor of Science degree in 1983 from John Jay College of Criminal Justice, City University of New York and a Juris Doctor in 1992 from Touro College, Jacob D. Fuchsberg Law Center. From 2008 through 2015, Judge Davis-Gumbs served in the Office of the Chief Counsel, U.S. Citizenship and Immigration Services (USCIS), U.S. Department of Homeland Security (DHS), in Dallas, in various capacities including deputy chief counsel, and previously as associate counsel, Central Law Division, and as associate counsel, Training and Knowledge Management Division. From 2002 through 2008, Judge Davis-Gumbs served as assistant chief counsel in the Office of Principal Legal Advisor, U.S. Immigration and Customs Enforcement, DHS, in Newark, N.J. From 1997 through 2002, Judge Davis-Gumbs served as an asylum officer in the Office of International Affairs, in the former Immigration and Naturalization Service, U.S. Department of Justice (DOJ), in Rosedale, N.Y. From 1994 through 1997, Judge Davis-Gumbs served as special assistant/litigation coordinator for the Federal Bureau of Prisons, DOJ, in New York, N.Y. From 1993 through 1994, Judge Davis-Gumbs served as a law clerk, and from 1988 through 1993, as an inmate grievance counselor in the Trial Unit, New York City Department of Corrections. Judge Davis-Gumbs is a member of the New York Bar.
Jennifer M. Gorland, Immigration Judge, Detroit Immigration Court
Attorney General Loretta E. Lynch appointed Judge Gorland to begin hearing cases in January 2016. Judge Gorland received a Bachelor of Arts degree in 1982 from the University of Michigan and a Juris Doctor in 1985 from Wayne State University School of Law. From 1989 through 2015, Judge Gorland served in the U.S. Attorney’s Office for the Eastern District of Michigan, in Detroit, as an assistant U.S. attorney in various capacities, including: first assistant U.S. attorney; chief, General Crimes Unit; deputy chief, and previously as assistant U.S. attorney, General Crimes Unit; assistant U.S. attorney, Economic Crimes Unit; and, as assistant U.S. attorney, Civil Division. From 1985 through 1989, Judge Gorland served as an associate for Pepper, Hamilton and Scheetz, in Detroit. Judge Gorland is a member of the State Bar of Michigan.
Denise C. Hochul, Immigration Judge, Buffalo Immigration Court
Attorney General Loretta E. Lynch appointed Judge Hochul to begin hearing cases in January 2016. Judge Hochul received a Bachelor of Arts degree in 1980 from the State University of New York at Buffalo and a Juris Doctor in 1985 from the Ohio Northern University, Claude W. Pettit College of Law. From 1996 through 2015, Judge Hochul served in the Office of the Chief Counsel, U.S. Immigration and Customs Enforcement (ICE), Department of Homeland Security, in Buffalo, in various capacities, including: senior attorney; assistant chief counsel; designated human rights law special interest attorney; designated national security special interest attorney; member of the Trial Advocacy Training Team; and as a special assistant U.S. attorney in the U.S. Attorney’s Office for the Western District of New York. From 1987 through 1996, she served as an assistant district attorney in the Erie County District Attorney’s Office in Buffalo. Judge Hochul is a member of the New York Bar.
Mark J. Jebson, Immigration Judge, Detroit Immigration Court
Attorney General Loretta E. Lynch appointed Judge Jebson to begin hearing cases in January 2016. Judge Jebson received a Bachelor of Arts degree in 1990 from the University of California, Los Angeles, a Juris Doctor in 1994 from the John Marshall Law School, and a Master of Laws degree in 1995 from the New York University School of Law. From 2003 through 2015, Judge Jebson served in the Office of Chief Counsel, U.S. Immigration and Customs Enforcement (ICE), Department of Homeland Security, in Detroit, in various capacities, including: senior attorney, deputy chief counsel, assistant chief counsel, and as a special assistant U.S. attorney in the U.S. Attorney’s Office for the Eastern District of Michigan. From 2002 through 2003, Judge Jebson served as an assistant U.S. attorney in the U.S. Attorney’s Office for the Northern District of Texas, in Dallas. From 1997 through 2002, Judge Jebson served as an assistant district counsel in the former Immigration and Naturalization Service, U.S. Department of Justice, in Detroit. From 1996 through 1997, he served as a judicial law clerk for the Michigan Supreme Court, and from 1995 through 1996, as a prehearing attorney for the Michigan Court of Appeals, in Detroit. Judge Jebson is a member of the Illinois State Bar and the State Bar of Michigan.
Margaret M. Kolbe, Immigration Judge, New York Immigration Court
Attorney General Loretta E. Lynch appointed Judge Kolbe to begin hearing cases in January 2016. Judge Kolbe received a Bachelor of Arts degree in 1987 from the University of Cincinnati, a Master of Arts degree in 1989 from the University of Cincinnati, and a Juris Doctor in 1996 from the Notre Dame Law School. From 2002 through 2015, Judge Kolbe served as assistant U.S. attorney in the U.S. Attorney’s Office for the Eastern District of New York, in Brooklyn, N.Y. From 1996 through 2002, Judge Kolbe served as an attorney advisor for the Board of Immigration Appeals, Executive Office for Immigration Review, U.S. Department of Justice, in Falls Church, Va., and from 1991 through 1993, as a Peace Corps volunteer in Gabon, Africa. Judge Kolbe is a member of the Ohio Bar.
Ramin Rastegar, Immigration Judge, Newark Immigration Court
Attorney General Loretta E. Lynch appointed Judge Rastegar to begin hearing cases in January 2016. Judge Rastegar received a Bachelor of Science in 1991 from George Mason University and a Juris Doctor in 1995 from New York Law School. From 2000 through 2015, Judge Rastegar served as assistant chief counsel in the Office of the Chief Counsel, U.S. Immigration and Customs Enforcement, Department of Homeland Security, in New York, N.Y. From 1997 through 2000, Judge Rastegar served as an associate at Barst and Mukamal LLP, in New York, N.Y., and from 1996 through 1997, as an associate in the Law Offices of Ronald Salomon, in New York, N.Y. Judge Rastegar is a member of the Connecticut and New York Bars.
Shifra Rubin, Immigration Judge, Newark Immigration Court
Attorney General Loretta E. Lynch appointed Judge Rubin to begin hearing cases in January 2016. Judge Rubin received a Bachelor of Arts degree in 1992 from Rutgers University and a Juris Doctor in 2002 from Rutgers School of Law. From 2003 through 2015, Judge Rubin served in various capacities for the Immigration Representation Project, Legal Services of New Jersey, in Edison, N.J., including serving as a senior attorney, supervising attorney, and staff attorney. Judge Rubin is a member of the New Jersey Bar.
Meredith B. Tyrakoski, Immigration Judge, San Antonio Immigration Court
Attorney General Loretta E. Lynch appointed Judge Tyrakoski to begin hearing cases in January 2016. Judge Tyrakoski received a Bachelor of Arts degree in 1996 from Northwestern University and a Juris Doctor in 2003 from the William and Mary School of Law. From 2006 through 2015, Judge Tyrakoski served as an assistant U.S. attorney in a number of U.S. Attorney’s Offices throughout the country, including the U.S. Attorney’s Office for the District of Nebraska in Omaha, the U.S. Attorney’s Office for the Western District of Texas in El Paso, Texas, and as special assistant attorney in the U.S. Attorney’s Office for the Central District of California in Los Angeles, Calif. From 1997 through 2008, Judge Tyrakoski served in the U.S. Marine Corps in various capacities, including: staff judge advocate, legal assistance attorney, defense counsel, student judge advocate, operations officer, public affairs officer, and supply officer. Judge Tyrakoski is a member of the State Bar of Texas and the Virginia Bar.
Daniel H. Weiss, Immigration Judge, Dallas Immigration Court
Attorney General Loretta E. Lynch appointed Judge Weiss to begin hearing cases in January 2016. Judge Weiss received a Bachelor of Arts degree in 1986 from the University of Pennsylvania and a Juris Doctor in 1990 from the University of Maryland School of Law. From 2010 through 2015, Judge Weiss served as senior trial attorney in the Human Trafficking Prosecution Unit, Criminal Section, Civil Rights Division, U.S. Department of Justice (DOJ), in Washington, D.C. From 2005 through 2010, Judge Weiss served as deputy chief, and, previously as a trial attorney, in the Special Litigation Section, Civil Rights Division, DOJ. From 1992 through 2000, Judge Weiss served as an assistant public defender II in the Appellate Trials Division, State of Maryland Office of the Public Defender, in Baltimore. From 1991 through 1992 Judge Weiss served as an attorney at the Fidelity & Deposit Companies of Maryland, in Baltimore, and from 1990 through 1991, as law clerk to the Honorable Ellen Hollander, Circuit Court for Baltimore City. Judge Weiss is a member of the District of Columbia and Maryland Bars.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR's immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR's Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
District Election Officer and Primary Day Hotline Established by United States Attorney’s OfficeRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced the establishment of a Primary Day hotline that will be monitored throughout Primary Day on February 9, 2016. The hotline number, which will be active on Primary Day, is 603-230-2503.
Assistant United States Attorney Mark S. Zuckerman of the United States Attorney’s Office will oversee complaints of election fraud and abuse of voting rights in consultation with Justice Department Headquarters in Washington, D.C. In order to respond to these complaints and address any abuse of voting rights, AUSA Zuckerman will be on duty while the polls are open.
United States Attorney Rice said, “The right to vote without interference or discrimination, and to have that vote counted, is the bedrock on which our democracy is built. Information about discrimination or election fraud should be reported immediately to my office, the FBI, or the Civil Rights Division. The Department of Justice and the U.S. Attorney’s Office will act promptly and aggressively to ensure that those who seek to undermine the integrity of the election process are brought to justice.”
Complaints about ballot access problems or discrimination may be made directly to the Civil Rights Division’s Voting Section in Washington, D.C. at 1-800-253-3931.
A Federal Election Fraud Fact Sheet that explains federal criminal jurisdiction in connection with elections and voting rights is posted on the United States Attorney’s website: www.usdoj.gov/usao/nh.
Department of Justice Launches Comprehensive Review of the San Francisco Police DepartmentRead the Press Release
The Department of Justice today announced the launch of an independent and comprehensive review of the San Francisco Police Department. This review will be conducted by the Office of Community Oriented Policing Services (COPS Office) through its Collaborative Reform Initiative.
The review is in response to requests made by city officials and community members asking that the Justice Department conduct an in-depth look into the use of force policies and practices of the San Francisco Police Department.
“The Department of Justice is dedicated to upholding the highest standards of law enforcement throughout the United States, and this Collaborative Reform Initiative is a vital component of that effort,” said Attorney General Loretta E. Lynch. “In the days and months ahead, we will examine the San Francisco Police Department’s current operational policies, training practices and accountability systems, and help identify key areas for improvement going forward. I am confident that together we can make certain that our officers have the tools and training they need to do their jobs, and that every member of the San Francisco community has the protection and service they deserve.”
Director Ronald Davis of the COPS Office, the Justice Department agency responsible for collaborative review, and Acting U.S. Attorney Brian J. Stretch of the Northern District of California, were joined by San Francisco city and law enforcement leaders to announce the launch of the collaborative reform process.
“As part of the collaborative reform process, the Justice Department will conduct a thorough, independent and objective assessment of the San Francisco Police Department’s policies, practices and accountability systems,” said Director Davis. “The findings will allow the police department to implement best practices in law enforcement and empower the community to hold the department to those standards.”
“San Francisco Mayor Ed Lee and San Francisco Police Department Chief Greg Suhr have jointly requested this collaborative review and have publicly committed to providing the resources necessary for its successful completion,” said Acting U.S. Attorney Stretch. “The Department of Justice will engage the police department, the Mayor's office, and the communities they serve in a constructive assessment. We are also committed to monitoring and assisting with the implementation of any reforms recommended by the COPS Office.”
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The Collaborative Reform Initiative for Technical Assistance is an independent and objective way to transform a law enforcement agency through an analysis of policies, practices, training, tactics and accountability methods around key issues facing law enforcement today. The initiative is designed to provide technical assistance to agencies facing significant law enforcement-related issues. Using subject matter experts, interviews and direct observations, as well as conducting extensive research and analysis, the COPS Office assists law enforcement agencies in enhancing and improving their policies and procedures, operating systems and professional culture.
Following the assessment, the Justice Department will issue a public report detailing the findings of the assessment, along with specific recommendations for improvement. The COPS Office will assess progress made in implementing those recommendations over an 18-month period following the initial assessment. Two progress reports will be released tracking implementation of those recommendations.
The COPS Office is currently providing collaborative reform in Spokane, Washington; Philadelphia; St. Louis County, Missouri; Salinas, California; Fayetteville, North Carolina; Calexico, California; and Milwaukee, Wisconsin, and has completed the process in Las Vegas.
The COPS Office, headed by Director Ronald Davis, is a federal agency responsible for advancing community policing nationwide. Since 1995, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 127,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
Darkode Criminal Forum Member Sentenced to 27 Months in PrisonRead the Press Release
PITTSBURGH - A resident of Indianapolis, Indiana, has been sentenced in federal court to 27 months imprisonment to be followed by one year supervised release, on his conviction of violating the CAN-SPAM ACT, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Phillip Fleitz, 31. Fleitz is one of 12 individuals charged in connection with a significant computer hacking forum known as Darkode, which has been dismantled.
According to information presented to the court, Fleitz knowingly used a protected computer to relay or retransmit multiple commercial electronic mail messages with the intent to deceive or mislead recipients.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Phillip Fleitz.
Cottage Hills Woman Sentenced on Healthcare Fraud ChargeRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today, that on January 29, 2016, Lisa Jorden, 50, of Cottage Hills, Illinois, pled guilty and was sentenced in the U.S. District Court in East Saint Louis, Illinois, on the charge that she engaged in a scheme to steal from a health care program. The district court sentenced Jorden to five years of probation. She is also ordered to pay $16,828.00 in restitution to the Home Services Program and a $100.00 special assessment.
Court records indicate that Jorden admitted that she had submitted false and fraudulent bills in relation to her alleged performance of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. Jorden admitted to falsely billing the program between February 14, 2013 and August 15, 2014, when she purportedly rendered personal assistant services to customers when, in fact, she had not. As a result, Jorden improperly billed hours of services and obtained $16,828.00 in payments for services not performed.
The investigation was conducted by the U.S. Department of Health and Human Services - Office of Inspector General, the Illinois State Police - Medicaid Fraud Control Bureau, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney William E. Coonan.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Centralia Man Sentenced for Meth ConspiracyRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Joseph Lee Smith, 35, of Centralia, Illinois, was sentenced today to 36 months in federal prison, to be followed by 4 years of supervised release, a $500 fine and a $200 special assessment. There is no parole in the federal system. Sentencing followed Smith’s September 15, 2015, guilty plea to Conspiracy to Manufacture and Distribute Methamphetamine, and Possession of Pseudoephedrine Knowing It Would Be Used to Manufacture Methamphetamine.
According to court documents, from approximately December 2012, to February 21, 2014, a conspiracy to manufacture methamphetamine was operating in Marion, Clinton and Jefferson Counties. Smith participated in the conspiracy by providing pills containing pseudoephedrine to his co-conspirators in exchange for cash or drugs, knowing the pills would be used in the manufacture of methamphetamine.
Information leading to the conviction of Smith was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team, and the Centralia Police Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
California Man Operating Phone Room in Debt Relief Scam Pleads Guilty to Defrauding ConsumersRead the Press Release
An Orange County, California, man pleaded guilty today for his role in operating fraudulent debt relief firms that offered to settle credit card debts but instead took victims’ payments as undisclosed up-front fees, the Justice Department and U.S. Postal Inspection Service announced.
Jeremy Nelson, 30, pleaded guilty to one count of an indictment alleging conspiracy to commit mail fraud and wire fraud in connection with companies known as Nelson Gamble & Associates (Nelson Gamble) and Jackson Hunter Morris & Knight LLP (Jackson Hunter). According to the indictment, Nelson and his employees portrayed the debt relief companies as law firms and attorney-based companies that would negotiate favorable settlements with creditors. Clients made monthly payments expecting the money to go toward settlements. Nelson and his co-conspirators instead took at least 15 percent of the total debt as company fees, with the first six months of payments going almost entirely toward undisclosed up-front fees.
“Debt relief scams prey on vulnerable consumers trying to climb out of tough financial situations,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Justice Department will continue to investigate those who take advantage of consumers facing hard times, and prosecute unlawful schemes that bleed desperate consumers of their remaining resources.”
“This scheme victimized people already in financial distress,” said U.S. Attorney Eileen M. Decker of the Central District of California. “As today’s guilty plea shows, the Justice Department is committed to protecting consumers, particularly those who are vulnerable to fraud schemes designed to prey upon people already in perilous economic condition.”
“Protecting our customers from fraud is one of our agency’s biggest priorities,” said Acting Inspector in Charge Daniel Brubaker of the U.S. Postal Inspection Service. “The U.S. Postal Inspection Service will continue to vigorously pursue those who use our nation’s mail system to commit fraud or other illegal activity.”
Jeremy Nelson’s scheme ran from February 2010 to September 2012. Nelson admitted he changed the name of his company from Nelson Gamble to Jackson Hunter in 2011. Nelson and his co-conspirators told victims that Nelson Gamble had gone bankrupt and that Jackson Hunter was an unrelated company that had taken over some of the accounts. Nelson and his co-conspirators blamed past problems on Nelson Gamble and denied requests for refunds of money paid to Nelson Gamble. Some victims who previously demanded refunds accepted the explanation that Nelson Gamble was bankrupt and did not pursue complaints against Jackson Hunter.
Nelson faces a statutory maximum penalty of 20 years in prison. The court has not yet scheduled a sentencing date before U.S. District Judge Dale S. Fischer of the Central District of California in Los Angeles.
One of Nelson’s co-defendants, Elias Ponce, previously pleaded guilty in October 2015. Two other defendants, Athena Maldonado and Christopher Harati, pleaded guilty in June 2015 in a related case. Trial against the remaining defendant charged in the scheme, John Vartanian, is set for Sept. 13 in Los Angeles.
In September 2012, the Federal Trade Commission brought a civil case against Nelson and his companies, alleging that the defendants misrepresented debt relief services offered to consumers. (See https://www.ftc.gov/enforcement/cases-proceedings/122-3030-x120048/nelson-gamble-associates-llc-et-al). The case was settled by entry of a consent decree in August 2013.
Principal Deputy Assistant Attorney General Mizer commended the U.S. Postal Inspection Service team assigned to the Civil Division’s Consumer Protection Branch for their investigative efforts and thanked the U.S. Attorney’s Office of the Central District of California for their contributions to the case. The case is being prosecuted by trial attorneys Alan Phelps and James Harlow of the Consumer Protection Branch.
Buffalo Man Indicted, Charged with Multiple Bank RobberiesRead 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 a federal grand jury returned a 12 count indictment charging Casey Swain, 37, of Buffalo, NY, with committing bank robberies, entering banks with intent to commit larceny, and bank larcenies. The charges carry a maximum penalty of 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that according to the indictment, on four different dates, the defendant robbed First Niagara Bank branches in Buffalo, Lackawanna, Niagara Falls, and Kenmore. Each of the four robberies involved the defendant passing similar notes which demanded that the money provided contain no bank security devices and instructed the victims not to make any eye contact or sudden movement or things would turn bad.
The defendant was arraigned before U.S. Magistrate Judge H. Kenneth Schroeder, Jr., and is being detained pending further proceedings.
The indictment is the culmination of an investigation by the Federal Bureau of Investigation, under the direction on the part of Adam S. Cohen, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Lackawanna Police Department, under the direction of Chief James Michel, the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto, and the Kenmore Police Department, under the direction of Chief Peter Breitnauer.
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.
Belleville Man Sentenced for Robbery of Imo’s DriverRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today, that on Friday, January 29, 2016, Gregory Morgan, 20, of Belleville, Illinois, was sentenced in federal District Court for obstructing commerce by robbery and for carrying a firearm during a robbery. Morgan was sentenced to a 111 months in federal prison, to be followed by two years of supervised release, and a $200 special assessment. The District Court also ordered that Morgan pay the victims of the robbery $45 in restitution.
On January 23, 2015, Morgan called an Imo’s Pizza restaurant and placed a delivery order for pizza and chicken wings. Morgan, wearing black pants, a black sweatshirt and a dark colored bandana covering his face, lay in wait for the driver. When the Imo’s Pizza delivery driver arrived, Morgan brandished a .22 caliber semi-automatic weapon and demanded the pizzas, chicken wings and any money the driver had. Morgan then fled with the food and $45 in cash.
This investigation was conducted by the Federal Bureau of Investigation and the Belleville Police Department and was prosecuted by Assistant United States Attorneys Laura Reppert and Jonathan Drucker.
Batavia Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Gordon L. Montgomery, 57, of Batavia, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to conspiracy to distribute, and possess with intent to distribute, 50 grams or more of methamphetamine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, a fine of $2,000,000, or both.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that the charges resulted from a joint federal, state and local investigation, which revealed that Montgomery was responsible for traveling to California on two occasions in 2007 and obtaining quantities of methamphetamine from Richard W. Mar, the President of the Hell’s Angels, Monterey (CA) Charter, and transporting the methamphetamine back to the Western District of New York, where it was distributed to others. The defendant made the trips to California on behalf of two other co-conspirators, James H. McAuley, Jr., then the Vice President of the Hell’s Angels, Rochester Charter, and McAuley’s wife, Donna Boon. McAuley and Boon sent Montgomery on both trips, paying for his airfare and paying him a $1,000 fee for each trip. The defendant obtained and transported between 500 grams and 1.5 kilograms of methamphetamine on the two trips.
This case was part of a larger investigation that resulted in the indictment and arrest of members and associates of the Rochester and Monterey (California) Hell's Angels for drug trafficking and racketeering-related offenses in February 2012. Along with Montgomery, Monterey (California) Hell's Angels President Richard W. Mar, Rochester Hell's Angels members James H. McAuley, Jr., of Oakfield, NY, and Jeffrey A. Tyler, of Rochester, NY, and Donna Boon, of Oakfield, were charged with conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of methamphetamine. Two other defendants, Paul Griffin, of Blasdell, NY, and Richard E. Riedman, of Webster, NY, were convicted for their roles in the methamphetamine conspiracy. Judge Siragusa sentenced Griffin to probation and Riedman to 37 months in prison.
Rochester Hell's Angels member Robert W. Moran, Jr., of Rochester along with Gina Tata, also of Rochester, are charged in the same indictment with assault with a dangerous weapon in aid of racketeering activity, and McAuley, Moran and Tata are charged with conspiracy to commit assault with a dangerous weapon in aid of racketeering activity. In addition, Tata is charged with being an accessory after the fact to the assault and conspiracy. Another defendant, Timothy M. Stone, of Gates, NY, was convicted of being an accessory after the fact to the assault and conspiracy on July 6, 2015. He is scheduled to be sentenced by Judge Siragusa on February 5, 2016.
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.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam Cohen, the Genesee County Sheriff's Office, under the direction of Sheriff Gary T. Maha, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the New York State Police, under the direction of Major Craig Hanesworth, the City of Batavia Police Department, under the direction of Chief Sean Shawn Heubusch, and the Village of LeRoy Police Department.Sentencing is scheduled for May 3, 2016, at 10:45 a.m. before Judge Siragusa.
Bakersfield Resident Sentenced for Pointing a Laser at Kern County Sheriff HelicopterRead the Press Release
FRESNO, Calif. — Jose Javier Rosas, aka Jose Javier Rosas Jimenez 62, of Bakersfield, was sentenced today to 18 months in prison for aiming the beam of a high-powered laser pointer at Air-1, a Kern County Sheriff’s helicopter, United States Attorney Benjamin B. Wagner announced.
The sentence follows Rosas’s guilty last fall. According to court documents, Rosas struck and tracked Air-1 with a green laser pointer during the evening hours. As a result, the pilot experienced glare, flash blindness, significant loss of night vision, watering eyes, and eye pain and was forced to divert attention from assisting in the search for a robbery suspect.
“Pointing a laser at any aircraft is a reckless action which has potential to cause a catastrophic incident affecting both the air crew and community. In this case, the airmen were impaired by the laser but were able to safely divert from the planned operation,” said Special Agent in Charge Monica M. Miller of the FBI Sacramento field office. “Due to the risk to public safety, anyone who witnesses an individual shining a laser at aircraft or any vehicle should immediately report the activity to law enforcement to protect the safety of the community.”
“As this sentence makes clear, Mr. Rosas’ actions put the life of this aircraft’s pilot and the safety of the general public in peril,” said Ryan Spradlin, special agent in charge for HSI San Francisco, which oversees HSI’s enforcement efforts throughout northern California. “In addition to the jail term, this defendant will face removal to his native Mexico upon completion of his prison time. HSI will continue to use its resources and unique enforcement authorities to protect our communities from those who engage in criminal activity that endangers our citizens.”
Reports of laser attacks on aircraft have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. Last year, there were 7,702 laser strikes, or 21.16 laser incidents per day, reported in the United States. In the Eastern District of California, which encompasses 34 counties, including Kern County, in the eastern portion of California, there were 214 reported incidents. So far this year, the Federal Aviation Administration reports over 24 laser incidents per day nationwide. Aviators, such as helicopter pilots, are particularly vulnerable to laser illuminations when conducting low-level flight operations at night.
This case was the product of an investigation by the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Kern County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar prosecuted this case.