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Tuesday 8 December 2015
John Harper Farmer Sentenced to 210 Months in Federal Prison for Sex Trafficking MinorsRead the Press Release
CHATTANOOGA, Tenn. - On Dec. 3, 2015, John Harper Farmer, 40, of Chattanooga, was sentenced by the Honorable Curtis L. Collier, U.S. District Judge, to serve 210 months in federal prison for sex trafficking of children. Farmer was also ordered to complete a 500 hour mental health program. Additionally, upon his release from prison, he will be supervised for five years by U.S. Probation.
Farmer pleaded guilty in May 2015 to one count of a five-count indictment charging offenses related to sex trafficking. This offense carried a mandatory minimum sentence of 10 years. He admitted to directing a minor and an adult co-defendant to meet a client at a Chattanooga hotel with the expectation that both females would engage in a commercial sex act. However, the client turned out to be an undercover police officer, and the encounter resulted in Farmer’s arrest and prosecution. Upon his arrest, police officers recovered a second minor with Farmer. Farmer’s co-defendant is scheduled for sentencing in March 2016.
FBI Special Agent in Charge, Edward W. Reinhold said “This investigation is but one example of the close working relationship the FBI enjoys with our law enforcement partners in combating the ever increasing threats to our nation. Human Trafficking represents some of the worst in human behavior, especially when it deals with the most vulnerable of our society, our children. The FBI, along with our local, state, and federal partners will continue to aggressively attack this problem.”
“Human trafficking is a form of modern-day slavery that Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with the FBI and our state and local law enforcement partners,” said Special Agent in Charge of HSI New Orleans Raymond R. Parmer Jr. “That this particular criminal took his depravity even further to sexually exploit children for profit makes this case especially egregious and illustrates why HSI will continue to investigate and seek prosecution of these criminals while also ensuring the victims of this terrible crime are rescued and get the care they need.” Parmer oversees a five-state area of operations to include Tennessee, Alabama, Arkansas, Louisiana and Mississippi.
This case was investigated by the Federal Bureau of Investigation; Homeland Security Investigations; and Chattanooga Police Department. Assistant U.S Attorney Jay Woods represented the United States.
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Jackson County Man Sentenced to 720 Months in Prison for Producing Child PornographyRead the Press Release
PANAMA CITY, FLORIDA – Charles Heath Stewart, 43, of Grand Ridge, Florida, was sentenced yesterday to 720 months in prison for producing child pornography. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
Following a five-day trial, the jury convicted Stewart on August 21, 2015, after the government presented evidence that, on three occasions, in September, October, and November 2013, Stewart knowingly produced child pornography when he coerced a child to engage in sexually explicit conduct with Stewart for the purpose of creating a visual depiction. The evidence proved that, on countless occasions, Stewart used physical force and death threats to coerce the child into engaging in sexually explicit acts with Stewart while he videotaped the acts using his cellular telephone. Additionally, evidence presented at trial showed that Stewart knowingly possessed child pornographic images.
"Children deserve to feel safe in their homes and communities, and these despicable acts ruin lives at an early age," said Acting United States Attorney Christopher P. Canova. "This prison sentence sends a strong message to child predators that my office and our law enforcement partners are committed to pursuing, prosecuting, and providing justice to those who target innocent children."
"While no jail sentence is long enough to erase the damage he has done to his victim, Charles Stewart will have the next 60 years to reflect on the pain and suffering he has caused," said Susan L. McCormick, special agent in charge of HSI Tampa. "Child pornography memorializes the sexual abuse of a child. We can only hope that this sentencing brings some comfort to the victim and that he will never again harm another child."
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, the Florida Department of Law Enforcement, and the Jackson County Sheriff’s Office, whose joint investigation led to the conviction in this case. The case was prosecuted by Assistant United States Attorney Kathryn D. Risinger.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Hobbs Man Pleads Guilty to Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Ruben Cantu, 43, of Hobbs, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to being a felon in possession of a firearm and ammunition. Under the terms of his plea agreement, Cantu will be sentenced to 15 years in federal prison followed by a term of supervised release to be determined by the court.
U.S. Attorney Damon P. Martinez said that Cantu was being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Lea County, under this initiative.
Cantu was arrested on July 7, 2014, on an indictment charging him with two counts of being a felon in possession of a firearm and ammunition. The indictment alleged that Cantu committed the crimes on March 5, 2014, in Lea County, N.M. At the time, Cantu was prohibited from possessing firearms and ammunition because he previously had been convicted of a marijuana trafficking crime.
During today’s proceedings, Cantu pled guilty to the indictment and admitted that on March 5, 2014, he was in possession of a firearm and multiple rounds of ammunition. He further acknowledged that he was prohibited from possessing firearms or ammunition based on his status as a convicted felon.
In entering the guilty plea, Cantu reserved the right to appeal from an order of the court denying his motion to suppress evidence, including the firearms and ammunition at issue in the case, seized pursuant to a state search warrant. He remains in federal custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Roswell office of the FBI, the Lea County Drug Task Force and the Hobbs Police Department. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Harrisburg Man Sentenced to 4 Years in Prison for Five Bank Robberies in Pennsylvania and New JerseyRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Harrisburg man was sentenced to 4 years imprisonment by U.S. District Court Judge Yvette Kane in Harrisburg for committing five bank robberies in two states.
According to United States Attorney Peter Smith, Dylan Blum, age 22, previously pled guilty to the December 9, 2014 robbery of the Mid Penn Bank on North Front Street in Harrisburg in which $1,358 was stolen. Blum was also charged in July 2015 with the robberies of four additional banks in December of 2014 and January of 2015 in Northampton County, Pennsylvania and in New Jersey. Blum passed a threatening note to tellers during three of those robberies. He attempted to rob another bank but was prevented by employees from entering that bank. Blum made off with a total of $5,788 from the three banks he was able to rob. Blum turned himself in to the Harrisburg Police department on January 3, 2015 and remains in custody.
Blum was sentenced to 4 years imprisonment for each robbery with the sentences to be served concurrently. Judge Kane also ordered Blum to make restitution to the banks he robbed in the amount of $7,146.
The case was investigated by the Harrisburg Police Department and the Federal Bureau of Investigation. Assistant United States Attorney William A. Behe prosecuted the case.
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Gila River Man Sentenced to 14 YearsRead the Press Release
PHOENIX – Yesterday, Joseph Troy Williams, 38, of Coolidge, Ariz., a member of the Gila River Indian Community, was sentenced by U.S. District Judge John Tuchi to 168 months in prison to be followed by lifetime supervised release. Williams had previously pleaded guilty to two counts of sexual abuse of a minor. All victims were members of varied Indian Communities and the abuse occurred on the Gila River Reservation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-1584-PHX-JJT
RELEASE NUMBER: 2015-119_Williams
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Galax Man Sentenced to 120 Months in PrisonRead the Press Release
ABINGDON, VIRGINIA – Yesterday in the United States District Court for the Western District of Virginia in Abingdon, a Galax, Va., man was sentenced to 120 months in Federal Prison for knowingly failing to update his sex offender registration.
Juan Elias Lara, 43, of Galax, Va., previously pled guilty to one count of failing to register and update his registration as required by the Sex Offender Registration and Notification Act (SORNA). Lara had been required to register under SORNA by virtue of his 2009 felony conviction in Grayson County, Virginia Circuit Court for aggravated sexual battery. In District Court yesterday, Lara was sentenced to 120 months of federal incarceration and five years of supervised release thereafter. Lara will also be required to register as a sex offender following his release from imprisonment.
In sentencing Lara to the maximum term of imprisonment provided under the statute, United States District Judge James P. Jones noted Lara had previously admitted to killing two people and having sexual relations with several minors.
The investigation of the case was conducted by the United States Marshals Service, the Virginia State Police, and the Lake Jackson, Texas Police Department. Special Assistant United States Attorney Kevin Jayne prosecuted the case for the United States.
Fort Worth Couple Sentenced for Roles in Methamphetamine Trafficking ConspiracyRead the Press Release
FORT WORTH, Texas — Two defendants who pleaded guilty in August to felony offenses stemming from their respective roles in a methamphetamine distribution conspiracy were sentenced this morning, by U.S. District Judge Reed C. O’Connor, to lengthy federal prison sentences, announced U.S. Attorney John Parker of the Northern District of Texas.
Gabriel Farias-Lopez, 37, who pleaded guilty to one count of conspiracy to possess methamphetamine with the intent to distribute, was sentenced to 210 months in federal prison. Co-defendant Kimberly Robles-Rueda, 20, who pleaded guilty to one count of conspiracy to commit money laundering, was sentenced to 84 months in federal prison.
According to documents filed in the case, Farias-Lopez received kilogram-quantities of methamphetamine from a source in Mexico that he subsequently distributed in the Dallas – Fort Worth, Texas, area. Robles-Rueda collected the drug proceeds for the methamphetamine that Farias-Lopez distributed. She also received instructions from a person in Mexico as to how to wire or otherwise return the drug proceeds to the person in Mexico. The instructions she received usually involved depositing or wiring money into various bank accounts in $1,000-increments. Then, Robles-Rueda or another person would wire or transfer the money to bank accounts in Mexico.
Pursuant to a traffic stop conducted by law enforcement in Fort Worth on June 23, 2015, Farias-Lopez and Robles-Rueda were found to be in possession of approximately four kilograms of methamphetamine ice, and Robles-Rueda had nearly $8,000 cash in her purse. Then, during the subsequent execution of a search warrant at their shared home on Travis Avenue in Fort Worth, law enforcement found liquid methamphetamine and methamphetamine ice, with a combined weight of approximately three kilograms, and $25,000 in cash.
The Drug Enforcement Administration investigated. Assistant U.S. Attorney Shawn Smith was in charge of the prosecution.
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Fort Hall Man Pleads Not Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
POCATELLO – Duncan Tendoy, 51, of Fort Hall, Idaho, appeared U.S. District Court today and pleaded not guilty to a charge of possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. A jury trial is scheduled before Chief U.S. District Judge B. Lynn Winmill on February 16, 2016. Tendoy was indicted by the federal grand jury in Pocatello on November 24, 2015.
The indictment alleges that on August 9, 2015, Tendoy possessed methamphetamine with the intent to distribute it, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C).
The charge of distribution of methamphetamine is punishable by up to 30 years in prison, a maximum fine of $2,000,000, and at least six years of supervised release.
The case was investigated by the Fort Hall Police Department and the Bingham County Sheriff’s Office.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Treasurer of Fraternal Order of Police Pays $306,577 in Restitution to VictimsRead the Press Release
TULSA, Okla.— Due to the aggressive collection efforts of the Northern District’s Financial Litigation Unit, Lorna Jean Vanlandingham, the former Treasurer of the Fraternal Order of Police Oklahoma State Lodge and the Tulsa Fraternal Order of Police, has been forced to repay $306,577.24 in restitution, fine and special assessment fees, announced United States Attorney Danny C. Williams Sr.
Lorna Jean Vanlandingham, was sentenced to serve 33 months in prison on June 22, 2015, for embezzling from Lodge bank accounts. United States District Court Chief Judge Gregory K. Frizzell ordered Vanlandingham to pay restitution in the amount of $291,127.59, plus interest, a $15,000 fine, and a $200 special assessment fee.
The Financial Litigation Unit (FLU) is the collections component of the Civil Division in the U.S. Attorney’s Office. FLU has the primary responsibility of handling debt collection and affirmative claim litigation. Assistant United States Attorney Scott Woodward, assisted by Libbi Felty, a Paralegal, and Celeste Allen, a Legal Assistant, were responsible for the collection of the full amount of restitution, fine and special assessment in this case.
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Former RMV Clerk Sentenced for False RMV Document ConspiracyRead the Press Release
BOSTON – A Boston man, who previously worked as a Massachusetts Registry of Motor Vehicles (RMV) clerk, was sentenced today in U.S. District Court in Boston for conspiring to produce false RMV identification documents.
Rommer Valdez, 39, was sentenced by U.S. District Court Judge William G. Young to five months in prison, three years of supervised release, the first five months of which is to be served in home confinement, forfeiture of $26,200, and a fine of $3,000. In July 2015, Valdez pleaded guilty to one count of conspiring to produce a false identification document.
The RMV issues identification documents such as drivers’ licenses, learners’ permits and state identification cards. To prevent people from obtaining a fraudulent identification document, the RMV has systems to verify whether applicants’ identity information is accurate. Valdez, who worked as a clerk at the RMV office in Watertown, was responsible for verifying that applicants’ identity documents were valid.
From December 2010 to December 2012, Valdez participated in a conspiracy to help the customers obtain authentic RMV-issued identification documents that bore their own pictures but other people’s identity information. Other co-conspirators obtained real identification documents for customers to give the RMV as proof of (false) identity. Before sending certain customers to the RMV with this proof, the co-conspirators sent Valdez the names, Social Security numbers and dates of birth for these identities and asked him to verify whether this information would pass the RMV’s checks. Valdez checked the information and reported back to the co-conspirators. If the information passed, the co-conspirators provided the documents to a customer who later presented them to the RMV (although not necessarily at Valdez’s station) to obtain an identification document in that false identity.
On other occasions, the co-conspirators sent customers with false identification documents directly to Valdez at the RMV. When Valdez spotted such a customer, he signaled the customer to approach and submit his or her application and proof of (false) identity. Valdez then processed the application, knowing that it was fraudulent. He also let the customer or someone else helping the customer take whatever tests the RMV required, all using the false identity.
Valdez checked identity information at least 136 times and accepted false proof of identity from customers at least 42 times, in exchange for bribes totaling approximately $26,000.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; David Hall, Special Agent in Charge of U.S. Department of State, Bureau of Diplomatic Security Services, Boston Field Office; and Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation, New York Regional Office, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Scott L. Garland, of Ortiz’s Criminal Division.
Former Insurance Salesman Pleads Guilty to Tax EvasionRead the Press Release
BOSTON – A former insurance salesman pleaded guilty today in U.S. District Court in Boston to tax evasion in connection with the theft of more than $470,000 that he stole from three clients.
Paul Disidoro, 64, of Georgetown, Mass., pleaded guilty to attempting to evade taxes. U.S. District Judge William G. Young scheduled sentencing for March 8, 2016.
For many years, Disidoro operated an insurance business in Massachusetts, including from 2007 through 2010 when he also acted as a financial adviser for some clients. During that period, Disidoro stole more than $470,000 from three clients, used the money for his personal benefit, concealed this income from his tax preparer, and failed to report the embezzled funds on his federal income tax returns. In so doing, Disidoro evaded $144,000 in taxes.
The charge of tax evasion provides a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater. 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; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.
Former Illinois State Representative Connie Howard Sentenced for Fraud SchemeRead the Press Release
Springfield, Ill. – U.S. District Judge Richard Mills today sentenced former Illinois State Representative Constance ‘Connie’ Howard to three months in prison for fraud committed by Howard when she was a state representative. Following her release from the federal Bureau of Prisons, Howard, 72, was ordered to serve three months home confinement, the first three months of a two-year term of supervised release. Howard was also ordered to pay restitution to two organizations: $15,900 to the Chicago Urban League and $12,450 to the Black United Fund, Chicago.
In July 2013, Howard waived indictment and admitted that from 2003 to 2007, she solicited and obtained approximately $76,700, representing that the funds would be used to provide scholarships. In fact, no more than five scholarships, totaling $12,500, were issued, and approximately $28,000 of the funds raised was converted to her personal and political use. Misuse of the funds included expenses associated with the promotion of her campaign, and campaign events, and to benefit one of her assistants.
At the time of the fraud, Howard was a member of the Illinois House of Representatives. She served as Chairwoman of the Computer Technology Committee for the House of Representatives and the Eliminate the Digital Divide Advisory Committee of the Illinois Department of Commerce and Economic Opportunity. Howard’s legislative and campaign offices were located in Chicago.
In 2003, Howard created an organization known as “Tee Off for Technology,” (TOFT), and established the “Constance A ‘Connie’ Howard Computer Technology Scholarship Fund, to provide scholarships to persons in need seeking a degree in computer science and related fields. Howard established an annual event in July 2003, known as the “Tee Off for Technology Celebrity Golf Outing.” Howard represented that the purpose of the organization and the annual golf outing was to be a fundraising mechanism for the scholarship fund. Because TOFT was not a tax-exempt organization, it partnered with tax-exempt organizations to serve as its fiscal agent to ensure that donations to TOFT and the scholarship fund were tax deductible.
Assistant U.S. Attorney Timothy A. Bass prosecuted the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The investigation was conducted by participating agencies of the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force including the U.S. Postal Inspection Service, Chicago Division; the Internal Revenue Service Criminal Investigations; and, the Illinois Secretary of State Office of Inspector General.
Former Executive Director of Johnstown Redevelopment Authority Sentenced to Prison for Public CorruptionRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., has been sentenced in federal court to 42 months in prison and three years’ supervised release on his conviction of federal extortion and bribery laws.
United States District Judge Kim R. Gibson imposed the sentence on Ronald W. Repak, age 64.
According to information presented to the court, Repak, while serving as Executive Director of the Johnstown Redevelopment Authority (JRA), engaged in conduct in violation of the Hobbs Act for extortion under color of official right, and engaged in acts of federal program bribery. Specifically, in exchange for Repak’s official actions and influence as the Executive Director of the JRA to facilitate the award of JRA contracting work, Repak solicited and obtained from local contracting firms a new roof for his personal residence and building demolition and grading services at Evolution Gym, his son’s privately-owned business. He was convicted at trial of two counts for extortion under color of official right and two counts of federal program bribery relative to the roof and the Evolution Gym. Mr. Repak was found not guilty of a charge of extortion under color of official right and federal program bribery in relation to multiple Pittsburgh Steelers football game tickets.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Repak.
Former Charlotte Resident Sentenced to 24 Months in Prison on Securities Fraud and Wire Fraud Conspiracy ChargesRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad, Jr. sentenced Michael Francis Egan, III, 33, formerly of Charlotte, to 24 months in prison and two years of supervised release on conspiracy to commit securities and wire fraud charges, in connection with a fraudulent investment scheme, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Conrad also ordered Egan to pay more than $300,000 as restitution to his victims.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to filed court documents and today’s sentencing hearing, from August 2007 to February 2012, Egan carried out a fraudulent investment scheme by inducing his victims to enter into various fictitious business and investment contracts. According to court records, Egan promised his investor victims that he would invest their money in various projects, including Halloween and holiday themed attractions, land development, and television shows, among others. To further induce his victims, Egan lied about his financial background and personal assets and about his professional connections and investments. For example, Egan falsely told his victims he was a close associate and friend of the CEO of a major bank, a close associate or employee of a well-known investment mogul and that he owned a percentage of well-known hotels and casinos in Las Vegas. Instead of investing the victims’ money as promised, Egan used it to fund his lifestyle and to pay for personal expenses such as rent, his car lease, groceries and pet care. According to court records, Egan defrauded more than 14 victims of over $300,000. Egan pleaded guilty to the charges in April 2015.
At today’s sentencing hearing, Judge Conrad described Egan’s conduct as “a long-term fraud scheme with numerous acts of deception and fraud.” Judge Conrad also noted the defendant’s “predatory nature of the stealing of money […] considering the amount of money, the amount of victims […] and the defendant’s cunning on innocent victims.”
Egan will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The FBI investigated the case. The prosecution was handled by Assistant U.S. Attorney Kevin Zolot of the Western District of North Carolina.
Former Buffalo Teacher's Aid Indicted for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Buffalo, Mo., elementary school teacher’s assistant was indicted by a federal grand jury today for producing and possessing child pornography.
Dalton Cole Sherman, 19, of Buffalo, was charged in a three-count indictment returned by a federal grand jury in Springfield, Mo. Sherman was a teacher’s assistant at the DA Mallory Elementary School in Buffalo at the time of the offense.
Today’s indictment charges Sherman with two counts of child sexual exploitation. Sherman allegedly used two minors, on two separate occasions on June 11, 2015, to produce child pornography. The minors are identified in the indictment as “Jane Doe” and “John Doe.”
Sherman is also charged with one count of possessing child pornography.
The federal indictment also contains a forfeiture allegation, which would require Sherman to forfeit to the government any property used to commit the alleged offenses, including a Samsung pen camera and a Nook tablet.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Dallas County, Mo., Sheriff’s Department, the State Technical Assistance Team and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Executives of Swiss and Las Vegas Companies Convicted in International Investment Fraud SchemeRead the Press Release
A federal jury in Las Vegas convicted two men of conspiracy, wire fraud and securities fraud yesterday for their roles in an approximately $10 million international investment fraud scheme involving numerous victims.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Laura A. Bucheit of the FBI’s Las Vegas Field Office made the announcement.
Anthony Brandel, 48, of Las Vegas, and James Warras, 69, of Waterford, Wisconsin, were each convicted of one count of conspiracy, nine counts of wire fraud and eight counts of securities fraud following a five-day trial before Senior U.S. District Judge Kent J. Dawson of the District of Nevada. The defendants are scheduled to be sentenced on March 2, 2016, by Judge Dawson.
According to evidence presented at trial, Brandel and Warras conspired with others in the United States and Switzerland to promote investments and loan instruments that they knew to be fraudulent. The conspirators told victims that, for an up-front payment, a Swiss company known as the Malom (Make A Lot of Money) Group AG would provide access to lucrative investment opportunities and substantial cash loans. To effectuate this scheme, the defendants fabricated bank documents purporting to show that the Malom Group had large amounts of money in several European financial institutions. And as part of an effort to defraud an investor who held an equity stake in a corporation that had filed for bankruptcy, Warras submitted a sworn affidavit to the U.S. Bankruptcy Court in the District of New Hampshire in which he made false statements about the value of certain bonds that the defendants promoted to the investor.
Brandel and Warras were charged together with four other defendants, including Joseph Micelli, 62, a former California attorney who pleaded guilty to conspiracy to commit wire fraud and securities fraud and is set to be sentenced on Feb. 23, 2016. The remaining defendants are either at large or awaiting extradition from other countries.
The FBI’s Las Vegas Field Office investigated the case. Assistant Chief Brian R. Young and Trial Attorneys Melissa Aoyagi and Anna G. Kaminska of the Criminal Division’s Fraud Section are prosecuting the case with assistance from the Criminal Division’s Office of International Affairs and the U.S. Attorney’s Office for the District of Nevada. The Securities and Exchange Commission’s Enforcement Division, which referred the matter to the department and is conducting a parallel civil enforcement investigation, also provided valuable assistance.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit www.stopfraud.gov.
Eleven Defendants Facing Federal Drug and Firearms Charges in North Little RockRead the Press Release
North Little Rock, Ark.—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and North Little Rock Police Department (NLRPD) Chief Mike Davis, announced today the unsealing of three federal indictments charging 11 defendants with federal drug and firearms offenses in North Little Rock, and in particular in the Dixie Addition neighborhood. The indictments were returned by the Grand Jury on December 2, 2015, and were unsealed today following a coordinated roundup of the charged defendants.
The arrests resulted from an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, Operation Dixie Days, worked jointly with the FBI and NLRPD Narcotics Unit. During the course of the investigation in 2014 and 2015, law enforcement utilized three Title III court-authorized wiretaps, intercepting hundreds of drug-trafficking calls. Law enforcement agents conducted controlled buys totaling almost one kilogram (2.2 pounds) of crack cocaine. During the roundup, agents seized several ounces of crack cocaine, two stolen firearms, and more than $10,000 in cash.
Agents also executed a search warrant today at 924 E Street in the Dixie Addition, where they recovered some of the crack cocaine and cash. Based on the investigation, it is alleged that during 2014 and 2015, Harold Barbee, Byron Leavy, Yvette Foster, and others utilized 924 E Street as a “trap house,” meaning a location for storing and selling cocaine and crack cocaine. During the daytime hours, customers entered the front door of the house to buy cocaine and crack cocaine. During the evening hours, customers purchased cocaine and crack cocaine by knocking on a back bedroom window. On one occasion in October 2015, after midnight, officers observed 14 individuals approach the window of 924 E Street to buy drugs in the span of an hour.
“The Dixie Addition area of North Little Rock is filled with hard-working, law-abiding citizens; unfortunately, crack cocaine and drugs have plagued this area for a long time,” Thyer said. “Through Operation Dixie Days, the FBI and NLRPD have worked to rid that community of the violent drug distributors that plague that neighborhood. We hope the peaceful neighbors of the Dixie Addition will rest better tonight knowing both that their community is safer and that federal and state authorities will continue their law enforcement efforts in Dixie Addition and throughout North Little Rock. Let today’s arrests be a sharp warning to drug dealers in the area—we will not tolerate you poisoning the streets where our children and law abiding, hard-working citizens reside.”
The defendants arrested today will appear before U.S. Magistrate Judge Joe J. Volpe on December 9, 2015, at 3:00 p.m. for plea and arraignment. One defendant was already in state custody, and will appear before Judge Volpe at 2:00 p.m. on December 15, 2015. Two defendants, Dexter Mack and Adrion Crawford, are now fugitives. Most of the defendants are residents of North Little Rock (see below for complete list of defendants and charges).
“Today’s arrests are confirmation of our dedication to make an impact on drug crime in the state of Arkansas, specifically today, in the Dixie area,” stated David Shepard, Assistant Special Agent in Charge of the Little Rock FBI. “We appreciate the determined efforts of the United States Attorney’s Office and the North Little Rock Police Department.”
“North Little Rock Police Department is grateful for the spirit of cooperation with the FBI and U.S. Attorney’s Office to bring closure to drug sales in the Dixie community,” Chief Davis said. “North Little Rock Police will remain proactive in this community to ensure a peaceful lifestyle for its residents.”
The counts in today’s unsealed indictments include conspiracy to distribute and possess with intent to distribute cocaine and crack cocaine, distribution and possession with intent to distribute cocaine and crack cocaine, possession of a firearm in furtherance of a drug trafficking crime, and use of a telephone to facilitate a drug trafficking crime.
The investigation was conducted by FBI and NLRPD. The cases are being prosecuted by Assistant U.S. Attorneys Julie Peters and Hunter Bridges. An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty. See Attachment 1 for potential penalties. The defendants charged include:
Case No. 4:15CR00302 BRW:
HAROLD BARBEE, aka BOP, age 50, of North Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Crack Cocaine and Cocaine
Distribution of Crack Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
BYRON NEAL LEAVY JR., aka LIL RED, age 24, of North Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Crack Cocaine and Cocaine
Distribution of Crack Cocaine and Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
DAMIEN BANK, aka D, age 33, of North Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Crack Cocaine and Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
YVETTE FOSTER, aka YVETTE RHOTEN, age 50, North Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Crack Cocaine and Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
DEXTER MACK, aka D-MAC, age 43, of North Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Crack Cocaine and Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
Case No. 4:15CR00305 JLH:
DARNISHER HORN, aka D, age 27, of North Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Crack Cocaine and Cocaine
Distribution of Crack Cocaine
Possession of a Firearm in Furtherance of a Drug-Trafficking Crime
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
XAVIER BRIGHT, aka ZAY, age 27, of North Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Crack Cocaine and Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
DARIUS BROWN, age 27, of Scott
Conspiracy to Distribute/Possess with Intent to Distribute Cocaine
JUSTIN BURNETT, age 32, of McGehee
Conspiracy to Distribute/Possess with Intent to Distribute Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
CARL EUSEPPI, aka B, age 35, of Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
Case No. 4:15CR00304 JM:
ADRION CRAWFORD, aka AC, age 31, of North Little Rock
Distribution of Crack Cocaine
Statutory Penalties
Eastern District of California U.S. Attorney’s Office Collects over $121 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner announced today that the U.S. Attorney’s Office for the Eastern District of California collected over $121 million in civil and criminal actions, including forfeitures, in Fiscal Year 2015, which ended on September 30, 2015. Over $65 million was collected in criminal and civil actions handled solely by the U.S. Attorney’s Office for the Eastern District of California, including over $5.57 million in criminal actions and over $59.69 million in civil actions.
Additionally, the office worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $34.7 million in cases pursued jointly with these offices, almost all in civil actions. Collections in civil and criminal cases handled by the office, not including forfeitures, therefore totaled over $99.9 million.
Additionally, the U.S. Attorney’s office in the Eastern District of California, working with partner agencies and divisions, collected over $21 million in asset forfeiture actions in FY 2015. Total civil and criminal collections including forfeitures, therefore, exceeded $121 million. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Loretta E. Lynch announced on December 3, 2015, that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending September 30, 2015. The more than $23.1 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
“This past year was the second-highest in the history of this office in terms of total collections for the taxpayer,” said U.S. Attorney Wagner. “Every year, attorneys in this office recover far more than it costs to operate the office, while stripping criminals and wrongdoers of ill-gotten gains, proceeds of fraud or false claims, and securing restitution for victims.”
Major recoveries by the U.S. Attorney’s Office for the Eastern District of California in civil cases this year included a $44 million settlement with the Iron Mountain records management company and a $2 million settlement with Composite Engineering Inc., both False Claims Act cases relating to pricing and costs in federal contracts. Quest Diagnostics paid $1.79 million to settle claims that it violated the False Claims Act by submitting duplicative claims to Medicare for certain venipuncture services and diagnostic tests and certain panel tests. In two cases alleging that doctors improperly billed Medicare for drugs they administered that were not approved by the FDA, the doctors paid a total of $1.3 million. Sierra Pacific Industries paid $6 million in installment payments required under the terms of its settlement agreement in a large wildfire case that damaged National Forest lands, which was resolved in 2012.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
District Men Sentenced to Prison Terms for 2013 Killing in Southeast WashingtonRead the Press Release
WASHINGTON – Carlos Parks, 19, was sentenced today to 22 years in prison and Troy Robinson, 21, was sentenced to 15 years in prison for their roles in the slaying of a man outside a housing complex in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Parks pled guilty on July 22, 2015, in the Superior Court of the District of Columbia, to second-degree murder while armed for the death of Tywayne Thompson. The plea, which was contingent on the Court’s approval, called for 12 to 24 years of incarceration. Robinson pled guilty to the charge of voluntary manslaughter while armed for the same murder. His plea, also contingent on the Court’s approval, called for 10 to 15 years of incarceration. The Honorable Jennifer Anderson accepted the pleas today. Parks and Robinson, both of Washington, D.C., will be placed on five years of supervised release following their prison terms.
According to the government’s evidence, on June 24, 2013, at approximately 1:20 a.m., Parks and Robinson were outside in the Potomac Gardens Housing Complex in the 700 block of 12th Street SE. At that time, Parks and Robinson were each armed with semi-automatic pistols. A few minutes later, they approached Mr. Thompson, 25, who was also outside in the Potomac Gardens Housing Complex. They began to speak with him.
Robinson then began shooting at Mr. Thompson. At least one bullet from Robinson’s gun hit the victim. Parks then also began shooting at Mr. Thompson, and at least one bullet from Parks’s gun hit Mr. Thompson in his buttocks and exited through his abdomen. Mr. Thompson was taken by ambulance to a local hospital, where he died as a result of the wound from the shot fired by Parks through his buttocks and abdomen. Mr. Thompson was unarmed, and neither defendant was acting in self-defense.
In announcing the sentences, U.S. Attorney Phillips commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the First Police District of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Marcia Rinker, La June Thames, M. Laverne Forrest, David Foster, and Michael Hailey of the Victim/Witness Unit; former Paralegal Specialist Mia Beamon; Paralegal Specialist Sandra Lane; and Litigation Technology Specialist Leif Hickling. Finally, he praised the efforts of former Assistant U.S. Attorney Jonathan Kravis, who investigated and indicted the case, and Assistant U.S. Attorneys Michael Liebman and Christopher Bruckmann, who prosecuted the case.
Detroit man pleads guilty in Federal court to heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who participated in a heroin conspiracy entered a guilty plea today in federal court in Huntington, West Virginia, announced Unite States Attorney Booth Goodwin. Warren G. Howard, Jr., 24, of Detroit, pleaded guilty to distributing heroin.
During 2013, Howard conspired with others, including Kenneth E. Baxter, to distribute heroin which had been transported from Detroit to the Huntington area. On May 20, 2013, a confidential informant contacted Baxter to arrange a drug deal. Howard and Baxter met the informant in the parking lot of a Kroger located at 1st Street and 7th Avenue in Huntington. The informant entered Howard’s vehicle and Howard sold heroin to the informant.
Howard faces up to 20 years imprisonment and a $1 million fine when he is sentenced in federal court in Huntington on March 7, 2016.
Multiple individuals have been convicted of federal drug offenses as a result of the investigation, including Paul A. Roberts, who pleaded guilty in March of 2015 to maintaining a residence for the distribution of heroin, Dustin S. Barton, who pleaded guilty in August of 2015 to distributing heroin, and Sean L. Gist, who pleaded guilty in September of 2015 to conspiracy to distribute 100 grams or more of heroin.
Those sentenced to federal prison as a result of the investigation include Baxter, who was sentenced to seven years and three months, Coty E. Richardson, who was sentenced to five years and ten months, Ramone L. Wells who was sentenced to four years, and Pricilla Lee Dylan who was sentenced to two years and nine months.
The Huntington FBI Drug Task Force, United States Postal Service, West Virginia State Police, and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
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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Deming Man Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Andres Munoz, 59, of Deming, N.M., was sentenced today in federal court in Las Cruces, N.M., to 70 months in prison followed by four years of supervised release for his methamphetamine trafficking conviction.
Munoz and his co-defendant Guadalupe Romero, 38, also of Deming, were arrested in Dec. 2014, on a criminal complaint alleging conspiracy and possession of methamphetamine with intent to distribute. The complaint alleged that the pair committed the crimes on Dec. 18, 2014, in Luna County, N.M. According to the complaint, Homeland Security Investigations (HSI) executed a search warrant at the residence of Munoz and Romero and seized quantities of methamphetamine hidden throughout the residence. Munoz and Romero were subsequently indicted on March 18, 2015.
On July 9, 2015, Munoz pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering his guilty plea, Munoz admitted that on Dec. 18, 2014, he and Romero possessed approximately 226 grams of methamphetamine in a residence they shared. He also acknowledged that they intended to distribute the drugs.
Romero pled guilty on July 21, 2015, to a felony information charging her with possession of methamphetamine with intent to distribute, and admitted that on Dec. 18, 2014, she and Munoz jointly possessed approximately 226 grams of methamphetamine with intent to distribute. Romero was sentenced on Oct. 29, 2015, to 27 months in federal prison followed by two years of supervised release.
This case was investigated by the Deming office of HSI and was prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
Conway Man Indicted for Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Conway, Mo., man was indicted by a federal grand jury today for robbing Central Bank in Conway.
Jody L. Nave, 37, of Conway, was charged in an indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Nave on Nov. 24, 2015.
According to an affidavit filed in support of the original criminal complaint, Nave entered Central Bank, 602 W. Jefferson Ave., at approximately 10:14 a.m. on Nov. 12, 2015. Nave allegedly passed a note to a teller that read, “This is a robbery I have a gun but please don’t make me use it.” (sic) The teller handed over approximately $2,600 from her teller drawer, the affidavit says. Nave allegedly took the cash and left the bank.
Nave was located by law enforcement officers a short time later in Marshfield, Mo.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Conway, Mo., Police Department and the FBI.
Columbus Man Sentenced to 200 Months for Facilitating Prostitution, Gun ChargeRead the Press Release
COLUMBUS, Ohio – Carl R. Smith, Jr., 30, of Columbus, Ohio, was sentenced in U.S. District Court to 200 months in prison for transportation in interstate commerce for purposes of prostitution and possession of a firearm by a previously convicted felon. He was also sentenced to an additional 24 months for violating his existing supervised release, making his total sentence 224 months.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine and members of the Central Ohio Human Trafficking Task Force, which is part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission, including Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, Columbus Police Chief Kim Jacobs and Colonel Paul Pride of the Ohio State Highway Patrol announced the sentenced handed down yesterday by U.S. District Judge Michael H. Watson.
According to court documents, during a traffic stop in July 2013 in which Smith was driving, law enforcement officers discovered an adult female passenger had a plastic baggie containing cocaine base and heroin. Based on information previously obtained through surveillance and confidential sources, it was believed that Smith was involved in directing the prostitution activities of the passenger and other females and that he had used the passenger during the traffic stop to conceal his supply of cocaine base and heroin.
Members of the Central Ohio Human Trafficking Task Force and the Columbus Police Department conducted an investigation of Smith’s suspected criminal activities between July 2013 and February 2014. A search warrant was executed at Smith’s residence in February 2014. While searching the residence, officers discovered Smith, who had been previously convicted of four felony offenses, was carrying a pistol. Numerous additional firearms and narcotics were seized from Smith’s residence during the execution of the search warrant.
During the course of the investigation leading up to the execution of the search warrant, officers conducted electronic and physical surveillance of Smith’s activities. During this surveillance, officers observed that Smith frequented various hotels in the Columbus, Ohio area where he had prostitutes working for him. Continued surveillance revealed that Smith also facilitated travel out of state to Pittsburgh and New York City, where his prostitutes engaged in sexual activity for hire. Smith attracted clients/johns for his prostitution business by posting numerous advertisements in the escort section of the Internet site backpage.com.
“The circumstances surrounding the defendant’s offenses showed the defendant to be a master of manipulating, dominating and preying on the weak and vulnerable, and using those he brought under his control purely for his own financial benefit,” Assistant U.S. Attorney Heather A. Hill told the court. “At its core, this case involves the defendant’s dedication to his own bottom line: he sold human beings and maintained his supply of human chattel through violence and the threat of drug withdrawal.”
Smith pleaded guilty to transportation in interstate commerce for purposes of prostitution and possession of a firearm by a previously convicted felon in April.
U.S. Attorney Stewart commended the cooperative investigation by the Central Ohio Human Trafficking Task Force, as well as Assistant United States Attorneys Heather A. Hill and Salvador A. Dominguez, who are representing the United States in this case.
Colorado Man Pleads Guilty to Robbing Banks in Colorado and New Mexico in 2014 and 2015Read the Press Release
ALBUQUERQUE – John Allen Pierceall, 54, of Denver, Colo., pleaded guilty this morning in federal court in Las Cruces, N.M., to committing three banks robberies, two in Colorado and one in New Mexico, between Aug. 2014 and Aug. 2015.
Pierceall was arrested on Aug. 24, 2015, on a criminal complaint charging him with robbing the US Bank located at 901 East University Ave. in Las Cruces, on Aug. 24, 2015. According to the complaint, Pierceall robbed the bank by presenting a bank teller with a demand note stating that he was armed and would shoot if she did not comply with his demand for cash.
On Dec. 2, 2015, Pierceall was indicted in the District of Colorado, and charged with two counts of bank robbery. The indictment alleged that Pierceall robbed the Vectra Bank Colorado in Denver twice, once on Aug. 14, 2014 and again on Oct. 7, 2014.
During today’s proceedings, Pierceall plead guilty to a felony information charging him with three counts of bank robbery. In entering the guilty plea, Pierceall admitted that on Aug. 14, 2014, and Oct. 7, 2014, he robbed the Vectra Bank Colorado, and on Aug. 24, 2015, he robbed the US Bank in Las Cruces. Pierceall further admitted that he committed all three bank robberies by handing the teller a demand note which stated that he was armed and would shoot if his demands for cash were not met.
In his plea agreement, Pierceall waived his right to have the Colorado bank robberies prosecuted in the U.S. District Court for the District of Colorado, and agreed to have a federal judge in the District of New Mexico accept his guilty plea on those crimes.
At sentencing, Pierceall faces a statutory maximum penalty of 20 years in federal prison followed by up to three years of supervised release. Pierceall remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI, the Las Cruces Police Department and the Denver Police Department with assistance from the U.S. Attorney’s Office for the District of Colorado. Assistant U.S. Attorney Marisa A. Lizarraga is prosecuting the case.
Collierville Man Pleads Guilty in Two Separate Fraud Schemes Totaling More Than $2 MillionRead the Press Release
Memphis, TN – A Collierville man has pled guilty to executing two separate fraud schemes that defrauded victims of more than $2 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to the charging document, between December 2012 and October 2014, Anthony Davis, 44, of Collierville, owned ADLM Automotive, Inc., a Mississippi-based wholesale automobile dealership that conducted business in Memphis. He used the company to promote a purported investment opportunity that ultimately defrauded investors of nearly $1.8 million.
During the aforementioned time period, Davis fraudulently told victims that they could purchase a Retail Installment Contract and Security Agreement (RICSA) from him through ADLM Automotive. He also told them that when he sold a vehicle to a customer and the customer financed any part of the purchase price, the customer would sign a RICSA, and an application for a title with the appropriate state (e.g., Tennessee, Arkansas, or Mississippi) agency responsible for issuing vehicle titles. Davis represented to the victims that they would have a perfected security interest in the vehicle which was the subject of the RICSA because their security interest would be noted on the Certificates of Title.
Davis told victims that monthly payments on the RICSAs would be collected by a Georgia-based company known as Vehicle Acceptance Corporation (VAC), and that each customer had signed an Automated Clearing House (ACH) payment form so that monthly payments would be automatically deducted from their bank account. Davis further represented that ADLM Automotive maintained an account with VAC and would direct VAC to route customers’ payments to the victims’ bank accounts. More so, Davis told the victims that if a customer defaulted and failed to make payments under the terms of the RICSA, ADLM Automotive would repurchase the non-performing loan, or give the victim the option of replacing the non-performing loan with a performing loan of equal or greater value.
Due to his fraudulent representations, Davis received investments from multiple victims. All along, Davis knew the RICSAs, customers, vehicles and titles did not exist.
According to the charging document, Davis executed a separate fraud scheme between January 2014 and August 2014. This scheme involved Davis searching for and obtaining Social Security Numbers to create fraudulent credit profiles. The credit profiles and other false and fraudulent identifying information were used to obtain credit to finance the purchase of vehicles. As a result of the scheme, Davis and co-conspirators fraudulently obtained and attempted to obtain credit to finance the purchase of approximately 16 vehicles. The losses associated with this scheme were more than $457,000.
On Tuesday, December 8, 2015, Davis pled guilty to two counts of wire fraud before U.S. District Judge John T. Fowlkes Jr.
For each count, Davis faces up to 20 years imprisonment and a fine of up to $250,000. Davis will also be ordered to pay restitution in the total amount of $1,763.829.50 to those victimized in the first scheme. He will be ordered to pay restitution in the total amount of $457,507.06 to those victimized in the second scheme.
Davis is scheduled to be sentenced by Judge Fowlkes on March 3rd, 2016.
The case was investigated by the U.S. Postal Inspection Service, U.S. Marshal’s Service, and the Social Security Administration – Office of Inspector General.
Assistant U.S. Attorney Carroll L. Andre III prosecuted this case on the government’s behalf.
Church Volunteer Sentenced for Possessing Child PornographyRead the Press Release
LAREDO, Texas – A former volunteer for New Visions Community Church has been ordered to federal prison following his conviction of possession of child pornography, announced U.S. Attorney Kenneth Magidson along with Mark Dawson, acting special agent in charge of Homeland Security Investigations (HSI) in San Antonio and Webb County Sherriff Martin Cuellar. Fidel Perales-Castillo, 44, a Mexican citizen residing in Laredo, pleaded guilty April 23, 2015.
Today, U.S. District Judge Marina Garcia Marmolejo took into consideration the fact that he possessed child pornography depicting children younger than 12 years of age and handed Perales-Castillo a 121-month sentence. Additional information was also presented today, including descriptions of the types and amount of images possessed and a victim impact statement. In handing down the sentence, Judge Marmolejo stated that Perales-Castillo should apologize first and foremost to the victims in this case and commented on the continued victimization they suffer when people such as Perales-Castillo view and share child pornography. Perales-Castillo was further ordered to pay $5,431.01 in restitution to a known victim and will be subject to 20 years of supervised release, which includes the provision of registering as a sex offender. Perales-Castillo, a Mexican citizen, is also subject to deportation following his prison term.
Perales-Castillo was encountered by an undercover investigator in a peer-to-peer file sharing network where he had 10 files of suspected child pornography available for download. Five of those videos were successfully downloaded and found to contain child pornography. Some of the images and videos involved children under the age of 12.
A search warrant was executed on Perales-Castillo’s home, at which time they seized several computers and storage devices. Perales-Castillo confessed that he had been downloading and viewing child pornography Via the internet. He further admitted that he had a particular interest in seven-year-old girls, but denied ever physically harming a child.
Perales-Castillo will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The arrest of Perales-Castillo was a result of Operation Child Guardian, which was launched by the Webb County Sheriff’s Office in 2009. The success of these investigations have put dozens of suspected child predators behind bars.
This case, prosecuted by Assistant U.S. Attorney Sarah Ellison, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Carlsbad Man Sentenced to Federal Prison for Violating Narcotics Trafficking and Firearms LawsRead the Press Release
ALBUQUERQUE – Jacob J. Loredo, 29, of Carlsbad, N.M., was sentenced yesterday afternoon in federal court in Las Cruces, N.M., to 87 months in prison followed by four years of supervised release for violating the federal firearms and drug trafficking laws.
Loredo was arrested on Feb. 19, 2015, and charged in a criminal complaint with conspiracy to possess methamphetamine with intent to distribute in Eddy County, N.M. According to the criminal complaint, on that day, agents with the Pecos Valley Drug Task Force executed a search warrant on Loredo’s residence and vehicle where they seized ammunition, two firearms, $4,955.00 in cash, methamphetamine, scales and other drug paraphernalia. According to court documents, at the time, Loredo was prohibited from possessing firearms or ammunition because he previously had been convicted of possession of cocaine, a felony offense.
On June 2, 2015, Loredo pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute and being a felon in possession of a firearm. Loredo admitted that on Feb. 19, 2015, law enforcement officers recovered methamphetamine and two firearms from his residence in Carlsbad. Loredo further admitted that he had previously been convicted of possession of a controlled substance in Dec. 2008, and was prohibited from possessing firearms or ammunition.
As required by the terms of his plea agreement, Loredo was ordered to forfeit the $4,995.00 seized from this residence as well as the firearms and ammunition.
This case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force, and was prosecuted by Assistant U.S. Attorney Alexander B. Shapiro of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Cape Cod Man Sentenced for Heroin DistributionRead the Press Release
BOSTON – A Bourne, Mass. man was sentenced on Thursday, Dec. 3 for distributing heroin on Cape Cod.
Antone “Tank” Andrade, 35, was sentenced by U.S. District Court Judge Rya W. Zobel to 120 months in prison, four years of supervised release, and forfeiture of $10,890. Andrade pleaded guilty in August 2015 to conspiring to distribute, and to possess with intent to distribute, over 100 grams of heroin.
From May 2013 to August 2014, Andrade sold over 100 grams of heroin and 100 grams of cocaine to individuals cooperating in a government investigation. Andrade was recorded bragging about the quality of the heroin he was peddling on Cape Cod; specifically, he told a cooperating witness that his heroin came straight from Colombia, saying “that ain’t no Hyannis garbage.” Andrade was also recorded talking about another individual who was selling heroin on Cape Cod, stating that “dope fiends are falling out,” in an apparent reference to drug overdoses occurring in the Bourne and Falmouth areas.
Andrade was arrested in August 2014 along with another Cape Cod drug dealer, Duane Gomez, 40, of Falmouth, who was sentenced in September 2015 to 87 months in prison for conspiring to distribute more than 100 grams of heroin.
This case was brought as part of the federal response to the growing opioid abuse epidemic in Massachusetts and other New England states. Heroin is highly addictive, and users can quickly develop a tolerance, prompting them to seek higher potencies and greater quantities of the narcotic. Between 2000 and 2014, opioid overdose deaths have more than tripled with a spike in recent years in Massachusetts.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Barnstable County District Attorney Michael D. O’Keefe; Edward A. Dunne, Chief of the Falmouth Police Department; Dennis R. Woodside, Chief of the Bourne Police Department; Rodney Collins, Chief of the Mashpee Police Department; and James M. Cummings, Barnstable County Sheriff, made the announcement today. The case was investigated by the Cape Cod Drug Task Force and prosecuted by Assistant U.S. Attorneys William F. Bloomer and Brian A. Pérez-Daple of Ortiz’s Criminal Division.
Bergen County, New Jersey, Man Charged in Alleged Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – A North Arlington, New Jersey, man will appear in federal court today to face charges that he fraudulently obtained hundreds of thousands of dollars from investors prior to high-profile initial public offerings (IPOs) and then used the funds for lavish personal expenses, U.S. Attorney Paul J. Fishman announced.
Omar Hafez, 23, is charged by complaint with one count of conspiracy to commit wire fraud. FBI special agents and U.S. Postal inspectors arrested Hafez last night. He is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the complaint unsealed today:
From July 2014 to December 2015, Hafez and others solicited funds from victim investors, purportedly to be invested in shares of various companies prior to their IPOs. As a result, the victims provided Hafez and others with hundreds of thousands of dollars. However, instead of purchasing shares in those companies, Hafez and the other conspirators used the funds for their own benefit.
Hafez and others created a number of entities through which they operated the scheme, including but not limited to: Lotus Global Wealth Management, Lotus Wealth Management, Lotus Global Capital Investments Corporation, Lotus Global Capital Partners LLC, Lotus Global LLC, Lotus Global Property Management Corporation, Lotus Global Holdings LLC (collectively the “Lotus Global Entities”) and O.P.I. Wealth Management Corporation. Hafez held himself out to be the Chief Executive Officer (CEO) of the Lotus Global Entities.
For example, in February 2015, Hafez told an individual referred to in the complaint as “Victim 1” that he was CEO of Lotus Global and had access to pre-IPO shares of high-profile companies, including an entity referred to in the complaint as “Company A,” a cloud communications company that allowed software developers to integrate voice, text and other communications services into mobile and web applications. Hafez represented that following Company A’s IPO, the value of the shares would increase significantly, providing Victim 1 with significant profits after Hafez sold the shares. As a result, Victim 1 sent Hafez a $100,000 check to purchase shares of Company A.
In March 2015 and April 2015, Hafez represented to Victim 1 that he could sell Victim 1 pre-IPO shares of an entity referred to in the complaint as “Company B,” an Internet domain registrar and web hosting company. Again, Hafez represented that following the company’s IPO, the value of the shares would increase significantly. As a result, Victim 1 sent Hafez a wire in the amount of approximately $300,000 for shares of Company B.
None of the approximately $400,000 provided by Victim 1 was used to purchase shares of Company A, Company B or any other pre-IPO company. Instead, Hafez and other conspirators used Victim 1’s money for personal expenses, including an $87,000 purchase at Prestige Motors – a luxury car dealership – as well as approximately $100,000 in cash withdrawals.
The wire fraud conspiracy count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Courtney A. Howard of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
If you believe you are a victim of or otherwise have information concerning this alleged scheme, you are encouraged to contact the FBI at 973-792-3000.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and, with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Defense counsel: Richard Coughlin Esq., Camden
Atlantic County, New Jersey, Tax Preparer Convicted of Tax FraudRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, tax preparer was convicted today of tax fraud for including fraudulent credits and deductions on federal tax returns for his clients in an effort to gain repeat business for himself, U.S. Attorney Paul J. Fishman announced.
Tinh Van Vo, 59, of Egg Harbor Township, New Jersey, was convicted of 10 counts of aiding and assisting in the preparation of false federal income tax returns following a two-week trial before U.S. District Judge Robert B. Kugler in Camden federal court. The jury deliberated two hours before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
Vo prepared and filed fraudulent U.S. Individual Income Tax Returns through his business, TVO Services in Atlantic City, New Jersey. The returns attached schedules for fictitious educational credits, charitable contributions, and job expenses the taxpayers were not entitled to take – all to generate fraudulently inflated refunds.
Each false tax return count carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing for Vo is scheduled for March 9, 2016.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty verdicts.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the Criminal Division in Camden, New Jersey.
Defense counsel: William J. Hughes Jr. Esq., Atlantic City, New Jersey
Artesia Man Sentenced to 84 Months in Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Sammie Joe Peralta, 39, of Artesia, N.M., was sentenced today in federal court in Las Cruces, N.M., to 84 months in prison for his methamphetamine trafficking conviction. Peralta will be on supervised release for four years after completing his term of incarceration.
Peralta was arrested on May 8, 2015, on a criminal complaint charging him with possession of methamphetamine with intent to distribute in Eddy County, N.M., on Jan. 20, 2015. On that day, the Pecos Valley Drug Task Force and the Probation and Parole Division of the New Mexico Corrections Department executed a search warrant on Peralta’s vehicle and seized approximately 280.84 grams of methamphetamine, drug paraphernalia and a loaded handgun. Court records reflect that in Jan. 2015, Peralta had an active bench warrant for his arrest for absconding from supervision.
On Aug. 17, 2015, Peralta pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering his guilty plea, Peralta admitted that on Jan. 20, 2015, he had an active bench warrant for his arrest for absconding from supervision. Peralta also admitted that on that day, a probation officer discovered approximately 280.84 grams of methamphetamine, which he intended to distribute to others, and a handgun in his vehicle.
This case was investigated by the Las Cruces office of the DEA, the Pecos Valley Drug Task Force and the Probation and Parole Division of the New Mexico Corrections Department, and was prosecuted by Assistant U.S. Attorney Selesia Lee Winston of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Airport Baggage Handler Pleads Guilty to Attempted Mail FraudRead the Press Release
NORFOLK, Va. – Donte Chandler, 24, of Norfolk, pleaded guilty today to charges relating to his theft of personal property from a passenger’s bag while working as a baggage handler at the Norfolk International Airport.
In a statement of facts filed with the plea agreement, while working as a baggage handler at the Norfolk International Airport, Chandler removed an iPad from checked baggage located in a secure area of the airport. The iPad belonged to a passenger who was an active duty service member and had been provided the iPad by the U.S. Navy as part of an intelligence class. After removing the iPad, Chandler called the sailor and told him that he had found and purchased the iPad on Craigslist for $200. The sailor offered Chandler $100 to mail the iPad back to him at his California address. Chandler agreed to the $100 offer and placed the iPad in the mail.
Chandler was indicted by a federal grand jury on Oct. 7, 2015. Chandler faces a maximum penalty of 20 years in prison when sentenced on March 16, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson.
This case was investigated by the FBI’s Norfolk Field Office with the assistance of Transportation Security Administration and U.S. Airways. Assistant U.S. Attorney Joseph E. DePadilla is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-128.
Monday 7 December 2015
Winfield Man Sentenced to Six Years for Distributing Child PornRead the Press Release
WICHITA, KAN. – A Winfield man was sentenced Monday to six years in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said.
Paul Bruce Jordan, Jr., 61, Winfield, Kan., pleaded guilty to two counts of distributing child pornography and one count of possessing child pornography. Prosecutors told U.S. District Judge J. Thomas Marten that Jordan used an Internet file sharing network to download child pornography and store it on a computer at his residence in Winfield. Using the same file sharing network, investigators for the Wichita Police Department and the Kansas Internet Crimes Against Children Task Force downloaded images of child pornography from Jordan’s compute
Grissom commended the Wichita Police Department, the Kansas Internet Crimes Against Children Task Force, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
Wendell Couple Sentenced on Drug and Firearm OffensesRead the Press Release
BOISE - Miguel Angel Osuna-Zavala, 42, and his wife Diane Osuna, 44, of Wendell, Idaho, were sentenced today to the Federal Bureau of Prisons for possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of drug trafficking, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge sentenced Miguel Angel Osuna-Zavala to 84 months in prison and ordered him to serve four years of supervised release following incarceration. Diane Osuna was sentenced to 60 months in prison and ordered to serve five years of supervised release following incarceration. Both defendants pleaded guilty on September 9, 2015.
According to court proceedings, on February 2, 2015, a search warrant was executed on the couple’s home in Wendell, Idaho. Inside a safe located in the master bedroom, which both defendants had access to, were a package of methamphetamine weighing approximately 65 grams, and a 9mm Sturm Ruger pistol, model P95. The pistol is registered in the name of Diane Osuna. Miguel Angel Osuna-Zavala also claimed the firearm was his. The officers also found baggies and a set of digital scales in the house. Other guns were found in the residence, as well, According to court documents, Diane Osuna would weigh out the drugs for Miguel to sell. Miguel Angel Osuna-Zavala is a Mexican national living illegally in the United States and may be subject to deportation after his prison term is completed. Diane Osuna is a U.S. citizen.
The case was investigated by the Gooding County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms. The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
United States Attorney’s Office Collects $16 Million in Fiscal Year 2015Read the Press Release
CEDAR RAPIDS, IA – United States Attorney Kevin W. Techau announced today that the Northern District of Iowa collected $16,332,696 million in the fiscal year ending September 30, 2015, more than twice the office’s direct budget. Monies collected are returned to the federal treasury and victims of crimes.
Civil collections come from the government pursuing money lost to fraud, overpayments, or other misconduct, or collection of fines imposed on individuals and/or corporations for violations of federal financial, health, safety, civil rights, and environmental laws. Criminal collections involve actions related to victim restitution, fines, and court costs.
The Breakdown
The total $16 million collection effort is made up of the following:
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$8,690,693 was collected in criminal actions, which included victim restitution, fines, and court costs; and
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$7,642,003 was collected in civil actions.These civil actions are cases in which the office, acting on its own or with other components of DOJ, obtained judgments and settlements and collected those judgments and settlements; or where the office collected monies from individuals who failed to pay financial obligations owed to the United States.
In measuring collections recovered in FY 2015, these figures necessarily include some cases that were resolved in previous years but the proceeds of which were collected in the fiscal year 2015.
The top criminal collection involves Austin “Jack” DeCoster, his son Peter DeCoster, and their company, Quality Egg LLC. The criminal case involved bribery of a public official, introducing a misbranded food into interstate commerce with intent to defraud, and introducing adulterated food into interstate commerce. Adulterated eggs produced and distributed by Quality Egg were linked to approximately 1,939 reported consumer illnesses in multiple states—a nationwide outbreak of salmonellosis that led to the August 2010 recall of millions of eggs produced by them. In addition to both DeCosters being sentenced to serve prison time and fined $100,000, their company was sentenced to pay a fine of $6.79 million.
The top civil collection for the Cedar Rapids Office resulted from a settlement with ResCare Iowa Inc., which agreed to pay $5.63 million to the United States and the State of Iowa to resolve allegations that it violated the False Claims Act by submitting false home healthcare billings to the Medicare and Medicaid programs.
United States Attorney for the Northern District of Iowa, Kevin W. Techau, reinforced the importance of these collections, indicating “The recovery of ill begotten funds for the federal treasury and for victims of crimes is a top priority. I am very proud of the office’s efforts to hold accountable those who wrongfully profit at the expense of the United States.”
DOJ Collections
Nationally, the Department of Justice (DOJ) collected $23.1 billion in civil and criminal actions in fiscal year (FY) 2015. The amount collected represents more than seven and a half times the approximately $2.93 billion of the department’s combined appropriations for the 94 United States Attorneys’ Offices and the main litigating divisions in that same period.
The 23.1 billion includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $16.2 billion in payments made directly to the Justice Department, and more than $6.8 billion in indirect payments made to other federal agencies, states and other designated recipients.
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U.S. Citizen Deported from Uganda to Face Counterfeiting Charges in Western PARead the Press Release
PITTSBURGH - A United States citizen has been deported from the Republic of Uganda and brought to the Western District of Pennsylvania to face charges of leading an international counterfeit currency operation headquartered in that African nation. The announcement was made today by David Hickton, U.S. Attorney for the Western District of Pennsylvania and Eric Zahren, Special Agent in Charge of the U.S. Secret Service – Pittsburgh Field Office.
Ryan Andrew Gustafson, aka Jack Farrel, aka Willy Clock, 28, is charged with conspiracy, conspiracy to launder money, and the passing and receiving of counterfeit money from December 2013 until December 2014. The indictment alleges more than $1.4 million in counterfeit Federal Reserve Notes have been seized and passed worldwide, both overseas and in the U.S. as part of this scheme.
Gustafson had been on trial in Uganda on a number of charges, including possessing counterfeit money. He was deported Dec. 3 and arrived in Pittsburgh on Friday evening. He will be presented before Chief U.S. District Magistrate Maureen Kelly today at 2:30 p.m. for an Initial Appearance. The case is assigned to United States District Judge Mark R. Hornak.
“Identifying, charging and returning Ryan Gustafson to the United States from Uganda required extensive cooperation among diverse international law enforcement partners and expert coordination among the Secret Service, Federal Bureau of Investigation, Homeland Security Investigations and the U.S. Postal Inspection Service,” stated U.S. Attorney Hickton. “As a result, a multimillion dollar international cyber counterfeiting scheme has been disrupted and its principal will face justice on American soil. This investigation demonstrates our relentless resolve to identify cyber criminals overseas and bring them back to the United States to be tried for their crimes.”
“This international counterfeit currency investigation and subsequent arrests illustrate Secret Service expertise in safeguarding the Nation’s financial infrastructure since inception,” said Special Agent in Charge Zahren. “We will continue to work closely with our network of law enforcement partners to dismantle criminal enterprises seeking to victimize innocent victims, regardless of geographic distance or borders. Special thanks to Ugandan law enforcement officials and the United States Embassy Uganda for their assistance.”
“This investigation was an excellent example of a partnership between multiple federal law enforcement agencies across the country and overseas, working together to identify and bring down those responsible for a worldwide conspiracy. The U.S. Postal Inspection Service remains vigilant, pursuing criminals like Gustafson to ensure the public’s trust in a safe and secure mail system.” added Inspector in Charge, Tommy Coke, Pittsburgh Division of the U.S. Postal Inspection Service.
Gustafson, a U.S. citizen residing in Kampala, Uganda, was originally charged by criminal complaint in December 2014. The April 1, 2015, indictment naming Gustafson also charged three additional defendants with conspiracy and conspiracy to launder money from December 2013 until December 2014. Those defendants are:
- Zackary L. Ruiz, aka Mr. Mouse, 19, of Las Vegas, Nevada, who is pending trial;
- Jeremy J. Miller, aka Sinner, 31, of Seattle, Washington, who is pending trial; and
- Michael Q. Lin, aka Mlin, aka Mr. Casino, 21, of Bethlehem, Penn., who pleaded guilty on Nov. 9, and is scheduled to be sentenced on March 16, 2016.
Assistant U.S. Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
U.S. Attorney Hickton commended numerous agencies and organizations for conducting the investigation leading to charges in this case, including the Directorate of Public Prosecution, the Criminal Investigations and Intelligence Department, the Special Investigations and Intelligence Unit, and Stanbic Bank in Uganda; the U.S. Secret Service; the Federal Bureau of Investigation; the U.S. Postal Inspection Service; Homeland Security Investigations; U.S. Customs and Border Protection; and the National Cyber-Forensics & Training Alliance.
U.S. Attorney Booth Goodwin continues crackdown on heroin dealersRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced the prosecution of two more heroin dealers today in federal court in Charleston, West Virginia. A Charleston man was sentenced for distribution of heroin, and a Detroit man entered a guilty plea to aiding and abetting the distribution of heroin.
Michael Ealm, 36, of Charleston, was sentenced today to three years and ten months in federal prison for distribution of heroin. Ealm previously pleaded guilty to the federal drug charge and admitted that on three occasions in January, February, and March of 2015, he sold heroin to a confidential informant. On March 4, 2015, Metropolitan Drug Enforcement Network Team officers executed a search warrant at Ealm’s residence in Charleston. When the officers entered the residence, they caught Ealm trying to flush heroin down the toilet. During the search, officers recovered handguns and additional heroin, and Ealm gave a statement admitting that he had been selling heroin in the Charleston area since January of 2015.
Additionally, Robert James Bellamy, 31, of Detroit, pleaded guilty today to aiding and abetting the distribution of heroin. On October 22, 2014, officers with Charleston Police Department’s Special Enforcement Unit (SEU) used a confidential informant to purchase heroin from Bellamy in the Kanawha City area of Charleston. On three additional occasions, SEU members conducted controlled purchases of heroin either directly from Bellamy or from an associate working at his direction. Bellamy admitted that from January through December of 2014, he distributed at least 400 grams of heroin in and around Kanawha County. Bellamy faces up to 20 years in federal prison and a $1 million fine when he is sentenced in federal court in Charleston on March 23, 2016.
The investigation of Ealm was conducted by the Metropolitan Drug Enforcement Network Team. The Charleston Police Department’s Special Enforcement Unit investigated Bellamy. Assistant United States Attorney Haley Bunn is handling the prosecution of both of these cases.
These cases were 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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U.S. Attorney Booth Goodwin collects over $11 million for taxpayers in fiscal year 2015Read the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that his office has collected $11,117,355.04 in the last year, which represents more than twice the office’s annual direct budget. Of this amount, $3,223,758.54 was collected in criminal actions, $1,917,340.47 was collected in civil actions, and $5,976,236.03 was collected in asset forfeiture.
Additionally, the U.S. Attorney’s Office for the Southern District of West Virginia worked with other U.S. Attorneys’ offices, components of the Department of Justice, and other federal agencies to collect an additional $15,003,158 in cases jointly pursued. Of this amount, $3,408 was collected in criminal actions and $14,999,750 was collected in civil actions.
Attorney General Loretta E. Lynch announced that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23.1 billion in collections in fiscal year 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
Goodwin noted, “The $11 million collected by this office represents more than twice the direct operating budget for my office for the year. These collections are made possible through the strong collaboration of my civil and criminal divisions, the attorneys and staff, and federal, state, and local law enforcement agencies. Together, we remain focused on community safety, and we will continue working as partners to hold criminals financially accountable for their dishonest gains.”
In December of 2014, Goodwin’s office recovered $1.1 million on behalf of Medicare and West Virginia Medicaid as part of a resolution with Trivillian’s Pharmacy in Charleston for allegations of fraud in dispensing pharmaceuticals. In another pharmacy case, Kofi Agyekum, the former owner and operator of A+ Care Pharmacy in Barboursville, forfeited $2.3 million and a Lexus when he was sentenced in August of this year for violating federal banking laws. The former pharmacy owner admitted that the money used in the banking crimes was derived from the illegal distribution of oxycodone, which the court noted, contributed to the oxycodone abuse epidemic in our communities.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal healthcare, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services on behalf of Medicare and Medicaid, Internal Revenue Service, Small Business Administration and Department of Education.
In addition to the civil and criminal collections, Goodwin’s office, working with partner agencies and divisions, collected $5,976,236.03 in asset forfeiture actions in fiscal year 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. This brings the total amount collected by Goodwin’s office in fiscal year 2015 to $11,117,355.04. The fiscal year began on October 1, 2014, and ended on September 30, 2015.
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Two more defendants sentenced in oxymorphone conspiracyRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that two more defendants were sentenced in federal court in Huntington, West Virginia, for their role in an oxymorphone distribution scheme that took place in a Nitro home.
Jennifer Russell, 42, of Nitro, was sentenced today to five years of probation for knowingly maintaining a residence for the purpose of distributing oxymorphone. Russell admitted that from November of 2013 to January of 2014, she allowed her residence at 21A Bailes Drive in Nitro to be used as a place for distribution of oxymorphone pills. Russell allowed Karson Williams, Bridgette Kelly, Gregory Lindsey, and others to distribute the illicit pills from the house.
Karson Williams, 21, of Charleston, was sentenced to five years of probation for aiding and abetting the distribution of oxymorphone. Williams previously pleaded guilty to the federal drug charge and admitted that on January 14, 2014, he sold a 40 mg oxymorphone pill, commonly known as “Opana,” to a confidential informant. The drug deal took place at Jennifer Russell’s house in Nitro, and Williams further admitted that Bridgette Kelly helped Williams with the drug deal.
Bridgette Kelly, of Charleston, previously pleaded guilty to conspiracy to distribute oxymorphone and was sentenced on September 14, 2015, to three years and one month in federal prison. Kelly conspired with Gregory Lindsey, of Detroit, to distribute oxymorphone pills from Jennifer Russell’s residence in Nitro. Lindsey made regular trips to Detroit, sometimes with Kelly, and brought back approximately 100 oxymorphone pills each trip for distribution. On January 30, 2014, officers executed a search warrant at Jennifer Russell’s residence in Nitro and seized over twenty 30 mg oxymorphone pills, over thirty 40 mg oxymorphone pills, and a firearm in Lindsey’s possession. Lindsey previously pleaded guilty to possession with intent to distribute oxymorphone, and was sentenced to four years and nine months in federal prison on August 4, 2014.
These cases were investigated by the Metropolitan Drug Enforcement Network Team and the prosecution is being handled by Assistant United States Attorney Monica D. Coleman.
These cases is being 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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Two Sentenced in Fresno-Area Identity Theft Ring Involving over 250 victims and $1.2 million in Attempted FraudRead the Press Release
FRESNO, Calif. — Two Fresno residents, Daniel Miranda, 26, and Roberto Martinez Jr., 34, were sentenced today for conspiring to commit mail fraud, bank fraud, and wire fraud, and for aggravated identity theft, United States Attorney Benjamin B. Wagner announced. Miranda was sentenced by Senior United States District Judge Anthony W. Ishii to seven years and 10 months in prison, and Martinez was sentenced to three years in prison.
According to court documents, from about June 2012 to January 2014, Miranda and Martinez, along with co-conspirators Lilliana Gonzales and Viririana Hernandez, obtained personal information from victims through various methods. Without the victims’ permission, they opened credit card accounts in the victims’ names or added themselves as “authorized users” of the victims’ existing accounts. The conspirators then used the accounts to buy goods and services at locations throughout the Fresno area, as well as in Modesto and in Riverside County.
In total, the four conspirators misused the personal information of approximately 250 victims and attempted fraudulent credit card charges of over $1.2 million.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated “we are working closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those responsible for complex Identity Fraud Schemes and to protect postal customer’s mail and personal information from theft.”
This case is the product of an investigation by the United States Postal Inspection Service, the Treasury Inspector General for Tax Administration, and the Fresno Police Department. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
Hernandez previously pleaded guilty to conspiracy and aggravated ID theft, and was sentenced to four and a half years in prison on November 2, 2015. Gonzales previously pleaded guilty to conspiracy and aggravated ID theft, and is scheduled to be sentenced on January 11, 2016. She faces a maximum statutory penalty of 30 years in prison and a $1 million fine on the conspiracy charge, and an additional two years for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Two Major Dyersburg Crystal Meth Distributors SentencedRead the Press Release
Jackson, TN – Two leaders of a lucrative methamphetamine distribution ring in West Tennessee have been collectively sentenced to more than 270 months in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencings today.
"The production, distribution and ingestion of methamphetamine remain an issue that is ravaging communities in West Tennessee and throughout the nation," said U.S. Attorney Edward L. Stanton III. "Sentences like these two serve as strong reminders that law enforcement is committed to ridding our district of this insidious drug."
Steven Isbell, Chief of Dyersburg Police Department, said of the case, "This is an example of what good teamwork can do. This case was initiated by our patrol level response. Officers referred the beginning information to the Dyersburg Police Department Street Crimes Unit, who in turn got DEA and TBI involved in the investigation. The end result is that 15 people have now been indicted federally, and these two sentences alone have gotten two major ice distributors off our streets."
Dyer County Sheriff Jeff Box stated, "I sincerely appreciate the U.S. Attorney’s Office working with all the agencies involved to insure these defendants received appropriate punishment for the crimes they committed. Our local officers worked with DEA and TBI on this investigation, which has lasted over 1 ½ years. Everybody's hard work resulted in numerous federal indictments and has helped us eliminate a high purity ice distribution ring in the Dyer County area."
According to information presented in court, Miracle Pounds, 37, and Robert Troy Anderson, 49, both of Dyersburg, TN, spearheaded an organization responsible for distributing large quantities of meth and crystal meth, also known as "ice." Meth with greater than 80 percent purity classifies as ice and has stricter punishment levels under the United States Sentencing Guidelines. From January 2014 to December 2014, the two defendants, along with several co-conspirators, unlawfully distributed various quantities of highly pure meth throughout West Tennessee.
In January 2014, Operation Ice Breaker was initiated by the Drug Enforcement Administration (DEA) in collaboration with the Tennessee Bureau of Investigation (TBI), Dyersburg Police Department, and Dyer County Sheriff’s Office. The operation targeted several major ice distributors in the Dyersburg area — Pounds and Anderson being two of the operation’s main targets. Several state search warrants were executed on co-conspirators' homes during the investigation. And numerous controlled purchases were conducted where ice was sold by conspirators involved in the drug trafficking organization.
According to court information, Pounds and Anderson sold ice to undercover operatives. They also had other individuals selling ice for them. The two defendants, as well as other co-conspirators, transported meth from Arkansas to West Tennessee on various occasions for unlawful distribution. The majority of the meth recovered during Operation Ice Breaker’s duration was greater than 95 percent pure, classifying it as ice.
Both Pounds and Anderson pled guilty to one count of conspiracy to distribute and possess with intent to distribute actual methamphetamine.
On November 24th, 2015, Chief Judge J. Daniel Breen sentenced Pounds to serve 121 months in prison.
On December 4th, 2015, Judge Breen sentenced Anderson to serve 151 months in prison.
This case was investigated by the DEA, TBI, Dyersburg Police Department, and Dyer County Sheriff’s Office.
Assistant U.S. Attorney Beth Boswell prosecuted this case on the government’s behalf.
Timothy Gerace Sentenced to Ten YearsRead the Press Release
ABINGDON, VIRGINIA – United States Attorney Anthony P. Giorno announced today that Timothy Gerace was sentenced to 120 months imprisonment in the United States District Court for the Western District of Virginia in Abingdon after having previously pleaded guilty to one count of conspiring to distribute methamphetamine. Gerace was the final defendant to be sentenced in the multi-jurisdictional investigation of methamphetamine distribution, “Operation Saltvegas.”
Timothy Gerace, 55, of Mountain City, Tenn., previously entered a plea of guilty to one count of a multi-count indictment charging him with conspiring to distribute methamphetamine. According to evidence presented at the guilty plea and sentencing hearings by Assistant United States Attorney Zachary T. Lee, Gerace and co-defendant Richard Shaw were suppliers of large quantities of methamphetamine to more than twenty-five sub-distributors in both Northeast Tennessee and Southwest Virginia. Gerace’s conduct was uncovered as part of a multi-agency investigation involving federal, state and local law enforcement in both Virginia and Tennessee. As part of his plea, Gerace admitted to being involved in the distribution of more than five kilograms of methamphetamine. As a result of the investigation, twenty-seven individuals have pleaded guilty and been sentenced for conspiring to distribute methamphetamine and twenty individuals have been sentenced as a result of the investigation. The defendants sentenced are:
Jeramiah Yates, 34, Vilas, NC – 37 months imprisonment
Melvin Campbell, 45, Mountain City, TN – 7 months imprisonment
Daniel Reece, 46, Mountain City, TN – 72 months imprisonment
Linda Walters, 46, Mountain City, TN – 12 months and 1 day imprisonment
Russell Wayne Cassell a/k/a “Rusty”, 44, Glade Spring, VA – 41 months imprisonment
Kenneth Craig Buchanan a/k/a “Bubba”, 50, Glade Spring, VA – 24 months imprisonment
Stephanie Patrick, 40, Glade Spring, VA – 24 months imprisonment
Roger Lawson, 65, Glade Spring, VA – 46 months imprisonment
Toby Mock, 44, Glade Spring, VA – 6 months imprisonment
Rachel Peake, 44, Atkins, VA – 6 months imprisonment
Jason Mullinax, 37, Chilhowie, VA – 36 months imprisonment
Roger Austin, Jr. a/k/a “Fat Rog”, 52, Glade Spring, VA – 121 months imprisonment
Angela Surber, 40, Chilhowie, VA – 37 months imprisonment
Timothy Nickolas Rabara, 26, Marion, VA – 5 years’ probation
Albert Hague, 56, Mountain City, TN – 30 months imprisonment
Kimberly Ann Bradley, 44, Johnson City, TN – 12 months and 1 day imprisonment
James Poore a/k/a “Danny”, 48, Glade Spring, VA – 18 months imprisonment
Tony Delp, Glade Spring, VA – 6 months imprisonment
Katherine Mitchell, 55, Saltville, VA – 78 months imprisonment
Gary Lee Howell, 53, Saltville, VA – 121 months imprisonment
Jim Grindstaff , 49, Mountain City, TN - 63 months imprisonment
Michael Brady Lester, 43, Abingdon, VA – 42 months imprisonment
Joseph Nathan Hall, 36, Abingdon, VA – 60 months imprisonment
William Hunt, Jr., 54, Abingdon, VA – 16 months imprisonment
Brandi Marie Dunford, 35, Abingdon, VA – 60 months imprisonment
Angeline Delp, 52, Glade Spring, VA - 6 months imprisonment
The investigation of this case was conducted by the Washington County Sheriff’s Office, Russell County Sheriff’s Office, Smyth County Sheriff’s Office, Abingdon Police Department, Virginia State Police, Johnson County, Tennessee Sheriff’s Office, Tennessee Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Drug Enforcement Administration, and the United States Marshals Service. The Smyth County Commonwealth’s Attorney’s Office and the Washington County Commonwealth’s Attorney’s Office also assisted in the investigation and prosecution of this case. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
Three Plead Guilty, One Is Sentenced for Extensive Counterfeit Media Conspiracy in Central ValleyRead the Press Release
FRESNO, Calif. — Efrain Lozada Rosas, 34, and Victor Flores Fuentes, 39, both of San Jose, and Jesus Cuevas Lopez, 25, of Southern California, pleaded guilty today before U.S. District Judge Lawrence J. O’Neill to conspiring to commit criminal copyright infringement and commit related crimes, United States Attorney Benjamin B. Wagner announced. Another co-defendant, Edgar Hipatl Rodriguez, 36, of San Jose, was sentenced today by Judge O’Neill to two years and three months in prison for his role in the counterfeit media conspiracy.
According to court documents, on March 13, 2015, warehouse and office space used by the defendants were found to contain tens of thousands of counterfeit music CDs and movie DVDs. The counterfeit materials included movie titles that were in theatrical release and not yet available for legitimate sale on DVD. The counterfeit CDs and DVDs were distributed by the defendants for resale in Atwater, Modesto, Stockton, Turlock, and throughout California.
This case is the product of an investigation by the Sacramento Intellectual Property Rights Task Force composed of the Federal Bureau of Investigation and the Sacramento County Sheriff’s Office. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.
Ten defendants were indicted in March 2015 in connection with the counterfeit media operation. Eight of the defendants have pleaded guilty to various charges. Two remaining defendants, Miguel Angel Gomez Rebolledo, 35, and Antonio Morales, 32, of San Jose, are scheduled for trial in March 2016. The charges against these remaining two defendants are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Rosas, Fuentes and Cuevas Lopez are scheduled to be sentenced by Judge O'Neill on April 4, 2016. They face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Southern California Ambulance Company Owner, Operator and Managers Sentenced to Prison for Medicare Fraud SchemeRead the Press Release
The former owner, operator and managers of a Southern California ambulance company were sentenced to prison for their role in a fraud scheme that resulted in more than $1.5 million in fraudulent claims to Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Special Agent in Charge Christian J. Schrank of the U.S. Department of Health and Human Services-Office of the Inspector General’s (HHS-OIG) Los Angeles Region and Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division made the announcement.
Today, U.S. District Judge S. James Otero of the Central District of California sentenced Yaroslav Proshak, aka Steven Proshak, 47, of Valley Village, California to serve 108 months in prison. On Dec. 2, 2015, Judge Otero of the Central District of California sentenced Emilia Zverev, 58, of Van Nuys, California; and Sharetta Michelle Wallace, 37, of Inglewood, California, to serve 36 months and 24 months in prison, respectively. In addition to their prison terms, Judge Otero ordered Zverev and Wallace to pay restitution jointly and severally with Proshak in the amount of $804,755. On Aug. 18, 2015, following a 10-day trial, a federal jury in Los Angeles convicted Proshak, Zverev and Wallace of one count of conspiracy to commit health care fraud and five counts of health care fraud.
Zverev and Wallace worked for ProMed Medical Transportation, an ambulance transportation company owned and operated by Proshak in the greater Los Angeles area that provided non-emergency services to Medicare beneficiaries, many of whom were dialysis patients. Zverev was the billing manager and Wallace supervised the ProMed EMTs. The evidence at trial showed that between May 2008 and October 2010, the defendants conspired to bill Medicare for ambulance transportation services for individuals that did not need such services. The defendants also instructed ProMed EMTs to conceal the patients’ true medical conditions by altering paperwork and creating fraudulent documents to justify the services. During the course of the conspiracy, ProMed submitted at least $1.5 million in false and fraudulent claims to Medicare for medically unnecessary transportation services; Medicare paid at least $804,755 on those claims.
The FBI and HHS-OIG investigated the case. The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Central District of California. Trial Attorneys Blanca Quintero, Fred Medick and Ritesh Srivastava of the Criminal Division’s Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Somerset County, New Jersey, Man Admits Knowingly Possessing Air Tank Filled with Heroin and CocaineRead the Press Release
NEWARK, N.J. – A Somerset, New Jersey, man who was pulled over with an air tank hiding 19 kilograms of cocaine and seven kilograms of heroin today admitted his intent to distribute the drugs in the Jersey City, New Jersey, area, U.S. Attorney Paul J. Fishman announced.
Richard Vasquez Rodriguez, 35, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to a superseding information charging him with one count of distribution and possession with intent to distribute cocaine and one count of distribution and possession with intent to distribute heroin.
According to documents filed in this case and statements made in court:
On Jan. 16, 2014, Rodriguez was driving a 2005 Blue Chevrolet Tahoe on the New Jersey Turnpike headed towards Jersey City. Law enforcement officers pulled over Rodriguez and he consented to a search of the vehicle.
Law enforcement found an air tank, similar to a helium tank for filling balloons, lying in the back of the Chevrolet Tahoe. Upon closer inspection, it appeared that one end of the air tank had been removed at some point and welded back together. A search of the air tank revealed that it contained approximately 19 kilograms of cocaine and seven kilograms of heroin. Rodriguez admitted today that he transported the air tank with the intent to distribute the cocaine and heroin.
Both distribution offenses to which Rodriguez pleaded guilty carry a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for March 16, 2016.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration (DEA), Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski, and officers of the N.J. State Police, under the direction of Col. Joseph R. Fuentes, superintendent of the state police, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre, Joyce M. Malliet and Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Dennis D.S. McAlevy Esq., Union City, New Jersey
Sinaloa Cartel Member Sentenced to 17 Years in Federal Prison for Cocaine Drug ConspiracyRead the Press Release
CONCORD – Acting United States Attorney Donald Feith announced today that Rafael Humberto Celaya Valenzuela, 40 of Hermosillo, Mexico was sentenced today to 17 years in federal prison after being convicted by a jury of conspiracy to distribute and to possess with the intent to distribute cocaine.
A grand jury for the District of New Hampshire originally charged Celaya Valenzuela and seven coconspirators including Joaquin Guzman-Loera, a/k/a “Chapo” with the drug conspiracy in June 2011. A grand jury returned a superseding indictment in July 2012; shortly before Celaya Valenzuela’s arrest in Spain on August 7, 2012 conspirators Samuel Zazueta Valenzuela, Jesus Gonzalo Palazuelo Soto, and Jesus Manuel Gutierrez Guzman arrived there to monitor the delivery of 346 kilograms of cocaine to Algeciras, Spain. The cocaine was delivered to a European port for eventual redistribution in Europe and the United States. The delivery resulted from negotiations between members of the Sinaloa Cartel led by Chapo and undercover agents of the Federal Bureau of Investigation posing as members of an organized crime syndicate.
During the period of the negotiations there were numerous meetings with members of the conspiracy in the United States, including an April 2011 meeting in New Castle, New Hampshire, and a March 2011 meeting in Madrid, Spain to finalize the terms of the first delivery. During this time, three “test” deliveries of fruit were made to provide assurance to the conspirators that they were not dealing with law enforcement. The success of the test deliveries led to the ultimate delivery of the cocaine.
“This case illustrates that drug cartels based in foreign countries will go anywhere to distribute their deadly products,” stated Acting United States Attorney Donald Feith. “Mr. Celaya Valenzuela served as a representative of one of the world’s wealthiest and deadliest drug organizations. Without the work of dedicated agents from the FBI, the Boston Police Department, and the Spanish National Police, this long term investigation would not have been successful. I commend these agencies for their determination to bring these individuals to justice.”
Celaya Valenzuela will be deported to Mexico upon his release.
Sex Offender Arrested for False Statements Regarding Computer AccessRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Richard Petix, 30, of Rochester, NY, was arrested and charged by criminal complaint with material false statement. The charge carries a maximum penalty of five years in prison and a $250,000 fine.Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that according to the complaint, Petix lied to federal probation officers and law enforcement agents about his ownership and use of a laptop computer and a smartphone. Petix is on a term of supervised release following a 2009 federal conviction for knowingly transporting child pornography in interstate commerce. As special conditions of his supervision, Petix must notify his probation officer of any computers he uses and, as triggered by impermissible or suspicious activity, consent to examinations of such computers. On December 3, 2015, probation officers saw Petix at a business establishment in Buffalo, accessing a laptop computer and possessing a smartphone and multiple thumb drives.
The defendant made an initial appearance before U.S. Magistrate Judge Hugh B. Scott and is being held pending a preliminary hearing on December 16, 2015, at 10:00 a.m.
The indictment is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the United States Probation Office, under the direction of Anthony SanGiacomo.
The fact that a defendant has been charged with a crime is merely an accusation
Santa Barbara Doctor Sentenced to over 27 Years in Federal Prison for Writing Prescriptions for Huge Quantities of Dangerous NarcoticsRead the Press Release
SANTA ANA, California – A Santa Barbara-area physician who wrote numerous prescriptions for powerful painkillers for “patients” – many of whom were drug addicts, and some of whom died from drug overdoses – was sentenced today to 327 months in federal prison.
Julio Gabriel Diaz, 67, a Goleta resident who operated the Family Medical Clinic in Santa Barbara and was known to some “patients” as the “Candyman,” was sentenced by United States District Judge Cormac J. Carney.
Diaz was sentenced today after being found guilty in August by a federal jury. During the 2½-week trial, prosecutors showed that Diaz was a prolific writer of prescriptions for highly addictive and dangerous drugs and that he distributed the drugs outside of the usual course of professional practice and without a legitimate medical purpose.
In 2011, for example, Diaz wrote prescriptions for more than 1.7 million doses of painkillers. His “patients” typically paid cash and received prescriptions for powerful drugs that included opioids, anti-anxiety medications and muscle relaxants. Several doctors and pharmacists who testified during the trial said that they had never seen any doctor prescribe the combination and quantity of drugs prescribed by Diaz.
“Driven by financial gain, this doctor wrote a staggering number of prescriptions for people, many of whom were clearly abusing the drugs,” said United States Attorney Eileen M. Decker. “Diaz ignored family members who begged him to stop prescribing prescription pain medications to loved ones, and he ignored warnings from doctors and pharmacists that his ‘patients’ were abusing the drugs and suffering overdoses – in some cases fatally overdosing. Doctors who abuse their position of trust and violate their oath pose a significant threat to public health, and we will continue to target them when they commit acts that are not driven by a medical necessity.”
Diaz was found guilty of 79 counts of distribution of a controlled substance. Twenty-six of the charges relate to oxycodone (a drug often sold under the brand name OxyContin), 10 of the charges relate to methadone, seven of the counts relate to hydromorphone (a drug commonly sold under the brand name Dilaudid), 10 of the charges relate to fentanyl, 11 of the charges relate to hydrocodone (a drug often sold under the brand names Vicodin and Norco), 10 of the charges relate to alprazolam (a drug often sold under brand name Xanax), and five of the charges related to the distribution of various controlled substances to a minor.
According to the evidence presented at trial, doctors, nurses and other personnel with Santa Barbara Cottage Hospital wrote to the Medical Board of California and gave statements to investigators to complain about Diaz. Cottage Hospital doctors believed that Diaz posed such a threat that they prepared a spreadsheet documenting emergency room visits by patients who had been prescribed narcotics by Diaz.
“A medical doctor trusted by society, defendant [Diaz] stopped treating patients and became a drug dealer,” prosecutors wrote in a sentencing memorandum. “He turned young people into addicts and/or fueled the addictions of drug abusers.”
Diaz was arrested in this case in January 2012. After being free on bond for a time, he was taken into custody and has remained in custody since January 2014. After his arrest, the state of California revoked his license after finding that he provided incompetent and grossly negligent care.
The investigation into Diaz was conducted by the Drug Enforcement Administration and the Santa Barbara Police Department, which received the assistance of the California Medical Board.
Pediatric Nurse Sentenced to 80 Years for Sexual Exploitation of Children in His CareRead the Press Release
Assistant U.S. Attorney Alessandra Serano (619) 546-8104
NEWS RELEASE SUMMARY – December 7, 2015
SAN DIEGO, CA – Michael William Lutts, a 52-year-old foster parent and pediatric nurse, was sentenced in federal court today to the statutory maximum 80 years in prison for sexually exploiting a two-month-old premature boy and an 11-month-old girl who had been placed in his care in 2014.
During the sentencing hearing, U.S. District Judge John Houston called Lutts the “worst of the worst” and described his conduct as “horrific” and “worse than a mass murderer shooting 20 people” because the newborns he targeted “are the most fragile people to victimize.”
Before the sentence was handed down, Assistant U.S. Attorney Alessandra Serano urged Judge Houston to hand down a 65-year prison term –essentially life in prison considering the defendant’s age. “This defendant is a parent’s worst nightmare and a predator to society. He should never see the light of day. Rehabilitation would be futile.”
Judge Houston handed Lutts a sentence that was 15 years more than the prosecutor had asked for – saying he wanted to “send a message to others who conduct this activity under the cover of dark.” The judge said he would not recommend any psychological treatment for the defendant as the “taxpayers shouldn't waste their money on treatment.”
Lutts pleaded guilty in January, admitting to 15 instances in July and August of 2014 in which he photographed and videotaped the babies in sexually explicit situations at both his home and workplace. In one image, the defendant photographed his own exposed genitals beside the infant, who was still wearing his hospital bracelet. In some of the images and videos, the baby is crying as Lutts sexually abuses him. Lutts also admitted emailing sexually explicit images of children to others.
Lutts pleaded guilty to two counts of sexual exploitation of a minor and one count of distribution of child pornography. In addition to his custodial sentence, he was ordered to forfeit his College area home where most of the crimes occurred.
“This is one of most appalling, heart-wrenching cases I have seen in this district,” said U.S. Attorney Laura Duffy. “All child exploitation cases are heinous. But it’s a whole new level of depravity when the victims are babies in the care of a trusted nurse. One of these victims was a premature, two-month-old foster child who was alone in this world except for a foster parent who was supposed to provide a safe and loving environment. We will do everything in our power to protect our precious, defenseless children from sexual abuse and exploitation.”
“Lutts was trusted with the care of two infants who he sexually exploited and abused repeatedly. These infants suffered in silence, unable to speak for themselves, and unable tell others of the horror they were suffering,” said FBI Special Agent in Charge, Eric S. Birnbaum. “When this type of sexual exploitation takes place, the FBI and our law enforcement partners will aggressively pursue these sexual predators and bring them to justice. In doing so, we will give a voice to the most vulnerable members of our society.”
DEFENDANT Criminal Case No. 14CR2542-JAH
Michael William Lutts Age: 52 San Diego
SUMMARY OF CHARGES
Counts 1, 17: Sexual Exploitation of a Minor, in violation of 18 U.S.C. §2251(a)
Maximum Penalties: Thirty years in prison, mandatory minimum 15 years per count
Counts 16: Distribution of Child Pornography, in violation of 18 U.S.C. §2252(a)(2)
Maximum Penalties: Twenty years in prison, mandatory minimum 5 years
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Parkton Landscaper Sentenced to over 3 Years in Prison for Stealing from a ClientRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Jeffrey Poole, age 40, of Parkton, Maryland, today to 42 months in prison followed by three years of supervised release for bank fraud and aggravated identity theft arising from a seven year scheme to access a client’s bank account. Chief Judge Blake also entered an order requiring Poole to pay restitution of $160,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to his plea, Poole met the victim when he provided landscaping services. He helped set up the victim’s new computer for on-line banking and gained access to the victim’s personal identity and financial information. Shortly thereafter, Poole used the victim’s identity to establish a PayPal account for the victim, without the victim’s knowledge. Poole used the victim’s personal and financial information to link the victim’s PayPal account to the victim’s checking account, so that payments made with or money transferred from the victim’s PayPal account would be automatically drawn from the victim’s bank account.
From April 2007 through January 2014, Poole repeatedly logged onto the victim’s PayPal account and made purchases for himself. He also initiated money transfers from the victim’s PayPal account into his own PayPal account. He then transferred the victim’s funds to his own bank accounts.
As a result of the scheme, Poole fraudulently obtained or attempted to obtain over $244,000.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service for its work in the investigation and thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.