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14 January 2016
Maryland Man Indicted for Conspiring to Provide and for Providing Material Support to ISILRead the Press Release
Defendant Allegedly Received Money from Individuals Overseas to Be Used for “Operational Purposes” in the United States
A federal grand jury returned an indictment late yesterday charging Mohamed Elshinawy, 30, of Edgewood, Maryland, with conspiring to provide and with providing material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization; terrorism financing; and making false statements in connection with a terrorism matter.
The indictment was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Rod J. Rosenstein of the District of Maryland and Special Agent in Charge Kevin Perkins of the FBI’s Baltimore Division.
“According to the allegations in the indictment, Elshinawy conspired to provide material support to ISIL and received funds in order to carry out an attack,” said Assistant Attorney General Carlin. “When confronted by the FBI, he lied in order to conceal his support for ISIL and the steps he took to provide material support to the deadly foreign terrorist organization. This indictment is the next step in holding Elshinawy accountable. The National Security Division remains committed to protecting the nation from terrorist threats, and we will continue to pursue and disrupt those who seek to provide material support to ISIL.”
“This case demonstrates how terrorists exploit modern technology to inculcate sympathizers and build hidden networks, but federal agents and prosecutors are working tirelessly and using every available lawful tool to disrupt their evil schemes,” said U.S. Attorney Rosenstein.
The four-count indictment alleges that from February 2015 through about Dec. 11, 2015, Elshinawy conspired with others to provide material support and resources, including personnel, services (including means and methods of communication) and financial services, to ISIL. Elshinawy and his co-conspirators utilized various methods of surreptitious and other forms of communication in order to conceal their criminal association, the substance of their communications and their criminal activities from law enforcement.
As part of the conspiracy, Elshinawy and co-conspirator 1, an Egyptian national and childhood friend of Elshinawy, allegedly recruited and sought to recruit others to join ISIL and further its cause of violent jihad. Elshinawy and co-conspirator 1 also provided themselves as personnel to assist ISIL. The indictment alleges that on Feb. 17, 2015, during a discussion with co-conspirator 1 over social media, Elshinawy pledged his allegiance to ISIL, described himself as its soldier, asked co-conspirator 1 to convey his message of loyalty to ISIL leadership and commitment to perpetrating violent jihad. From March 11, 2015, through May 29, 2015, Elshinawy had several discussions over social media with an individual believed to be his brother, during which Elshinawy repeatedly encouraged his brother to join ISIL. During the conversations, Elshinawy also spoke of his support for ISIL and his desire to become a mujahideen and die as a martyr. Over the course of the conspiracy, Elshinawy and co-conspirator 1 discussed obtaining or making an explosive device and possible targets.
To conceal his illegal activities, the indictment alleges that Elshinawy purchased a cell phone, which he registered under a fake name and address, to communicate securely with co-conspirator 1 and other ISIL operatives. Elshinawy also directed his brother to take steps to conceal their communications regarding ISIL. In an effort to conceal his connection to ISIL operatives, Elshinawy removed the name of an ISIL sympathizer from his list of friends on his social media account and blocked co-conspirator 1’s access to that same account.
According to the indictment, Elshinawy received money from overseas through transfers of funds by a company headquartered overseas into his online financial account, wire transfers and other methods to be used to conduct a terrorist attack on behalf of ISIL. On July 17, 2015, in an effort to conceal and minimize his criminal involvement with ISIL, Elshinawy falsely claimed to FBI agents that he had only received a total of $4,000 from an ISIL operative overseas, and later amended the statement by falsely claiming that he had received no more than $5,200 from the ISIL operative.
The maximum sentence for conspiracy to provide and for providing material support to a designated foreign terrorist organization is 15 years in prison; the maximum sentence for collection of terrorism financing is 20 years in prison; and the maximum sentence for making false statements in a terrorism matter is eight years in prison. If convicted, Elshinawy’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation. No court appearance has been scheduled. Elshinawy has been detained since his arrest on Dec. 11, 2015, on related charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty.
Assistant Attorney General Carlin joined U.S. Attorney Rosenstein in commending the FBI for its work in the investigation, and thanked Assistant U.S. Attorney Christine Manuelian of the District of Maryland who is prosecuting the case, with assistance provided by Trial Attorneys John Gibbs and Jason Denney of the National Security Division’s Counterterrorism Section.
Elshinawy Indictment
Manhattan U.S. Attorney Announces Arrest of New York Immigration Attorney for Immigration Fraud and Aggravated Identity TheftRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Glenn Sorge, Acting Special Agent-in-Charge of the New York Office of U.S. Immigration and Customs Enforcement’s (“ICE”), Homeland Security Investigations (“HSI”), and Timothy Houghton, Acting District Director of the New York District of U.S. Citizenship and Immigration Services (“USCIS”), announced today the arrest of GNOLEBA SERI for immigration fraud and aggravated identity theft. SERI was arrested today by HSI in Brooklyn, New York, and was presented this afternoon before the Honorable James C. Francis IV.
U.S. Attorney Preet Bharara stated: “Gnoleba Seri allegedly used his legal knowledge to circumvent the law and forge documents that are critical to obtaining an immigrant visa. The strength of the United States’ immigration system rests on the integrity of its process, and this office and our law enforcement partners will hold accountable those who undermine that process.”
Acting Special-Agent-in-Charge Glenn Sorge stated: “Gnoleba Seri allegedly abused the special trust bestowed upon him as an immigration attorney to commit fraud and identity theft. When individuals falsify immigration documents, the system is severely undermined and the security of our nation is put at risk. HSI is committed to working with its law enforcement partners to ensure fraudsters are identified and brought to justice.”
Acting District Director Timothy Houghton stated: “We are proud to stand by our partners today to send a message that U.S. immigration fraud will not be tolerated. We are committed to ensuring the integrity of our nation's immigration system.”
According to the Complaint[1] unsealed today in Manhattan federal court:
Between October 2012 and April 2015, GNOLEBA SERI, a licensed immigration attorney working in New York, New York, and Brooklyn, New York, engaged in a scheme to use personal information contained in legitimate immigration documents for fraudulent purposes. In his role as an immigration attorney, SERI submitted falsified and forged I-864 Forms (affidavits of support for those seeking immigrant visas) in support of his clients’ applications for immigration visas and for legal permanent resident status. Specifically, SERI received legitimate I-864 Forms, tax information, pay stubs, and W-2 forms from individuals sponsoring his clients, and then fraudulently submitted these documents in applications for other clients. That is, SERI submitted I-846 Forms that listed individuals as financial sponsors who had never met the people they were purportedly agreeing to sponsor. Those I-846 Forms included the sponsors’ real names, identifying information, and financial information, as well as forged signatures. These fraudulent and forged I-864 Forms all listed SERI as the preparer, and many of them were notarized by him.
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SERI, 49, of Brooklyn, New York, is charged with one count of visa fraud, which carries a maximum sentence of 10 years in prison; one count of aggravated identity theft, which carries a mandatory consecutive minimum sentence of two years in prison; and one count of mail fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara praised the outstanding investigative efforts of law enforcement personnel at HSI and USCIS.
The case is being prosecuted by the Office’s General Crimes Unit. Assistant U.S. Attorney Andrew D. Beaty is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man Who Tried to Run over Deputy U.S. Marshal with a Minivan Found Guilty of Assaulting a Federal OfficerRead the Press Release
LOS ANGELES – A man who was on the run after failing to abide by the terms of his release after serving a prison sentence in a narcotics case was found guilty this afternoon of assaulting a Deputy U.S. Marshal by trying to run him over with a minivan.
Keith Leon Smith, 47, was found guilty by a federal jury of one count of assaulting a federal officer with a deadly and dangerous weapon.
“Law enforcement officers put their lives at risk every day in the line of duty,” said United States Attorney Eileen M. Decker. “Those who increase this risk and intentionally put the lives of law enforcement officers in jeopardy will be prosecuted.”
According to the evidence presented during a three-day trial in United States District Court, on March 11, 2015, six Deputy U.S. Marshals went to a residence on East 220th Street in Carson, where they believed Smith was residing. The Deputy Marshals were conducting an investigation with the goal of taking Smith into custody after a federal judge in 2013 had issued a bench warrant. Smith was wanted because he had violated the terms of his supervised release after serving more than seven years in prison for being convicted of manufacturing methamphetamine.
While conducting the surveillance, the Deputy Marshals observed Smith exit the residence, get into a minivan and leave the location. The Deputy Marshals, who were in several vehicles, followed Smith and executed a traffic stop. As the Deputy Marshals approached the minivan that Smith was driving and identified themselves as law enforcement officers, Smith reversed his vehicle toward some of the Marshals Service vehicles. Smith then suddenly accelerated his vehicle toward one of the Deputy Marshals, who was in front of the minivan. The Deputy Marshal, now in the way of the oncoming minivan, fired his weapon at the windshield and fell backward.
Smith briefly stopped the vehicle as the shots hit the windshield, and then accelerated the minivan toward the Deputy Marshal on the ground. The Deputy Marshal was able to jump out of the way of the minivan and fire several shots at the vehicle. According to court documents, the Deputy Marshal “believes that he would be dead if he had not stumbled out of the way of defendant’s oncoming vehicle.”
Smith then sped away as the Deputy Marshals gave chase. But, due in part to his dangerous driving, which included swerving into oncoming traffic, Smith was able to elude capture that day. However, deputies with the Los Angeles Sheriff’s Department located Smith’s minivan the next day and took him into custody. During a subsequent interview with Sheriff’s Deputies, Smith stated that he did not “stop” for the Marshals because he did not “want to go back to prison,” according to the evidence presented at trial.
As a result of today’s conviction, Smith faces a statutory maximum sentence of 20 years in federal prison. United States District Judge R. Gary Klausner, who presided over the trial, is scheduled to sentence Smith on April 18.
The investigation in the assault case was conducted by the Federal Bureau of Investigation and the Los Angeles County Sheriff’s Department.
The case was prosecuted by Assistant United States Attorneys Anil J. Antony and Kimberly D. Jaimez of the General Crimes Section.
Man Who Pointed Assault Rifle at Detective Found Guilty in Federal CourtRead the Press Release
Memphis, TN – After a three-day trial, a man who pointed an assault rifle at police officers has been convicted by a federal jury of felony firearm possession. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty verdict today.
According to information presented in court, on September 4th, 2014, detectives with the Memphis Police Department’s Organized Crime Unit went to a house in South Memphis to conduct a knock and talk investigation regarding drug sales. When detectives knocked on the door and asked to speak with a resident about the complaint, 31-year-old Geremy Atkins, of Memphis, asked who was at the door. After detectives identified themselves, Atkins opened the door and pointed a black 5.56 caliber assault rifle at one of the detectives. The defendant subsequently closed the door and ran out the back door. Detectives were able to catch and detain Atkins by the rear fence of the house’s backyard. The assault rifle Atkins pointed at officers was found on the other side of the fence, a few feet from where Atkins was arrested. Law enforcement discovered that the rifle was fully loaded with 5.56 caliber rounds of ammunition.
On Wednesday, January 13, 2016, a federal jury found Atkins guilty of one count of being a felon in possession of a firearm.
Atkins is scheduled to be sentenced by U.S. District Judge John T. Fowlkes Jr. on Thursday, April 21, 2016. He faces up to 10 years imprisonment and a fine of up to $250,000 when sentenced.
This case was investigated by the Project Safe Neighborhoods (PSN) Task Force, a collective comprised of personnel from the Memphis Police Department, Shelby County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The PSN Task Force works in a unified effort against gun crime, targeting repeat offenders who continually plague the greater Shelby County area.
Special Assistant U.S. Attorney Hamilton Carriker and Assistant U.S. Attorney Elizabeth Rogers prosecuted this case on the government’s behalf.
Kyle Woman Sentenced for Felony Child Abuse and NeglectRead the Press Release
United States Attorney Randolph J. Seiler announced that a Kyle, South Dakota, woman convicted of Felony Child Abuse and Neglect was sentenced on January 8, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jeannie Janis, age 30, was sentenced to 12 months and 1 day in custody, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Janis was indicted for the charge on February 18, 2015. She pled guilty on August 24, 2015.
The conviction stems from Janis causing serious bodily injury to her 5 month old child in May of 2014, due to her neglect and multiple abusive episodes.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Janis was immediately turned over to the custody of the U.S. Marshals Service.
Jury Convicts Providence Man on Drug Trafficking ChargeRead the Press Release
PROVIDENCE, R.I. – A federal court jury in Providence today convicted Jose Ignacio Goris, 41, of Providence, of attempting to possess with the intent to distribute 500 grams or more of cocaine. Goris was arrested on August 14, 2014, moments after he took custody of what he believed to be a kilogram of cocaine supplied to him at his request by a person he believed to be a drug trafficker. The purported drug trafficker was a DEA Task Force agent. The package was made to appear as if it contained a kilo of cocaine.
Goris’ conviction is announced by United States Attorney Peter F. Neronha and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
According to the government’s evidence presented at trial, beginning in early May 2014, Goris and two undercover agents who were posing as large-scale cocaine suppliers engaged in a series of electronically recorded telephone conversations and meetings. Goris repeatedly represented to the agents that he had previously engaged in distributing large quantities of cocaine and that he was anxious to return to “work” trafficking cocaine.
On the afternoon of August 14, 2014, Goris and one of the agents met in a mall parking lot in Warwick, at which time Goris was shown what he believed to be two kilos of cocaine. The look-alike cocaine packages were hidden inside a secret compartment of the undercover agent’s vehicle. After examining the packages, Goris told the agent that he was leaving to get funds to purchase a kilo of the cocaine.
Later that day, Goris and the agent met inside a Cranston retail store and negotiated terms for the sale of the kilo of cocaine. After they reached agreement, the agent directed Goris to a vehicle in the store parking lot which he told Goris contained a bag with a kilo of cocaine. Goris was arrested by members of the Drug Task Force moments after he retrieved and took possession of the bag from the vehicle. Inside the bag was a package made to appear as if it was a kilo of cocaine.
Goris, who has been held in federal custody since his arrest, will be sentenced by U.S. District Court Judge John J. McConnell, Jr., on a date to be scheduled by the court.
According to court records, Goris was previously convicted in federal court on drug trafficking charges.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The Rhode Island DEA Drug Task Force is comprised of agents and law enforcement officers from the DEA, ATF, IRS, Homeland Security Investigations, Rhode Island State Police, and Cranston, East Providence, Pawtucket, Providence, Newport, South Kingstown, Warwick, West Warwick and Woonsocket Police Departments.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Jefferson County Man Arrested for Killing Whooping CranesRead the Press Release
BEAUMONT, Texas – An 18-year-old Beaumont, Texas man has been arrested for federal violations in the Eastern District of Texas announced U.S. Attorney John M. Bales.
Trey Joseph Frederick was arrested today pursuant to a criminal complaint issued by the U.S. District Court charging him with violating the Migratory Bird Treaty Act. Frederick appeared in federal court this afternoon on the charges.
According to information presented in court, on Jan. 11, 2016, a Texas Game Warden received two calls reporting two whooping cranes had been shot on Blair Road in Jefferson County. Further investigation revealed the defendant had been seen in the area with a hunting rifle and had claimed to be hunting geese. Federal agents contacted Frederick at his home on LaBelle Road where he admitted to killing the cranes. Whooping cranes are migratory birds and are protected under the Migratory Bird Treaty Act making it unlawful to capture, kill, or attempt to capture or kill in the United States.
If convicted, Frederick faces up six months in federal prison and a fine of up to $15,000.
This case is being investigated by Special agents with the U.S. Fish and Wildlife Services, Office of Law Enforcement and Game Wardens with the Texas Parks and Wildlife Department and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Indictment: User Died When Wichita Doctor Diverted Rx Drugs to the StreetsRead the Press Release
WICHITA, KAN. - A federal indictment unsealed here today alleges a Wichita doctor diverted prescription drugs to the streets, resulting in one of his patients dying from an overdose, U.S. Attorney Barry Grissom said. Eight people who got prescriptions from the doctor also are charged with unlawfully distributing prescription drugs.
Dr. Steven R. Henson, 54, Wichita, Kan., who operated Kansas Men’s Clinic at 3636 N. Ridge Road in Wichita, is charged with:
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Conspiracy to distribute prescription drugs outside the course of medical practice (Counts 1 and 2).
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Unlawfully distributing oxycodone (Counts 3 through 15).
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Unlawfully distributing oxycodone, methadone and alprazolam (Count 16).
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Unlawfully distributing methadone and alprazolam, resulting in the death of a victim on July 24, 2015, identified in court records as N.M. (Count 17)
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Unlawful possession of a firearm in furtherance of drug trafficking (Count 18)
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Presenting false patient records to investigators (Count 19).
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Obstruction of justice (Count 20)
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Money laundering (Counts 21 through 31).
Also charged are:
Kimi Harper, 50, Kansas City, Mo. (Count 1).
Amanda Terwilleger, 33, Topeka, Kan., (Counts 1, 3, 7 and 9)
Jeremy Wojack, 35, Topeka, Kan., (Counts 1, 3, 7 and 9)
Jordan Allison, 27, Shawnee, Kan., (Counts 1 and 7).
Grant Lubbers, 29, Whitewater, Kan., (Count 2, 4 and 12)
Joel Torres, Jr. 28, Newton, Kan., (Counts 2, 4 and 5).
David Montano, 32, (Count 2 and Count 15)
Keith Attebery, 20, Newton, Kan., (Count 2, 8 and 15
According to the indictment, Henson was registered with the Drug Enforcement Administration to dispense prescription controlled substances. His registered addresses included the Kansas Men’s Clinic and a location at 1861 N. Rock Road, Suite 201.
The indictment alleges Henson:
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Wrote prescriptions in return for cash.
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Post-dated prescriptions.
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Wrote prescriptions without a medical need.
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Wrote prescriptions without a legitimate medical exam.
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Wrote prescriptions for people other than the ones who came to see him
If convicted, the crimes carry the following penalties:
Counts 1-16: A maximum penalty of 20 years and a fine up to $1 million on each count.
Count 17: Not less than 20 years and not more than life and a fine up to $1 million.
Count 18: A maximum penalty of five years and a fine up to $250,000.
Count 19: A maximum penalty of five years and a fine up to $250,000.
Count 20: A maximum penalty of one year and a fine up to $100,000.
Counts 21-25: A maximum penalty of 10 years and a fine up to $250,000 on each count.
Counts 26-31: A maximum penalty of 20 years and a fine up to $500,000 on each count.
The Drug Enforcement Administration’s Tactical Diversion Squad, the Newton Police Department, the Wichita Police Department and Internal Revenue Service-Criminal Investigation Division investigated. Assistant U.S. Attorney Mona Furst and Special Assistant U.S. Attorney Michelle Jacobs are prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
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Huron Man Sentenced in Bank FraudRead the Press Release
United States Attorney Randolph J. Seiler announced that a Huron, South Dakota, man convicted of bank fraud was sentenced on January 8, 2016 by U.S. District Judge Karen E. Schreier.
Kent Lee Bales, age 60, was sentenced to 5 years of probation and ordered to complete 100 hours of community service before the end of his term of probation. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Bales was indicted for Bank Fraud by a federal grand jury on December 2, 2014. He pled guilty to the offense on September 28, 2015.
Bales operated two companies with his brother: Stockman’s Auction Company Inc., and Bales Continental Commission Company in Huron. The companies are related entities and are in the business of selling cattle. Bales engaged in a check kiting scheme, whereby he wrote checks and transferred funds among the companies’ accounts at three different banks when he knew that the checks and transfers were not actually supported by sufficient funds. In doing so, he artificially inflated the balances in his accounts and used some of those funds for business purposes. Bales defrauded one of the banks out of approximately $1,820,948.46.
This case was investigated by Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Honduran National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DOMINGO HERRERA-VEGA, a/k/a “Herrera Domingo,” age 38, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to the Bill of Information, on or about October 20, 2015, HERRERA-VEGA was found in the United States after having been officially deported and removed on or about May 1, 2014.
HERRERA-VEGA faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Nannette Jolivette Brown set sentencing for February 11, 2016.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Hermosa Man Sentenced for Theft from the United States Forest ServiceRead the Press Release
United States Attorney Randolph J. Seiler announced that a Hermosa, South Dakota, man convicted of Theft of Government Property was sentenced on January 8, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Tobin Nettifee, age 37, was sentenced to 3 years of probation, and ordered to pay $800 in restitution and a $100 special assessment to the Federal Crime Victims Fund.
Nettifee was indicted for Theft of Government Property by a federal grand jury on April 21, 2015. Nettifee pleaded guilty on August 24, 2015.
The conviction stems from Nettifee stealing a chainsaw, firefighting equipment, radios, flight gear, microphones, a power generator, and power tools from the National Park Service between June 1, 2010, and August 28, 2014. Nettifee was an employee of the National Park Service and upon leaving employment, he did not return the items.
At a later date after Nettifee left National Park Service employment, he stole a Stihl chainsaw from a U.S. Forest Service pickup at the Custer station and pawned it in Rapid City, on June 16, 2014.
This case was investigated by the U.S. Forest Service Law Enforcement and Investigations. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Health Care Clinic Consultant and Medicare Biller Pleads Guilty in Miami for Role in $63 Million Health Care Fraud SchemeRead the Press Release
A former health care clinic consultant and Medicare biller pleaded guilty today in connection with a $63 million health care fraud and money laundering scheme involving a defunct Miami-area health care provider.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, made the announcement.
Nery Cowan, 53, of Miami, pleaded guilty before U.S. District Judge Beth Bloom of the Southern District of Florida to one count of conspiracy to commit money laundering. Cowan will be sentenced by Judge Bloom on March 25, 2016.
According to the factual basis, Cowan served as a consultant and Medicare biller for Greater Miami Behavioral Healthcare Center Inc. (Greater Miami), a partial hospitalization program (PHP) that purported to provide intensive treatment for severe mental illness, where Cowan directed the payment of kickbacks to patient brokers and others in exchange for Medicare beneficiary referrals. Cowan admitted that she received a percentage of the Medicare reimbursement from Greater Miami’s PHP as compensation.
Cowan admitted that she, along with co-defendants Dean Butler and Irina Mora, took great lengths to conceal kickback payments to shell companies owned by “patient brokers” who, on behalf of Greater Miami, solicited Medicare beneficiaries from assisted living facilities, halfway houses and drug courts located throughout the Southern District of Florida. Cowan, Butler and Mora disguised these monthly kickbacks as “outreach” or “marketing” payments through HNB-Stell Care Inc., a sham staffing company, she admitted.
According to court documents, from 2006 through 2014, Greater Miami billed Medicare approximately $63 million for purported mental health services.
On Nov. 30, 2015, Judge Bloom sentenced Butler to 16 years in prison and Mora to nine years in prison following their guilty pleas.
The FBI and HHS-OIG investigated this case, which 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 for the Southern District of Florida. Assistant Chief Allan J. Medina and Trial Attorneys Elizabeth Young and Kelly Graves of the Fraud Section are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are 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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Health Care Clinic Consultant and Medicare Biller Pleads Guilty in Miami for Role in $63 Million Health Care Fraud SchemeRead the Press Release
A former health care clinic consultant and Medicare biller pleaded guilty today in connection with a $63 million health care fraud and money laundering scheme involving a defunct Miami-area health care provider.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Nery Cowan, 53, of Miami, pleaded guilty before U.S. District Judge Beth Bloom of the Southern District of Florida to one count of conspiracy to commit money laundering. Cowan will be sentenced by Judge Bloom on March 25, 2016.
According to the factual basis, Cowan served as a consultant and Medicare biller for Greater Miami Behavioral Healthcare Center Inc. (Greater Miami), a partial hospitalization program (PHP) that purported to provide intensive treatment for severe mental illness, where Cowan directed the payment of kickbacks to patient brokers and others in exchange for Medicare beneficiary referrals. Cowan admitted that she received a percentage of the Medicare reimbursement from Greater Miami’s PHP as compensation.
Cowan admitted that she, along with co-defendants Dean Butler and Irina Mora, took great lengths to conceal kickback payments to shell companies owned by “patient brokers” who, on behalf of Greater Miami, solicited Medicare beneficiaries from assisted living facilities, halfway houses and drug courts located throughout the Southern District of Florida. Cowan, Butler and Mora disguised these monthly kickbacks as “outreach” or “marketing” payments through HNB-Stell Care Inc., a sham staffing company, she admitted.
According to court documents, from 2006 through 2014, Greater Miami billed Medicare approximately $63 million for purported mental health services.
On Nov. 30, 2015, Judge Bloom sentenced Butler to 16 years in prison and Mora to nine years in prison following their guilty pleas.
The FBI and HHS-OIG investigated this case, which 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 for the Southern District of Florida. Assistant Chief Allan J. Medina and Trial Attorneys Elizabeth Young and Kelly Graves of the Fraud Section are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are 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.
Harvey Man Indicted and Arrested on Child Pornography ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHRISTOPHER ORGERON, age 33, of Harvey, was indicted today for crimes involving the sexual exploitation of children.
According to today’s Indictment, beginning at an unknown time and continuing to on or about June 25, 2015, ORGERON knowingly received child pornography images and videos depicting the sexual victimization of minors. ORGERON was arrested and taken into federal custody today at his place of employment in Westwego by special agents with the U.S. Department of Homeland Security, Homeland Security Investigations.
If convicted, ORGERON faces a mandatory minimum sentence of five years and a maximum penalty of up to twenty years imprisonment, followed by up to a lifetime term of supervised release, and a $250,000 fine.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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."
U.S. Attorney Polite praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba.
Guatemalan Man Sentenced for Use of Interstate Facilities to Transmit Information About a MinorRead the Press Release
United States Attorney Randolph J. Seiler announced that a Guatemalan man convicted of Use of Interstate Facilities to Transmit Information About a Minor was sentenced on January 11, 2016, by U.S. District Judge Karen E. Schreier.
Jose Joaquin Oxlaj, age 27, was sentenced to 46 months in custody, followed by 5 years of supervised release, and $100 to the Federal Crime Victims Fund.
Oxlaj was indicted for the charge by a federal grand jury on May 5, 2015. He pled guilty on October 27, 2015.
Oxlaj responded to an advertisement on the Internet website known as Skout. Using his cell phone to send text messages, he agreed to meet at a hotel in Sioux Falls to have sex with a 15 year-old girl. Law enforcement officers arrested Oxlaj when he arrived at the scene and found him to be in possession of his cell phone and over $900 in cash.
This case was investigated by the South Dakota Internet Crimes Against Children task force. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Oxlaj was immediately turned over to the custody of the U.S. Marshals Service.
Former Toddville Resident Sentenced to Prison for Bankruptcy FraudRead the Press Release
A former Iowa resident, who made a series of fraudulent omissions in his Chapter 7 bankruptcy case, was sentenced last week to one year in federal prison.
Branden Patten, 40, of Colorado Springs, CO, formerly of Toddville, Iowa, received the prison term after a September 23, 2015, guilty plea to one count of making a false declaration in a bankruptcy proceeding.
In a plea agreement, Patten admitted that, in 2012, he was the owner and sole stockholder of a number of local companies, including National Glass, BLP (doing business as Apple Creek Carpet Care), and Patten Property Management. On August 15, 2012, after Patten and his companies experienced financial difficulties, a lender cut off his line of credit. Patten then filed a voluntary Chapter 7 bankruptcy petition in the United States Bankruptcy Court for the Northern District of Iowa.
In Patten’s bankruptcy filings, which were made under penalty of perjury, he knowingly failed to disclose that, in the two weeks preceding his bankruptcy filing, he had signatory authority over three bank accounts that were opened for his son’s newly formed corporations. Patten also failed to disclose he had transferred two vans equipped with carpet cleaning equipment to his son. Finally, Patten failed to disclose a new corporation he had formed in June 2012 called “Mission Slimpossible, LLC”, a boat lift he had purchased, a $1,000 deposit to a Canadian resort, and a lease interest in a BMW.
As a part of his plea agreement, Patten admitted in 2009 he had drawn down $50,000 on his line of credit and purchased a 26-foot boat and trailer that was titled in his own name. In his bankruptcy petition, which was later denied, Patten unsuccessfully tried to claim the boat as his exempt homestead in an attempt to shield the boat from his creditors.
Patten was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Patten was sentenced to twelve months’ imprisonment and fined $3,000. A special assessment of $100 was imposed, and he was ordered to repay the Federal Public Defender $3,300. Patten must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Patten was released on the bond previously set and is to surrender to the United States Marshal in Denver, Colorado, later this month.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the United States Department of Justice, Office of the United States Trustee, and the United States Postal Inspection Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-74-LRR. Patten’s bankruptcy filings are available in Case Number 12-01538.
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Former Marin County Mortgage Broker Sentenced to 41 Months in PrisonRead the Press Release
SAN FRANCISCO– Diane Cobb was sentenced to 41 months in prison yesterday for her role in a Ponzi scheme, announced Acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge David J. Johnson. The sentencing follows a guilty plea in which Cobb admitted to running a fraudulent scheme with co-defendant Paul Sloane Davis through which they profited by more than a million dollars.
Cobb, 58, of Ada, Ohio, was charged by indictment on October 31, 2013, for her part in the scheme. According to the indictment, Davis and Cobb operated a financial services company in Marin County known as DM Financial. Davis and Cobb, through DM Financial, allegely offered investors the opportunity to fund purported “bridge loans” to borrowers who, according to Davis and Cobb, needed short-term financing for residential real estate transactions. Cobb was charged with providing investors with, among other things, the identity of the purported borrower, a promissory note reflecting the amount and terms of the loan, and a deed of trust securing the loan to the borrower’s real property. Based upon these documents and other representations made by Davis and Cobb, the investors believed the defendants were directing the funds into secured loans with borrowers.
As part of her plea agreement, Cobb admitted that she falsely represented to investors that the bridge loans would be secured by, in part, residential property that the borrowers were purchasing with the bridge loans. Cobb also acknowledged falsely telling investors that they would receive regular interest payments from the borrowers and a return of principal after the loan period ended. Cobb admitted she knew all of these representations were false. Further, Cobb admitted that to convince the borrowers that the loans were legitimate, she prepared fake promissory notes and deeds of trust for the purported bridge loan agreements that she knew did not exist. Purported borrowers received none of the investors’ money and did not even know that their identities were being used to solicit investments. Instead, Davis and Cobb diverted substantially all the money—approximately $2.4 million—for their own personal use or to make interest payments to prior investors to keep them from discovering the true nature of the scheme.
On March 19, 2015, Cobb pleaded guilty to one count of conspiracy, in violation of 18 U.S.C. § 1349; four counts of mail fraud, in violation of 18 U.S.C. § 1341; and nine counts of wire fraud, in violation of 18 U.S.C. § 1343.
The sentence was handed down by the Honorable Charles R. Breyer, U.S. District Judge. Judge Breyer also sentenced the defendant to a three year period of supervised release, and ordered restitution of approximately $1.7 million to the victims of Davis’s offense. Davis pleaded guilty to the same charges and was sentenced by Judge Breyer to 36 months of prison.
Assistant U.S. Attorney Benjamin Kingsley is prosecuting the case with the assistance of Jessica Meegan. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Former Mamou, Louisiana, Police Chief Sentenced for Using Taser on Non-Combative PrisonerRead the Press Release
The Justice Department announced today that former Mamou, Louisiana, Police Chief Robert McGee, 44, was sentenced to one year and a day in prison for depriving an inmate at the Mamou jail of his federally protected rights by using a taser on the compliant inmate. McGee’s conviction was the result of a federal investigation into the illegal use of excessive force upon inmates at the Mamou jail that also led to the 2015 civil rights conviction of former Mamou Police Chief Gregory Dupuis for unlawfully using a taser against a different jail inmate.
McGee, of Mamou, pleaded guilty on Oct. 13, 2015, to one count of violation of an individual’s civil rights and was sentenced today by U.S. District Judge Richard T. Haik Sr. of the Western District of Louisiana. On Oct. 13, 2015, Judge Haik sentenced Dupuis to one year and a day in prison.
According to evidence presented at McGee’s plea hearing, McGee went to the jail on Aug. 6, 2010, to deal with an inmate who had been verbally, but not physically, disruptive. McGee engaged the inmate in conversation as a second officer unlocked the cell. After the cell door was opened, McGee pointed his taser at the inmate and discharged his taser into the inmate’s chest and abdomen area, even though the inmate was compliant and made no aggressive moves toward the officers or any other person. The five-second electric shock caused the inmate to fall against the wall of the cell and experience physical pain. At his plea hearing, McGee admitted that he knew at the time that his actions were unlawful.
McGee, who was elected Mamou police chief after this incident, resigned his position as chief on Oct. 8, 2015, as a result of the federal investigation.
“Law enforcement officers are entrusted with the authority to use force for legitimate law enforcement purposes, including maintaining discipline in jails,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “However, the defendant abused that trust by deploying a Taser on a compliant detainee.”
“Law enforcement officers have a duty to ensure that those in their custody are treated fairly and humanely when taken into custody,” said U.S. Attorney Stephanie A. Finley of the Western District of Louisiana. “Mr. McGee breached that trust and violated his oath by using excessive force on an incarcerated individual who complied with orders.”
The case was being investigated by the FBI and the Louisiana State Police. The case is being prosecuted by Trial Attorneys Stephen Curran and Mary Hahn of the Civil Rights Division’s Criminal Section, and Assistant U.S. Attorneys Myers P. Namie and Robert Abendroth of the Western District of Louisiana.
Former Mamou police chief sentenced to 12 months in prison for using taser on non-combative prisonerRead the Press Release
WASHINGTON – The Justice Department and U.S. Attorney Stephanie A. Finley announced today that former Mamou Police Chief Robert McGee was sentenced today to one year and a day in prison for depriving an inmate at the Mamou jail of his federally protected rights. The sentence relates to one incident where McGee used a taser on a compliant inmate. McGee’s conviction was the result of a federal investigation into the illegal use of excessive force on inmates at the Mamou jail that also led to the 2015 civil rights conviction of former Mamou Police Chief Gregory Dupuis for unlawfully using a taser against a different inmate.
McGee was sentenced by U.S. District Judge Richard T. Haik Sr. on one count of violating an individual’s civil rights. He was also sentenced to one year of supervised release.
According to evidence presented at McGee’s October 13, 2015 plea hearing, McGee went to the jail on Aug. 6, 2010, to deal with an inmate who had been verbally, but not physically, disruptive. McGee engaged the inmate in conversation as a second officer unlocked the cell. After the cell door was opened, McGee pointed his taser at the inmate and discharged his taser into the inmate’s chest and abdomen area, even though the inmate was compliant and made no aggressive moves toward the officers or any other person. The five-second electric shock caused the inmate to fall against the wall of the cell and experience physical pain. At his plea hearing, McGee admitted that he knew at the time that his actions were unlawful.
McGee, who was elected Mamou police chief after this incident, resigned his position as chief on Oct. 8, 2015, as a result of the federal investigation. On Oct. 13, 2015, Haik sentenced Dupuis to one year and a day in prison.
“Law enforcement officers are entrusted with the authority to use force for legitimate law enforcement purposes, including maintaining discipline in jails,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “However, the defendant abused that trust by deploying a taser on a compliant detainee.”
“Law enforcement officers have a duty to ensure that those in their custody are treated fairly and humanely,” Finley stated. “Mr. McGee breached that trust and violated his oath by using excessive force on an incarcerated individual who complied with orders.”
The FBI and the Louisiana State Police investigated the case. Trial Attorneys Stephen Curran and Mary Hahn of the Civil Rights Division’s Criminal Section, and Assistant U.S. Attorneys Myers P. Namie and Robert Abendroth of the Western District of Louisiana are prosecuting the case.
Former Allentown City Controller Admits Role in Corruption SchemeRead the Press Release
PHILADELPHIA – Mary Ellen Koval, 64, of Allentown, PA, pleaded guilty today to conspiracy to commit honest services fraud. During the guilty plea hearing, Koval admitted the following:
Koval and Public Official #3 were public officials who represented the City of Allentown through elective offices. Until her resignation last week, Koval had been the City Controller since 2012. She was re-elected to a second four-year term in November 2015.
Public Official #3 directed other public officials to identify for him individuals and entities who had profited from their dealings with the City of Allentown or who sought favorable treatment from the City of Allentown (“the vendors”). Public Official #3 made clear to certain vendors, including Ramzi Haddad, Donor #1 and Donor #2 that providing him with campaign contributions was a necessary condition for receiving certain favorable treatment from the City of Allentown. Indeed, Public Official #3 caused, agreed to cause, and attempted to cause other public officials, including Koval, Finance Director Gary Strathearn, and Assistant City Solicitor Dale Wiles, to take official action favorable to certain actual and potential donors to Public Official #3’s political campaigns.
Upon learning of these practices, Koval should have put a stop to them. As City Controller, she had a duty to exercise independent financial oversight of all City finances, including all expenditures by Public Official #3, and as a public official she owed the public a duty of honest services. But Koval relied on Public Official #3 for political support, including campaign contributions and appointments to boards, commissions, and authorities including Allentown Parking Authority’s Board of Directors, of which she became Chair in January 2015. Rather, than root out, report, and counter Public Official #3’s criminal activity, she instead agreed to enable, aid, and participate in it.
Knowing that each of them wanted favorable treatment from the City of Allentown in return, Public Official #3 asked vendors, including Donor #1, Donor #2 and Ramzi Haddad, to raise large amounts of campaign contributions for him, which they did. Koval agreed to use her official authority to help each of these donors because Public Official #3 wanted to reward and/or incentivize their campaign contributions. For example, Public Official #3 took numerous steps to attempt to award a “no bid” city contract to Donor #1’s company, despite the concerns and objections of numerous other public officials in Allentown. Because of Public Official #3’s desire to reward and incentivize Donor #1’s contributions, Koval tried to help Donor #1 through her position as City Controller and also through her influence with the Parking Authority. In furtherance of the conspiracy with Public Official #3, Koval also used her power and authority as City Controller to help Donor #2 and Haddad. After Koval asked that Donor #2 also reward her with a campaign contribution for her participation in the conspiracy, Donor #2 obliged with a donation for Koval’s re-election effort.
Koval and other members of the conspiracy attempted to conceal the conspiracy by making materially false statements to FBI agents who were investigating the conspiracy. But within a few days of her initial interview with the FBI, Koval met with the agents in order to confess her guilt and take responsibility for her wrongdoing. She then announced her resignation from the position of Controller for “the best interests of the City of Allentown and its residents.”
After accepting the guilty plea, United States District Judge Juan R. Sanchez scheduled a sentencing hearing for April 19, 2016. Strathearn, Wiles, and Haddad all previously pleaded guilty. Strathearn and Haddad are scheduled to be sentenced on April 14, 2016. Wiles is scheduled to be sentenced on March 2, 2016. Koval, Strathearn, and Wiles each face a maximum possible sentence of 20 years in prison, a fine, three years of supervised release, and a $100 special assessment. Haddad faces a maximum possible sentence of 5 years in prison, a fine, three years of supervised release, and a $100 special assessment.
This case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the Pennsylvania State Police. It is being prosecuted by Assistant United States Attorneys Joe Khan and Nancy Beam Winter.
Federal Jury Convicts Ringleader of Bank Fraud and Identity Theft SchemeRead the Press Release
ALEXANDRIA, Va. – Dae Hyuck Ko, aka James Ko, aka Minghua Hong, 59, was convicted yesterday evening by a federal jury on one count of conspiracy to commit bank fraud, 19 counts of bank fraud, and four counts of aggravated identity theft.
Ko was indicted on June 24, 2015, and a superseding indictment was returned on Dec. 22, 2015. According to court records and evidence presented at trial, Ko was the leader and organizer of a sophisticated bank fraud and identity theft scheme that targeted banks and individual victims throughout the nation. The victims, like Ko and the co-conspirators he recruited, were of Korean ethnicity. Ko directed his co-conspirators to open numerous checking accounts, credit accounts, and personal lines of credit using the stolen identities of these victims. Ko then directed the complicated movement of money between these accounts to build up a banking history, which ultimately enabled him to deposit bad checks and cash out those accounts before the checks failed to clear. Ko enforced his control of the conspiracy through violence when necessary, including by having one co-conspirator beaten and sent to the emergency room with a broken nose and fractured eye socket. Three of Ko’s co-conspirators—Jaejoon Song, Jungtaek Kim, and Minho Yang—have previously pleaded guilty in the case and have been sentenced to 66, 40, and 33 months, respectively.
Ko will be sentenced on April 29, 2016, and faces a maximum penalty of 30 years in prison on each of the bank fraud and conspiracy charges, as well as a mandatory consecutive two years in prison on at least one of the aggravated identity theft charges. 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 Maria Kelokates, Acting Inspector in Charge of the U.S. Postal Inspection Service, Washington Division, made the announcement after the verdict was accepted by U.S. District Judge Liam O’Grady. Assistant U.S. Attorneys Grace L. Hill and Kosta S. Stojilkovic are 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. 1:15-cr-109.
Federal Indictments in Gun Store BurglariesRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned two indictments in connection with an ongoing investigation into schemes to burglarize three gun stores in Baton Rouge and Prairieville, Louisiana.
CHARLES K. EVANS, age 20, and GENO EUGENE LYONS, age 24, were both indicted for conspiring to steal firearms, to possess and sell stolen firearms, and to receive and possess unregistered machine guns and silencers. EVANS and LYONS are also charged with stealing firearms from federally licensed firearms dealers and with receipt and possession of unregistered firearms.
According to the Indictments, EVANS and LYONS conspired together to steal firearms from Bowie Outfitters in Baton Rouge, Hebert Guns in Prairieville, and Meaux Guns in Baton Rouge. The Indictments allege that on June 9, 2015, EVANS and LYONS, along with a third individual, forced entry into Bowie Outfitters and stole approximately thirty-two (32) firearms. The Indictments further allege that on July 5, 2015, EVANS and LYONS, along with a third individual, unsuccessfully attempted to steal firearms from Hebert Guns, then drove to Meaux Guns, where they forced entry and stole approximately forty-three (43) firearms, including two silencers. The Indictments allege that EVANS and LYONS subsequently sold firearms that they had stolen from Bowie Outfitters and Meaux Guns.
U.S. Attorney Walt Green stated: “When guns are stolen and sold on the street, it opens an illicit avenue of commerce that allows gangs, drug traffickers, and felons to arm themselves. Such conduct drastically heightens the risk of gun violence in our neighborhoods, threatening our citizens and the law enforcement officers charged with protecting them. Our office treats the conduct alleged here with the utmost seriousness, particularly because it undermines the commendable efforts of federal, state, and local law enforcement to rid the scourge of deadly gun violence from our streets. Our office will continue to vigorously prosecute any individuals who illegally traffic in firearms.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana. The investigation is being led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with substantial assistance from the Baton Rouge Police Department, the East Baton Rouge Sheriff’s Office, and the Ascension Parish Sheriff’s Office.
This matter is being prosecuted by Assistant United States Attorneys Ryan Crosswell and Peter Smyczek.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Facebook Felon Sentenced to Serve 188 Months in Prison for Possessing Firearm in PhotosRead the Press Release
KNOXVILLE, Tenn. – Malik First Born Allah Farrad, also known as Marvin Maurice Buckles, 41, of Johnson City, Tenn., was sentenced on Jan. 14, 2016, by the Honorable Thomas A. Varlan, Chief U.S. District Court Judge, to serve 188 months in federal prison for being a felon in possession of a firearm. There is no parole in the federal system.
In the fall of 2013, officers with the Johnson City Police Department began an investigation into suspected criminal conduct by Farrad. In so doing, law enforcement examined his use of social media, specifically Facebook. Upon review, investigators found that in October 2013 Farrad uploaded a photograph of three handguns placed atop the toilet seat in his bathroom. Having previously sustained numerous felony convictions for drug, gun, and violent offenses, it was illegal for him to be in possession of such weapons.
Subsequently, investigators, working in conjunction with the Federal Bureau of Investigation (FBI), obtained a search warrant for the entirety of Farrad’s Facebook account. Once executed, law enforcement discovered a variety of photographs showing him holding, posing with, and displaying a Springfield, Model XD, .45 caliber, semiautomatic pistol. The pictures were taken from inside Farrad’s bathroom and were uploaded in quick succession in October 2013.
At trial, exhaustive testimony described the distinguishing characteristics of the firearm seen in the seized Facebook photos. Those features both confirmed the identity of the firearm, and dispelled any possibility of it being a toy, fake, replica, or imitation. Consequently, following a two-day jury trial, Farrad was found guilty as charged.
This investigation was the product of a partnership between the Johnson City Police Department and FBI. Assistant U.S. Attorney Nick Regalia represented the United States.
This case was brought as part of Project Safe Neighborhoods (“PSN”), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
This case was also brought as part of the Safe Streets Violent Crimes Initiative, a program which combines the efforts of federal, state, and local agencies in order to stop violent felons from endangering our communities.
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Eight Men Indicted on Heroin ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a grand jury in Harrisburg indicted eight men yesterday for possessing, distributing, and conspiring to possess and distribute substantial amounts of heroin.
According to United States Attorney Peter Smith, the indictment charges:
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Jose Perez Delgado, age 32;
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Addan Brito Torres, age 28;
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Yovelin Mendez Marte, age 36;
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Rashawn Spriggs, age 28;
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Deajon Spriggs, age 18;
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Joshua Baker, age 19, all of Chambersburg;
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Brandon Morant, age 26, and
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Jerthione Bell, age 28, both of Lancaster
with distributing more than 100 grams of heroin and conspiring to distribute more than 1,000 grams of heroin from October 1, 2015 to January 7, 2016 in Chambersburg, Franklin County and elsewhere.
The indictment was unsealed following the arrests of Bell and Morant yesterday. Delgado, Brito-Torres and Marte were arrested on Friday, January 8, 2016. Rashawn Spriggs, Deajon Spriggs and Joshua Baker were arrested last week on local charges related to the federal indictment and will appear in federal court for arraignment on January 20, 2016. All defendants are in custody.
The investigation is being conducted by the Drug Enforcement Administration and the Franklin County Drug Task Force. The case is being prosecuted by Assistant United States Attorney William A. Behe.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment with a mandatory minimum 10 year term of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Eight Indicted in Human Trafficking ConspiracyRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles announced today a 26-count indictment charging Damon Jackson, a/k/a “DJ”, a/k/a “Daddy Frost”, Tremel Black, a/k/a “Sincere”, a/k/a “New York”, Da-Shun Shukur Curry, a/k/a “Dae Dae”, Bakari Shahid McMillan, a/k/a “Bizzle”, Kerry Taylor, a/k/a “KJ”, Desmond Singletary, a/k/a “Six”, Howard Parker, a/k/a “Poppa”, Ryan Shaquon Turner, a/k/a “Gotti”, a/k/a “Qweezy” with their roles in a Conspiracy to Commit Sex Trafficking, a violation of Title 18, U. S. C. §1956(a)(1). In addition to the charge of conspiracy, each defendant was charged with substantive counts of Sex Trafficking.
Damon Jackson, age 23, of Columbia, was charged with two counts of Trafficking of a Minor for Sex Involving Force, Fraud, and Coercion, a violation of Title 18, U. S. C. § 1591(e)(2) and §1591(a)(1), (a)(2), (b)(1), and 2, and six counts of Sex Trafficking by Force, Fraud, and Coercion, a violation of Title 18, U. S. C. §1591(a)(1), (a)(2), (b)(1), and 2.
Bakari Shahid McMillan, age 23, of Columbia, was charged with two counts of Trafficking of a Minor for Sex Involving Force, Fraud, and Coercion, a violation of Title 18, U. S. C. § 1591(e)(2) and §1591(a)(1), (a)(2), (b)(1), and 2, and one count of Sex Trafficking by Force, Fraud, and Coercion, a violation of Title 18, U. S. C. §1591(a)(1), (a)(2), (b)(1), and 2.
Kerry Taylor, age 21, of Columbia, was charged with two counts of Trafficking of a Minor for Sex Involving Force, Fraud, and Coercion, a violation of Title 18, U. S. C. § 1591(e)(2) and §1591(a)(1), (a)(2), (b)(1), and 2, one count of Sex Trafficking by Force, Fraud, and Coercion, a violation of Title 18, U. S. C. §1591(a)(1), (a)(2), (b)(1), and 2, and one count of Sexual Exploitation of a Child, a violation of Title 18, U.S.C. § 2251(a) and (e).
Tremel Black, age 31, of Columbia, was charged with one count of Trafficking of a Minor for Sex Involving Force, Fraud, and Coercion, a violation of Title 18, U. S. C. § 1591(e)(2) and §1591(a)(1), (a)(2), (b)(1), and 2, and one count of Sex Trafficking by Force, Fraud, and Coercion, a violation of Title 18, U. S. C. §1591(a)(1), (a)(2), (b)(1), and 2.
Howard Parker, age 24, of Columbia, was charged with one count of Trafficking of a Minor for Sex Involving Force, Fraud, and Coercion, a violation of Title 18, U. S. C. § 1591(e)(2) and §1591(a)(1), (a)(2), (b)(1), and 2, and one count of Sex Trafficking by Force, Fraud, and Coercion, a violation of Title 18, U. S. C. §1591(a)(1), (a)(2), (b)(1), and 2.
Da’Shun Shukur Curry, age 23, of Columbia, was charged with three counts of Trafficking of a Minor for Sex Involving Force, Fraud, and Coercion, a violation of Title 18, U. S. C. § 1591(e)(2) and §1591(a)(1), (a)(2), (b)(1), and 2.
Desmond Singletary, age 30, of Columbia, was charged with one count of Sex Trafficking by Force, Fraud, and Coercion, a violation of Title 18, U. S. C. §1591(a)(1), (a)(2), (b)(1), and 2.
Ryan Shaquon Turner, age 22, of Columbia, was charged with two counts of Sex Trafficking by Force, Fraud, and Coercion, a violation of Title 18, U. S. C. §1591(a)(1), (a)(2), (b)(1), and 2.
The maximum sentence each defendant could receive for Conspiracy to Commit Sex Trafficking is life in prison. The minimum sentences each defendant could receive for either Trafficking of a Minor for Sex Involving Force, Fraud, and Coercion and Sex Trafficking by Force, Fraud, and Coercion is 15 years in prison and the maximum sentence is life in prison. Additionally, the minimum sentence Taylor could receive for Sexual Exploitation of a Child is 15 years in prison and the maximum sentence is life in prison.
U.S. Attorney Bill Nettles said, “The prosecution of these types of cases is more than a job. It is our reason for being. To say we will aggressively prosecute this case and charges of this nature is one of history’s great understatements.”
“Human trafficking is a form of modern-day slavery. Homeland Security Investigations continues to pursue the perpetrators of this heinous crime as one of its highest priorities, via a coordinated global effort with our federal, state and local law enforcement partners,” said Special Agent in Charge of HSI Atlanta Nick Annan. “Over the past two years HSI has doubled its number of human trafficking arrest and we will continue our relentless pursuit 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.”
The case was investigated by the Homeland Security Investigations and City of North Charleston Police Department’s Human Trafficking Unit. Assistant United States Attorney Matt Austin of the Charleston office is prosecuting the case.
Mr. Nettles stated that the charges in this Indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
Information regarding human trafficking should be reported to the National Human Trafficking Resource Center (NHTRC), Polaris – Freedom Happens Now, 24-hour National Hotline: 1-888-373-7888.
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Detroit One Collaboration Leads to Racketeering Indictment of Violent Gang Member from Detroit's East SideRead the Press Release
The collaboration of local, state and federal law enforcement under the Detroit One program has led to racketeering charges against a member of the Seven Mile Blood street gang, United States Attorney Barbara L. McQuade announced today. Joining McQuade in the announcement were Detroit Mayor Mike Duggan, Detroit Police Chief James Craig and Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division. Charged today was Billy Arnold, 29, of Detroit, an alleged member of the SBM, with attempted murder in aid of racketeering; assault with a dangerous weapon in aid of racketeering; use of a firearm during, and in relation to, a crime of violence; and felon in possession of a firearm. Two other Detroit men, Steven Arthur, Jr., 26, and Eugene Fisher, 35, were also charged with being felons in possession of a firearm. According to the superseding indictment returned today, the gang operates on the east side of Detroit between Seven and Eight Mile Roads and between Gratiot Avenue and Kelly Road in the 48205 zip code. Seven Mile Blood (“SMB”) members have claimed this area as their territory and refer to it as the “Red Zone” or “4-8-2-0-Die” in some of their rap lyrics. The indictment alleges that SBM engaged in a gang war against an alliance of other gangs operating on Detroit’s east side stemming from a murder that occurred in July 2014. During the past 18 months, these rivals posted “hit lists” on social media and violently attacked each other. This shooting war has caused homicide and non-fatal shooting statistics on Detroit’s east side to be considerably higher than the rest of the city. Today’s indictment resulted from the investigation of one of the shooting incidents in the feud between these gangs. “The Detroit One partnership is focusing on violent street gangs, and today's indictment is just the first step in dismantling the group that calls themselves the Seven Mile Bloods and its rivals,” McQuade said. “When we became aware of the retaliation that was occurring between these gangs last year, the Detroit Police and other partners poured resources into stopping the gun violence in this neighborhood. These efforts resulted in a dramatic decrease in homicides and non-fatal shootings in the 9th precinct during in the last several months.” "As the city of Detroit continues its march towards promising downtown and surrounding area re-development, the sense of optimism for the future of Detroit is enhanced with every successful investigation and prosecution of those responsible for the violence that all too often plagues Detroit neighborhoods," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "Today's indictment reinforces the commitment of the FBI, in partnership with the Detroit Police Department and the USAO, to target gang members and others responsible for the violence, particularly gun and drug related violence, that diminishes the quality of life in this community." “The Detroit One partnership’s concerted efforts has once again proved to be effective in ensuring the safety of our citizens and communities” said Chief James Craig. “The ongoing initiative will continue to target, disrupt and dismantle all gangs, as well as other violent offenders that pose a threat to the safety and wellbeing of our City.” Under the Detroit One Initiative, and through the lead efforts of the Detroit Police Department and the FBI Violent Gang Task Force, which consists of representatives of Detroit Police Department, U.S. Border Patrol, Homeland Security Investigations, Customs and Border Patrol, Michigan Department of Corrections, and Michigan State Police, investigators were able to bring together separate probes into various members of this organization and its activities into one encompassing investigation. Detroit One is a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. By working together, local, state, and federal law enforcement is striving to maximize its ability to identify and arrest the persons and groups initiating gun violence in Detroit. This indictment is the latest in a string of charges from the United States Attorney’s Office and Wayne County Prosecutor’s Office during the last two years involving violent street gangs in the city of Detroit, including: - Nine members of the Bounty Hunter Bloods street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering; - Thirteen members of the Latin Counts street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering; - Fourteen members of the Phantom Outlaw Motorcycle Club / Vice Lords street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering; - Four members of the Vice Lords in state court for armed robbery and a Vice Lord leader charged under the federal street gang statute for his role in that armed robbery; - Three members of the Band Crew street gang charged under the Michigan gang felony statute for violent acts in furtherance of their gang activities and eight members of the Band crew for federal racketeering conspiracy and other violent acts in furtherance of racketeering; - Ten members of the Related Through Money street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering; and - Eight members of the Traveling Vice Lords for federal racketeering conspiracy and other violent acts in furtherance of racketeering. These charges are just some of the tangible and significant results of this joint effort. Most significantly, Detroit has seen a reduction in homicides every year since the Detroit One collaboration began in 2013, and a 24 percent total reduction since 2012.Davenport Man Sentenced to Prison for Felon in Possession of a Firearm ChargeRead the Press Release
DAVENPORT, IA – On January 13, 2016, Tiano Nishan Trice, 34, of Davenport, Iowa, was sentenced by Senior United States District Court Judge James E. Gritzner to 90 months in prison for a felon in possession of a firearm charge, announced Acting United States Attorney Kevin E. VanderSchel. Trice was ordered to serve three years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund. Trice was also ordered to forfeit the Smith and Wesson 40-caliber handgun involved in the offense.
Trice pleaded guilty to the felon in possession of a firearm charge on September 8, 2015. According to the plea agreement, on April 12, 2015, Davenport Police officers responded to a residence where a female victim reported Trice had threatened her and held a gun to her head. The victim was able to direct officers to the gun, which Trice had hidden under a bedroom mattress. The gun was traced and found to have been stolen from a garage in Davenport. Prior to April 2015, Trice was convicted of delivery of crack cocaine, a felony, in 2005.
This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
Couple Sentenced to 5 Years in Prison for Trafficking Crack CocaineRead the Press Release
PROVIDENCE, R.I. – Luz Ramirez, 28, and Ralph Quinones, 38, of Central Falls, were sentenced today in U.S. District Court to 60 months in federal prison for conspiring to traffic crack cocaine, announced United States Attorney Peter F. Neronha and Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Ramirez and Quinones to serve 4 years supervised release upon completion of their prison terms. Ramirez pleaded guilty on August 12, 2015, and Quinones pleaded guilty on September 3, 2015, to conspiracy to distribute 28 grams or more of crack cocaine.
According to court documents and information presented to the court, in August 2014, as part of an ongoing investigation by the FBI into the trafficking of crack cocaine in Rhode Island, an individual assisting FBI agents arranged for the purchase of crack cocaine from Ralph Quinones. On August 15, 2014, the individual purchased 10.17 grams of crack cocaine from Quinones. On August 21, 2014, the individual purchased 11.67 grams of crack cocaine from Quinones.
According to information presented to the court, Quinones was arrested and detained on September 8, 2015, on an unrelated disorderly conduct charge. Later that same day, after speaking with Quinones by telephone from the ACI, Luz Ramirez contacted the individual who Quinones had sold crack cocaine to on August 15 and August 21, and told the individual that she would be taking care of Quinones’ customers. On September 9 Ramirez sold the individual 25.2 grams of crack cocaine. On October 8 Ramirez sold the individual 8.31 grams of crack cocaine.
Luz Ramirez and Ralph Quinones were arrested on March 6, 2015, and detained in federal custody.
The case was prosecuted by Assistant U.S. Attorney Ly T. Chin.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Connecticut Attorney Admits Stealing More Than $600k from Client’s Trust AccountRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that HAROLD JAMES PICKERSTEIN, 69, of Fairfield, Connecticut, waived his right to indictment and pled guilty today before U.S. District Judge Victor A. Bolden in federal court in Bridgeport, Connecticut, to one count of mail fraud related to his theft of more than $600,000 from a client’s investment account.
According to court documents and statements made in court, PICKERSTEIN, an attorney, represented an individual (“Victim 1”) and served as the trustee for an investment account (the “Trust Account”) held for the benefit of Victim 1. Between approximately August 2011 and October 2013, PICKERSTEIN withdrew $613,216.20 from the Trust Account without authorization from Victim 1 and used the funds to pay for personal expenses, including payments to state and federal tax authorities to satisfy his tax liabilities.
In November 2013, PICKERSTEIN was to disburse all remaining funds in the Trust Account to Victim 1. After Victim 1 questioned PICKERSTEIN as to why the disbursed funds were less than Victim 1 expected, PICKERSTEIN sent a letter to Victim 1 in which he falsely represented that a portion of the Trust Account’s funds had been deducted to pay legal bills.
PICKERSTEIN faces a maximum term of 20 years in prison, a maximum fine of approximately $1.2 million, and $633,410.04 in restitution.
PICKERSTEIN resigned from the Connecticut bar in December 2014.
This matter has been investigated by Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney William J. Nardini.
The U.S. Attorney for the Southern District of New York has been overseeing the case because of the recusal of the U.S. Attorney’s Office for the District of Connecticut.
Clover Gang Member Sentenced to over 20 Years on Federal Firearm and Drug ChargesRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Joseph Matthew Polk, age 24, of Clover, South Carolina was sentenced to a total of 250 months (20.8 years) imprisonment today in federal court. Last August, Polk plead guilty to possession with intent to distribute and distribution of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime (to wit: possession with intent to distribute and distribution of marijuana), all in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C) and Title 18, United States Code, Section 924(c). Under the plea agreement, Polk agreed to a total sentence of 240 months (20 years) imprisonment and an appropriate term of supervised release to follow, comprised of 180 months (15 years) imprisonment on the possession with intent to distribute and distribution of methamphetamine charge and 60 months (5 years) consecutive imprisonment on the firearm charge. Polk also faced a separate term of imprisonment stemming from his violation of a prior federal sentence. Polk received an additional 10 months imprisonment consecutive on that sentence. Senior United States District Joseph F. Anderson, Jr. imposed the sentences.
Evidence presented at the earlier change of plea hearing established that March 19, 2015, at his residence in Clover, South Carolina, Polk, while armed with a Harrington & Richardson .32 caliber revolver, sold a quantity of marijuana to a confidential informant. The following day, March 20, 2015, Polk, while armed with a Smith & Wesson 9mm handgun, sold a quantity of methamphetamine to a confidential informant. Thereafter, on March 24, 2015, Polk, while armed with a Smith & Wesson 9mm handgun, sold a quantity of methamphetamine to a confidential informant. On that date, a young child was observed in the same room where the distribution occurred and while Polk waved around the 9mm handgun. Each of the three distributions of drugs was recorded on audio and video by local law enforcement officers. Polk was arrested on state charges on April 9, 2015, and during the arrest, officers recovered the Smith & Wesson 9mm handgun, along with gang paraphernalia, and a residue amount of methamphetamine. After being advised of his rights, which he waived, Polk admitted to being in possession of firearms and being a dues collector for a local gang. Polk is prohibited under federal law from possessing firearms and/or ammunition based upon his prior federal conviction for possession of firearm by a felon and his prior state convictions for burglary 2nd degree and grand larceny.
At the time of the March 2015 offenses, Polk was on federal supervised release from a 2014 federal conviction for felon in possession of a firearm out of the Spartanburg Division. Therefore, he also faced a revocation of his prior federal supervised release. After sentencing Polk to 240 months (20 years) imprisonment on the new charges, Judge Joseph F. Anderson, Jr., revoked Polk’s prior term of federal supervised release and sentenced him to an additional 10 months imprisonment, which will be served consecutive to the 240 months imprisonment. Thus, Polk will serve a total of 250 months imprisonment and then be on federal supervision for 5 years.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the York County Multi-jurisdictional Drug Enforcement Unit and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Chesterfield Man Sentenced to 15 Years in Child Pornography CaseRead the Press Release
RICHMOND, Va. – Zebulon Resolve Wendt, 34, of Chesterfield County, a former U.S. Navy sailor and Chesterfield County school bus driver, was sentenced today to 180 months in prison for producing child pornography of a local juvenile whom he had babysat and sexually abused and exploited on numerous occasions. Wendt was also sentenced to a lifetime of supervised release.
Wendt pleaded guilty on Oct. 14, 2015. According to court documents, Canadian law enforcement detected Wendt after he uploaded several images of a juvenile female engaged in sexually explicit conduct from his Chesterfield residence to an Internet website. Federal agents with the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), subsequently executed a search warrant at Wendt’s residence where they recovered several computers, external hard drives, and other computer equipment. A subsequent forensic examination of the seized items revealed thousands of images and videos of a juvenile female engaged in sexually explicit conduct that Wendt himself had taken with a digital camera and saved onto his computer equipment. Evidence showed that he then distributed these images and videos to other individuals over the Internet.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark Herring, Attorney General of Virginia; and Clark E. Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI), made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Special Assistant U.S. Attorneys Stacey E. Rohrs and Samuel E. Fishel prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-CR-095.
Charleston Man Charged with Trafficking in Counterfeit Sports ApparelRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina------United States Attorney Bill Nettles announced that Kenneth Wayne Wilkinson, age 59, of Charleston, has been charged in a single-count Information with trafficking in counterfeit sports apparel in 2012 and 2013.
The case was investigated by Special Agents with Homeland Security Investigations (HSI). Assistant United States Attorney Eric Klumb is prosecuting the case.
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Canadian Marijuana Trafficker Receives Life ImprisonmentRead the Press Release
SYRACUSE, NEW YORK – Michael C. “Mickey” Woods, age 45, of Cornwall, Ontario, was sentenced today to life imprisonment for running a drug trafficking organization that made more than $10 million in profits in a single year.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration.
Woods and co-defendant Gaetan Dinelle were convicted following a six-day jury trial in July 2015, which was presided over by Senior United States District Judge Norman A. Mordue. Judge Mordue is scheduled to sentence Dinelle on January 21.
The evidence at trial proved that Woods, assisted by Dinelle, ran a vast international marijuana operation from Cornwall, Ontario, Canada, which operated from about 2005 until 2008. During the trial in federal court in Syracuse, witnesses testified that Woods procured large quantities of marijuana from his sources in Canada, and with Dinelle, arranged for it to be smuggled across the border into the United States. Couriers selected and supervised by Woods and Dinelle delivered the marijuana to buyers throughout the Eastern United States.
The prosecution of Woods, which began with an indictment in November 2008, involved the extradition of 15 people from Canada, including Woods and Dinelle, in one of the largest uses of the extradition treaty between the two countries in a single case.
“Because of the excellent and sustained cooperation among U.S. and Canadian authorities, Mickey Woods received a sentence befitting the vast drug trafficking organization that he ran,” stated U.S. Attorney Richard S. Hartunian. “This case shows how committed we are to bringing cross-border criminals to justice.”
Between 2006 and February 2008, law enforcement officers seized approximately $2 million dollars in currency representing proceeds of marijuana trafficking and approximately 400 kilograms (nearly 1,000 pounds) of marijuana from couriers working for Woods and Dinelle. Evidence during the trial included law enforcement estimates that the Woods organization distributed more than 22,000 pounds of high-grade marijuana with gross wholesale receipts of $47.3 million.
This case was investigated by the U.S. Drug Enforcement Administration and was prosecuted by Assistant U.S. Attorney Carl G. Eurenius. The Criminal Division’s Office of International Affairs Acting Associate Director, Lisa Roberts, and former International Affairs Specialist Benjamin Kurland provided significant assistance throughout the extradition stage of the prosecution.
Camouflaged Canadian Charged with Smuggling 182 Pounds of Prescription Drugs Across Northern BorderRead the Press Release
The Office of the United States Attorney for the District of Vermont announced today that a Cedrick Bourgault-Morin, 21, of Quebec, Canada has been charged by a criminal complaint with possessing with intent to distribute 182 pounds of Aprazolam, commonly known as Xanax, a schedule IV controlled substance.
According to the affidavit filed with the complaint, at approximately 1:00 am on January 13, 2016, the Swanton Sector Communications Center of U.S. Customs and Border Protection received notification of activity on the railroad tracks which lead from the international border into the village of North Troy. This area is known to be used by smuggling organizations to smuggle contraband into the United States. Three United States Border Patrol agents responded to the area. One agent tracked footprints in the snow from the border, while two others positioned themselves south of the suspected smuggler. The southern agents observed Bourgault-Morin wearing white camouflage clothing, and walking on the tracks. Bourgault-Morin was pulling a sled behind him, loaded with a large object wrapped in white camouflage. As Bourgault-Morin began to conceal the sled and its contents with snow, all three agents approached him, apprehended him, and seized the contents of the sled. The agents discovered a large duffle bag on the sled. Upon further inspection at the Newport Station, the agents discovered the duffle to contain approximately 300 vacuum-sealed plastic bags containing pills. The pills bear markings consistent with those used to identify Xanax, which is a brand name for Aprazolam. Aprazolam is a benzodiazepine class of psychoactive drug typically prescribed as an anti-anxiety medication. The 300 bags of pills weighed approximately 182 pounds, and have a value of approximately $1.6 million.
If convicted, Bourgault-Morin faces a maximum of five years of imprisonment and a $250,000 fine. The actual sentence, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines.
The United States Attorney emphasizes that the charge in the complaint is merely an accusation, and that the defendant is presumed innocent unless and until he is proven guilty.
“This is a great example of some of the training and unique skills our agents use to perform their border security mission,” said U.S. Border Patrol Agent-in-Charge Fernando Beltran. “I commend these agents for their continued vigilance in tracking criminals, and for seizing harmful drugs before they get into our communities.”
United States Attorney Eric S. Miller commended the investigative efforts of the United States Border Patrol.
The United States is represented in this matter by Assistant U.S. Attorney Jonathan Ophardt. Bourgault-Morin is represented by the Office of the Federal Public Defender for the District of Vermont.California Man Indicted for Terrorism OffenseRead the Press Release
A grand jury in Sacramento, California, returned an indictment today charging Aws Mohammed Younis Al-Jayab, 23, of Sacramento, with one count of making a false statement involving international terrorism, Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Benjamin B. Wagner of the Eastern District of California announced.
Al-Jayab is in custody and is scheduled for arraignment on Jan. 22, 2016, at 2:00 PM PST before U.S. Magistrate Judge Kendall J. Newman of the Eastern District of California. He was arrested by criminal complaint on Jan. 7, 2016.
According to the indictment, on Oct. 6, 2014, Al-Jayab was interviewed by U.S. Citizenship and Immigration Services and indicated that he had not ever: been a member of any rebel group or militia; provided material support for any person or group engaged in terrorist activity; and been a member of a group, or assisted in a group, which used or threatened the use of weapons against others. Al-Jayab also allegedly stated during the interview that he had traveled to Turkey in late 2013 and early 2014 to visit his grandmother. The indictment alleges that all of the aforementioned statements are false.
If convicted, Al-Jayab faces a maximum statutory penalty of eight years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the federal sentencing guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the FBI and the Sacramento Joint Terrorism Task Force (JTTF). The case is being prosecuted by Assistant U.S. Attorney Jill Thomas of the Eastern District of California and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section. The investigation is ongoing.
Al-Jayab Indictment
Cahokia Man Sentenced for Drug Trafficking, Firearms Offenses, and Obstruction of JusticeRead the Press Release
On January 13, 2016, Ayiko L. Paulette, 40, of Cahokia, Illinois, was sentenced in federal court in East St. Louis after having previously pled guilty to Conspiracy to Distribute Controlled Substances, Maintaining a Drug-Involved Premises, being a Felon in Possession of Firearms, Distribution of Cocaine, Interstate Travel In Support of Racketeering, and Conspiracy to Obstruct Justice, James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today. Paulette was sentenced to 300 months in federal prison, to be followed by10 years of supervised release. In addition, Paulette was ordered to pay an $8,000 fine and an $800 special assessment.
The investigation of this case showed that Paulette was a leader of the Waverly Crips street gang in East St. Louis, and that Paulette was involved in importing and selling cocaine, methamphetamine, and heroin in the East St. Louis area from 2007 until he was arrested in 2014. The investigation showed that Paulette maintained a drug house in East St. Louis, and that in March 2013, a shootout occurred at the house between rival gang members. After the shootout, police recovered several firearms from the house, including multiple assault rifles. The investigation also showed that even after he was arrested in this case, Paulette attempted to obstruct justice from his jail cell by directing others to attempt to intimidate a potential witness in the case.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Agencies participating in this case include the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Internal Revenue Service, Criminal Investigations, the United States Marshals Service, the Illinois State Police, and the East St. Louis Police Department. This case was prosecuted by Assistant United States Attorney Donald S. Boyce.
Buffalo Man Sentenced for Food Stamp FraudRead 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 Alie Hassan, 30, of Buffalo, NY, who was convicted of food stamp fraud, was sentenced to two years probation and ordered to pay restitution in the amount of $69,348.00 by U.S. District Judge Elizabeth A. Wolford.Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that Hassan owned and operated the Broadway Mart & Deli located at 1358 Broadway Street in Buffalo. From April 2011 to August 30, 2012, the defendant knowingly purchased food stamp benefits for less than their full value for cash.
The sentencing is the result of an investigation by Special Agents of the U.S. Department of Agriculture.
Buffalo Man Pleads Guilty to Drug and Gun ChargesRead 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 Ricky Lee Pyzikiewicz, 28, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute and to distribute cocaine and being a felon in possession of a firearm, before U.S. District Judge Elizabeth Wolford. The charges carry a maximum penalty of 20 years in prison, a $1,000,000 fine or both.Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that on November 15, 2010, law enforcement officers searched the defendant’s residence on Maurice Street in Buffalo. Officers seized baggies later determined to contain cocaine and marijuana as well as a rifle and ammunition.
The search was part of an ongoing criminal investigation into narcotics trafficking by Pyzikiewicz and co-defendant Ashley Marie Gnocchini, 29, of Cheektowaga, NY. During the morning hours of November 15, 2010, officers had set up an undercover purchase with the defendants. As Pyzikiewicz and Gnocchini drove to the area of Milestrip Road and McKinley Parkway in Hamburg, NY, Orchard Park, NY police officers pulled over a gray Saturn Ion the two were riding in. Pyzikiewicz appeared to hide something under his seat. A Hamburg Police Department canine unit responded to the scene, a canine sniff was conducted, and was positive for the presence of narcotics. A subsequent search was conducted and quantities of cocaine were recovered.
Gnocchini was convicted of conspiracy to possess with intent to distribute cocaine and will be sentenced March 2, 2016 at 2:30 p.m.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction Special Agent in Charge Delano A. Reid, the Orchard Park Police Department, under the direction of Chief Mark Pacholec, and the Hamburg Police Department, under the direction of Chief Gregory Wickett.
Pyzikiewicz will be sentenced on May 4, 2016 at 10:00 a.m. before Judge Wolford.
Area Police Chiefs Work Together on Gun Violence IssuesRead the Press Release
CEDAR RAPIDS, IA – The Cedar Rapids Police Department hosted a summit this morning with area law enforcement leaders to discuss gun violence and other crime issues that have impacted various communities throughout the state of Iowa.
The summit was an opportunity for department leaders and members of their law enforcement agencies to collaborate, share intelligence information, and discuss methods to promote safe and secure communities.
The summit, which was held this morning at the Cedar Rapids Police Department, included Cedar Rapids Police Chief Wayne Jerman, United States Attorney for the Northern District of Iowa Kevin W. Techau, Ames Police Chief Charles Cychosz, Davenport Police Chief Paul Sikorski, Dubuque Police Chief Mark Dalsing, Fayette Police Chief Richard Pisanti, Iowa City Police Chief Sam Hargadine, and Waterloo Director of Public Safety Daniel Trelka.Follow us on Twitter @USAO_NDIA.
Annapolis Residential Developer Sentenced to Prison in Fraudulent Mortgage SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Timothy L. Ritchie, age 44, of Annapolis, Maryland, today to a year and a day in prison, followed by 12 months of home detention with electronic monitoring as part of three years of supervised release, for making false statements arising from a real estate closing. Judge Bennett also entered an order requiring Ritchie to pay restitution of $1,385,444.83.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; and Special Agent in Charge Fran Mace, of the Federal Deposit Insurance Corporation Office of Inspector General.
Ritchie owned and operated Richland Homes, Inc., and was in the business of building, purchasing and selling homes.
According to his plea agreement, on July 7, 2005, Ritchie attended a residential closing for his purchase of three lots located at 24058 St. Michael’s Road in St. Michael’s, Maryland. John Davis, a real estate agent, conducted the closing, and listed Ritchie on the HUD statement as the buyer/ borrower. The HUD statement falsely stated that Ritchie provided $1,153,937.23 in cash at the closing. In fact, Ritchie did not provide any funds to Davis at the closing. As a result of the false statement, Ritchie fraudulently obtained approximately $2,445,102 from a mortgage lender by wire transfer to fund the settlement.
In a related case, John L. Davis, age 55, of Chestertown, Maryland, previously pleaded guilty to conspiracy to commit mail fraud and wire fraud arising from his participation in the scheme, and is scheduled to be sentenced on March 31, 2016 at 3:00 p.m. Davis admitted that the loss arising from his participation in the scheme is between $400,000 and $1 million.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao/md/priorities_financialfraud.html.
United States Attorney Rod J. Rosenstein commended the FHFA - OIG and FDIC – OIG for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Kevin V. Di Gregory and Assistant U.S. Attorney Kathleen O. Gavin, who prosecuted the case.
Americans with Disabilities Act Compliance Agreement Announced in Relation to the Crystal City Shops and UndergroundRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia announced today a compliance agreement under the Americans with Disabilities Act (ADA) with Vornado/Charles E. Smith related to the Crystal City Shops and City Underground, which is an interior pedestrian concourse located in Arlington County, to improve accessibility to persons with disabilities through the removal of architectural barriers.
“This significant compliance agreement exemplifies our commitment to protect the rights of people with disabilities,” said U.S. Attorney Dana J. Boente. “The corrective measures agreed to will allow people with mobility disabilities and impaired vision to have an improved opportunity to enjoy the Crystal City Shops and Underground.”
The investigation began with a complaint from the public alleging that the Crystal City Shops and Underground violated the ADA by failing to ensure the accessibility of the interior pedestrian concourse which connects underground and grade level retail shops, service establishments, restaurants, theaters, hotels, office buildings, residential buildings and the Crystal City Metro Station. The pedestrian concourse spans from 12th Street South to 23rd Street South in Arlington, and is composed of five sections connected by tunnels. The Crystal City neighborhood is home to a high density of hotel rooms, residences, offices, and multiple federal agencies.
In addition to remedial measures that Vornado/Charles E. Smith took during the course of the investigation, the compliance agreement requires that Vornado/Charles E. Smith make a number of changes to increase accessibility, including:
- Performing alterations to Section D of the Crystal City Shops and Underground to ensure that retail space that is currently accessible only by stairs will be made accessible to individuals with disabilities who use mobility devices.
- Installing ADA compliant handrails in various tunnels that connect multiple sections of the Crystal City Underground.
- Installing a lift at the stairs in front of the Crystal City Marriott lower level lobby entrance in order to provide an accessible route from the accessible plaza level.
- Creating new accessible parking spaces and relocating others.
- Installing signage that will direct the public to accessible entrances and routes of travel.
- Modifying restrooms to have the appropriate accessible features.
- Updating the maps throughout the pedestrian concourse and on its website showing accessible entrances and routes.
This matter was handled by Assistant U.S. Attorney Steven Gordon, who serves as the Civil Rights Enforcement Coordinator for the U.S. Attorney’s Office for the Eastern District of Virginia.
The Department of Justice has a number of publications available to assist entities in complying with the ADA on its web site, including Maintaining Accessible Features in Retail Establishments. For more information on the ADA and to access this publication, visit ADA.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD).
A copy of this press release may be found on the website for the U.S. Attorney's Office for the Eastern District of Virginia.
Alexis T. Young Found Guilty by Jury TrialRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Alexis T. Young, 33, of Hammond, Indiana was found guilty of 3 counts of aggravated identity theft Thursday afternoon after a four-day jury trial.
According to documents in the case, in addition to being found guilty at trial to the above charges, on April 10, 2015 Young plead guilty to count 1 of the indictment alleging conspiracy to commit identity theft. In the conspiracy charge it was alleged that she along with other defendants used personally identifiable information such as names, dates of birth and social security numbers of victims without their knowledge to obtain merchandise through fraudulently acquired credit cards. According to the indictment, one of her co-defendants was an employee of a medical facility, who disclosed the individually identifiable health information of victims to defendant Alexis Young and others.
This case is a result of an investigation by the United States Postal Inspection Service. This case was prosecuted by Assistant United States Attorneys Gary T. Bell and Toi D. Houston.
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Albuquerque Man Sentenced for Defrauding the Federal Food Stamp ProgramRead the Press Release
ALBUQUERQUE – Wilfredo Lopez, 47, of Albuquerque, N.M., was sentenced today in federal court to four years of probation for defrauding the federal food stamp program. Lopez was also ordered to pay $8,382.00 in restitution.
Lopez is one of six defendants charged with defrauding the Food Stamp Program in a 32-count indictment that was filed in Aug. 2014. The indictment alleged that between Sept. 2009 to May 2010, Joseph Martin Padilla, 33, conspired with Lopez, Joshua Moya, 33, Justin Quintana, 29, Sergio Escobedo, 36, and Veronica Hernandez, 41, to defraud the United States through the unauthorized use of Food Stamp benefits, which are currently called Supplemental Nutrition Assistance Program (SNAP) benefits. During this time, Padilla worked as a Family Assistance Analyst for the Income Support Division of the New Mexico Human Services Department (HSD) where he was responsible for determining applicants’ eligibility and benefit level for SNAP benefits.
SNAP is funded by the U.S. Department of Agriculture and is administered by the States. The program was created to alleviate hunger and malnutrition, and permits low income households to obtain more nutritious diet by increasing the food purchasing power for eligible households. In New Mexico, individuals qualify to participate in SNAP based on income and need by completing an application with the Income Support Division of HSD. Once an applicant is deemed eligible for SNAP benefits by a Family Assistance Analyst, the Analyst establishes a SNAP account in the applicant’s name and electronic benefit transfers (EBT), which are determined based on income, resources and household size, are deposited into the account on a monthly basis.
The indictment charged Padilla with abusing his position as a Family Assistance Analyst to conspire with his co-defendants to defraud the United States through the unauthorized use of SNAP benefits. Padilla used names and personal identifiers he obtained from his co-defendants to establish fraudulent SNAP accounts, in exchange for cash or other things of value. It also charged Padilla with establishing and using a fraudulent SNAP account to fraudulently obtain approximately $1,468.00 in SNAP benefits for himself. According to the indictment, Padilla fraudulently established 25 separate SNAP accounts through which the United States was defrauded of approximately $45,263.00 in SNAP benefits. Additionally, Padilla, aided and abetted by his co-defendants, fraudulently established SNAP accounts that were used to fraudulently obtain an aggregate of $12,705.00 in SNAP benefits.
On May 19, 2015, Lopez entered a guilty plea to one count of the indictment and admitted that he completed fraudulent applications for SNAP benefits in his name, another for himself in a pseudonym, and in the names of two other individuals. Lopez paid $100.00 to process each of the applications. He acknowledged that his criminal conduct caused a total monetary loss to the U.S. Department of Agriculture of approximately $8,382.00.
On Nov. 23, 2015, Padilla pled guilty two counts of the indictment and admitted that he was previously employed by HSD and despite his awareness of the policies and procedures of HSD, he processed numerous applications for SNAP benefits in a fraudulent manner in exchange for cash payments. Padilla acknowledged that his illegal conduct resulted in an aggregate loss to the U.S. Department of Agriculture and the State of New Mexico of approximately $181,398.76. Padilla is currently scheduled for sentencing on Jan. 19, 2016.
On May 18, 2015, Quintana pled guilty to one count of the Indictment, and admitted meeting Padilla through Moya, and knowing that Padilla had the ability to register people to receive food stamps. Quintana admitted that he agreed to pay Padilla a fee in exchange for arranging for him to receive food stamps unlawfully. Quintana obtained $486.00 in SNAP benefits through his illegal conduct. He also received a fee for collecting SNAP applications from six other people and delivering the completed applications to Padilla for the purpose of assisting them in obtaining SPA benefits unlawfully. Quintana acknowledged that his criminal conduct caused a monetary loss to the U.S. Department of Agriculture of $9,384.00. Quintana was sentenced on Aug. 17, 2015, to three years of probation and was ordered to pay $9,384.00 in restitution.
On March 9, 2015, Moya pled guilty to one count of the indictment and admitted that he fraudulently obtained SNAP benefits to which he was not entitled. Moya admitted that in early Dec. 2009, Padilla provided him with an application to obtain food stamps. Moya completed the application and returned it to Padilla for processing even though he knew that he was not entitled to SNAP benefits. Moya admitted unlawfully receiving $866.00 in SNAP benefits. Moya also admitted providing another application for SNAP benefits to a family member and that his relative unlawfully received $1,578.00 in SNAP benefits. On May 6, 2015, Moya was sentenced to six months in prison, or time served, followed by three years of supervised release. Moya also was ordered to pay $2,444.00 in restitution.
Escobedo and Hernandez have entered not guilty pleas to the charges in the indictment. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Office of Inspector General for the U.S. Department of Agriculture and the Office of Inspector General for New Mexico Human Services, and is being prosecuted by Assistant U.S. Attorney Sean J. Sullivan.
13 January 2016
Warren County, Kentucky, Man Guilty of Possession, Manufacture and Transfer of Two Explosive Devices (Pipe Bombs)Read the Press Release
BOWLING GREEN, Ky. – A Bowling Green, Kentucky, man pleaded guilty in United States District Court today, before District Judge Greg N. Stivers, to the possession, manufacture and transfer of a firearm, namely an explosive device commonly referred to as a pipe bomb, announced United States Attorney John E. Kuhn, Jr.
Jeremy Oneal Cherry, 38, admitted to the making and possessing two pipe bombs and later transferring one of the devices to another person. Each device involved approximate 5” x 1” PVC pipes, with end caps, with a green pyrotechnic fuse coming out of one endcap and each containing explosive powder.
According to an Affidavit attached to a criminal complaint, Cherry and John English, also from Bowling Green, were arrested on June 27, 2015. Police found a home-made explosive in Cherry’s car that was being driven at the time by English. Cherry admitted to giving the device to English, who according to the affidavit, had offered to buy the device. Further, a later search of Cherry’s home and property resulted in law enforcement finding items used to create the pipe bombs, such as PVC pipe, smokeless powder, and pyrotechnic fuses. . Further, Cherry showed the law enforcement officers a video clip of himself, captured on his smart phone, setting and lighting a fuse on one of the pipe bombs. The video showed the device blowing a wheel and tire 30 feet straight up in the air.
Cherry faces potential combined penalties of 30 years in prison, a $750,000.00 fine and three years of Supervised Release.
Cherry is scheduled for sentencing before Judge Stivers, in Bowling Green, on April 18, 2016, at 10:00 a.m., prevailing local time.
John Michael English, of Bowling Green, Kentucky, is charged in a separate indictment with being a felon in possession of a firearm (that is, the pipe bomb given to him by Cherry).
This case is being prosecuted by Assistant United States Attorney Jo E. Lawless. The United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), in conjunction with the Bowling Green Police Department, conducted the investigation.
Two Women Sentenced in BP Conspiracy Related to Fraudulent Applications to the Gulf Coast Claims Facility and another Woman Sentenced in Abide Conspiracy to Receive Illegal KickbacksRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CLARA AITCH, age 39, and WENDY ERVIN, age of 42, both of New Orleans, were sentenced today after previously pleading guilty to conspiracy to commit wire fraud relating to the fraudulent applications they made or caused to be made to the Gulf Coast Claims Facility (“GCCF”) for financial assistance during the aftermath of the Deepwater Horizon oil spill.
U.S. District Judge Susie Morgan sentenced both AITCH and ERVIN to serve three years on probation, and ordered to pay a special assessment of $100. Additionally, ERVIN was ordered to pay $17,300 in restitution to the GCCF and AITCH was ordered to pay $18,500 in restitution to the GCCF.
THREASA ADDERLEY, age 64, who previously pled guilty to conspiracy to pay and receive illegal kickbacks, was also sentenced today. U.S. District Judge Susie Morgan sentenced ADDERLEY to serve five years on probation, with the special condition that she serve twelve months of home confinement. ADDERLEY was also ordered to pay $48,500 in restitution to Medicare and a special assessment of $100.
AITCH, IRWIN, and ADDERLEY were indicted along with 18 other defendants in a 26-count indictment charging approximately $30,052,295 in Medicare and BP fraud.
According to court documents, the GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion. The GCCF required individuals to verify loss of income. In November, 2010, AITCH and ERVIN conspired with others to apply for disaster assistance funds, and represented that they were employees of LACE, a reception hall owned and operated by Lisa Crinel, when, in truth, AITCH and ERVIN were full time employees of Abide Home Care Services, Inc., Crinel’s company.
Also, according to court documents, ADDERLEY, was one of the physicians who entered into a sham contract with ABIDE to act as a medical consultant for the home health care agency. As such, she was required to submit monthly documentation detailing the services she provided to or on behalf of Abide. The agreements called for ADDERLEY to meet with Abide supervisors, at least annually, and to measure and evaluate overall performance of Abide. Quarterly meetings were also to be held to evaluate and discuss the ongoing home health program. ADDERLEY was also to perform in-services or educational programs to Abide and to review charts to determine if Abide was meeting expected outcomes. However, ADDERLEY never gave any in-service of any kind at Abide and never met with Abide supervisors to measure and evaluate the performance of personnel. ADDERLEY routinely compromised her medical judgment by certifying ineligible Medicare beneficiaries for home health provided by Abide who did not meet requirements for services because the patients were neither homebound nor medically in need of the services. Over the period covered by the Indictment, Abide paid ADDERLY more than $48,000 of Medicare funds for medically unnecessary home health billing.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U. S. Attorneys Patrice Harris Sullivan, Sharan Lieberman and Andre Lagarde are in charge of the prosecution.
Two U.S. Bureau of Prisons Corrections Officers Plead Guilty to Assaulting a Prison Inmate and Falsifying ReportsRead the Press Release
The Justice Department announced today that U.S. Bureau of Prisons (BOP) Correction Officers (CO) William Houghton, 32, and Eddie Rodas-Castro, 32, have pleaded guilty in connection with the beating of a federal inmate and the subsequent submission of false reports.
Houghton pleaded guilty to violating the civil rights of an inmate inside the Coleman Correctional Facility in Coleman, Florida, by striking the inmate repeatedly in the head and face on March 22, 2014. Houghton also pleaded guilty to submitting two false reports in connection with the incident, falsely stating the inmate had attempted to assault him and omitting the fact that Houghton had repeatedly punched the inmate.
Rodas-Castro pleaded guilty to one count of falsifying official reports, for his role in submitting a false report in an effort to cover up Houghton’s abuse.
“Conduct by corrections officers who abuse their power to violate the civil rights of those in their custody and lie about their actions undermines our criminal justice system,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department is committed to holding officers who engage in such criminal acts accountable.”
The defendants were both indicted on June 17, 2015. Sentencing for both defendants will be scheduled at a later date. Houghton faces a maximum sentence of three years in federal prison. Rodas-Castro faces a maximum sentence of one year in federal prison.
This case is being investigated by the FBI and the Department of Justice Office of the Inspector General, and prosecuted by Trial Attorneys Jared Fishman and Maura White of the Civil Right Division’s Criminal Section.
Houghton Plea Agreement
Rodas-Castro Plea Agreement
Two Middle Tennessee Men Sentenced to Prison This Week in Child Pornography CasesRead the Press Release
Two Middle Tennessee men were sentenced to lengthy prison terms this week for their role in child pornography cases, announced David Rivera, United States Attorney for the Middle District of Tennessee.
Joseph S. Nichols, 31, of Nashville, Tennessee, was sentenced on January 11, 2016, by U.S. District Court Todd Campbell, to serve 18 years in prison, followed by lifetime supervision. Nichols pleaded guilty to distribution of child pornography on September 14, 2015.
While on probation for an earlier state court conviction for possession of child pornography, Nichols was required to register as a sex offender and was prohibited from obtaining Internet access on any computer without written permission from his probation officer. However, Nichols admitted that soon after his conviction, he began using the Internet to download and collect vast amounts of child pornography, which he also shared with others.
On March 31, 2011, law enforcement officers discovered that Nichols was illegally collecting and distributing child pornography when they went to his residence to serve him with an outstanding warrant for violating the sex offender registration law. Nichols subsequently admitted that he had collected hundreds of thousands of images and videos of the sexual abuse of children and that he had traded this material with other like-minded individuals. He further admitted his personal attraction to children aged 10 and 11 years, and stated that several years earlier he had fondled two girls under the age of three while working on computers in their homes. Forensic analysis of Nichols’ computer confirmed that he collected well over 40,000 images and 160 videos of child pornography, which included depictions of prepubescent children and violence.
Daniel Bruce LaDeau, 66, of Summertown, Tennessee, was sentenced yesterday by U.S. District Court Judge Kevin Sharp to serve 115 months in prison, to be followed by 10 years of supervised release. LaDeau was found guilty by a federal jury of conspiracy to possess child pornography on May 28, 2015.
"The United States Attorney’s Office will continue to diligently and aggressively prosecute individuals who exploit children, particularly those who are discovered to have been doing so for many years,” said U.S. Attorney David Rivera. “We are grateful for the relationships we have with our federal and local law enforcement agencies who often work jointly to investigate cases that result in the removal of child predators from the community.”
The investigation of LaDeau began in April 2010 when Inspectors at Donald W. Wyatt Federal Detention Center in Central Falls, Rhode Island became aware of coded messages being sent between inmate Daniel LaDeau and his younger brother David Ladeau, who was also incarcerated, pending resolution of federal charges of possession of child pornography.
Between March and August of 2010, the LaDeau brothers exchanged letters in which the two conspired to obtain sexually explicit images and videos of young boys from the Internet. Daniel LaDeau, who was a novice computer user, often lamented of his inability to find images and videos he had previously viewed, which prompted his brother David to provide him with instructions and suggestions about how to obtain such sexually explicit images and videos of young boys from the Internet. In addition to discussing how to find child pornography online, the two brothers also discussed in these letters their mutual sexual interest in young boys, referenced prior sexual contact with minor boys, and shared fantasies about engaging in sexual activity with minor boys.
Evidence during the jury trial and sentencing hearings for Daniel LaDeau revealed his sexual attraction to undeveloped minor boys, and LaDeau admitted to having collected child pornography for decades since he was a young man, and further admitted to molesting approximately 100 minor boys. The court cited numerous reasons for imposing a sentence near the statutory maximum of 10 years, including the history and characteristics of the defendant, the need to protect the safety of the community, and the need to deter others from collecting child pornography. In determining the sentence, the court found that LaDeau had possessed between 300 and 600 images of child pornography, including images of prepubescent boys and images that included depictions of violence.
The Nichols case was investigated by the Metropolitan Nashville Police Department and prosecuted by Assistant U.S. Attorney Carrie Daughtrey. The LaDeau case was investigated by Homeland Security Investigations; the United States Secret Service; the Special Investigations Unit of the Donald W. Wyatt Detention Facility in Rhode Island; and the Franklin, Tennessee Police Department. The case was prosecuted by Assistant U.S. Attorneys Carrie Daughtrey and Brent Hannafan.
Two Men Charged with Sex Trafficking WomenRead the Press Release
BOSTON – A Brockton man and a Boston man have been arrested and charged in U.S. District Court in Boston with sex trafficking. The indictment was unsealed in federal court today.
Kwamaine J. Wells, 26, was indicted on two counts of sex trafficking by force, fraud or coercion, four counts of transportation of an individual with intent to engage in prostitution, and one count of conspiracy to transport an individual for prostitution. Akil J. DeCoteau, 27, was indicted on one count of transportation of an individual with intent to engage in prostitution and one count of conspiracy.
According to the indictment, between April 2013 and February 2014, Wells transported four women between Maine, Massachusetts and New York with the intent that they engage in prostitution, and used force and threats to coerce two of the women to engage in prostitution. In January 2014, DeCoteau transported a woman between Maine, Massachusetts and New York with the intent that she engage in prostitution. The indictment further alleges that from May 2013 to January 2014, Wells and DeCoteau conspired together to transport women between Massachusetts, New Jersey and New York with the intent that they engage in prostitution.
The charge of sex trafficking provides for a mandatory minimum sentence of 15 years and a maximum penalty of life in prison, three years of supervised release and a fine of $250,000. The charge of transportation to engage in prostitution provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of the Homeland Security Investigations in Boston made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Miranda Hooker of Ortiz’s Civil Rights Enforcement Team.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tulsa Man Sentenced to 15 Years in Prison for Sexual Exploitation of a ChildRead the Press Release
TULSA, Okla.—Chief United States District Court Judge Gregory K. Frizzell sentenced Joseph Michael Hubert, 47, to 15 years in prison for sexual exploitation of a child, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
In the fall of 2012, Hubert allowed a minor to stay overnight at his home on multiple occasions. While the minor was staying at his home, Hubert would record the minor engaging in sexually explicit conduct with his iPhone. Hubert would utilize the recordings for his own sexual gratification.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Neal C. Hong and Jeffrey A. Gallant.
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Three Men Who Were Arrested in Saline County Indicted on Federal Drug ChargesRead the Press Release
TOPEKA, KAN. - Three men who were arrested earlier this month in Saline County were indicted Wednesday on federal drug charges, U.S. Attorney Barry Grissom said.
A grand jury in Topeka returned indictments against:
Adrian Ayala-Garcia, 23, a citizen of Mexico who has been living in Abilene, Kan., one count of possessing approximately 18 pounds of methamphetamine with intent to distribute; one count of unlawful possession of firearms in furtherance of drug trafficking; and one count of conspiracy to distribute methamphetamine.
Eduardo Ponce-Serrano, 28, Salina, Kan., four counts of possession with intent to distribute cocaine, one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute 18 pounds of methamphetamine, and one count of conspiracy to distribute methamphetamine.
Francisco Javier Carrillo-Elias, 25, who is not a citizen of the United States and who has been living in Salina, three counts of possession with intent to distribute cocaine, one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute 18 pounds of methamphetamine, one count of conspiracy to distribute methamphetamine.
Upon conviction, the crimes carry the following penalties:
Possession with intent to distribute 18 pounds of methamphetamine: Not less than 10 years in federal prison and a fine up to $10 million.
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
Possession with intent to distribute cocaine: A maximum penalty of 20 years and a fine up to $1 million.
Possession with intent to distribute methamphetamine: Not less than five years and not more than 40 years and a fine up to $5 million.
Conspiracy to distribute methamphetamine: Not less than 10 years and a fine up to $10 million.
The Kansas Bureau of Investigation, the Saline County Sheriff’s Office, the Salina Police Department and Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Greg Hough is prosecuting.
OTHER GRAND JURY INDICTMENTS
Arthur Martin Rodriguez, 52, who is in custody in Dickinson County, and Daniel Gutierrez, 29, who is in custody in Dickinson County, are charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Nov. 19, 2015 in Dickinson County.
If convicted, they face a penalty of not less than 10 years and a fine up to $10 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Tony Mattivi is prosecuting.
Andre J. Wallace, 40, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Dec. 19, 2015, in Topeka, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Royelle Lamont Miller, 35, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Jan. 5, 2016, in Topeka, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.