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7 January 2016
Milwaukee Woman Sentenced to Prison for Aiding and Assisting in the Filing of False Federal Income Tax ReturnsRead the Press Release
Acting United States Attorney Gregory J. Haanstad for the Eastern District of Wisconsin, announced that on January 5, 2016, Tina M. Gentry (age: 48) of Milwaukee was sentenced to a total of six months imprisonment based on her conviction for filing false tax returns with the Internal Revenue Service in violation of Title 18, United States Code, Section 287. Gentry was also ordered to pay $57,000 in restitution payable to the IRS.
According to the indictment, Gentry assisted individuals in falsely obtaining federal income tax refunds from the IRS. To obtain the refunds, Gentry prepared tax returns claiming false and fraudulent federal taxable income and federal income tax withheld, when she knew that none of the individuals she prepared returns for had federal taxable income or federal income tax withheld. In total, Gentry caused approximately 112 federal income tax returns to be filed with the IRS, falsely claiming federal income tax refunds of more than $90,000.
The case was investigated by Internal Revenue Service Criminal Investigation. The case was prosecuted by Assistant United States Attorney Lisa A. Wesley
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McLaughlin Man Sentenced for Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man convicted of Child Abuse was sentenced on January 5, 2016, by U.S. District Judge Charles B. Kornmann.
Clifford Wayne Kills Crow, Jr., a/k/a Clifford Wayne Kills Crow Indian, Jr., age 26, was sentenced to 3 years of probation and a special assessment of $100 to the Federal Crime Victims Fund, restitution.
Kills Crow was indicted by a federal grand jury on October 14, 2015. He pled guilty on December 15, 2015.
The conviction stems from an incident on July 22, 2015, when an officer was dispatched to a residence in McLaughlin, in regards to an intoxicated father who had struck his child. Upon arrival at the home, law enforcement made contact with Kills Crow, who was outside the residence crying and sobbing, stating to law enforcement that he had “messed up” by getting angry at his juvenile son and striking him with his belt. Law enforcement noticed several welts on the victim’s back.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Marrero Homeowner Pleads Guilty to Theft of $50K in Home Elevation Grant FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CINDY DANDRIDGE, age 43, of Marrero, pled guilty today to theft of government funds.
According to court documents, DANDRIDGE owned a home in Marrero. In September and October 2010, DANDRIDGE executed application documents with the Home Elevation Mitigation Grant Program (“HMGP”), with the understanding that the grant monies would be used to elevate her home.
In January 2011, DANDRIDGE received federal HMGP grant monies totaling $50,000 and deposited these federal funds into her personal bank accounts. However, instead of using the monies to elevate her home, DANDRIDGE used the grant monies to pay for personal expenses.
The maximum penalty for theft of government funds is ten years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim. U.S. District Judge Mary Ann Vial Lemmon set sentencing for April 13, 2016.
U.S. Attorney Polite praised the work of the Department of Homeland Security, Office of Inspector General in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.
Marlin Maurice Jackson Sentenced to 3 Years ImprisonmentRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that yesterday in federal court, Senior United States District Judge James C. Fox sentenced MARLIN MAURICE JACKSON, 36, to 36 months imprisonment, followed by 3 years of supervised release. He also ordered payment of $ 615,536 in restitution
jackson was named in a Criminal Information filed on April 28, 2015. He pled guilty to one count of false, fictitious, and fraudulent claims for refunds, in violation of Title 18, United States Code, Section 287. Evidence presented at JACKSON’s plea and sentencing showed that JACKSON used the identities of others, often without their knowledge, to prepare and file fraudulent tax returns.
The criminal investigation of this case was conducted by Internal Revenue Service Criminal Investigation. Assistant United States Attorney David Bragdon is handling the case on behalf of the government.
“As filing season is upon us, the message should be clear that if you engage in fraud at the expense of other taxpayers in order to enrich yourself, as Marlin Jackson did in this case, IRS Criminal Investigation will investigate your criminal actions and ensure that you are held responsible.” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation.
Man Sentenced to 10 Years for Traveling to Colorado to Engage in Sexual Acts with a MinorRead the Press Release
DENVER – A Nevada man was sentenced to 120 months in prison yesterday in U.S. District Court in Denver for traveling across state lines with the intent to engage in illicit sexual conduct with a minor, announced Colorado U.S. Attorney John Walsh and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Brian Franklin Howard, 38, of Las Vegas, pleaded guilty on Sept. 11, 2015, to one count of travel with intent to engage in illicit sexual conduct with a 10-year-old minor child. He has been in custody since his arrest on April 2, 2015. U.S. District Judge Christine M. Arguello of the District of Colorado, who sentenced Howard, also ordered the defendant to serve 10 years of supervised release.
According to the plea agreement, a U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) agent, posing undercover as a single mother of two minor children, came into contact with Howard online. Howard then arranged to meet the mother and her children and flew from Las Vegas to the Denver International Airport, where he met the undercover agent, confirmed his intent to have sex with children and was arrested.
“Defendant’s chilling and detailed effort to come to Colorado to rape children fully deserves the severe sentence imposed by Judge Arguello,” said U.S. Attorney John Walsh. “Let this case serve as a warning.”
“Anyone who travels hundreds of miles across state lines to have sex with a 10-year-old is a danger to children everywhere,” said David A. Thompson, special agent in charge of HSI Denver. “Under our Operation Predator program, HSI identifies and targets these predators to rescue and bring justice to their young victims, and help protect other children by apprehending these predators in our communities.”
ICE-HSI investigated this case. Assistant U.S. Attorney Alecia Riewerts of the District of Colorado and Trial Attorney James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Little Eagle Woman Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that a Little Eagle, South Dakota, woman convicted of Assault with a Dangerous Weapon was sentenced on January 4, 2016, by U.S. District Judge Charles B. Kornmann.
Mary Jo Madison, age 37, was sentenced to 16 months in custody, followed by 3 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Madison was indicted by a federal grand jury on August 11, 2015. She pled guilty on November 2, 2015.
The conviction stems from an incident on July 7, 2015, when Bureau of Indian Affairs (BIA) law enforcement was dispatched to a residence in Little Eagle, in reference to an assault. Officers were advised that a group of females were fighting and one was bleeding from the head. Madison and others initially approached the victim and another person and started a verbal altercation. The altercation escalated and Madison went to a car, retrieved a metal bar, and struck the victim on the head at least one time. A neighbor across the street also described the incident to the BIA officers, stating he too saw Madison strike the victim on the head with a metal bar. None of the other people involved in this altercation had weapons.
The victim was transported by ambulance to Mobridge for treatment. As a result of the assault, the victim sustained head injuries, including two lacerations that formed a “T” on her scalp, one laceration was 4 cm long and the other 3 cm long. Following treatment, the victim did not require hospitalization and was released to her home.
Following the assault, Madison fled the area in a black vehicle heading towards Timber Lake. A second BIA officer responded to the call and passed a vehicle matching the description dispatch had provided. The vehicle was stopped and the officer was able to identify and detain Madison. Madison was interviewed the following day and admitted to striking the victim on the head with a metal bar.
This case was investigated by the BIA, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Madison was immediately turned over to the custody of the U.S. Marshals Service.
Leader of International, $200 Million Credit Card Fraud Scam Sentenced to 80 Months in PrisonRead the Press Release
TRENTON, N.J. – A New York man was sentenced today to 80 months for leading one of the largest credit card fraud schemes ever charged by the U.S. Department of Justice, U.S. Attorney Paul J. Fishman announced.
Tahir Lodhi, 56, of Hicksville, N.Y., previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with one count of conspiracy to commit bank fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in Court:
Lodhi directed the activities of a number of other conspirators in fabricating more than 7,000 false identities to obtain tens of thousands of credit cards. They doctored credit reports to pump up the spending and borrowing power associated with the cards. Lodhi and others then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts, causing more than $200 million in confirmed losses to businesses and financial institutions.
The scheme involved a three-step process in which the defendants would:
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“Make up” a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus.
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“Pump up” the credit of the false identity by providing false information about that identity’s creditworthiness to the credit bureaus. Believing the furnished information to be accurate, the credit bureaus would incorporate this material into the false identity’s credit report, making it appear that the false identity had excellent credit.
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“Run up” large loans using the false identity. The higher the fraudulent credit score, the larger the loans that the defendants could obtain. These loans were never repaid, and Lodhi and his conspirators reaped the profits.
The Sham Companies
The enormous size and scope of the criminal fraud enterprise required Lodhi and his conspirators to construct an elaborate network of false identities. Across the country, Lodhi and his conspirators maintained more than 1,800 “drop addresses,” including houses, apartments, and post office boxes, which they used as the mailing addresses of the false identities.
They created dozens of sham companies that did little or no legitimate business, obtained credit card terminals for the companies and then ran up charges on the fraudulent cards. To accept payments in the form of credit cards, a business must establish a merchant account with an entity known as a merchant processor. The merchant processor provides the business with equipment to process credit cards, receives payments from credit card companies for credit cards run at the business, and deposits those payments, minus a fee, into the business’ bank account. When the merchant processors shut down accounts operated by the conspirators for fraud, they would apply for new terminals and create new companies.
The sham companies also served as “furnishers,” providing the credit bureaus with false information about the credit history of numerous false identities of people who purportedly worked at or owned the companies.
Tradelines
Lodhi and his conspirators also used sophisticated methods – including a network of black-market businesses called “tradelines” providers – to commit fraud.
Tradelines come in two varieties: primary tradelines and authorized user tradelines. Primary tradelines are lines of credit in a credit history. If a credit card user has primary tradelines in good standing, it can have a significant impact on the user’s credit score, enabling the user to borrow more from credit card issuers. Lodhi and his conspirators, however, trafficked in fraudulent primary tradelines.
A second kind of tradeline is the “authorized user” tradeline, where a credit card holder adds another, so-called “authorized user,” to a credit card account. This raises the credit score of the authorized user, who inherits some of the primary user’s credit history.
Certain of Lodhi’s conspirators created and sold fake lines of credit for false identities made up by Lodhi and others. These fraudulent primary tradelines were then used to increase the credit limits on fraudulent cards, so that the conspirators could reap even larger profits. Lodhi and other conspirators used the authorized user tradelines to create new identities.
Complicit Businesses
Lodhi and his conspirators also relied upon complicit businesses, including several jewelry stores in the Jersey City, N.J., area, to extract money from the fraudulent cards. The complicit businesses would allow certain conspirators to conduct sham transactions on the phony cards and would then receive the proceeds from the credit card companies and split them with the other conspirators. These complicit businesses maintained multiple credit card merchant processing accounts at the same time. By operating dozens of accounts, these businesses furthered the conspiracy by allowing more fraudulent transactions to be processed before the merchant processors shut down the account. The proceeds from these merchant terminals were deposited into various business checking accounts, and the money was paid out to the owners of the complicit businesses, along with other conspirators.
Lavish SpendingThe conspiracy generated enormous profits for Lodhi and his conspirators – even though they spent millions of dollars sustaining the elaborate network of drop addresses and running credit reports on the thousands of false identities. Records of the New York and New Jersey Departments of Labor reveal that many of Lodhi’s conspirators had no reported legitimate employment in the last five years. Nonetheless, Lodhi and his conspirators used the proceeds of the criminal enterprise to buy luxury automobiles, electronics, spa treatments, expensive clothing and millions of dollars in gold. They also stockpiled large sums of cash. Law enforcement discovered approximately $70,000 in cash in the oven of one of Lodhi’s conspirators.
Lodhi’s conspirators also moved millions of dollars through accounts under their control, and wired millions of dollars overseas. An analysis of 169 bank accounts of the defendants, sham companies, and complicit businesses has identified $60 million dollars in proceeds that flowed through the accounts, much of it withdrawn in cash. The conspirators wired millions of dollars to Pakistan, India, the United Arab Emirates, Canada, Romania, China and Japan. Due to the massive scope of the conspiracy, which involved more than 25,000 fraudulent credit cards, loss calculations are ongoing. Final figures may grow beyond the present confirmed losses of more than $200 million.
The investigation previously resulted in the arrest of 22 defendants and the seizure of more than $4 million in gold from jewelry stores in Jersey City.
In addition to the prison term, Judge Thompson sentenced Lodhi to five years of supervised release and fined him $25,000.
U.S. Attorney Fishman praised special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Richard M. Frankel, for the investigation leading to today’s guilty plea. He also thanked postal inspectors under the direction of Postal Inspector in Charge Marie L. Kelokates, the U.S. Secret Service, under the direction of Special Agent in Charge David Beach, and the U.S. Social Security Administration for their roles in the investigation.
The government is represented by Assistant U.S. Attorneys Daniel V. Shapiro and Zach Intrater of the Economic Crimes Unit and Barbara Ward of the Asset Forfeiture Unit of the U.S. Attorney’s Office in Newark.
Defense counsel: Howard Simmons Esq., New York
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Lapwai Man Sentenced for StrangulationRead the Press Release
COEUR D’ALENE – Robert Ryan Johnson, Jr., 36, of Lapwai, Idaho, was sentenced yesterday to 18 months in prison for strangulation, U.S. Attorney Wendy J. Olson announced. The court also ordered Johnson to serve three years of supervised release following his sentence and complete a one year anger management counseling course. He pleaded guilty to the charge on October 20, 2015.
According to the plea agreement, in March 2014, Johnson got into an argument with his intimate or dating partner. Johnson admitted that during the argument he grabbed the victim by the neck and strangled or attempted to strangler her.
“The strangulation statute and the Violence Against Women Act are useful tools to fight domestic violence crimes that endanger women and children in Native American communities,” said Olson. “This violence tears apart families, damages children, and may even have lethal consequences.”
The case was investigated by the Nez Perce Tribal Police Department and the Federal Bureau of Investigation. The case was prosecuted in federal court because the crime occurred on the Nez Perce Indian Reservation and the defendant is an enrolled member of a federally recognized tribe.
Kurbanov Sentenced to 25 Years in PrisonRead the Press Release
BOISE – Fazliddin Kurbanov, 33, an Uzbek national, was sentenced today to 25 years in federal prison by Senior U.S. District Judge Edward J. Lodge of the District of Idaho for conspiring and attempting to provide material support to a designated foreign terrorist organization and possessing an unregistered destructive device.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wendy J. Olson of the District of Idaho and Special Agent in Charge Eric Barnhart of the FBI’s Salt Lake City Division made the announcement.
Judge Lodge also sentenced Kurbanov to a term of supervised release of three years and imposed a fine of $250,000. Kurbanov, who was convicted in August 2015 after a 20-day trial, will also face deportation proceedings at the end of his prison sentence.
“Fazliddin Kurbanov was sentenced for conspiring and attempting to provide material support to the Islamic Movement of Uzbekistan and procuring bomb-making materials in the interest of executing a terrorist attack on American soil,” said Assistant Attorney General Carlin. “Thankfully, the threat posed by Kurbanov was disrupted by the tireless efforts of the law enforcement community and its partners. Defending our nation from the threat of terrorism, whether at home or abroad, remains the highest priority of the National Security Division, and we will continue to hold accountable those who seek to harm to our country and our citizens.”
“The lengthy term of imprisonment imposed by the Court ensures that this defendant, who by his words and acts was intent on taking American lives, does not and will not pose any further threat to the safety and security of our community,” said U.S. Attorney Olson. “The investigation, prosecution, and now sentence in this case demonstrate the cooperative law enforcement effort by federal, state and local agencies to protect our national security and prevent acts of terrorism. I commend the men and women at every level of law enforcement and prosecution, including the FBI, the Department of Homeland Security, Homeland Security Investigations, Ada County and Canyon County Sheriff’s Offices and the Boise City Police Department, who assisted in this effort.”
“The worst of intentions on the part of Mr. Kurbanov, that is the mass killing of Americans, were thwarted by the best of collaboration on the part of the entire law enforcement community,” said Special Agent in Charge Barnhart.
According to evidence presented at trial:
Between the summer of 2012 and his arrest in May 2013, Kurbanov, who was living in Boise, Idaho, communicated by email and Skype with a person or persons operating a website for the Islamic Movement of Uzbekistan (IMU), a designated foreign terrorist organization. Kurbanov discussed with the website administrator his animosity toward Americans, particularly the military; his desire to build a bomb; possible targets in the United States, including military bases in Idaho and Texas; and his need for instruction on how to construct and remotely detonate a bomb. Additionally, Kurbanov searched for and later discussed with an FBI confidential human source targets including military bases in the United States, specifically West Point Military Academy in New York. The website administrator instructed the defendant to obtain a specific anti-virus software to protect the IMU’s website and to obtain and provide any amount of money. The defendant contacted his brother, who lived overseas, about obtaining the anti-virus software and he sent the software to Kurbanov. Shortly before his arrest, the defendant caused an Idaho corporation to open, through which he intended to funnel money to the IMU.
Between at least Nov. 15, 2012, and May 16, 2013, Kurbanov possessed bomb-making components at his Boise apartment, including a hollow hand grenade, a hobby fuse, ammunition containing smokeless powder, tannerite, aluminum powder, potassium nitrate, charcoal, yellow sulfur powder and fertilizer. He purchased these items during the summer and fall of 2012. FBI special agents observed the bomb-making components during a court-authorized search of Kurbanov’s apartment in November 2012 and seized many of the same items during a second court-authorized search in May 2013.
Kurbanov’s activities were closely monitored by federal agents during the investigation and no terrorist attack occurred.
During the sentencing hearing, an explosives expert provided evidence that the bomb-making components Kurbanov possessed were capable of causing significant harm. Prosecutors argued that these capabilities, coupled with Kurbanov’s many statements of hatred toward Americans and desire to kill them, warranted the lengthy sentence.
Kurbanov still faces a separate one-count indictment returned in May 2013 in federal court in Utah alleging that from about Jan. 14, 2013, continuing through Jan. 24, 2013, he taught and demonstrated how to make explosive devices, and distributed information relating to the manufacture and use of an explosive or weapon of mass destruction. His alleged intent was that the teaching, demonstration and information be used for and in furtherance of an activity that would constitute a federal crime of violence. The Utah indictment was returned in May 2013, at the same time as the Idaho indictment.
The Idaho case was investigated by the FBI’s Joint Terrorism Task Force with assistance from the Boise Police Department, the Immigration and Customs Enforcement’s Homeland Security Investigations, the Ada County, Idaho, Sheriff’s Office and the Canyon County, Idaho, Sheriff’s Office.
The case was prosecuted by Assistant U.S. Attorneys Aaron Lucoff and Heather Patricco of the District of Idaho and Trial Attorney Larry Schneider of the National Security Division’s Counterterrorism Section.
Kentuckiana Anesthesiologist Guilty of Unlawful Distribution of Controlled Substances, Health Care Fraud, Conspiracy and Money LaunderingRead the Press Release
LOUISVILLE, Ky. – A Kentuckiana anesthesiologist pleaded guilty today in U.S. District Court to charges of unlawful distribution or dispensing of controlled substances, health care fraud, conspiracy and money laundering announced United States Attorney John E. Kuhn, Jr.
Jaime Guerrero, age 48, formerly a medical physician with offices in Louisville, Kentucky, and Jeffersonville, Indiana, pleaded guilty to 31 counts of a 35 count Superseding Indictment before U.S. District Judge Greg N. Stivers.
According to terms of the plea agreement, Guerrero will forfeit the proceeds from these offenses, including his license to practice medicine and real property owned by Guerrero Real Estate Investments, LLC. Further, the defendant will pay $827,000 in victim restitution to nine health care benefit programs. In return, at the time of sentencing, the United States has agreed to recommend a 100 month sentence in prison, followed by a three year period of supervised release.
According to the plea agreement, from November 1, 2009, continuing through January 1, 2013, Guerrero conspired with others to knowingly and intentionally distribute and dispense, schedule II and III controlled substances to patients, without a legitimate medical purpose and beyond the bounds of professional medical practice. Beginning November 1, 2009, and continuing through May 8, 2014, Guerrero admitted to distributing and dispensing Schedule II and III controlled substances to patients (listed in counts 2-26) without a legitimate medical purpose beyond the bounds of professional medical practice. Beginning on or about January 6, 2010, and continuing through September 16, 2011, Guerrero knowingly and intentionally distributed and dispensed, and caused to be distributed and dispensed Hydrocodone, a Schedule III controlled substance, to patient S.O., without a legitimate medical purpose and beyond the bounds of professional medical practice, which resulted in S.O.’s death on or about September 24, 2011.
Guerrero further pleaded guilty to three counts of health care fraud for fraudulently billing various health care benefit programs and for submitting fraudulent claims for patient health care counseling. Specifically, on May 26, 2011, June 15, 2011, and June 22, 2011, Guerrero saw more than 100 patients on each of the dates, by himself, and spent approximately 3 minutes or less with each patient, and fraudulently billed various health care benefit programs, for office visits at a higher code than the service provided. Between July 9, 2010 and July 22, 2010, Guerrero travelled outside of the United States and directed staff personnel to provide group counseling sessions for patients in his absence. The group sessions were then billed as individual counseling sessions, and as if Guerrero personally provided the service. Additionally, between January 1, 2008, and continuing through June 15, 2012, Guerrero falsely and fraudulently submitted over 100 claims to various health care benefit programs for office visits at a higher code than the service provided; for office visits that were not medically necessary or within the course of usual medical practice; submitting claims for services that were not sufficiently documented in the patient’s medical record; and making claims for office visits as though a physician saw the patient, when in fact, a nurse practitioner saw the patient. Guerrero agreed to pay $827,000 in victim restitution to nine health care benefit programs
Finally, Guerrero pleaded guilty to a single money laundering charge for redeeming (paying the taxes) on a building located at 1201 West Wall Street in Jeffersonville, Indiana, with $89,556.25 in cash derived from unlawful activity - the unlawful dispensing and distribution of controlled substances and health care fraud.
This case is being prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb and is being investigated by the Federal Bureau of Investigation (FBI), the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), the U.S. Drug Enforcement Administration (DEA), Indiana and Kentucky Medicaid Fraud Control Units, and Louisville Metro Police Department (LMPD).
Justice Department Settles Lawsuit with Niagara County, New York, Alleging Discrimination Against Pregnant Corrections OfficerRead the Press Release
The Department of Justice announced today that it has entered into a consent decree with Niagara County, New York, resolving allegations that the county discriminated against Corrections Officer Carisa Boddecker because of her sex and pregnancy.
The consent decree, entered today by the U.S. District Court for the Western District of New York, resolves the United States’ complaint filed on May 13, 2013, that the Niagara County Sheriff’s Office (NCSO) discriminated against Boddecker when it revoked her restricted duty assignment and forced her to take an extended leave of absence during her pregnancy, although she was able to work. The complaint alleged that NCSO violated Title VII by refusing to let Boddecker do the same sort of work while pregnant that it allowed for other non-pregnant employees with temporary medical conditions. Title VII is a federal statute that prohibits employment discrimination on the basis of sex, including pregnancy, as well as race, color, national origin and religion.
“It takes the strength and determination of women like Carisa Boddecker to stand up and speak out against sex-based discrimination,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Department of Justice remains firmly committed to ensuring that public employers do not discriminate against employees because of their pregnancies.”
Under the terms of the consent decree, NCSO must review its existing anti-discrimination policies and procedures and adopt and implement new policies to protect its employees from discrimination on the basis of sex, including pregnancy. The consent decree requires NCSO to conduct training of its employees to ensure that any future complaints of discrimination are handled properly. NCSO also has agreed to offer Boddecker $94,000 in back pay, compensatory damages and attorney’s fees, as well as restore the seniority and pension benefits that she lost as a result of her forced leave of absence.
The case was prosecuted by Trial Attorneys Elizabeth Banaszak and Kathleen Lawrence of the Civil Rights Division.
The continued enforcement of Title VII remains a priority of the Justice Department’s Civil Rights Division. More information about Title VII and other federal employment laws is available on the Civil Rights Division’s Employment Litigation Section (website).
Niagara County Consent Decree
Niagara County Order Approving Stipulated Consent Decree with Modification
Judge Sentences Penn Hill Man to 6 Years in Prison for Conspiring to Deal Heroin, CocaineRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 72 months’ imprisonment on his conviction of conspiracy to distribute cocaine and heroin, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Douglas Smith, Jr., 43, of Penn Hills, Pa.
According to information presented to the court, in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Douglas Smith, Jr. was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier, and heroin, which the conspirators obtained in Cleveland, Ohio, and transported to the Western District of Pennsylvania for further distribution.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Street Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Douglas Smith, Jr.
Jefferson County Man Sentenced for Child Pornography ViolationsRead the Press Release
BEAUMONT, Texas – A 28-year-old Port Arthur, Texas man has been sentenced to 15 years in federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Cesar Estuardo Hernandez-Cruz pleaded guilty on Aug. 5, 2015, to production of child pornography and was sentenced to 180 months in federal prison on Jan. 6, 2016 by U.S. District Judge Marcia A. Crone.
According to information presented in court, in August 2014, Hernandez-Cruz attended a funeral where he met a 12-year-old minor. Afterwards, he found the child’s profile on the social media site, Facebook and began communicating online. Hernandez-Cruz persuaded the child to send him nude photos and asked the minor to meet him for sex. The victim did send Hernandez-Cruz photos but refused to meet in person. Federal agents recovered the sexually explicit photos that Hernandez-Cruz persuaded the child to produce. Hernandez-Cruz was indicted on June 3, 2015 and charged with child pornography violations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorneys Lesley A. Bartow and Randall L. Fluke.
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International Operation Concludes in Montana; Convicts 21 Defendants of Child Pornography-Related CrimesRead the Press Release
MISSOULA – The United States Attorney's Office for the District of Montana announces today the conclusion of an international operation that convicted twenty-one defendants of child pornography related crimes. These defendants were involved in the sexual exploitation of children via two international online bulletin boards where members advertised, distributed, viewed and received images depicting child pornography.
Operation Kingdom Conqueror was initiated in 2011. FBI agents and officers from the Internet Crimes Against Children Task Force (ICACTF) received a tip regarding a potential child pornography suspect. In early 2012, the FBI obtained a search warrant for the residence of Paul Wencewicz in Polson, Montana. During their search, the agents discovered that Wencewicz was operating an online bulletin board where members advertised and traded sexually explicit images of young girls. The bulletin board was named Kingdom of Future Dreams (KOFD), and was created by Wencewicz in 2009. Between November 2009 and March 2012, Wencewicz and other members of the bulletin board sexually exploited hundreds of girls, both domestically and internationally, by trading images and videos of them.
Through their investigation, agents discovered that the KOFD bulletin board was housed on a server in the Isle of Jersey, one of the Channel Islands of the United Kingdom. Through cooperation with local police, state and federal agents were able to track down members of the bulletin board who resided in the United States and to obtain search warrants for their residences. Searches were conducted by federal officers in New Jersey, Maryland, Missouri, Indiana, Virginia, Washington, Massachusetts, Kentucky, Arizona, Texas, and California. The KOFD conspiracy identified thirteen defendants in the United States in addition to Wencewicz of Polson. Through their investigation of the KOFD defendants, agents learned that eight of the fourteen defendants were also members of a second child exploitation bulletin board called the Dark Moon, which involved a highly complex encryption scheme. Agents gained access to the board in April of 2013 and were able to identify additional members.
As a result of this investigation and prosecution, the following individuals have been convicted of Conspiracy to Advertise Child Pornography and sentenced as follows:
- Paul Wencewicz, age 49, Polson, Montana
Sentence – 220 months BOP, Lifetime Supervised Release, $29,859 restitution
- Scott Long, age 55, Portland, Oregon
Sentence – 200 months BOP, Lifetime Supervised Release, $29,859 restitution
- Steve Humiston, age 58, Tacoma, Washington
Sentence – 210 months BOP, Lifetime Supervised Release, $5,000 fine, $29,859 restitution
- Phillip Morris, age 43, Jeffersonville, Indiana
Sentence – 216 months BOP, Lifetime Supervised Release, $29,859 restitution
- Tony Bronson, age 55, Gary Indiana
Sentence – 224 months BOP, 10 years Supervised Release, $29,859 restitution
- Jeffrey Woolley, age 55, Nicholasville, Kentucky
Sentence – 180 months BOP, Lifetime Supervised Release, $29,859 restitution
- Charles Crosby, age 45, Trenton, New Jersey
Sentence – 210 months BOP, Lifetime Supervised Release, $29,859 restitution
- John Johnson, age 59, Locust Grove, Virginia
Sentence – 180 months BOP, Lifetime Supervised Release, $29,859 restitution
- Joseph Purificato, age 25, Mount Vernon, Missouri
Sentence – 180 months BOP, 10 years Supervised Release, $29,859 restitution
- Ian Nosek, age 44, Charlottesville, Virginia
Sentence – 216 months BOP, Lifetime Supervised Release, $29,859 restitution
- Robert Krise, age 67, Gaithersburg, Maryland
Sentence – 180 months BOP, Lifetime Supervised Release, $29,859 restitution
- John Merchberger, III, age 48, Dayton, Maine
Sentence – 220 months BOP, Lifetime Supervised Release, $5,000 fine
- Daniel Brown, age 27, Taylors, South Carolina
Sentence – 180 months BOP, Lifetime Supervised Release
- Marc Edoria age 24, Sacramento, California
Sentence – 180 months BOP, 10 years Supervised Release
- Tony Gustafson age 49, Hastings, Nebraska
Sentence – 200 months BOP, Lifetime Supervised Release
- Ryan Hatfield age 26, Mount Washington, Kentucky
Sentence – 180 months BOP, 10 years Supervised Release
- David Woods age 37, Corfu, New York
Sentence – 180 months BOP, 15 years Supervised Release
- Shawnston Beaudoin age 31, Kennesaw, Georgia
Sentence – 210 months BOP, Lifetime Supervised Release
The following defendants were convicted at trial of participating in a Child Exploitation Enterprise and Conspiracy to Advertise Child Pornography and were sentenced as follows:
- Joshua Petersen, age 45, Prescott, Arizona
Sentence – 220 months BOP, Lifetime Supervised Release, $29,859 restitution
- Steven Grovo, age 35, Shirley, Massachusetts
Sentence – 220 months BOP, Lifetime Supervised Release, $29,859 restitution
- Defendant Richard Pitts, age 28, from Cathedral City, California pled guilty to Conspiracy to Distribute Child Pornography and was sentenced to 84 months in the Bureau of Prisons and 15 years of supervised release.
The final defendant sentenced today as part of the operation in Missoula is Shawnston Beaudoin, 31, of Kennesaw, Georgia. Beaudoin pleaded guilty to the conspiracy charge on September 30, 2015. If called upon to prove its case at trial, the United States was prepared to demonstrate that Beaudoin became an active member of Dark Moon in October of 2012. He remained an advanced member of the board until April of 2013. During that time he posted to the advanced member section of the board. His posts included URL hyperlinks and preview images of child pornography. He also requested child pornography from other members, and responded to and commented on other members’ postings. Chief U.S. District Court Judge Dana Christensen presided over the sentencing.
“The predators on these illicit websites glorified the sexual assault of little girls and encouraged each other to share images of this terrible abuse," said Assistant Attorney General Caldwell. "For the victim children, this trauma lasts the rest of their lives. Thanks to the great partnership among federal, state and local law enforcement, these criminals will be punished for their vile crimes and prevented from harming other children."
“This collaboration of federal and state law enforcement agencies demonstrates the power of the ICACTF and the concerted strength we can bring to bear against these types of child predators when we combine forces,” said Michael Cotter, U.S. Attorney for the District of Montana. “These operations succeeded in bringing to justice a group of dangerous and sadistic individuals, some of whom had committed prior sex offenses against children. As a result of the operations, one threat against Montana’s children—and children everywhere—has been dismantled. We will continue this successful collaboration and our efforts to protect our children and our communities into the future.”
Other federal agency Task Force partners expressed a similar commitment. “The FBI is dedicated to protecting the most innocent amongst us,” said Eric Barnhart, Special Agent in Charge. “We will continue to work with our law enforcement partners at home and abroad to identify, locate, and arrest individuals who prey on children and then attempt to hide their illegal activities behind a veil of technology.”
“Our special agents with Homeland Security Investigations have investigated child sexual exploitation cases for many years,” added David A. Thompson, special agent in charge of HSI Denver, which oversees Montana. “However, in collaborated efforts with other law enforcement agencies like this investigation we sometimes uncover networks and are ultimately able to apprehend many predators in our communities, and rescue many traumatized child victims. We appreciate the opportunity to continue such investigations to protect the most innocent and vulnerable members of our society.”
State law enforcement agencies were similarly committed to the successful conclusion of the operations. “Bringing closure to this massive investigation sends a message to the cyber child pornography criminals,” said Bryan Lockerby of the Montana Division of Criminal Investigation. “There is no place to hide and no place where we can’t get you.”
Prosecutors for the United States are Assistant U.S. Attorney Cyndee L. Peterson along with Maureen C. Cain with the U.S. Department of Justice, Child Exploitation & Obscenity Section. The investigation is a cooperative effort between the Federal Bureau of Investigation, United States Department of Justice - Child Exploitation and Obscenity Section, Montana Department of Criminal Investigations, the Helena Police Department, Homeland Security Investigations, and the Montana Internet Crimes Against Children Task Force.
The Judgments in this case are the product of diligent work by the very dedicated and skilled professionals who were involved in Operation Kingdom Conqueror and Operation Moon Runner. Protection of the public is one of our primary missions in these cases. Children within the United States as well as around the world are safer because these boards have been taken down. As long as children continue to be sexually exploited through the use of the Internet and these bulletin boards, this office will remain committed to that mission,” concluded United States Attorney Cotter.
International Operation Concludes in Montana; Convicts 21 Defendants of Child Pornography-Related CrimesRead the Press Release
An international operation that led to the conviction of 21 defendants for child pornography-related crimes concluded today in the District of Montana. These defendants were involved in the sexual exploitation of children via two international online bulletin boards where members advertised, distributed, viewed and received images depicting child sexual exploitation.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Michael W. Cotter of the District of Montana, Special Agent in Charge Eric Barnhart of the FBI’s Salt Lake City Division, Special Agent in Charge David A. Thompson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Denver Field Office and Division Administrator Bryan Lockerby of the Montana Division of Criminal Investigation made the announcement.
Operation Kingdom Conqueror began in 2011 when FBI agents and officers from the Internet Crimes Against Children Task Force (ICACTF) received a tip that ultimately led to the discovery of Kingdom of Future Dreams (KOFD), an online bulletin board operated by Paul Wencewicz, 49, of Polson, Montana, that members used to advertise and trade sexually explicit images of young girls. Between November 2009 and March 2012, Wencewicz and other members of the bulletin board sexually exploited hundreds of girls, both domestically and internationally, by trading images and videos of them.
The KOFD bulletin board was housed on a server in the Isle of Jersey. Through cooperation with local police and British authorities, the United States obtained the boards’ data, allowing U.S. federal agents to identify 13 defendants in the United States in addition to Wencewicz and conduct searches in New Jersey, Maryland, Missouri, Indiana, Virginia, Washington, Massachusetts, Kentucky, Arizona, Texas and California. This investigation revealed that eight of the 14 KOFD defendants were also members of a second child exploitation bulletin board called the Dark Moon, which involved a highly complex encryption scheme. After gaining access to the board in April 2013, agents identified additional members.
Today, the final defendant, Shawnston Beaudoin, 31, of Kennesaw, Georgia, was sentenced to 210 months in prison and lifetime supervised release. Beaudoin pleaded guilty to conspiracy to advertise child pornography on Sept. 30, 2015. In connection with his plea, Beaudoin admitted that he became an active member of Dark Moon in October 2012 and remained an advanced member of the board until April 2013. During that time, he posted hyperlinks and preview images of child exploitation to the advanced member section of the board. Beaudoin also requested child pornography from other members and responded to and commented on other members’ postings. Chief U.S. District Court Judge Dana Christensen of the District of Montana presided over the sentencing.
In addition to Beaudoin, the following individuals have been convicted of conspiracy to advertise child pornography and sentenced as follows:
- Paul Wencewicz, 49, of Polson, was sentenced to 220 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
- Scott Long, 55, of Portland, Oregon, was sentenced to 200 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
- Steve Humiston, 58, of Tacoma, Washington, was sentenced to 210 months in prison and lifetime supervised release and was ordered to pay a $5,000 fine and $29,859 in restitution;
- Phillip Morris, 43, of Jeffersonville, Indiana, was sentenced to 216 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
- Tony Bronson, 55, of Gary, Indiana, was sentenced to 224 months in prison and 10 years supervised release and was ordered to pay $29,859 in restitution;
- Jeffrey Woolley, 55, of Nicholasville, Kentucky, was sentenced to 180 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
- Charles Crosby, 45, of Trenton, New Jersey, was sentenced to 210 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
- John Johnson, 59, of Locust Grove, Virginia, was sentenced to 180 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
- Joseph Purificato, 25, of Mount Vernon, Missouri, was sentenced to 180 months in prison and 10 years supervised release and was ordered to pay $29,859 in restitution;
- Ian Nosek, 44, of Charlottesville, Virginia, was sentenced to 216 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
- Robert Krise, 67, of Gaithersburg, Maryland, was sentenced to 180 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
- John Merchberger III, 48, of Dayton, Maine, was sentenced to 220 months in prison and lifetime supervised release and was ordered to pay a $5,000 fine;
- Daniel Brown, 27, of Taylors, South Carolina, was sentenced to 180 months in prison and lifetime supervised release;
- Marc Edoria, 24, of Sacramento, California, was sentenced to 180 months in prison and 10 years supervised release;
- Tony Gustafson, 49, of Hastings, Nebraska, was sentenced to 200 months in prison and lifetime supervised release;
- Ryan Hatfield, 26, of Mount Washington, Kentucky, was sentenced to 180 months in prison and 10 years supervised release; and
- David Woods, 37, of Corfu, New York, was sentenced to 180 months in prison and 15 years supervised release.
The following defendants were convicted at trial of participating in a child exploitation enterprise and conspiracy to advertise child pornography and were sentenced as follows:
- Joshua Petersen, 45, of Prescott, Arizona, was sentenced to 220 months in prison and lifetime supervised release and was ordered to pay $29,859 restitution; and
- Steven Grovo, 35, of Shirley, Massachusetts, was sentenced to 220 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution.
Richard Pitts, 28, of Cathedral City, California, pleaded guilty to conspiracy to distribute child pornography and was sentenced to 84 months in prison and 15 years of supervised release.
“The predators on these illicit websites glorified the sexual assault of little girls and encouraged each other to share images of this terrible abuse,” said Assistant Attorney General Caldwell. “For the victim children, this trauma lasts the rest of their lives. Thanks to the great partnership among federal, state and local law enforcement, these criminals will be punished for their vile crimes and prevented from harming other children.”
“This collaboration of federal and state law enforcement agencies demonstrates the power of the ICACTF and the concerted strength we can bring to bear against these types of child predators when we combine forces,” said U.S. Attorney Cotter. “These operations succeeded in bringing to justice a group of dangerous and sadistic individuals, some of whom had committed prior sex offenses against children. As a result of the operations, one threat against Montana’s children—and children everywhere—has been dismantled. We will continue this successful collaboration and our efforts to protect our children and our communities into the future.”
The FBI, ICE-HSI, the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), the Montana Department of Criminal Investigations, the Helena, Montana, Police Department and Montana ICACTF investigated the case. CEOS Trial Attorney Maureen C. Cain and Assistant U.S. Attorney Cyndee L. Peterson of the District of Montana prosecuted the case. The Criminal Division’s Office of International Affairs also provided assistance.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Houston Man Sentenced in Humble Bank RobberyRead the Press Release
HOUSTON – The final defendant convicted in the March 2015 robbery of the Shell Federal Credit Union on Wilson Road in Humble has been ordered to federal prison, announced U.S. Attorney Kenneth Magidson. Derrick Devon Malone, 24, of Houston, was one of four members of a bank robbery gang who pleaded guilty for their roles in the crime.
Today, U.S. District Judge Alfred H. Bennett ordered Malone to serve a total of 164 months in federal prison to be immediately followed by five years of supervised release. Christopher Parker, 28, Shaterrika Monique West-Malone, 26, and Crystal Gail McCain-Sims, 25, all also of Houston, were previously sentenced to respective prison terms of 200, 142 and 108 months of imprisonment.
On March 19, 2015, West-Malone entered the bank shortly before the robbery to determine whether there was a security guard in the premises. Malone and Parker then entered the bank at approximately 11:00 a.m. During their entry, Malone, who was armed with a pistol, injured a departing bank customer by throwing her back inside the bank onto the floor.
At that time, Parker approached the new customers desk and confronted a bank employee and two customers who were sitting opposite her. He yelled at the employee, “Give me the money [expletive].” He then grabbed a customer’s cash and identification cards from the counter and jumped onto the tellers’ counter to join Malone, who was pointing his pistol at the heads and bodies of the tellers. Malone screamed at the tellers - “Hurry we will shoot you [expletive], give me the money [expletive], give me the money [expletive], all the money [expletive].”
Parker also shouted, “We want money, I’ll shoot you.” After seizing the cash from the bank and from a customer, Malone and Parker ran out the door, climbed into the vehicle of McCain-Sims, who was the getaway driver and fled the scene together with the accomplices.
Malone and Parker were captured shortly thereafter the robbery. West-Malone was arrested that afternoon because an alert deputy had seen her leave the getaway vehicle and enter her apartment. McCain-Sims was arrested later after law enforcement identified her as the owner of the getaway vehicle.
Customers and employees inside the credit union positively identified the two men. All four defendants eventually pleaded guilty.
The charges and convictions were the result of an investigation conducted by the FBI’s Violent Crime Task Force to include the Harris County Sheriff’s Office and the Houston Police Department. Assistant U.S. Attorney Michael Kusin is prosecuting the case.
Hoover, Alabama Man Charged with Possession of Child PornographyRead the Press Release
Joseph Whitlow Blackburn, 68, of Hoover, Alabama, was charged today and pleaded guilty to a criminal information charging him with possession of child pornography, announced David Rivera, U. S. Attorney for the Middle District of Tennessee.
According to charging documents and the plea agreement, between January 30, 2013 and April 16, 2013, agents with the Internet Crimes Against Children (ICAC) Task Force were conducting an investigation into the sharing of child pornography over the Internet and identified on two separate occasions, video files that depicted child pornography. ICAC Task Force agents subsequently identified the IP address associated with the child pornography downloads and obtained a federal search warrant for the house in Hoover, Alabama where Blackburn lived.
In April 2013 agents executed the search warrant and seized computers and other electronic storage devices. A forensic examination of these devices later revealed pornographic images depicting children. According to the plea agreement entered into with the government, Blackburn admitted that he possessed child pornography and agreed to accept a 3-year prison term, to be followed by 10 years of supervised release. Other conditions of release are also specified in the plea agreement, including requiring Blackburn to register as a sex offender.
This case was transferred to the Middle District of Tennessee due to a potential conflict in the Northern District of Alabama which required recusal. The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Lynne T. Ingram of the Middle District of Tennessee.
Holiday Man Indicted for Multiple Bank RobberiesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Anthony Maresca (53, Holiday) with five counts of armed bank robbery, one count of armed attempted bank robbery, and three counts of possessing and using a firearm during a crime of violence. The alleged robberies occurred in Pinellas, Pasco, and Hernando counties between November 2014 and May 2015. If convicted on all counts, he faces up to life in federal prison. The indictment also notifies him that the United States intends to forfeit the money he obtained from the robberies, as well as the firearm he used during the offenses.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Pinellas County Sheriff’s Office, the Pasco County Sheriff’s Office, the Hernando County Sheriff’s Office, the Clearwater Police Department, and the Pinellas Park Police Department. It will be prosecuted by Assistant United States Attorneys Michael Leeman and Simon Gaugush.
Hawaii Businessman Sentenced to 46 Months in Prison for Tax FraudRead the Press Release
Diverted More than $2 Million from Company to Fund Lavish Lifestyle
A Honolulu County businessman was sentenced to prison yesterday for corruptly endeavoring to obstruct the Internal Revenue Service (IRS) and filing false tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Florence T. Nakakuni of the District of Hawaii.
Albert S.N. Hee, 61, of Kailua, Hawaii, was sentenced by Senior U.S. District Judge Susan Oki Mollway of the District of Hawaii to serve 46 months in prison, to be followed by one year of supervised release. Hee was also ordered to pay a fine of $10,000 and restitution to the IRS in the amount of $431,793. In July following an 11-day jury trial, Hee was convicted of one count of corruptly endeavoring to obstruct the IRS and six counts of filing false individual income tax returns for the years 2007 to 2012.
According to court documents and the evidence introduced at trial, Hee owned Waimana Enterprises Inc., a telecommunications holding company based in Honolulu. Between 2002 and 2012, Hee caused Waimana to pay more than $2 million of his personal expenses. Hee then falsely characterized these personal expenditures as business expenses on Waimana’s corporate income tax returns. Hee also filed false individual income tax returns for 2002 to 2012 on which he failed to report the expenditures as income. Hee’s lavish spending included more than $90,000 for personal massages, which he deducted on the corporate tax returns as “consulting fees,” full-time salaries and benefits for his wife and children even though they performed little to no work for the company and more than $736,900 in college tuition, housing and other expenses for his children.
In 2008, Hee purchased a $1.3 million home in Santa Clara, California, with corporate money and told his accountants that the property would be used by Waimana employees. Instead, from 2008 through 2012, Hee’s children lived in the home during and after they attended college in Santa Clara. At trial, Hee’s children testified that they indeed lived at the home and did not pay any rent to Waimana for their use of the property. Hee’s children also testified that the house was within walking and skateboarding distance of the college campus and that they rented out other rooms in the house to their college friends and collected rent from their roommates, which they kept rather than remit to Waimana.
Waimana financed Hee’s and his family’s trips to Disney World, Tahiti, France and Switzerland. Hee also used company funds to pay for a $17,000, five-day family vacation at the Mauna Lani resort on the Big Island of Hawaii, which Hee falsely characterized as a “stockholder’s meeting” even though he was the only shareholder of the company at that time.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Nakakuni commended the special agents of IRS-Criminal Investigation, who investigated the case, Assistant U.S. Attorney Larry Tong and Trial Attorney Quinn P. Harrington of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Hartford Man Sentenced to 4 Years in Federal Prison for Illegally Possessing FirearmsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JASON WATSON, 28, of Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 48 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms. WATSON also was ordered to perform 100 hours of community service while on supervised release.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of WestHell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” as the leader of the West Hell street gang who, along with WATSON and other associates distributed crack cocaine in the Westland Street area of Hartford.
On April 24, 2014, a grand jury in Hartford returned a 52-count indictment charging 25 members and associates of the WestHell Street Gang, including Scott and WATSON, with narcotics distribution offenses. On April 30, 2014, law enforcement executed federal arrest warrants of the charged defendants and WATSON was arrested at his Hartford residence. On that date, a search of WATSON’s residence revealed a .22 caliber pistol, a .44 caliber revolver, a 9 millimeter pistol and assorted ammunition. Two of the three firearms were manufactured outside of Connecticut.
Prior to April 30, 2014, WATSON had been convicted of multiple felony offenses, and he was on state special parole at the time of his federal arrest. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
WATSON has been detained since his arrest. On April 21, 2015, he pleaded guilty to one count of possession of firearms by a previously convicted felon.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants. The Office of the Chief State’s Attorney is also assisting with this ongoing investigation.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Hartford Man Found with More Than a Kilo of Heroin Pleads GuiltyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that YOANNI SUAREZ, also known as “Cuba,” 39, of Hartford, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of possession with intent to distribute 100 grams or more of heroin.
According to court documents and statements made in court, SUAREZ was arrested on September 18, 2015, after investigators with the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force found him in possession of approximately 1,250 grams of heroin, which was hidden both in his truck and in a residence he utilized.
Judge Shea scheduled sentencing for April 5, 2016, at which time SUAREZ faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
SUAREZ has been detained since his arrest.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Michael J. Gustafson and Gabriel J. Vidoni.
Hammond Resident Pleads Guilty to Conspiracy to Traffic CocaineRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KELVIN PROVOST, age 38, of Hammond, pled guilty today to conspiracy to distribute and to possess with the intent to distribute 500 grams or more of a mixture or substance containing cocaine hydrochloride (“powder cocaine”) and 28 grams or more of a mixture or substance containing cocaine base (“crack cocaine”).
According to court records, in September 2014, PROVOST made two separate sales of crack cocaine to an undercover government source. Then, in November 2014, PROVOST and two other named defendants were traveling along Interstate 12 from Houston, TX, to Hammond, when law enforcement performed a traffic stop on their car. During the stop, officers recovered from PROVOST and his associates approximately 330 grams of powder cocaine, which PROVOST had just purchased from sources in Houston. PROVOST admitted during the traffic stop that he had previously made two other trips to Houston for purposes of obtaining similar quantities of powder cocaine.
PROVOST is facing a mandatory minimum sentence of five years in prison, a maximum sentence of forty years in prison, and a possible fine up to $5,000,000. U.S. District Judge Mary Ann Vial Lemmon will sentence PROVOST on April 14, 2016.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, Louisiana State Police, and Iowa Louisiana Police Department in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Gregory Man Gets 60 Years for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 34-year-old resident of Gregory has been ordered to serve a 60-year federal prison term following his two convictions of production of child pornography, announced U.S. Attorney Kenneth Magidson. Daniel H. Aleman II was convicted Oct. 13, 2015, following a one-day bench trial before Senior U.S. District Judge Hayden Head.
Today, Judge Head ordered Aleman to serve 30 years on each count of conviction to be served consecutively for a total of 60 years in federal prison. He will then be on supervised release for the rest of his life. He will also be ordered to register as a sex offender.
Additional information was also presented today, including testimony from a federal agent with Homeland Security Investigations (HSI). The agent described the videos Aleman recorded while female customers were changing clothes in the dressing rooms at the Goodwill Store where Aleman worked. One video depicted a woman dressing a female child that the agent estimated was approximately four-years-old. The agent also described the videos of child pornography Aleman possessed, many of which depicted prepubescent females engaging in sexually explicit conduct with adult males. The court also took into consideration a victim letter read in court by the mother of two girls Aleman sexual assaulted. In the letter, the mother described the impact the sexual abuse has had on the children.
In handing down the sentence, Judge Head noted that this kind of behavior cannot be tolerated. “Mr. Aleman, you should never walk the streets again,” he said.
At the time of the bench trial, the court heard that in December 2014, officers with the Portland Police Department were dispatched to a local Goodwill Store in reference to an employee video recording female customers while they were changing clothes in the dressing rooms. A customer reported that a store employee, later identified as Aleman, taped a small video recorder to the corner of a shopping cart. Aleman then positioned the shopping cart under the bottom gap of the dressing room door.
In January 2015, law enforcement executed a search warrant at Aleman’s residence and seized various electronic devices. A forensic analysis on those devices revealed more than 50 videos of child pornography, more than 20 videos of women in dressing rooms, a video of Aleman sexual assaulting an unconscious adult female and 12 videos of Aleman sexual assaulting two children. The children were identified and confirmed the abuse.
At trial, Aleman did not deny the allegations, only argued that the search was not valid. The court found him guilty as charged.
Aleman was arrested on federal charges in April 2015 and has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future
The charges are the result of an investigation by Homeland Security Investigations, Portland Police Department and the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
Great Falls Roofer Sentenced to Seven Years in PrisonRead the Press Release
GREAT FALLS – The United States Attorney’s Office today announced that James Antonio Amato, 50, a Great Falls roofer, was sentenced to 88 months in federal prison followed by 4 years of supervised release by U.S. District Judge Brian Morris. Amato entered a guilty plea in September of 2015 to possession with intent to distribute methamphetamine. Amato faced a maximum sentence of 40 years in prison.
Assistant United States Attorney Jessica Betley told the court that in February 2015 the Russell Country Drug Task Force began to purchase methamphetamine from a local woman. Law enforcement later learned that James Amato had provided the woman with methamphetamine for redistribution in the Great Falls area. Over the next few months, the task force completed numerous undercover purchases of methamphetamine and determined that on each occasion Amato was the woman’s source for methamphetamine. On several occasions, while the woman was under surveillance, law enforcement observed her meet the defendant and obtain methamphetamine which the agents had arranged to purchase. Investigators also determined that Amato traveled to Helena, to meet his source, when he needed to replenish his supply of the drug.
On April 11, 2015, law enforcement stopped the defendant as he traveled back to Great Falls from Helena. Amato was searched and officers removed one-fourth of a pound of methamphetamine from his pants. The defendant told law enforcement that he frequently picked up methamphetamine in Helena in order to transport it back to Great Falls. Officers also found seven checks in the defendant’s truck made out from the defendant to the defendant’s supplier of methamphetamine in Helena for a total of $10,562.96.
Parole does not exist in the federal system so Amato will serve all of the 7 year sentence, except for a small reduction if he maintains good behavior while incarcerated. The investigation was conducted by the Russell Country Drug Task Force.
Glenham Man Sentenced for Conspiracy to Distribute and Possess with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Glenham, South Dakota, man convicted of Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine was sentenced on January 4, 2016, by U.S. District Judge Charles B. Kornmann.
Aaron Sackreiter, age 35, was sentenced to 108 months in custody, followed by 10 years of supervised release, a $10,000 fine, and $100 to the Federal Crime Victims Fund. He must also forfeit a Taurus Judge .41 caliber pistol, and $4,514.13 in currency that was seized.
Sackreiter was indicted for Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance and Possess with Intent to Distribute a Controlled Substance by a federal grand jury on September 16, 2014. He pled guilty to Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance on October 27, 2015. The drug quantity attributed to Sackreiter as a part of his role in the narcotics trafficking conspiracy was at least 50 grams, but less than 200 grams, of methamphetamine.
Sackreiter conspired with individuals from California to have methamphetamine brought into South Dakota for re-distribution. Sackreiter distributed some of the methamphetamine himself and recruited others to distribute for him on both the Cheyenne River and Standing Rock Sioux Reservations.
On June 29, 2014, local law enforcement went to Sackreiter’s residence to serve an arrest warrant on him. Sackreiter, Luis Salazar, and Spring Gullickson were present at the residence when law enforcement arrived. During the arrest process, law enforcement could smell a distinct odor of marijuana coming from inside the residence. While they were searching Sackreiter’s person after placing him under arrest, they found $533.13 in cash. Search warrants were then obtained for the residence. A quantity of methamphetamine the size of a billiard ball was seized during execution of the search warrant. The “ball” weighed 65 grams (2.3 ounces). Also found during the search was $3,981.00 in cash, a loaded Taurus Judge pistol, and other drug-related evidence.
Previously, on June 13, 2014, Sackreiter and Salazar had at least eight ounces of methamphetamine in their possession. Sackreiter recruited Gullickson to assist him in distributing the methamphetamine. Sackreiter also provided methamphetamine to Stanley Schily multiple times so that Schily could re-distribute the methamphetamine to others. Schily purchased approximately four "8-balls" (3.5 grams) and other quantities of methamphetamine from Sackreiter a total of five or six times. A separate search of Schily’s residence on July 1, 2014, resulted in the seizure of additional quantities of methamphetamine.
This case was investigated by the Mobridge Police Department and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller prosecuted the case.
Sackreiter was immediately turned over to the custody of the U.S. Marshals Service.
Gainesville Man Sentenced to 25 Years for Human TraffickingRead the Press Release
GAINESVILLE, FLORIDA – Mikel Alemin Craig, 33, of Gainesville, Florida, was sentenced today to 25 years in federal prison for sex trafficking of an adult by force and coercion. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
During Craig’s guilty plea on August 19, 2015, the government presented evidence that, between January 1, 2014, and March 30, 2014, Craig was involved in a scheme to make money by using an adult female to perform sex acts. The defendant caused a picture of the victim, posing in a motel room, to be posted on Backpage.com, an Internet advertising website. The advertisement was listed in a section for “escort services,” when, in truth, the advertisement was for the purpose of offering the victim for commercial sexual activity. As a result, the victim engaged in sexual activity for money on numerous occasions with persons who responded to the advertisement. This sexual activity took place at various locations in the Northern District of Florida, including local hotels in Gainesville, Florida. Craig used physical and nonphysical means to coerce the victim to engage in this sexual activity, including violence and the threat of physical violence against her. He also collected proceeds from the victim’s commercial sexual activity.
The prosecution was brought as part of the Department of Justice’s Project Safe Childhood Program. The case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement and was prosecuted by Assistant United States Attorney Frank Williams.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Four Convicted in Large-Scale Drug and Money Laundering ConspiracyRead the Press Release
CORPUS CHRISTI, Texas - One man and three women, all of South Texas, have entered guilty pleas to charges of conspiracy to possess with the intent to distribute cocaine and conspiracy to commit money laundering, announced U.S. Attorney Kenneth Magidson.
Efren Cisneros-Reyes, 36, Mayra Alejandra Cervantes, 27, and Norma Argelia Ramirez, 42, all of McAllen; and Gabriela Martinez, 34, of Mission, all pleaded guilty to conspiracy to possess with the intent to distribute more than five kilograms of cocaine. Cisneros-Reyes, Cervantes and Ramirez also pleaded guilty to conspiracy to launder monetary instruments, while Cisneros-Reyes was also convicted of being a felon in possession of a firearm.
At the time of his plea, Cisneros-Reyes agreed to the forfeiture of two firearms - a Cobra FS380, .380 caliber pistol and a Maverick Arms, Model 88, 12-gauge shotgun. Ramirez agreed to the forfeiture of a Wells Fargo bank account in her name.
The investigation identified the four defendants as leaders within this criminal organization. Law enforcement determined that the organization utilized many different methods of transportation to include, but not limited to, concealing cocaine in false compartments located inside passenger vehicles and tractor/trailers. Further, the investigation has revealed a total of 19 funnel bank accounts directly linked to members of the organization. These funnel bank accounts have been used to funnel illicit bulk currency from throughout the country to the Rio Grande Valley.
It is estimated that at least 100 kilograms of cocaine were trafficked during the course of the conspiracy and more than $1 million in currency was transported to South Texas.
Based upon the amount of the alleged cocaine involved, all of the defendants face no less than 10 years and a maximum of life in federal prison. Those convicted of the money laundering conspiracy also face up to 20 years imprisonment. Cisneros-Reyes could receive up to another 10 years for the firearms conviction. Sentencing has been set for April 21, 2016.
The case is the result of an Organized Crime Drug Enforcement Task Force Operation dubbed “Operation Green-Eyed Tiger” conducted by the Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Border Patrol, Homeland Security Investigations, police departments in Mission and McAllen as well as the U.S. Marshals Service. Assistant United States Attorney Julie K. Hampton is prosecuting the case.
Former UCSD Professor Admits Fraud, Agrees to Forfeit $180,000Read the Press Release
Assistant U.S. Attorneys Rebecca S. Kanter (619-546-7304) and Christopher M. Alexander (619-546-6665)
NEWS RELEASE SUMMARY – January 7, 2016
SAN DIEGO - Dr. Homayoun Karimabadi, a former research professor at the University of California, San Diego (“UCSD”) and the Chief Executive Officer for SciberQuest, Inc., was charged in federal court today with fraudulently obtaining millions of dollars in government grants and contracts.
Dr. Karimabadi and SciberQuest, Inc., the corporation run by Dr. Karimabadi, both waived indictment and were arraigned on an information charging them with felony wire fraud and criminal forfeiture. SciberQuest entered a guilty plea before U.S. Magistrate Judge Karen S. Crawford; Dr. Karimabadi is scheduled to enter into a deferred prosecution agreement on January 15, 2016 at 8:30 a.m. before Judge Gonzalo P. Curiel. Additionally, Dr. Karimabadi and SciberQuest jointly agreed to forfeit $180,000 as money that was improperly received as a result of the fraud, in addition to a fine that will be imposed on the corporation at sentencing.
According to court records, during the fraud Dr. Karimabadi was the Chief Executive Officer and Chief Technology Officer at SciberQuest and at the same time was employed as a research professor at UCSD where, among other things, he served as the group leader of the space physics plasma simulation group.
According to the corporation’s plea agreement, from January 2005 to June 2013, Dr. Karimabadi, who has a Ph.D. in Plasma Astrophysics, applied for and received grants or contracts from the National Science Foundation (“NSF”), United States Air Force (“USAF”) and National Aeronautics and Space Administration (“NASA”) both through SciberQuest and UCSD. SciberQuest was awarded around $6.4 million under 22 separate grants or contracts. Of those, eight were Small Business Innovation Research (“SBIR”) grants with a value of about $1,760,000. The SBIR Program was enacted by Congress to strengthen the role of innovative small business concerns in federal-funded research and development in order to stimulate technological innovation, foster and encourage participation by socially and economically disadvantaged small business concerns, and increase private sector commercialization of innovations derived from federal research and development, thereby increasing competition, productivity and economic growth.
To obtain the SciberQuest grants or contracts, Dr. Karimabadi made false statements to government officials. Specifically, in award proposals, Dr. Karimabadi failed to disclose all of his and SciberQuest’s current and pending grants or contracts, thereby overstating the time he and SciberQuest could devote to the projects he was applying to receive. In one example, Dr. Karimabadi only disclosed to NSF four current and eleven pending grants, and knowingly failed to disclose an additional ten current and five pending grants. In all, Dr. Karimabadi disclosed to NSF only about three months per year of work that he was committed to, when in fact, he had already committed to various agencies over nineteen months per year of work.
Dr. Karimabadi also falsely certified in SBIR award proposals submitted to NASA and USAF that he was primarily employed by SciberQuest. In truth, he was employed full-time at UCSD both at the time of the award submission and during the performance of the grant. Dr. Karimabadi and SciberQuest made these false statements to be awarded grants or contracts that they likely would not have received but for the deception. As a result, from 2005 to 2013, Dr. Karimabadi received over $1.9 million in salary from SciberQuest due, in part, to the fraudulently obtained grants or contracts.
“Dr. Karimabadi took advantage of his trusted positions at SciberQuest and UCSD to deceive government agencies into awarding federal grants or contracts,” said U.S. Attorney Laura E. Duffy. “Federal research funding is an important stimulus to local economies, especially in San Diego, which has a large research university presence. Fraud in the award process threatens to undermine confidence in the continued federal funding of research and innovation. With the continued diligence of our agency partners, we will continue to deter the dishonest practices used in this case by prosecuting those responsible and taking away any ill-gotten gains.”
Chris Hendrickson, Special Agent in Charge of the Defense Criminal Investigative Service Western Field Office, said “As this matter demonstrates, we are committed to investigate not only those who make false claims in supplying goods and services for the national defense, but also those who misrepresent research and submit deceitful intellectual representations. Any such abuses of the public trust for personal gain simply will not be tolerated.”
Allison Lerner, NSF Inspector General said, “Dr. Karimabadi violated the public trust to enrich himself when he fraudulently represented his work on NSF awards. My office will continue to vigorously pursue those who attempt to illegally obtain scarce federal dollars intended for scientific research, and I commend the U.S. Attorney’s office for its sustained efforts in reaching this settlement agreement.”
“Individuals who fraudulently obtain federal research funds earmarked for small businesses deprive others of an opportunity to pursue meaningful technological discoveries,” said Paul Martin, NASA Inspector General. I commend the outstanding efforts of our agents and the other law enforcement agencies that are committed to ensuring the integrity of this program and prosecuting to the fullest extent of the law those who abuse research programs for the sake of personal enrichment.”SciberQuest will be sentenced on March 18, 2016 at 8:30 a.m. before U.S. District Judge Gonzalo P. Curiel. Dr. Karmabadi was placed on bond and ordered to return to court on January 15, 2016, for further proceedings to enter a Deferred Prosecution Agreement for his role in the matter.
A deferred prosecution agreement is an agreement between a criminal defendant and the United States Attorney’s Office wherein the defendant admits to the facts constituting a criminal offense, but the United States agrees to suspend the entry of judgment for a period of time and agrees to dismiss the charges if, during that period, the defendant complies with certain conditions set forth in the agreement.
The investigation was conducted by the Department of Defense, NSF, and NASA. The case is being prosecuted by Assistant U.S. Attorneys Rebecca S. Kanter and Christopher M. Alexander of the Southern District of California.
Those with information relating to fraud, corruption, or waste in government contracting should contact the DOD Hotline at www.dodig.mil/hotline or call (800) 424-9098.
DEFENDANTS
SciberQuest, Inc. Del Mar, California
Homayoun Karimabadi Age: 56 Del Mar, California
Criminal Case No. 16CR026-GPC
SUMMARY OF CHARGE
Wire fraud, a felony, in violation of Title 18, United States Code, Section 1343.
SciberQuest’s Maximum Penalty: 5 years of probation, and a minimum of 1 year of probation; a fine of $500,000, or twice the gross gain or loss derived from the offense; a mandatory special assessment of $400 per count; an order of restitution; and an order of forfeiture.
Karimabadi’s Maximum Penalty: 20 years in custody; a fine of $250,000, or twice the gross gain or loss derived from the offense; a mandatory special assessment of $100 per count; an order of restitution; and an order of forfeiture.
INVESTIGATING AGENCIES
Department of Defense, Office of Inspector General
National Science Foundation, Office of Inspector General
National Aeronautics and Space Administration, Office of Inspector General
Former Savings and Loan Employee Pleads Guilty to Embezzling MoneyRead the Press Release
CINCINNATI – Rebecca D. Bingham, 39, of Cincinnati pleaded guilty in U.S. District Court to theft from a savings and loan corporation.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the plea entered into today before U.S. District Judge Michael R. Barrett.
According to court documents, Bingham was employed at Cincinnatus Savings and Loan from 2004 until September 2014. During that time, Bingham embezzled approximately $215,000 from the financial institution.
She took advantage of her autonomy as Assistant Vice President and Senior Accountant to conceal stealing from the institution’s main operational account. She deposited at least 63 checks into her personal account. Bingham then used the funds for her own personal expenses, to pay off a vehicle in her name and to assist an unemployed family member.
Theft from a savings and loan corporation carries a maximum sentence of up to 30 years in prison and a fine of up to $1 million.
U.S. Attorney Stewart commended the cooperative investigation by the FBI, as well as Assistant United States Attorney Anthony Springer, who is representing the United States in this case.
Former Nurse Pleads Guilty to Stealing Narcotics from HospitalRead the Press Release
BOSTON – A former nurse at Franklin Baystate Medical Center in Greenfield, Mass. pleaded guilty today in U.S. District Court in Springfield to stealing pain medication from the hospital’s automated drug dispensing machine.
Daniel Herlocker, 41, of Brattleboro, Vt., pleaded guilty to an Information charging him with acquiring and obtaining controlled substances by deception and subterfuge.
In fall 2014, while Herlocker was employed as a nurse at Franklin County Medical Center, he diverted Dilaudid, also known as hydromorphone, as well as morphine from sterile cartridge units known as carpujects. The carpujects were stored in an automated drug dispensing machine. Herlocker syphoned the drugs from the carpujects with sterile needles and replaced the medications with sterile saline solution.
The charging statute provides a sentence of no greater than four 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; Spencer Morrison, Acting Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Monica Bharel, MD, MPH, Commissioner of the Massachusetts Department of Public Health, Division of Food and Drugs, Drug Control Program, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Branch Office.
Former Norwalk Resident Sentenced to 70 Months in Prison for Traffcking HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that OMAR ANDRADE, 29, a citizen of Mexico last residing in Norwalk, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 70 months of imprisonment, followed by four years of supervised release, for trafficking heroin.
According to court documents and statements made in court, this matter stems from an investigation by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Norwalk Police Department into suspected cocaine and heroin distribution by ANDRADE. In September 2014, ANDRADE agreed to provide one kilogram of heroin to a DEA Task Force officer acting in an undercover capacity. ANDRADE, Joel A. Estrella-Disla and Wilmer Antonio Gomez-Rodriguez were arrested on September 30, 2014, after they delivered approximately one kilogram of heroin to a pre-arranged location in Norwalk.
ANDRADE has been detained since his arrest. On August 24, 2015, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
ANDRADE faces immigration proceedings after he serves his prison term.
On August 24, 2015, Estrella-Disla pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin. On September 10, 2015, a jury found Gomez-Rodriguez guilty of one count of conspiracy to possess with intent to distribute, and to distribute, one kilogram or more of heroin, and one count of possession with intent to distribute, and distribution of, 100 grams or more of heroin. Both await sentencing.
This case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Former Manager of IBEW Credit Union in Paducah Sentenced to 78 Months in Prison for Embezzling More Than $600,000Read the Press Release
Stolen money used to benefit herself and her friends and family
PADUCAH, Ky. – Debra C. Pyfrom, the former manager of the International Brotherhood of Electrical Workers (IBEW) Local 816 Federal Credit Union, was sentenced yesterday in U.S. District Court by Senior Judge Thomas B. Russell to serve 78 months in prison and pay restitution in the amount of $600,520.16 for committing bank fraud, announced U.S. Attorney John E. Kuhn, Jr.
Pyfrom pled guilty in September of last year to executing a scheme for an unknown period of time, up until she was terminated by IBEW and arrested in July 2014. During that time, Pyfrom admitted to embezzling and stealing money from IBEW and its members for an approximate total loss exceeding $600,000. Pyfrom admitted to using the money for her personal benefit and for the benefit of her daughter, her boyfriend, friends, and family. She did this by manipulating credit union accounts, posting false loan payments, misappropriating cash, and taking out loans in members’ names without their knowledge.
Pyfrom also admitted to stealing money from IBEW credit union members’ accounts to cover her personal bills and those of her daughter, boyfriend and others, who had personal deposit accounts at the credit union. Pyfrom would cover these withdrawals with false, computer entry only deposits.
Further, Pyfrom admitted to issuing loans to herself and to her daughter and then posting false payments on those loans in order to conceal the fraud and make the loans appear current on IBEW’s books.
Lastly, Pyfrom admitted to taking out loans in the names of other IBEW account holders without their knowledge and using that loan money for her own benefit. Again, the balances on these loans were never repaid; rather, Pyfrom would manipulate the entries in the IBEW books in order to falsely show that the loan payments were current.
Due to its insolvency as a result of Pyfrom’s fraud, IBEW was forced into liquidation by the National Credit Union Administration.
This case was prosecuted by Assistant United States Attorney Nute A. Bonner and was investigated by the McCracken County Sheriff’s Office and the Federal Bureau of Investigation.
Former Greene County Sheriff's Deputy Charged with Child PornRead the Press Release
jones_complaint.pdf (2.25 MB)SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Greene County, Mo., Sheriff’s Deputy has been charged in federal court with possessing child pornography.
Juan Jones, 27, of Springfield, Mo., was charged in a federal criminal complaint filed in the U.S. District Court in Springfield, Mo., on Wednesday, Jan. 6, 2015. Jones remains in federal custody pending a detention hearing on Monday, Jan. 11, 2016.
The federal criminal complaint alleges that Jones was in possession of child pornography between Aug. 21, 2015, and Jan. 6, 2016.
According to an affidavit filed in support of the criminal complaint, law enforcement received a Cyber Tip that had originally been filed with the National Center for Missing and Exploited Children by Dropbox, Inc. Dropbox is a file hosting service and online backup facility that offers cloud storage, file synchronization and client software.
Dropbox had discovered many video and image files that they believed contained child pornography. Investigators determined that Jones was connected to the account responsible for uploading those files to Dropbox. A search warrant was executed for the Dropbox account, which contained 168 video files and approximately 1,500 image files depicting child pornography. Some of the files depict children as young as infants being sexually abused by adult males.
A search warrant was executed on Wednesday, Jan. 6, 2016, at Jones’s residence. While the warrant was being executed, law enforcement officers contacted Jones at his place of employment, the Greene County, Mo., Sheriff’s Department, and he was placed under arrest.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. The case was investigated solely by the Southwest Missouri Cyber Crimes Task Force and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Executive of Nuclear Power Company SentencedRead the Press Release
BOISE - Jennifer R. Ransom, 41, of Meridian, Idaho, was sentenced today in United States District Court to 30 months in prison followed by three years of supervised release—the first six months of which is home confinement--for the crime of securities fraud, U.S. Attorney Wendy J. Olson announced. Senior United States District Judge Edward J. Lodge also ordered Ransom to forfeit $580,780 and pay $116,138 in restitution to victim-investors. Ransom pleaded guilty to one count of securities fraud on April 21, 2015.
According to the plea agreement, Ransom was the Senior Vice President of Administration of Alternate Energy Holdings, Inc. (“AEHI”). AEHI was a development stage company headquartered in Eagle, Idaho, that planned to construct and operate a nuclear power plant in Payette County, Idaho.
According to the plea agreement, Ransom joined AEHI in late 2007. Prior to joining AEHI, Ransom took and passed the Series 63 examination, one of the tests required to become a licensed Securities Agent, and knew it was wrongful and unlawful to engage in conduct that was designed to defraud or deceive investors by artificially controlling or fraudulently affecting the price of securities. Notwithstanding, she agreed with her co-defendant, Donald L. Gillispie, the former President and CEO of AEHI, and other “nominees” to a scheme to defraud or deceive AEHI investors.
According to the plea agreement, the scheme involved Gillispie and Ransom recruiting nominees to make purchases of AEHI stock on the market for the express purpose of artificially inflating the market price of AEHI stock. Ransom personally helped recruit one of the nominees. Without investors’ knowledge, Gillispie and Ransom provided AEHI funds, obtained almost exclusively from investors, to two of the nominees to fund their market purchases of AEHI stock.
According to the plea agreement, investors who purchased AEHI stock directly from AEHI, through Private Placement Memoranda (PPM), were offered a price discounted from the market price that nominees were attempting to inflate. However, PPM investors could only purchase restricted AEHI stock, which they could not sell for six months to one year. On September 9, 2009 through September 11, 2009, Ransom assisted a nominee in making purchases of AEHI stock on the market. The purpose of these purchases was to artificially increase the market price of AEHI stock, which was trading above the PPM price. During the next two months, private investors bought approximately $516,885 worth of AEHI restricted stock at the lower PPM price.
According to the plea agreement, Ransom received shares of AEHI stock as executive compensation. From June of 2010 through September of 2010, a period during which attempts were being made to artificially inflate the market price of AEHI stock, Ransom sold approximately 1,000,000 of her shares and received approximately $675,326 in return, of which approximately $580,780 was the proceeds of securities fraud.
“This sentence sends the clear message that those who take actions to intentionally mislead stock purchasers for their own personal gain will be held accountable,” said Olson. “Our securities markets require, and investor decisions rely on, fair dealing, not deception. Ms. Ransom’s intentional decision to disregard her obligations as a corporate vice president warrants her prosecution and punishment in this case.”
In May of 2015, Ms. Ransom’s co-defendant, Donald Gillispie, failed to appear for two scheduled arraignment hearings. He remains a fugitive and is being pursued by the United States Marshals Service.
The case was investigated by the Internal Revenue Service, Criminal Investigation Division, and the Federal Bureau of Investigation.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
Former Evanston Man Convicted of Robbing First Federal Savings Bank in Rock FallsRead the Press Release
ROCKFORD — A former Evanston, Ill. man was convicted today of bank robbery following a three-day jury trial in federal court in Rockford.
CONRAD J. GONZALEZ, 47, was found guilty of robbing the First Federal Savings Bank, located at 701 1st Ave., in Rock Falls, Ill. on Oct. 30, 2013.
According to the indictment and evidence at trial, at approximately 1:00 p.m. on Oct. 30, 2013, Gonzalez entered First Federal wearing a baseball cap and Chicago Bears sweatshirt. Gonzalez approached a bank teller and handed her a note demanding money. When the teller attempted to retrieve the note from the counter, Gonzalez said, “That was a stupid thing to do,” and took the note back. The teller then handed $1,870 to Gonzalez who then walked out of the bank on foot.
Gonzalez faces a maximum potential penalty of up to 20 years in prison, up to 3 years of supervised release following imprisonment, a fine of up to $250,000, and full restitution. The court must impose a reasonable sentence guided by the advisory United States Sentencing Guidelines. Sentencing for Gonzalez is set for April 19, 2016, at 2:30 p.m.
The conviction was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation. The Rock Falls and Sterling Police Departments assisted in the investigation.
The government was represented by Assistant U.S. Attorneys Joseph C. Pedersen and Monica V. Mallory.
Floridian Admits Concealing Assets from Bankruptcy CourtRead the Press Release
PITTSBURGH - A Florida resident has pleaded guilty in federal court on a charge of concealment of bankruptcy assets, United States Attorney David J. Hickton announced today.
Gregory M. Makozy, Sr., 54, of Port St. Lucie, Fla., pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the government represented to the court that Makozy concealed assets from the bankruptcy court in a Chapter 7 Petition in bankruptcy filed in 2013 by transferring assets he owned to others, including a 2005 Aston Martin automobile, and real estate located in Butler County, Pa.
Judge Schwab scheduled the sentencing for May 11, 2016. The law provides for a total sentence of 5 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Office of the United States Trustee, the United States Postal Inspection Service and the Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of Gregory M. Makozy.
Five indicted for bringing multi-kilo shipments of heroin, cocaine and marijuana to Toledo area from California and MexicoRead the Press Release
Five men were named in an 11-count indictment, accused of conspiring to bring heroin, cocaine and marijuana to the Toledo area from Mexico and California, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Indicted are: Jesus Reyes, 27, of Los Angeles; Jose Leal Jr., 27, of Los Angeles; Edgar Campos, 26, of San Fernando, Calif.; Rigoberto Luna Luna, 48, of Mexico, and Eric Dodd, 25, of Oregon, Ohio.
Reyes, Leal, Campos and Luna obtained the drugs in California and Mexico and distributed the heroi, cocaine and marijuana to members of the Alejandro Garcia organization, a narcotics operation that operated in Northwest Ohio. This took place beginning in 2010, according to the indictment.
Reyes, Leal, Campos and Luna facilitated the transportation of kilogram-quantities of heroin, cocaine and marijuana to the Toledo area by utilizing semi-truck deliveries, parcel delivery services and couriers, including Dodd, according to the indictment.
Dodd assisted in the distribution of narcotics to mid-level and lower-level drug dealers in the Toledo area, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Michael Freeman following an investigation by the Federal Bureau of Investigation, the Toledo Police Department and the Metro Drug Task Force.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Federal Jury Convicts Jefferson County Man for Receiving, Distributing and Possessing Child PornographyRead the Press Release
BIRMINGHAM – A federal jury on Wednesday convicted a Jefferson County man on multiple charges of receiving, distributing and possessing child pornography, announced U.S. Attorney Joyce White Vance and Alabama Law Enforcement Agency Secretary Spencer Collier.
Following a three-day trial before U.S. District Judge R. David Proctor, the jury deliberated less than one hour before convicting MARK ALAN LOVE, 50, for receiving, distributing and possessing child pornography between 2010 and 2014.
Love used his home computer and a peer-to-peer file sharing program to download and share thousands of images of child pornography, including images of prepubescent children under 12 years old, according to evidence at trial.
Love remains in federal custody. He is scheduled for sentencing April 19.
The Internet Crimes Against Children Task Force and ALEA’s State Bureau of Investigation investigated the case. Assistant U.S. Attorneys Jacquelyn M. Hutzell and Daniel J. Fortune prosecuted the case.
Father and Son Charged with Drug Related Murder on the Hoopa Indian ReservationRead the Press Release
SAN FRANCISCO – Rodney Vincent Ortiz and Vincent Rudy Ortiz were arraigned in federal court today for their alleged involvement in the March 21, 2015, drug related shooting and murder on the Hoopa Indian Reservation in Humboldt County, California, announced Acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation, Special Agent in Charge David J. Johnson.
Rodney Ortiz, 53, and Vincent Ortiz, 26, of Willow Creek, Calif., were indicted by a federal grand jury on December 17, 2015. In the indictment, the defendants are charged with conspiracy to distribute and possess with intent to distribute marijuana, use of a firearm during and in relation to a drug trafficking crime, use of a firearm during a drug trafficking crime causing murder, obstruction of justice, and use of a firearm during and in relation to a crime of violence.
Rodney and Vincent Ortiz made their initial appearances before the Honorable Laurel Beeler, United States Magistrate Court Judge today. The defendants are being held pending a bail hearing currently scheduled for January 14, 2016, before Chief United States Magistrate Judge Joseph C. Spero. A status conference is scheduled for February 2, 2016, before U.S. District Judge Richard Seeborg.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The maximum statutory penalty for each of the charged offenses is:
- Drug conspiracy, in violation of Title 21, United States Code, Section 846 and 841(a)(1) and (b)(1)(D): five years imprisonment, two years supervised release, and a fine of $250,000;
- Use of a Firearm During and in Relation to a Drug Trafficking Crime, in violation of Title 18, United States Code, Section 924(c): life imprisonment, mandatory minimum term of 10 years imprisonment, and carries a 25 year mandatory minimum consecutive term of prison for each second or successive 924(c) conviction, five years supervised release, and a $250,000 fine;
- Use of a Firearm During a Drug Trafficking Crime Causing Murder, in violation of Title 18, United States Code Section 924(j): death or life imprisonment, and a $250,000 fine;
- Conspiracy to Obstruct Justice and Obstruction of Justice, in violation of Title 18, United States Code, Section 1512(1)(1)(C) and (k): 30 years imprisonment, five years supervised release, and a $250,000 fine;
- Use of a Firearm During and in Relation to a Crime of Violence, in violation of Title 18, United States Code, Section 924(c): life imprisonment, mandatory minimum term of 10 years imprisonment, and carries a 25 year mandatory minimum consecutive term of prison for each second or successive 924(c) conviction, up to five years supervised release, and a $250,000 fine.
However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Kimberly Hopkins is prosecuting the case with the assistance of Lance Libatique. The prosecution is the result of an investigation by the Humboldt County Sherriff’s Office, Humboldt County District Attorney’s Office, Eureka Police Department, and the Federal Bureau of Investigation.
Eaton Rapids Man, Benjamin Jordan Knight, Sentenced to More Than Seventeen Years in Prison for Distribution Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Benjamin Jordan Knight, 29, of Eaton Rapids, Michigan was sentenced today to 210 months (17.5 years) in federal prison for distributing and attempting to distribute child pornography via the Internet, U.S. Attorney Patrick A. Miles, Jr. announced. In addition to the prison term, Chief U.S. District Judge Robert Jonker imposed a 10-year term of supervised release that will commence once Knight is released from imprisonment. Knight will also be required to register as a sexual offender.
Knight pled guilty on September 17, 2015, to distributing and attempting to distribute child pornography. Knight came to the attention of law enforcement on December 27, 2014, when a witness told police that Knight had used a cell phone to display child pornography in a public place. Ensuing police investigation revealed that Knight had distributed and attempted to distribute child pornography to another individual via the Internet. Investigation further revealed that Knight possessed a quantity of child pornography. Knight’s collection of child pornography included hard-core, graphic material, such as images and videos depicting brutal sexual assaults on infants and toddlers. In addition, investigation revealed that Knight had claimed in chat communications that he had himself sexually abused children in the past and wanted to do so again in the future. He offered to pay the parent of a young child if the parent would allow him to sexually abuse the child. In addition, investigation revealed that Knight had previously held employment taking care of a vulnerable child.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The Department of Homeland Security, Homeland Security Investigations (HSI), Battle Creek Police Department, and Emmett Township Department of Public Safety investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
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East Hartford Man Sentenced to 5 Years in Federal Prison for Trafficking HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that BRAYAN GOMEZ, 26, of East Hartford, was sentenced yesterday by Chief U.S. District Judge Janet C. Hall in New Haven to 60 months of imprisonment, followed by three years of supervised release, for trafficking heroin.
According to court documents and statements made in court, the Drug Enforcement Administration’s Hartford Task Force initiated an investigation into a large-scale heroin trafficking organization in Hartford that was being operated by a close associate of GOMEZ. In March 2014, the DEA Task Force received information that GOMEZ’s associate was in possession of a large quantity of heroin.
On March 20, 2014, investigators observed GOMEZ leave his former residence on Sisson Avenue in Hartford, drive to his associate’s residence on Prospect Street in East Hartford and enter the residence. A short time later, GOMEZ drove a separate vehicle away from the East Hartford residence to a hotel in East Hartford, and then entered the hotel. After approximately 20 minutes, GOMEZ walked out of the hotel with a large duffel bag that he did not have with him when he entered the hotel. He placed the bag in the trunk of his vehicle and then drove away.
Investigators conducted a motor vehicle stop of the vehicle on Prospect Street in East Hartford. After GOMEZ gave his consent to a search of the vehicle, investigators removed the duffel bag from the trunk and seized 99.8 grams of raw heroin and 13,317 bags of heroin, packaged for street sale, containing 278.8 grams of heroin. In addition, investigators seized more than 25,000 empty bags used for packaging heroin, as well as other items used in the processing and packaging of heroin.
On September 14, 2015, GOMEZ pleaded guilty to one count of possession with intent to distribute 100 grams or more of heroin.
The DEA Hartford Task Force includes participants from the Bristol, East Hartford, Hartford, Manchester, New Britain, Newington and Wethersfield Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Decorah Man Sentenced for Selling Goats and Farm Equipment Pledged as Collateral for a Federal Farm LoanRead the Press Release
A man who had pledged assets as collateral for a United States Department of Agriculture farm operating loan and then sold those assets without notifying the Department he was doing so, was sentenced today to five years’ probation.
Andrew Hansen, age 36, from Decorah, Iowa, received the sentence after a guilty plea to one count of conversion of property pledged to a farm credit agency.
In a plea agreement, Hansen admitted that he pledged assets, including farm equipment and dairy goats, as security on Farm Services Agency loans he procured to operate a dairy goat farm in northeast Iowa. Hansen further admitted that, in August 2013, without notifying the Farm Services Agency, he sold goats that he had pledged as security on the loans and then used the proceeds from the sale for his own purposes rather than to pay off the farm loans. He also admitted to selling various pieces of farm equipment that he had also pledged as security on the loans.
Hansen was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to five years’ probation and 50 hours of community service. A special assessment of $100 was imposed and he was ordered to make $35,650 in restitution to the Farm Service Agency. Because Hansen was convicted of a felony offense, he can no longer legally possess firearms or ammunition.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the United States Department of Agriculture.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 15-CR-2039.
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David Christopher Mayhew Sentenced to 26 Years ImprisonmentRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that yesterday in federal court, Senior United States District Judge James C. Fox sentenced DAVID CHRISTOPHER MAYHEW, 43, of Raleigh, NC to 320 months imprisonment, followed by 3 years of supervised release. He also ordered payment of $2,025,300 in restitution
MAYHEW was named in a Superseding Indictment filed on July 2, 2014. He was originally indicted on July 9, 2013. His co-defendant, Ronald McCullough, has not yet been located and arrested on the charges.
Special Agent in Charge Thomas J. Holloman III stated, “The IRS, Criminal Investigation is committed to using our Agent’s financial expertise to help bring those that prey on innocent taxpayers for their own enrichment to justice.”
At trial, the Government presented evidence that MAYHEW was involved in an investment fraud scheme that spanned from January 2009 to May 2012 and swindled more than $2,000,000 from investors, promising them returns as much as 100% in 30 days. One victim testified that he had lost his family’s house as a result of the fraud. Two other victims testified that they had to back out of contracts to purchase property because of the fraud.
Investigation of this case was conducted by the FBI, the IRS Criminal Investigation, the Postal Inspection Service, and the North Carolina Secretary of State’s office, Securities Division. Assistant United States Attorney David A. Bragdon represented the government. AUSA Bragdon stated: “MAYHEW used trust in himself and trust in others to deprive victims of money, money that many of them had taken a lifetime to save.”
"When making investment decisions, Investors should always consider that if it sounds too good to be true, it probably is,” said Thomas Noyes, Inspector in Charge of the US Postal Inspection Service Charlotte Division. "This case was especially egregious because the defendants used the victims’ religious beliefs to gain their trust and steal their money. The US Postal Inspection Service will continue to vigorously pursue those who utilize the US Mail to steal our customers’ hard earned money."
“David Mayhew promised his victims huge investments returns, instead they lost their homes, their life savings, even property where they planned to build a church. Now he’ll pay for his crimes behind bars. The FBI and federal partners will keep exposing those responsible for these schemes as long as innocent people are being swindled,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
Convicted Felon Sentenced for Possessing Loaded FirearmRead the Press Release
PROVIDENCE, R.I. – Christopher Jeffrey Monroe, 29, of no permanent address, was sentenced on Wednesday to 24 months in federal prison for being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Newport Police Chief Gary T. Silva.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Monroe to serve 3 years supervised release upon completion of his prison term. Monroe pleaded guilty on September 25, 2015, to being a felon in possession of a firearm.
According to court documents and information presented to the court, on April 27, 2015, Newport Police Department officers developed information that Monroe, who was wanted on an active state arrest warrant, was staying in a room at a Newport motel. While officers were knocking on the door of the room they believed Monroe was occupying, they heard a window being opened. Officers observed Monroe leap from the window. Monroe was detained following a brief foot chase. The officers discovered a loaded semi-automatic handgun in Monroe’s pocket.
According to court records and information presented to the court, Monroe had previously been convicted of felony crimes, including assault.
The case was prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
ATF assisted Newport Police in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Concordia parish couple sentenced for stealing nearly $200,000 in Veterans Affairs benefitsRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that a former Concordia Parish couple were each sentenced to 12 months in prison for their roles in a scheme to steal Veterans Affairs benefits over a 10-year period.
Alfred Lewis Jr., 67, of Ferriday, La., and Rose M. Lewis, 64, of Natchez, Miss., were sentenced by U.S. District Judge Dee D. Drell. Alfred Lewis was sentenced on one count of theft of government property or funds, and Rose Lewis was sentenced on one count of conspiracy to commit theft of government property or funds. They were also sentenced to two years of supervised release and ordered to pay $197,784 restitution. According to evidence presented at the August 21, 2015 guilty plea, from July of 2003 until November of 2013, the defendants conspired to steal $197,784 in Veterans Affairs benefits. Alfred Lewis served in the U.S. Air Force and applied for veterans benefits in July of 2003. He and Rose Lewis did not disclose to Veterans Affairs that Rose Lewis had been working while living with Alfred Lewis during the 10-year period he received benefits. In written statements of their income sent to Veterans Affairs, they denied they were working when in fact Rose Lewis was earning more than $50,000 a year in Mississippi.
Veterans Affairs, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the case.
Columbus Man Convicted on Drug & Firearm ChargesRead the Press Release
Dyrell Leshaun Davis, age 32, of Columbus, Georgia was convicted, following a 3-day jury trial, on January 6, 2016, on one count of possession of a controlled substance and one count of possession of a firearm by a convicted felon. Chief U.S. District Court Judge Clay D. Land was the presiding judge.
Evidence presented at trial showed that on April 25, 2014, officers with the Special Operations Unit of the Columbus Police Department executed a search warrant at Mr. Davis’ residence based upon a controlled buy of marijuana that had been made from him at the residence during the previous week. The search revealed approximately 48 grams of packaged marijuana, found hidden inside a bedroom light fixture; a small digital hand held scale; and a loaded handgun found in the kitchen garbage can. The firearm had been reported stolen in July 2013.
Mr. Davis has two prior felony convictions for aggravated assault in Muscogee Superior Court, one in March 2003 and in March 2008.
“Guns and drugs are a deadly combination under any circumstances. When the person who possesses them has previously been twice convicted of violent felonies, it becomes even more so, making the prosecution of this type of case so important for safety in the community,” said Acting United States Attorney G. F. “Pete” Peterman, III.
Possession of a controlled substance carries a maximum sentence of five (5) years in prison. Possession of a firearm by a convicted felon is punishable by a maximum sentence of ten (10) years imprisonment, a fine of up to $250,000, or both. Mr. Davis will be sentenced in about 60 days following a presentence investigation. He remains in custody following this conviction.
The case was investigated by Columbus Police Department’s Lead Investigator S/A Robert Yates and S/A Will Panoke, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Mel Hyde is prosecuting the case on behalf of the Government.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office at 478-621-2603.
Cleveland man sentenced to nearly 10 years in prison for armed robbery in Cleveland HeightsRead the Press Release
A Cleveland man was sentenced to nearly 10 years in prison for robbing a Family Dollar store in Cleveland Heights, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.
Keyonte Oates, aka Keyontae Berry, aka “Pacco,” 23, was previously found guilty of one count of interference with commerce by means of robbery and one count of using and carrying a firearm during and In relation to a crime of violence. He was sentenced to 114 months in prison.
Oates and others attempted to rob the Family Dollar store on September 23, 2014. A firearm was brandished during the incident, according to court documents.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation, Cleveland Division, and the Cleveland Heights Police Department.
Clayton County Man Sentenced in Violent Multi-County Armed Robbery SpreeRead the Press Release
ATLANTA – Anthony Paul Smith has been sentenced 18 years, six months in federal prison for a series of violent armed robberies of six small businesses that he committed in Clayton County, and Henry County, Georgia.
“The hard working citizens of our community deserve to feel safe and secure at their workplaces,” said U.S. Attorney John A. Horn. “The defendant’s numerous acts of violence against multiple victims, including several who knew him, show a complete disregard for people’s lives. The sentence should reassure citizens of our District that we will find, prosecute, and ultimately remove from the community those who place others in danger through their own violent acts.”
“This investigation and sentence is another example of ATF remaining on the frontline of preventing violent crime through excellent cooperation with our law enforcement partners. Through this cooperative effort we were able to apprehend and successfully prosecute a violent and dangerous individual who posed a significant threat to the public,” said ATF Assistant Special Agent in Charge John Schmidt.
According to U.S. Attorney Horn, the charges and other information presented in court: Between December 10, 2013, and January 14, 2014, Smith committed the listed six armed commercial robberies and theft of a firearm from a federal firearms licensee:
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December 10, 2013 - Smith entered Papa John’s Pizza store located in Jonesboro, Georgia. He approached employee, L.C., and demanded money from her at gunpoint. During the robbery, Smith also grabbed employee B.M. around the neck, placed the barrel of the gun to her neck, and said “I want the money.” Smith threatened to shoot both B.M. and L.C., and fled the restaurant after stealing $1,500.
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January 5, 2014 - K.D., an employee of Boost Mobile located in Jonesboro, Georgia, reported to Clayton County Police officers that a man robbed her at gun point of $2,000 while she stood at the cash register. K.D. identified Smith as the armed robber, who she recognized as a former customer at the store. During the robbery, Smith took K.D.’s personal cell phone, ordered her to remove all the money from the cashier drawer, and demanded that she unplug the landline phone in the office and go to the back of the store.
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January 7, 2014 - Smith committed an armed robbery of a Metro PCS store in Stockbridge, Georgia. Just after the robbery, employee K.K. met with investigators and stated that Smith had entered the store several minutes before the robbery and inquired about an iPhone. K.K. identified Smith as the individual who robbed him at gun point of $6,785.
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January 8, 2014 - Smith entered Forest Park Army and Navy store located in Forest Park, Georgia, a federal firearms licensee, and stole a Ruger pistol. Surveillance video footage from the store captured images of Smith during the burglary.
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January 9, 2014 - Smith entered Big D’s Tobacco and Gifts located in McDonough, Georgia. He approached employee T.F. at the customer counter, pointed a silver handgun at her, and demanded money. Smith left the store after stealing more than $400 from T.F. T.F. recognized him as a recent customer.
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January 11, 2014 - Smith committed an armed robbery of Metro PCS located in Jonesboro, Georgia. He approached employee K.H., cocked and pointed a gun at her, and demanded money from the store’s register and safe. K.H. recognized Smith as a former high school classmate. Smith fled the store after stealing $3,767.
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January 14, 2014 - Smith entered another Metro PCS store in Jonesboro, Georgia. He approached employee A.G., pointed a silver revolver at her, and stole $939, as well as a Samsung Galaxy phone, Samsung Galaxy Tablet, and the store’s cordless phone.
Anthony Paul Smith, 24, of Jonesboro, Georgia, was sentenced on January 6, 2015, to 18 years, six months in federal prison, to be followed by five years of supervised release, and restitution of $16,000.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives as well as the Clayton County Police Department and Henry County Police Department.
Assistant United States Attorneys Richard S. Moultrie, Jr. and Suzette Smikle prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
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Clairton Man Pleads Guilty to Child Sex Trafficking ChargeRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of sex trafficking of a child, United States Attorney David J. Hickton announced today.
Robert Allen Middlebrook, 41, of Clairton, Pennsylvania, pleaded guilty to one count of Sex Trafficking of a Child before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, in February 2015, Middlebrook knowingly recruited, enticed, harbored, transported, provided and obtained a female minor, Minor A, to engage in commercial sex acts.
United States District Judge Schwab scheduled sentencing for May 9, 2016, at 9:30 a.m. The law provides for a maximum total sentence of life imprisonment, a fine of $250,000.00, and a term of supervised release for any term of years not less than 5, and up to life, or any or all.
Assistant United States Attorneys Jessica Lieber Smolar and Katherine A. King are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
California Man Arrested for Making False Statements in a Terrorism InvestigationRead the Press Release
A Sacramento, California, resident was arrested today on a federal charge of making a false statement involving international terrorism. Aws Mohammed Younis Al-Jayab, 23, is charged in a complaint that was unsealed today in the U.S. District Court of the Eastern District of California following his arrest. He will have his initial appearance tomorrow at 2:00 p.m. PST in Sacramento.
The arrest was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Benjamin B. Wagner of the Eastern District of California and Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Division.
“Aws Mohammed Younis Al-Jayab allegedly traveled overseas to fight alongside terrorist organizations and lied to U.S. authorities about his activities,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is protecting the nation from terrorism, and we will continue to hold accountable those who seek to join or aid the cause of terrorism, whether at home or abroad.”
“According to the allegations in the complaint, the defendant traveled to Syria to take up arms with terrorist organizations and concealed that conduct from immigration authorities,” said U.S. Attorney Wagner. “While he represented a potential safety threat, there is no indication that he planned any acts of terrorism in this country. I commend the FBI’s Joint Terrorism Task Force for their dedicated work on this matter.”
“In today’s complex terrorism environment, our Joint Terrorism Task Force plays an important role in combating the threat of terrorism. The collaboration is stronger than ever and essential to protect our communities from harm,” said Special Agent in Charge Miller. “The public plays an equal, if not more important, role in protecting the community. We encourage those who encounter individuals who express an intent to do harm or claim allegiance to a terrorist group – whether in person or online – to voice their concerns to law enforcement.”
According to the complaint, Al-Jayab is a Palestinian born in Iraq, who came to the United States as an Iraqi refugee in October 2012. Between October 2012 and November 2013, while living in Arizona and Wisconsin, he communicated over social media with numerous other individuals about his intent to return to Syria to fight for terrorist organizations. In those communications, according to the complaint, Al-Jayab discussed his previous experience with firearms and with fighting against the regime in Syria. On Nov. 9, 2013, he flew from Chicago to Turkey, and then traveled to Syria. Between November 2013 and January 2014, Al-Jayab allegedly reported on social media that he was in Syria fighting with various terrorist organizations, including Ansar al-Islam, a designated foreign terrorist organization since 2004. He returned to the United States on Jan. 23, 2014, and settled in Sacramento.
The complaint alleges that on Oct. 6, 2014, Al-Jayab was interviewed by U.S. Citizenship and Immigration Services and responded in the negative to numerous questions, including whether he had ever been a member of any rebel group or militia; whether he had ever provided material support for any person or group engaged in terrorist activity; and whether he had ever 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 complaint alleges that all of those answers were materially false.
If convicted, Al-Jayab faces a maximum statutory penalty of eight years in prison and a $250,000 fine. Any potential 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.
The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The ongoing investigation is being conducted by the FBI’s Joint Terrorism Task Force. 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.
Al-Jayab Complaint (Has Been Unsealed)