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21 December 2015
Former Bookkeeper Sentenced to a Year in Prison for Embezzlement and Signing a False Tax ReturnRead the Press Release
Oklahoma City, Oklahoma – BONNIE CHARLENE DORAN, of Newalla, Oklahoma, was sentenced today to a year and a day in prison for embezzlement and signing a false federal income tax return, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
From April 2012 until January 2015, Doran was employed as the bookkeeper for Cox Systems Technology, located in Oklahoma City. On August 26, 2015, she pled guilty to using interstate wire communications to defraud Cox Systems Technology. In particular, she directed BancFirst to wire extra payroll transfers to her personal account at Arvest Bank. She also made adjusting entries in company records to hide the extra payments. In a plea agreement, she agreed to pay restitution to the company in the amount of $120,197.04. At the August 2015 plea hearing, Doran also pled guilty to signing a false tax return. She admitted that in April 2014, she signed a personal federal tax return for the 2013 calendar year that she knew was false because it reported only $34,294 in total income, substantially less than the income she actually received.
At today’s sentencing, U.S. District Judge David L. Russell ordered that Doran be incarcerated for a year and a day. In addition to agreed restitution of $120,197.04 to Cox Systems Technology, the court ordered her to pay $26,115 in restitution to the IRS for the years 2012 through 2014. After completing her prison sentence, Doran will serve three years of supervised release.
This case was the result of an investigation by the Internal Revenue Service—Criminal Investigations and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Scott E. Williams.
Former Alvin Art Teacher Sentenced on Child Pornography ChargeRead the Press Release
HOUSTON – A former teacher who was employed with the Alvin School District has been ordered to federal prison following his conviction of receipt of child pornography, announced U.S. Attorney Kenneth Magidson. Scott Burns, of Alvin, 46, pleaded guilty May 18, 2015.
Today, U.S. District Judge Lynn N. Hughes sentenced Burns to 97 months incarceration followed by 12 years of supervised release. Burns will also be required to register as a sex offender.
The investigation arose after an abandoned briefcase was turned over to the Brazoria County Sheriff’s Office that was found to contain child pornography. Authorities believed it was part of an active investigation involving Burns and forwarded it to Homeland Security Investigations. Compact discs recovered from the abandoned briefcase contained 598 images and two videos of child pornography, along with personal and family photos.
Burns had previously been identified as a person of interest during an online undercover investigation in which he solicited nude and hardcore images of minors aged 12-17 via imgsrc.ru, a photo-sharing website.
A search warrant executed on his home in March 2014 led to the discovery of various electronic media which were found to contain 418 images and 15 videos of child pornography, including pictures of prepubescent minors, acts of sadism, masochism, bestiality and/or bondage. During an interview of Burns the following day, he claimed that used the Internet to locate child pornography, but that he did so in order to report it to website administrators.
Burns also possessed pictures of former students, which he had posted onto his Flickr account. Burns admitted that he kept in touch with former students for artistic purposes.
Burns will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges against Burns are the result of the investigative efforts of Homeland Security Investigations, Alvin Police Department and the Alvin Independent School District Police Department.
This case, prosecuted by Assistant U.S. Attorney Carrie Wirsing, 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 Allentown Finance Director Charged with Rigging City Contract AwardRead the Press Release
PHILADELPHIA – Garret Strathearn, 68, of Sea Girt, NJ, was charged today by information with conspiracy to commit mail and wire fraud, announced United States Attorney Zane David Memeger. Until earlier this year, Strathearn was the Finance Director for the City of Allentown, PA.
The information alleges the following:
Public Official #3 was a public official who represented the City of Allentown through an elective office which vested him with authority and influence over the awarding of certain municipal contracts. Aspiring to win election to a statewide elective office, Public Official #3 sought to raise campaign contributions from parties who had profited from their dealings with the City of Allentown and who sought favorable treatment from the City of Allentown. Public Official #3 also directed certain municipal officials to give preferential treatment to certain of his past and potential political donors. Strathearn and Assistant City Solicitor Dale Wiles were among the municipal officials over whom Public Official #3 had authority.
The City of Allentown outsourced its collection of delinquent real estate taxes and municipal claims (“the revenue collection”) to a law firm with experience in collecting taxes. For several years, the contract for the City’s revenue collection contract had been serviced by Law Firm #1, whose contract had been renewed annually without Law Firm #1 being required to compete with other firms in order to keep the contract. On or about November 11, 2013, the City published a request for proposals (RFP) inviting potential contractors to bid on servicing Allentown’s revenue collection contract for 2014. According to the RFP, the City would evaluate competing proposals based on their merits and select a winner based on which one would “be most advantageous to the City.” Relying on the representations in the RFP, several competitors submitted proposals for the revenue collection contract, including Law Firm #1, Law Firm #2, and a partnership between Law Firm #3 and a revenue collection company (“the Partnership”). The “revenue committee,” which was responsible for evaluating the proposals and submitting a recommendation to the City’s Purchasing Agent, consisted of Wiles and two municipal officials who reported to Strathearn.
Consistent with the representations in the RFP, the members of the revenue committee graded each of the proposals received using pre-established criteria and memorialized these scores on preprinted government forms (“the score sheets”). The original score sheets reflected that the committee members had given the highest aggregate scores to Law Firm #2 and Law Firm #1, and that none of the committee members had concluded that the Partnership’s proposal would be the most advantageous to the City. The committee members discussed the proposal and agreed that Law Firm #2’s proposal would be the most advantageous to the City.
Dissatisfied with the amount of campaign contributions that he had received from Law Firm #1 and its affiliates, Public Official #3 believed that certain principals and affiliates of the Partnership were more promising sources of campaign contributions. Public Official #3 instructed certain subordinates, known to the United States Attorney, that he wanted the Partnership to be awarded the 2014 revenue collection contract, that he did not want to be perceived as having influenced the contracting process, and that he would consider future renewals of the Partnership’s contract based on whether the Partnership and its affiliates had given sufficient campaign contributions for the benefit of Public Official #3. Specifically, on or about January 8, 2014, Public Official #3 explained to Strathearn that awarding the 2014 revenue collection contract to the Partnership was important to Public Official #3 and his political ambitions. Strathearn agreed that he would help Public Official #3 by giving preference to the Partnership in the contracting process.
To prevent the committee from recommending Law Firm #2’s proposal to the Purchasing Agent, Strathearn intervened in order to steer the contract to the Partnership so that the Partnership and its affiliates would then provide money, including campaign contributions, to Public Official #3 and his campaign operatives. Strathearn communicated to Wiles that the contracting process was being corruptly manipulated in order to steer the 2014 revenue collection contract to the Partnership, all with the approval of, and for the benefit of, Public Official #3. Strathearn also made clear that Wiles was expected to help create the false impression that the Partnership had won the contract on the merits. Public Official #3 had authority over both Strathearn and Wiles.
Streathearn, Wiles, and Public Official #3 each took steps to advance the conspiracy and ensure that the Partnership was awarded the contract, despite the substantive findings of the revenue committee. For example, Strathearn removed from the committee the municipal official whose score for the Partnership was the lowest of the committee members and replaced her by joining the committee. Strathearn and Wiles both falsified certain paperwork in order to create public records which gave the false impression that the Partnership had earned the revenue collection contract on the merits. After the City awarded the revenue collection contract to the Partnership, Strathearn, Wiles, and Public Official #3 each obstructed justice in order to help conceal the conspiracy. For example, in 2015, all three made statements to FBI agents which were materially false with respect to the revenue collection contract award process for 2014.
For his role in the conspiracy with Strathearn (who was then identified as “Public Official #4”), Wiles previously pleaded guilty before United States District Judge Juan R. Sanchez and is scheduled for a sentencing hearing on March 2, 2016.
This case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the Pennsylvania State Police. It is being prosecuted by Assistant United States Attorneys Joe Khan and Nancy Beam Winter.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Administrator at Los Angeles Law Firm Sentenced to 5 Years in Federal Prison for Embezzling from Her EmployerRead the Press Release
LOS ANGELES – A former administrator of a Los Angeles law firm was sentenced today to 60 months in federal prison for embezzling more than $3.3 million from her employer.
Esterlina Santos, 53, who resides in the Ladera Heights district of Los Angeles, was also ordered by United States District Judge Beverly Reid O’Connell to pay $3,322,161 in restitution to her former employer and $781,109 to the Internal Revenue Service.
Santos pleaded guilty in June to one count of mail fraud and one count of subscribing to a false tax return.
According to court documents, from 2004 to August 2010, Santos fraudulently obtained approximately $3,322,161 from the Law Offices of Robert Smylie and Associates (RSA). While serving as the firm administrator for RSA, Santos used QuickBooks software to generate checks from RSA’s operating account to pay for expenses for her personal credit accounts, including those associated with American Express, Bank of America and Capital One.
After Santos generated checks from RSA’s operating account and mailed them to pay her personal credit accounts, she used QuickBooks to alter the checks to falsely reflect that they were paid to RSA’s vendors for services purportedly provided.
When she pleaded guilty, Santos admitted that she received $2,448,794 of income she failed to report to the IRS during the 2007 through 2010 tax years.
Santos was ordered to begin serving her sentence on January 4.
The investigation into Santos was conducted by IRS Criminal Investigation and the Federal Bureau of Investigation.
Florida Man Indicted in Cocaine ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite, announced that ALEXANDER CASTRO, age 41, of Cape Coral, Florida, was indicted on Friday, December 18, 2015 by a federal grand jury for charges of conspiracy to distribute cocaine and other drug offenses.
According to the Indictment, in December 2015, CASTRO conspired to distribute and possess with intent to distribute five kilograms or more of cocaine. CASTRO is also charged with possession with intent to distribute five kilograms or more of cocaine. If convicted of the conspiracy charge, CASTRO will face a sentence of ten years to life imprisonment.
U.S. Attorney Polite reiterated that the indictment is merely an allegation and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the U.S. Homeland Security Investigations and the Louisiana State Police. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
Final Defendant in Bank Fraud Conspiracy Pleads GuiltyRead the Press Release
Baltimore, Maryland – Ronnie Mejia, age 26, of Bronx, New York, pleaded guilty today to a bank fraud conspiracy and to aggravated identity theft in connection to a credit card fraud scheme.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea, from February 2014, through October 2014, Mejia conspired with his co-defendants, Steven Harris, Marquis Johnson, Zachary O’Brien, Steven Tejeda and Jerry Anderson, as well as others, to use stolen credit card and other personal information of customers of victim financial institutions to purchase items, including Apple iPhones, at retail locations in Maryland and elsewhere.
For example, on April 10, 2014, the Baltimore County Police Department (BCPD) responded to a fraud in progress at an Apple Store in Towson, Maryland, where Johnson and Harris purchased iPhones with Visa Vanilla gift cards. Johnson and Harris were arrested and the Visa Vanilla gift cards they used to purchase the phones were recovered and determined to be re-encoded with stolen credit information.
On April 17, 2014, a search warrant was executed at Anderson’s home in Towson. Several items were recovered including: five Blackberry cell phones; two Apple iPhones; two apple iPads; an Apple computer; a shipping box and packaging for a credit card embossing machine; and miscellaneous gift cards. Anderson was at the residence at the time the search warrant was executed and a room keycard for a nearby hotel was recovered from his wallet. Later that day, a search warrant was executed at the hotel room. Tejeda and O’Brien were in the room when the search warrant was executed. The items recovered from the hotel room included: 30 counterfeit credit cards (re-encoded with stolen credit information); three Apple iPhone 5s; 43 blank counterfeit credit cards; eight pre-paid gift cards (unopened/in packaging); a credit card embossing machine; an Acer laptop computer; a credit card encoder; and over 50 credit cards embossed with the names of either Anderson, Tejeda or O’Brien.
Forensic examinations of the computers and other digital media seized during the searches recovered emails containing personal identifying information (PII) of victims, including name, date of birth, and social security number; compromised bank credit card numbers and corresponding customers’ names; and a document containing over 25 credit card numbers and other PII. Further examination of records recovered during forensic examinations revealed that at least two of the credit card numbers were purchased from a known “carding site” where perpetrators of identity theft and related crimes can purchase stolen credit card numbers and other PII. A forensic examination of Tejeda’s phone recovered during the search of the hotel room, revealed texts between Mejia and Tejeda that contained exchanges of stolen personal information of victims and instructions for fraudulent transactions and purchases.
On April 10, 2015, at the direction of the United States Secret Service (Secret Service), a cooperating witness made three consensually monitored phone calls to Mejia. Mejia wanted the cooperating witness to use stolen PII to fraudulently purchase Apple iPhones and asked for an email account so Mejia could send the cooperating witness the stolen PII. The cooperating witness provided Mejia with an email address and password, which had been set up by Secret Service. On April 13, 2015, a Secret Service agent observed that PII, including PII belonging to 16 known victims, had been put in the “drafts” folder of the provided email account. On May 19, 2015, during recorded calls between Mejia and the cooperating witness, Mejia agreed to buy the fraudulently purchased iPhones from the cooperating witness, and asked the cooperating witness to provide him with a credit card in order to pay the first phone bills from the phones. Historical cell site records show that Mejia was in New York during these phone calls.
The total actual loss caused by the conspiracy to the more than 2450 victims was $419,807.14 and the potential loss caused by the conspiracy to the victims was $1,830,030.
Mejia faces a maximum sentence of 30 years in prison for bank fraud and a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft. Steven Harris, age 23, of Bronx, New York; Marquis Johnson, age 21, of Severna Park, Maryland; Zachary O’Brien, age 31, of Bronx, New York; and Jerry Anderson, age 29, of Towson, have also pleaded guilty to their roles in the scheme. All are awaiting sentencing.
Steven Tejeda, age 23, of Richmond, Virginia, pleaded guilty and was sentenced to four years in prison.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Ayn B. Ducao and Zachary A. Myers, who are prosecuting the case.
Federal Indictment Charges Eight with Participating in Taos County Heroin Trafficking and Money Laundering RingRead the Press Release
ALBUQUERQUE – Last week, a federal grand jury indicted eight individuals on heroin trafficking and money laundering charges based on a DEA-led investigation into an organization that allegedly distributed heroin in Taos County, N.M., announced U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division.
Five of the eight defendants were arrested on Dec. 18, 2015, and made their initial appearances in federal court in Albuquerque, N.M., this morning. Four remain in custody pending arraignment and detention hearings scheduled for tomorrow. The fifth was released on conditions of release and under pretrial supervision pending trial. Of the three remaining defendants, one is in state custody on unrelated charges, another has been summoned to appear in federal court on Dec. 23, 2015, and the last has yet to be arrested and is considered a fugitive.
The eight-count indictment is the result of a 15-month investigation targeting a drug trafficking organization allegedly led by Ivan Romero, 39, of El Prado, N.M., that allegedly distributed heroin in Taos County. The indictment alleges that Ivan Romero and six co-conspirators, including three members of Romero’s family, participated in a heroin and methamphetamine trafficking conspiracy that existed from at least June 2012 and continued until Dec. 2015. It also alleges that Ivan Romero and three members of his family participated in a money laundering conspiracy to conceal and disguise the nature of their drug trafficking proceeds. The indictment includes forfeiture provisions that seek to forfeit to the United States any and all property derived, either directly or indirectly, from proceeds obtained from the criminal activity charged in the indictment.
During the course of the investigation, law enforcement officers seized more than $378,000, more than 500 grams of heroin and seven kilograms of marijuana. Additionally, during the arrest operation on Dec. 18, 2015, officers seized more than $70,000, several ounces of heroin, and three firearms and ammunition.
The investigation leading to the indictment was conducted by the Albuquerque office of the DEA, the HIDTA Region III Drug Task Force, New Mexico State Police, Taos Police Department, Taos County Sheriff’s Office and the Bureau of Alcohol Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Timothy S. Vasquez is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Indictment in United States v. Ivan Romero, et al., 15-CR-4512
Summary of the Charges
Count 1 of the Indictment charges seven defendants with participating in a heroin and methamphetamine trafficking conspiracy in Taos County and elsewhere in the District of New Mexico from at least June 2012 through Dec. 2015. The statutory penalty for a conviction on this count is imprisonment for not less than ten years or more than life.
Count 2 charges four defendants with participating in a money laundering conspiracy in Taos County from April 2015 through July 2015. The maximum statutory penalty for a conviction on this count is imprisonment for 20 years.
Counts 3, 4 and 7 charge certain defendants with distributing heroin in Taos County on July 7, 2014, April 2015 and June 2015. The maximum statutory penalty for a conviction on each of these counts is imprisonment for 20 years.
Count 5 charges Ivan Romero with distributing heroin in Taos Count in April 2015. The maximum penalty for a conviction on this count is imprisonment for not less than five years or more than 40 years.
Count 6 charges Ivan Romero with distributing marijuana in Taos County in April 2015. The statutory maximum penalty for a conviction on this count is imprisonment for five years.
Count 8 charges Wilma Romero with being a felon in possession of a firearm and ammunition in Taos County on June 29, 2015. On that day, Wilma Romero was prohibited from possessing firearms or ammunition because she previously had been convicted of a drug trafficking crime and unlawful possession of a firearm. The statutory maximum penalty for a conviction on this count is imprisonment for ten years.
Defendants Charged in Indictment
Ivan Romero, 39, a resident of El Prado, N.M., is charged in Counts 1, 2, 5 and 6. Ivan Romero has been arrested.
Ricco Romero, 28, of El Prado, N.M., is charged in Counts 1 and 2. Ricco Romero, the brother of Ivan Romero, has been arrested.
Wilma Romero, 65, of Arroyo Hondo, N.M., is charged in Counts 1, 2, 7 and 8. Wilma Romero, the mother of Ivan and Ricco Romero, has been arrested.
Nicholas Baca, 29, of El Prado, N.M., is charged in Counts 1 and 4. Nicholas Baca is in state custody on other charges and will be transferred to federal custody to face the charges in the indictment.
Tyler Baker, 44, of Carson, N.M., is charged in Counts 1 and 3. Tyler Baker has been arrested.
Juanita Romero, 34, of Penasco, N.M., is charged in Count 1. Juanita Romero has been yet to be arrested and is considered a fugitive.
Jason Duran, 41, of Albuquerque, N.M., is charged in Count 1. Jason Duran has been arrested.
Melissa Romero, 28, of El Prado, N.M., is charged in Count 2. Melissa Romero, is married to Ivan Romero, has been arrested. Melissa Romero was released on conditions of release under pretrial supervision.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
Romero Indictment
FBI New York Art Crime Team Has Record Number of Art and Cultural Items Returned in Second Half of 2015, Seeks Public Assistance Locating Other Stolen ItemsRead the Press Release
A Chilean tapestry, the Bark Washington painting, and the Ames Stradivarius violin were returned to their rightful owners following the investigative work and partnerships of the FBI’s New York Art Crime Team. The team is composed of Special Agents Meridith Savona and Christopher McKeogh, whose primary investigative work includes recovering art and cultural property and bringing those responsible for the theft, fraud, looting and trafficking to justice.
The Chilean tapestry known as The Ambassadors of Rome Offering the Throne to Numa Pompilio was returned in September 2015 to the owner’s attorney. The tapestry had been stolen from the owner’s residence in Santiago, Chile, in November 2006, and the theft was reported to INTERPOL Washington. The tapestry was recovered when it was placed for auction in New York in 2014. INTERPOL Washington requested the assistance of the FBI’s New York Art Crime Team on behalf of the Santiago Police to take custody of the tapestry. The case remains open with the Santiago Police. There were no charges filed against the parties attempting to auction the tapestry.
The Bark Washington painting was returned to the Oysterponds Historical Society in Orient, New York, by the FBI’s New York Art Crime Team in September. The painting, along with the Jennie French Potter painting and two whale busks, were stolen in March 2001. The return of the Bark Washington painting was made possible by an individual who bought the painting at an antique shop in East Marion, New York in 2001 for a few hundred dollars. The individual researched the painting on the FBI’s Stolen Art Database and discovered it was stolen. He then contacted the FBI, generously agreeing to return it to the rightful owner. The thief was never, and the case remains open.
A 1734 Stradivarius violin, the Ames Stradivarius, was returned in August to the heirs of deceased violinist Roman Totenberg. The violin was stolen from Mr. Totenberg in 1980, along with two antique bows, following a concert in the Longy School of Music in Cambridge, Massachusetts. It was recovered by the FBI’s New York Art Crime Team in June 2015. The bows are still missing, and the FBI case remains open.
The FBI reminds the public to come forward with any information they may have about the missing items. Tips may be submitted to the FBI’s Art Crime Team at (212) 384-1000 or on our webpage (https://tips.fbi.gov/). Tipsters may remain anonymous. Art and cultural item buyers are recommended to review the FBI’s Stolen Art Database prior to a purchase to avoid civil forfeiture of stolen items.
East St. Louis Woman Sentenced for Distribution of Crack and Felon in Possession ChargesRead the Press Release
An East St. Louis woman, convicted of Distribution of Cocaine Base (Crack), Possession with Intent to Distribute Cocaine Base (Crack), and Felon in Possession of a Firearm, was sentenced to federal prison today, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced. Georgia Phillips, 40, of East St. Louis, Illinois, received a 46 month sentence for her offenses Phillips had previously pled guilty. Following release from imprisonment, Phillips will serve a 3 year term of supervised release. Phillips was also ordered to pay a $900 fine and a $300 special assessment.
Agencies participating in this case include the Drug Enforcement Administration and the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Donald S. Boyce.
East Bay Real Estate Agent Charged with Multimillion Dollar Property Scheme Related to Fraudulent LawsuitsRead the Press Release
SAN FRANCISCO – An indictment returned by a federal grand jury in San Francisco was unsealed today, charging Robert Jacobsen with wire fraud and with engaging in financial transactions involving criminally derived proceeds, announced Acting United States Attorney Brian J. Stretch, Federal Bureau of Investigation Special Agent in Charge David J. Johnson, Acting Special Agent in Charge Andrew Toth of the Internal Revenue Service-Criminal Investigation, and the Special Inspector General for the Troubled Asset Relief Program, Christy Goldsmith Romero.
According to the indictment, Jacobsen, 67, formerly of Lafayette, Calif., is alleged to have devised a scheme to defraud homeowners and mortgage holders. To accomplish this scheme, Jacobsen created a company called “American Brokers’ Conduit Corporation.” This company was not related to a mortgage originator known as “American Brokers’ Conduit,” which had originated mortgages in the Bay Area and elsewhere. Jacobsen, through intermediaries, gained control of homes with mortgage liens that secured loans originated by the real “American Brokers’ Conduit,” and then, again through intermediaries, sued the phony “American Brokers’ Conduit Corporation” in court, claiming that the legitimate mortgage liens were invalid. As he controlled both the plaintiff and the defendant in these lawsuits, he instructed the attorneys for both sides to enter into stipulated judgments, signed by the courts, resolving the lawsuits by purporting to declare the mortgage liens invalid. In so doing, he omitted to tell the courts that neither he nor any other person involved in the lawsuits was a legitimate representative of either the real “American Brokers’ Conduit” or the then-current owners of the liens. Jacobsen filed those agreements with the relevant county recorder’s offices, to give the appearance to anyone conducting a title search that the liens had been declared invalid by a court, and then sold the homes to unsuspecting buyers without paying off the original loans on the homes. Jacobsen kept the vast majority of the proceeds of these sales to himself, laundering the money through multiple bank accounts in the United States and in Belize, and buying property and a yacht with the money.
Jacobsen successfully completed his scheme by selling two homes, one in Danville, Calif., and the other in San Francisco, for a total of over $1.6 million. He attempted the scheme on another home, in Monterey, Calif., which was last sold approximately 15 years ago for $2.5 million.
Defendant was indicted on November 5, 2015, and surrendered to federal agents today at the federal building at 450 Golden Gate Avenue in San Francisco. He made his initial appearance before the Honorable Nador J. Vadas, United States Magistrate Judge, and was released on a $200,000 bond. Defendant’s next scheduled appearance is at 9:30 a.m. on December 28, 2015, before Judge Vadas, for a bail review hearing, and then before the Honorable Richard Seeborg, United States District Judge, at 2:30 p.m. on January 12, 2016, for his initial appearance before the district court.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years of imprisonment, and a fine of $250,000 or twice the gross gain or loss, plus restitution, for each count of wire fraud in violation of 18 U.S.C. § 1343. If convicted, the defendant faces a maximum sentence of 10 years of imprisonment, and a fine of $250,000 or twice value of the property involved in the financial transaction, for each count of engaging in monetary transactions involving the criminally derived proceeds, in violation of 18 U.S.C. § 1957. 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.
Benjamin Kingsley is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Lillian ArauzHaase and Jessica Meegan. The prosecution is the result of a two-year investigation by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations, and the Office of the Special Inspector General for the Troubled Asset Relief Program.
Des Moines Man Sentenced to 188 Months in Prison for Robbing Two Local BanksRead the Press Release
Des Moines, IA – On December 21, 2015, Laymon Clovesee English, 49, of Des Moines, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 188 months in prison for two counts of bank robbery, announced Acting United States Attorney Kevin E. VanderSchel. English will be required to serve three years of supervised release following his term of imprisonment.
English, at his change of plea hearing on August 28, 2015, admitted he robbed Bankers Trust, 150 East Euclid Avenue, Des Moines, Iowa, on December 31, 2014. English also admitted he robbed U.S. Bank, 2500 East Euclid Avenue, Des Moines, Iowa, two days later, on January 2, 2014. English was apprehended by U.S. Bank customers when he committed the second robbery.
This matter was investigated by the Des Moines Police Department, the Polk County Sheriff’s Office, and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Department of Justice Announces Leaders of U.S. Marshals Service and Bureau of Alcohol, Tobacco, Firearms and Explosives Will Continue Serving for Duration of AdministrationRead the Press Release
The Department of Justice today announced that both Acting Director David Harlow of the U.S. Marshals Service (USMS) and Deputy Director Thomas E. Brandon of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) will continue to serve as the heads of their respective agencies for the duration of this administration.
“Over the course of their decades in law enforcement, David Harlow and Thomas Brandon have demonstrated themselves to be outstanding public servants and extraordinary partners in the work of building a stronger, safer nation,” said Attorney General Loretta E. Lynch. “As head of the U.S. Marshals Service, David Harlow has led on a range of important issues, from helping to expand the ability of USMS to assist in cases involving missing children, to promoting an understanding of implicit bias, to apprehending violent fugitives. As the leader of ATF, Thomas Brandon has forged broad-based partnerships, advanced intelligence-driven policing and helped shape ATF’s impact as a guardian of public safety. In all of their efforts, they have worked to fulfill America’s highest priorities and most deeply-held values. I am pleased that the American people will continue to receive the benefit of their professionalism, integrity and devotion to duty.”
Harlow became Acting Director of the U.S. Marshals on July 26, 2015. Pursuant to the Vacancies Reform Act, the title of acting director will expire on Feb. 20, 2016, at which time Harlow will continue leading the Marshals as Deputy Director for the duration of this administration.
Brandon became Acting Director of ATF on April 1, 2015. Pursuant to the Vacancies Reform Act, his title of acting director expired on Oct. 27, 2015, and he will continue leading ATF in his role as Deputy Director for the duration of this administration.
Biography of Acting Director David Harlow
David Harlow became the Acting Director of the U.S. Marshals on July 26, 2015, following more than 30 years of dedicated service in the agency. He leads the nation’s oldest and most versatile federal law enforcement agency, responsible for federal judicial security, fugitive apprehension, witness security, asset forfeiture and prisoner operations.
Acting Director Harlow was named the agency’s Deputy Director in February 2014. Since that time, he has focused on ensuring accountability and excellence, and bringing about successful organizational change.
From 2012 to 2014, Acting Director Harlow was the Associate Director for Operations, managing the USMS Operational Directorate, which includes Investigative Operations, Judicial Security, Witness Security, Tactical Operations, Prisoner Operations and the Justice Prisoner and Alien Transportation System.
In May 2012, Acting Director Harlow was promoted to the Senior Executive Service when he was selected as the Assistant Director of the Investigative Operations Division (IOD), overseeing the agency’s extensive fugitive investigations mission. Prior to assuming the position, he was the Acting Deputy Assistant Director of IOD for approximately one year.
Acting Director Harlow served as Chief of the Sex Offender Investigations Branch from 2008 to 2011, overseeing the development and deployment of the agency’s newest investigative program, the Sex Offender Apprehension Program. He also oversaw the interagency National Sex Offender Targeting Center and developed the USMS Behavioral Analysis Unit to assist with prioritizing and targeting non-compliant and fugitive sex offenders.
Before arriving at USMS Headquarters, Acting Director Harlow was the Chief Deputy U.S. Marshal (CDUSM) for the Eastern District of Virginia from 2007 to 2008. Prior to that, he was CDUSM for the Northern District of Ohio, where he served from the time he joined the USMS as a Deputy U.S. Marshal in 1983 until 2007. He made numerous contributions to Northern Ohio over the years, including serving as Commander of Operation FALCON 2007, serving as Deputy Commander of Operation FALCON III, developing the first cooperative fugitive apprehension team consisting of multiple law enforcement agencies in the Toledo area and overseeing the development of the Northern Ohio Violent Fugitive Task Force.
Throughout his career, Acting Director Harlow has received numerous awards, including Attorney General’s Awards, Director’s Awards and several other special act and performance awards. He is also an active member of the Federal Law Enforcement Officers Association.
Acting Director Harlow holds a bachelor’s degree in Law Enforcement Administration from Western Illinois University. He and his wife, Lisa, have two sons, Sean and Brian.
Biography of Deputy Director Thomas E. Brandon
Thomas E. Brandon serves as the Deputy Director and head of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). He was appointed ATF's Deputy Director in October 2011. On April 1, 2015, he was named Acting Director of the agency, and served in that position until October 27th, 2015, when pursuant to the Vacancies Act the title expired. As Deputy Director and head of ATF, Mr. Brandon is responsible for the unique law enforcement agency within the U.S. Department of Justice charged with enforcing firearms and explosives laws and regulations that protect communities from violent criminals and criminal organizations.
At the time of his appointment as Deputy Director in 2011, Mr. Brandon was serving as the Special Agent in Charge of the Phoenix Field Division, directing field operations for ATF in Arizona and New Mexico.
A member of the Senior Executive Service and a seasoned law enforcement professional, Mr. Brandon began his ATF career as a Special Agent in 1989, with Detroit as his first office assignment. Rising through the ranks at ATF, he has served in many management positions including Special Agent in Charge of the Phoenix Field Division and Special Agent in Charge of the Detroit Field Division; Supervisory Special Agent of the Detroit Arson and Explosives Enforcement Group; Special Agent with the Office of Inspection in Washington, D.C.; Supervisory Special Agent of the Achilles Enforcement Group in Los Angeles, California; and as the Division Intelligence Officer with the Phoenix, Arizona, Field Division. Mr. Brandon also held the position of Chief, ATF National Academy, in Glynco, Georgia.
Mr. Brandon is a member of several professional organizations including the International Association of Chiefs of Police (IACP). He earned his Bachelor of Science degree in Business Administration from Oakland University in Rochester, Michigan, in 1987.
Mr. Brandon proudly served in the United States Marine Corps from 1978 to 1982, where his assignments included Embassy duty in Rome, Italy, and Dhahran, Saudi Arabia. Mr. Brandon is a native of New Jersey.
Corpus Christi Woman Charged with Kidnapping ChildrenRead the Press Release
CORPUS CHRISTI, Texas – A 32-year-old woman has been arrested on charges that she kidnapped two minor children from their foster home, announced U.S. Attorney Kenneth Magidson. Jada Gregg Warren, of Corpus Christi, is the biological mother of the children but had lost her parental rights in November 2014.
Warren was arrested in Torreon, Coahuila, Mexico, Dec. 16, 2015, and made an initial appearance in Eagle Pass, Texas, today. She is expected to be transferred to Corpus Christi federal court in the near future. At that time, she will face the kidnapping charges as well as a possible revocation of supervised release that she was serving for a drug trafficking conviction from 2014.
At the time of the arrest, the children were with her. They have been returned to the custody of Child Protective Services (CPS).
The criminal complaint alleges that Warren had taken the children from their foster home on Aug. 19-20, 2015. She had allegedly made statements about committing the crime just two days prior.
The children were discovered missing on the morning of Aug. 20, 2015. Several items of clothing had allegedly also been taken. The complaint further alleges that a car she co-owned had a tracking device which indicated it was in Corpus Christi on Aug. 18, but in Mexico two days later. Her Facebook page also indicted she was in Mexico on that date. At the time of the alleged kidnapping, Warren was serving a 36-month-term of supervised release following a federal drug tracking conviction.
On Nov. 6, 2014, a judge in Bexar County had terminated Warren's parental rights and placed the children in the custody of CPS.
The charges are the result of an investigation conducted by the FBI, U.S. Marshals Service and the Corpus Christi Police Department. Assistant U.S. Attorney Chad W. Cowan is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Convicted Sex Offender Sentenced to 30 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Michael Brendan O’Connor, 36, of Dallas, was sentenced Friday, by U.S. District Judge Sidney A. Fitzwater, to 30 years in federal prison, following his guilty plea to one count of transporting and shipping child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
O’Connor has been in custody since his arrest in May 2014.
According to documents filed in the case, the investigation began in May 2014 when an officer with the Nebraska State Patrol, working online in an undercover capacity and posing as a 31-year-old female whose interests included incest and molesting her young children, was contacted by an individual, later identified as O’Connor, who expressed similar interests. O’Connor, in very sexually explicit communications, indicated, among other things, that he was “attracted to girls 3 to 10 and 8 is the magic age for me physically.” In a later communication, O’Connor detailed an incident where he molested a young child while he was on break at a restaurant where he worked. On May 13, 2014, O’Connor sent the undercover officer a zip file containing several images of child pornography.
On May 29, 2014, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at O’Connor’s residence. More than 950 images of child pornography, some depicting infants and toddlers, were located on O’Connor’s homebuilt computer. He admitted downloading, possessing and transporting images of child pornography.
O’Connor was convicted of sexual assault of a child in Collin County in 2010 and possession of child pornography in Dallas County in 2009.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
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Convicted Felon from Albuquerque Pleads Guilty to Unlawful Possession of FirearmRead the Press Release
ALBUQUERQUE – Charles Hodge, 42, of Albuquerque, N.M., pleaded guilty today in federal court to being a felon in possession of a firearm. Hodge entered his guilty plea without the benefit of a plea agreement.
Hodge was arrested in Nov. 2015, on a criminal complaint charging him with unlawfully possessing a firearm and ammunition on Oct. 28, 2015, in Bernalillo County, N.M. According to the complaint, law enforcement officers conducted a traffic stop on Hodge’s vehicle because his vehicle had an expired registration tag. During the stop, the officers learned that Hodge did not have a valid driver’s license or insurance, and advised Hodge that they would have to impound the vehicle. In response to questions regarding whether his vehicle contained any contraband, Hodge told the officers that he had a firearm and ammunition in the vehicle. Thereafter, the officers retrieved a loaded pistol from the center console of the vehicle.
Hodge was subsequently indicted for unlawful possession of a firearm and ammunition on Dec. 2, 2015. Hodge was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses, including second degree murder, being a felon in possession of a firearm, receiving or transferring a stolen motor vehicle, auto burglary and possession of cocaine.
During today’s proceedings, Hodge pled guilty to the indictment. At sentencing Hodge faces a statutory maximum penalty of ten years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorney George C. Kraehe is prosecuting the case.
The case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on prior convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Cahokia Man Sentenced for Having Stolen FirearmsRead the Press Release
Michael J. Khoury, 43, of Cahokia, Illinois, was sentenced today in the United States District Court to 188 months in federal prison, to be followed by 5 years of supervised release for possession of a firearm by a felon.
Khoury pled guilty to the charge on May 12, 2015. Evidence showed that Khoury and another individual broke into Rural King, located at 2801 North Illinois in Swansea, Illinois, and stole over fifteen firearms. Khoury later sold one of the stolen firearms to a confidential informant, who provided that weapon to law enforcement. The serial number of that firearm matched the serial number of one of the firearms taken in the burglary. Khoury is a convicted felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Swansea Police Department. The case is assigned to Assistant United States Attorney Laura Reppert.
Brooklyn Man Sentenced for Role in Stolen Identity Refund Fraud SchemeRead the Press Release
Erie, Pa. -A former resident of Brooklyn, New York, has been sentenced in federal court to 10 months in jail and ordered to make restitution in the amount of $89,007.42 on his conviction of conspiracy to commit wire fraud, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on William Sarfo, 42.
According to information presented to the court, Sarfo allowed bank accounts in his name and under his control to be used as repositories for fraudulently obtained federal tax refunds. Sarfo would then withdraw the fraudulently obtained refunds, keep a portion for himself and give the remainder of the money to another co-defendant.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Sarfo.
Bradenton Man Sentenced to 27 Years for Child Pornography OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Kevin Brien Darr (50, Bradenton) to 27 years in federal prison for transporting and receiving child pornography. The Court also ordered him to forfeit two cellphones he had used during the offenses. Darr pleaded guilty on September 16, 2015.
According to court documents, in May 2015, an undercover law enforcement officer observed multiple child pornography files that Darr had been posted to an Internet messaging application. On June 25, 2015, a search warrant was executed at Darr’s residence and agents seized his cellphones. Forensic analyses of the phones revealed more than 500 videos and 4,000 images of child pornography, including multiple files depicting prepubescent minors and sadomasochistic conduct. During the sentencing hearing, Darr admitted to previously abusing a minor female over a period of several years.
"This predator possessed thousands of images of the most egregious crimes against our children. Every time these horrific images or videos are viewed, it amplifies the pain inflicted on these young victims," said Susan L. McCormick, special agent in charge of HSI Tampa. "This strong sentence emphasizes how committed we are to protecting our children and bringing these criminals to justice.”
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Jennifer Peresie and Rachel Jones.
It is another case 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.justice.gov/psc.
Baltimore Man Exiled to 8 Years in Prison on Gun ChargeRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Richard Barksdale, age 45, of Baltimore, today to eight years in prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition. Barksdale was convicted by a federal jury on August 25, 2015, and has been detained since his arrest.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Marilyn Mosby; and Baltimore Police Commissioner Kevin Davis.
According to evidence presented during the two day trial, in the evening of September 11, 2014, security officers from Johns Hopkins Hospital saw a man firing a gun at other men on the 800 block of N. Washington Street near the hospital. The shooter was described as wearing a blue or gray sweatshirt and gray shorts, and was heading west on foot on E. Madison Street. Johns Hopkins personnel provided Baltimore Police with a street-by-street description of the suspected shooter’s movements as they followed Barksdale in a vehicle to the 900 block of N. Bond Street.
Baltimore Police officers encountered Barksdale on Bond Street. He was wearing a blue or gray sweatshirt and gray shorts. The officers identified themselves as police, patted Barksdale down, found a loaded handgun in his waistband and arrested him.
Baltimore Police recovered expelled ammunition shell casings from the scene of the shooting on N. Washington Street. Further investigation revealed that the shells were expelled from Barksdale’s handgun. A bullet projectile also found on the street was determined to have been fired from the same handgun taken from Barksdale.
Barksdale had previously been convicted of a felony and was thus prohibited from possessing a gun and ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked Johns Hopkins Hospital security personnel for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Michael C. Hanlon and Patricia C. McLane, who prosecuted the case.
Baltimore Drug Trafficker Sentenced to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III, sentenced Raymond Comegys, age 31, of Baltimore, today to 12 years in prison, followed by five years of supervised release, for conspiring to distribute and possess with intent to distribute crack cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, from December 2013 through May 2014, Comegys, Stephon Lowery and other co-defendants operated a street-level drug shop in the southwest area of Baltimore City that sold crack cocaine daily to customers. Multiple times a day, they ordered crack cocaine from suppliers, ranging in quantities up to 28 grams, which they then sold in user-quantity amounts to street level users.
On April 4, 2014, law enforcement executed a search warrant at Comegys’ residence in Baltimore. Inside the residence, law enforcement recovered 16 vials containing crack cocaine, a sandwich bag containing approximately 6.88 grams of cocaine, drug packaging material, Mannitol (a commonly used cutting agent), a digital scale, 17.7 grams of marijuana, and two loaded .32 caliber handguns.
Comegys admitted that he and his conspirators distributed more than 112 grams of crack cocaine.
Nine defendants, including Comegys, have been convicted for their participation in the conspiracy. Stephon Lowery, age 30, of Baltimore, was sentenced to 10 years in prison and four other co-defendants have received sentences of between 36 and 78 months. The remaining three defendants are awaiting sentencing
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Seema Mittal and Leo J. Wise, who prosecuted the case.
Augusta Man Sentenced to 30 Years for Producing Child PornographyRead the Press Release
AUGUSTA, GA – Randy Houston Mercer, 57, of Augusta, Georgia was sentenced on Friday by United States District Court Judge J. Randal Hall to 30 years in prison, followed by 25 years of supervised release, for his role in producing child pornography. Mercer pled guilty to one count of Sexual Exploitation of a Minor, in violation of 18 U.S.C. § 2251(a), in August. He will be required to register as a sex offender.
According to the evidence presented at Mercer’s plea and sentencing hearings, in January 2015, Columbia County Sheriff’s Office (CCSO) received a complaint from a minor’s mother which ultimately led to Mercer’s arrest. The evidence revealed that Mercer used the social networking app “Grindr” to meet minor boys, who he later met with to have sex. When first interviewed, Mercer admitted to exchanging nude and sexually explicit photos with at least one 15-year-old minor, and to engaging in sexual acts with him on multiple occasions. Numerous text messages revealed that Mercer engaged in sex acts with at least two minors on several occasions. During those sexual encounters, photographs and videos were created, which Mercer later sent to others.
When imposing the lengthy prison sentence, Judge Hall noted the seriousness of the offense and the very disturbing nature of the evidence, which included Mercer’s boastful manner when sharing the child pornography images over the Internet. At the conclusion of the hearing, Mercer was returned to the custody of the United States Marshal Service to serve his sentence.
United States Attorney Edward J. Tarver stated, “It is beyond shocking that an adult would prey on boys in order to arrange to have sex with them and to create images of that activity. It is impossible to know how many other children may have been at risk if Mercer had not been identified and stopped. Mercer’s serious crime was met with a justifiably lengthy punishment. There is no higher priority than the protection of our nation’s children. This United States Attorney’s Office will continue its efforts to prosecute those who endanger the safety of our children.”
This case was investigated by CCSO Investigator Brian Jones and the FBI’s CCCX Task Force, made up of Augusta-area FBI agents, the Georgia Bureau of Investigation, Richmond County Sheriff’s Office, and the Columbia County Sheriff’s Office. The case was brought as part of Project Safe Childhood, a U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. 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 identify and rescue victims.
Assistant United States Attorney C. Troy Clark prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Alleged Killer Extradited to Michoacán, MexicoRead the Press Release
FRESNO, Calif. — On Tuesday, December 15, 2015, Jesús Flores Buenrostro, 36, of California, was ordered to be extradited to Mexico where he is wanted to stand trial for the alleged 2007 killing of a man in Sahuayo de Morales, Michoacán, United States Attorney Benjamin B. Wagner announced.
According to the extradition request submitted by Mexico, Jesús Flores Buenrostro is charged with homicide after allegedly shooting a man on April 30, 2007. According to witness statements, Jesús Flores Buenrostro and some companions went to a square in the town where a fight had broken out earlier in the evening. When they arrived at the square, Jesús Flores Buenrostro and his companions encountered a group of men. Jesús Flores Buenrostro loaded a firearm and fired two shots at the group of men. The victim was struck twice by the shots and died of his wounds. Jesús Flores Buenrostro, an American citizen, fled to the United States.
The United States Marshals Service arrested Jesús Flores Buenrostro in Kern County in July 2015. On December 15, 2015, following federal court proceedings in Fresno, the court certified his extraditability to Mexico.
“Just as we ask Mexico’s cooperation in extraditing those who violate our laws, that country seeks ours in extraditing those who violate their laws,” said United States Attorney Wagner. “We have a mutual interest in ensuring that neither country is a safe haven for those fleeing justice in the other.”
This case was handled by Assistant U.S. Attorney Daniel Griffin of the Eastern District of California, the Office of International Affairs in the Justice Department’s Criminal Division, and the U.S. Marshals Service.
20 December 2015
Oakdale Man Indicted on Fraud ChargesRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of mail and wire fraud, United States Attorney David J. Hickton announced today.
The five-count indictment named Thomas Slack, 66, of Oakdale, Pa., as the sole defendant.
According to the indictment presented to the court, Slack engaged in a scheme to fraudulently obtain money from prospective home builders seeking financing through loan programs administered through the United States Department of Agriculture ("USDA") Rural Development offices. Slack was a member and director of the Great Falls Development Group, a company which falsely purported to be an established residential real estate developer and builder. Slack falsely represented to prospective home builders and investors that he was associated with the USDA's Rural Development loan programs and that he could underwrite and pre-qualify applicants for the loan programs. Slack's false representations induced prospective home builders and investors to send money to him, believing that he was actively engaged in building homes and securing financing for the homes through the USDA, when, in fact, he was not.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The United States Department of Agriculture Office of the Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
18 December 2015
“Santa Claus” Charged with Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old Corpus Christi man who worked as a Santa Claus impersonator has been charged in a criminal complaint alleging he distributed child pornography, announced U.S. Attorney Kenneth Magidson. The complaint was filed today and alleges Reynaldo Ramirez distributed the child pornography via peer-to-peer software.
Ramirez is currently in state custody on related charges and is expected to be transferred to federal custody and make his initial appearance in federal court in the near future.
According to the criminal complaint, the case began when authorities were able to successfully download various files containing child pornography from an IP address that was associated with Ramirez. Authorities executed a search warrant at Ramirez’s residence, at which time they seized several digital devices. At the time of the search, authorities located a Santa Claus costume in Ramirez’s residence. When questioned about the outfit, Ramirez stated he had performed as Santa Claus for the past 15 years throughout the South Texas area, according to the allegations.
Ramirez had allegedly downloaded more than 1,000 images of child pornography ranging in ages from toddlers to pre-teens, according to information in the criminal complaint.
If convicted, Ramirez faces a minimum of five and up to 20 years in federal prison and a possible $250,000 maximum fine.
The charges against Ramirez are the result of an investigation conducted by the Corpus Christi Police Department-Internet Crimes Against Children Task Force with the assistance of Homeland Security Investigations.
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."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Wyoming Man Sentenced for Arson of Building Receiving Federal Funds; Using a Firearm During and in Relation to a Crime of Violence; Possession of an Unregistered Firearm; and False Declaration Before a Grand Jury (U.S. Attorney for the District of WyomingRead the Press Release
Cheyenne – U.S. Attorney Christopher A. Crofts announced today that Sheridan, Wyoming resident Joel S. Elliott has been sentenced to thirty-seven (37) years of imprisonment in federal court, consecutive to time being served on separate state charges. In addition to his term of imprisonment, Elliott was ordered to pay a $400.00 special assessment, restitution in the amount of $940,000.00, and will be placed on five years of supervised release upon release from federal custody.
In June 2014, Joel Elliot fire bombed the Sheridan County Attorney’s Office. After a four-day jury trial in the U.S. District Court in Casper, a jury found him guilty on all counts related to that fire: arson of building receiving federal funds; using a firearm during and in relation to a crime of violence; possession of an unregistered firearm; and false declaration before a Grand Jury.
"The Defendant created a substantial risk of injury to other persons, including public safety officers engaged in the performance of their duties. The trial team on this case did an excellent job, from investigation through the successful prosecution of Joel Elliott in this matter," said United States Attorney Crofts.
"I want to commend the ATF agents, Wyoming United States Attorney’s Office and Sheridan Police Department for their outstanding investigation and prosecution in this case. Elliott won’t be able to wreak any more havoc on his community for a very long time," said ATF Special Agent in Charge Ken Croke. "This substantial prison sentence should be a warning to anyone who thinks arson is acceptable in any circumstance."
The investigation in this case was conducted by the Sheridan Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant U.S. Attorney Stuart S. Healy III.
Winchester Woman Pleads Guilty to Embezzling $1 Million from Credit UnionRead the Press Release
ALEXANDRIA, Va. – Donna L. Jennings, 44, of Winchester, pleaded guilty today to charges relating to embezzling over $1 million from Winchester Community Federal Credit Union.
In a statement of facts filed with the plea agreement, Jennings admitted to stealing $1,059,767.52 in funds from Winchester Community Federal Credit Union where she was employed as its manager. From 2001 through 2014, Jennings took cash from teller drawers, fraudulently opened financial accounts, conducted financial transactions without customers’ knowledge, made false entries into accounting records, and approved loans without authority. Jennings funneled the proceeds of her fraud into accounts she controlled and used the stolen funds to purchase gifts for herself and pay credit card bills. When federal bank examiners questioned Jennings about suspicious transactions, she made false statements and altered Board of Director meeting minutes to support her lies. As a result of Jennings’ conduct, the National Credit Union Administration placed Winchester Community Federal Credit Union into a restricted status and invited another financial institution to merge with it for the protection of its membership and the National Credit Union Administration insurance fund.
Jennings faces a maximum penalty of 30 years in prison when sentenced on April 8, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Uzo Asonye is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-358.
Westlake cardiologist sentenced to 20 years in prison for overbilling Medicare and others by $5.7 million for unnecessary proceduresRead the Press Release
A Westlake cardiologist was sentenced to 20 years in prison for performing unnecessary catheterizations, tests, stent insertions and causing unnecessary coronary artery bypass surgeries as part of a scheme to overbill Medicare and other insurers, law enforcement officials said.
Dr. Harold Persaud, 56, was convicted earlier this year of one count of health care fraud, 13 counts of making false statements and one count of engaging in monetary transactions in property derived from criminal activity.
“This defendant used his medical license as a license to steal,” said First Assistant U.S. Attorney Carole S. Rendon. “He inflated Medicare billings, falsified cardiac care records and performing needless and sometimes invasive tests and procedures. This prison sentence is well deserved.”
“Dr. Persaud violated the sacred trust between doctor and patient by ordering unnecessary tests, procedures and surgeries to line his pockets,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “He ripped off taxpayers and put patients’ lives at risk.”
“Dr. Persaud's systematic use of medically unnecessary tests and procedures, falsification of patient records, and submission of false billings to health care insurers added up to a toxic mixture of fraud at the expense of patient safety and well-being, and taxpayer dollars,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General - Chicago Region. “The OIG, along with our law enforcement partners, will continue to identify, investigate and seek the criminal prosecution of those who choose to exploit federally funded health care programs and the patients these programs serve.”
Persaud had a private medical practice at 29099 Health Campus Drive in Westlake and had hospital privileges at Fairview Hospital, St. John’s Medical Center and Southwest General Hospital, according to court documents and trial testimony.
Persaud devised a scheme to defraud and obtain money from Medicare and other insurers. The scheme took place between 2006 and 2012. According to court documents and trial testimony, his activities in furtherance of the scheme included:
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Persaud selected the billing code for each customer submitted to Medicare and private insurers, and used codes that reflected a service that was more costly than that which was actually performed;
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Persaud performed nuclear stress tests on patients that were not medically necessary;
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He knowingly recorded false results of patients’ nuclear stress tests to justify cardiac catheterization procedures that were not medically necessary;
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Persaud performed cardiac catheterizations on patients at the hospitals and falsely recorded the existence and extent of lesions (blockage) observed during the procedures;
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He recorded false symptoms in patient records to justify testing and procedures on patients;
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Persaud inserted cardiac stents in patients who did not have 70 percent or more blockage in the vessel that he stented and who did not have symptoms of blockage;
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He placed a stent in a stenosed artery that already had a functioning bypass, thus providing no medical benefit and increasing the risk of harm to the patient;
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He improperly referred patients for coronary artery bypass surgery when there was no medical necessity for such surgery, which benefitted Persaud by increasing the amount of follow-up testing he could perform and bill to Medicare and private insurers;
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Persaud performed medically unnecessary stent procedures, aortograms, renal angiograms and other procedures and tests.
As a result of this scheme, Persaud overbilled and caused the overbilling of Medicare and private insurers in the amount of approximately $29 million, of which Medicare and the private insurers paid approximately $5.7 million, according to court records.
A hearing is scheduled for January 27 to determine restitution.
This case is being prosecuted by Assistant U.S. Attorneys Michael L. Collyer and Chelsea Rice following an investigation by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services – Office of Inspector General
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Virginia Beach Man Charged with Distribution of Heroin Resulting in DeathRead the Press Release
NORFOLK, Va. – Gregory Hatt, 28, of Virginia Beach, was charged today through a superseding indictment with conspiracy to distribute heroin, distribution of heroin resulting in death, distribution of heroin, possession with intent to distribute heroin and cocaine, and the possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, Hatt allegedly sold heroin, cocaine, and other narcotics to local residents out of a house he rented in Virginia Beach from December 2014 through July 2015. On Dec. 26, 2014, Hatt distributed heroin at his house to Monica Beaudry, a 23-year-old Virginia Beach woman, who later overdosed. Hatt’s roommate implored him to call 911, but Hatt refused. After some delay, Hatt drove her to Chesapeake Regional Medical Center where she was pronounced dead. Hatt was aware of Beaudry’s death, but continued to distribute heroin from his residence and from other Virginia Beach locations through July 2015. On July 24, 2015, law enforcement agents with NCIS and Virginia Beach Police Department executed a search warrant on Hatt’s residence. The agents found over 36 grams of heroin, 17 grams of cocaine, various drug paraphernalia, and multiple firearms including a fully loaded sawed-off shotgun.
Hatt faces a maximum penalty of life in prison, if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after the grand jury returned the indictment. The case is being investigated by NCIS and the Virginia Beach Police Department. Special Assistant U.S. Attorneys Alyssa Nichol and John Butler are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-140.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Veteran York County Police Officer Arrested on Federal Corruption ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a 17 year veteran police officer with the Fairview Township Police Department was arrested today by federal authorities on corruption charges.
According to United States Attorney Peter Smith, Officer Tyson Baker, age 41, Etters, was charged in a criminal complaint with violations of federal law relating to his conduct as a police officer.
In the complaint, the Federal Bureau of Investigation charged Baker with stealing money from drug traffickers who had been arrested, the subject of police traffic stops, or both. The specific federal statute is the Hobbs Act, which prohibits interfering with interstate commerce by force, violence or intimidation. Baker was also charged with removing evidence that was subject to seizure and providing false information to federal authorities.
The complaint also charges that, in November, Baker orchestrated the theft of $2,000 in drug proceeds seized by the Fairview Township Police Department during a search of a residence that had resulted in the seizure of several pounds of marijuana and approximately $14,000. The FBI recorded conversations with Baker allegedly regarding the theft. The criminal complaint also alleges that Baker discussed robbing drug traffickers of drug proceeds during traffic stops.
According to the complaint, on December 16, 2015 the FBI, with the full cooperation of the Fairview Township Police Department, arranged for a vehicle operated by an undercover FBI agent to be stopped. It is alleged that Baker had the vehicle towed from the scene and, without a warrant and in spite of directions not to search the vehicle, allegedly searched the vehicle and stole $3,000 concealed in the vehicle.
The case is being investigated by the Federal Bureau of Investigation, Harrisburg Resident Office, the Pennsylvania State Police, the Pennsylvania Office of Attorney General, and the Fairview Township Police Department.
Prosecution of the case is assigned to Assistant United States Attorney William A. Behe.
Baker’s initial appearance is scheduled for 3:00 p.m. before Chief U.S. Magistrate Judge Martin C. Carlson in Harrisburg
Criminal complaints, like indictments, are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years on the Hobbs Act charge, and 5 years on each of the two other counts of the complaint. There is also a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Verona Man Sentenced to 46 Months in Prison for Conspiring to Deal CocaineRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 46 months’ imprisonment on his conviction of conspiracy to distribute cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Damian Petty, 52, of Verona, 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, Damian Petty 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.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to fulfill the purposes 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 Streets 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 Police Department for the investigation leading to the successful prosecution of Petty.
U.S. Attorney Announces New Fresno Office ChiefRead the Press Release
FRESNO, Calif. — United States Attorney Benjamin B. Wagner announced today the appointment of Kirk Sherriff as the new chief for the U.S. Attorney’s Office in Fresno. Sherriff’s appointment follows the departure of long-time Fresno chief Mark Cullers who has been appointed by the Governor to serve as a Judge of the Superior Court for Fresno County.
Cullers, a Sacramento native, has served as chief of the U.S. Attorney's Office, Eastern District of California, Fresno Division since 2003. Prior to that he served as deputy chief from 1997 to 2003 and as an Assistant U.S. Attorney from 1988 to 1997. Cullers was an associate attorney at Kronick, Moskovitz, Tiedemann and Girard from 1986 to 1988. He earned his Juris Doctor degree from the George Washington University Law School and a Bachelor of Arts Degree from the University of California, Los Angeles. As chief of the office, Cullers mentored many Assistant United States Attorneys, established a tone of collaboration and team spirit and was an outstanding representative of the office throughout the greater Fresno region.
Assistant United States Attorney Kirk Sherriff has worked in the Fresno office since 2002. He initially served for five years in the civil division and joined the criminal division in 2007. Sherriff has handled many of the most complex and high-profile cases in the office and has been the White Collar Unit chief for the last three years. In particular, he has overseen and personally litigated multiple large-scale mortgage fraud prosecutions, which arose out of the financial crisis that so severely impacted California’s Central Valley. As unit Chief, Sherriff oversaw tremendous growth in the office’s white collar practice, and served as a mentor to many new prosecutors. Before joining our office, Sherriff spent six years with a major international law firm in New York and Paris. He is a cum laude graduate of both Columbia University and Harvard Law School.
The Fresno office is responsible for federal criminal prosecution and civil litigation in an 11-county area from Modesto to the Los Angeles County line. It handles federal cases from these counties: Calaveras, Fresno, Inyo, Kern, Kings, Madera, Mariposa, Merced, Stanislaus, Tulare, and Tuolumne.
Two Men Head to Prison for Participating in a Cocaine ConspiracyRead the Press Release
McALLEN, Texas – Two U.S. citizens who reside in South Texas have been ordered to federal prison following their convictions of conspiracy to possess with intent to distribute large amounts of cocaine and money laundering, announced U.S. Attorney Kenneth Magidson. Alfonso Mata, 55, and Abelino Garza, 36, of San Benito and McAllen, respectively, pleaded guilty Feb. 5, 2013.
Today, Chief U.S. District Judge Ricardo H. Hinojosa handed Mata a total sentence of 87 months in federal prison, while Garza was ordered to serve a 120-month-term. Both men will also serve five years of supervised release.In 2012, federal law enforcement agents determined Mata and others were transporting large quantities of cocaine from South Texas to several cities in Ohio. As a result, agents arrested Mata’s associates for drug offenses committed in the Midwest. Mata was later arrested along with Garza and Alberto Garcia-Saldivar for their participation in the transportation of approximately 30 kilograms of cocaine from San Benito to Toledo, Ohio. Agents eventually seized 17 vehicles, including several classic cars and eight properties, which Mata admitted he had purchased with drug profits. The combined value of the seized property is $1.5 million.
Garcia-Saldivar, 48, of San Benito, also pleaded guilty and was previously sentenced to 36 months in prison.
All three men will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The convictions are a culmination of an Organized Crime Drug Enforcement Task Force Operation dubbed “Landing Strip.” To date, there have been approximately 10 other convictions in Texas and Ohio in relation to the investigation. The three-year investigation targeting Mata and other significant drug traffickers based in San Benito, was conducted by the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, FBI, Cameron County District Attorney’s Office, police departments in San Benito, Brownsville, Port Isabel, Harlingen, as well as the Cameron County Sheriff’s Office.This case was prosecuted by Assistant U.S. Attorney Jesse Salazar.
Two King County Residents Enter Guilty Pleas in Separate Child Pornography InvestigationsRead the Press Release
Two Seattle area men pleaded guilty today in U.S. District Court to offenses related to images of child rape and exploitation, announced U.S. Attorney Annette L. Hayes. Both men are being prosecuted as part of the U.S. Attorney’s Office coordinated efforts with the King County Prosecuting Attorney’s Office and Washington’s Internet Crimes Against Children (ICAC) task force.
In the first case, DANNY ZIMMERMAN, 43, a registered sex offender from SeaTac, Washington was arrested in June 2015, after an investigation traced images of child rape to ZIMMERMAN’s twitter account and his internet protocol (IP) address. According to records filed in King County Superior Court and in U.S. District Court, between September 2014 and February 2015, Twitter made multiple reports to the National Center for Missing & Exploited Children (NCMEC) about images of child rape uploaded to the internet. The reports resulted in a law enforcement investigation that revealed that the internet address involved in the distribution of the sexually explicit images was used by ZIMMERMAN. ZIMMERMAN has two 1996 convictions for child molestation in the first degree.
Under the terms of the plea agreement ZIMMERMAN faces a mandatory minimum ten years in prison when sentenced by U.S. District Judge John C. Coughenour on March 15, 2016.
In the second case, GREGORY MARK MOLLEY, 54, of Issaquah, Washington pleaded guilty to receipt of images of minors in sexually explicit conduct and faces a sentence of seven to nine years in prison when sentenced by Judge Coughenour on March 18, 2016. According to the facts in the plea agreement MOLLEY used hidden cameras to film children in the bathroom and bedrooms of his home.
The ZIMMERMAN case was investigated by the Internet Crimes against Children Task Force, the Kent Police Department and the King County Sheriff’s Office. The MOLLEY case was investigated by the King County Sheriff’s Office (KCSO) and the U.S. Secret Service.
Both cases are being prosecuted by Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is a Senior Deputy King County Prosecutor specially designated to prosecute child exploitation cases in federal court.
These cases were 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.justice.gov/psc.
Tax Preparer Pleads Guilty to Tax Fraud and Wire FraudRead the Press Release
PROVIDENCE, R.I. – Leon F. Tejada, 50, of Providence, operator of El Centro Multiservicios, LLC, a tax preparation service in Providence, pleaded guilty today to federal tax fraud and wire fraud charges, announced United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of IRS Criminal Investigation.
Appearing before U.S. District Court Chief Judge William E. Smith, Tejada admitted to the court that during tax years 2009 through 2012, without the knowledge of his clients, he created and falsified clients’ dependents, exemptions, tax credits, deductions and expenses in order to increase the amount of tax refund due to some of his clients. An investigation by agents from IRS Criminal Investigation and by the United States Attorney’s Office determined that the tax fraud scheme resulted in a loss to the United States of $54,440.
Tejada admitted to the court that he also devised a scheme to divert some of his clients’ tax refunds through a bank clearing house, at which time, without the knowledge of his clients, a portion of the funds were diverted into his own bank account for his own personal use. The investigation determined that Tejada diverted $24,987 into his own bank account.
Tejada, who is released on unsecured bond, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on March 10, 2016.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose.
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Jim Martin (401) 709-5357
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Tampa Man Arrested and Charged with Possession of Child PornographyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the arrest and filing of a criminal complaint charging David Kneitel (56, Tampa) with possession of child pornography. If convicted, he faces a maximum penalty of 10 years in federal prison.
According to the complaint, a federal search warrant was executed at Kneitel’s residence yesterday. A preliminary review of his computer revealed numerous images and videos depicting child pornography, including images of prepubescent children engaged in sexually explicit conduct.
This case is being investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Jennifer L. Peresie.
A criminal complaint 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 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 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 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.justice.gov/psc.
Suspected Alien Smuggler and Four Others Indicted on Immigration-Related ChargesRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned four indictments arising from an investigation into the transportation of illegal aliens through the Middle District of Louisiana.
On December 16, 2015, a federal grand jury returned an indictment charging Pedro Torrell-Matos, age 69, with transporting illegal aliens within the United States. In a related matter, three individuals – David Gazpar-Godinez, Estuquio Orozco-Valazquez, and Simon Cruz-Pena – were also indicted by the grand jury, and each stands charged with illegal re-entry into the U.S. by a previously-deported alien.
This matter is being investigated by the Baton Rouge offices of the U.S. Border Patrol and the U.S. Department of Homeland Security, Homeland Security Investigations. This ongoing investigation is being prosecuted by Assistant U.S. Attorney Frederick A. Menner, Jr.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Statement by Deputy Attorney General Sally Quillian Yates on the President's Clemency DecisionsRead the Press Release
Deputy Attorney General Sally Quillian Yates released the following statement after the clemency announcement made today by President Obama:
“The president’s decision today to commute the prison terms of 95 individuals is another sign of this administration’s strong commitment to ensuring fairness in the criminal justice system. The Justice Department has pursued that goal by changing charging policies through our Smart on Crime initiative, working cooperatively with the U.S. Sentencing Commission to reduce guidelines for certain drug offenders, urging Congress to enact meaningful and comprehensive sentencing reform legislation and identifying appropriate candidates for executive clemency. While the clemency initiative is just one prong in the larger effort to reform sentencing practices, it is one to which we are strongly committed.”
St. Croix Man Arrested Unlawfully Mailing FirearmsRead the Press Release
St. Croix, USVI – Jahraun Malachi Brodhurst, 24, a native of St. Croix, was arraigned on Thursday, December 17, before U.S. Magistrate Judge George Cannon on a superseding indictment charging him with one count of transporting and shipping a firearm with an obliterated serial number and two counts of unlawfully mailing a firearm, United States Attorney Ronald W. Sharpe announced. Brodhurst was arrested on December 4, 2015, in Florida.
According to the superseding indictment, Brodhurst shipped a Smith and Wesson AR-15 lower receiver with an obliterated serial number and mailed a Springfield Armory .40 caliber pistol from Florida to St. Croix on May 26, 2014. Also, on July 13, 2013, Brodhurst mailed a Glock 23 pistol from Florida to St. Croix.
If convicted of transporting and shipping a firearm with an obliterated serial number, Brodhurst faces a maximum sentence of 10 years’ imprisonment and a $250,000 fine. If convicted of unlawfully mailing a firearm, Brodhurst faces a maximum sentence of two years’ imprisonment and a $250,000 fine on each count.
The superseding indictment is the result of investigative work conducted by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Rami. S. Badawy.
United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Springfield Man Pleads Guilty to Stealing Mail, Credit Card FraudRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man pleaded guilty in federal court today to possessing stolen mail and to credit card fraud.
Eric David Vancil, 46, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charges contained in a Dec. 8, 2015, federal indictment.
Vancil admitted that between Oct. 23, 2013, and April 28, 2015, he stole mail from at least 55 individuals in Greene County, Mo., and elsewhere. Law enforcement investigators determined that the mail matter included checks, credit cards, and other personal identification cards and information that belonged to other individuals. Vancil used the stolen mail and information to create or activate credit card accounts that contained personal identification numbers issued to others. Vancil then conducted fraudulent financial transactions using the stolen credit, debit and identification cards to make purchases.
The investigation began when federal agents were notified of numerous break-ins into mail boxes and mail collection receptacles and the theft of mail throughout the Springfield and Joplin, Mo., areas, including several neighborhood delivery collection box units where mail was stolen by prying the rear, locked doors. On Oct. 25, 2013, Vancil was stopped in his Nissan Pathfinder Joplin police officers for a traffic violation. Officers located stolen mail bearing several Springfield addresses, including personal checks. Officers also located a pry bar inside of the vehicle at the time of the stop along with additional stolen mail and IRS tax forms.
On Dec. 24, 2013, another victim reported her mail was stolen and provided two video surveillance photos of a suspect vehicle that matched Vancil’s Nissan Pathfinder. On Feb. 4, 2014, Vancil was stopped by a Springfield police officer in his Nissan Pathfinder. The vehicle contained drugs, numerous burglary tools, stolen checks and several identifications bearing names other than the vehicle occupants.
On Feb. 20, 2014, two checkbooks, keys and multiple credit cards were stolen from a vehicle in Nixa, Mo. The credit card was used at several stores in the Battlefield Mall, including a fraudulent purchase at Foot Locker. When Vancil returned to the store the next day to return the merchandise, store employees called police and delayed Vancil until officers arrived. After a brief foot pursuit, officers detained Vancil, who was carrying checks, credit cards and other items from the theft victim.
On Jan. 27, 2015, a witness reported that a suspect later identified as Vancil drove up to a mailbox and removed mail from the box. On April 28, 2015, a witness reported a suspicious vehicle in Springfield, going from mailbox to mailbox stealing mail. Greene County sheriff’s deputies located the vehicle, the Nissan Pathfinder driven by Vancil. Vancil attempted to flee from officers and drove through some residential yards before being stopped. Deputies recovered approximately 100 pieces of mail from inside the vehicle, in addition to checkbooks, credit cards, applications for financial assistance as well as debit card information and other handwritten personally indefinable information. The recovered mail on this occasion contained addresses for 38 victims.
Among the credit card numbers found in Vancil’s vehicle was one used to make an online reservation for a Springfield motel room.
Under federal statutes, Vancil is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Postal Inspection Service and the Springfield, Mo., Police Department.
Splint Supplier and Its President to Pay over $10 Million to Resolve False Claims Act AllegationsRead the Press Release
Maryland-based splint supplier Dynasplint Systems Inc., and its founder and president, George Hepburn, have agreed to pay approximately $10.3 million to resolve allegations that they violated the False Claims Act by improperly billing Medicare for splints provided to patients in skilled nursing facilities, the Department of Justice announced today.
“Health care companies and their principals who flout Medicare rules will be held accountable,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing vigilance to ensure that companies and individuals do not plunder taxpayer funded programs for their own enrichment.”
“The civil False Claims Act is a valuable weapon in our office’s arsenal to combat abuse of federal healthcare funds here in the Eastern District of Louisiana and nationwide,” said U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana. “The favorable resolution and settlement of the claims in this case serve as a reminder to all in the industry to stay vigilant for signs of waste and abuse by providers in our healthcare markets.”
The government alleged that Hepburn and Dynasplint knowingly mischarged Medicare for splints used by patients in Medicare-certified skilled nursing facilities. Patients staying in skilled nursing facilities, or their insurers such as Medicare, pay a bundled payment to these facilities that cover all of a patient’s needs, including such items as splints, and thus no separate Medicare reimbursement for such devices is permitted. To circumvent Medicare rules, defendants allegedly mispresented that patients were in their homes or other places that were not skilled nursing facilities.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $26.7 billion through False Claims Act cases, with more than $16.8 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement resolves allegations originally brought in a lawsuit filed by Meredith Deane, a former sales executive for Dynasplint, under the whistleblower, or qui tam, provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The United States may intervene in such an action as it did here. Ms. Deane will receive at least $1.98 million for the settlement.
In August 2013, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services (CMS) suspended payments to Dynasplint based upon credible allegations of fraud. As part of the settlement, defendants are agreeing to forfeit all funds held by this payment suspension, approximately $8.5 million.
“CMS’ highest priority is protecting people with Medicare benefits and taxpayers and the agency will continue to hold health care providers and suppliers accountable for following Medicare rules,” said Acting Administrator Andy Slavitt of HHS CMS. “We are pleased to partner with the Department of Justice and law enforcement to safeguard patients, taxpayer funding and the integrity of our programs.”
The case was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Eastern District of Louisiana and HHS’ Office of Inspector General.
The lawsuit is captioned U.S. ex rel. Deane v. Dynasplint Health Systems, Inc. and George Hepburn, Case No. 10-cv-2085 (E.D. La.). The claims resolved by this settlement are allegations only and there has been no determination of liability.
Splint Supplier and Its President to Pay over $10 Million to Resolve False Claims Act AllegationsRead the Press Release
Maryland-based splint supplier Dynasplint Systems Inc., and its founder and president, George Hepburn, have agreed to pay approximately $10.3 million to resolve allegations that they violated the False Claims Act by improperly billing Medicare for splints provided to patients in skilled nursing facilities, the Department of Justice announced today.
“Health care companies and their principals who flout Medicare rules will be held accountable,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing vigilance to ensure that companies and individuals do not plunder taxpayer funded programs for their own enrichment.”
“The civil False Claims Act is a valuable weapon in our office’s arsenal to combat abuse of federal healthcare funds here in the Eastern District of Louisiana and nationwide,” said U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana. “The favorable resolution and settlement of the claims in this case serve as a reminder to all in the industry to stay vigilant for signs of waste and abuse by providers in our healthcare markets.”
The government alleged that Hepburn and Dynasplint knowingly mischarged Medicare for splints used by patients in Medicare-certified skilled nursing facilities. Patients staying in skilled nursing facilities, or their insurers such as Medicare, pay a bundled payment to these facilities that cover all of a patient’s needs, including such items as splints, and thus no separate Medicare reimbursement for such devices is permitted. To circumvent Medicare rules, defendants allegedly mispresented that patients were in their homes or other places that were not skilled nursing facilities.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $26.7 billion through False Claims Act cases, with more than $16.8 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement resolves allegations originally brought in a lawsuit filed by Meredith Deane, a former sales executive for Dynasplint, under the whistleblower, or qui tam, provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The United States may intervene in such an action as it did here. Ms. Deane will receive at least $1.98 million for the settlement.
In August 2013, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services (CMS) suspended payments to Dynasplint based upon credible allegations of fraud. As part of the settlement, defendants are agreeing to forfeit all funds held by this payment suspension, approximately $8.5 million.
“CMS’ highest priority is protecting people with Medicare benefits and taxpayers and the agency will continue to hold health care providers and suppliers accountable for following Medicare rules,” said Acting Administrator Andy Slavitt of HHS CMS. “We are pleased to partner with the Department of Justice and law enforcement to safeguard patients, taxpayer funding and the integrity of our programs.”
The case was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Eastern District of Louisiana and HHS’ Office of Inspector General.
The lawsuit is captioned U.S. ex rel. Deane v. Dynasplint Health Systems, Inc. and George Hepburn, Case No. 10-cv-2085 (E.D. La.). The claims resolved by this settlement are allegations only and there has been no determination of liability.
Sandusky man faces child pornography chargesRead the Press Release
William Lester, 21, of Sandusky, was charged with receiving and distributing visual depictions of real minors engaged in sexually explicit conduct, Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment charges that from on or about May 14, 2013, through on or about November 8, 2013, Lester knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct.
If convicted, the defendant’s sentence will be determined by the court after review of 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.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Department of Homeland Security, Cleveland Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
San Juan Man Heads to Prison After Downloading Sadistic Child Pornography VideosRead the Press Release
McALLEN, Texas – A 29-year-old resident of San Juan has been ordered to federal prison for nearly 20 years following his conviction of receipt of child pornography, announced U.S. Attorney Kenneth Magidson. Ruben James Rios pleaded guilty Sept. 3, 2015.
Today, U.S. District Judge Micaela Alvarez took into consideration the nature of the videos in the defendant’s collection, which consisted of children primarily between the ages of 10-14 and as young as three, and handed Rios a sentence of 235 months. The sentence will be immediately followed by 10 years of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. Additional information was also presented today, including the fact that Rios enjoyed watching videos that he described as providing a “shock and awe” factor, including one particular video in which a minor female child was raped and beaten to the point where it appeared she had died. There was additional testimony regarding the calculated steps Rios took in acquiring the child pornography in his collection, including the specific search terms he would use and his previewing of videos prior to actual downloading. There was also evidence presented concerning the fact that he had downloaded a browser which would be used to conceal his identity from law enforcement while browsing the Internet.
Rios came to the attention of law enforcement following an investigation which began Feb. 8, 2015, into persons using the Internet to traffic in child pornography. A special agent with Homeland Security Investigations (HSI) was able to locate and identify a computer as offering to participate in the receipt of child pornography movies through the peer-to-peer network on the Internet. Through the investigation, it was determined that the computer was located in a residence in San Juan.
On May 27, 2015, authorities executed a search warrant at that residence during which time they seized a laptop computer and various external storage media devices. A forensic examination on the devices revealed a total of 147 child pornography movies involving clearly young children engaged in sexually explicit conduct. These movies included children under the age of 12 engaged in sadistic conduct and acts of violence. Some of the movies are of known victims as identified through the National Center for Missing and Exploited Children.
Rios admitted he downloaded child pornography from the Internet thereby receiving the child pornography found on his computer and external storage media devices.
Rios will remain in custody 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 conducted by HSI.
This case, prosecuted by Assistant United States Attorneys Alex Benavides and Kimberly Ann Leo, 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."
San Fernando Valley Man Convicted of Giving Illegal Gifts to Government Employees in Exchange for BusinessRead the Press Release
LOS ANGELES – A man who operated two businesses that sold office supplies to the federal government has been convicted by a federal jury of giving illegal gifts to federal employees who did business with his companies.
Ivan Greenhut, 57, of Tarzana, was convicted late yesterday afternoon in United States District Court of one count of conspiring to give gifts to federal officials who purchased products from Greenhut’s companies and one count of giving a gift to a public official, specifically a United States Army employee who purchased products from Greenhut’s companies.
“The public is entitled to impartial purchasing decisions by federal employees,” said United States Attorney Eileen M. Decker. “Mr. Greenhut’s illegal gift scheme cast doubt upon every purchase from his companies, thereby violating the public’s trust and confidence in its government. That scheme now has him facing a significant federal prison sentence.”
Greenhut operated two companies – Modern Data Products, which operated out of Canoga Park, and Modern Imaging Solutions, based out of the Philippines. These companies sold office supplies – for example, printer and photocopier supplies, toner cartridges, stationary and office furniture – to government and U.S. Army officials whose job it was to buy supplies on behalf of the federal government.
Greenhut was part of scheme to pay gratuities to government contracting officers who purchased supplies from his companies. “These gifts included electronics, such as laptop computers, digital cameras, iPads, iPods and gift certificates, worth hundreds of dollars, to retailers such as Amazon, Safeway, Target, and Best Buy,” according to court documents. “Many of these gifts were sent to the government official’s personal residence or personal email addresses.”
Testimony at trial showed that Greenhut also operated a “rewards” program in which government contracting officers earned “points” based on the amount they approved their agency to purchase.
The evidence at trial showed that Greenhut provided government officials who purchased supplies from his companies gifts with a total value of more than $36,000.
A witness testified that Greenhut knew that federal buyers could not accept gifts and that he was asked to stop. Greenhut also knew that the gifts could get him “in criminal trouble,” according to instant message communications shown to the jury. Greenhut refused to stop giving the gifts, however, because the gifts brought him “far too much business.”
United States District Judge Christina A. Snyder, who presided over the four-day trial, scheduled a sentencing hearing for March 21, 2016, at which time Greenhut will face a statutory maximum penalty of seven years in federal prison.
The jury that convicted Greenhut of the two felony charges also acquitted him of a witness tampering charge that alleged he attempted to persuade the businesses’ co-owner to lie about the gratuities to investigators.
The case against Greenhut is the product of an investigation by the Defense Criminal Investigative Service, which received substantial assistance from NASA’s Office of Inspector General and General Services Administration, Office of Inspector General.
Rowlett Man Sentenced to Serve 60 Months in Federal Prison for Mailing More Than 400 Hoax White Powder LettersRead the Press Release
DALLAS — A Rowlett, Texas, man, who admitted mailing hundreds of white-powder hoax letters, was sentenced this afternoon in federal court in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.
Departing upward from the U.S. Sentencing Guidelines, U.S. District Judge Sidney A. Fitzwater sentenced Hong Minh Truong, 67, to serve a total of 60 months in federal prison. Truong pleaded guilty in July 2015 to an indictment charging five counts of false information and hoaxes. He has been in custody since July 28, 2014.
At the sentencing hearing, Judge Fitzwater noted that Truong’s conduct was significant and dangerous and involved more than 400 threatening letters in multiple batches over more than a five-year period. Truong’s conduct cost emergency and investigative responders more than $2.8 million, which does not include economic losses to businesses, schools and government offices.
According to the factual resume filed in the case, since December 2008, Truong mailed more than 400 hoax letters from the North Texas area to cities across the U.S. and to U.S. Embassies abroad. The initial letters, sent out on December 4, 2008, had a “Dallas, Texas” postmark and contained a white-powder substance. More than 15 batches of hoax letters were sent from the Dallas area from December 2008 to the present. In all but two batches of letters, a white-powder substance was included in the envelope.
The substance contained in the more than 400 letters in this case did not contain Anthrax; however, substantial governmental resources were expended in the response and investigation. Although each response was unique, every response involved multiple agencies dispatching personnel and equipment.
Truong mailed some of the hoax letters to more than 100 elementary schools and daycare centers, including the Mi Escuelita Preschool Crossover, in Dallas; Lockheed Martin Aeronautics in Fort Worth, Texas; the Empire State Building, in New York City; Fenway High School in Boston, Massachusetts; and the Dallas Morning News in Plano, Texas.
The U.S. Postal Inspection Service and the FBI investigated. Assistant U.S. Attorney Errin Martin prosecuted.
# # #
Rockville Man Pleads Guilty to Scheme to Steal over $120,000 from Non-Profit Where He WorkedRead the Press Release
Greenbelt, Maryland – Lowell Meredith Sherman, age 49, of Rockville, Maryland, pleaded guilty today to a wire fraud conspiracy in connection with a scheme defraud a non-profit organization.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief J. Thomas Manger of the Montgomery County Police Department; and Postal Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service - Washington Division.
According to this plea agreement, from 2005 through January 2010, and again from June 2013 through October 2014, Sherman was an employee at a non-profit organization in Montgomery County, Maryland. Between April 2011 and August 2014, Sherman and his co-conspirator, who was also employed at the organization, without authorization, caused the company to purchase unneeded electronic devices, including hard drives and memory tapes, which Sherman and his co-conspirator then sold on-line. Sherman and his co-conspirator used email to communicate with potential buyers and used online payment companies to accept payment for the items and to distribute the payments amongst themselves.
The government believes that the total loss as a result of Sherman’s conduct is $292,593.75. Sherman admits that the amount of loss reasonably foreseeable to him is at least $120,000. The exact amount of loss will be determined at sentencing and as part of his plea agreement Sherman has agreed to the entry of a restitution order in that amount.
Sherman faces a maximum sentence of 20 years in prison for conspiracy to commit wire fraud. U.S. District Judge Theodore D. Chuang has scheduled sentencing for February 29, 2016, at 11:00 am.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the Montgomery County Police Department and U.S. Postal Inspection Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom and Joseph R. Baldwin, who are prosecuting the case.
Recidivist Securities Fraud Defendant Extradited and Charged in Manhattan Federal Court in Connection with Market Manipulation and Scheme to DefraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced the unsealing of an Indictment against EDWARD DURANTE, a/k/a “Ted Wise,” a/k/a “Efran Eisenberg,” a/k/a “Yulia,” a/k/a “Ed Simmons,” charging him with conspiracy, securities fraud, wire fraud, money laundering, and perjury stemming from a scheme, between 2009 and March 2015, to defraud at least 100 investors of more than $14 million, more than $9 million of which was funneled to DURANTE, his family, or co-conspirators. DURANTE executed the scheme – which centered around a publicly-traded Over-The-Counter company called VGTel, Inc. (“VGTL”) – through false and misleading representations about how private investor monies would be used, making material omissions in connection with the sale of VGTL securities, and through manipulation of the public market in VGTL’s stock. DURANTE, who was previously convicted of similar charges in this District in 2001 and was released from prison in 2009, arrived in the United States yesterday following his extradition from Germany. DURANTE was presented today in federal court in Manhattan before United States Magistrate Judge Henry B. Pitman. The case is assigned to U.S. District Judge Andrew L. Carter, Jr.
In a separate action, the U.S. Securities and Exchange Commission (“SEC”) announced civil charges against DURANTE.
U.S. Attorney Preet Bharara said: “As alleged, Edward Durante no sooner got out of prison from a prior securities fraud conviction than he started another fraud scheme. Picking up where he left off, Durante allegedly lied to investors about how their money would be used, and concealed his manipulation of the market for a publicly traded stock. Edward Durante now stands charged with securities fraud yet again.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “Durante tricked his victims into thinking their money would be invested as promised. Instead, he allegedly used their investments to fund his own lavish lifestyle. Unlike Durante, the FBI and our partners intend to keep the promises we make to those who invest their faith in us. Those who employ schemes to capitalize on the pain and suffering of others will most certainly be brought to justice.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Through lies and manipulation, Durante and his co-conspirators devised an egregious scheme with the sole purpose of stealing from investors; a classic case of greed overcoming honest business practices. Postal Inspectors remind investors that whenever great returns are offered, an abundance of caution should be exercised to avoid becoming a victim of a scam.”
According to the allegations in the Indictment unsealed today in Manhattan federal court,[1] and statements made in court proceedings:
2001 Securities Fraud Conviction
In December 2001, DURANTE was convicted in federal court of conspiracy to commit securities fraud, wire fraud, and money laundering, as well as making false statements in connection with a market manipulation scheme in which the defendant also used the alias “Ed Simmons.” The defendant was sentenced to 121 months in prison and was released in or about 2009, the year he began the current scheme. In connection with that scheme, DURANTE was ordered by a United States District Court to pay disgorgement and prejudgment interest totaling over $39 million. DURANTE was also barred from certain activities in connection with the securities industry, including the sale of securities.
Private Placement Securities Fraud Involving VGTL
Among other fraudulent and illicit conduct, between 2009 and in or about March 2015, DURANTE and his co-conspirators fraudulently induced victims to invest in VGTL by, among other things, lying to investors by representing that their investments would be used to fund the operations and growth of VGTL, when in reality their investments were used to personally benefit DURANTE and his co-conspirators. DURANTE also fraudulently induced private investments in VGTL by (a) lying to certain prospective investors about DURANTE’s true identity; (b) failing to disclose to prospective investors that DURANTE had previously been convicted of federal securities fraud violations; and (c) failing to inform certain prospective investors, when they were solicited by brokers to purchase VGTL, that they were purchasing VGTL shares from entities controlled by DURANTE and his associates, rather than from the issuer, and for which entities the brokers were acting as agents. Throughout this time, DURANTE used multiple aliases in connection with his oral and written communications with investors, including “Ted Wise,” “Efran Eisenberg,” and “Yulia.”
In order to fund his illegal scheme, DURANTE used a network of brokers and/or investment advisers (the “brokers”) across the country to recruit investors to buy shares of VGTL, including from California, the Midwest, New York, and Boston. The brokers used different tactics to entice investors. While certain investors knew they were investing in VGTL, the broker typically did not disclose that DURANTE had previously been convicted of securities fraud and other crimes and also misled investors about conflicts of interest and self-dealing that arose when brokers, who were paid by or associated with entities controlled by DURANTE and his associates, solicited investors to purchase VGTL shares without disclosing that the investors were actually purchasing shares directly from these DURANTE-controlled entities. In still other cases, the broker purchased VGTL stock without the permission of the victim investors.
Manipulation of the Market for Shares of VGTL
Aware that increased trading volume in publicly traded VGTL stock would make it more attractive to buyers and investors of private shares of VGTL, DURANTE’s scheme also included an effort to artificially inflate the price of publicly traded VGTL shares in order to create the appearance of greater demand for VGTL shares than actually existed. To pump up VGTL’s stock price, DURANTE caused others to engage in transactions in which accounts under DURANTE’s control bought or sold VGTL stock, while on the same day other accounts under DURANTE’s control took the opposite position. The result of these transactions was that DURANTE and his co-conspirators were effectively taking both sides of a single transaction in VGTL stock in order to artificially inflate the trading volume in VGTL stock as well as its price. In turn, the inflated price fueled DURANTE’s ability to raise private funds for VGTL. In total, Durante pocketed more than $9 million from investor funds, which he caused to be funneled to himself, his family, and his co-conspirators.
* * *
DURANTE, 63, is charged with one count of conspiracy to commit securities fraud, one count of securities fraud, one count of conspiracy to commit wire fraud, one count of wire fraud, one count of conspiracy to commit money laundering, one count of money laundering and one count of perjury. Counts One and Seven each carry a maximum sentence of five years in prison. Counts Two through Six each carry a maximum sentence of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the FBI and the Postal Inspection Service, and thanked the Securities and Exchange Commission for its assistance. He also thanked the United States Marshals Service for their efforts in achieving DURANTE’s extradition. He added that the investigation is continuing.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward Y. Kim, Daniel S. Goldman, and Andrea M. Griswold are in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
President Obama Grants Commutations and PardonsRead the Press Release
Today, President Barack Obama granted commutations of sentence to 95 individuals and pardons to two individuals.
The President granted commutations of sentence to the following 95 individuals:
- Donald Allen – Lynn Haven, FL
Offense: Conspiracy to possess with intent to distribute cocaine base; possession with intent to distribute cocaine base; possession of a firearm during a felony drug offense (Northern District of Florida)
Sentence: Life plus five years’ imprisonment; 10 years’ supervised release (Aug. 17, 1998)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Royal Deandre Allen – Houston, TX
Offense: Conspiracy to possess with intent to distribute cocaine base; possession with intent to distribute cocaine base (Southern District of Texas)
Sentence: Life imprisonment; 10 years’ supervised release; $17,500 fine (May 13, 1996)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016, and balance of the fine remitted.
- Sandra Avery – Sarasota, FL
Offense: Conspiracy to possess with the intent to distribute 50 grams or more of cocaine base; possession with intent to distribute a quantity of cocaine base; possess with the intent to distribute 50 grams or more of cocaine base (three counts); possess with the intent to distribute a quantity of cocaine; possess with the intent to distribute a quantity of cocaine base (Middle District of Florida)
Sentence: Life imprisonment; 10 years’ supervised release (Jan. 3, 2007)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Jose Aviles – Chicago, IL
Offense: Conspiracy to possess with intent to distribute more than five kilograms of cocaine (Middle District of Florida)
Sentence: Life imprisonment (Apr. 23, 1993)
Commutation Grant: Prison sentence commuted to expire on December 18, 2016.
- George Andre Axam – Atlanta, GA
Offense: Possession of a firearm by a convicted felon (Northern District of Georgia)
Sentence: 180 months’ imprisonment; four years’ supervised release (Jun. 12, 2007)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Ray Bennett – Hazlehurst, GA
Offense: Knowingly conspiring to distribute cocaine base (commonly known as “crack”); knowingly possessing with intent to distribute and causing to be possessed with intent to distribute a quantity of cocaine base (commonly known as “crack”) (Middle District of Florida)
Sentence: Life imprisonment; 10 years’ supervised release (Nov. 22, 1991)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Wendell Edward Betancourt – Washington, D.C.
Offense: Conspiracy to possess with intent to distribute and to distribute “crack” cocaine (Northern District of West Virginia)
Sentence: 220 months’ imprisonment; five years’ supervised release (Jun. 11, 2002)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Edward B. Betts – Carbondale, IL
Offense: Conspiracy to distribute in excess of 100 kilograms of marijuana (Southern District of Illinois)
Sentence: 360 months’ imprisonment; eight years’ supervised release (Jul. 27, 1992)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016, and eight-year term of supervised release commuted to two years of supervised release.
- Anthony Bosley – Spokane, WA
Offense: Possession with intent to distribute 50 grams or more of cocaine base (Eastern District of Washington)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (Jun. 13, 2006)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Ramona Brant – Freeport, NY
Offense: Conspiracy to possess with intent to distribute and distribute a quantity of cocaine and cocaine base (Western District of North Carolina)
Sentence: Life imprisonment; five years’ supervised release (Feb. 2, 1995)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Ivory Charles Brinson – Wabasso, FL
Offense: Possession with intent to distribute five grams or more of cocaine base (Southern District of Florida)
Sentence: 360 months’ imprisonment; eight years’ supervised release (Nov. 15, 2004)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Carolyn Yvonne Butler – San Antonio, TX
Offense: Armed bank robbery (three counts); using a firearm during a crime of violence (three counts) (Western District of Texas
Sentence: 48 years’ imprisonment; three years’ supervised release; $1,200 fine; $3,339 restitution (Jul. 30, 1992)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Arnold Charles Cabarris – Victoria, VA
Offense: Distribution of cocaine base; conspiracy to distribute cocaine base (Eastern District of Virginia)
Sentence: 262 months’ imprisonment; five years’ supervised release (Feb. 19, 1999)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Jimmy Lee Carter – Okeechobee, FL
Offense: Possession with intent to distribute cocaine base (Southern District of Florida)
Sentence: Life imprisonment; 10 years’ supervised release (Jul. 21, 1993)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Sherman Dionne Chester – St. Petersburg, FL
Offense: Conspiracy to possess with intent to distribute cocaine; conspiracy to possess and distribute heroin; distribution of cocaine (six counts); distribution of heroin (five counts); possession with intent to distribute cocaine (Middle District of Florida)
Sentence: Life imprisonment (Feb. 11, 1994)
Commutation Grant: Prison sentence commuted to expire on December 18, 2016.
- Herbert Lee Christopher, Jr. – Cordele, GA
Offense: Conspiracy to possess with intent to distribute 50 grams or more of cocaine base (Middle District of Florida)
Sentence: Life imprisonment; 10 years’ supervised release (Oct. 4, 1991)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Jawariel Coffie – Hollywood, FL
Offense: Conspiracy to possess with intent to distribute cocaine base (Northern District of Florida)
Sentence: Life imprisonment; five years’ supervised release (Oct. 5, 1993)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Michael Reese Coffman – Milton, FL
Offense: Conspiracy to distribute and possession with intent to distribute 500 grams or more of a mixture and substance containing methamphetamine (Northern District of Florida)
Sentence: Life imprisonment; 10 years’ supervised release (Jul. 21, 2005)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Oscar Cole, Jr. – Bessemer, AL
Offense: Possession with intent to distribute fifty (50) grams or more of a mixture and substance containing cocaine base and cocaine hydrochloride (Northern District of Alabama)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (Sep. 21, 2006)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Alex Contreras – Anchorage, AK
Offense: Drug conspiracy; distribution of a controlled substance (four counts); possession with intent to distribute a controlled substance (four counts); using, carrying, possessing firearm during drug trafficking crime (three counts) (District of Alaska)
Sentence: 481 months’ imprisonment; five years’ supervised release (Jul. 11, 2002); prison sentence amended to 480 months’ imprisonment (May 27, 2008)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Eddie Lee Cooks – Monroe, LA
Offense: Conspiracy to distribute cocaine base; distribution of cocaine base (three counts) (Western District of Louisiana)
Sentence: Life imprisonment (May 24, 1994)
Commutation Grant: Prison sentence commuted to expire on December 18, 2016.
- Lelus Crawford – St. Louis, MO
Offense: Distribution of cocaine base (“crack”) (two counts); possession with intent to distribute cocaine base (“crack”) (Eastern District of Missouri)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (Jun. 15, 2007)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Dewayne Crompton – Bakersfield, CA
Offense: Possession with intent to distribute cocaine base (Western District of Wisconsin)
Sentence: Life imprisonment (May 28, 1993)
Commutation Grant: Prison sentence commuted to expire on December 18, 2016.
- Charles Frederick Cundiff – Altoona, FL
Offense: Conspiracy to possess with intent to distribute 1,000 kilograms or more of marijuana; attempt to possess with intent to distribute 1,000 kilograms or more of marijuana (Northern District of Florida)
Sentence: Life imprisonment (Jan. 8, 1992)
Commutation Grant: Prison sentence commuted to expire on December 18, 2016.
- Thomas Daniels – Philadelphia, PA
Offense: Distribution of cocaine; distribution of cocaine base ("crack cocaine") (Eastern District of Pennsylvania)
Sentence: Life imprisonment (Jun. 26, 1996)
Commutation Grant: Prison sentence commuted to expire on December 18, 2016.
- Joe Nathan Darby – Salters, SC
Offense: Possession with intent to distribute and distribution of five grams or more of crack cocaine (two counts); possession with intent to distribute and distribution of 50 grams or more of crack cocaine (District of South Carolina)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (May 25, 2006)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Alphonso Davis – Ridgeway, SC
Offense: Conspiracy to violate narcotic laws (crack) (Western District of North Carolina)
Sentence: Life imprisonment; 10 years’ supervised release (Feb. 12, 1996)
Commutation Grant: Prison sentence to expire on April 16, 2016.
- William Ervin Dekle – Lake City, FL
Offense: Conspiracy to import 1,000 kilograms or more of marijuana; conspiracy to possess with intent to distribute 1,000 kilograms or more of marijuana; importation of 100 kilograms of marijuana (four counts); possession with intent to distribute 100 kilograms of marijuana (four counts) (Northern District of Florida)
Sentence: Life imprisonment; 10 years’ supervised release; four years’ special parole (Jun. 7, 1991)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Dianne Demar -- St. Petersburg, FL
Offense: Conspiracy to distribute in excess of 100 grams of methamphetamine; possession with intent to distribute methamphetamine (two counts); unlawful manufacturing of methamphetamine (two counts); possession of a firearm during a drug trafficking crime (Northern District of Georgia)
Sentence: Life plus five years’ imprisonment; 10 years’ supervised release (Dec. 13, 1991)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Eric T. Downs – Mansfield, OH
Offense: Possession with intent to distribute cocaine base (Northern District of Ohio)
Sentence: Life imprisonment (July 18, 1996)
Commutation Grant: Prison sentence commuted to expire on December 18, 2016.
- Ernest R. Eads – Seneca, MO
Offense: 1. Conspiracy to distribute methamphetamine (Western District of Missouri
2. Felon in possession of firearms (Western District of Missouri)
Sentence: 1. Life imprisonment; 10 years’ supervised release (Mar. 7, 1997)
2. 12 months’ imprisonment (consecutive) (Mar. 7, 1997)
Commutation Grant: Prison sentences commuted to expire on April 16, 2016.
- Reginald Gerard Ennis – Mobile, AL
Offense: Conspiracy to possess with intent to distribute crack cocaine (Southern District of Alabama)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (Apr. 22, 2004)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Jimmy Lee Fields – Dundee, FL
Offense: Conspiracy to possess with intent to distribute cocaine and cocaine base (Middle District of Florida)
Sentence: Life imprisonment (Jan. 16, 1996)
Commutation Grant: Prison sentence commuted to expire on December 18, 2016.
- Pedro Figueroa – Philadelphia, PA
Offense: Conspiracy to distribute controlled substance; distribution of controlled substance, aiding and abetting (three counts); possession of controlled substance with intent to distribute, aiding and abetting (Eastern District of Pennsylvania)
Sentence: 240 months’ imprisonment; five years’ supervised release; $1,000 fine (Jul. 15, 2003)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Donald Lee Gill – Cincinnati, OH
Offense: Conspiracy to possess with intent to distribute crack cocaine; possession with intent to distribute crack cocaine and aiding and abetting; carrying firearm during a drug trafficking crime (Eastern District of Kentucky)
Sentence: Life imprisonment (Aug. 20, 1997)
Commutation Grant: Prison sentence commuted to expire on December 18, 2016.
- Calvin C. Gillings – Chicago, IL
Offense: Possession with intent to distribute cocaine base, “crack”; possession with intent to distribute cocaine (Southern District of Iowa)
Sentence: 360 months’ imprisonment; eight years’ supervised release (Jul. 18, 1997)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Glenn D. Gold – Clarksville, TN
Offense: Conspiracy to possess with intent to distribute cocaine and cocaine base; possession with intent to distribute cocaine and cocaine base; use of a firearm during and in relation to a drug trafficking crime; felon in possession of a firearm (Middle District of Tennessee)
Sentence: Life plus 60 months’ imprisonment; five years’ supervised release (Apr. 23, 1997)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Alberto Gonzalez – Philadelphia, PA
Offense: Conspiracy to distribute more than 500 grams of cocaine; distribution of 1,003 grams of cocaine (Eastern District of Pennsylvania)
Sentence: 262 months’ imprisonment; eight years’ supervised release (May 19, 2003)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Willie James Griffin, Jr. – Pensacola, FL
Offense: Conspiracy to possess with intent to distribute cocaine and cocaine base; possession with intent to distribute cocaine (Northern District of Florida)
Sentence: 252 months’ imprisonment; 10 years’ supervised release; $1,000 fine (Dec. 2, 1999); prison sentence amended to 240 months’ imprisonment (Apr. 14, 2008)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016 and balance of the fine remitted.
- Doyle Grimes, Jr. – Miami, FL
Offense: Conspiracy to possess with intent to distribute 50 grams or more of cocaine base; possession with intent to distribute a detectable amount of cocaine base; possession with intent to distribute five grams or more of cocaine base (Middle District of Florida)
Sentence: 292 months’ imprisonment; 10 years’ supervised release (Apr. 8, 2003); prison sentence amended to 240 months’ imprisonment (Dec. 5, 2014)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Kenneth Hamlin, Jr. – Pittsburgh, PA
Offense: Conspiracy to possess with intent to distribute and distribution of in excess of 50 grams of cocaine base, in excess of 100 grams of heroin, and a quantity of marijuana; possession with intent to distribute and distribution of in excess of 100 grams of heroin
(Western District of Pennsylvania)
Sentence: 360 months’ imprisonment; 10 years’ supervised release (Mar. 4, 1999)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Glenn A. Harris – Elizabeth City, NC
Offense: Distribution of more than five grams of cocaine base (crack) (Eastern District North Carolina)
Sentence: 188 months’ imprisonment; five years’ supervised release; $2,100 restitution (Aug. 8, 2005)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016, and balance of the restitution obligation remitted.
- Lisa Harris – Arcadia, FL
Offense: Possession with intent to distribute fifty grams or more of cocaine base, crack cocaine; conspiracy to possess with intent to distribute five grams or more of cocaine base, crack cocaine (Middle District of Florida)
Sentence: 235 months’ imprisonment; five years’ supervised release (Nov. 30, 2005)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Antorrian Adrionne Hawkins – Lilburn, GA
Offense: Felon in possession of a firearm; possession with intent to distribute cocaine; possession with intent to distribute cocaine base; possession of a firearm during a drug trafficking crime (Eastern District of Michigan)
Sentence: 300 months’ imprisonment; 10 years’ supervised release (Apr. 12, 2005)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Eugene L. Haywood – Peoria, IL
Offense: Conspiracy to distribute cocaine base (crack); possession of cocaine base (crack) (Central District of Illinois)
Sentence: Life imprisonment; 10 years’ supervised release (Jul. 12, 2002)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Jerome A. Jackson – Washington, DC
Offense: Conspiracy to distribute 50 grams or more of cocaine base: unlawful distribution of cocaine base (two counts) (District of Columbia)
Sentence: Life imprisonment; 10 years’ supervised release (Feb. 18, 1994)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Gloria Louise James – Fort Madison, IA
Offense: Conspiracy to distribute methamphetamine (Southern District of Iowa)
Sentence: 188 months’ imprisonment; five years’ supervised release (Feb. 9, 2004)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Angie Jenkins – Klamath Falls, OR
Offense: Conspiracy to manufacture methamphetamine; manufacture of methamphetamine; possession with intent to distribute methamphetamine (District of Oregon)
Sentence: 360 months’ imprisonment; five years’ supervised release (Sep. 22, 1998); prison sentence amended to 324 months’ imprisonment (Jan. 29, 2015)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Allen Johnson – Live Oak, FL
Offense: Distribution of five grams or more of cocaine base (Middle District of Florida)
Sentence: 188 months’ imprisonment; five years’ supervised release (Oct. 3, 2003)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Javon Tyrone Johnson – Saginaw, MI
Offense: Distribution of 50 grams or more of cocaine base (Eastern District of Michigan)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (Sep. 30, 2004)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Mario Alonzo Johnson – Stockton, CA
Offense: Possession with intent to distribute crack cocaine (Eastern District of California)
Sentence: 288 months’ imprisonment; five years’ supervised release (Jan. 20, 1999)
Commutation Grant: Prison sentence to expire on April 16, 2016.
- Tommy Lynn Johnson – Athens, TX
Offense: Conspiracy to manufacture, distribute and possess with intent to manufacture and distribute methamphetamine; conspiracy to possess a listed chemical knowing it will be used to manufacture a controlled substance; possession of a listed chemical with intent to manufacture a controlled substance (two counts); possession and distribution of a listed chemical with intent to manufacture a controlled substance (two counts); use, carrying and possession of a firearm in furtherance of a drug trafficking crime (two counts); possession of an unregistered firearm (Eastern District of Texas)
Sentence: 511 months’ imprisonment; five years’ supervised release (Jul. 21, 2003); prison sentence amended to 481 months’ imprisonment (Oct. 6, 2015)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Sharanda Purlette Jones – Terrell, TX
Offense: Conspiracy to distribute cocaine base (Northern District of Texas)
Sentence: Life imprisonment; five years’ supervised release (Nov. 10, 1999)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Ryan O’Neil Lansdowne – Haymarket, VA
Offense: Conspiracy to distribute 50 grams or more of cocaine base (Eastern District of Virginia)
Sentence: 292 months’ imprisonment; 10 years’ supervised release (Oct. 20, 2000); prison sentence amended to 262 months’ imprisonment (Apr. 28, 2009)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Chad Robert Latham – Tacoma, WA
Offense: Conspiracy to manufacture marijuana; manufacturing marijuana (Western District of Washington)
Sentence: 180 months’ imprisonment; five years’ supervised release (Jan. 18, 2006)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Jimmy Ewell Lee – Bonifay, FL
Offense: Conspiracy to distribute and possess with intent to distribute more than 50 grams of methamphetamine (actual) and more than 500 grams of a mixture and substance containing methamphetamine (Northern District of Florida)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (May 4, 2005)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Carlos Lopez – Lawrence, MA
Offense: Conspiracy to distribute cocaine base; distribution of cocaine base (four counts); possess and carry a firearm during a drug crime; possession of firearm by a prohibited person; possession of firearm with an obliterated serial number (District of New Hampshire)
Sentence: 300 months’ imprisonment; 10 years’ supervised release (May 14, 2003)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Kevin McDonald – Lawrenceville, NJ
Offense: Conspiracy to distribute cocaine base “crack” (Eastern District of Virginia)
Sentence: Life imprisonment (Oct. 17, 2005)
Commutation Grant: Prison sentence commuted to expire on December 18, 2016.
- Terry Dennard McNeair – Lexington, NC
Offense: Possess with intent to distribute cocaine base (crack) (Middle District of North Carolina)
Sentence: 360 months’ imprisonment; five years’ supervised release (Nov. 18, 1996)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Michael McRae – Wadesboro, NC
Offense: Conspiracy to possess with intent to distribute cocaine base (Western District of North Carolina)
Sentence: Life imprisonment; 10 years’ supervised release (May 22, 2006)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Juan Fernando Mendoza-Cardenas – Houston, TX
Offense: Conspiracy to possess with intent to distribute marijuana (Northern District of Georgia)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (Jan. 28, 2004)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Billy R. Mercer, Jr. – Slapout, AL
Offense: Possession with intent to distribute methamphetamine; use/carry firearm during and in relation to a drug trafficking crime (Middle District of Alabama)
Sentence: 292 months’ imprisonment; 72 months’ supervised release (May 24, 2006)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Alton D. Mills – Chicago, IL
Offense: Conspiracy to possess with intent to distribute and distribution of cocaine base and cocaine and conspiracy to use communication facilities in the commission of drug trafficking offenses; use of communication facility to possess with intent to distribute cocaine base (two counts); possession with intent to distribute cocaine base (Northern District of Illinois)
Sentence: Life imprisonment; (July 14, 1994)
Commutation Grant: Prison sentence commuted to expire on December 18, 2016.
- Alphonso Ravon Morrison – Lincolnton, NC
Offense: Conspiracy to possess with intent to distribute and distribute, a quantity of cocaine and cocaine base (Western District of North Carolina)
Sentence: Life imprisonment; 10 years’ supervised release (May 7, 2001)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Matthew Murphy, III – Moreno Valley, CA
Offense: Conspiracy to distribute and possess with intent to distribute in excess of five kilograms of cocaine (Western District of Pennsylvania)
Sentence: 360 months’ imprisonment; 10 years’ supervised release (Nov. 13, 1997)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Darnell Jamar Nash – Ardmore, OK
Offense: Drug conspiracy (Eastern District of Oklahoma)
Sentence: 264 months’ imprisonment; 10 years’ supervised release (Mar. 18, 2004)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016, and 10-year term of supervised release commuted to three years of supervised release.
- Eric L. Orington – Danville, IL
Offense: Possession with intent to distribute more than 50 grams of (crack) cocaine (Central District of Illinois)
Sentence: Life imprisonment; 10 years’ supervised release; $2,000 fine (Sep. 1, 1995)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Lynette Owens – Lehigh Acres, FL
Offense: Possession with intent to distribute five or more grams of cocaine base, “crack cocaine” (Middle District of Florida)
Sentence: 188 months’ imprisonment; four years’ supervised release (Jan. 22, 2007)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- David Padilla – Philadelphia, PA
Offense: Conspiracy; possession with intent to distribute cocaine; carrying a firearm during a drug trafficking crime (Eastern District of Pennsylvania)
Sentence: Life imprisonment plus 60 months’ imprisonment; 10 years’ supervised release (Nov. 18, 1997)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- LaShawn D. Patton – Cahokia, IL
Offense: Conspiracy to distribute cocaine and cocaine base; possession with intent to distribute cocaine; felon in possession of firearm; possession of a firearm in relation to a drug trafficking crime (Southern District of Illinois)
Sentence: 180 months’ imprisonment; eight years’ supervised release (Feb. 24, 2006)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016, and eight-year term of supervised release commuted to four years of supervised release.
- Donald Lamont Postell – Miami, FL
Offense: Conspiracy to possess with intent to distribute five kilograms of cocaine (Western District of North Carolina)
Sentence: 600 months’ imprisonment; 10 years’ supervised release; $20,000 fine (Feb. 1, 1989)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016, and balance of the fine remitted.
- Lalanda Price – Wellington, FL
Offense: Conspiracy to distribute and to possess with intent to distribute more than 50 grams of cocaine base; possession with intent to distribute more than 50 grams of cocaine base (Northern District of Florida)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (Nov. 29, 2004)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Lamar Roberson – Savannah, GA
Offense: Conspiracy; distribution of cocaine (two counts) (Southern District of Georgia)
Sentence: Life imprisonment; five years’ supervised release (Dec. 6, 1991)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Kenneth Cordell Robinson – Houston, TX
Offense: Distribution of cocaine base (Southern District of Texas)
Sentence: 262 months’ imprisonment; five years’ supervised release; $5,000 fine (Apr. 21, 2000)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Amador Rodriguez – Chicago, IL
Offense: Conspiracy to distribute cocaine (Northern District of Illinois)
Sentence: Life imprisonment; $25,000 fine (Apr. 24, 1991)
Commutation Grant: Prison sentence commuted to expire on December 18, 2016.
- Felix Roman, Jr. – Reading, PA
Offense: Possession of five grams or more of cocaine base “crack” with the intent to distribute; possession of marijuana with intent to distribute (Eastern District of Pennsylvania)
Sentence: 262 months’ imprisonment; 10 years’ supervised release (Apr. 15, 2003)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Angel Sanchez – Atlantic Beach, FL
Offense: Possession with intent to deliver five or more grams of cocaine (crack); possession of a firearm during or in relation to a drug trafficking crime; felon in possession of a firearm (Eastern District of Pennsylvania)
Sentence: 240 months’ imprisonment; eight years’ supervised release; $1,000 fine (Mar. 13, 2006)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016, and balance of the fine remitted.
- Timothy Bernard Sanchious – Richmond, VA
Offense: Possession with intent to distribute cocaine base, to wit: “crack” (Eastern District of Virginia)
Sentence: 204 months’ imprisonment; five years’ supervised release (Dec. 16, 2004)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Michael Santoyo – Saginaw, MI
Offense: Conspiracy to possess with intent to distribute cocaine; possession with intent to distribute cocaine (three counts) (Eastern District of Michigan)
Sentence: Life imprisonment; 20 years’ supervised release; $80,000 fine (May 24, 1993)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Wilbert L. Shoemaker – Tallulah, LA
Offense: Conspiracy to possess with intent to distribute cocaine base and marijuana (Western District of Louisiana)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (Feb. 2, 2004)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Marcus Stovall – Etowah, TN
Offense: Possession of cocaine base with intent to distribute (Eastern District of Tennessee)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (Oct. 21, 2002)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Daron Benjamin Swygert – Gaston, SC
Offense: Possessing with intent to distribute cocaine base (District of South Carolina)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (Apr. 13, 2001)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Billie Marie Taylor – Houston, TX
Offense: Did knowingly and willfully conspire, combine, confederate and agree together, with each other, and with other persons, to manufacture methamphetamine; did knowingly and intentionally possess a listed chemical, namely ephedrine, with intent to manufacture methamphetamine; did knowingly use and carry a firearm, namely, a 12 gauge Harrington and Richardson, Inc. shotgun, serial number AX492667, during and in relation to a drug trafficking crime for which the defendant may be prosecuted in a court of the United States, namely, conspiracy to manufacture methamphetamine; did knowingly possess a firearm, namely, a 12 gauge Harrington and Richardson, Inc. shotgun, serial number AX492667, with a barrel length of less than 18 inches and a weapon made from a shotgun with an overall length of less than 26 inches, and such firearm was not registered to the defendant in the National Firearms Registration and Transfer Record (Eastern District of Texas)
Sentence: 412 months’ imprisonment; five years’ supervised release (Feb. 28, 1992); prison sentence amended to 355 months’ imprisonment (Jul. 15, 2015)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Eric Desmond Thomas – Houston, TX
Offense: Conspiracy to possess with intent to distribute cocaine; possession with intent to distribute cocaine base (Southern District of Texas)
Sentence: Life imprisonment; 10 years’ supervised release; $20,000 fine (Sep. 26, 1996)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016, and balance of the fine remitted.
- Raymond Allen Thomas – Fairbanks, AK
Offense: Possession of controlled substance with intent to distribute (District of Alaska)
Sentence: 265 months’ imprisonment; eight years’ supervised release (Feb. 7, 2005); prison sentence amended to 216 months’ imprisonment (Mar. 4, 2015)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Bruce Lamar Thompson – Dalton, GA
Offense: Conspiracy to possess with the intent to distribute in excess of 500 grams of methamphetamine after sustaining a prior felony drug conviction (Northern District of Georgia)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (Jul. 30, 2004)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Keith Demond Thompson – Eastpointe, MI
Offense: Distribution of five grams of more of cocaine base (two counts) (Eastern District of Michigan)
Sentence: 188 months’ imprisonment; eight years’ supervised release (May 24, 2006)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Otis Lee Thompson, Jr. – Houston, TX
Offense: Possession with intent to distribute five grams or more of cocaine base; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm by a convicted felon; possession with intent to distribute codeine (Southern District of Texas)
Sentence: 195 months’ imprisonment; eight years’ supervised release (Dec. 6, 2005); prison sentence amended to 180 months’ imprisonment (May 20, 2008)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Charles Lee Torian – South Boston, VA
Offense: Conspiracy to possess with intent to distribute more than 50 grams of cocaine base; possess with intent to distribute more than five grams of cocaine base (two counts); possess with intent to distribute more than 50 grams of cocaine base (Western District of Virginia)
Sentence: 300 months’ imprisonment; five years’ supervised release (Apr. 19, 2002)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Maurice Junior Turpin – Lynchburg, VA
Offense: Conspiracy to distribute 50 grams or more of cocaine base (Western District of Virginia)
Sentence: 240 months’ imprisonment; 10 years’ supervised release; $500.00 fine (Jul. 19, 2007)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Tommie Sand Tyree – Birmingham, AL
Offense: Distribution of 50 grams or more of “crack” cocaine (Northern District of Alabama)
Sentence: Life imprisonment; 96 months’ supervised release (Feb. 7, 2007)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Alfonzo Samuel Wallace – Lake Worth, FL
Offense: Conspiracy to distribute cocaine base; possession of cocaine base with intent to distribute, distribution and manufacturing of cocaine base (three counts); possession of cocaine (Southern District of Florida)
Sentence: Life imprisonment; 10 years’ supervised release (Oct. 23, 1997)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- John Thomas Watters – Midlothian, TX
Offense: Conspiracy to possess with intent to distribute controlled substance (two counts); maintaining drug involved premises; felon in possession of firearms (Northern District of Oklahoma)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (May 26, 2006) Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Monica Ann White – Rock Island, IL
Offense: Conspiracy to distribute cocaine base (“crack”); possess with intent to distribute cocaine base (“crack”); distribute cocaine base (“crack”) (Southern District of Iowa)
Sentence: Life imprisonment; 10 years’ supervised release (Nov. 17, 1998)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
- Shelton L. Williams – Galveston, TX
Offense: Conspiracy to possess with intent to distribute 50 grams or more of crack cocaine; possession with intent to distribute 50 grams or more of crack cocaine (Southern District of Texas)
Sentence: Life imprisonment; 10 years’ supervised release (May 1, 1997)
Commutation Grant: Prison sentence commuted to expire on April 16, 2016.
The President granted pardons to the following two individuals:
- Jon Dylan Girard – Centerville, OH
Offense: Making counterfeit obligations (Southern District of Ohio)
Sentence: Three years' probation, with the special condition of six months' home confinement (Nov. 7, 2002).
- Melody Eileen Homa, fka Melody Eileen Childress – New Kent, VA
Offense: Aiding and abetting bank fraud (Eastern District of Virginia)
Sentence: Thirty days’ home detention; three years’ supervised release conditioned on performance of 200 hours of community service (Dec. 16, 1991).
Pottawattamie County Man Sentenced to Prison and Fined $15,000 for Filing a False Federal Tax ReturnRead the Press Release
COUNCIL BLUFFS, IA – On December 17, 2015, Craig A. Tripp, 62, of Avoca, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to three months imprisonment and fined $15,000 for filing a false 2009 tax return, announced Acting United States Attorney Kevin E. VanderSchel. In addition, Tripp was ordered to serve one year of supervised release following his prison term. According to the plea agreement, Tripp agreed to pay his tax liability, in an amount to be determined by the Internal Revenue Service.
At the sentencing hearing, Chief Judge Jarvey found Tripp failed to provide for an accurate accounting of his profits derived from the sale of beer and other items from his business, the Blue Moon Bar and Grill in Avoca, Iowa. Chief Judge Jarvey also found Tripp had failed to report business profits on his 2007, 2008, and 2010 federal tax returns.
This matter was investigated by the Internal Revenue Service-Criminal Investigations and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Philadelphia Man Charged with Possession of Child PornographyRead the Press Release
Richard Schultz, 34, of Philadelphia, PA, was charged today by information with possession of child pornography, announced United States Attorney Zane David Memeger. According to the information, on or about July 2, 2015, Schultz possessed laptop computers, an Iphone, and a computer hard drive which contained more than 600 images of child pornography.
If convicted, Schultz faces a maximum possible sentence of 20 years in prison, a minimum five year term up to a lifetime of supervised release, a possible fine, a $100 special assessment, restitution, and forfeiture.
The case was investigated by the Federal Bureau of Investigation (FBI), and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.