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Tuesday 3 November 2015
Naples Man Sentenced to 10 Years for Possession and Distribution of Child PornographyRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Michael Eugene Read (60) to 10 years in federal prison for possessing and distributing child pornography. He pleaded guilty on July 28, 2015.
According to court documents, on October 27, 2014, an agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted an online investigation into individuals who were using peer-to-peer software to share child pornography files. The agent connected with Read’s computer and downloaded four videos depicting child pornography.
On January 30, 2015, agents executed a search warrant at Read’s residence. Subsequent forensic analyses of his external hard drive and computer media revealed a collection of more than 25,000 images depicting child pornography. During an interview with agents, Read admitted to searching for and downloading hundreds of images and videos of child pornography from the Internet over the past several years. He estimated that he had approximately 500 GB of child pornography stored on his hard drive.
“Every investigation against a child predator is disturbing, but this case involved one of the largest amounts of child pornography we have seen in the Fort Myers region, making it an especially important investigation,” said Susan L. McCormick, special agent in charge of HSI Tampa.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
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.
Moving Company Owner Pleads Guilty to Bait-And-Switch SchemeRead the Press Release
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UPDATE
Following court rulings, the defendant's original conviction and sentence were vacated. Thereafter, Massaro pleaded guilty to conspiracy, money laundering and failure to return household goods in connection with defrauding 23 victims (instead of the original 52) of approximately $28,460. He was sentenced to two years of probation, with the first eight months to be served in home detention.
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BOSTON – The owner of a South Florida moving company pleaded guilty today in U.S. District Court in Boston in connection with a scheme that defrauded over $112,000 from 52 victims.
Louis Massaro, 34, of Scottsdale, Ariz. and Pompano Beach, Fla. pleaded guilty to an Information charging him with one count each of conspiracy to commit wire fraud, money laundering and failure to return household goods. U.S. District Judge Rya W. Zobel scheduled sentencing for Feb. 9, 2016.
Massaro owned and operated Moving and Storage Inc., which did business as Neighbors Moving and Storage (NM&S). Although Massaro advertised as a mover of household goods, he operated NM&S as a broker of such services – taking jobs that would later be passed on to other carriers without disclosing that fact to the clients. One of the companies to which Massaro passed on contracts was an interstate carrier of household goods based in Massachusetts.
From approximately August 2010 to October 2012, Massaro and his co-conspirators operated a “bait-and-switch” operation in which Massaro, through NM&S, would provide low-ball estimates for moving household goods and falsely tell customers that upon payment of a deposit and a “binding” fee, the price would be guaranteed. Customers that contracted with NM&S were never told that the actual move would be completed by another carrier.
After customers made the initial payments, Massaro and his co-conspirators (the actual carrier) would obtain additional money from them in several ways. For example, once the 7-day cancellation period had passed, employees of NM&S would call the customers for a so-called “Quality Assurance Check.” While discussing the items to be moved, NM&S employees, under Massaro’s direction, would indicate that there were more items being moved than originally quoted and raise the quoted price. Customers were forced to elect between cancelling the contract and losing their deposit fees, and paying the higher amount.
Once Massaro’s co-conspirators arrived to conduct the move, the drivers would inform customers that there was more weight to be moved than was included in the binding quote, even in those instances where the price had already been increased during the “Quality Assurance Check.” At that point, the price of the move would increase by thousands of dollars – sometimes even doubling or tripling from the quoted estimate, and drivers were directed not to deliver any goods unless and until all money was collected. When a customer refused to pay the inflated price, they were informed that their household goods would be placed in storage, that they would have to pay before their goods would be delivered, and that they would be billed an additional amount of money for storage fees and re-delivery, or, alternatively, that their goods would be sold at auction. As a result of Massaro’s criminal scheme, victims lost $112,650 over the 26-month period.
The charge of conspiracy to commit wire fraud provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of money laundering provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. The charge of failure to return household goods provides a sentence of no greater than two years in prison, a $250,000 fine, and one year of supervised release. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Theodore L. Doherty, III, Special Agent in Charge of the U.S. Department of Transportation, Office of Inspector General, Office of Investigations; and Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, New York Regional Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Jordi de Llano of Ortiz’s Major Crimes Unit.
Mingo County man pleads guilty to lying on form when purchasing a firearmRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that Gene Autry Brinager, Jr., 52, of Delbarton, Mingo County, West Virginia pleaded guilty today in federal court in Charleston to lying on a form when purchasing a firearm from a federally licensed firearms dealer. In April of 2010, Brinager purchased two firearms from Williamson Gun and Archery, a federally licensed firearms dealer in Williamson, and he filled out a Department of Justice form required for anyone who purchases a firearm from a federally licensed dealer. On that form, Brinager falsely stated that he was not an unlawful user of, or addicted to a depressant, stimulant, narcotic drug, or any other controlled substance. At the time he filled out the form, Brinager knew that he was an unlawful user of and addicted to opiate pills, a controlled substance and a narcotic. Brinager faces up to five years in federal prison when he is sentenced on February 4, 2016.
This case was investigated by the West Virginia State Police. The prosecution is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
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Michigan Man Charged with Wire Fraud Conspiracy for Operating $6.8 Million Internet Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – A criminal indictment was unsealed today in federal court charging Troy Barnes, 53, of Riverview, Michigan, with wire fraud conspiracy and wire fraud, for operating a $6.8 million Internet Ponzi scheme that defrauded more than 10,000 investor victims worldwide, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Barnes’ conspirator, Kristine Louise Johnson, of Aurora, Colorado, pleaded guilty in June 2015 to wire fraud conspiracy for her role in the scheme.
Matthew Quinn, Assistant Special Agent in Charge of the United States Secret Service, Charlotte Field Division joins U.S. Attorney Rose in making today’s announcement.
According to filed court documents, Barnes was the owner of “Work with Troy Barnes, Inc.” (WWTB), which did business over the Internet under the name of “The Active Community” (TAC). Barnes was the President and Marketing Director of WWTB responsible for promoting the online scheme. Johnson served as TAC’s Chief Financial Officer, and managed TAC’s day-to-day operations, including the company’s bank accounts. Filed court documents indicate from about April 2014 to February 2015, Barnes induced victims to invest money in TAC, claiming “Achieve is the answer to all of our prayers…” and falsely promising investors would receive a bogus 700% return on their investment. Barnes also told his victims they could make as much money as they wanted claiming the investment was “never-ending,” when, in fact, TAC operated solely as a pyramid scheme and initial investors were paid with later victims’ money. Barnes also falsely touted TAC as a “lifetime income plan,” with “limitless returns, even though by August 2014, Barnes and Johnson had discussed TAC’s inevitable shortfall and knew that TAC did not have sufficient funds to cover weekly payouts to investors, much less operating expenses.
According to court filings, as the scheme grew in size and scope, Barnes and his conspirators concealed the true nature of the scheme through multiple misrepresentations. According to court records, when the conspirators became concerned that the use of the term “investment” would draw scrutiny from regulators, they instructed victim-investors that “We ARE NOT an INVESTMENT program, please don’t use that term when you speak or post about our re-purchase strategy.” Even when TAC was unable to operate because their payment processor concluded that TAC was indeed operating a Ponzi scheme and ceased doing business with the company, Barnes and his conspirators lied to victims, falsely stating that “The only reason that [TAC] is not paying out today is that our processor can’t handle the volume of money we are paying our members.”
According to court records, in order to sustain the scheme, Barnes and his conspirators encouraged investors to “re-purchase” positions in the matrix, thereby reducing the amount of money needed to pay out to early investors and enabling the fraudsters to prolong the scheme. As indicated in court documents, the investment scheme began to crumble when payment processors stopped processing the Ponzi payments to victim-investors. By the time the scheme collapsed in February 2015, the conspirators had defrauded over 10,000 investors in the Charlotte-area and worldwide, and owed victim-investors at least $51 million in purported investment returns, yet only had available approximately $2.6 million. According to court records, over the course of the scheme, Barnes used over $140,000 of the victims’ money for his own enrichment.
Barnes had his initial appearance today and was released on bond. Johnson’s sentencing hearing has been set for November 19, 2015, before U.S. District Judge Max O. Cogburn, Jr.
The case was investigated by the U.S. Secret Service. In making today’s announcement, U.S. Attorney Rose thanked the Denver Regional Office of the Securities and Exchange Commission for its assistance with the case.
Assistant U.S. Attorney Corey F. Ellis is in charge of the prosecution.
Mexican national arrested in Vinton pleads guilty to reentering the United States illegallyRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a Mexican national who was arrested in Vinton, La., pleaded guilty last week to charges that he reentered the United States multiple times without obtaining permission.
Luis Alberto Roblero-Escalante, 25, of Mexico, pleaded guilty Friday before U.S. District Judge Patricia Minaldi to one count of illegal reentry of a deported alien. According to the guilty plea, Vinton police found the defendant walking along Interstate 10 on June 10, 2015. After talking to police, he admitted he was a Mexican national. It was later discovered that Roblero-Escalante was previously removed from the United States on January 9, 2009, March 15, 2011, May 19, 2011 and January 13, 2015.
Roblero-Escalante faces 10 years in prison, three years of supervised release and a $250,000 fine. A sentencing date of February 4, 2015 was set.
Homeland Security Investigations-U.S. Border Patrol and the Vinton Police Department conducted the investigation. Assistant U.S. Attorney Dominic A. Rossetti is prosecuting the case.
Mastermind of $400,000 Federal Benefit Fraud Scheme SentencedRead the Press Release
Memphis, TN – The main conspirator in a lucrative federal benefit fraud scheme that defrauded the government of $400,000 has been sentenced to 27 months in prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
According to the indictment, Ray Chism III defrauded the government by purchasing Supplemental Nutrition Assistance Program (SNAP) benefits from recipients for cash in amounts less than the face value of the benefits. He would then redeem the benefits at full monetary value.
From October 2011 to December 2013, Chism recruited multiple SNAP recipients willing to sell their allotted benefits for amounts less than face value. Chism subsequently redeemed the benefits through Maxi Foods, a grocery store owned by Chism’s brother, Remark Chism, for full monetary value. In October, Remark Chism was sentenced to 37 months imprisonment for masterminding a separate $2.8 million federal benefit fraud scheme.
SNAP (formerly known as Food Stamps) is a program designed to help low- and middle-income families purchase food. A SNAP beneficiary is provided a designated amount of funding each month via a rechargeable Electronic Benefits Transfer (EBT) card. Cardholders are able to use the allotted funding to purchase eligible food items at authorized retailers. Maxi Foods possessed a SNAP EBT card system, enabling SNAP beneficiaries to pay for eligible food items with their EBT card.
Chism also masterminded a scheme to defraud the Child Care Certificate Program, which provides federal funding to assist underprivileged families with child care costs, from October 2011 to December 2013. Chism paid cash to parents who qualified for Certificate Program benefits in exchange for use of their child care certificates. After acquiring the information, Chism would falsely report the children’s attendance to his daycare center, Helping Hands Enrichment Center, and receive reimbursement for care. Chism also provided non-qualifying parents with false employment verification, which qualified them for the Certificate Program.
In July 2015, Chism pled guilty to one count of conspiracy to commit SNAP benefit fraud and one count of conspiracy to commit child care benefit fraud.
On Tuesday, November 3rd, U.S. District Judge John T. Fowlkes Jr. sentenced Chism to 27 months imprisonment. Chism was also ordered to pay $200,000 in restitution.
This investigation was conducted by the United States Department of Agriculture Office of the Inspector General; United States Secret Service; United States Marshals Service; Memphis Police Department – Organized Crime Unit; and the Tennessee Department of Human Services.
Assistant U.S. Attorneys Larry Laurenzi and Debra Ireland prosecuted the case on the government’s behalf.
Mastermind of Online Counterfeit Card Retail Shop Sentenced to More Than Six Years in PrisonRead the Press Release
Fakeplastic.net Responsible for More than $30 Million in Fraud
NEWARK, N.J. – The creator and administrator of fakeplastic.net, a one-stop online shop selling counterfeit credit and debit cards, or “payment” cards, and holographic overlays used by criminals to create fake driver’s licenses, was sentenced today to 78 months in prison, U.S. Attorney Paul J. Fishman announced.
Sean Roberson, 40, of Palm Bay, Florida, previously pleaded guilty before U.S. Magistrate Judge James B. Clark III to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to commit fraud and related activity in connection with authentication features. U.S. District Judge Jose L. Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
The fakeplastic.net website was a one-stop online shop operated by Roberson and used by criminals across the country to purchase customized counterfeit credit and debit cards used for unauthorized transactions with stolen payment card data, and holographic overlays used to make fake driver’s licenses.
During his guilty plea proceeding, Roberson admitted he began selling counterfeit cards and related items as early as April 2011 and launched the fakeplastic website in June 2012. Roberson owned and operated the website with the assistance of Vinicio Gonzalez and Hugo Rebaza. Roberson admitted that he and his conspirators fulfilled orders for approximately 69,000 counterfeit payment cards, more than 35,000 holographic stickers used to make counterfeit cards appear more legitimate and more than 30,000 state identification card holographic overlays. The orders – more than 3,600 parcels – were shipped through the U.S. mail.
Law enforcement estimates the losses associated with just the counterfeit payment cards trafficked by Roberson and his conspirators at more than $30 million. During his guilty plea, Roberson admitted he personally made more than $1.7 million from the scheme.
The fakeplastic website was used by various groups of criminals across the country often referred to as “carding” or “cash out” crews. These crews bought stolen payment card numbers and related information – referred to as “track data” or “dumps” – which typically appear on the magnetic stripe on the back of legitimate payment cards. Illegal vendors of that information usually get it through hacking or skimming operations involving the installation of specialized equipment at ATM locations or point-of-sale terminals. The stolen data was ultimately put on a counterfeit payment cards, purchased from Roberson, and used to make unauthorized transactions.
In addition to the prison term, Judge Linares ordered Roberson to serve five years of supervised release and pay restitution of $3,578,996.52. As part of his plea agreement, Roberson forfeited his Bitcoin, a house in Palm Bay, a 2013 Yamaha motorboat and trailer, and a 2008 Hummer.
Gonzalez and Rebaza have both pleaded guilty to related charges in the Western District of North Carolina and were sentenced to 36 and 12 months in prison, respectively.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, for the investigation leading to today’s sentencing.
The Computer Crimes and Intellectual Property Section (CCIPS) of the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the Western District of North Carolina have been partners in the prosecution.
The government is represented by Assistant U.S. Attorney Andrew S. Pak of the Computer Hacking and Intellectual Property Section and Barbara Ward of the office’s Asset Forfeiture and money laundering unit.
Defense counsel: Assistant Federal Public Defender Patrick McMahon Esq., Newark
Marion County, WV man charged with unlawful possession of firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal grand jury returned an indictment today charging Antonio Cottingham, 28, of Fairmont, West Virginia, with unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Cottingham was previously convicted in the Northern District of West Virginia of the felony offenses of “Distribution of Crack Cocaine” and “Escape from Custody.” He was also previously convicted in state court in West Virginia of the felony offense of “Conspiracy to Commit a Felony Against the Sate.” As a result of these convictions, he is prohibited from possessing firearms. He was allegedly discovered in possession of a .44 caliber revolver in August 2015 in Fairmont, West Virginia.
Cottingham is charged with one count of “Felon in Possession of a Firearm.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David Perri is prosecuting the case on behalf of the government. The Fairmont, West Virginia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives are leading the investigation.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Manchester Man Pleads Guilty to Firearm ChargeRead the Press Release
CONCORD, NEW HAMPSHIRE - Nathan Tremblay, 22, of Manchester, New Hampshire, appeared in United States District Court today and entered a guilty plea to one count of possession of a firearm by a prohibited person in violation of federal law, announced Acting United States Attorney Donald Feith.
On August 10, 2014, Tremblay was a passenger in a vehicle that was subject to a traffic stop by the Concord Police Department. The defendant was carrying a Taurus handgun and 34 rounds of Hornady 9 caliber ammunition. Concord Police also seized a backpack belonging to the defendant, and after searching it with the defendant’s consent, found three small plastic baggies containing the controlled substance marijuana. The defendant was a regular user of the controlled substance marijuana at the time he possessed the firearm. Tremblay faces a maximum sentence of ten years in prison and criminal fines of up to $250,000. Sentencing is presently scheduled for February 10, 2016.
“The combination of firearms and drug use presents a particularly dangerous potential harm to the public,” stated Acting United States Attorney Donald Feith. “Our office will continue to combat the threat posed when unlawful users of controlled substances possess firearms.”
This case was investigated by the Concord Police Department and the Bureau of Alcohol Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant United States Attorney Georgiana L. Konesky.
Las Cruces Man Sentenced to Federal Prison for Narcotics Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Eddie Gallardo, 32, of Las Cruces, N.M., was sentenced this morning in Las Cruces federal court to 78 months in prison followed by four years of supervised release for his conviction on cocaine and methamphetamine trafficking charges.
Gallardo was arrested on May 22, 2014, on a criminal complaint charging him with methamphetamine trafficking and being a felon in possession of a firearm. The complaint alleged that on May 13, 2014, Gallardo sold a handgun and methamphetamine to an undercover FBI agent. At the time, Gallardo was prohibited from possessing firearms or ammunition because he previously had been convicted of a drug trafficking offense.
Gallardo subsequently was charged in a seven-count indictment filed in Aug. 2014 with cocaine distribution on Aug. 7, 2013, Aug. 22, 2013 and Oct. 30,2013; methamphetamine distribution on Aug. 22, 2013, April 14, 2014 and May 13, 2014; and being a felon in possession of a firearm on May 13, 2014.
On Jan. 6, 2015, Gallardo pled guilty to the six drug trafficking crimes charged in Counts 1 through 6 of the indictment. In entering his guilty plea, Gallardo admitted selling cocaine and methamphetamine on six occasions to a law enforcement officer who was acting in an undercover capacity between Aug. 7, 2013 and May 13, 2014.
Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case. This is one of many cases generated by a 15-month investigation by the FBI’s Las Cruces Southwest Border/Safe Streets Task Force and the New Mexico HIDTA Regional Interagency Drug Task Force (Metro Narcotics Task Force). The investigation, which concluded in Aug. 2014, initially targeted methamphetamine manufacturers and traffickers operating out of Doña Ana County, but expanded to include individuals trafficking in other drugs and using firearms to facilitate their drug trafficking crimes. The investigation identified sources of drug supply in Los Angeles, Calif., Tucson, Ariz., and El Paso, Texas, who were supplying drug traffickers in southern New Mexico with high-grade methamphetamine, and led to the filing of criminal charges against 75 individuals, including 42 federal defendants and 33 state defendants. Law enforcement officers seized more than 29 pounds of methamphetamine, 37 pounds of cocaine, 4.5 ounces of heroin, 30 pounds of marijuana, 74 firearms and 17 vehicles during the course of the investigation.
Lake Charles man pleads guilty to attempted possession of child pornographyRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a Lake Charles man pleaded guilty last week to attempting to possess child pornography.
Jerry Junior Logg, 26, of Lake Charles, pleaded guilty Friday before U.S. District Judge Patricia Minaldi to one count of attempted possession of child pornography. According to the guilty plea, Logg communicated in October of 2012 with a minor female from New Jersey using an internet chat service. Logg pretended to be two different young people online and attempted to convince the minor to send sexually explicit images of herself.
Logg faces up to 10 years in prison, five years to life supervised release and a $250,000 fine. He is also required to register as a sex offender. A sentencing date of February 4, 2016 was set.
The FBI investigated the case. Assistant U.S. Attorney Myers P. Namie is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov.
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Lake Charles FBI office number is (337) 433-6353.
La Detención en Bakersfield Lleva una Sentencia de Prisión de 11 Años por Tráfico de MetanfetaminaRead the Press Release
FRESNO, California – Raúl Canchola Farías, 40, residente de Pacoima, ha sido sentenciado hoy por el Juez Federal Anthony W. Ishii a 11 años y tres meses de prisión por posesión con el intento de distribuir metanfetamina, anunció el Procurador de los Estados Unidos Benjamín B. Wagner.
Según los documentos del tribunal, Farías fue arrestado el 5 de noviembre del 2013, después de que su vehículo fuera detenido por un Oficial de la Patrulla de Carretera en la Autopista 99 en Bakersfield y fueron encontradas más de 21 libras de metanfetamina ocultadas en el vehículo.
Este caso ha sido el resultado de una investigación llevada a cabo por la Agencia Antidrogas de Estados Unidos (Drug Enforcement Administration) o DEA y la Patrulla de Carretera de California. El Procurador Auxiliar de los Estados Unidos Brian K. Delaney procesó el caso.
La Detención En Bakersfield Lleva Una Sentencia De Prisión De 11 Años Por Tráfico De MetanfetaminaRead the Press Release
FRESNO, California – Raúl Canchola Farías, 40, residente de Pacoima, ha sido sentenciado hoy por el Juez del Distrito de Estados Unidos Anthony W. Ishii a 11 años y tres meses de prisión por posesión con el intento de distribuir metanfetamina, anunció el Procurador de los Estados Unidos Benjamín B. Wagner.
Según los documentos del tribunal, Farías fue arrestado el 5 de noviembre del 2013, después de que su coche fuera detenido por un Oficial de la Patrulla de Carretera en la Autopista 99 en Bakersfield y fueron encontradas más de 21 libras de metanfetamina ocultadas en el vehículo.
Este caso ha sido el resultado de una investigación llevada a cabo por la Agencia Antidrogas de Estados Unidos (Drug Enforcement Administration) o DEA y la Patrulla de Carretera de California. El Procurador Auxiliar de los Estados Unidos Brian K. Delaney procesó el caso.
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Kilgore Pleads Guilty to Three Counts of Conspiracy to Commit Health Care FraudRead the Press Release
SALT LAKE CITY – Jacob J. Kilgore, a former owner of a Salt Lake City durable medical equipment company, pleaded guilty in U.S. District Court late Monday afternoon to three counts of conspiracy to commit health care fraud as a part of Medicare fraud scheme involving power wheelchairs. The plea agreement includes a stipulated sentence of 60 months in federal prison, subject to acceptance by the court.
U.S. Attorney John W. Huber of the District of Utah, FBI Special Agent in Charge Eric K. Barnhart of the FBI’s Salt Lake City Field Office, Special Agent in Charge Gerald Roy of the U.S. Department of Health and Human Services Office of Inspector General; and Special Agent in Charge Janice M. Flores of the Defense Criminal Investigative Service’s (DCIS) Southwest Field Office announced the plea agreement.
Kilgore pleaded guilty to a three-count Felony Information filed Monday afternoon.
Kilgore, 36, of Fruit Heights, was the co-owner of and employed as the vice president, and later, president of Orbit Medical, a Utah- and Indiana-based national supplier of durable medical equipment that specialized in power wheelchairs. Orbit maintained three Utah offices in the Salt Lake City area. Kilgore acted as sales manager for Orbit’s western region sales territory which included offices in Utah, Arizona, Nevada, Idaho, Washington, and Oregon.
“In the United States Attorney’s Office, we take our professional obligations seriously and will not trade our integrity for any case. While upholding the highest ethical standards, my office will aggressively root out white collar fraud and hold law breakers accountable for the damage caused by their greed-driven actions,” United States Attorney John W. Huber said today.
“Less than a month after the court rejected his motions claiming prosecutorial misconduct, Mr. Kilgore has accepted responsibility for a multi-million-dollar fraud scheme. On October 8, 2015, Chief Judge David Nuffer denied the defense motion to dismiss and to disqualify the prosecution team, finding that the prosecution had not deliberately intruded into privileged attorney-client communications. Today, the defendant has voluntarily agreed to a five-year prison sentence for his criminal conduct and has chosen to abandon any further challenge to the court’s ruling against him. This development speaks volumes as to the denied claims that federal prosecutors were acting outside their ethical obligations,” Huber said.
As a part of the plea agreement, Kilgore admitted that he knew that Medicare required the company to maintain supporting medical record documentation, including the prescription from the treating physician, which supported the medical necessity of the power wheelchair supplied to the beneficiary and billed to Medicare. He admitted knowing that Medicare could request the supporting medical record documentation of a claim submitted by Orbit for review, and, if the documentation did not meet Medicare’s requirements, the claim could be denied.
Kilgore admitted that while at Orbit, he instructed inside and outside sales representatives in taking paperwork received from physicians and making changes to the paperwork – including revising, altering, modifying or replacing – in order to make it appear that beneficiaries qualified for Medicare coverage of a power wheelchair under false and fraudulent pretenses. This process was referred to at times as “chiseling.” Kilgore admitted that while he was at Orbit, he had computer software installed on computers used by sales representatives. That software enabled sales representatives to electronically “chisel” documents received from physician offices to make it appear that Medicare requirements were met. This process caused the submission of false and fraudulent claims to Medicare. Throughout the conspiracy, Kilgore admitted he enforced a sales quota of 10 power wheelchairs per month and at times, terminated sales representatives for failing to meet the quota.
As a part of his plea to three counts of conspiracy to commit health care fraud, Kilgore admitted that he and three individuals identified as unindicted co-conspirators 1, 2, and 3 submitted false claims to Medicare for power wheelchairs. He admitted that from April 2008 to around July 2010, he and UC1 submitted claims under fraudulent pretenses from Orbit to Medicare for more than $500,000. From around October 2006 to around June 2011, he and UC2 caused Orbit to submit fraudulent claims to Medicare resulting in reimbursements from Medicare of more than $679,909. From around 2009 to around August 2010, Kilgore and UC3 caused Orbit to submit fraudulent claims to Medicare resulting in reimbursements of more than $200,000. From around October 2006 to around June 2011, Kilgore and other sales reps caused Orbit to submit claims to Medicare for power wheelchairs under false and fraudulent pretenses resulting in reimbursements to Orbit.
“This guilty plea is the result of the diligent work and collaborative efforts of several agencies. We will continue to work with our law enforcement partners to investigate those who attempt to cheat the federal health care programs,” said Gerald Roy, Special Agent in Charge of Health and Human Services Office of Inspector General.
"This plea highlights the commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of federal health care programs, including the Department of Defense health care program known as TRICARE," said Special Agent in Charge Janice M. Flores of the DCIS Southwest Field Office. "DCIS aggressively investigates health care providers that defraud the DoD to preserve American taxpayer dollars intended to care for our warfighters, their family members and military retirees."
As a part of the plea agreement, Kilgore agreed to pay restitution in the case, including for victims of relevant conduct. Parties to the criminal case will try to resolve the amount of restitution through a stipulated agreement. If an agreement is not reached, a restitution hearing will be scheduled. He also agreed to a forfeiture money judgment in an amount to be determined by the court at sentencing. Sentencing is set for Jan. 27, 2016, at 2 p.m.
Additionally, former Orbit sales representatives Morgan Workman of Farmington, Utah; David Evans of South Jordan, Utah; and Hunter Hartman of Ladera Ranch, Calif., have each pleaded guilty to conspiring to commit health care fraud, based on the same alleged scheme to defraud Medicare. Sentencing for the three will be in February.
Kansas Man Ordered to Federal Prison in Child Exploitation CaseRead the Press Release
HOUSTON – A 44-year-old Kansas man has been ordered to federal prison for transporting a minor across state lines with the intent to engage in criminal sexual activity, announced U.S. Attorney Kenneth Magidson. Paul Francis Grimm, of Goddard, Kansas, pleaded guilty Nov. 4, 2014.
Today, U.S. District Judge George C. Hanks Jr. ordered Grimm serve a total of 183 months in federal prison. 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. In handing down the sentence, Judge Hanks stated that the crime Grimm committed was cold, calculated and meticulously planned. He added that Grimm’s acts were selfish and not acceptable in society.
Grimm had been engaging in an online relationship with a 15-year-old female. He later made arrangements for the child to travel from Ohio to Houston where Grimm picked her up at the airport. He then transported her to Galveston where they boarded a cruise ship and spent several days cruising through the Caribbean.
Upon arrival back in Galveston, a Customs and Border Protection (CBP) officer noticed Grimm and the minor female did not have the same last name nor were they related. The subsequent FBI investigation revealed Grimm and the victim had been communicating online and via cell phone for quite some time. Grimm had even paid for the child’s phone.
Using a ruse, Grimm communicated to the minor’s mother that he wanted the victim to join him and his son, a supposed friend of the victim, on a cruise. He had proved the mother with his military identification and gave other assurances to her, at which time she allowed her daughter to travel to Houston to meet Grimm for the cruise.
Grimm and the victim travelled as a couple, shared a room and posed for photographs together on the cruise. Evidence of a sexual relationship between Grimm and the victim were found on computer devices.
Grimm was arrested on March 29, 2014. Following a detention hearing, the court heard the government’s evidence and ordered him into custody. While detained, Grimm allegedly called his ex-wife in an attempt to have one of his children destroy evidence in his home in Kansas. Authorities executed a search warrant at the residence and, as a result, a grand jury sitting in the Wichita Division of Kansas has returned an indictment on seven counts of production of child pornography. Those charges are still pending and he is considered innocent in that case unless and until proven guilty through due process of law.
The charges were the result of an investigation conducted by FBI with the assistance of CBP.
This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, 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."
KC Man Sentenced to 20 Years for Drug TraffickingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been sentenced in federal court for his role in a conspiracy to distribute methamphetamine and money laundering.
Jose Luis Ramirez, also known as “Guero,” 38, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs on Monday, Nov. 2, 2015, to 18 years in federal prison without parole, plus an additional two years for the revocation of his supervised release in another, unrelated case, for a total sentence of 20 years in federal prison without parole.
On May 1, 2015, Ramirez pleaded guilty to participating in a conspiracy to distribute 500 grams or more of methamphetamine from Jan. 1 to Nov. 27, 2012, and to participating in a conspiracy to engage in money laundering from April 27, 2012, to April 30, 2012.
Ramirez admitted that he supplied co-conspirators with methamphetamine to distribution. Ramirez also admitted that he packed $76,760 in shrink wrap and hid it in a secret compartment of a Ford Expedition, which he paid a co-conspirator to drive to California.
This case was prosecuted by Assistant U.S. Attorney Catherine Connelly. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Justice Department Sues South Dakota State Agency for Discrimination Against Native American Job Applicants at Pine Ridge ReservationRead the Press Release
The Justice Department today filed a lawsuit against the South Dakota Department of Social Services (DSS) alleging that at its Pine Ridge Reservation Office, the state agency repeatedly discriminated against Native American job applicants because of their race, in violation of Title VII of the Civil Rights Act of 1964.
The lawsuit, filed in the U.S. District Court for the District of South Dakota, alleges that in failing to select well-qualified Native American applicants for several positions in DSS’s Pine Ridge Reservation Office, the state agency engaged in a pattern or practice of discrimination and violated Title VII of the Civil Rights Act of 1964, a federal statute that prohibits employment discrimination on the basis of sex, race, color, national origin and religion.
“Federal law provides all Americans with equal opportunity to compete for jobs on a level playing field free from racial discrimination,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “When employers discriminate against qualified job applicants because of what they look like or where they come from, they violate both the values that shape our nation and the laws that govern it.”
According to the complaint, in October 2010, Cedric Goodman, a Native American with supervisory experience as a social worker, as well as several other well-qualified Native Americans, applied for an Employment Specialist position at DSS’s Pine Ridge Office. The complaint alleges that after interviewing Goodman and the other Native American candidates who met the employer’s objective job qualifications, DSS removed the vacancy and hired no one. The next day, however, DSS reopened the position and ultimately selected a white applicant with inferior qualifications and no similar work experience. The complaint alleges that DSS discriminated against Goodman and other similarly-situated Native American applicants based on their race.
In addition, the complaint alleges that denying Goodman’s application was part of a pattern or practice of race discrimination by DSS, where the agency repeatedly removed job postings and used subjective, arbitrary hiring practices to reject qualified Native American applicants for Specialist positions.
Over a two year period beginning in 2010, DSS posted 18 Specialist vacancies for its Pine Ridge Reservation Office. Even though the agency received nearly 40 percent of its applications from Native Americans, DSS hired 11 Whites and only one Native American, while removing six other openings entirely.
The lawsuit seeks declaratory and injunctive relief requiring DSS to implement employment policies, including fair applicant screening and interviewing practices, that prevent racial discrimination in hiring. The United States will also seek to obtain “make whole” relief, including monetary damages, for Goodman and other similarly situated individuals.
"The facts obtained during the investigation by the EEOC are disheartening," said Julianne Bowman, Chicago District Director. "We are pleased that the Department of Justice is filing a lawsuit to resolve the injustices uncovered."
Goodman originally filed a charge of race discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s Minneapolis Area Office, in the Chicago District, investigated the matter and found reasonable cause to believe that DSS discriminated against Goodman and a class of Native American applicants. After unsuccessful conciliation, the EEOC referred the matter to the Justice Department.
The Justice Department’s Civil Rights Division brought this lawsuit as part of a joint effort to enhance collaboration between the Justice Department and the EEOC in the vigorous enforcement of Title VII. Additional information about the division, including a copy of the complaint, can be found online on its website at www.justice.gov/crt.
U.S. v. S.D. DSS Complaint (146.11 KB)
Justice Department Announces Banque Bonhôte & Cie SA Reaches Resolution Under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Banque Bonhôte & Cie SA (Banque Bonhôte) has reached a resolution under the department’s Swiss Bank Program.
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreement signed today, Banque Bonhôte agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute this bank for tax-related criminal offenses.
Banque Bonhôte is a private bank established in 1815 in the City of Neuchâtel, Switzerland. It is a privately held stock company, and the majority of its share capital is owned by its management board and employees. Until 2002, Banque Bonhôte had a single office in Neuchâtel; since then, it has opened branches in Bienne, Geneva and Berne, Switzerland.
Banque Bonhôte’s cross-border banking business aided and assisted some U.S. clients in opening and maintaining undeclared accounts in Switzerland and concealing the assets and income the clients held in their accounts from the Internal Revenue Service (IRS). Banque Bonhôte knew, or should have known, that it was likely that certain U.S. taxpayers who maintained accounts at Banque Bonhôte were not complying with their U.S. tax reporting obligations.
Banque Bonhôte used a variety of means to assist U.S. clients in concealing the assets and income the clients held in their Bonhôte undeclared accounts, including opening and maintaining numbered accounts, as well as holding bank statements and other mail at Banque Bonhôte’s offices in Switzerland. Banque Bonhôte also opened accounts for U.S. taxpayers who had left UBS or Credit Suisse when these banks were being investigated by the department.
Private bankers, referred to as client relationship managers, served as Banque Bonhôte’s primary contact for accountholders at the bank. Client relationship managers aided or assisted U.S. clients to open and manage accounts that were undeclared and that were established and maintained in a manner designed to conceal the U.S. taxpayers’ ownership or beneficial interest in the accounts. Banque Bonhôte compensated client relationship managers, in part, based on the amount of business they generated for Banque Bonhôte.
Banque Bonhôte referred bank clients to Bonhôte Trust SA, a Swiss fiduciary and trust advisory firm located in Neuchâtel and acquired by Banque Bonhote in 2001. Bonhôte Trust provided assistance in setting up entities such as offshore companies and foundations, including sham entities, for clients including U.S. taxpayers and provided administrative services to those entities.
Through Bonhôte Trust, Banque Bonhôte created offshore foundations, corporations, trusts and similar entities organized in jurisdictions such as the British Virgin Islands and Nevis. In some instances, Banque Bonhôte structured a U.S.-related account that appeared as if it was held by a non-U.S. legal entity, such as an offshore corporation or trust, which aided and abetted the clients’ ability to conceal their undeclared accounts from the IRS. Banque Bonhôte also had accounts opened through external asset managers and maintained in the name of offshore structures, despite knowing that in at least some instances the beneficial owners of such accounts were U.S. persons. Banque Bonhôte knew or should have known that, at least in some instances, external asset managers opened and managed accounts at Banque Bonhôte in the name of a sham offshore structure that in reality held assets owned by a U.S. client.
Approximately 35 percent of Banque Bonhôte’s U.S.-related accounts were held in the name of offshore structures, and Banque Bonhôte accepted the use of IRS or substitute forms that falsely stated under penalties of perjury that sham entities beneficially owned the assets in the undeclared accounts.
Throughout its participation in the Swiss Bank Program, Banque Bonhôte committed to providing full cooperation to the U.S. government. Among other things, Banque Bonhôte described in detail the structure and operation of its U.S. business, including its cross-border business policies. Banque Bonhôte was able to disclose the identities of more than half of the beneficial owners of its U.S.-related accounts to the department and provided narrative summaries of other U.S.-related accounts for use in other ongoing and potential department investigations.
Since Aug. 1, 2008, Banque Bonhôte held and managed 63 U.S.-related accounts, including both declared and undeclared accounts, which had a peak of aggregated assets under management of $88.7 million. Banque Bonhôte will pay a penalty of $624,000.
While U.S. accountholders at Banque Bonhôte who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of this non-prosecution agreement, noncompliant U.S. accountholders at Banque Bonhôte must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanked the IRS, and in particular, IRS-Criminal Investigation and the IRS Large Business & International Division for their substantial assistance. Ciraolo also thanked Lisa L. Bellamy, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Senior Litigation Counsel Nanette L. Davis and Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Jury Convicts Houston Physician in Health Care Fraud ConspiracyRead the Press Release
HOUSTON – A federal jury sitting in Houston has returned guilty verdicts today against Dr. Enyibuaku Rita Uzoaga, 43, on six counts of health care fraud and one count of conspiracy to commit health care fraud, announced U.S. Attorney Kenneth Magidson. The jury deliberated for approximately four hours following a six-day trial.
Co-defendant Charles Harris, 55, pleaded guilty prior to trial.
At trial, the jury heard that from approximately 2006 through 2010, Uzoaga, Harris and others falsely billed Medicare and Medicaid for numerous, unnecessary vestibular diagnostic tests. Some patients were billed for hundreds of tests, some for more than a 1,000. The evidence at trial showed that the testing by Harris and his employees was either not performed, not medically necessary and/or not performed by licensed individuals.
Vestibular diagnostic testing is used to diagnose a person for vertigo or dizziness. After being diagnosed, patients usually undergo physical therapy, take medication or undergo surgery as treatment.
As a result of this unlawful scheme, Medicare and Medicaid were billed approximately $653,970 in submitted, fraudulent vestibular diagnostic claims. Medicare and Medicaid paid $389,285 on those claims.
Vestibular testing accounted for 23 percent of Uzoaga’s income from Medicare and Medicaid.
At trial, Uzoaga attempted to convince the jury that she was unaware of the false billings. The jury did not believe her story and found Uzoaga guilty as charged.
U.S. District Judge Ewing Werlein Jr. presided over the trial and has et sentencing for Feb. 29, 2015. At that time, Uzoaga faces up to 10 years in federal prison on each of the charges as well as a possible $250,000 fine.
Uzoaga was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of the investigative efforts of the Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services - Office of Inspector General, Office of Investigations and the FBI. Special Assistant U.S. Attorney Suzanne Bradley and Assistant U.S. Attorney Tina Ansari prosecuted the case.
Joplin Man Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was sentenced in federal court today for possessing child pornography.
Donald Eugene Ruddick, 39, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to six years in federal prison without parole. The court also ordered Ruddick to pay $2,500 in restitution to each of two victims. Following incarceration, Ruddick will serve a 15-year term of supervised release.
On June 4, 2015, Ruddick pleaded guilty to possessing child pornography. Ruddick admitted that he used a peer-to-peer file-sharing program to download child pornography over the Internet.
On Dec. 26, 2012, law enforcement officers identified Ruddick’s computer as sharing child pornography with other computers. Officers executed a search warrant at Ruddick’s residence and seized a desktop computer, a laptop computer and compact disks.
According to court documents, forensic examiners discovered a library of child pornography on Ruddick’s computers that included hundreds of images and hundreds of additional videos depicting children and toddlers being raped and sexually abused, many of which were in excess of five minutes in length. Ruddick possessed material depicting the sadistic and masochistic abuse of children, including the sexual violation of toddlers and children being forced to engage in sex with dogs and horses.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jacksonville Man Sentenced to More Than Seven Years for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Christopher Shawn Warnock (43, Jacksonville) to seven years and six months in federal prison for receiving child pornography over the Internet. Warnock was also ordered to serve a 15-year term of supervision, and to register as a sex offender, upon his release from prison. He has been in custody since his arrest on December 17, 2014.
According to court documents, on October 30, 2014, an agent with the FBI in Newark, New Jersey began an undercover online investigation to identify individuals who were using the Internet to share images and videos depicting child pornography. The agent made online contact with Warnock and was able to download 24 videos of child pornography from his computer. Further investigation traced the computer to Warnock’s residence in Jacksonville.
On December 17, 2014, law enforcement officers executed a federal search warrant at Warnock’s residence and seized his computer. Warnock told the agents that he searches online for child pornography using certain key terms, and that he enjoys watching others having sex with children. Forensic analyses of Warnock’s computer revealed that it contained at least 13 videos depicting the sexual abuse of young children. Logs of online conversations, in which Warnock had indicated his desire to exchange videos of child pornography with other Internet users, were also recovered.
This case was investigated by the Federal Bureau of Investigation in Newark and Jacksonville, and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
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 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.
Indianapolis man sentenced in North Vernon robbery and murder caseRead the Press Release
New Albany - United States Attorney Josh J. Minkler, announced today and Indianapolis man was sentenced for his role in the murder and robbery of Scoot D. Maxie a gun store owner near North Vernon, Indiana. Darryl A. Worthen, 25, was sentenced to 60 years in federal prison by U. S. District Judge Sarah Evans Barker at the federal courthouse in New Albany.
“This type of violence is something no family or community should have to face,” said Minkler. “Judge Evans Barker sent a loud and clear message that gun violence will not be tolerated in the Southern District of Indiana and those committing violent crime will be held accountable.”
On September 20, 2014, Darryl Worthen, his brother Dejuan Worthen and cousin Darion Harris traveled from Indianapolis to North Vernon to see what inventory was inside the Muscatatuck Outdoors Gun Shop and made plans to rob the owner. They drove back to Indianapolis only to return the following day to commit the robbery.
After returning to the gun store on September 21, 2014, one of the defendants disconnected a security camera inside the gun shop. During the robbery, Darryl Worthen shot and killed Maxey with a .22 caliber handgun then all the defendants stole a large quantity of firearms from the gun shop and returned to Indianapolis. Once home with the guns, the defendants sold and distributed many of the firearms and kept several for themselves.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Indiana State Police, Indianapolis Metropolitan Police Department, Jennings County Sheriff’s Department and the Jennings County Prosecutors Office.
“There is no place in our society for those who use violence to further their criminal aims, particularly when it costs the life of valued members of our families and communities,” said Donald Soranno, Special Agent in Charge of ATF’s Columbus Field Division. “ATF takes pride in working with our law enforcement partners at the federal, state, and local levels to bring those individuals who commit senseless acts of violence like this to justice and ensure that they cannot cause further harm.”
“Violent crime will not be tolerated in this community,” said Jennings County Prosecuting Attorney Brian Belding. “The individuals responsible should be punished to the fullest extent of the law. The decision to have these individuals charged federally was made after thoughtful consultation with the family members. My goal was that the individuals responsible for this heinous act serve the maximum sentence under the law. This was accomplished under the federal sentencing guidelines. As much as it would be appropriate to prosecute these crimes locally, it was not in the best interest of our community because Mr. Worthen received a harsher sentence in Federal Court. My heart goes out to Mr. Maxie’s family, friends, and loved ones.”
According to Assistant U.S. Attorneys Barry D. Glickman and William L. McCoskey, who prosecuted this case for the government, Worthen must serve two years of supervised release after his sentence.
Worthen’s co-defendants DeJuan A. Worthen and Darion D. Harris are both awaiting trial on their charges.
High-Frequency Trader Convicted of Disrupting Commodity Futures Market in First Federal Prosecution of "Spoofing"Read the Press Release
CHICAGO — In the first federal prosecution of its kind, a high-frequency trader was convicted today of disrupting commodity futures prices in a $1.4 million fraud scheme.
MICHAEL COSCIA, 53, used an automated trading technique to commit a crime known as “spoofing” to earn illegal profits from orders he placed through Chicago-based CME Group and London-based ICE Futures Europe. Coscia commissioned the design of two computer programs, known as algorithms, to implement his fraudulent strategy at his New Jersey trading firm.
The jury in federal court in Chicago deliberated for approximately one hour before convicting Coscia on all 12 counts, including 6 counts of commodities fraud and 6 counts of spoofing. Each count of commodities fraud carries a maximum sentence of 25 years in prison and a $250,000 fine, while each count of spoofing carries a maximum sentence of ten years in prison and a $1 million fine. U.S. District Judge Harry D. Leinenweber scheduled a sentencing hearing for March 17, 2016, at 9:45 a.m.
The indictment against Coscia, of Rumson, N.J., marked the first federal prosecution nationwide under the anti-spoofing provision that was added to the Commodity Exchange Act by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. The case was prosecuted by Assistant United States Attorneys Renato Mariotti and Sunil Harjani of the Securities and Commodities Fraud Section of the U.S. Attorney’s Office in Chicago. The section, which was created in 2014, is dedicated to protecting markets and preserving investors’ confidence.
“The defendant’s trading activities disrupted the markets in his favor and against legitimate traders and investors,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “We have to have fairness and integrity in our markets. And enforcement, including federal criminal prosecutions, is an important tool to protecting those values. The jury’s verdict exemplifies the reason we created the Securities and Commodities Fraud Section in Chicago, which will continue to criminally prosecute these types of violations.”
Mr. Fardon announced the conviction along with Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
High-frequency trading is a form of automated trading that uses computer algorithms for placing a high volume of trading orders in milliseconds. It is illegal for traders to engage in spoofing, which involves placing “bids” to buy or “offers” to sell a futures contract with the intent to cancel the bid or the offer before execution.
Evidence at the seven-day trial showed that Coscia engaged in spoofing in the markets of various commodities, including gold, soybean meal, soybean oil, high-grade copper, Euro FX and Pounds FX currency futures. In less than three months in 2011, Coscia illegally profited nearly $1.4 million.
Coscia has been a registered commodities trader since 1988. In 2007, he formed Panther Energy Trading LLC in Red Bank, N.J.
Harrison County, WV woman convicted of heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Miranda D. Swiger, 21, of Stonewood, West Virginia, was convicted of heroin trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Swiger, also known as “MiMi,” was discovered in possession of heroin in January 2015 in Taylor County, West Virginia. She pled guilty today to one count of “Possession with Intent to Distribute Heroin – Aiding and Abetting.” She faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley and former Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael J. Aloi presided.
Harrison County, WV woman charged with prescription pill traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal grand jury returned an indictment today charging Brittney Michelle Walls, 26, of Clarksburg, West Virginia, with prescription medication trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Walls was allegedly discovered in possession of buprenorphine, a schedule three controlled substance used to treat pain and opioid addiction, and alprazolam, a schedule four controlled substance used to treat anxiety, in May 2015 in Harrison County, West Virginia.
Walls is charged with one count of “Possession with Intent to Distribute Controlled Substances.” She faces up to five years in prison and a fine of up to $250,000 for possessing schedule four controlled substances and up to ten years in prison and a fine of up to 10 years in prison and a fine of up to $500,000 for possessing schedule three controlled substances. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew Cogar is prosecuting the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the West Virginia State Police are leading the investigation.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Hallettsville Man Sentenced for Possession of Child PornographyRead the Press Release
VICTORIA, Texas – A 25-year-old Hallettsville man has been ordered to federal prison following his conviction of possession of child pornography, announced U.S. Attorney Kenneth Magidson. Manuel Averill Amaro pleaded guilty July 7, 2015.
Today, Senior U.S. District Judge John D. Rainey sentenced Amaro to 96 months in prison to be immediately followed by a 10-year-term of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
On March 30, 2015, authorities began investigating Amaro for allegations involving the sexual exploitation of a child. During the course of the investigation, authorities conducted a search and seized Amaro’s two phones. A forensic examination of the phones led to the discovery of more than 600 images of children involved in sexual explicit conduct.
Amaro admitted to possessing the images. He also admitted to looking at child pornography since he was 14 years of age.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges against Amaro was the result of an investigation conducted by Homeland Security Investigations and the Hallettsville Police Cyber Crimes Unit.
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."
Four Fresno Residents Sentenced for Their Roles in Methamphetamine Trafficking ConspiracyRead the Press Release
FRESNO, Calif. — United States District Judge Anthony W. Ishii sentenced the final two defendants on Monday for a conspiracy to sell multiple pounds of methamphetamine to a confidential source, United States Attorney Benjamin B. Wagner announced.
On Monday, Veronda Creasy, 32, was sentenced to five years in prison, and Juventino Galindo, 41, was sentenced to eight years and nine months in prison for conspiracy to distribute and possess with intent to distribute methamphetamine.
On October 19, 2015, Touch Peang, 35, was sentenced to 12 years in prison for conspiracy to distribute methamphetamine and marijuana. Bruce Hunt, 60, was sentenced on October 13, 2015, to four years in prison for using a telephone to facilitate the commission of a felony. All defendants pleaded guilty in July and August 2015.
According to court documents, on April 29, 2014, Creasy and Hunt arranged to sell methamphetamine to a confidential source who wanted to purchase 10 pounds. Creasy sought the assistance of Galindo to obtain the substantial quantity of methamphetamine and Galindo arranged for Peang to sell the methamphetamine. On May 1, 2014, Hunt called the confidential source to notify him that the methamphetamine was available. Galindo, Creasy and Hunt led the confidential source to Peang’s place of employment, where Peang showed the methamphetamine to him. Shortly thereafter, officers of the Fresno Police Department executed a search warrant at the location, resulting in the arrest of the defendants and the seizure of eight pounds of methamphetamine, 13 pounds of marijuana, and two firearms.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners at the Fresno Police Department on this investigation and will continue to protect the public and the U.S. Mail against all forms of criminal misuse.”
This case was the product of an investigation by the United States Postal Inspection Service and the Fresno Police Department. Assistant United States Attorney Melanie L. Alsworth prosecuted the case.
Fort Myers Felon Sentenced for Possessing A FirearmRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Jamar James (25, Ft. Myers) to four years and five months in federal prison for possessing a firearm as a convicted felon. He pleaded guilty on July 28, 2015.
According to court documents, on January 9, 2014, James contacted a confidential informant (CI) and stated that he had a handgun for the CI to purchase. He instructed the CI to meet him at the same location where he had previously facilitated the sale of a firearm between the CI and an associate. Upon arrival at the location, the CI paid James $200. James then loaded a Hi-Point .38 caliber pistol with six rounds of ammunition and handed it to the CI.
James was previously convicted of multiple felony offenses in Lee County, including uttering a forged instrument and grand theft, and possession of a weapon or ammunition by a convicted felon. He is therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Fort Myers Police Department. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violence in our communities.
Former Portland Resident Sentenced to Prison for Tax Fraud SchemeRead the Press Release
A former Portland, Oregon, resident was sentenced to serve 24 months in prison followed by three years of supervised release for his involvement in a fraudulent income tax refund scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Brandon Leath, 36, pleaded guilty on July 23 to one count of conspiracy to file false claims and one count of theft of government funds. U.S. District Judge for the District of Oregon Robert E. Jones also ordered Leath to pay $55,635 in restitution to the Internal Revenue Service (IRS).
According to court documents, Leath conspired with others, including his wife, Shawntina Ware, to file more than 227 false income tax returns fraudulently claiming more than $1 million in refunds. The false information on the tax returns included fictitious W-2 wages and inflated withholding amounts. The co-conspirators often shared the fraudulent refunds with each other by splitting the refund into multiple bank accounts controlled by the co-conspirators or their family and friends.
Three of Leath’s co-conspirators have pleaded guilty to various charges and are scheduled to be sentenced. On June 5, co-conspirator Jasmine Mason pleaded guilty and is scheduled to be sentenced on Nov. 18. Ware pleaded guilty on July 23 and is scheduled to be sentenced on Jan. 6, 2016. Co-Conspirator Tataneisha White pleaded guilty on Oct. 1 and is scheduled to be sentenced on Jan. 7, 2016.
Acting Assistant Attorney General Caroline D. Ciraolo commended special agents of the IRS - Criminal Investigation, who investigated the case, and Trial Attorneys Lori A. Hendrickson and Ryan R. Raybould of the Tax Division, who are prosecuting the case. Acting Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office of the District of Oregon for their substantial assistance.
Former Pastor of Louisville Parish Charged by Grand Jury Indictment with Accessing and Viewing Child Pornography over the InternetRead the Press Release
LOUISVILLE, Ky. – The former pastor of a Louisville, Kentucky, parish was charged by grand jury Indictment today with violating federal child exploitation laws, announced United States Attorney John E. Kuhn, Jr.
The Indictment charges Stephen Pohl, age 57, with knowingly accessing, via the Internet, with intent to view material that contained images of child pornography between January and August 2015.
Pohl was initially charged with the same offense by criminal complaint on August 21, 2015. The complaint was filed after law enforcement officials executed two federal search warrants on August 12, 2015, in the work and living areas used by Pohl in the parish office and rectory of St. Margaret Mary Catholic Community, located at 7813 Shelbyville Road, in Louisville, Kentucky.
Law enforcement officials arrested Pohl in Indian Rocks Beach, Florida, on Friday evening, August 21, 2015. Pohl was then held at the Pinellas County Jail until his transfer to the custody of the United States Marshals Service. He appeared in United States District Court for the Western District of Kentucky on September 2, 2015.
If convicted, Pohl faces maximum potential penalties of 10 years in prison, a $250,000.00 fine and at least five years of Supervised Release.
Assistant United States Attorney Jo E. Lawless is prosecuting the case. The Federal Bureau of Investigation in conjunction with Louisville Metro Police Department’s Crimes Against Children Unit conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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The charging of a person by a Grand Jury Indictment is an accusation only and that person is presumed innocent until and unless proven guilty.
Former Owner of Virginia Based Stonewood Marketing Sentenced to 24 Months in Prison for Mail Fraud - Diverted and Stole $1.1 Million Intended for Political Campaigns, PACS, and Non-Profit OrganizationsRead the Press Release
Victims included McConnell Senate Committee
Defendant admitted to purchasing vacation condominiums, luxury automobiles and jewelry with the stolen funds
LOUISVILLE, Ky. – The former vendor for multiple local, state, and federal campaigns, PACs, and non-profit organizations throughout the United States, including the McConnell Senate Committee was sentenced in U.S. District Court today, by District Judge Greg Stivers, to 24 months in prison, fined $75,000 and ordered to pay $1,124,047 in restitution, for stealing more than $1.1 million in contributions and donations intended for committees and organizations announced U.S. Attorney John E. Kuhn, Jr.
“Samuel Pate, violated a position of trust - not only with the organizations that he represented, but with the earnest citizens trying to participate in the political process through contributions,” stated U.S. Attorney Kuhn. “Due to the efforts of my office and the FBI, nearly half all the stolen funds have been recovered and are being returned to the victim organizations. On this election day, let this be a reminder to those who attempt to subvert the political process – you will be caught and you will be prosecuted.”
Samuel K. Pate, Jr., age 52, of Forest, Virginia, pleaded guilty to three charges of mail fraud on August 10, 2015. To date, the United States has seized and forfeited property traced to fraud proceeds, which has been valued at over $379,000. In addition, approximately $103,000 has been turned over as restitution and has been distributed to victims. Restitution is being made in the form of reimbursements to Campaigns, PACs and organizations. For donations made to defunct organizations, reimbursements are being sent directly to the contributor.
Pate owned and operated Stonewood Marking in Forest, Virginia. Campaigns, PACs, and organizations contracted with Pate to process contributions received through direct mail and to maintain donor records when required by the Federal Election Commission (FEC). Donations were received by the Campaign, PACS, and organizations through the mail at their local offices, then automatically forwarded through the U.S. mail to Stonewood Marketing for processing. Pate maintained designated bank accounts at BB&T for the deposit of donations and campaign contributions.
According to the federal information, from February 2008 through November 2014, Pate routinely misappropriated client funds by diverting funds from their designated accounts or transferring funds from client accounts into other bank accounts he controlled. During the course of the scheme he stole donations and contributions totaling approximately $1,124,274.35 that were intended for the following political campaigns, PACs, and non-profit organizations: McConnell Senate Committee - $118,294; Christians in Defense of Israel - $319,691.09; House Conservative Fund - $30,614; Vitter for Senate (Louisiana) - $480,821.26; Catholic Advocates - $153,445; Jewish Voice - $150; Reagan Action - $1,025; Ten Commandments Commission - $2,098; Republican Majority Campaign - $11,300; Policy Issues Institute - $2,280; Defund Obamacare - $100; NRSC - $100; Randall Terry for Senate - $6; Freedom Defense Advocates - $990; Frontline Ministries - $1,150; Christian Anti-Defamation League - $2,020; and Live Prayer - $190.
During this period, Pate used the stolen and misappropriated funds to pay credit card bills, purchase vehicles, condominiums in Myrtle Beach, South Carolina, decorate a residence, pay family members, and pay personal expenses.
From February 2008 through November 2014 Pate paid approximately $284,841.85 in personal American Express credit card bills using stolen funds and transferred approximately $237,100 in stolen funds to his personal American Express savings accounts.
Further on or about October 21, 2010, through July 21, 2014, Pate used $28,104 in stolen funds from an Exodus Mandate account to pay condominium maintenance fees for both condominium unit 210 and unit 1015 located at 161 Seawatch Drive, Myrtle Beach, South Carolina. On or about December 13, 2010, he used $10,800 in stolen funds from the Christian-Anti-Defamation Commission bank account to purchase a 2007 Jeep Compass; on or about March 10, 2010, he used $14,765 in stolen funds from an Exodus Mandate bank account to a purchase a 2.02 carat diamond, round, H color, VS1 clarity; on or about August 26, 2010 Pate wire transferred $76,271.68 to a trust account for the purchase of a condominium identified as 161 Seawatch Drive, Unit 210, Myrtle Beach, Horry County, South Carolina. The wire transfer was drawn on a Christian Anti-Defamation Commission bank account. On or about October 13, 2010, Pate used $8,800 in stolen funds from the Christian Anti-Defamation Commission bank account to purchase a 2004 Lincoln Navigator; on or about January 7, 2011, Pate used $16,000 in stolen funds from a Christian anti-Defamation Commission bank account to purchase a 2007 Cadillac Escalade ESV; on or about December 22, 2011, Pate used $6,000 in stolen funds from the Exodus Mandate bank account to purchase a 2010 Cadillac SRX vehicle; on or about April 28, 2013, the defendant used $9,999.45 in stolen funds from a Christian Anti-Defamation Commission bank account to purchase a 2007 GMC Acadia sport utility vehicle; on or about July 8, 2012, the defendant used $17,250 in stolen funds from a Christian Anti-Defamation commission bank account to purchase a 2007 Jeep Wrangler sport utility vehicle; on or about July 29, 2013, Pate purchased a condominium identified as 161 Seawatch Dive, Unit 1015 Myrtle Beach, South Carolina for $241,000. The stolen funds used for this transaction included the following: from the sale of 161 Seawatch Drive for $102,889.72; $39,050.46 from a Christian Anti-Defamation Commission bank account; and $5,000 from an Exodus Mandate bank account. Further, between January 2014 through July 2014 Pate used $11,446.42 in stolen funds from an Exodus Mandate bank account to pay Sheila Morgan Interiors to redecorate his condominium. On or about May 8, 2014, Pate used $23,500 in stolen funds from the Exodus Mandate bank account to purchase a 2013 GMC Terrain sport utility vehicle; in June 2014 and July of 2014, the defendant used $9,300 in stolen funds from Exodus Mandate bank account to pay ACE Golf Carts for the purchase of a golf cart.
During this same period, Pate knowingly caused campaigns and PACS to file multiple false FEC Form 3, Report of Receipts and Disbursements, quarterly reports with the FEC that omitted the names and amounts of donor donations.
This case was prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by the Federal Bureau of Investigation (FBI).
Former Jail Contract Employee Sentenced to Federal Prison for Identity Theft and Tax Refund FraudRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Lori Ann Dilworth to two years and one month in federal prison for conspiracy to submit false claims to the IRS and aggravated identity theft. She also was ordered to serve two years of supervised release and to pay $52,105 in restitution to the IRS. Dilworth pleaded guilty on August 4, 2015.
According to court documents, Dilworth worked at the Orange County Jail as a contract employee in the inmate records section. She stole the personal identification information of 36 inmates from the jail and provided that information to Shantrell Sharae Stephenson and other co-conspirators to use to file false tax returns. Another conspirator, Richard Damarick Mitchell, served as an intermediary between Dilworth and Stephenson. In total, more than $100,000 in fraudulent tax returns were filed with the IRS as part of the conspiracy.
Mitchell and Stephenson were also prosecuted for their roles in this conspiracy. On October 26, 2015, Mitchell was sentenced to three years and six months in federal prison for conspiracy to submit false claims to the IRS and aggravated identity theft. On August 26, 2015, Stephenson pleaded guilty to one count of conspiracy, five counts of submitting false claims to the IRS, one count of theft of government property, and one count of aggravated identity theft. Her sentencing hearing has been set for December 14, 2015.
This case was investigated by Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
Elgin, Illinois Man Indicted for Defrauding Four in Marinette, WisconsinRead the Press Release
Acting United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin, announced that a federal grand jury returned an indictment against Gregory J. Kuczora (age: 55) of Elgin, Illinois, charging him with two counts of wire fraud in violation of Title 18, United States Code, Section1343. On each count the defendant faces maximum penalties of not more than twenty years imprisonment, a maximum fine of $250,000, a $100 special assessment, and a three year term of supervised release.
The indictment alleges that from February 2007 to February 2011, Kurzora defrauded approximately 70 individuals nationwide out of just over $1 million, including four individuals from Marinette County, Wisconsin. The defendant promised business loans in exchange for up-front fees, purporting to be an agent of a fictitious financial investment firm located in the United Kingdom. Records show, however, that the investment firm was little more than a website registered in the nation of Panama.
This case was investigated by the Federal Bureau of Investigation and the Marinette County Sheriff’s Office. The case will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Eleventh Guilty Plea in Norteno InvestigationRead the Press Release
BOISE – Jose Enrique Olvera Jr., 51, of Nampa, pleaded guilty today in United States District Court to possession of methamphetamine with intent to distribute and unlawful possession of firearms, U.S. Attorney Wendy J. Olson announced. Olvera was indicted by a federal grand jury on November 14, 2014.
According to the plea agreement, law enforcement agents executed a search warrant at Olvera’s residence on June 18, 2014. During the search, agents found methamphetamine, scales, packaging material, drug ledgers, $2,767, seven firearms, and ammunition. The firearms included a 20 gauge sawed-off shotgun with an obliterated serial number, other shotguns, rifles, and a handgun. Olvera was prohibited from possessing the firearms because he was previously convicted of the felony crime of possession of a controlled substance with intent to deliver in 2003.
The charge of possession of methamphetamine with intent to distribute is punishable by a minimum term of imprisonment of five years and up to forty years, a maximum fine of $5 million, and a minimum term of four years supervised release. The charge of unlawful possession of firearms is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. Olvera is scheduled to be sentenced on January 20, 2015, by Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
Olvera was charged as a result of an investigation by the Treasure Valley Metro Violent Crimes Task Force, which focused on the “Norteno” Northside gang that is active in Nampa and other parts of the Treasure Valley. Fourteen individuals were indicted on drug and gun charges as a result of the investigation. So far, nine defendants have been sentenced. Guadalupe Serrano, 35, of Caldwell, was sentenced on April 21, 2015, to 75 months in prison for possession of methamphetamine with intent to distribute and for possessing firearms in furtherance of the drug trafficking crime. Nicole Danelle Nieto, 31, of Nampa, was sentenced on May 26, 2015, to 41 months in prison for distributing methamphetamine. Jose Manuel Menchaca, 35, of Nampa, was sentenced May 28, 2015, to 60 months in prison for distributing methamphetamine. On June 17, 2015, Brandi Larrea, 31, of Nampa, was sentenced to 48 months in prison for distributing methamphetamine and Tara Noelle Rivera, 30, of Nampa, was sentenced to 24 months in prison for distributing methamphetamine. Johnny Lee Martinez, 33, of Nampa, was sentenced on July 20, 2015, to 57 months in prison for distributing methamphetamine. Michael David Bradshaw, 31, of Nampa, was sentenced on August 6, 2015, to 66 months in prison for distributing methamphetamine. Kenny P. Breedlove, 35, of Porterville, California, was sentenced on October 22, 2015, to 110 months for possession of methamphetamine with the intent to distribute. Guillermo Farias Jr., 29, of Nampa, was sentenced on October 26, 2015, to time served and three years of supervised release for his role in assisting with methamphetamine distribution. Richard Lobato, 51, of Nampa, is scheduled to be sentenced on November 19, 2015. Isaac Bright, 21, of Caldwell, is scheduled for trial. Two other defendants have outstanding warrants, including Ruben Rodriguez, 36, and Veronica Cantu, 26, both from Nampa.
These cases are the result of a joint investigation by the Treasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
These cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Eleven Defendants Plead Guilty to Roles in Methamphetamine Distribution ConspiracyRead the Press Release
WICHITA FALLS, Texas — Eleven defendants who were indicted in September for their roles in a methamphetamine distribution conspiracy that operated in Wichita Falls, Texas, from approximately March 2014 to August 2015, pleaded guilty last week before U.S. District Judge Reed C. O’Connor in federal court in Wichita Falls. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
Each below-listed defendant pleaded guilty to one count of conspiracy to distribute five grams or more of methamphetamine, a Schedule II controlled substance:
Mark Anthony Peysen, 54
Tamara Ann Beasley, 43
Clinton Ray Durham, 47
John Monroe Drullinger, Jr., a/k/a “Johnny D,” 53
Chad Edward Fluharty, 35
Juan Anthony Gabaldon, 31
Vincent Mark Hinson, 36
Curtis Lisle Shawver, 28
James Anthony Streadwick, 54
Michael David Thompson, 50
Cody Shane Walsh, 30Each defendant faces a statutory penalty of at least five years in federal prison and up to 40 years in federal prison and $5 million fine. Each defendant is scheduled to be sentenced on February 22, 2016.
According to documents filed in the case, from approximately March 2014 to August 12, 2015, these defendants conspired together, and with others, to possess with intent to distribute and distribute five grams or more of methamphetamine. They arranged to acquire the methamphetamine and used residences and other locations in the Northern District of Texas to package and distribute it to customers. They delivered and distributed, and coordinated the delivery and distribution of, quantities of methamphetamine. They also acted as intermediaries and brokers to negotiate the acquisition, price, sale and delivery of the methamphetamine, as well as the collection of payment for the methamphetamine.
The Wichita County District Attorney’s Office, the Wichita Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Mary Walters is in charge of the prosecution.
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Defendant Sentenced to Serve 30 Years in Federal Prison on Methamphetamine ConvictionRead the Press Release
FORT WORTH, Texas — A defendant who pleaded guilty this summer to an indictment charging one count of distribution of methamphetamine, was sentenced on Friday by U.S. District Judge John McBryde to 360 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Jose Milton Puentes, 34, was arrested in May 2015 in the Los Angeles area on the indictment filed in the Northern District of Texas. He made his initial appearance in federal court in Los Angeles and was released on bond. After he entered his guilty plea in U.S. District Court in Fort Worth on July 17, 2015, Judge McBryde remanded him into federal custody.
According to documents filed in the case, on April 4, 2013, Puentes shipped, or caused to be shipped, approximately one pound of methamphetamine from California to Fort Worth via UPS. The methamphetamine arrived the following day, and the Drug Enforcement Administration (DEA) intercepted it.
The DEA investigated the case, and Assistant U.S. Attorney Shawn Smith prosecuted it.
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Dallas Man Admits Aiming a Laser Pointer at an AircraftRead the Press Release
DALLAS — Orlando Jose Chapa, 37, of Dallas appeared before U.S. District Judge Reed C. O’Connor this morning and pleaded guilty to an indictment charging one count of aiming a laser pointer at an aircraft, announced U.S. Attorney John Parker of the Northern District of Texas.
Chapa, who will remain on bond pending sentencing, faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. A sentencing date has not been set.
According to documents filed in the case, on or about May 30, 2015, in the Dallas Division of the Northern District of Texas, Chapa knowingly aimed the beam of a laser pointer at a Texas Department of Public Safety (DPS) helicopter and at the flight path of that aircraft. Chapa aimed the laser at the helicopter from his driveway as it was flying overhead.
The FBI, Texas DPS and the Dallas Police Department are investigating. Special Assistant U.S. Attorney Lara Burns is prosecuting.
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Dakota Weaver Sentenced to 144 Months in Prison for Child Pornography OffensesRead the Press Release
KNOXVILLE, Tenn.- On November 3, 2015, Dakota Destry Weaver, 20, of Clinton, Tenn., was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 144 months in prison as a result of his conviction for receipt and possession of child pornography. Following his release from prison, Weaver will be supervised by the U.S. Probation Office for a term of 20 years and will be required to register with the sex offender registry in any state in which he resides, works, or attends school.
Weaver pleaded guilty in June 2015 to federal charges stemming from an undercover investigation into trading child pornography on the Internet. A forensic examination of Weaver’s computer revealed that he had collected 1106 still images and 78 videos of child pornography.
This investigation was conducted by U.S. Homeland Security Investigations and Knoxville Police Department’s Internet Crimes Against Children Task Force. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Cuban National Convicted for his Role in $200k Credit Card Fraud SchemeRead the Press Release
McALLEN, Texas – Alexis Acosta-Guzman, 40, a Cuban citizen who was residing in McAllen, has been convicted of trafficking in access devices, announced U.S. Attorney Kenneth Magidson.
From March 2013 through August 2015, Acosta-Guzman wired thousands of dollars in funds to individuals in China, Russia and the Ukraine. In return, he received more than 1,000 credit card numbers and other personal information that had been stolen from individuals in the United States. Acosta-Guzman transferred that information to others using various email accounts.
He and co-conspirators would then use special devices and the stolen information to create physical credit cards. They used the fraudulent credit cards to make purchases throughout Texas at different retailers and convenience stores.
As a result of the scheme, hundreds of people lost more than $211,000 for the fraudulent charges. Ultimately, the customers’ bank absorbed the losses. As part of his plea, Acosta-Guzman has agreed to pay restitution in the amount of $211,311.15.
U.S. District Judge Micaela Alvarez accepted the plea and set sentencing for Jan. 14, 2016. At that time, Acosta-Guzman faces up to 10 years in federal prison.
The charges are the result of an investigation conducted by the Secret Service, FBI and the McAllen Police Department. Assistant U.S. Attorneys David A. Lindenmuth and Joseph T. Leonard prosecuted the case.
Connecticut Man Pleads Guilty to Tobacco Tax FraudRead the Press Release
BOSTON – A Farmington, Conn. businessman pleaded guilty in U.S. District Court in Springfield yesterday in connection with trafficking untaxed tobacco products.
Harbhajan Singh, 57, pleaded guilty to three counts of contraband smokeless tobacco trafficking. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Feb. 1, 2016.
In January 2012, Singh purchased a wholesale tobacco product business operating from a warehouse on East Columbus Avenue in Springfield. After the sale, Singh obtained smokeless tobacco and cigars from a Scranton, Pa. warehouse. Singh subsequently distributed smokeless tobacco without a license and by failing to pay any of the required tax. In June 2012, law enforcement officers executed numerous search warrants on the Springfield warehouse and various other locations in Massachusetts, Connecticut, and Pennsylvania. From January to June 2012, Singh evaded nearly $200,000 in tobacco taxes owed to the state of Massachusetts.
Each count provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Commissioner Kevin B. Sullivan of the Connecticut Department of Revenue Services, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Branch Office.
Company Operator Pleads Guilty to Falsifying Records to United States Department of TransportationRead the Press Release
PHILADELPHIA - Frank Menichini, 73, of Newtown Square, Pennsylvania, pleaded guilty today to a criminal information charging him with one count of falsifying records with the intent to obstruct an investigation by the United States Department of Transportation (“DOT”). U.S. District Court Judge Gerald J. Pappert scheduled a sentencing hearing for February 3, 2016. The defendant faces a maximum sentence of 20 years in prison, up to three years of supervised release, a $250,000 fine and a $100 special assessment.
During his guilty plea, the defendant admitted that he controlled DVG Packaging, Inc. (“DVG”), which marketed and sold plastic bags that the defendant claimed had been tested and certified to meet a pressure test required by the DOT for transporting certain hazardous substances. The defendant falsified a laboratory test report to make it appear as though the bags were certified, even though he knew that they were not. When inspectors from the Pipeline and Hazardous Materials Safety Administration of the DOT requested papers related to the purported certification of the bags, the defendant provided them with the falsified test report.
The case was investigated by the United States Department of Transportation Office of Inspector General, and is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
Columbia Man Indicted for Child Sexual ExploitationRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Columbia, Mo., man has been indicted by a federal grand jury for the sexual exploitation of a minor.
Jayme Nathaniel Walker, 40, of Columbia, was charged in a two-count indictment returned under seal by a federal grand jury in Jefferson City, Mo., on Oct. 28, 2015. That indictment was unsealed and made public upon Walker’s arrest and initial court appearance on Monday, Nov. 2, 2015. Walker remains in federal custody pending a detention hearing on Thursday, Nov. 5, 2015.
The federal indictment alleges that Walker used the Internet and a cell phone to attempt to entice a minor victim to engage in illicit sexual activity between June 17 and Nov. 8, 2013.
The indictment also charges Walker with transferring obscene materials to a minor under the age of 16 on June 18, 2013.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI, the Illinois State Police and the Boone County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Clearfield County Man Admits Possessing Controlled SubstanceRead the Press Release
JOHNSTOWN, Pa. - A resident of Luthersburg, Pa., pleaded guilty in federal court in Johnstown to a charge of possession of a controlled substance, United States Attorney David J. Hickton announced today.
Thomas J. Desmond, 24, of Luthersburg, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on March 13, 2014, Desmond possessed a quantity of 3,4 methylenedioxymethcathinone (methylone) hydrochloride with the intent to distribute it.
Judge Gibson scheduled sentencing for April 6, 2016, at 1:30 p. m. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, United States Postal Inspection Service, Pennsylvania State Police (Dubois Barracks), and Homeland Security Investigations (Pittsburgh Office) conducted the investigation that led to the prosecution of Desmond.
Casselberry Man Convicted of Possessing Bombs in Winter ParkRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Carl Joseph Thomas Pisa (24, Casselberry) guilty of possessing destructive devices. He faces a maximum penalty of 10 years in federal prison. His sentencing hearing has been set for January 20, 2016.
According to court documents, in December 2014, an undercover agent (UC) contacted Pisa in response to an online ad for a military simulator offered for sale. Pisa agreed to sell him the simulator. Between December 2014 and February 2015, Pisa met with the UC on several occasions to sell the UC explosives. On February 6, 2015, Pisa sold the UC 12 improvised explosive devices in a parking lot in Winter Park. During that meeting, the UC asked Pisa if the explosives could kill somebody, to which Pisa responded, “yes.” In describing the bombs, Pisa explained how ball bearings would blast out from the device in a perfect cone upon initiation. The devices were sent to the Bureau of Alcohol, Tobacco, Firearms, and Explosives laboratory for examination, where they were identified as explosive bombs and destructive devices. It was also determined that they were not properly registered to Pisa in the National Firearms Registration and Transfer Record.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Orange County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys James D. Mandolfo and Kara M. Wick.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime and improve the quality of life where law enforcement efforts are focused.
California man pleads guilty to conspiracy to distribute hydromorphoneRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Booth Goodwin announced today that Lawrence Ray Bennett, Jr., 31, of Los Angeles, California, pleaded guilty in federal court in Bluefield, West Virginia, to conspiracy to distribute hydromorphone. Bennett admitted that from July 2014 to September 2015, he and a co-defendant used the mail to ship and receive hydromorphone. Bennett mailed the drugs from California to his co-defendant, who then sold the pills in and around Bluefield and Princeton, and mailed the proceeds back to Bennett in California. During the investigation of the case, agents seized over 2,500 hydromorphone pills and approximately $19,000 in cash.
Bennett faces up to 20 years in prison and a $1,000,000 fine. The sentencing is scheduled for February 17, 2016, in federal court in Bluefield.
The Southern Regional Drug and Violent Crime Task Force and the United States Postal Service conducted the investigation.
This case was prosecuted as part of the Bluefield Pill Initiative, a collaborative, multi-agency regional law enforcement effort designed to halt prescription drug trafficking in Mercer, McDowell, and Wyoming counties. The Bluefield Pill Initiative is led by the Southern Regional Drug and Violent Crime Task Force, which includes the West Virginia State Police Bureau of Criminal Investigation; the Mercer, McDowell and Wyoming County Sheriff’s Departments; and the Bluefield and Princeton Police Departments.
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Boise Man Sentenced for Transferring Obscene Material to a Minor over the InternetRead the Press Release
BOISE - Kenton Lloyd Flook, 45, of Boise, Idaho, was sentenced today in United States District Court to 84 months in prison followed by seven years of supervised release, for two counts of transfer of obscene materials to a minor, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Flook to forfeit computers and related property used in the commission of the offenses. Flook pleaded guilty to the charges on July 30, 2015.
According to the plea agreement, in March of 2014, an agent with the Federal Bureau of Investigation in Erie, Pennsylvania, and a detective with the Erie, Pennsylvania, Police Department, received information from the mother of a 13-year-old child in Erie that her daughter had engaged in sexually explicit activity with an adult male via the internet. An investigation of the victim's iPod revealed multiple sexually explicit images of the victim and an adult male who represented himself as "Kevin Atton." The investigation also revealed chats between the victim and "Atton" using online chat websites "Omegle" and "KiK," and live video chats using "Skype."
Beginning on February 14, 2014, the chats became sexually explicit in nature, and progressed to the commission of live sex acts and exchanges of sexually explicit photos of one another via the internet. The exchange of sexually explicit photos included sexually explicit photos of the adult male on March 2nd and 3rd, 2014. The victim reported that she told "Atton" that she was 14 years old. "Atton" represented himself as a 21-year-old baseball player and college student at UNLV in Las Vegas, Nevada. The investigation later revealed "Atton" to be Kenton Lloyd Flook, age 44, living in Boise, Idaho.
On July 28, 2014, FBI agents in Idaho served a federal search warrant for Flook's residence in Boise, where they seized an iPad used in the chats. FBI agents in Las Vegas, Nevada located Flook on that same date while he was on a business trip. During an interview with FBI agents, Flook admitted repeatedly communicating with the victim online, that the conversations were sexual in nature, that he engaged in live sexual acts over the internet with the victim, and that he had exchanged sexually explicit images with the victim.
The case was investigated by the Federal Bureau of Investigation in Pennsylvania, Idaho, and Utah, as well as the Erie, Pennsylvania Police Department, and 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.”
Berkeley County, WV man sentenced to seven years for heroin traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michael Jose Roberts, 63, of Martinsburg, was sentenced to 84 months in prison for heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
A federal grand jury recently returned an indictment charging Roberts with multiple heroin trafficking offenses following the death of a female victim who used heroin allegedly purchased from Roberts in Berkeley County, West Virginia in May 2014. He pled guilty in August 2015 to a criminal Information charging him with one count of “Aiding and Abetting Distribution of Heroin.”
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Barbour County man sentenced for marijuana traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Charles Shawn Shannon, 55, of Belington, West Virginia, was sentenced today to 30 months in prison for marijuana trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Shannon was one of four individuals charged in March 2015 in a 16-count federal indictment with participating in an extensive oxycodone and marijuana trafficking operation. Specifically, Shannon distributed marijuana in Barbour County, West Virginia. He pled guilty in August 2015 to one count of “Distribution of Marijuana.” As part of the sentenced imposed today, Shannon was also ordered to pay a fine in the amount of $5,000.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force led the investigation. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, the Internal Revenue Service – Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives also investigated.
U.S. District Judge John Preston Bailey presided.
Baltimore Heroin Dealer Sentenced to 20 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Savino Braxton, age 58, of Baltimore, Maryland today to 20 years in prison, followed by five years of supervised release for possession with intent to distribute heroin. The sentence imposed today is consecutive to the six months Judge Bredar imposed during the trial for contempt. A federal jury convicted Braxton on July 23, 2015.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to evidence presented at his four day trial, on August 18, 2009, Braxton sold 50 grams of heroin to a confidential source. The source had previously paid Braxton $2,250 for the drugs. Both transactions occurred at an apartment used by Braxton on Goodnow Road in Baltimore. Following the two drug related transactions, a federal search warrant was obtained for the apartment. On September 2, 2009, Braxton was arrested after leaving the apartment and driving to a parking lot on Sinclair Lane. Agents recovered 28 grams of heroin from the center console of Braxton’s vehicle. Keys recovered from Braxton were used to enter the Goodnow Road apartment used by Braxton. Agents recovered from the apartment: $4,270 in cash; a drug tally sheet bearing Braxton’s name; over 1 kilogram of heroin; and drug paraphernalia, including cutting agents, gel caps and scales. Braxton was charged and has his initial appearance on September 3, 2009 and was released under the supervision of U.S. Pretrial Services. Braxton absconded from supervision and was located and arrested on August 17, 2012.
According to court documents, Braxton was originally convicted of this charge on February 11, 2013, after pleading guilty, and was sentenced on June 17, 2013, to 138 months in prison. Braxton appealed to the U.S. Court of Appeals and the judgment was overturned on appeal, leading to his retrial in July 2015.
In 1991, Braxton was sentenced to over 17 years in prison for possession with intent to distribute heroin in U.S. District Court in Baltimore. He was released from prison in August 2006.
United States Attorney Rod J. Rosenstein praised the DEA and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys John F. Purcell and Kenneth S. Clark, who prosecuted the case.
Albuquerque Man Arraigned on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Paul Keenahan, 44, of Albuquerque, N.M., was arraigned this morning on an indictment charging him with distribution and possession of visual depictions of minors engaged in sexually explicit conduct. During this morning’s proceedings, Keenahan was ordered detained pending trial based on judicial findings that he poses a risk of flight and a danger to the community.
The federal indictment charges Keenahan with three counts of distribution of child pornography and three counts of possession of child pornography. It alleges that Keenahan committed the six offenses in Bernalillo County, N.M., between Nov. 2012 and July 2015.
According to court filings, Keenahan was initially charged with related state child pornography crimes in July 2015, and was released on a bond that included the condition that he not leave Bernalillo County without prior permission from the state court. On Aug. 28, 2015, the U.S. Marshals Service arrested Keenahan in Syracuse, N.Y., on a state arrest warrant that was issued after Keenahan violated his bond conditions. A federal criminal complaint was filed on Sept. 4, 2015, and the U.S. Marshals Service arrested Keenahan, who was in custody in New York on Sept. 24, 2015, on the federal charges. The federal indictment was filed on Oct. 7, 2015, while Keenahan was in the process of being transferred from New York to New Mexico to face the federal charges against him. He made his initial appearance in federal court yesterday.
According to the criminal complaint, the investigation into Keenahan began in July 2015, when the New Mexico Internet Crimes Against Children (ICAC) Task Force received a tip that a particular IP address was being used to share child pornography. Investigation revealed that the IP address was subscribed to a motel on Candelaria Road NE in Albuquerque, where it allegedly was being used by Keenahan, who was then employed by the motel and living at the motel.
The criminal complaint alleges that officers executed a state search warrant at Keenahan’s room on July 23, 2015, and seized a laptop computer containing files allegedly consistent with child pornography. Keenahan was arrested on state charges that day. A forensic examination of Keenahan’s laptop computer revealed that it contained more than 10,000 files of alleged child pornography.
The penalty upon conviction on each of the three distribution of child pornography charges is a mandatory minimum of 5 years and a maximum of 20 years in federal prison. The penalty upon conviction on the possession charge is a maximum of ten years in federal prison. Charges in criminal complaints and indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the New Mexico ICAC Task Force, Bernalillo County Sheriff’s Office, Albuquerque office of the FBI, Office of the New Mexico Attorney General, and the U.S. Marshals Service with assistance from the 2nd Judicial District Attorney’s Office and the U.S. Attorney’s Office for the Northern District of New York.
Assistant U.S. Attorney Sarah Mease is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 80 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.