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Tuesday 3 November 2015
Alabama man sentenced to 10 years in prison for transporting child pornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a man from Alabama was sentenced last week to 120 months in prison for transporting sexually explicit pictures of a minor.
Mario Duran, 50, of Jemison, Ala., was sentenced Wednesday by U.S. District Judge Richard T. Haik on one count of transporting child pornography. He was also sentenced to five years of supervised release and ordered to register as a sex offender. According to evidence presented at the guilty plea, Acadia Parish Sheriff’s deputies, while investigating another case, made contact with Duran in April of 2014 while he was parked in his truck in the Crowley, La., Wal-Mart parking lot. Present with Duran were two minor females. The minors said they did not know Duran, and that he had picked them up in Alabama and was transporting them to Texas to meet their father. The vehicle was searched, and three cell phones were found. Upon further investigation, law enforcement agents found sexually explicit pictures of a minor on one of the phones. The images on the phone were not of the minors Duran was transporting.
“I would like to thank the Acadia Parish Sheriff’s officers and ICE agents for apprehending and removing this child predator from our streets,” Finely stated. “Our office will continue to aggressively prosecute these types of crimes to protect our community.”
This case is part of Project Safe Childhood, a U.S. Department of Justice launched 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 (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone app (http://www.ice.gov/predator/smartphone-app). Tips may be submitted anonymously.
Homeland Security Investigations and the Acadia Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Jamilla A. Bynog and Myers P. Namie prosecuted the case.
Aggravated felon sentenced to 30 months in prison for illegally reentering the United StatesRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Honduran national was sentenced Monday to 30 months in prison for reentering the country after having been previously deported for committing an aggravated felony.
Timoteo Gonzalez-Leiva, 42, of Las Ceiba Atlantia, Honduras, was sentenced by U.S. District Judge Donald E. Walter on one count of illegal reentry after being deported as an aggravated felon. He was also ordered deported once his prison term is served. According to evidence presented at the July 28, 2015 guilty plea, Shreveport Police arrested Gonzalez-Levia on October 26, 2014. On October 28, 2014, he was convicted of simple battery and sentenced to jail. On January 7, 2015, at the completion of his jail sentence, the Caddo Parish Sheriff notified U.S. Immigration and Customs Enforcement of his pending release. ICE agents found that the defendant had been deported and then unlawfully returned to the United States multiple times. He was arrested in March of 1998 for first degree robbery in Delaware and sentenced to two years in prison. After serving the prison sentence, he was deported as an aggravated felon to Honduras. He later unlawfully reentered the United States again, was arrested and removed in April of 2004, and again in February of 2006.
The U.S. Immigrations and Customs Enforcement-Immigration Enforcement, the Caddo Parish Sheriff’s Department and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
Monday 2 November 2015
Wichita Falls Man Sentenced to 110 Months in Federal Prison on Methamphetamine ConvictionRead the Press Release
WICHITA FALLS, Texas — Doty Lee Standridge, 31, of Wichita Falls, Texas, was sentenced this week by U.S. District Judge Reed C. O’Connor to 110 months in federal prison following his guilty plea in June 2015 to one count of possession with intent to distribute methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Standridge’s co-defendant in the case, Joshua Antonio Ramirez, 30, of Lawton, Oklahoma, pleaded guilty last month to the same offense and is scheduled to be sentenced on January 4, 2016. He faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine.
According to documents filed in the case, from approximately January 2013 until November 2014, Standridge obtained quantities of methamphetamine from suppliers, including Ramirez, and he distributed that methamphetamine in the Wichita Falls area and elsewhere.
The quantities of methamphetamine that Standridge obtained and distributed varied. He frequently obtained methamphetamine in one to two-ounce quantities and distributed one-eighth ounce (approximately 3.5 gram) and one-quarter ounce (approximately 7.0 gram) quantities.
Texas DPS investigated. Assistant U.S. Attorney Mary Walters prosecuted.
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Victoria Man Pleads Guilty to Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – James Peyton Busbee Jr., 30, of Victoria, has entered a guilty plea to sexual exploitation of a child, otherwise known as production of child pornography, announced U.S. Attorney Kenneth Magidson.
On Feb. 3, 2015, authorities responded to Busbee’s residence in reference to the possible sexual assault of a child. A minor male relative was identified and confirmed the abuse. Busbee also admitted to sexually assaulting the child.
A forensic examination of Busbee’s phone led to the discovery of an electronic video depicting Busbee involved in sexually explicit conduct with the child.
Senior U.S. District Judge John D. Rainey accepted the guilty plea today and set sentencing for Feb. 1, 2016. At that time, Busbee faces a minimum of 15 and up to 30 years in federal prison. Upon completion of any prison term imposed, Busbee also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Busbee was arrested on the federal charges in April 2015 and has been in custody since that time where he will remain pending his sentencing hearing.
The charges were the result of an investigations conducted by Homeland Security Investigations with the assistance of the Victoria County Sherriff’s Office.
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."
United States Sues Railroad Worker for Submitting False Compensation ClaimsRead the Press Release
PHILADELPHIA - The United States filed a civil fraud lawsuit today against Wilbert D. McKinzie, an Amtrak employee, of Chester, Pennsylvania, alleging that he submitted claims for sickness compensation to which he was not entitled, announced United States Attorney Zane David Memeger. According to the complaint, McKinzie was working another job as a home health aide while submitting claims for sickness compensation from the United States Railroad Retirement Board. McKinzie collected $9,517.60 that he was not eligible to receive.
The United States filed the lawsuit under the False Claims Act. Under the False Claims Act, a person who causes false or fraudulent claims to be submitted to the government for payment is liable for three times the government’s damages, plus civil penalties for each false claim. The allegations against McKinzie are allegations only and not findings of liability. To resolve the matter, McKinzie has agreed to enter into a consent judgment.
The allegations arose from an investigation led by the United States Railroad Retirement Board Office of Inspector General. The case was handled by Assistant United States Attorneys Richard M. Bernstein and Michael S. Macko.
U.S. Attorney’s Office Launches “U Can Stop Traffick” Campaign Against Sex and Drug TraffickingRead the Press Release
United States Attorney Eric S. Miller, along with representatives from Vermont’s 2-1-1 network, Give Way to Freedom, the United Way, the Vermont Department of Child and Family Services, the Center for Crime Victim Services, the Vermont Attorney General’s Office, the Vermont Network Against Domestic and Sexual Violence, the Vermont Human Trafficking Task Force, elected leaders, and other non-profit and law enforcement entities today announced the launch of a new campaign raising awareness about sex and drug trafficking activities in the state.
The campaign will kick off with the release of the “U Can Stop Traffick” public service announcement, which will begin airing on Vermont television stations today and can be viewed on the campaign’s website, www.UCanStopTraffick.org. The website also includes the powerful stories of women who have been trafficked, recorded in their own words and voices, along with resource lists for individuals in need of help.
As Miller explained at a press conference at Burlington’s Contois Auditorium, heroin traffickers in Vermont do not work alone. They rely on local networks of people to support their illegal and destructive business model. These networks assist drug dealers by providing housing, contacts, and vehicles, and by transporting drugs. In some cases, Vermonters are also used by drug dealers for sex trafficking that profits their illicit drug organizations.
“We in law enforcement are working closely with our non-profit partners and elected leaders to undermine the foundations of drug dealing and help victims escape traffickers,” U.S. Attorney Miller said. “This public service announcement will raise awareness of the dangerous intersection of drug and sex trafficking in Vermont and connect affected individuals with the help and resources they need.”
U.S. Senator Patrick Leahy, D-VT, who led successful efforts to reauthorize the Violence Against Women Act and the Trafficking Victims Protection Act and recently brought funding to Vermont to combat heroin trafficking, lauded the work of the U.S. Attorney’s Office and its partners. Leahy said: “Once again Vermont is leading the way to find thoughtful, effective solutions to problems that erode our communities. Drug trafficking and human trafficking are terrible crimes. They destroy lives, devastate families and weaken communities. To fight back effectively, we must coordinate our efforts, and I am proud to see the collaboration among such dedicated partners.”
Burlington Mayor Miro Weinberger said: “Today’s fight against the opiate crisis in our community requires an all hands on deck response and engaging all aspects of the problem. The Burlington Police Department is redoubling its efforts to stop the rising trafficking of heroin in our community and to stand up for the many victims of this terrible trade. I am grateful for the important partnership with the U.S. Attorney’s Office, the Governor’s Office, the State’s Attorney’s Office, medical providers, and community support services in this fight against drug and sex trafficking in Vermont.”
The U Can Stop Traffick public service announcement was conceived by the United States Attorney’s Office, which engaged its law enforcement, non-profit, and social service providers to help create the campaign. The video and website were produced by Moving Pictures Division and the design work was done by RetroMotion Creative of Williston, Vermont and can be viewed at www.UCanStopTraffick.org.
U.S. Attorney’s Office Awarded Funding for Reentry and Prevention Outreach Coordinator Positions to Further Department of Justice’s “Smart on Crime” InitiativeRead the Press Release
SACRAMENTO, Calif. — The Office of the United States Attorney for the Eastern District of California announced today that it is seeking applications for two Reentry and Prevention Outreach Coordinators to work in the Sacramento and Fresno offices to help in the development and implementation of the U.S. Department of Justice’s Smart on Crime initiative.
The selected applicants will focus on reentry and prevention efforts as part of the office’s implementation of the Smart on Crime Initiative. Supporting effective crime prevention strategies and working to reduce recidivism among persons who have paid their debt to society and are rehabilitating and reintegrating back into their communities are key components of the initiative. Recidivism rates for offenders leaving prison are high. A reduction in the recidivism rate of even one or two percentage points can create long-lasting benefits for formerly incarcerated individuals and their communities.
“This office’s main function is, and will remain, the prosecution of serious and violent offenders,” said U.S. Attorney Wagner. “But prosecutions alone will not ensure public safety over the long term. This office has been increasing its involvement in community-based crime prevention and reentry strategies. I am very pleased that we are now hiring dedicated professionals to help lead these efforts. When hired, these persons should bring new expertise to this office, increasing our capacity to assist in prevention and reentry, while minimizing the impact on our prosecutorial resources.”
In 2013, then Attorney General Eric Holder launched a comprehensive review of the criminal justice system in order to identify reforms that would ensure federal laws are enforced more fairly and more efficiently. This review was part of the Department of Justice’s Smart on Crime Initiative, which has five principal goals: 1) ensuring that finite federal resources are devoted to the most important law enforcement priorities; 2) promoting fairer enforcement of the laws and alleviating disparate impacts of the criminal justice system; 3) ensuring just punishments for low-level, nonviolent convictions; 4) bolstering reentry and prevention efforts to deter crime and reduce recidivism; and 5) strengthening protections for vulnerable populations.
Since the initiative’s announcement, the U.S. Attorney’s Office for the Eastern District has worked with our federal, state, and local law enforcement partners to focus our federal prosecutions on those crimes and criminals in our district that pose the greatest threats to our citizens and involve clear federal interests. To support the implementation of the reentry and prevention aspects of the initiative, the office sought and was awarded funding for two specialist positions. The Reentry and Prevention Outreach Coordinators will help the office to engage with youth and with at-risk populations to help prevent criminal activity, and they will also work with other agencies to support programs and strategies to facilitate the reentry of convicted persons into our communities in ways that maximize their chances of becoming productive citizens. It is anticipated that one coordinator will be based in the Sacramento office and one in the Fresno office.
The job postings for the Reentry and Prevention Outreach Coordinator positions can be found at: https://www.usajobs.gov/GetJob/ViewDetails/420327700 for Sacramento and https://www.usajobs.gov/GetJob/ViewDetails/420328700 for Fresno.
Additional information on the Department of Justice’s Smart on Crime initiative can be found at: http://www.justice.gov/sites/default/files/ag/legacy/2013/08/12/smart-on-crime.pdf.
The President, appearing in Newark, New Jersey today, announced a range of actions to promote rehabilitation and reintegration of formerly incarcerated persons. That announcement can be found at: https://www.whitehouse.gov/the-press-office/2015/11/02/fact-sheet-president-obama-announces-new-actions-promote-rehabilitation.
The United States Government does not discriminate in employment on the basis of race, color, religion, sex, national origin, political affiliation, sexual orientation, marital status, status as a parent, genetic information, disability, age, membership or nonmembership in an employee organization, or on the basis of personal favoritism.
U.S. Attorney's Office Reminds New Jersey Voters to Use Election Day Hotline for Complaints of Voting Irregularities or AbusesRead the Press Release
NEWARK, N.J. – Tuesday, Nov. 3, 2015, is New Jersey’s general election, and U.S. Attorney Paul J. Fishman is reminding voters to use the Election Day Hotline if they suspect voter fraud. The U.S. Attorney’s Office will receive and respond to reports of election irregularities, voter intimidation or any other activities that would interfere with a citizen’s right to vote. The Election Day Hotline – (888) 636-6596 – is active now through Nov. 4, 2015, and will be staffed live on Election Day in English and in Spanish.
The Department of Justice and federal law enforcement partners will work with county boards of election and the New Jersey Attorney General’s Office to respond to complaints and direct them to the appropriate authority.
The Justice Department seeks to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted, without discrimination, intimidation or fraud.
Established in 2010, this yearly initiative is intended to foster public confidence in the integrity of the election process by providing local points of contact within the Justice Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
The Justice Department and federal investigative agencies, led by the FBI, work cooperatively with the state Attorney General’s Office, under the direction of Acting Attorney General John J. Hoffman, to enforce voters’ rights at the polls.
The Department of Justice Civil Rights Division staff in Washington also will be available by phone to receive complaints related to voting rights (1-800-253-3931 toll free or 202-307-2767) or by TTY (202-514-0716). In addition, individuals may also report complaints, problems, or concerns related to voting by fax to 202-307-3961, by email to [email protected], and, by complaint forms that may be submitted through a link on the Department’s website, at http://www.justice.gov/crt/complaint/votintake/index.php.
Two More Commercial Trash Haulers Admit to Bribing Baltimore City Landfill EmployeesRead the Press Release
Baltimore, Maryland – Quentin Turgot Glenn, age 49, of Hanover, Maryland, who owned and operated Glenn Services, LLC, a trash hauling business, pleaded guilty today to conspiracy and bribery in connection with a scheme in which commercial haulers paid Department of Public Works (DPW) employees cash in return for allowing the haulers to deposit trash at the Quarantine Road Landfill (Landfill) without paying the required disposal fees.
Jessie Lee Wilson, Jr., age 40, of Baltimore, who was employed by Glenn Services as a truck driver, pleaded guilty on October 30, 2015 to the conspiracy and bribery.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
The DPW’s Bureau of Solid Waste is responsible for managing Baltimore City’s waste management services, including overseeing citizen drop-off centers, such as the Northwest Transfer Station (NWTS) and the Landfill. Baltimore City’s waste management system generates revenue for the City by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities. The City contracts with private salvage companies to purchase and remove scrap metal from its trash collection facilities. DPW employees at the Landfill and NWTS are required to place the recyclable scrap metal in separate bins provided by the salvage companies. The salvage companies regularly pick up the scrap metal and, based on predetermined prices per ton, the salvage companies pay the City for the value of the scrap metal.
Baltimore City residents can deposit small amounts of trash and/or recyclables in dumpsters located near the main entrance of the Landfill, free of charge. Individuals or companies commercially hauling trash that have registered their vehicles with the City and obtained Landfill permits, as well as Baltimore City residents with larger loads, must deposit their trash in an open area located farther within the Landfill. Commercial haulers of trash that meet certain vehicle weight limitations must, in addition to purchasing a Landfill permit, pay a waste disposal fee of $67.50 per ton of trash deposited at the Landfill.
DPW employees assigned as scale house operators weigh each truck as it enters the Landfill, and record the weight on a computerized point-of-sale system. To activate the system and record a particular transaction, DPW employees must enter the tag number of the truck and a corresponding billing code. The scale house operators reweigh each truck as it leaves the Landfill. The net weight of the deposited trash and the required disposal fee is then calculated and printed on a receipt that is handed to the driver.
According to facts agreed upon by Wilson and Glenn, at times when Wilson drove a truckload of trash to the Landfill, neither he nor Glenn Services was charged a disposal fee. In return, Glenn Services paid scale house employees a bribe of $100 per truckload of trash. After a certain number of unpaid trips, Glenn would arrange for himself or one of his drivers, including Wilson, to meet a scale house operator to pay the balance of the cash bribes.
In a recorded phone conversation on January 23, 2015, Wilson explained to a scale house employee why Glenn Services had not yet paid bribes on dozens of trips to the Landfill. Wilson said he had tried to text the employee using coded language to arrange a meeting, and that he carried the bribery money around in his pocket for so long that he eventually tried to give it back to Glenn, but Glenn insisted that Wilson keep the money until the employee was ready to receive it.
In another recorded phone conversation with the employee on January 29, Wilson said he needed the “numbers for the dinner,” and the employee replied that Glenn Services still owed for 34 trips, or $3,400. In a subsequent call, Wilson confirmed that in addition to paying this amount, Glenn would also pay for the few times Glenn Services was actually charged for dumping (at the FBI’s direction).
On February 1, 2015, Wilson met the employee at a parking lot on Edmondson Avenue in Baltimore City and gave the employee $2,500 in cash. He said that Glenn would give her the rest later in the week, and complained about the times Glenn Services was actually charged a disposal fee, which was a “[c]ouple of them…was like 16, 1700 dollars.”
On April 21, 2015, in a series of phone calls and text messages, the employee told Wilson that Glenn owed for 39 trips since February 1, 2015, plus for five other trips, for a total of $4,400. Wilson arranged a meeting between the employee and Glenn.
On April 23 and 24, Glenn met with the employee, providing a total of $4,000 in cash for 40 trips to the Landfill. Also during the meetings, they agreed to deal directly with each other without going through Wilson or Tamara Washington, another DPW employee, and to try to meet more regularly every time Glenn’s drivers made 10 trips to the Landfill.
From July 1, 2014 to May 1, 2015, Wilson fraudulently gave and agreed to participate in giving DPW employees cash payments in lieu of paying waste disposal fees that totaled more than $5,000.
Glenn and Wilson face a maximum sentence of five years in prison for the conspiracy and 10 years in prison for bribery. U.S. District Judge Marvin J. Garbis has scheduled sentencing for Glenn on January 15, 2016 at 9:30 a.m. and for Wilson on January 12, 2016, at 9:30 a.m.
Former DPW employees Tamara Oliver Washington, age 55, and William Charles Nemec, Sr., age 55, both of Baltimore; and commercial haulers Larry Lowry, age 61, of Orchard Beach, Maryland; Mustafa Sharif, age 63, of Baltimore; and Adam Williams, Jr., age 52, of Randallstown, have pleaded guilty to their participation in the bribery scheme. Nemec and another DPW employee, Michael Theodore Bennett, age 46, also of Baltimore, have pleaded guilty to a related “junking” scheme. Washington and Nemec have each agreed to the entry of an order to pay $6 million in restitution, and Bennett agreed to the entry of an order to pay restitution of $526,273. Sharif, Williams and Lowry have agreed to the entry of an order to forfeit and pay restitution of $500,000, $900,000, and $350,000, respectively.
United States Attorney Rod J. Rosenstein praised the FBI, IRS-CI, Baltimore Office of Inspector General, and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Martin J. Clarke, who is prosecuting the case.
Two Men Convicted for Roles in Multi-State $3.4 Million Burglary SpreeRead the Press Release
NEWARK, N.J. – A North Jersey man and a Brooklyn, New York, man were convicted today on multiple counts in connection with a multimillion-dollar, multi-state burglary spree, U.S. Attorney Paul J. Fishman announced.
Daniel “Tokyo” Gatson, 43, of North Bergen, New Jersey, and Anthony Hanks, 36, of Brooklyn, were each convicted of one count of conspiracy to transport stolen property in interstate commerce; Gatson was convicted of 11 counts, and Hanks three counts, of interstate transportation of stolen property. The two men were convicted following a three-week trial before U.S. District Judge William J. Martini in Newark federal court. The jury deliberated a day and a half before returning the verdicts.
According to documents filed in this case and the evidence at trial:
Gatson, Hanks and four conspirators – who previously pleaded guilty and testified against Gatson and Hanks – took part in 27 burglaries and attempted burglaries in six states, stealing $3.4 million in cash and valuables.
The conspiracy count on which the defendants were found guilty carries a maximum potential penalty of five years in prison. The substantive counts of interstate transportation of stolen property each carry a maximum potential penalty of 10 years in prison. Sentencing is scheduled for Feb. 11, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor John L. Molinelli, with the investigation leading to today’s guilty verdicts.
The government is represented by Assistant U.S. Attorney Joshua Hafetz of the Criminal Division in Newark and Special Assistant U.S. Attorney Thomas S. Kearney, on loan from the Bergen County Prosecutor’s Office.
Defense counsel:
Gatson: Michael Pedicini Esq., Chatham, New Jersey
Hanks: Peter S. Gordon Esq., Forest Hills, New York
Two Men Arrested in Montgomery Following Multi-Agency InvestigationRead the Press Release
Montgomery, Alabama - Daniel Garcia, aka “Cholo” 41, and Jhony Hernandez, aka “Manuel Barrior Ramirez” 23, both from Mexico, were arrested in Montgomery on October 29, 2015, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
The arrests came after a lengthy investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, and Homeland Security Investigations into drug trafficking and prostitution in Alabama and elsewhere. Both Garcia and Hernandez have been charged in a federal indictment alleging that they possessed with intent to distribute controlled substances in the Middle District of Alabama. Garcia is alleged to have possessed and distributed both cocaine and methamphetamine. Hernandez is alleged to have possessed and distributed methamphetamine. Neither man has been charged in the prostitution aspect of the case.
For these crimes, Garcia could face up to twenty years imprisonment and a $1,000,000 fine for his alleged cocaine possession. For his alleged methamphetamine possession, Garcia could face imprisonment for not less than ten years and up to a $10,000,000 fine. Hernandez, for his methamphetamine possession, could face imprisonment for not less than five years and up to a $5,000,000 fine.
An arrest is merely a method of charging a defendant and each defendant is presumed innocent unless and until the defendant=s guilt has been proven beyond a reasonable doubt at trial.
This case was investigated by the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI) Safe Streets Task Force, Homeland Security Investigations (HSI), High Intensity Drug Trafficking Area (HIDTA) Task Force, Alabama Law Enforcement Agency (ALEA), including the State Bureau of Investigations, Department of Public Safety, and the Fusion Center, the Alabama Attorney General’s Office, Montgomery Police Department, Autauga County Sheriff’s Office, Prattville Police Department, Elmore County Sheriff’s Office, Central Alabama Drug Task Force, Auburn Police Department, Millbrook Police Department, Dothan Police Department, Alabama National Guard Counterdrug Program, Albertville Police Department, Marshall County District Attorney’s Office, Marshall County Sheriff’s Office, Marshall County Against Domestic Violence Coalition, and the 19th Circuit District Attorney’s Office. The cases are being prosecuted by Assistant U.S. Attorneys Verne Speirs and Ben Baxley.
Two Former Jailers at the Kentucky River Regional Jail Indicted on Charges Related to the Death of A Pretrial DetaineeRead the Press Release
The Justice Department announced today that a federal grand jury in London, Kentucky, has indicted two former deputy jailers at the Kentucky River Regional Jail on charges related to the July 9, 2013, in-custody death of Larry Trent, a pretrial detainee at the jail. The indictment charges Damon Hickman, 38, and William Howell, 59, with causing Trent’s death, and charges Hickman with attempting to cover up his involvement in the death.
Hickman and Howell are charged with federal civil rights violations for depriving Trent of his civil rights. Count one of the indictment charges Hickman and Howell of failing to provide Trent with necessary medical care after he was injured, thereby acting with deliberate indifference to a substantial risk of harm to Trent, which resulted in Trent’s death. Count two of the indictment also charges both defendants with using excessive force against Trent, resulting in bodily injury to him.
Hickman is additionally charged with one count of obstruction of justice for falsifying an official log by indicating that observations of Trent were being made and that Trent was “10-4,” meaning that he was safe and not in obvious physical distress, when in fact Trent was not “10-4.”
Hickman and Howell face a maximum penalty of life in prison for the death-resulting civil rights offense, and face a maximum penalty of 10 years in prison for assaulting Trent. Hickman faces a maximum penalty of 20 years in prison for falsification of records in a federal investigation.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
The case is being investigated by the FBI’s London Resident Agency, with assistance provided by the Kentucky State Police. The case is being prosecuted by Trial Attorney Sanjay Patel of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Hydee Hawkins of the Eastern District of Kentucky.
Hickman and Howell Indictment
Two Former Jailers at the Kentucky River Regional Jail Indicted on Charges Related to the Death of A Pretrial DetaineeRead the Press Release
hickman_damon_-_indictment.pdf (80.65 KB)WASHINGTON – The Justice Department announced today that a federal grand jury in London, Kentucky, has indicted two former deputy jailers at the Kentucky River Regional Jail on charges related to the July 9, 2013, in-custody death of Larry Trent, a pretrial detainee at the jail. The indictment charges Damon Hickman, 38, and William Howell, 59, with causing Trent’s death, and charges Hickman with attempting to cover up his involvement in the death.
Hickman and Howell are charged with federal civil rights violations for depriving Trent of his civil rights. Count one of the indictment charges Hickman and Howell of failing to provide Trent with necessary medical care after he was injured, thereby acting with deliberate indifference to a substantial risk of harm to Trent, which resulted in Trent’s death. Count two of the indictment also charges both defendants with using excessive force against Trent, resulting in bodily injury to him.
Hickman is additionally charged with one count of obstruction of justice for falsifying an official log by indicating that observations of Trent were being made and that Trent was “10-4,” meaning that he was safe and not in obvious physical distress, when in fact Trent was not “10-4.”
Hickman and Howell face a maximum penalty of life in prison for the death-resulting civil rights offense, and face a maximum penalty of 10 years in prison for assaulting Trent. Hickman faces a maximum penalty of 20 years in prison for falsification of records in a federal investigation.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
The case is being investigated by the FBI’s London Resident Agency, with assistance provided by the Kentucky State Police. The case is being prosecuted by Trial Attorney Sanjay Patel of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Hydee Hawkins of the Eastern District of Kentucky.
The Justice Department and U.S. Department of Housing and Urban Development Announce New Juvenile Re-Entry Assistance ProgramRead the Press Release
New Re-Entry Program Aims to Reduce Barriers to Public Housing, Employment and Educational Opportunities
In an effort to reduce barriers for justice-involved youth, the U.S. Department of Justice and the U.S. Department of Housing and Urban Development (HUD) today announced a new Juvenile Re-Entry Assistance Program: a $1.7 million initiative to help Public Housing Authorities (PHAs) and legal assistance organizations address challenges to housing and employment among justice-involved individuals.
Through the Juvenile Re-entry Assistance Program (JRAP), DOJ and HUD are working collaboratively to help individuals that have paid their debt to society rehabilitate and reintegrate back into their communities. This program specifically excludes those who are convicted of making methamphetamine drugs, sex offenses or domestic violence.
"The Department of Justice is committed to giving justice-involved youth the tools they need to become productive members of society," said Attorney General Loretta Lynch. "Providing meaningful support through housing opportunities, prevention programs and other critical services is vital to our ongoing efforts to reduce recidivism, promote public safety and foster positive results in communities across the country."
Additionally, HUD announced updated public housing arrests guidance to PHAs regarding the use of arrests in determining who can live in HUD-assisted properties. The Guidance outlines that arrest records may not be the sole basis for denying admission, terminating assistance or evicting tenants; and reiterates that HUD does not require PHAs and owners to adopt “One Strike” policies and includes best practices and models of success from PHAs across the nation.
HUD Secretary Julián Castro made these announcements today in Chicago as part of the Obama Administration’s criminal justice and reentry incentive.
“Life is about second chances and offering young people an opportunity to turn away from their mistakes and get back on the right path,” said Secretary Castro. “These grants will allow Public Housing Authorities to help these young people to reach their potential and begin to contribute to their own communities.”
Having a juvenile or a criminal record can severely limit a person’s ability to seek higher education, find good employment, or secure affordable housing. Today, there are nearly 55,000 individuals under age 21 in juvenile justice facilities. These consequences create unnecessary barriers to economic opportunity and productivity, and President Obama and members of his Cabinet continue to take impactful steps to ensure those exiting the justice system become productive, law-abiding citizens.
Tatum, N.M., Man Charged with Violating Federal Narcotics Trafficking LawsRead the Press Release
ALBUQUERQUE – Robert Wraldo Duncan, Jr., 66, of Tatum, N.M., made his initial appearance this morning in federal court in Las Cruces, N.M., on a criminal complaint charging him with violating the federal narcotics trafficking laws. Duncan is being held pending a preliminary hearing and detention hearing scheduled for Nov. 4, 2015.
The criminal complaint, which was filed by the DEA, charges Duncan with possession of marijuana with intent to distribute. It alleges that Duncan committed the offense on Oct. 30, 2015, in Doña Ana County, N.M.
According to the complaint, Duncan was arrested on Oct. 30, 2015, by U.S. Border Patrol agents at the Border Patrol traffic checkpoint on Highway 70, west of Alamogordo, N.M. The arrest was made after the agents allegedly discovered 39 bundles of marijuana weighing an aggregate of 1,116.6 pounds concealed in a horse trailer that Duncan was towing with his vehicle. The agents also allegedly found an unloaded revolver in the center console of Duncan’s vehicle.
If convicted of the marijuana trafficking charge, Duncan faces a statutory minimum of five years and a maximum of 40 years in federal prison. Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of the DEA and the Alamogordo station of the U.S. Border Patrol. Assistant U.S. Attorney Randy M. Castellano is prosecuting the case.
Springfield Man to Serve 25 Years in Federal Prison after 18-Year State SentenceRead the Press Release
Springfield, Ill. – U.S. District Judge Sue E. Myerscough has ordered Charles Raymond Schrode, (SHROH-dee) 33, of Springfield, Ill., to serve 25 years in federal prison for sexual exploitation of a minor and receiving and possessing child pornography. Schrode’s sentencing hearing concluded late Friday, Oct. 30, 2015.
Judge Myerscough ordered that Schrode’s federal sentence be served consecutive to an 18-year sentence with the Illinois Department of Corrections. Schrode pled guilty in February 2014, to a charge of predatory criminal sexual assault in Sangamon County. Judge Myerscough further ordered that Schrode remain on supervised release for life following his release from prison.
On Feb. 24, 2015, Schrode entered open guilty pleas to the federal charges: receipt of child pornography (one count) in May 2012; sexual exploitation of a minor (two counts) in February and March 2013; and possession of child pornography (one count) in June 2013.
The federal charges were investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Gregory K. Harris.
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 (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
SoCal Company Pays $4 Million and Enters into Agreement to Resolve Allegations it Overcharged U.S. Military for Fruit, VegetablesRead the Press Release
LOS ANGELES – A Los Angeles company has paid $4 million to resolve civil allegations that it fraudulently overcharged the U.S. military for fresh fruits and vegetables that it supplied to military dining facilities and Navy ships in Southern California. As part of a second agreement with criminal prosecutors, Coast Produce Company will implement various measures to ensure the company complies with its legal obligations.
Coast Produce Company’s settlement agreements with the government resolve a civil lawsuit and criminal investigation into allegations that the company violated the federal False Claims Act and obstructed an investigation related to two contracts the company had with the Department of Defense (DoD) to supply fresh produce to the military in the Los Angeles and San Diego regions.
The allegations against Coast Produce first surfaced in a “whistleblower” lawsuit filed in 2008 by an industry consultant. To resolve the allegations in the lawsuit, Coast paid a $4 million settlement on September 2, and United States District Judge David O. Carter unsealed and dismissed the civil lawsuit on September 17.
Under its contract with the DoD, Coast Produce allegedly was required to charge only the current prices charged to Coast by its own suppliers for the fruits and vegetables (the “delivered price”), plus an additional fixed $1.50-per-unit distribution fee that included Coast’s profit. The lawsuit alleged that Coast Produce knowingly overcharged the military on the delivered prices in three ways: 1) by instructing two suppliers to provide inflated quotes for produce, which the company then submitted to the DoD as pricing support, while simultaneously instructing the two suppliers to actually bill at their regular lower prices; 2) by charging the DoD more than it paid for bananas and pineapples under long-term fixed-price supply contracts; and 3) submitting artificially high quotes to the DoD – typically from vendors Coast Produce had no intention of buying from – in order to set a payment rate, but then actually purchasing the produce it supplied at lower prices, and keeping the difference.
The settlement arises from a qui tam, or whistleblower, lawsuit originally filed under seal in 2008 by Kevin Driscoll pursuant to the provisions of the federal False Claims Act. The United States Attorney’s Office investigated Mr. Driscoll’s allegations, elected to intervene in the lawsuit, and negotiated the settlement. Pursuant to the False Claims Act, Mr. Driscoll will receive $920,000.
In relation to the criminal investigation, the United States Attorney’s Office on September 2 filed a criminal information against Coast Produce, alleging that the company altered or falsified records. The information alleged that Coast Produce provided false invoices to the DoD when it requested evidence concerning the prices Coast was paying for produce it provided the military. The criminal information was filed pursuant to a Deferred Prosecution Agreement, in which the government agreed to defer any criminal case against Coast Produce for a two-year period in return for the company’s agreement to implement various compliance and remedial measures during that period, among other things. If Coast Produce does not violate the agreement during the 24-month period, the government will not proceed with a criminal case against Coast.
In an ordered signed on Friday, United States District Judge Percy Anderson dismissed the information filed by the government, which can be refiled in the event of a breach of the agreement by Coast.
“The agreements with Coast Produce demonstrate that this office will use all criminal and civil tools at its disposal to ensure that contractors who overcharge the United States military are held accountable,” said United States Attorney Eileen M. Decker. “Companies that supply Produces and services to our military members should know that our office will aggressively investigate those who seek to unlawfully profit from that relationship.”
Chris D. Hendrickson, Special Agent in Charge of the Department of Defense, Defense Criminal Investigative Service, stated: “The government’s settlement agreements with Coast show the continued dedication by the Defense Criminal Investigative Service and the Department of Justice to protect those funds entrusted to the U.S. military. Overcharging the Department of Defense is always reprehensible because it drains precious funds and resources necessary to protect America’s warfighters. The Defense Criminal Investigative Service will continue to investigate any individual or business who pursues personal enrichment at the expense of U.S. taxpayers.”
There is no allegation that the fruits and vegetables supplied by the company were unsatisfactory in quality. Coast Produce agreed to the civil settlement without admitting any wrongdoing. As to the criminal Deferred Prosecution Agreement, Coast admitted the facts attached to the DPA, but did not admit that it committed any crime.
The government’s investigation was conducted by the Defense Criminal Investigative Service, assisted by the U.S. Army Criminal Investigation Command and the U.S. Department of Agriculture’s Office of Inspector General.
Roswell Man Sentenced to Prison for Violating Federal Narcotics Trafficking LawsRead the Press Release
ALBUQUERQUE – Francisco Mejia, 44, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 46 months in prison followed by three years of supervised release for violating federal narcotics trafficking laws.
Mejia was arrested on March 17, 2015, on a criminal complaint charging him with possession of methamphetamine with intent to distribute and being a felon in possession of a firearm on Feb. 24, 2015, in Chaves County, N.M. According to the complaint, the New Mexico State Police executed a search warrant on Mejia’s residence, workshop and vehicles where they seized approximately 29.53 grams of methamphetamine, $5,240.00 in cash, a pistol, ammunition, and drug paraphernalia. At the time, Mejia was prohibited from possessing firearms or ammunition because he previously had been convicted of possession of a controlled substance and being a felon in possession of a firearm.
On June 11, 2015, Mejia pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. Mejia admitted that on Feb. 24, 2015, he possessed 29.53 grams of methamphetamine with intent to distribute. In his plea agreement, Mejia agreed to forfeit the weapon and ammunition seized during the investigation of the case.
This case was investigated by the Roswell office of the FBI, the Chaves County Sheriff’s Office and the New Mexico State Police. Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Registered Securities Agent and Financial Advisor Sentenced to 88-Months in Prison for Defrauding at Least 24 Victims for More Than $1.1 MillionRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of SUSAN ELIZABETH WALKER, 51, to 88-months in prison. WALKER pleaded guilty last year to stealing more than $1.1 million from at least 24 victims who were clients of a financial planning company run by WALKER and her mother. She was sentenced today before Senior U.S. District Judge Michael Davis in U.S. District Court in Minneapolis.
“Susan Walker preyed upon people who trusted her, stealing repeatedly from vulnerable victims over many years,” said Assistant U.S. Attorney Timothy Rank. “She targeted those with modest retirement savings and used their money to satisfy her own greed. Despite her attempts to cover her crimes, they were uncovered by the excellent work of the IRS, FBI and the Fraud Bureau of the Minnesota Department of Commerce. Although Walker’s victims will likely never be made financially whole, the sentence handed down today by the Court is both appropriate and fair, and gives some solace to the people she betrayed.”
“Walker stole her clients’ life savings by abusing her position of trust,” said Minnesota Commerce Commissioner Mike Rothman. “Many of Walker’s victims were seniors who counted on her to manage their accounts responsibly, but instead she diverted their hard-earned savings to finance her own lavish lifestyle. The Commerce Department, and in this case the Commerce Fraud Bureau, is working closely with prosecutors and other law enforcement agencies to stop financial crimes.”
“People rely on the advice and trust the services of their financial advisor to make life decisions. They expect them to be honest and trustworthy,” said Shea Jones, Special Agent in Charge of the IRS Criminal Investigation, St. Paul Field Office. “Ms. Walker violated this expectation, and stole from her clients for her own personal gain. Let this sentence serve as a deterrent to those who may contemplate similar fraudulent actions.”
According to the defendant’s guilty plea and documents filed in court, from October 2008 until March 2013, WALKER provided financial planning services to several clients through her affiliation with Ameriprise Financial Inc. She was a securities agent registered with the Minnesota Department of Commerce, and a financial advisor registered with the Financial Industry Regulatory Authority (FINRA). WALKER stole from her clients by misusing her access to several victim retirement accounts and causing checks to be drawn from victim accounts and deposited into accounts that she controlled.
According to documents filed in court and statements made on the record in court, WALKER also opened investment brokerage accounts in her own name, and in the names of several victim-clients without their knowledge or authorization, which she used to conceal money stolen from other clients. She caused money to be withdrawn from retirement accounts belonging to clients and deposited in those brokerage accounts, which she took for her own personal use. WALKER used the money she stole to pay for, among other things, private school tuition, salon appointments, vehicles and for her own expensive vacation travel.
According to her guilty plea, in addition to stealing from her clients, WALKER also failed to report any of the funds obtained through fraud on her tax returns. The total tax loss on her unreported income is approximately $325,000.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, the Fraud Bureau of the Minnesota Department of Commerce and the FBI, with significant assistance from Ameriprise Financial, Inc, and the Office of the Minnesota Attorney General.
This case was prosecuted by Assistant U.S. Attorney Timothy Rank.
Defendant Information:
SUSAN ELIZABETH WALKER, 51
Plymouth, Minn.
Convicted:
- Mail Fraud, 1 count
- Tax Evasion, 1 count
Sentenced:
- 88 months in prison
- Three years supervised release
- $978,950.51 restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Quincy Man Sentenced for $3.1 Million Forex Investment FraudRead the Press Release
BOSTON – A Quincy man was sentenced to more than four years in prison today in U.S. District Court in Boston in connection with his scheme in to defraud $3.1 million from sixty-five individuals.
Marcellus Lopes Lee, 47, was sentenced by U.S. District Court Judge Indira Talwani to 57 months in prison and three years of supervised release. Judge Talwani also ordered Lee to pay restitution in the amount of $3,159,632, and ordered that his Quincy home, which he purchased with fraud proceeds, be forfeited. In August 2015, Lee pleaded guilty to 16 counts of wire fraud and six counts of money laundering.
Lee owned and operated Taurus Global Markets, Ltd. (TGM), an entity which Lee held out as a company that engaged in foreign currency trading (forex) on behalf of investors. Lee defrauded investors by convincing them to wire funds to TGM’s Belize bank account for the purpose of trading in the highly-risky forex market. Lee, however, did not trade the investor money and instead used it for his personal expenses. Although TGM’s website represented that it had staff, management, and a computer network “distributed all across the world,” TGM, in fact, had no employees and Lee operated it by himself, primarily from his residence in Quincy. Lee also sent investors what purported to be account documents reflecting that their money was invested in the forex market. Eventually, most investors were told that most or all of their money had been lost in forex trading when, in reality, Lee had simply spent it.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
Queens Man Sentenced to 12.5 Years for Sexually Abusing 3 Minor Girls at Fort Hamilton Army BaseRead the Press Release
Earlier today, in federal court in Brooklyn, Fausto Bonifaz was sentenced to 151 months’ imprisonment, to be followed by 20 years of supervised release, for coercing and enticing three minors, ages 12 and 13, to engage in sexual activity. As part of the sentence, the defendant will be required to register as a sex offender. Bonifaz pled guilty in March 2015.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York.
Bonifaz began to sexually abuse the victims in 2009, when they were 12 and 13 years old. Over the course of the next year, he sexually assaulted one of the victims on a weekly basis at her home at the Fort Hamilton Army base, which he admitted at the time of his guilty plea and at sentencing. At sentencing, the government presented evidence that Bonifaz also abused two other minor victims, again at the Fort Hamilton Army base.
In announcing the sentence, Mr. Capers expressed his grateful appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation.
The sentencing proceeding took place before Sr. United States District Judge Raymond J. Dearie.
The government’s case is being prosecuted by Assistant United States Attorney Tiana Demas.
This case was brought as part of Project Safe Childhood, a nationwide initiative to protect children by combatting the sexual exploitation and abuse of minors. Led by United States Attorneys’ Offices around the country, Project Safe Childhood marshals federal, state, and local resources to apprehend and prosecute individuals who exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
The Defendant:
Name: FAUSTO BONIFAZ
Age: 40
Queens, New YorkE.D.N.Y. Docket No. 14-575 (RJD)
Providence Resident Pleads Guilty to Participating in Hobbs Act Robbery ConspiraciesRead the Press Release
PROVIDENCE, R.I. – Allen Prout, 43, of Providence, pleaded guilty in federal court in Providence to two counts of conspiracy to commit Hobbs Act robbery, and one count each of possession of a firearm in furtherance of a crime of violence and being a felon in possession of a firearm, admitting to the court that he participated in two separate Hobbs Act robbery conspiracies.
Appearing before U.S. District Court Judge John J. McConnell, Jr., on Thursday, Prout admitted to the court that on June 2, 2014, he and his co-conspirator took possession of firearms they intended to use to commit a home invasion at a drug stash house in Providence, where they believed two kilos of heroin and a substantial amount of cash were being stored. Prout and his co-defendant, Emmett Blyden, 45, of Providence, were arrested after taking possession of the firearms delivered by an individual who was assisting ATF agents. Blyden pleaded guilty on September 22, 2015, to conspiracy to commit Hobbs Act robbery and being a felon in possession of a firearm.
Prout also admitted to the court that he participated in a conspiracy in September 2012 to rob an individual at gun point of money the victim intended to use to purchase a significant quantity of oxycodone pills. According to court records, Prout and his co-defendant, Kiplagatt Stewart, 41, of Providence, posed as drug dealers in order to gain access to the home of the victim. Instead of selling the victim oxycodone pills, Prout and Stewart robbed the victim at gunpoint of approximately $14,000 in cash.
Kiplagatt Stewart, 41, of Providence, was sentenced on October 22, 2015, to 84 months in federal prison. At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Stewart to serve 3 years supervised release upon completion of his prison term. Stewart pleaded guilty on June 17, 2015, to conspiracy to commit Hobbs Act robbery.
Prout’s guilty pleas and Stewart’s sentence are announced by United States Attorney Peter F. Neronha, West Warwick Police Chief Colonel Richard G. Silva and Daniel J. Kumor, Special Agent in Charge of the Boston field division of ATF.
Allen Prout is scheduled to be sentenced on February 2, 2016. Emmett Blyden is scheduled to be sentenced on January 5, 2016.
The cases are being prosecuted by Assistant U.S. Attorneys Milind M. Shah, with the assistance of First Assistant U.S. Attorney Stephen G. Dambruch and Assistant U.S. Attorney Adi Goldstein.
Providence Police and Rhode Island State Police assisted West Warwick Police and ATF in the investigation of these matters.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Patrick Air Force Base Staff Sergeant Arrested for Enticement of Minor for SexRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Staff Sergeant Thomas Allen Vaughn (33, Patrick Air Force Base, Florida) has been arrested and charged by criminal complaint for enticement of a minor for sex.
According to the complaint, between October 23, 2015, and October 28, 2105, Vaughn communicated by email and text message with and individual he believed was a 14-year-old female “child,” but who was actually an undercover law enforcement officer. During the communications, Vaughn solicited “naughty” pictures from the “child,” informed the “child” that his hobbies included kissing, foreplay, oral, teasing, and sex, and told the child about his genitalia. Subsequently, Vaughn made plans to meet the “child” at an agreed upon location, where he was arrested.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Air Force Office of Special Investigations. It will be prosecuted by Assistant United States Attorney Amanda C. Kaiser.
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.
Owner of Maryland Tax Business Admits to Filing False Tax ReturnsRead the Press Release
A Fort Washington, Maryland man pleaded guilty today to aiding in the preparation of false tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Rod J. Rosenstein for the District of Maryland and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service’s (IRS) Criminal Investigation’s Washington, D.C. Field Office.
Vivencio P. Concepcion, 53, pleaded guilty before U.S. District Judge Paul W. Grimm. According to his plea agreement, Concepcion operated Money Concept Services, a tax return preparation business located in Fort Washington, Maryland. From January 2009 to April 2012, Concepcion prepared more than 24 false federal individual tax returns for more than nine taxpayers using inflated charitable contribution amounts; fictitious unreimbursed employee business expenses and fictitious business income and expenses. As a result, the client-taxpayers received either larger refunds than they were entitled to or a decrease in the amount of taxes due.
Concepcion admitted that his conduct resulted in a tax loss of between $211,666 and $400,000. Concepcion has agreed to the entry of an order requiring him to pay $211,666 in restitution.
Concepcion faces a statutory maximum sentence of three years in prison at his sentencing on Jan. 29, 2016 at 9:00 a.m..
Acting Assistant Attorney General Ciraolo and U.S. Attorney Rosenstein commended the IRS-Criminal Investigation and thanked Assistant U.S. Attorney Lindsay Eyler Kaplan and Trial Attorney Christopher P. O’Donnell of the Tax Division, who are prosecuting the case.
Owner of Bodybuilding Drug Companies Admits to Selling Misbranded DrugsRead the Press Release
Greenbelt, Maryland – Gavin Burns Smith, age 45, of New Port Richey, Florida, pleaded guilty today to selling misbranded drugs with the intent to defraud, in connection with the sale to bodybuilders of peptides which were not approved by the FDA for human use.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office.
“FDA’s system for the review and evaluation of prescription drugs is in place to ensure that only safe and effective drugs reach U.S. consumers,” said Glen A. McElravy, Acting Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Office. “When individuals go outside that system, they place the health of consumers at risk “We will continue to bring to justice those who attempt to market drugs that have not been evaluated by FDA and do not meet FDA standards of protection.”
According to his plea agreement, from 2010 to April 2012, Smith owned and operated Precision Peptides, located in Lutz, Florida. From April 2012 to May 2015, Smith owned and operated DNA Peptides, located in New Port Richey, Florida. Smith placed advertisements on the companies’ websites and sold body-enhancing injectable drugs to individuals seeking to enhance their physiques. These drugs were not approved by the FDA for use in humans.
On August 22, 2012, law enforcement executed federal search warrants at Precision Peptides and DNA Peptides. At some time thereafter, Smith began operating DNA Peptides out of his residence and continuing to sell drugs using a different website to avoid detection by law enforcement.
Smith caused DNA Peptides and Precision websites to display numerous disclaimers stating that all products sold were for “research/laboratory use only.” Additionally, prior to purchasing the products from the website, each customer was asked to certify that he or she read the disclaimer that the “chemicals/materials for sale here are . . . not intended for human ingestion.” Smith used these disclaimers as a ruse to avoid FDA scrutiny. He advertised his products and website extensively in bodybuilding magazines and conventions. Smith hired professional bodybuilders to promote his products and to claim that they personally experienced results from taking certain products he sold. He also provided information to customers, via the company websites and Facebook pages, on how to self-administer drugs, including recommended dosages and placement of the injections, in order to best produce the desired bodily enhancements.
The drugs Smith sold included Growth Hormone Releasing Peptide-2, Growth Hormone Releasing Peptide-6, Melanotan II, Growth Hormone Releasing Hormone, Ipamorelin, Human Growth Hormone Fragment, Mechano Growth Factor, and Dehydroepiandrosterone, none of which the FDA has approved for use in humans.
On seven occasions from November 21, 2011 to March 12, 2015, Smith sold misbranded drugs to an undercover officer and shipped those drugs from Florida to locations in Laurel, Columbia and Beltsville, Maryland. None of the drug shipments included any directions for use of the products. Additionally, although the labels stated that the products were for research only, Smith intended that the products be consumed by humans.
Smith has agreed to the entry of an order requiring him to forfeit $2,102,684.06, the value of the misbranded drugs subject to seizure.
Smith faces a maximum sentence of three years in prison. U.S. District Judge George J. Hazel has scheduled sentencing for January 26, 2016, at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the FDA Office of Criminal Investigations for its work in the investigation and thanked Assistant U.S. Attorneys James A. Crowell IV and Kelly O'Connell Hayes, who are prosecuting the case.
Owner of Shuttered Louisville Microwave Popcorn Company Guilty of Bank FraudRead the Press Release
Louisville, Ky. – The owner of the shuttered Preston Farms Popcorn, LLC (Preston) pleaded guilty to bank fraud today, before Chief Judge Joseph H. McKinley, Jr., in U.S. District Court, for diverting buyers’ payments toward the operation of his business rather than towards the payment of his loan, announced U.S. Attorney John E. Kuhn, Jr.
Kermit W. Highfield, 43, of Louisville, pleaded guilty to a single count of bank fraud, stemming from a business loan from UPS Business Capital Credit (UPS) that was insured by the United States Export-Import Bank (Ex-Im Bank). This loan was an advance on payments due from Preston’s international buyers. Preston defaulted on the UPS loan, and the Ex-Im Bank reimbursed UPS, resulting in a loss of $110,678.74 to the Ex-Im Bank.
According to the plea agreement, between March 18, 2013 and May 30, 2013, Highfield executed a scheme to defraud UPS. Under the terms of the loan, Preston was required to instruct buyers of the product to transmit payments into a specific BB&T Bank account, and those funds were to be used to pay off the UPS loan. However, Highfield admitted to instructing Preston’s buyers to deposit payments into other bank accounts controlled by Highfield and Preston. The funds were diverted from UPS and used by Highfield to pay for Preston operating expenses.
Highfield faces a maximum penalty of 30 years in prison, a fine of $1,000,000 and a five year term of supervised release. Sentencing is scheduled for February 1, 2016, at 11am in Louisville.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by United States Export-Import Bank OIG in Washington, D.C.
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The Ex-Im Bank is the official export credit agency of the United States, and assists in financing the export of U.S. goods and services to international markets. Complaints and reports of waste, fraud, and abuse related to Ex-Im Bank programs and operations can be reported to the OIG hotline at 888-OIG-EXIM (888-644-3946) or via email at [email protected].
Over 21,000 Students to Take Pledge Against Gun ViolenceRead the Press Release
U.S. Attorney Kenneth A. Polite announced that on Wednesday, November 4, 2015, over 21,000 students in over 64 schools across Southeast Louisiana will participate in his Office’s second district-wide Student Pledge Against Gun Violence Day.
Middle and high school students will sign a voluntary pledge promising that they will never take a gun to school, will never resolve a dispute with a gun, and will use their influence to prevent friends from using guns to resolve disputes. Elementary school children will make a simpler commitment, pledging that if they see a gun they will not touch it, they will assume that any gun they see might be loaded, and they will tell a teacher or a trusted adult.
In coordination with the Department of Justice’s Project Safe Neighborhoods program, the Student Pledge Against Gun Violence is a national program that recognizes the role that young people, through their own decisions, can play in reducing gun violence. This campaign against youth gun violence culminates each October in a Day of National Concern about Young People and Gun Violence. Students from around the country will join together in pledging to do their part to end gun violence. Over 10 million students nationwide have signed the pledge since its inception in 1996.
U.S. Attorney Polite stated that his Office began using the pledge during the 2013-14 school year. Because of the outstanding response from school leaders and students, the Office decided to expand the initiative district-wide to include all schools in all 13 parishes, including Assumption, Jefferson, Lafourche, Plaquemines, Orleans, St. Bernard, St. Charles, St. James, St. John the Baptist, St. Tammany, Tangipahoa, Terrebonne, and Washington. "Our Office is pleased to take this opportunity to reach out to students, engage in a dialogue about gun violence and the importance of making right choices, and encourage them to become peacemakers of our time," stated U.S. Attorney Polite.
In addition to providing the pledges, members of the U.S. Attorney’s Office and other state, local, and federal law enforcement agencies will serve as speakers at several schools to talk to students about what they can do to reduce gun violence in their communities.
Participating Schools include:
Alice Birney Elementary School (Jefferson Parish)
Andrew Jackson Middle School (St. Bernard Parish)
Annunciation Catholic School (Washington Parish)
Assumption High School (Assumption Parish)
Bayou L'Ourse Primary School (Assumption Parish)
C.F. Rowley Alternative School (St. Bernard Parish)
Chalmette Elementary School (St. Bernard Parish)
Chalmette High School 9th Grade Academy (St. Bernard Parish)
Davies Elementary School (St. Bernard Parish)
Dwight D. Eisenhower Academy of Global Studies (Orleans Parish)
Edward Hynes Charter School (Orleans Parish)
Eleanor McMain Secondary School (Orleans Parish)
Ella Dolhonde Elementary School (Jefferson Parish)
Fisher Middle-High School (Jefferson Parish)
Frederick Douglass Elementary School (Jefferson Parish)
Garyville Mt. Airy Math & Science Magnet School (St. John Parish)
Gentilly Terrace Charter School (Orleans Parish)
Gretna No. 2 Academy for Advanced Studies (Jefferson Parish)
Hazel Park - Hilda Knoff Elementary School (Jefferson Parish)
International High School of New Orleans (Orleans Parish)
J.C. Ellis School (Jefferson Parish)
KIPP Believe College Preparatory School (Orleans Parish)
KIPP Central City Academy (Orleans Parish)
KIPP McDonogh #15 Middle School (Orleans Parish)
KIPP Renaissance High School (Orleans Parish)
Lacache Middle School (Tangipahoa Parish)
Lacoste Elementary School (St. Bernard Parish)
Lafayette Academy Charter School (Orleans Parish)
Lake Area New Tech Early College High School (Orleans Parish)
Lake Forest Charter School (Orleans Parish)
Lake Pontchartrain Elementary School (St. John Parish)
LaPlace Elementary School (St. John Parish)
Leo Kerner Jr. Elementary School (Jefferson Parish)
Martin Behrman Charter Academy (Orleans Parish)
Mary McLeod Bethune Elementary (Orleans Parish)
McDonogh 26 Elementary School (Jefferson Parish)
Medard H. Nelson Charter School (Orleans Parish)
Mildred S. Harris Elementary (Jefferson Parish)
Ory Magnet Elementary School (St. John Parish)
Patrick F. Taylor Science & Technology Academy (Jefferson Parish)
Pierre A. Capdau Charter School (Orleans Parish)
Phoenix High School (Plaquemines Parish)
Pope John Paul II Catholic High School (St. Tammany Parish)
St. Augustine High School (Orleans Parish)
St. Benedict the Moor (Orleans Parish)
St. Bernard Middle School (St. Bernard Parish)
St. Catherine of Sienna (Jefferson Parish)
St. James Parish Gifted Center (St. James Parish)
St. Peter Claver Catholic School (Orleans Parish)
St. Scholastica Academy (St. Tammany Parish)
Science & Math Academy (St. James Parish)
Sixth Ward Elementary (St. James Parish)
Smith Elementary School (St. Bernard Parish)
South Thibodaux Elementary School (Lafourche Parish)
T. H. Harris Middle School (Jefferson Parish)
The Good Shepherd School (Orleans Parish)
Trist Middle School (St. Bernard Parish)
Vacherie Elementary School (St. James Parish)
Vic A. Pitre Elementary School (Jefferson Parish)
West St. John Elementary School (St. John Parish)
West St. John High School (St. John Parish)
Westbank Community (Jefferson Parish)
Wesley Ray Elementary (Washington Parish)
William Hart Elementary School (Jefferson Parish)
Participating Federal, State and Local Law Enforcement Agencies include:
Bureau of Alcohol, Tobacco, Firearms and Explosives
Federal Bureau of Investigation
Houma Police Department
Jefferson Parish District Attorney’s Office
Jefferson Parish Sheriff’s Office
New Orleans Police Department
Orleans Parish Sheriff’s Office
U.S. Attorney’s Office, Eastern District of Louisiana
U.S. Marshals Service
U.S. Probation and Parole, Eastern District of Louisiana
U.S. Secret Service
Operator of Northeastern Pennsylvania Investment Firm Sentenced to 11 Years for Two Million Dollar Fraud SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jason A. Muskey, age 39, of Moosic, Pennsylvania was sentenced on Friday, October 30, 2015, to 11 years in federal prison by United States District Court Judge Malachy E. Mannion, for diverting approximately two million dollars from clients’ accounts at a financial services firm he owned and operated over a seven year period from 2007 to 2014. Muskey was immediately taken into custody and remanded to the Lackawanna County Prison as he awaits designation to a federal facility to serve his sentence.
According to United States Attorney Peter Smith, Muskey was charged in February 2015 with mail fraud, money laundering, and aggravated identity theft. As presented in court at the time of Muskey’s guilty plea and the sentencing hearing, the evidence showed that Muskey, through his firm, Muskey Financial Services, offered financial advice and investment services to clients.
After being entrusted with client funds, Muskey forged clients’ signatures to obtain funds from his clients’ investment accounts, deposited funds into his personal accounts, and used the money for his own personal benefit. Muskey falsely represented to clients that the funds were being used to better their investments. When clients requested a return or withdrawal of their funds, Muskey took funds from accounts of other clients and purchased cashier’s checks to pay the clients who requested withdrawal. Some of the diverted funds came from individual retirement accounts (IRA’s) of clients. Muskey also used multiple means of identification of his clients to gain access to their funds to carry out his scheme.
According to the United States Attorney’s Office, there were approximately 26 victims of Muskey’s scheme. Several of the victims spoke in court about how Muskey asked them to trust him and then ruined them financially. Several elderly victims spoke about how they worked and saved their entire lives with the hope of not having to rely on others for financial assistance, or to have the opportunity to provide for their grandchildren. All of the victims asked Judge Mannion to impose a severe sentence.
The Government was able to forfeit some of the proceeds of Muskey’s fraud scheme in the amount of approximately $50,000. Muskey was ordered to pay restitution in the amount of $2,664,616.
The investigation was conducted by the United States Secret Service with the assistance of the United States Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorney Michelle L. Olshefski.
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Oakland Resident Sentenced to 30 Months in Prison in False Tax Refund SchemeRead the Press Release
OAKLAND – Kenneth Brown was sentenced to 30 months in prison for conspiracy to file false claims in a fraudulent tax refund scheme, announced Acting United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.
Kenneth Brown, 50, of Oakland, pleaded guilty on July 23, 2015, to conspiracy to file false claims. According to the plea agreement, from April 2009 through June 2011, Kenneth Brown conspired with his daughter, Kenya Brown, to file false federal income tax returns with the IRS. The false tax returns that Kenneth Brown and Kenya Brown filed contained fictitious W-2 forms requesting refunds based on the fictitious W-2s. To carry out the scheme, the defendants asked the IRS to wire the fraudulent tax refunds onto pre-paid debit cards or bank accounts they controlled. For example, Kenneth Brown used his sister’s bank account to receive a fraudulent tax refund. He also listed the bank account number for a beauty supply business he partly owned. The defendants also directed that pre-paid debit cards associated with the fraudulent refunds be sent to addresses where they could access the mail. From 2009 through 2011, Brown obtained $167,152 in illegal proceeds.
The sentence was handed down by the Honorable Jon Tigar, U.S. District Judge. In addition to the prison term, Judge Tigar ordered Brown to a term of 3 years of supervised release and ordered him to pay restitution in the amount of $167,152. Brown will begin serving his sentence on January 4, 2016.
Assistant U.S. Attorney Thomas Newman is prosecuting these cases. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Norfolk Man Sentenced for Drug and Gun CrimesRead the Press Release
NORFOLK, Va. – Clinton Martez Alston, 27, of Norfolk, was sentenced today to 200 months in prison for possession with intent to distribute heroin and for possessing a gun as a convicted felon.
Alston pleaded guilty on June 30, 2015. According to court documents, on Aug. 5, 2014, Norfolk Police arrested Alston as he arrived at a location in Norfolk to sell heroin to a confidential informant. Norfolk Police searched Alston and the vehicle he was in and found a .45 caliber handgun, 87 capsules of heroin, and small amount cocaine and crack cocaine. Alston has prior felony convictions for robbery and carjacking.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney William D. Muhr prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-179.
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New York Man Sentenced to More Than 17 Years in Federal Prison for Sex Trafficking of MinorsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that EDWARD THOMAS, also known as “Fire,” 41, of New York, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 210 months of imprisonment, followed by 10 years of supervised release, for sex trafficking of minors. THOMAS also was ordered to pay $28,700 in restitution.
According to the evidence introduced during his trial, in September 2012, THOMAS, a New York-based pimp, answered an Internet prostitution advertisement for a 17-year-old girl (“MV1”) in Oregon. Over the next month, THOMAS recruited and enticed MV1 to travel to New York to work for him. MV1 eventually agreed and traveled to New York with a second girl (“MV2”), who was 16 at the time, using bus tickets purchased by THOMAS. THOMAS discussed with both MV1 and MV2 that they would be prostituting for him in New York and Connecticut.
After MV1 and MV2 arrived in New York, THOMAS and the two minor girls went immediately to a hotel in Milford, Connecticut, where they met Kayla Walters, THOMAS’ co-defendant, and posted prostitution advertisements. THOMAS knew that MV1 and MV2 were under the age of 18. In Milford, MV1 and MV2 saw customers for commercial sex acts at the direction of THOMAS. While MV2 escaped from a hotel room window after several hours, MV1 continued to work for THOMAS for about a month, turning over all of the money she earned in prostitution to THOMAS. When MV1 attempted to leave, THOMAS forcibly restrained her. Ultimately, MV1 was recovered for the first time by the FBI and local police in Milford on November 8, 2012. Law enforcement seized nearly $4,000 in cash from THOMAS during the first recovery, along with several computers and cellular phones.
THOMAS recruited MV1 a second time in July 2013 and again paid for her travel from Oregon to the East Coast. After THOMAS sent Walters and MV1 to Connecticut to make money for him, the FBI and local police again recovered MV1 from a hotel in Milford.
“For more than a decade, this defendant made his living from the commercial sexual exploitation of women, including young girls,” said U.S. Attorney Daly. “He preyed on the vulnerabilities of two girls whom he lured across the country thousands of miles away from their families. This cruel victimization of defenseless young women – a form of modern day slavery – will not be tolerated. Prosecuting these offenses is a top priority for the Department of Justice. This significant sentence will protect society and future victims from this defendant, and sends a clear message that those who sexually exploit minors will be held accountable. We thank the FBI and the Milford and Stratford Police Departments for their excellent work in this investigation. We will continue to work closely with our law enforcement partners to rescue girls and young women from brutal environments and prosecute those who profit from this reprehensible and illegal conduct.”
THOMAS and Walters have been detained since their arrests on February 28, 2014.
On January 26, 2015, a jury found THOMAS guilty of one count of conspiracy to commit sex trafficking of a minor and two counts of sex trafficking of a minor.
THOMAS’s criminal history includes a 2007 conviction in New Jersey for promoting prostitution with a child under the age of 18.
On November 10, 2014, Walters pleaded guilty to one count of conspiracy to commit sex trafficking of a minor. Her sentencing is scheduled for November 30, 2015.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The Stratford and Milford Police Departments assisted the investigation.
The case is being prosecuted by Assistant U.S. Attorneys David E. Novick and Sarala V. Nagala.
New Orleans Man Pleads Guilty to Failing to Register as Sex OffenderRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DONALD GEORGE BUTLER, JR., age 51, of New Orleans, pled guilty today to failing to register as sex offender.
According to court documents, in 1997, BUTLER was convicted of sexual battery in New Orleans, and as a result, was required to register as a sex offender for the rest of his life. After being released from prison in 2009, BUTLER moved to Texas without notifying the appropriate authorities. Consequently, in 2010, BUTLER was charged with, and pled guilty to, failing to register as a sex offender in the Western District of Texas. Upon his release from federal custody in about November 2012, BUTLER moved back to Louisiana without notifying law enforcement authorities in either Texas or Louisiana. BUTLER lived in Louisiana, without notifying any law enforcement authorities, until he was located by Inspectors with the United States Marshal’s Service in July 2014.
BUTLER faces up to ten years in prison and a $250,000 fine. U.S. District Judge Sarah S. Vance set sentencing for February 24, 2016.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Polite praised the work of the United States Marshal’s Service in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Netcracker Technology Corp. and Computer Sciences Corp. Agree to Settle Civil False Claims Act AllegationsRead the Press Release
NetCracker Technology Corp. has agreed to pay $11.4 million and Computer Sciences Corp. (CSC) has agreed to pay $1.35 million to resolve allegations under the False Claims Act that they used individuals without security clearances on a Defense Information Systems Agency (DISA) contract, the Justice Department announced today. NetCracker is a telecom software and services company headquartered in Waltham, Massachusetts, and CSC is an information technology services company with its headquarters in Falls Church, Virginia.
“Protecting the federal procurement process from false claims is central to the mission of the Department of Justice,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to ensure that the government receives what it pays for when federal monies are used to purchase services.”
“Companies that do business with the federal government have a responsibility to fully meet the terms of their contracts,” said U.S. Attorney Channing D. Phillips of the District of Columbia. “In addition to holding these two companies accountable for their contracting obligations, this settlement shows that the U.S. Attorney’s Office will take appropriate measures necessary to ensure the integrity of government communications systems.”
“This NetCracker case is a prime example of how the DISA IG works to detect and prevent fraud schemes within the Agency and recuperate funds for the U.S. government,” said Colonel Bill Eger, Inspector General (IG) of DISA.
NetCracker and CSC implemented software used to help manage the telecommunications network used by the U.S. Department of Defense. The work was done pursuant to a contract with DISA, under which CSC was the prime contractor and NetCracker was a CSC subcontractor. From 2008 through 2013, NetCracker allegedly used employees without security clearances to perform work when it knew the contract required those individuals to have security clearances, resulting in CSC recklessly submitting false claims for payment to DISA.
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. The civil lawsuit was filed in the District of Columbia by John Kingsley, a former NetCracker employee. Mr. Kingsley will receive $2,358,750 as his share of the recovery in this case.
This resolution in this matter was the result of a coordinated effort between the U.S. Attorney’s Office of the District of Columbia, the Civil Division’s Commercial Litigation branch and the DISA IG Office.
The lawsuit is captioned United States ex rel. Kingsley v. NetCracker Technology Corp. Civil Action 1:11-cv-00629 (D.D.C.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
NetCracker Technology Corp. and Computer Sciences Corp. Agree to Settle Civil False Claims Act AllegationsRead the Press Release
WASHINGTON – NetCracker Technology Corp. has agreed to pay $11.4 million and Computer Sciences Corp. (CSC) has agreed to pay $1.35 million to resolve allegations under the False Claims Act that they used individuals without security clearances on a Defense Information Systems Agency (DISA) contract, the Justice Department announced today.
NetCracker is a telecom software and services company headquartered in Waltham, Mass., and CSC is an information technology services company headquartered in Falls Church, Va. NetCracker and CSC implemented software used to help manage the telecommunications network used by the U.S. Department of Defense. The work was done pursuant to a contract with DISA, under which CSC was the prime contractor and NetCracker was a CSC subcontractor. From 2008 through 2013, NetCracker allegedly used employees without security clearances to perform work when it knew the contract required those individuals to have security clearances, resulting in CSC recklessly submitting false claims for payment to DISA.
“Protecting the federal procurement process from false claims is central to the mission of the Department of Justice,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to ensure that the government receives what it pays for when federal monies are used to purchase services.”
“Companies that do business with the federal government have a responsibility to fully meet the terms of their contracts,” said U.S. Attorney Channing D. Phillips of the District of Columbia. “In addition to holding these two companies accountable for their contracting obligations, this settlement shows that the U.S. Attorney’s Office will take appropriate measures necessary to ensure the integrity of government communications systems.”
“This NetCracker case is a prime example of how the DISA IG works to detect and prevent fraud schemes within the Agency and recuperate funds for the U.S. government,” said Colonel Bill Eger, Inspector General (IG) of DISA.
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. The civil lawsuit was filed in the District of Columbia by John Kingsley, a former NetCracker employee. Mr. Kingsley will receive $2,358,750 as his share of the recovery in this case.
This resolution in this matter was the result of a coordinated effort between the U.S. Attorney’s Office of the District of Columbia, the Civil Division’s Commercial Litigation branch and the DISA IG Office.
The lawsuit is captioned United States ex rel. Kingsley v. NetCracker Technology Corp. Civil Action 1:11-cv-00629 (D.D.C.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Navajo Man from Arizona Pleads Guilty to Federal Child Sexual Abuse Charges in New MexicoRead the Press Release
ALBUQUERQUE – Aaron Hubbard, 34, an enrolled member of the Navajo Nation who resides in Fort Defiance, Ariz., pled guilty this morning in federal court in Albuquerque, N.M., to a felony information charging him with abusive sexual contact of a minor child. Under the terms of his plea agreement, Hubbard will be sentenced to ten years in prison followed by not less than three years of supervised release. Hubbard will be required to register as a sex offender after completing his prison sentence.
Hubbard was arrested on Feb. 25, 2015, on an indictment alleging that he sexually abused the child victim from Sept. 1, 2011 through May 30, 2012, in the Navajo Indian Reservation in McKinley County, N.M.
During today’s change of plea hearing, Hubbard entered a guilty plea to an abusive sexual contact with a child charge. In entering his guilty plea, Hubbard admitted sexually molesting a Navajo child who was less than 12 years old from Sept. 1, 2011 through May 30, 2012. Hubbard committed the crime within the Navajo Indian Reservation.
Hubbard has been in the custody of the U.S. Marshals Service since his arrest and will remain detained pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Raquel Ruiz-Velez 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/.
Montana Man Sentenced to 84 Months for Unlawful Gun PossessionRead the Press Release
POCATELLO - Frank Lewis White, 55, of Great Falls, Montana, was sentenced today to 84 months in prison followed by three years of supervised release for unlawful gun possession, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered White to forfeit his interest in the firearm. White was convicted by a federal jury on August 12, 2015.
During the three-day trial, the jury heard evidence that on October 4, 2014, White was pulled over and arrested, for outstanding warrants, in Idaho Falls, Idaho. Upon being instructed to exit his car, White told officers that he had a loaded gun under his seat. According to trial testimony, the gun had been in White’s car since the day before, when White had driven another individual to a pawn shop to retrieve the gun.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Idaho Falls Police Department, and the Ada County Sheriff’s Office Laboratory.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Mexican National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JAIRO JACIEL JIMENEZ-HERNANDEZ, age 29, a citizen of Mexico, was charged today in a one-count Indictment with illegal reentry of a removed alien.
According to the Indictment, JIMENEZ-HERNANDEZ reentered the United States on or about August 30, 2015, after having been previously deported on May 17, 2012. If convicted, JIMENEZ-HERNANDEZ faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement Agency in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Massachusettes Man Sentenced to 147 Months in Federal Prison on Drug Distribution and Firearms ChargesRead the Press Release
CONCORD, NEW HAMPSHIRE – Acting United States Attorney Donald Feith announced that Roger Perkins, age 33, formerly of Methuen, Massachusetts, was sentenced to 147 months in federal prison for conspiracy to possess with the intent to distribute 28 grams or more of cocaine base (“crack”), possession of a firearm by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime. Perkins pleaded guilty to the charges on July 21, 2015.
On March 25, 2014, the Laconia Police executed search warrants on Perkins’ vehicle and for a residence associated with Perkins. The police seized $317 cash, 42 grams of cocaine, 15.25 grams of cocaine base (“crack”), a quantity of psychedelic mushrooms, a small amount of MDMA, and a box containing 100 razor blades from Perkins’ vehicle. The search of the residence resulted in the seizure of four firearms, three of which were loaded. Police also recovered 21 grams of cocaine and 6.87 grams of cocaine base (“crack”), $1,000 cash and two digital scales from inside a safe located in a bedroom closet.
As part of his plea agreement, Perkins admitted that he conspired with Windyanne Plunkett to possess the drugs with the intent to distribute them from the residence. On July 29, 2015, Plunkett, 31, of Laconia, appeared before Judge McCafferty and pleaded guilty to the drug conspiracy charge. Plunkett is scheduled to be sentenced on January 11, 2016.
Perkins was a person prohibited from possessing firearms as a result of his December 20, 2005 felony conviction in the Belknap County Superior Court of Possession of Cocaine.
Judge McCafferty sentenced Perkins to 87 months of imprisonment for the drug trafficking and felon in possession charges. Judge McCafferty then imposed an additional mandatory consecutive sentence of 60 months of imprisonment for Perkins’ possession of firearms in furtherance of his drug trafficking.
Upon release from the Federal Bureau of Prisons, Perkins will be on supervised release under the supervision of the United States Probation Office for at least five years and as much as life. Should Perkins violate the terms of his supervised release, he could be sentenced to an additional prison term.
The investigation was conducted by the Laconia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jennifer Cole Davis is prosecuting the case.
Los Angeles Man Convicted of Sexually Abusing Minors while in RussiaRead the Press Release
A Los Angeles man was found guilty of sexually abusing three minor girls during trips to Russia over a two-year period. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division made the announcement.
Yusef Yunosovich Abramov, 58, was convicted on Friday night after a four-day jury trial of six felony counts, including engaging in illicit sexual conduct in foreign places and traveling in foreign commerce with the intent to engage in illicit sexual conduct. He is scheduled to be sentenced on Jan. 6, 2016.
According to the evidence introduced at trial, in June 2009, Abramov, a dual Russian and U.S. citizen, flew from Los Angeles to Russia, and shortly after his arrival, he violently raped a 12-year-old girl and threatened to sever her head and play soccer with it if she told anyone about the abuse. The trial evidence showed that, in November 2009, Abramov again traveled to Russia and engaged in further sexual abuse of minor girls while there.
In addition, according to the evidence presented at trial, in March 2010, believing that local schoolgirls had contacted the police, Abramov and two accomplices cornered three minor girls. Abramov threatened all three girls while wielding a knife and each man then raped one of the girls. The evidence showed that, after threatening the girls’ lives, Abramov continued to rape at least two of the girls during his subsequent trips to Russia.
In April 2014, following an investigation by Russian and U.S. authorities, Abramov was arrested in Los Angeles. He has remained in custody since then.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, in cooperation with The Investigative Committee of the Russian Federation and the Moscow City Police. The case is being prosecuted by Trial Attorneys Maureen C. Cain and Ravi Sinha of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). The Criminal Division’s Office of International Affairs also provided assistance with this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Leader of Fraud Scheme Sentenced to 42 Months in Prison for Creating and Using Counterfeit Checks to Buy Merchandise and Gift CardsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Sheree Lanet Brown, age 36, of Washington, D.C., today to 42 months in prison, followed by three years of supervised release, for being the leader of a scheme to defraud Target by using counterfeit checks to purchase over $485,000 in gift cards and merchandise. Judge Chasanow also entered an order requiring Brown to forfeit and pay restitution of $485,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge James Murray of the United States Secret Service - Washington Field Office.
According to her plea, from September 2011 to November 2013, Brown conspired with Ebony Ruffin, Nichelle Rogers, and others to use counterfeit personal checks in various aliases and false identifications to fraudulently obtain Visa gift cards and other merchandise from Target stores in Maryland, District of Columbia, Virginia, West Virginia, Pennsylvania and North Carolina. Brown was the leader of the conspiracy, as she created and printed the counterfeit checks, which she used to purchase Visa gift cards and merchandise from Target. Brown kept the amount of the fraudulent checks below $300, to avoid triggering the additional scrutiny required by Target for checks over that amount. Brown also gave counterfeit checks to Ruffin and Rogers in exchange for Visa gift cards and merchandise they fraudulently obtained by using the counterfeit checks. Brown and her co-conspirators used the gift cards to purchase gift cards and merchandise from other retailers, such as Nordstrom, later returning the merchandise for cash. Brown and her co-conspirators presented over 1,400 counterfeit checks as payment for merchandise and gift cards, resulting in a total loss to Target of at least $485,000.
For example, from October 6 through October 18, 2013, Brown and a co-conspirator presented false identification and nine counterfeit checks, totaling $2,589.85, at Target stores in Frederick, Hagerstown and Aberdeen, Maryland and in Plymouth Meeting, Pennsylvania, to purchase a total of 16 Visa gift cards and other merchandise. On October 10, 2013, Brown redeemed three of the fraudulently obtained Visa gift cards at a Nordstrom store in Columbia, Maryland, to purchase three Nordstrom gift cards totaling $300. Brown later returned the purchased merchandise at Nordstrom for cash.
Ebony Nicole Ruffin, age 29, of District Heights, Maryland, and Nichelle Nicole Rogers, age 28, of Washington, D.C., previously pleaded guilty to their participation in the scheme and were sentenced to 27 months in prison and 30 months in prison, respectively. Ruffin was also ordered to pay restitution of $485,000.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service for its work in the investigation and thanked Assistant U.S. Attorneys Kelly O'Connell Hayes and Thomas P. Windom, who prosecuted the case.
Leader and Co-Conspirator in Baltimore Heroin Distribution Organization Plead GuiltyRead the Press Release
Baltimore, Maryland – Richard Smith, age 31, and Bruce Jeffries, age 36, both of Baltimore, Maryland each pleaded guilty today to conspiracy to distribute and possess with the intent to distribute heroin.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, beginning in at least January 2014 and continuing through December 10, 2014, Smith conspired with others to distribute heroin in Baltimore. According to Jeffries’ plea, he joined the conspiracy in August 2014. During the conspiracy, Smith and Jeffries met with co-conspirators to provide heroin for distribution by members of the conspiracy. Smith was the supervisor of this conspiracy and was responsible for providing the heroin distributed by the co-conspirators. Between September and November of 2014, law enforcement intercepted telephone conversations between Smith, Jeffries, and other conspirators. During these calls, Smith and Jeffries were heard discussing the distribution and payment for various amounts of heroin. Smith was also intercepted giving members of the conspiracy instructions regarding the distribution of narcotics. On November 14, 2014, law enforcement executed a search warrant at a “stash” house used by members of the conspiracy. During the search, law enforcement recovered 400 gel capsules of heroin from inside the stash house, along with another 100 gel capsules of heroin from a co-conspirator. This seizure precipitated intercepted phone conversations between Jeffries, Smith, and another co-conspirator regarding the seizure.
Smith and Jeffries agree that during their participation in the conspiracy, the conspirators were responsible for the distribution of between one and three kilograms of heroin. To date, 12 co-conspirators, including Smith and Jeffries, have pleaded guilty to their roles in the heroin distribution conspiracy and one defendant has been sentenced to seven years in prison. The remaining defendants are awaiting sentencing.
Smith and the government have agreed that if the Court accepts the plea agreement Smith will be sentenced to 12 years in prison. Jeffries faces a mandatory minimum of five years and a maximum of 40 years in prison. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for Smith and Jeffries on December 14 and December 15, respectively, each at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore City Police Department, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Matthew Hoff, a cross-designated Baltimore City Assistant State’s Attorney, part of the Baltimore initiative to combat violent crime, who is prosecuting the case.
Kettering Woman Sentenced for Role in Pill RingRead the Press Release
DAYTON – Amanda R. Pappert, 31, of Kettering, Ohio, was sentenced in U.S. District Court to 18 months in prison and three years of supervised release for conspiracy to possess and distribute Oxycodone.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, Rocky Nelson, Director of the Ohio Organized Crime Investigations Commission, Wendell Willcox, Director, Tactical Crime Suppression Unit, Anthony Mohat, Supervising Agent in Charge, U.S. Department of Agriculture Office of Inspector General, Chicago Division, Kettering Police Chief Christopher Protsman, Centerville Police Chief Bruce Robertson and Germantown Police Chief Roy McGill, Jr. announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
The Ohio Organized Crime Investigations Commission in Attorney General DeWine’s Office investigated the case.
According to court documents, Pappert became part of a conspiracy to fabricate, falsify and forge various Dayton based physicians’ prescriptions for Oxycodone, Hydrocodone and Alprazolam. The group would fill the prescriptions at various retail pharmacies throughout the Greater Dayton area. Once obtained, the prescription drugs would thereafter be sold to various drug dealers and addicts in return for cash and illegal narcotics.
Pappert pleaded guilty on June 5 to one count of conspiracy to possess and distribute Oxycodone. She was charged by one-count bill of information on April 21. Pappert was also ordered to complete 100 hours of community service.
Co-defendants in the conspiracy include: Christian P. Fannon, Brian A. Siler, Sandy Earnstean Bryson, Elaina Marie Morocho, Mandy Marie Ernestine McGhee, Sean Aaron Ring, Justin Michael Crouch and Candice Page Crouch.
U.S. Attorney Stewart commended the cooperative investigation by the task force agencies which include the Internal Revenue Service Criminal Investigation (IRS), the U.S. Department of Agriculture Office of Inspector General – Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Ohio Bureau of Criminal Investigation (BCI), the Ohio Investigative Unit, and the police departments in Centerville, Kettering, West Carrollton, Moraine and Oakwood, and the Tactical Crime Suppression Unit. He also commended Assistant U.S. Attorney Dwight Keller, who prosecuted the case.
Kenton County Man Sentenced to 200 Months for Trafficking HeroinRead the Press Release
COVINGTON — A Covington, Ky., man has been sentenced to 200 months for distributing heroin in Kenton County.
On Friday, U.S. District Judge Amul Thapar sentenced Johnny J. Shands for distribution of heroin. Shands’ criminal history qualified him as a career offender and led to an enhanced sentence. His prior convictions include weapons offenses and trafficking cocaine. Under federal law, Shands must serve at least 85 percent of his prison sentence; and following the completion of his sentence, he will be under the supervision of the U.S. Probation Office for 12 years.
According to court records, Shands sold heroin to undercover officers, on multiple occasions, in early 2015. Authorities conducted searches at multiple residences and found cash, heroin and fentanyl that belonged to Shands. Shands pled guilty in July and admitted that he distributed between 100 and 400 grams of heroin.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Howard S. Marshall, Special Agent in Charge, Federal Bureau of Investigation, jointly made the announcement.
The investigation was conducted by the FBI Safe Streets Task Force and the Covington Police Department. Assistant U.S. Attorney Tony Bracke prosecuted this case on behalf of the federal government.
Jury Convicts Bois D'Arc Man of Bank Fraud Related to $1.6 Million HomeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Bois D’Arc, Mo., business owner was convicted Friday, October 30, at trial of a bank fraud scheme related to the construction of his $1.6 million residence.
Michael R. Ussery, 58, of Bois D’Arc, was found guilty of 12 counts of bank fraud in a Dec. 14, 2011, federal indictment.
Ussery was the owner/operator of two businesses in 2007, USS Properties and Villa Properties, both of which purchased real estate for residential development. During this time, Ussery also was building a $1.6 million home for himself in Bois D’Arc. Mid-Missouri Bank agreed to provide a $1.6 million construction loan to build the residence; $1.15 million was used to pay off the previous bank which had financed the construction of the residence up to that point, and the remaining $450,000 was supposed to have gone to completing the construction of the residence. When persons worked on the house, Ussery was supposed to obtain an invoice and a lien waiver from the contractors and submit these documents to Mid-Missouri Bank, which would then make a disbursement of the amount owed to Ussery’s personal bank account.
A dozen invoices and lien waivers totaling $315,417 were submitted to Mid-Missouri Bank from May 29 to June 25, 2007, purportedly from persons or companies building the residence, to draw money from the $1.6 million loan amount for construction of the residence. In fact, each invoice and lien waiver was false, faked or forged. They were either created by, or caused to be submitted by, Ussery, and contained materially false or fraudulent, representations. The companies or persons who were indicated on the fraudulent invoices and lien waivers did not prepare or submit the invoices and lien waivers, did not perform the work on the property as indicated in the invoices, did not agree to waive any lien on the residence for work actually done on the property, and did not receive any payments for work done as indicated in the invoices.
Auditors at the bank visited the construction site in June and July of 2007 and saw nothing that would indicate that this amount had been spent on the construction of the residence, apart from the hanging of drywall. Mid-Missouri Bank actually deposited $315,417 into the defendant’s personal account based upon the fraudulent representations contained in the lien waiver and invoice documents. It appears that the money, which had been meant for building the house, was used instead for business relating to USS Properties or Villa Properties.
Ussery eventually stopped construction on the Bois D’Arc property and the bank had to foreclose on the loan. The bank took a $782,349 loss after the sale of the property with its partially finished house. Ussery filed for bankruptcy relief in 2011.
Although not charged in the indictment, evidence introduced during the trial indicated that Ussery also committed similar fraudulent activity against a husband and wife who hired him to build a personal residence in Greene County, Mo. Ussery started construction of the house in 2007, but did not complete the project. The victim clients discovered that Ussery was providing false lien waivers to Great Southern Bank to obtain loan draws from the construction loan.
Evidence introduced during the trial also indicated that Ussery or his company submitted false lien waivers to obtain construction loan draws in 2005 from First Midwest Bank in Jackson, Mo., which would also be considered relevant conduct that was not charged in the indictment.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for about four hours and fifteen minutes before returning the guilty verdict on Friday night to U.S. District Judge M. Douglas Harpool, ending a trial that began Monday, Oct. 26, 2015.
Under federal statutes, Ussery is subject to a sentence of up to 30 years in federal prison without parole for each count of bank fraud, plus a fine and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Assistant U.S. Attorney Patrick Carney. It was investigated by IRS-Criminal Investigation, the U.S. Secret Service and the Springfield, Mo., Police Department.
Jonesboro Woman Sentenced for Lying and Buying Firearm used to kill Omaha, Nebraska Police OfficerRead the Press Release
ATLANTA - Jalita Jenera Johnson has been sentenced for lying when she bought a gun and 50-round drum magazine for her convicted felon boyfriend, Marcus Wheeler. Wheeler later used the gun and magazine to kill an Omaha, Nebraska, police officer while the officer was attempting to serve a warrant on Wheeler for his arrest.
“The tragic result in this case is a stark reminder of how firearm purchasing laws are designed to protect the public,” said U.S. Attorney John Horn. “Ms. Johnson’s case shows that if you buy a gun for someone else and lie about it, you never know where that gun will end up or what it will be used for. Illegally bought guns not only pose a risk to our community, but any other community where the gun is ultimately taken.”
“This sentence serves as a reminder to all law enforcement that we need to remain vigilant in curtailing the illegal trafficking of firearms in order to protect the safety of innocent civilians,” said ATF Special Agent in Charge Carl Walker.
According to U.S. Attorney Horn, the charges and other information presented in court: In April 2015, Jalita Jenera Johnson bought a Glock semiautomatic firearm, a 50‑round drum magazine, and ammunition from a pawnshop in Jonesboro, Georgia. When Johnson bought the firearm, she was required to fill out a Bureau of Alcohol, Tobacco, Firearms and Explosives Form 4473. That form requires the purchaser of the firearm to disclose the identity of the true buyer or transferee of the firearm. Johnson stated on the form that she was the true buyer. But in fact, Johnson was buying the firearm for her boyfriend, Marcus Wheeler, who was a convicted felon and so could not buy the gun for himself. Wheeler provided Johnson with the money to buy the gun and magazine. He also directed Johnson on which gun and magazine to buy.
In May 2015, using the gun and magazine that Johnson bought for him, Wheeler got into an armed confrontation with the City of Omaha Police Department in Omaha, Nebraska, during which Wheeler used the Glock firearm to shoot and kill an Omaha Police Officer. Wheeler also was killed during the shootout.
Jalita Jenera Johnson, 26, of Jonesboro, Georgia, has been sentenced to one year of probation, 40 hours of community service, and 180 days’ home confinement. Johnson was convicted on these charges on August 19, 2015, after she pleaded guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Mary L. Webb prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Inmate Sentenced to 30 Days in Prison for Possessing PhoneRead the Press Release
JOHNSTOWN, Pa. – Ivan Hernandez pleaded guilty and was sentenced in federal court to 30 days in prison with no supervised release to follow, on his conviction of possession of contraband in prison while an inmate at the Moshannon Valley Correctional Center, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Ivan Hernandez, 33.
According to information presented to the Court, on July 30, 2013, Hernandez possessed a phone, which is a prohibited object under prison regulations.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
Mr. Hickton commended the Office of the Inspector General of the United States Department of Justice for the investigation leading to the successful prosecution of Hernandez.
Guilty Plea of Sequoia Forest Marijuana CultivatorRead the Press Release
FRESNO, Calif. —Uriel Silva-Garcia (Silva), 24, of Turicato, Michoacán, Mexico, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana and possessing firearms in furtherance of a large-scale cultivation operation located near Little Poso Creek in the Sequoia National Forest, United States Attorney Benjamin B. Wagner announced.
According to court documents, Silva was paid to plant and tend about 8,596 marijuana plants on public land. To facilitate the cultivation activities, Silva possessed a loaded rifle and handgun. The cultivation caused extensive damage to the land and natural resources. Native trees and plants were cut down and steep hillsides were terraced to plant the marijuana. Pesticides, including malathion, fertilizer, water lines, trash, clothing and camping equipment were scattered throughout the site. Silva has agreed to reimburse the U.S. Forest Service for the cleanup costs.
Co-defendant Antonio Garcia-Villa, 46, pleaded guilty on October 26, 2015. Both defendants are scheduled to be sentenced on January 19, 2016, by Senior U.S. District Judge Anthony W. Ishii. They face a maximum statutory penalty of 20 years in prison and a $1 million fine for the drug conspiracy and a mandatory minimum consecutive term of five years in prison for the firearm charge. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables. They also face deportation to Mexico upon completion of any prison term imposed.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Goldsboro Man Sentenced to 120 Months for Drug and Firearm ChargesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today, Senior United States District Judge W. Earl Britt sentenced SHAWNTANNA LEMARUS THOMPSON, 27, of Goldsboro, to 120 months imprisonment followed by 3 years of supervised release. On August 3, 2015, THOMPSON pleaded guilty to possession with intent to distribute a quantity of marijuana and to felon in possession of a firearm charges.
On August 8, 2014, a Goldsboro Police Officer responded to a call about a subject who was waving a gun in the air. Upon his arrival, the officer observed THOMPSON, who matched the subject’s description. Upon seeing the officer, THOMPSON quickly stood up and walked away. With his back to the officer, THOMPSON reached into his waistband and retrieved a revolver which he threw into nearby bushes. The officer located the revolver which was a loaded Smith & Wesson, .38 special revolver. The officer also recovered 11 grams of marijuana and 98 small baggies from THOMPSON’S person. Once at the jail facility, additional marijuana was located on THOMPSON.
On October 17, 2014, a Goldsboro Police Officer responded to a disturbance call in Goldsboro. As the officer approached the scene, he heard multiple gunshots and observed THOMPSON standing with his hand behind his back. As the officer passed, THOMPSON moved his hands to the front of his body and the officer noticed the butt of a handgun in THOMPSON’S hand. The officer exited his vehicle and ordered THOMPSON to stop and to show his hands. THOMPSON fled from the officer. The officer searched the path where THOMPSON was running and found a loaded Radom P35 9mm handgun which had the serial number scratched off.
Investigation of this case was conducted by the Goldsboro Police Department and by the Bureau of Alcohol Tobacco Firearms and Explosives. Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.
Former attorney in Van Wert accused of stealing hundreds of thousands of dollars from clientsRead the Press Release
A former attorney from Van Wert was charged with one count of mail fraud for allegedly stealing hundreds of thousands of dollars from his clients, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Charles Allan Runser, 72, advised clients on wills, estates and trusts, served as executor of clients' estates and served as guardians for clients, according to the criminal information.
Runser illegally obtained hundreds of thousands of dollars from clients in this capacity, by writing checks to himself, falsifying his law firm's accounting system to create phantom accounts, withdrawing client funds for personal use, selling client securities to enrich himself, misrepresenting the amount of assets in trusts to probate court, and other actions, according to the information
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigations, Lima Resident Agency. The case is being prosecuted by Assistant United States Attorneys Noah P. Hood and Gene Crawford.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Telemarketing Manager Sentenced to Federal PrisonRead the Press Release
Orlando, Florida – Senior U.S. District Judge John Antoon, II has sentenced Tammie Lynn Cline (33, Leominster, MA) to two years and six months in federal prison for her role in the operation of a boiler room. She also was ordered to pay more than $1.2 million in restitution to her victims. Cline pleaded guilty on July 17, 2015.
According to court documents, Cline and her codefendant, Mark Gardner (28, Osteen, FL), operated a boiler room in Central Florida. Along with the telemarketers who worked at their call center, they would make unsolicited calls to owners of timeshare properties located throughout the United States. During those calls, they claimed that they worked for Universal Timeshare Sales Associates (UTSA) out of Beaverton, Oregon, that UTSA had a purchaser who was interested in buying a timeshare, and that the timeshare owner just needed to pay a fee between $1,600 and $2,200 for the sale to proceed.
In order to convince timeshare owners to pay the fee, Gardner, Cline, and their telemarketers would sometimes claim that an interested purchaser was present in the showroom ready to buy a timeshare, that a buyer had already deposited money into an escrow account for the sale, or that the sale would take place in about 90 days. Those representations were false. The timeshares were not sold as had been promised, and members of the conspiracy would deny or ignore requests for refunds, and would dispute chargebacks with the credit card companies.
In total, victims lost more than $1.2 million due to operation of the telemarketing call center.
In May 2013, the Federal Trade Commission and the Florida Attorney General’s Office filed a civil action against Gardner, Cline, and others in federal court. In June 2014, the district court entered a permanent injunction against them related to certain telemarketing practices.
Gardner previously pleaded guilty to conspiracy to commit mail fraud and wire fraud and money laundering. His sentencing hearing is scheduled for December 3, 2015.
This case was investigated by Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.