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Wednesday 28 October 2015
Department of Justice and Department of Health and Human Services Announce $1.5 Million in Funding to Increase Support for Male Violence Survivors and Support Safe Streets ExpansionRead the Press Release
The Department of Justice and Department of Health and Human Services (HHS) today announced $1.5 million in new federal grants focused on violence prevention efforts in Baltimore.
Joining Administrator Robert L. Listenbee of the Justice Department’s Office of Juvenile Justice and Delinquency Prevention at a press conference to announce the grants were Deputy Director Kristina Rose of the Justice Department’s Office for Victims of Crime, Regional Director Joanne Grossi of the Department of Health and Human Services, Baltimore Mayor Stephanie Rawlings-Blake and Baltimore Health Commissioner Dr. Leana Wen.
“At the Department of Justice, we firmly believe that a public health approach – one that fights not just the symptoms but the root causes of violence – is the most effective and sustainable way to prevent and reduce crime in our communities,” said Administrator Listenbee. “What is so tremendously gratifying about these efforts is that they are all the direct result of partnerships – between Safe Streets Baltimore, the health department, the schools, the faith community and agencies across the federal government. We are proud to make these investments and honored to be part of this exciting work.”
“Violence devastates individuals and families and can undermine the very fabric of our communities,” said Regional Director Grossi. “The good news is that there is hope – we know what works to prevent violence. The federal government is looking forward to collaborating with NACCHO and the city of Baltimore to prevent the violence and foster a safe and healthy environment for all residents.”
The three grants from the U.S. Department of Justice include:
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$999,564 from the Office for Victims of Crime to more effectively reach male survivors of violence and their families.During the three-year project period, these partners will convene a planning group to develop a culturally-relevant, trauma-informed curriculum for survivors, establish a standardized and multidisciplinary shooting response protocol and implement a plan to increase public awareness of the effects of trauma and victimization.
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$278,000 from the Office of Juvenile Justice and Delinquency Prevention for the National Forum on Youth Violence Prevention to implement strategies and evidence-based programs to reduce youth violence.As a means of addressing school climate issues, the Baltimore City Health Department and the Baltimore Public School System aim to enhance the capacity of schools to successfully implement and sustain the school-wide positive behavioral interventions and support (PBIS) model.
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$70,000 from the Office of Juvenile Justice and Delinquency Prevention to integrate the faith community into activities aimed at the prevention and reduction of youth violence and victimization within and around the Safe Streets Baltimore areas.Specifically, this funding will support a Faith Community Coordinator position to conduct outreach to Baltimore’s diverse faith-based community which serves and surrounds the Safe Streets areas.
Additionally, the Department of Health and Human Services, through the Centers for Disease Control and Prevention, has awarded the National Association of County and City Health Officials (NACCHO) with $175,000 to fund a pilot of Safe Streets in the Sandtown-Winchester neighborhood of Baltimore.
A request for proposals is currently offering community-based organizations in West Baltimore the opportunity to bring the program credited with reducing gun violence to their neighborhoods.
In 2014, Safe Streets workers had 15,000 client interactions and mediated 880 conflicts. More than 80 percent of interactions were deemed to be “likely” or “very likely” to result in gun violence. Three of the four sites have gone over a year without a fatal shooting.
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Columbia Man Indicted for Illegal FirearmsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was indicted by a federal grand jury today for illegally possessing firearms and ammunition.
Adrian Lamont Levy, 32, of Columbia, was charged in a two-count superseding indictment returned by a federal grand jury in Jefferson City, Mo. Today’s indictment replaces an Aug. 19, 2015, federal indictment and includes an additional charge of being a felon in possession of firearms and ammunition.
Today’s indictment alleges that Levy, who has been convicted of felony crimes, was in possession of a Smith & Wesson 9mm pistol, a Kel Tec 9mm rifle, a Century Arms rifle, an SWD Incorporated pistol, a Glock 9mm pistol, a Metro Arms .45-caliber pistol and ammunition on Sept. 2, 2015.
The indictment also contains the original count of being a felon in possession of a firearm. Levy allegedly was in possession of a Ruger 9mm pistol on July 4, 2015.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
Clermont Woman Sentenced to 9 Years in Federal Prison for Investment FraudRead the Press Release
Ocala, Florida – Senior U.S. District Judge Wm. Terrell Hodges has sentenced Jenifer E. Hoffman (39, Clermont) to nine years in federal prison for conspiracy to commit wire fraud and filing a false tax return. She was also ordered to pay more than $10.7 million in restitution. Hoffman pleaded guilty on June 29, 2015.
According to court documents, Hoffman and her two conspirators, John C. Boschert (43, Apopka) and Bryan T. Zuzga (39, Coldwater, Michigan), defrauded over $10 million from more than 100 victims through investments offered in connection with a company called Assured Capital Consultants. As part of their solicitations, the conspirators represented to investors that money would be placed in a Performing Private Placement Investment, and that Boschert had connections to the trading program being used. Investors were told that their investments would be safe and that none of their money would leave the attorney escrow account that belonged to Zuzga, who was represented as being an attorney licensed in Florida. Investors were further advised that their funds would be used as collateral for a line of credit, which would then be used in trading.
None of those representations were true. Zuzga was not an attorney licensed in Florida or any other state, and the funds were not deposited into any escrow account controlled by him. Instead, the three operated a scheme in which money from later investors was paid to earlier investors. The three also used some of the money from the scheme for themselves, including purchasing residences for Hoffman and Zuzga.
In a prior civil proceeding, the United States forfeited two residences belonging to Hoffman and Zuzga, which had been purchased with proceeds from the scheme. The government obtained more than $850,000 from the sale of the two properties, and the proceeds from those sales were distributed to the victims of the scheme.
Boschert and Zuzga previously pleaded guilty for their roles in this scheme. On June 23, 2015, Boschert was sentenced to nine years in federal prison. Zuzga was sentenced on September 24, 2015, to six years in federal prison.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the United States Secret Service, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Roger B. Handberg, James Mandolfo, and Nicole M. Andrejko.
Christopher Anthony Burkett Pleads Guilty to Producing and Distributing Child PornographyRead the Press Release
KNOXVILLE, Tenn. - Christopher Anthony Burkett, 42, of Knoxville, Tenn., pleaded guilty on October 28, 2015, in U.S. District Court for the Eastern District of Tennessee, to using a minor to produce child pornography and to distributing child pornography.
Pursuant to his plea agreement, Burkett admitted that, from July 2014 through September 2014, he posed as a 19-year-old man on Facebook and solicited two minors to send pornographic images of themselves to him via the Internet. Burkett also admitted to sending pornographic images of one minor victim to another minor victim via the Internet in order to coax the recipient to send him additional pornographic pictures of herself.
Sentencing has been set for 11:00 a.m., March 24, 2016. Burkett faces a mandatory minimum sentence of 15 years and maximum of up to 50 years in prison, as well as supervised release following incarceration, restitution, and fines. Burkett will also be required to register as a sex offender in any state in which he lives, works, or attends school.
This investigation was conducted by the Knoxville Police Department’s Internet Crimes Against Children Task Force. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Charlotte, North Carolina Man Sentenced to 25 Years for Scheme to Engage in Sextortion, Coercing Minor to Engage in Sex, and Distribution of Images Depicting the Sexual Victimization of ChildrenRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHN MICHAEL FOWLER, age 51, from Charlotte, North Carolina, was sentenced today after previously pleading guilty to engaging in illicit sexual conduct in a foreign place, distribution and receipt of images depicting the sexual victimization of children, transmitting interstate communications with the intent to extort, and coercion and enticement of a minor to engage in criminal sexual activity.
U.S. District Judge Ivan L.R. Lemelle sentenced FOWLER to serve 300 months in prison, to be followed by ten years of supervised release. Additionally, FOWLER will be required to register as a sex offender.
According to court documents, in about September 2011, FOWLER met Victim 1, a 16-year-old female, and they developed a sexual relationship. Thereafter, when Victim 1 sought to end the relationship, FOWLER became angry and threatened to tell her family and the principal of her school about the relationship. He also threatened to send sexually explicit photographs of Victim 1 to her school and family. As a result of these threats, FOWLER continued to have sex with Victim 1 until about August 2013. FOWLER also sent sexually explicit pictures of Victim 1 via e-mail on numerous occasions.
In about August 2013, Victim 1 enrolled in a university in the New Orleans area and moved to the Eastern District of Louisiana. FOWLER continued to harass Victim 1. When Victim 1 sought to end the relationship, FOWLER threatened to harm her friends and siblings. He also sent sexually explicit photographs of Victim 1 to classmates at Victim 1’s school. Further, FOWLER contacted four of Victim 1’s classmates via e-mail in August 2014 and informed them that Victim 1 worked as a prostitute and was mentally unstable.
Beginning on about August 29, 2014, an FBI Special Agent assumed Victim 1’s identity and began corresponding with FOWLER via cellular phone. FOWLER promised not to hurt Victim 1’s sibling if Victim 1 agreed to allow FOWLER to come to New Orleans and have sex with her. Thereafter, FOWLER came to New Orleans and was arrested.
A search of FOWLER’S e-mail account and cellular phone revealed that, in addition to his victimization of Victim 1, FOWLER also sought and downloaded numerous images and videos of children as young as approximately two years old being sexually victimized. Moreover, law enforcement authorities learned that FOWLER met Victim 2, a fifteen-year-old boy, in Charlotte, North Carolina via an online classified advertisement website in July 2014 and, over the next month, coerced Victim 2 to engage in sexual acts with him.
“We thank the FBI and the Charlotte Police Department for their outstanding work in this case,” stated U.S. Attorney Polite. “Today’s lengthy sentence reflects our commitment to protecting our young people from sexual exploitation.”
“This matter is taken very seriously by everyone in the FBI’s New Orleans Office,” stated Acting Special Agent in Charge Jeff Dutton. “In addition, the FBI’s New Orleans Child Exploitation Task Force continues to work relentlessly in order to identify and locate any and all online child predators. “
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 Federal Bureau of Investigation, with assistance from the Charlotte, North Carolina Police Department in investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
Business Owner Pleads Guilty to Money Laundering Related to K2 DistributionRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of Puff N Snuff, LLC, with two locations in Camdenton and Eldon, Mo., pleaded guilty in federal court today to his role in a money-laundering conspiracy related to the distribution of synthetic marijuana, commonly referred to as K2.
Charles Sterling Austin, Jr., 63, of St. Charles, Mo., pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to participating in a money-laundering conspiracy. As the owner of Puff N Snuff, Austin also pleaded guilty to the same charge on behalf of the company.
By pleading guilty today, Austin admitted that he purchased synthetic marijuana from several sources and sold it in his smoke shop. Austin knew that his customers were using these synthetic cannabinoids as a drug. The packages of synthetic cannabinoids bore trade names such as, “Mayan,” “Island Breeze,” “4bidden,” “Remix,” “Cheap Trip,” “Dr. Feel Good,” “White Rabbit,” “XXXtreme Bliss Blueberry Sky,” “Deathgrip,” and others. These packages also bore false representations that the contents were “incense” and “not for human consumption” when, in fact, these products contained synthetic cannabinoids that were intended for human consumption as a drug. The false labeling was intended to defeat the regulation of these drugs by the Food and Drug Administration and assure customers that they were not purchasing an illegal high. Undercover law enforcement agents purchased synthetic cannabinoids from Puff N Snuff on multiple occasions during 2012 and 2013.
According to today’s plea agreement, Austin made at least 28 bulk purchases of synthetic cannabinoids from at least two sources totaling $707,412 between Aug. 3, 2012, through Feb. 19, 2013.
During the four-month period from Aug. 27 through Dec. 30, 2012, Austin deposited $1,687,180 into Puff N Snuff’s bank account from the proceeds of the sale of synthetic cannabinoids, comingled with the proceeds from the sale of other products.
On Sept. 10, 2013, law enforcement officers seized $423,327 from the business bank account. Under the terms of today’s plea agreement, Austin must forfeit those funds to the government.
According to today’s plea agreement, Austin wrote seven checks from Puff N Snuff’s bank account totaling $134,750 as payment for construction of the Puff N Snuff building located at 1900 U.S. 54 Business in Eldon, Mo. Austin admitted that the purchase of the land and the construction cost of the Puff N Snuff building was paid for with proceeds from the sales of synthetic cannabinoids. Under the terms of today’s plea agreement, Austin must forfeit the property to the government. Austin must also forfeit to the government a money judgment of $707,412.
Under federal statutes, Austin is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $500,000. Puff N Snuff is subject to a sentence of up to five years of probation and a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, Homeland Security Investigations, the Columbia, Mo., Police Department, the MUSTANG Task Force, the LANEG Drug Task Force, the Cole County, Mo., Sheriff’s Department, the Morgan County, Mo., Sheriff’s Department, the Camden County, Mo., Sheriff’s Department, the Camdenton, Mo., Police Department, the Missouri State Highway Patrol, the Kirksville, Mo., Police Department, the North Missouri Drug Task Force, the Schuyler County, Mo., Sheriff’s Department, the Edina, Mo., Police Department, the Linn County, Mo., Sheriff’s Department and the Brookfield, Mo., Police Department.
Birmingham Physician Sentenced for Illegally Supplying Opioid PainkillersRead the Press Release
BIRMINGHAM -- A Birmingham physician charged in May with illegally supplying controlled substances must serve four years' probation and never seek reinstatement of the license that allowed him to write prescriptions, announced U.S. Attorney Joyce White Vance, DEA Assistant Special Agent in Charge Clay A. Morris and Alabama Law Enforcement Agency Secretary Spencer Collier.
U.S. District Judge Virginia Emerson Hopkins today sentenced PETER ALAN LODEWICK, 73, a physician at Lodewick Diabetes Center on Montclair Road, on one count of assisting someone else in acquiring the narcotic painkiller, oxycodone, by "misrepresentation, fraud, forgery, deception, and subterfuge." The judge sentenced Lodewick in accordance with a binding plea agreement he entered with the government. Lodewick had voluntarily surrendered his Drug Enforcement Agency Controlled Substances Registration in January.
Lodewick was one of three Birmingham-area physicians charged this spring as part of DEA's Operation Pilluted in Alabama, Arkansas, Louisiana and Mississippi, which focused on reducing trafficking and abuse of pharmaceuticals. ERNEST ALBERT CLAYTON, 72, a physician in Midfield, was sentenced in September for distributing methadone without a legitimate medical purpose. He received four years' probation, a $20,000 fine and was ordered to surrender his medical license and his DEA registration.
The third doctor, MUHAMMAD WASIM ALI, 51, who owns a pain clinic in Jasper, is scheduled for trial Nov. 9 in federal court in Tuscaloosa on charges of illegally distributing narcotic painkillers for other than legitimate medical purposes.
Lodewick admitted in his guilty plea that he issued prescriptions for large amounts of opiates, between May 2013 and December 2014, to two of his patients, even after learning they were pharmacy-shopping with his prescriptions. He discovered the pharmacy-shopping in May 2013 and wrote the two patients letters terminating their physician-patient relationship, but continued to write them opiate prescriptions, according court documents.
DEA, ALEA and Internal Revenue Service, Criminal Investigation, investigated the cases. Assistant U.S. Attorney E. Wilson Hunter is prosecuted Lodewick's case.
Army Employee Pleads Guilty to Stealing More Than 90 Computers from Aberdeen Proving GroundRead the Press Release
Baltimore, Maryland – Brian Lee Long, age 48, of Rising Sun, Maryland pleaded guilty today to theft of government property.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Special Agent Ed Collins of the U.S. Army Criminal Investigation Command.
According to Long’s plea agreement, from April 8, 2001 through January 21, 2015, Long was employed at the Kirk U.S. Army Health Clinic at Aberdeen Proving Ground, initially as a paramedic, then as a supply technician at the Logistics Division. Long admitted that from October 1, 2014 through December 31, 2014, he stole 73 laptop computers, 19 desktop computers and three monitors from the Logistics Division warehouse.
Long sold at least 19 of the stolen laptop computers and four of the stolen desktop computers to pawn shops for $18,400. Long also provided four laptop computers to another person, who sold them to a pawn dealer.
The total loss to the government as a result of Long’s conduct was $40,000, which is the amount Long is required to forfeit as part of his plea agreement.
Long faces a maximum sentence of 10 years in prison for theft of government property. U.S. District Judge George L. Russell, III has scheduled sentencing for February 12, 2016 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the FBI and U.S. Army Criminal Investigation Command for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Aaron S. J. Zelinsky, who is prosecuting the case.
Arkansas Chiropractor Sentenced for Federal Tax CrimeRead the Press Release
An Arkansas chiropractor was sentenced today to serve 17 months in prison, followed by one year of supervised release announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney Kenneth Elser of the Western District of Arkansas.
“Today’s sentence sends a clear message that the department, working with its law enforcement partners, will aggressively pursue and prosecute those individuals who willfully seek to obstruct the Internal Revenue Service and evade their tax obligations,” said Acting Assistant Attorney General Ciraolo.
According to court documents, Philip Roberts, 60, of Fort Smith, Arkansas, had an outstanding federal income tax liability of more than $2 million for tax years 1991 through 2004. In 2008, Roberts filed a series of false and fraudulent documents with the Internal Revenue Service (IRS) in an effort to obstruct and impede the tax laws, including filing false financial instruments that claimed millions of dollars of transactions with both the Secretary of the Treasury and the IRS Commissioner, and filing forms that falsely reported payments to the IRS.
Roberts pleaded guilty on June 22 to corruptly endeavoring to obstruct and impede the IRS. U.S. District Judge Timothy L. Brooks of the Western District of Arkansas also ordered Roberts to pay a $3,000 fine. This is Roberts’ second conviction for income tax related offenses. In 2000, after a jury trial, Roberts was convicted of two counts of willfully failing to file federal income tax returns and sentenced to serve 16 months in prison.
“An important part of our mission is to protect the integrity of the Federal tax system,” said J. Russell George, Treasury Inspector General for Tax Administration (TIGTA). “TIGTA will vigorously investigate individuals who attempt to corruptly interfere with the administration of the Internal Revenue laws through fraudulent means, and will do everything within its power to ensure that those involved will be prosecuted to the fullest extent of the law.”
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Elser commended the Treasury Inspector General for Tax Administration, who investigated the case, as well as Trial Attorneys Robert A. Kemins and David Zisserson of the Tax Division and Assistant U.S. Attorney Kimberly Davis of the Western District of Arkansas, who prosecuted the case.
Albuquerque Man Sentenced to Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Pablo Rocha, 34, of Albuquerque, N.M., was sentenced today in federal court in Las Cruces, N.M., to 151 months in prison followed by five years of supervised release for his methamphetamine trafficking conviction.
Rocha was arrested in Aug. 2013, and co-defendants Tony Daugherty, 47, also of Albuquerque, and Danielle McKee, 25, and Wilson Smith, 47, both of Alamogordo, N.M., were charged on Aug. 27, 2013, in an indictment charging them with conspiracy to distribute methamphetamine and possession of methamphetamine with intent to distribute. The indictment alleged that the conspiracy existed from July 30, 2013 through Aug. 7, 2013, in Otero and Bernalillo Counties, N.M.
The indictment was superseded on Dec. 17, 2013, to add Fabian Jaquez-Lazo, 25, a Mexican national residing in Albuquerque, as a defendant. In addition to charging all four defendants with participation in a methamphetamine distribution conspiracy, the superseding indictment also included four substantive counts charging the defendants with distributing methamphetamine in Bernalillo and Otero Counties.
On April 10, 2014, Rocha plead guilty to the superseding indictment and admitted that on July 31, 2013, he and his co-conspirators distributed 84.1 grams of methamphetamine to an undercover agent in Bernalillo County. Rocha also admitted they distributed 120.2 grams of methamphetamine to an undercover agent on Aug. 7, 2013, in Otero County. He also admitted that he and Daugherty distributed 16u grams of methamphetamine to an undercover agent in Bernalillo County on Aug. 15, 2013, and that on Aug. 29, 2013 he, Daugherty and Jaquez-Lazo distributed 201.2 grams of methamphetamine to an undercover agent.
On April 3, 2014, Jaquez-Lazo pled guilty to the conspiracy count and a distribution count of the superseding indictment. The next day, Daugherty pled guilty to all counts of the superseding indictment against him. On April 10, 2014, Smith pled guilty to the conspiracy count and two distribution counts of the superseding indictment. All three men remain in custody pending sentencing hearings.
This case was investigated by the FBI, DEA, the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Tuesday 27 October 2015
Wright County Egg Investigative Team Honored at the 18th Annual Council of the Inspectors General on Integrity and Efficiency AwardsRead the Press Release
CEDAR RAPIDS - On October 22, 2015, the team that investigated Jack and Peter DeCoster and their egg company following a national foodborne illness outbreak were honored at the 18th Annual Council of the Inspectors General on Integrity and Efficiency (CIGIE) awards ceremony in Washington D.C. The team received the CIGIE Gaston L. Gianni, Jr. Better Government Award. Among the team members honored was Assistant U.S. Attorney Peter Deegan with the United States Attorney’s Office for the Northern District of Iowa.
In 1978 the Inspector General Act established Offices of Inspectors General within federal agencies to combat fraud, waste, and abuse and to improve the economy and efficiency of program operations. The Inspectors General community has nearly 14,000 professionals conducting audits, investigations, and inspections among other duties. The CIGIE is composed of Inspectors General and government ethics and law enforcement officials.
The Gaston L. Gianni, Jr. Better Government Award is given annually to recognize persons who contribute to attaining the ideals of the Inspector General Act and work toward improving the public’s confidence in government.
The Wright County Egg investigative team was honored based upon its exemplary work investigating and prosecuting Jack and Peter DeCoster and their Iowa egg company, Quality Egg LLC (Quality Egg), in the wake of one of the largest foodborne illness outbreaks in U.S. history. As many as 56,000 people were sickened as a result of eating eggs associated with the outbreak.
In the course of its investigation, the team uncovered evidence that company personnel bribed an inspector of the U.S. Department of Agriculture (USDA) to release eggs that had been retained or “red tagged” for failing to meet minimum quality grade standards. In a guilty plea, Quality Egg acknowledged that, on at least two occasions in 2010, its employees gave a cash bribe to a USDA inspector.
As a result of the investigation and prosecution, both Jack and Peter DeCoster were sentenced to serve three months in prison and fined $100,000. Quality Egg was ordered to pay a fine of $6.79 million and placed on probation for three years. All three defendants were ordered to make restitution in the total amount of $83,008.19. Quality Egg also agreed to forfeit $10,000 as part of its plea agreement.
“The 72 federal Inspectors General Offices have one of the most difficult and important jobs in all of government,” said Attorney General Loretta E. Lynch at the awards ceremony. “It is a task basic to the functioning of our democracy: the task of ensuring that ours is a government not just of the people, but for the people – one sensitive to their concerns; responsive to their needs; and respectful of their sacrifices, whether in tax dollars or tours of duty.”
United States Attorney for the Northern District of Iowa, Kevin W. Techau, stated, “I am very pleased to congratulate Assistant U.S. Attorney Peter Deegan and our federal partners at the U.S. Department of Agriculture, the Food and Drug Administration, the Federal Bureau of Investigation, and the Consumer Protection Division of the Department of Justice for receiving the CIGIE award. This recognition stems from multiple federal agencies working closely together to protect consumers by investigating, prosecuting and convicting Jack and Peter DeCoster and their egg company following one of the largest national foodborne illness outbreaks ever experienced in the country. This award highlights the importance of effective government oversight in the area of food safety.”
Other members of the Wright County Egg investigative team who were honored with the award are identified in the attached congratulatory notice from the Council of the Inspectors General on Integrity and Efficiency. team_award.pdf (88.64 KB)
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Wrangell Father and Son Plead Guilty to Charges Relating to Violations of the Lacey ActRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a father and son from Wrangell, Alaska were arraigned and pled guilty in Juneau federal court to charges related to violations of the Lacey Act while fishing for halibut in the Gulf of Alaska.
Charles “Chuck” J. Petticrew Sr., 70, and Charles “Jeff” J. Petticrew Jr., 42, residents of Wrangell, Alaska, were charged by information with offenses related to Lacey Act violations. Both defendants appeared before United States District Court Judge Timothy M. Burgess who took the defendant’s guilty pleas. Between June 28, 2010, and continuing until May 20, 2013, Petticrew Sr. and Petticrew Jr. conspired to falsify fishing locations on Alaska Department of Fish and Game (ADF&G) Longline Fishery Logbook entries, IFQ landing permits, and ADF&G Halibut Tickets indicating that they fished in Management Area 3A, when in fact, they had only fished Management Area 2C. Petticrew Sr., pled guilty to a single felony count of conspiracy to falsify Individual Fishing Quota (IFQ) records. Petticrew Jr., plead guilty to a single misdemeanor count for violating the Lacey Act by falsifying IFQ records during the same time period. Judge Burgess set sentencing for both defendants on January 4, 2016.
Assistant U.S. Attorney Jack S. Schmidt, who is prosecuting the case, indicated that the law provides for a maximum sentence of five years in prison, a fine up to $250,000, or both, for the charges related to Petticrew Sr. and a year in prison, a fine up to $100,000, or both, for the charges related Petticrew Jr.
Both defendants have signed plea agreements with the government, in which the government and the defendants agree to jointly recommend to the court that Petticrew Sr. pay a fine of $90,000 and Petticrew Jr. will pay a fine of $10,000, for a total combined fine of $100,000 to pay. The agreement further recommends that Petticrew Sr. and Jr. be placed on probation for a period of five years and during their probation period, both agree to install and pay for a Vessel Monitoring System (VMS) for the vessel used by the defendants or any other vessel who is fishing on behalf of the family corporation. The recommendation is subject to the approval of the court at sentencing.
The National Oceanic and Atmospheric Administration, Office of Law Enforcement, Alaska Enforcement Division conducted the investigation leading to the charges in this case.
Winchester Man Pleads Guilty to Heroin Conspiracy Charge Faces at Least A Ten Year Federal SentenceRead the Press Release
CONCORD, NEW HAMPSHIRE – Acting United States Attorney Donald Feith announced today that Jamie Hilow, age 28, of Winchester, New Hampshire pleaded guilty before United States District Judge Landya B. McCafferty to Conspiracy to Distribute one kilogram or more of heroin, in violation of Title 21, United States Code, Sections 846 and 841.
An offer of proof made during the change of plea hearing established that Hilow was employed as a runner for a drug trafficking organization headed, authorities allege, by Ross Gould, age 28, of Richmond, New Hampshire. Hilow distributed heroin for Gould to numerous individuals in and around Keene. On March 16, 2015, Gould was charged federally with possession with the intent to distribute heroin after search warrants executed at his Richmond, New Hampshire residence and another residence utilized by Gould to store narcotics on March 10, 2015 resulted in the seizure of over a kilogram of heroin, a large quantity of cocaine, prescription pills, currency, and 14 firearms.
“The United States Attorney’s Office is committed to working with our local, state and federal law enforcement partners to address the significant presence of heroin in New Hampshire,” stated Acting United States Attorney Donald Feith. “This case is a classic example of the results that can be achieved when resources are pooled and directed towards the sources of this dangerous drug.”
Hilow is detained pending his sentencing on February 16, 2016. Hilow faces a mandatory minimum sentence of ten years of imprisonment and a maximum sentence of life, a fine up to 10 million dollars and a term of supervised release of at least five years and as much as life. Supervised release is a period following Hilow’s incarceration during which he will be under the supervision of the United States Probation Office.
The investigation was conducted by the: (1) Immigration and Customs Enforcement, Homeland Security Investigations; (2) New Hampshire Attorney General’s Drug Task Force; (3) Bureau of Alcohol, Tobacco, Firearms and Explosives; (4) New Hampshire State Police; (5) Keene, New Hampshire Police Department; (6) Richmond, New Hampshire Police Department; and (7) Salem, New Hampshire Police Department. Assistant United States Attorney Jennifer Cole Davis is prosecuting the case.
Waterloo Settles Clean Water Act ViolationsRead the Press Release
CEDAR RAPIDS – The United States Attorney’s Office for the Northern District of Iowa, Environmental Protection Agency and the State of Iowa have reached a proposed settlement resolving allegations of Clean Water Act violations by the City of Waterloo. The agreement will require the city to assess its sanitary sewer system and develop a master plan to eliminate unlawful sewer overflows, including discharges of sewage into the Cedar River and sewage backups into homes and businesses.
A proposed consent decree, lodged yesterday in U.S. District Court for the Northern District of Iowa requires Waterloo to perform comprehensive assessments of the capacity and condition of its waste water treatment facility and sanitary sewer system, which includes approximately 400 miles of sanitary sewer lines.
Based on the information developed by those assessments, by December 31, 2017, the city will be required to submit to the EPA and the State a master plan describing remedial measures necessary to address the sewer system’s problems with capacity, inflow and infiltration, with the goal of eliminating sanitary sewer overflows and bypasses. Following the master plan’s review and approval by the EPA and the State, Waterloo would then have until December 31, 2032, to complete all necessary work on its sewer system.
Additionally, the consent decree would require Waterloo to pay a total of $272,000 in settlement shared between the United States and the State of Iowa, complete a footing drain removal program that it has already begun, follow its sanitary sewer overflow response plan, and implement a Capacity, Management, Operations and Maintenance (“CMOM”) program for its sanitary sewer system.
The consent decree is subject to a 30-day public comment period and approval of the federal court before it becomes final. A copy of the consent decree is available online: http://www.justice.gov/enrd/consent-decrees
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Two “Pill Mill” Operators and a Medical Director Admit to Scheme to Distribute Oxycodone Without a Medical NeedRead the Press Release
Baltimore, Maryland – Michael Resnick, a/k/a Michael Reznikov, age 54, and his wife, Alina Margulis, age 49, both of Brooklyn, New York, along with Daniel Alexander, age 53, of Pikesville, Maryland pleaded guilty today to conspiracy to distribute oxycodone and alprazolam. Margulis also pleaded guilty to money laundering, and Resnick also pleaded guilty to structuring currency deposits.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
“State and federal authorities are working to shut down ‘pain clinics’ that are really just fronts for criminals who divert pharmaceutical drugs,” said U.S. Attorney Rod J. Rosenstein. “Michael Resnick and his wife Alina Margulis operated a clinic in which they hired Daniel Alexander to prescribe opioid drugs to people who had no medical need for the drugs. Pharmaceutical pills can be just as harmful as illegal drugs when they are used without proper oversight.”
“Those who facilitate the illegal use of controlled substances negatively impact our entire community and will be held accountable,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office.
According to their plea agreements, in late 2010 and early 2011, Resnick and Margulis traveled to Florida to learn how to operate a pain clinic under the direction of co-defendant Gerald Wiseberg, who owned and operated Total Care Medical Center in Deerfield Beach, Florida. Wiseberg told Resnick that operating a pain clinic would be a lucrative business and that no medical experience was required.
By early 2011, Resnick, Margulis and Wiseberg agreed to open a similar pain management clinic in Maryland. In March 2011, the defendants opened Healthy Life in Owings Mills. Healthy Life later moved to larger space in Timonium, Maryland, until it closed on May 15, 2012. Both Healthy Life locations attracted large and unruly crowds. Customers caused disturbances outside the locations, used narcotics and engaged in narcotics transactions. Over 80% of the customers who received a prescription from Healthy Life were from out of state, and approximately 97% of the customers received at least one prescription for oxycodone.
Wiseberg hired an individual to serve as the medical director at Healthy Life because Wiseberg believed that the individual would write prescriptions for narcotics to customers without a legitimate medical need. This individual resigned as the medical director in August 2011, when the Maryland Board of Physicians—the agency authorized to issue licenses to practice medicine in Maryland and to discipline licensees—initiated an investigation into the individual’s prescribing practices. This investigation ultimately led the Maryland Board of Physicians to suspend the individual’s medical license.
In September 2012, Resnick, Margulis and Wiseberg hired another medical director, Daniel Alexander, because they believed that Alexander would likewise write drug prescriptions to customers without a legitimate medical need. Specifically, Margulis told Alexander that Healthy Life only prescribed pills and did not offer any alternative therapies.
In order to increase profits, Alexander spent a limited amount of time with each patient so that he could see a very large number of patients each day. From September 2011 to March 2012, Alexander issued prescriptions to 627 patients on 946 separate office visits. Of those 946 visits, the customer received a prescription for oxycodone 97% of the time, and a prescription for alprazolam 23% of the time, despite Alexander’s knowledge that many of the customers did not have a legitimate medical need for the drugs. In a few instances, Alexander prescribed oxycodone to customers who he simultaneously discharged from Healthy Life, based on indications they were abusing illicit drugs. Alexander was paid $150 an hour, and received a total of $30,000 for his activities in the scheme.
Just as with Total Care, Resnick, Margulis and Wiseberg, who were not doctors, established the standard operating procedures for Healthy Life, including which drugs the prescribing physician could prescribe and the maximum dosage amounts of these drugs. Healthy Life also accepted cash payments in exchange for providing prescriptions for large amounts of oxycodone, alprazolam and other drugs, to customers who did not have a legitimate medical need for the drugs.
To maximize profits, they also encouraged the prescribing physicians to prescribe the maximum amount of oxycodone to each customer; and established that prescriptions would be written for 28-day cycles as opposed to 30-day cycles. Additionally, Margulis and Resnick handled complaints by Healthy Life customers who were unhappy with the prescriptions they received, particularly when a medical provider might prescribe less oxycodone than the customer wanted. In those instances, Margulis and Resnick would intervene and ask the prescribing medical provider to reconsider, knowing it would lead the provider to give the customer what the customer wanted.
Margulis and Resnick knew when customers would fail a urinalysis screening, either because the customers had illicit drugs (such as cocaine) in their system or because their sample lacked any indication of oxycodone, thereby signaling they were diverting their previous prescription or taking more doses than indicated by their previous prescription and thereby causing them to run out of oxycodone before their next appointment. Resnick and Margulis arranged that some of these customers who failed their urinalysis screen could simply retake the test at a later time so that the customers would continue to return to Healthy Life.
Margulis and Resnick received 28% of the net profits from Healthy Life, obtaining a total of $280,000. Wiseberg received 30% of the net profits. Margulis kept the accounting books for the business. From June 2011 to April 2012, Margulis wrote monthly checks of $12,000 to an entity Wiseberg controlled. Additionally, Resnick and Margulis paid Wiseberg $165,000 in cash in 2011 for Wiseberg’s 30% share.
In order to evade currency transaction reporting requirements, Resnick and others at his direction deposited cash accumulated from customers in amounts less than $10,000 into several bank accounts for Healthy Life. Resnick admitted that he engaged in a pattern of illegal structuring involving more than $100,000 in a 12-month period.
Resnick and Margulis have agreed to the entry of an order to forfeit $280,000, the amount of illicit profits they received from the scheme. Alexander has agreed to the entry of an order to forfeit $30,000, the amount he was paid for his activities at Healthy Life.
Resnick and Margulis face a maximum sentence of 20 year in prison for the drug conspiracy. Margulis faces a maximum sentence of 10 years in prison for money laundering; and Resnick faces a maximum sentence of 10 years in prison for structuring currency deposits. Alexander and the government have agreed that if the Court accepts his plea agreement, Alexander will be sentenced to between 36 and 72 months in prison. Chief U.S. District Judge Catherine C. Blake has scheduled sentencing for Margulis and Resnick for March 18, 2016 at 10:30 a.m. and noon, respectively, and sentencing for Alexander on March 25, 2016 at 10:30 a.m.
Gerald Wiseberg, a/k/a Gerry Wiseberg and Jerry Wiseberg, age 82, of Boca Raton, Florida pleaded guilty on October 15, 2015 to his participation in the conspiracy and is scheduled to be sentenced on March 7, 2016 at 9:15 a.m.
United States Attorney Rod J. Rosenstein commended DEA, IRS-CI, Baltimore County Police Department and Baltimore County State’s Attorneys’ Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jason D. Medinger and Peter J. Martinez, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Two Grape Street Crips Gang Members Admit Dealing Heroin and Crack-Cocaine in Newark, New JerseyRead the Press Release
NEWARK, N.J. – Two members of the Grape Street Crips gang today admitted their roles in conspiracies to distribute heroin and crack-cocaine in and around Newark, New Jersey, U.S. Attorney Paul J. Fishman announced.
Larry Coleman, a/k/a “LA,” 28, of Newark, pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to distribute heroin. Tauheed Satchell, a/k/a “Tah,” 26, also of Newark, pleaded guilty before U.S. District Judge Jose L. Linares to a separate information charging him with one count of conspiracy to distribute crack-cocaine and one count of possessing a firearm as a previously convicted felon.
According to documents filed in this case and statements made in court:
Coleman admitted that from December 2014 through May 20, 2015, he conspired with others to distribute 20 bricks of heroin. Satchell admitted that from April 2014 through May 2015, he conspired with others to distribute 28 grams of crack-cocaine. Satchell, who was convicted in March 2009 of distributing a controlled substance on school property, also admitted possessing an AMT .380 9mm Kurz Backup semi-automatic pistol and six hollow point bullets.
The conspiracy to distribute heroin charge to which Coleman pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. The conspiracy to distribute crack-cocaine charge to which Satchell pleaded guilty carries a mandatory minimum of five years in prison, a maximum potential penalty of 40 years in prison and a $5 million fine. The unlawful possession of a firearm charge to which Satchell pleaded guilty carries a maximum potential penalty of 10 years in prison. Sentencing for Coleman and Satchell is set for Feb. 16, 2016 and Feb. 1, 2016, respectively.
In May 2015, over the course of three weeks, 50 alleged members and associates of the Grape Street Crips were charged by criminal complaints with drug-trafficking, physical assaults and witness intimidation. The charges are the result of a long-running investigation led by the DEA and FBI, in conjunction with the Essex County Prosecutor’s Office, the Newark Police Department and Essex County Sheriff’s Office Bureau of Narcotics. Over the course of the entire investigation, 71 defendants have been charged with federal and state charges.
Other defendants who have recently pleaded guilty include Bernard Anderson, a/k/a “BA,” 32, and Dennis Wright, a/k/a “Hersh,” a/k/a “Coyote,” 32, both of Newark, who pleaded guilty to heroin distribution charges on Oct. 21, 2015, and Oct. 13, 2015, respectively. Monesha Johnson, a/k/a “Smoove,” 36, and Willie Brooks, a/k/a “Animal,” 24, both of Newark, pleaded guilty to conspiracy to distribute crack-cocaine on Oct. 6, 2015. Antonio Foye, a/k/a “Steel,” 29, of Newark pleaded guilty to possession of a firearm as a previously convicted felon and conspiracy to distribute crack-cocaine on Sept. 23, 2015.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, for the investigation leading to the pleas. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; police officers and detectives of the Newark Police Department, under the direction of Director Eugene Venable and Chief Anthony Campos; and the Essex County Sheriff’s Office under the direction of Armando B. Fontoura, for their work.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto, Elizabeth M. Harris, and Barry Kamar of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Defense counsel:
Coleman: Adalgiza A. Nunez Esq., Newark
Satchell: Michael V. Gilberti Esq., Florham Park, New Jersey
Tribal Executives Indicted in Embezzlement SchemeRead the Press Release
United States Attorney Randolph J. Seiler announced that five current and former executives, and one employee, of the Sisseton Wahpeton Oyate Tribe’s Big Coulee District were indicted by a federal grand jury on October 6, 2015. The charges include Conspiracy to Commit Embezzlement from an Indian Tribal Organization and two counts of Embezzlement from an Indian Tribal Organization.
Those indicted are as follows:
Carrie Godfrey, age 49, of Sisseton, South Dakota, was Treasurer of the District Executive Board from January 2007 to January 2011, and Secretary of the Board from January 2011 through January 2015.
Gerald German, Jr., age 44, of Peever, South Dakota, was Chairman of the District Executive Board from January 2007 through January 2015.
Ann German, age 57, of Peever, South Dakota, is currently the Big Coulee District Coordinator.
Calvin Max, Sr., age 48, of Sisseton, South Dakota, has been Vice Chairman of the District Executive Board since January 2011.
Gerald Heminger, Jr., age 56, of Sisseton, South Dakota, was Vice Chairman of the District Executive Board from January 2007 to January 2011.
Colette White, age 55, of Peever, South Dakota, has been Treasurer of the District Executive Board since January 2011.
All six appeared before U.S. Magistrate Judge William D. Gerdes in Aberdeen, on October 16, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, followed by 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that the defendants caused checks to be issued on the District’s bank accounts to themselves, to allegedly pay for home repairs and to assist them in paying their income tax liability incurred as a result of the stipends they earned as District executives. None of the checks were properly authorized, and the defendants used the Tribe’s money for their own purposes.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the financial crime investigator at the U.S. Attorney’s Office. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
The defendants were released pending trial. Trial is scheduled for December 15, 2015.
Texarkana Drug Traffickers Arrested in Operation Flashback Meth InvestigationRead the Press Release
TEXARKANA, Texas – U.S. Attorney John M. Bales announced today the arrest of multiple individuals indicted for drug trafficking violations in the Eastern District of Texas.
Arrests were made on Oct. 27, 2015 as part of Operation Flashback, a two-year joint federal and state investigation into individuals responsible for mid- and high-level trafficking and distribution of methamphetamine through the Eastern District of Texas as well as to Arkansas, Louisiana, and Tennessee. The defendants are alleged to have been responsible for trafficking and distributing more than 1,000 kilograms of methamphetamine through the I-30 corridor, to Northeast Texas, Southwest Arkansas, and beyond. A federal grand jury returned a sealed 43-count indictment on Sep. 16, 2015 charging the following individuals with drug trafficking violations:
Jeffrey George, Jr., 29, of Texarkana, Texas;
Joshua Thompson, 35, of Hot Springs, Arkansas;
Kyle Davis, 29, of Texarkana, Arkansas;
Demetrice Dornell Mullens, 25, of Texarkana, Texas;
James Neal Byrd, 25, of Texarkana, Arkansas;
Shawna Marie Seifert, 34, of Texarkana, Texas;
Stacy Childs, 25, of Hot Springs, Arkansas;
Stephanie Martinez, 33, of Hot Springs, Arkansas;
Pablo Martinez, 39, of Royal, Arkansas;
Dondrail Parks, 31, of Texarkana, Arkansas;
Billy Krimmel, 36, of Gould, Arkansas;
Lloyd Guedel Jones, Jr., 30, of Texarkana, Texas;
Jay Dee Doolin, 53, of Hooks, Texas;
Whitney Ann Smith, 52, of Texarkana, Texas;
Mica Crumpton-Smith, 35, of Texarkana, Arkansas;
Eliasar Mata, 31, of Dallas, Texas;
Gary Don Sandlin, 58, of Texarkana, Texas;
Roddis Faust, 28, of Texarkana, Texas;
Michael Shane Spencer, 42, of Texarkana, Texas;
Veronica Zuniga Rodriguez, 32, of Texarkana, Texas;
April Michaelle Wright, 24, of Texarkana, Texas;
Charles Randall Porter, 59, of Wake Village, Texas;
Kenneth Wayne Milner, 42, of Texarkana, Arkansas;
Jamilu Whiteside, 38, of Nash, Texas;
Matthew Ray Thompson, 28, of Texarkana, Arkansas;
Shauna Michelle Erwin, 37, of Wake Village, Texas;
Sam Rich, 47, of Tyler, Texas;
Kimberly Denise Unholz, 46, of Texarkana, Texas;
Jeanna Renea Watson-Patterson, 30, of Nash, Texas;
Daniel Garrett , 27, of Texarkana, Arkansas; and
Sheena Geneene McClendon, 30, of Texarkana, Texas.This case is the result of an extensive two-year joint investigation by the Federal Bureau of Investigation, Texas Department of Public Safety Criminal Investigation Division, and Texarkana, Texas, Police Department; with the assistance of the U.S. Drug Enforcement Administration; U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Marshals Service; Texarkana, Arkansas, Police Department; the Bowie County (Texas) and Miller County (Arkansas) Sheriff’s Offices; the U.S. Attorney’s Office for the Western District of Arkansas; and the District Attorney’s Offices of Bowie County (Texas) and Miller County (Arkansas). During the course of this operation, agents have successfully arrested approximately 75 individuals and seized approximately six pounds of methamphetamine, large amounts of marijuana, more than $35,000 in U.S. currency, one vehicle, approximately 45 firearms, and more than 10,000 rounds of ammunition.
The investigation has led to additional arrests in the Northern District of Texas (Dallas area), including more than 16 additional defendants and the seizure of more than two kilograms of methamphetamine.
These cases are being prosecuted by Assistant U.S. Attorneys Ryan Locker and Paul Hable.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
South Sioux City Man Sentenced to more than 10 Years in Prison for Conspiring to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that Carlos Saul Vargas-Romero, 30, of South Sioux City, Nebraska, was sentenced on October 27, 2015, to 121 months in prison by United States District Judge Laurie Smith Camp. Vargas-Romero had previously pled guilty to Conspiracy to Distribute more than 50 grams of Methamphetamine for his involvement in a conspiracy to distribute multiple pounds of methamphetamine in the South Sioux City Nebraska area. After serving his sentence Vargas-Romero will likely be deported as he is currently in the country illegally.
This case was the result of an investigation by the Drug Enforcement Administration and Nebraska State Patrol.
South Florida Man Pleads Guilty to Manufacturing and Passing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Ralph Darel Lipsey (28, Miramar) has pleaded guilty to manufacturing and passing counterfeit Federal Reserve notes. He faces a maximum penalty of 20 years in federal prison on each count. Lipsey also has agreed to forfeit the monetary proceeds he obtained as a result of the crime, as well as the computer media he used to manufacture counterfeit notes. A sentencing date has not yet been set.
According to the plea agreement, in January 2015, Lipsey and his co-defendants, Marcos Rogelio Blake and Leon White, passed or attempted to pass counterfeit Federal Reserve notes at multiple businesses in Nassau County. Law enforcement officers subsequently issued an alert for the three individuals. On January 17, 2015, a deputy from the Nassau County Sheriff’s Office stopped a vehicle with the three men inside. Blake, who was driving the vehicle, was detained due to a suspended license. During a search, the deputy found genuine and counterfeit bills on Blake. An inventory search of the vehicle yielded additional counterfeit notes and a lock box. The lock box contained computer media and supplies used to manufacture counterfeit bills.
On September 30, 2015, Marcos Rogelio Blake (24, New York) pleaded guilty to manufacturing and passing counterfeit Federal Reserve notes, and possessing counterfeit business checks. His sentencing date has not yet been set. Leon White is scheduled for trial in December 2015.
This case was investigated by the Nassau County Sheriff’s Office and the United States Secret Service, Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Sioux Falls Man Sentenced in Dacotah Bank RobberyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man convicted of Bank Robbery was sentenced on October 26, 2015 by U.S. District Judge Karen E. Schreier.
Rickey Daniel Starks, age 45, was sentenced to 48 months in custody, to be followed by 3 years of supervised release. He was also ordered to pay over $8,700 in restitution.
Starks was indicted by a federal grand jury on March 17, 2015. He pled guilty to Bank Robbery on June 30, 2015.
On March 5, 2015, the Sioux Falls Police Department responded to an armed robbery call at Dacotah Bank on East 10th Street in Sioux Falls. Information relayed to the officers was that a man walked in the front door of the bank wearing quite distinctive clothing, a ski mask and carrying a backpack. He demanded money and waved what appeared to be a gun in the air. Video from the bank’s surveillance cameras confirmed the information the police had received. Portions of the video were released to the local news media and several sources contacted law enforcement indicating the robber’s identity.
This case was investigated by the Sioux Falls Police Department, South Dakota Highway Patrol, and the Federal Bureau of Investigation. Assistant U.S. Attorney Dennis R. Holmes prosecuted the case.
Starks was immediately turned over to the custody of the U.S. Marshals Service.
Ship Operator Pleads Guilty to Crimes Related to Pollution from Cargo Ship Traveling to Corpus ChristiRead the Press Release
CORPUS CHRISTI, Texas - A ship management company has pleaded guilty and was sentenced today for deliberately concealing pollution discharges from the ship directly into the sea and for falsifying its oil record book, announced U.S. Attorney Kenneth Magidson along with Rear Admiral David R. Callahan, Eighth District Coast Guard Commander. Chandris (Hellas) Inc. is headquartered in Greece and operated the M/V Sestrea - an 81,502 ton cargo ship that made calls in multiple ports in Texas.
Chandris pleaded guilty to a violation of the Act to Prevent Pollution from Ships for failing to properly maintain an oil record book as required by federal and international law, as well as a violation of making a false statement for making a false entry in the ship’s oil record book.
Shortly following the plea, U.S. District Judge Judge Nelva Gonzales Ramos ordered the company to pay an $800,000 criminal fine along with a $200,000 community service payment to the congressionally-established National Marine Sanctuary Foundation. The money will be designated for use in the Flower Garden and Stetson Banks National Marine Sanctuary, headquartered in Galveston, to support the protection and preservation of natural and cultural resources located in and adjacent to the sanctuary.
Chandris was also sentenced to three years probation. As a condition of the probation, all ships Chandris manages and are involved in transporting crude oil will be forced to comply with an Environmental Compliance Plan.
“Environmental crimes continue to occur throughout the Eighth Coast Guard District,” said Callahan. “When companies knowingly fail to adhere to marine anti-pollution laws, it affects each and every one of us. The Coast Guard will not tolerate the pollution of our marine environment and endangering of the public health. I am grateful for the hard work, dedication and professionalism exhibited by Coast Guard Sector Corpus Christi, the Coast Guard Investigative Service and the U.S. Attorney's Office for the Southern District of Texas.”
According to the joint factual statement, on or about Dec. 18, 2014, the chief engineering officer on board the M/V Sestrea acting on behalf of Chandris used a hose to pump fresh water through the Oil Content Meter. Because of this, the meter was “tricked” into sensing that all of the oily bilge water being run through the Oil Water Separator within normal limits. As a result, the system discharged oily water in excess of 15 parts per million overboard into the sea.
Federal and international law requires that all ships comply with pollution regulations that include the proper disposal of oily water and sludge by passing the oily water through a separator aboard the vessel or burning the sludge in the ship’s incinerator. Federal law also requires ships to accurately record each disposal of oily water or sludge in an oil record book and to have the record book available for the U.S. Coast Guard when the vessel is within the waters of the United States. The M/V Sestrea called on the Port in Corpus Christi on Jan. 3, 2015.
According to court documents, the chief engineer knowingly failed to make the required entries into the oil record book including the fact that oily waste had been discharged directly into the sea. The chief engineer also made false entries in the oil record book to conceal the fact that the pollution control equipment had not been used. The crewmembers then attempted to conceal the discharge on Dec. 18, 2014, during a Coast Guard boarding at the port in Corpus Christi by providing the falsified oil record book to the boarding crew.
The investigation was conducted by the Coast Guard - Corpus Christi Sector and the Coast Guard Investigative Service in Corpus Christi. Assistant U.S. Attorney Jeffrey S. Miller is prosecuting the case.
Scranton Man Charged with Federal Heroin Trafficking OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Scranton man has been indicted by a federal grand jury in Scranton for heroin trafficking offenses.
According to United States Attorney Peter Smith, the indictment charges Camilo Andujar, aka “Melo,” age 24, with conspiracy to distribute heroin between June and August 2015, distribution of heroin and possession with intent to distribute heroin.
The charges stem from an investigation in which Scranton police allegedly made a purchase of heroin from Andujar and then obtained a search warrant for a residence, located on Electric Street in Scranton, where Andujar was residing. From the residence, police allegedly seized approximately 91 grams of heroin, a coffee bean grinder filled with heroin, $5,950 in cash, heroin packaging materials and drug paraphernalia.
The investigation was conducted by the Scranton Police Department, Special Investigations Division, Lackawanna County District Attorney’s Office and the Drug Enforcement Administration (DEA). Prosecution is assigned to Assistant United States Attorney Robert J. O’Hara.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is up to forty years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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San Francisco Resident Indicted for “Straw Hat Bandit” Bank RobberiesRead the Press Release
SAN FRANCISCO - A federal grand jury indicted Richard Laurence Stewart today for committing a string of bank robberies throughout San Francisco, announced Acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge David J. Johnson. The indictment follows a complaint and affidavit filed on October 19, 2015.
Stewart, 52, of San Francisco, was arrested on October 18, 2015, after an investigation by the San Francisco Police and the FBI led to a search of his San Francisco residence. According to a previously filed complaint and the indictment, the FBI has been investigating the Straw Hat Bandit since a robbery on October 27, 2014. The FBI believes Stewart went on to commit a number of robberies, each time wearing a disguise. The affidavit describes a number of different disguises allegedly used by Stewart during the robberies, including glasses, hats, a black curly wig, a fake beard and mustache, and a single surgical glove.
According to the affidavit, Stewart eventually was identified as the bandit after a witness saw him leaving the scene of one of the robberies in a taxicab. Authorities later linked Stewart to the taxicab request. In the search of Stewart’s apartment, agents found hats worn during some of the robberies, a blue surgical glove, and a demand note that stated, “This is a robbery.” The indictment charges Stewart with four counts of bank robbery or attempted bank robbery, in violation of 18 U.S.C. § 2113(a). The robberies charged occurred on May 12, May 13, October 14, and October 16, 2015.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Stewart faces a maximum sentence of 20 years’ imprisonment and $250,000 on each count of bank robbery. Additional terms of supervised release, penalties, and restitution may be ordered upon conviction. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Stewart made his initial appearance on October 20, 2015, in San Francisco before U.S. Magistrate Judge Elizabeth D. Laporte. He is scheduled to be arraigned on the indictment on November 3, 2015, before U.S. Magistrate Judge Laurel Beeler.
The case is being prosecuted by Assistant U.S. Attorneys Lloyd Farnham and Shailika Kotiya with the assistance of Veronica Ramirez. The prosecution is the result of an investigation by the FBI and the San Francisco Police Department.
San Felipe Pueblo Man Sentenced to Prison for Federal Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Vincent Ortiz, 45, a member and resident of San Felipe Pueblo, was sentenced this morning in federal court in Santa Fe, N.M., to 50 months in prison followed by five years of supervised release for his sexual abuse conviction. Ortiz will be required to register as a sex offender after he completes his prison sentence.
Ortiz was arrested in July 2014, on an indictment charging him with sexual abuse and assault with a dangerous weapon. According to court filings, on July 5, 2014, Ortiz sexually assaulted a Kewa Pueblo woman and assaulted a San Felipe Pueblo man in San Felipe Pueblo in Sandoval County, N.M.
On Oct. 23, 2014, Ortiz entered a guilty plea to Count 1 of the indictment, charging him with sexual abuse. In entering the guilty plea, Ortiz admitted sexually abusing the victim on July 5, 2014, by engaging in a sexual act with the victim who at the time was incapable or unable to decline participation in the act.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney David Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Salisbury Man Sentenced to Six Years in Prison for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced David C. Andrews, age 52, of Salisbury, Maryland, today to 6 years in prison, followed by lifetime supervised release, for distribution of child pornography. Judge Bennett also ordered that Andrews must continue to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). Andrews was already required to register as a sex offender due to his previous conviction for possession of child pornography.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Worcester County Sheriff Reggie T. Mason, Sr.; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Wicomico County Sheriff Michael A. Lewis; and Wicomico County State’s Attorney Matthew Maciarello.
According to Andrews’ plea agreement, between May 28 and July 12, 2010, Andrews made files depicting children engaged in sexually explicit conduct available to others through a file sharing program installed on his computer. On July 17, 2010, a Wicomico County Sheriff’s detective working on undercover investigations of individuals trafficking child pornography through the use of file sharing programs was able to download child pornography being shared using the internet account at Andrews’ residence. A search warrant was executed at Andrews’ home and law enforcement located Andrews’ computer which contained 49 images and approximately 160 video segments of child pornography. Andrews admitted that he collected and shared child pornography over the internet, including the video downloaded by the detective. On October 12, 2011, Andrews pleaded guilty to possession of child pornography in Wicomico County Circuit Court. The charge for possession of child pornography with intent to distribute was dropped.
Also according to Andrews’ plea agreement, on May 12, 2014, a Worcester County Sheriff’s Office detective was conducting an online investigation for individuals using file sharing software to share child pornography. During the investigation, the detective downloaded a video from Andrews that depicted a prepubescent girl engaged in sexually explicit conduct. Investigators determined that the IP address associated with the account was assigned to Andrews’ residence.
On June 20, 2014, Andrews saw law enforcement officers conducting surveillance and photographing his home in preparation for obtaining a search warrant. Andrews admitted that on June 22, 2014, he ran memory-wiping software on the hard drive and reinstalled the operating system, thereby deleting any files or images, including any files containing child pornography from his laptop. When law enforcement executed a search warrant at Andrews’ home on June 24, 2014, they were initially unable to find any devices belonging to Andrews or that appeared to be associated with child pornography. After locating Andrews’ laptop in the laundry room, investigators realized the hard drive had been removed. Andrews directed the investigators to a truck tire in the back yard of the uninhabited house next door where law enforcement recovered a gallon zip lock bag containing the hard drive from the laptop, as well as a tablet computer.
Although a forensic examination of the laptop hard drive was not able to recover any images or files, a forensic analysis of the tablet recovered 142 images of child pornography. Andrews admitted that he attempted to delete the files in an attempt to conceal them from investigators. Twenty-five of the images belonged to a series of child pornography whose victim(s) were previously identified by the National Center for Missing and Exploited Children.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and Ocean City, Maryland, the Worcester County Sheriff’s Office, Maryland State Police, Wicomico County Sheriff’s Office, and the Wicomico County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Aaron S. J. Zelinsky, who prosecuted the case.
Rutherford Co. Man Sentenced to 57 Months in Prison on Securities Fraud Charges for Stealing over $2 Million from More Than 30 InvestorsRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn, Jr. sentenced today Chuckie Beaver, 52, of Ellenboro, N.C. to 57 months in prison for defrauding more than 30 investors of over $2 million, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Cogburn also ordered Beaver to serve three years under court supervision after he is released from prison.
Matthew Quinn, Assistant Special Agent in Charge of the United States Secret Service, Charlotte Field Division and Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) join U.S. Attorney Rose in making today’s announcement.
According to information contained in court documents and today’s sentencing hearing, Beaver was the sole owner of “Best Services, Inc.,” (Best Services), a company specializing in the repair of industrial electronic equipment. Court records show that from June 2012 to April 2014, Beaver induced over 30 victims, including friends, neighbors, and fellow church members, to invest in his fraudulent scheme, falsely claiming that his company needed additional capital to purchase materials to complete a large number of outstanding repair orders from major corporations. To further the scheme, Beaver created and showed his investors fake documents, including bogus repair orders indicating significant work activity, fake customer checks, and fake customer emails, giving a false impression he had strong relationships with major corporations.
Court records show that Beaver often gave his victims post-dated checks at the time of their initial investment, written for the full amount of the promised investment plus as much as 100% interest. According to court records, when the investors’ checks were returned by the bank for insufficient funds, Beaver made up a number of excuses to his victims, and, in some instances, he induced the victims to invest additional funds with the promise of even greater returns. Beaver previously admitted in court that contrary to what he promised his investors, he used their money to pay for personal expenses and to make payments to earlier investors, commonly referred to as Ponzi payments. In total, over the course of the scheme, Beaver defrauded more than 30 individuals from Mecklenburg, Gaston, Cleveland and Lincoln counties of more than $2 million. Beaver pleaded guilty to securities fraud in November 2014.
In announcing Beaver’s sentence, Judge Cogburn said that, “Everybody needs to watch out for this defendant” and stated that he did not trust anything the defendant said. “It is obvious he is a con man,” Judge Cogburn noted, adding, “Once a con man always a con man.”
Beaver is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the Secret Service and USPIS. Assistant United States Attorney Kevin Zolot, of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Rome Man Charged with Manufacturing Child Pornography by Enticing Minors to Photograph Themselves with Cell PhonesRead the Press Release
ROME, Ga. - Clinton Briggs Miller has been arraigned on federal charges of enticing minors to produce child pornography, by allegedly blackmailing them to send him sexually explicit images of themselves. Miller was indicted by a federal grand jury on October 19, 2015.
“Enticing, tricking, and intimidating children into taking sexually explicit photographs of themselves with their cell phones is as repulsive as it is illegal,” said U.S. Attorney John Horn. “This case illustrates the dangers faced by minors who send racy photos of themselves on phones or over social media.”
“As we have seen in countless other cases, child predators will exploit any technology they can to feed their perverse appetites,” said Special Agent in Charge Nick S. Annan, ICE Homeland Security Investigations in Atlanta. “I strongly encourage parents to educate themselves on how to protect their children from these predators by entering the keyword ‘iGuardian’ in the search box at www.ice.gov.”
According to U.S. Attorney Horn, the charges, and other information presented in court: In July 2015, Miller allegedly exchanged text messages with two minor females, one in California and one in Georgia. He befriended them, persuaded them to send him explicit photographs of themselves, and then threatened to post those photographs on social media websites unless they continued to send him increasingly explicit photographs.
Clinton Briggs Miller, 26, of Rome, Georgia, was arraigned before U.S. Magistrate Judge Walter E. Johnson.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Rome, Georgia, Police Department.
Assistant U.S. Attorney William G. Traynor is prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.
Rocky Mount Man Sentenced for Drug TraffickingRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that on Friday, October 23, 2015 in federal court, Chief United States District Judge James C. Dever III sentenced Benjamine fitzgerald ransome, 42, of Rocky Mount, North Carolina to 45 months imprisonment, followed by 3 years of supervised release.
ransome was named in an Indictment filed on March 3, 2015 charging him with distribution of a quantity of cocaine base (crack); possession with intent to distribute a quantity of cocaine; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by a felon. On July 13, 2015, Ransome pleaded guilty to possession with intent to distribute a quantity of cocaine.
According to the investigation, RANSOME distributed marijuana, cocaine, and cocaine base (crack) in Rocky Mount, North Carolina from 2012, until April 24, 2014. Law enforcement utilized a confidential informant to conduct controlled purchases of narcotics from RANSOME at B&R Auto Sales in Rocky Mount, North Carolina where RANSOME worked as a car salesman. Law enforcement executed a search warrant at B&R Auto Sales where they seized marijuana, a shotgun, and drug paraphernalia. A search warrant was also executed at RANSOME’s home, which uncovered cocaine, marijuana, a .38 caliber revolver, and drug paraphernalia.
The case was investigated by the Nash County Sheriff’s Office, Edgecombe County Sheriff’s Office, and the Drug Enforcement Administration. Assistant United States Attorney Dena J. King represented the government.
Rochester Man Pleads Guilty to Threatening President ObamaRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Brandon Correa, 31, of Rochester, NY, pleaded guilty to making a threat against the president of the United States before U.S. District Court Judge Elizabeth A. Wolford. The charge carries a maximum penalty of five years in prison, a fine of up to $250,000, or both.Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the defendant posted online threats to kill President Obama in June 2014. Specifically, Correa posted a message on Twitter directed to President Barack Obama in which the defendant wrote “Im coming to watch you die.” The defendant was interviewed shortly after posting the threats and told a Secret Service Agent that the President was “evil” and that he had to “die.”
Correa was released from custody following the threat and was ordered not to have any contact with the President as a condition of his release. However, in August of 2014, the defendant again posted online threats directed against the President and others. Specifically, Correa posted messages on Facebook and Twitter directed to President Obama in which he wrote “GET READY to DIE Barack Obama.”
The plea is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge, C. Todd Laster, and Investigators from the New York State Police, Protective Services Unit, under the direction of Major Stephen Nevins.
Sentencing is scheduled for December 21, 2015 at 10:00 a.m. before Judge Wolford.
Riceville Man Pleads Guilty to Possessing Child PornographyRead the Press Release
A man who possessed child pornography pled guilty yesterday in federal court in Cedar Rapids.
Adam Haacke, age 27, from Riceville, Iowa, was convicted of one count of possession of child pornography. At the plea hearing, Haacke admitted that, between 2014 and 2015, he knowingly possessed child pornography on a hard drive.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Haacke was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Haacke faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Hancock County Sheriff’s Office, the Mitchell County Sheriff’s Office, and the Mason City Police Department.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-2029.
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Previously Deported Mexican National Sentenced to Ten Years in Federal Prison for Illegal ReentryRead the Press Release
ALBUQUERQUE – A previously deported felon from Mexico was sentenced today in federal court in Las Cruces, N.M., to 120 months in federal prison for his conviction for unlawfully reentering the United States. He will be deported after completing his prison sentence.
Roman Enrique Delgado-Montoya, 54, of Veracruz, Mexico, was charged on June 2, 2014, in a criminal complaint with illegally reentering the United States after having been convicted of an aggravated felony. Delgado-Montoya had previously been deported from the United States on Feb. 10, 2014, after he was convicted in Sept. 2009, of Arson in Calif.
Delgado-Montoya was subsequently indicted on Jan. 14, 2015, and charged with unlawful reentry into the United States. Delgado-Montoya committed the offense in Sunland Park, Doña Ana County, N.M. On May 22, 2015, Delgado-Montoya pled guilty to the indictment without the benefit of a plea agreement.
Court proceedings revealed that, over the years, Delgado-Montoya has used at least 39 aliases and has at least 17 prior criminal convictions. He also has been arrested on at least 20 other occasions in cases which have either been dismissed or for which there is no information as to disposition. Delgado-Montoya’s prior convictions include vehicle theft, tampering with a vehicle, multiple burglaries, receiving stolen property, possession of burglary tools, cocaine distribution, possession of narcotics, falsely claiming U.S. citizenship, vehicle theft, being an aggravated felon receiving stolen property, arson and illegal entry into the United States.
This case was investigated by the Doña Ana station of the U.S. Border Patrol. Assistant U.S. Attorneys Brock Taylor, Edwin Garreth Winstead, III, and Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates under this initiative.
Preston Man Sentenced for Receiving Child PornographyRead the Press Release
POCATELLO - D. Gregory Schvaneveldt, 40, of Preston, Idaho, was sentenced today in United States District Court to 96 months in prison followed by seven years of supervised release, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Schvaneveldt to pay $10,250 in restitution to victims of the crime and to forfeit computers and related property used in the commission of the offense. Schvaneveldt pleaded guilty to the charge on August 12, 2015.
According to the plea agreement, an undercover special agent with Homeland Security Investigations was able to download 48 images and four videos of child pornography from Schvaneveldt’s shared computer files, after Schvaneveldt shared the password protecting the files with the agent during an online chat. This led to a federal search warrant for Schvaneveldt’s residence, where law enforcement agents seized two computers, an external hard drive, and related equipment. On the computers and external hard drive, law enforcement agents discovered approximately 1,638 images and 409 video files of suspected child pornography. The National Center for Missing and Exploited Children identified victims in over 600 of the images and videos.
When interviewed by law enforcement, Schvaneveldt admitted that there was child pornography on the computers in his residence and “hundreds” of images on the external hard drive. He stated that he had found child pornography on the Internet about a year prior and admitted saving images of child pornography from the Internet to his computer. He also admitted to receiving child pornography through an online chat function.
The case was investigated by U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Port St. Lucie Resident Sentenced for Preparing False Tax Returns for Himself and his ClientsRead the Press Release
A Port St. Lucie resident was sentenced to 30 months in prison, followed by one year of supervised release for preparing false tax returns for himself and his clients. The defendant was also ordered to pay joint and several restitution in the amount of $558,000.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Jean Pedro Jean Baptiste, 55, previously pled guilty to two counts of filing false tax returns, in violation of Title 26, United States Code, Section 7206(1), and four counts of assisting in filing false tax returns, in violation of Title 26, United States Code, Section 7206(2).
According to court documents, Baptiste was a paid tax return preparer who owned and operated JP and Sons Enterprises in Delray Beach, Florida. For tax years 2008 and 2009, Baptiste prepared individual income tax returns for customers using false income and deduction figures. Baptiste claimed deductions and credits for items that he knew the taxpayers were not entitled to take including, false Schedule C items and false Earned Income Credits, Additional Child Tax Credits, and First Time Home Buyer Credits. Baptiste failed to review the tax returns in detail with his clients and then electronically filed them for the taxpayers.
Baptiste also filed false Form 1040 income tax returns for himself for tax years 2008 and 2009. The 2008 tax return falsely claimed a First Time Home Buyer Credit, and the 2009 tax return falsely claimed an Additional Child Tax Credit, an Earned Income Credit, and falsely stated Schedule C income, gross receipts and sales. As a result, Baptiste received an inflated and unmerited tax refund payment.
The total loss to the United States is approximately $558,000.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Carmen M. Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Pittsburgh Man Charged with June Robbery of North Hills BankRead the Press Release
PITTSBURGH - A Pittsburgh resident of has been indicted by a federal grand jury in Pittsburgh on a charge of bank robbery, United States Attorney David J. Hickton announced today.
The one-count indictment named Boe Keenan, 33, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment presented to court, on or about June 30, 2015, Keenan stole $1,725 from the First National Bank located at 202 Devine Drive, Wexford, Pennsylvania.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Ryan K. Hart is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Northern Regional Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Niagara Falls Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Jeremy Scouten, 37, of Niagara Falls, NY, pleaded guilty to possession of child pornography before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.Assistant U.S. Attorneys Stephanie Lamarque and Kathleen A. Lynch, who are handling the case, stated that on August 6, 2012, law enforcement officers executed a search warrant at the 2502 Falls Street residence of the defendant. Officers recovered a computer being used by Scouten. A subsequent forensic examination determined that the computer contained approximately 200 images and 17 videos of child pornography. Some of the images included children under the age of 12 years old depictions of violence.
The plea is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security investigations, under the direction of Special Agent in Charge James C. Spero.
Sentencing is scheduled for March 9, 2016 before Judge Skretny.
New Haven Man Sentenced to 5 Years in Federal Prison for Selling Crack CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LUIS E. RIVERA, also known as “Bebe,” 34, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 60 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.
This matter stems from “Operation Samson,” an initiative headed by the ATF and the Bridgeport and New Haven Police Departments that targeted violent criminals, illegal firearm possession and firearm trafficking. In the spring of 2014, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations.
According to court documents and statements made in court, a confidential informant arranged to purchase an ounce of cocaine and a firearm from RIVERA and another individual in exchange for $1,500. On March 14, 2015, the confidential informant and an undercover ATF agent met with RIVERA and the other individual a location in New Haven to complete the transaction. At the location, RIVERA stated that he did not have the firearm. The undercover agent then paid $1,200 for an ounce of cocaine. On that date, RIVERA told the undercover agent that he knew how to “cook” cocaine into crack cocaine.
In the next two weeks, law enforcement conducted controlled purchases of approximately 57 grams of crack cocaine from RIVERA, and arranged another purchase of two ounces (approximately 57 grams) of crack from RIVERA. RIVERA was arrested on March 31, 2014. On that date, he possessed the approximately 57 grams of crack that he intended to sell. A subsequent search of apartment revealed more than 100 grams of cocaine, narcotics paraphernalia and more than $9,000 in cash.
RIVERA has been detained since his arrest. On December 9, 2014, he pleaded guilty to one count of possession with the intent to distribute, and distribution of, 28 grams or more of cocaine base (“crack cocaine”).
This case was prosecuted by Assistant U.S. Attorney William J. Nardini.
Naylor, Missouri Man Sentenced on Social Security Fraud ChargesRead the Press Release
Cape Girardeau, MO – RODGER SERATT, Naylor, Missouri, was sentenced to 41 months in prison on charges of falsifying documents to receive Social Security benefits, and a separate charge of tampering with a witness during the investigation. He appeared before United States District Judge Stephen N. Limbaugh, Jr., in Cape Girardeau, Missouri.
Seratt pled guilty in July to three felony counts of making false statements, and two felony counts of theft of government funds. The conduct underlying the charges occurred between October 15, 2009, and May 16, 2015, when, in an effort to prove his eligibility for Supplemental Security Income benefits, Seratt began making false statements to the Social Security Administration that he was dependent upon the financial resources of others and his physical disabilities prevented him from being employed. As the federal disability program provides a minimum level of income for aged, blind or disabled individuals, Seratt’s statements were material to the agency’s decision to grant his application for benefits.
However, during the time period Seratt made the false statements and fraudulently received federal disability benefits, he operated numerous businesses and owned rental property, his residence, an airplane and other property. When the State of Missouri outlawed the manufacture and distribution of synthetic drugs, Seratt conducted newspaper and television interviews with local media outlets, as well as a newspaper in Minneapolis, Minnesota, claiming that representatives with the State of Missouri and Stoddard County were causing him to lose $30,000 to $40,000 a month in income from the manufacture and distribution of synthetic drugs such as K2 and Spice. Between October 15, 2009, and March 31, 2013, Seratt fraudulently obtained more than $24,000 in federal government disability benefits as a result of his false statements to the Social Security Administration.
He also pled guilty to charges of tampering with a witness in a related case in which, on April 10, 2015, Seratt caused an employee of his business enterprise to withhold documents requested by a federal grand jury investigating additional false statements to the government agency.
This case was investigated by the Social Security Administration-Office of Inspector General. Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney’s Office.
Natick Man Pleads Guilty to Federal Heroin and Fentanyl ChargesRead the Press Release
BOSTON – A Natick man pleaded guilty yesterday in U.S. District Court in Boston in connection with selling heroin and white heroin – heroin laced with fentanyl and/or straight fentanyl – to addicts, one of whom ultimately died after overdosing.
Nicholas Ferraro, 25, of Natick, pleaded guilty yesterday to one count of conspiracy to distribute and possess with the intent to distribute fentanyl and 100 grams or more of heroin, one count of distribution of fentanyl and two counts of distribution of heroin. U.S. District Court Judge William G. Young scheduled sentencing for Jan. 21, 2016 at 2:00 p.m.
Beginning in January 2013 and continuing until March 2014, Ferraro conspired with others to distribute both heroin and fentanyl to addicts in the Framingham and Natick areas. Ferraro pleaded guilty to distributing 400 to 600 grams of heroin and 10 to 15 grams of fentanyl. In addition, Ferraro distributed fentanyl to an individual on Feb. 8, 2014, who later died of an overdose after injecting himself with the fentanyl. Ferraro also sold heroin on two occasions in March 2014 to an undercover officer.
This case was brought as part of the federal response to the growing opioid abuse epidemic in Massachusetts and other New England states. A recent surge in overdose deaths has been attributed in part to the addition of fentanyl to heroin, creating a toxic mixture substantially more potent, and more dangerous, than heroin alone.
The charge of conspiracy to distribute and possess with the intent to distribute fentanyl and 100 grams or more of heroin provides for a sentence of no greater than 40 years in prison, a mandatory minimum of four years and up to a lifetime supervised release and a fine of $5 million. The charges of distribution of fentanyl and heroin provide for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Natick Police Chief James Hicks; and Framingham Police Chief Kenneth Ferguson made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Eric Rosen and Katherine Ferguson of Ortiz’s Narcotics and Money Laundering Unit and Neil Gallagher of Ortiz’s Economic Crimes Unit.
Natchitoches man sentenced to 72 months in prison for possessing methamphetamineRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Natchitoches man was sentenced to 72 months in prison for possessing methamphetamine.
Alfred Joseph Jackson, 40, of Natchitoches, La., was sentenced by U.S. District Judge Elizabeth E. Foote on one count of possession with intent to distribute methamphetamine. He was also sentenced to three years of supervised release. According to evidence presented at the July 30, 2015 guilty plea, a Sabine Parish K-9 officer stopped an 18-wheeler Jackson was driving for a traffic violation on March 2, 2015. After further investigation, the officer found methamphetamine, marijuana and cocaine inside of the vehicle.
The DEA and Sabine Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Multiple defendants plead guilty to Federal drug chargesRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that multiple defendants from southern West Virginia plead guilty to federal drug charges. Two defendants from Beckley and one defendant from Oak Hill entered their guilty pleas in federal court in Beckley, West Virginia. These crimes involved the unlawful distribution of drugs and the illegal facilitation of drug sales.
Shawn Haines, 43, of Beckley, plead guilty to distributing oxycodone. Haines admitted that on October 28, 2014, he sold oxycodone to a person cooperating with law enforcement on Christopher Drive in Beckley, West Virginia. Haines faces up to 20 years in federal prison and a $1,000,000 fine.
Another defendant from Beckley, Jamal Johnson, 25, plead guilty to distributing cocaine. Johnson admitted that on June 22, 2015, he sold cocaine to a confidential informant on Industrial Drive in Beckley. Johnson faces a sentence of up to 20 years in federal prison and a $1,000,000 fine.
Jason Treadway, 33, of Oak Hill, also plead guilty to using a telephone to twice arrange heroin deals. Treadway admitted that on March 12, 2015, and on May 6, 2015, he used a telephone to set up heroin deals on Robert C. Byrd Drive in Beckley with a person cooperating with law enforcement authorities. Treadway faces up to 8 years in federal prison and a $500,000 fine.
These defendants are all scheduled to be sentenced in federal court in Beckley on February 11, 2016.
The Beckley/Raleigh County Drug and Violent Crime Unit conducted the investigations of these crimes.
These cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities, including the illicit sale and misuse of prescription drugs and opiates. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Montville Man Sentenced to Prison for Illegally Possessing FirearmsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JASON SCOTT, 37, of Montville, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 13 months of imprisonment, followed by three years of supervised release, for possessing several firearms as a convicted felon.
According to court documents and statements made in court, in November 2014, an individual provided information to law enforcement that SCOTT was looking to sell firearms for cash. In December 2014, the FBI made a controlled purchase of a Hi-Point Firearms, Model 995, 9mm rifle from SCOTT.
SCOTT was arrested on December 19, 2015. A search of SCOTT’s residence on that date revealed a Mosin Nagant 7.62 x 54r, Model 44, rifle, and an Izhmash Saiga .308 semi-automatic rifle, as well as magazines, ammunition and ammunition reloading components.
Prior to December 2014, SCOTT had been convicted of a felony offense. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition which has moved in interstate or foreign commerce.
On June 12, 2015, SCOTT pleaded guilty to one count of possession of a firearm by a convicted felon.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Gabriel J. Vidoni.
Miller Man Indicted for Attempted Sex TraffickingRead the Press Release
United States Attorney Randolph J. Seiler announced that a Miller, South Dakota, man has been indicted by a federal grand jury for attempted Commercial Sex Trafficking of a Child and Attempted Enticement of a Minor Using the Internet.
Joseph Raleigh, age 34, was indicted on October 20, 2015. He appeared before U.S. Magistrate Judge Mark Moreno on October 21, 2015, and pled not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 10 years in custody up to a maximum of life in prison, up to a $250,000 fine, supervised release of not less than 5 years and up to life, and a $5,000 assessment to the Domestic Trafficking Fund. Restitution may also be ordered.
The Indictment alleges that on October 16, 2015, in South Dakota, Raleigh did knowingly attempt to solicit a child to engage in a commercial sex act. It is alleged he used the Internet to attempt to engage in the commercial sex act.
The charges are merely an accusation and Raleigh is presumed innocent until and unless proven guilty.
The investigation is being conducted by the South Dakota Division of Criminal Investigation, U.S. Marshals Service, South Dakota Internet Crimes Against Children Task Force, and the Pierre Police Department. Assistant U.S. Attorneys Kirk Albertson and Tim Maher are prosecuting the case.
Raleigh was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Member of Cherry Hill Group ‘UDH’ Pleads Guilty to Racketeering Conspiracy, Including MurderRead the Press Release
Baltimore, Maryland – Dominic Evans, a/k/a “FlatLine,” age 25, of Baltimore, pleaded guilty today to conspiracy to participate in a racketeering enterprise in connection with his gang activities as a member of the UDH organization, which operates in the Cherry Hill section of Baltimore.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
“Many of the shootings and murders in Baltimore City result from disputes between rival drug gangs,” said U.S. Attorney Rod J. Rosenstein. “Thanks to a lengthy and intensive investigation, we will hold accountable the criminals who turned Cherry Hill into a war zone.”
According to his plea agreement, from at least 2007 to 2013 Evans was a member of the UDH organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the Down the Hill section of Cherry Hill. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in part of Cherry Hill.
Evans admitted that as a member of UDH he sold crack cocaine, heroin and other narcotics with UDH members. In addition to selling drugs, Evans admitted that he participated in a robbery on January 15, 2007, in which the victim was stabbed. Evan also admitted that on October 5, 2010, he and a co-defendant committed an armed robbery of two individuals who were selling marijuana in the area, but who were not UDH members. After stealing $150 from one of the victims, Evans’ co-defendant began to shoot at the two individuals. One of the victims was shot once and survived his wound, but the other victim, who was shot at least three times, died from her wounds. The murder was captured on CCTV. A Baltimore City jury acquitted Evans and his co-defendant of this murder.
Finally, Evans admitted that November 11, 2013, in the 100 block of South Monroe Street in Baltimore, he started a fight with another individual, produced a large 10” kitchen knife and began stabbing and slicing at the victim. Evans took $50 from the victim. The victim was taken to Shock Trauma with stab wounds to his head, upper back and hands. The knife was recovered at the scene. CCTV captured the assault. Approximately 7 minutes later, Evans walked into a hospital four blocks away, complaining of a slice wound to the palm of his left hand. Evans pleaded guilty to this first degree assault in Baltimore City Circuit Court and was sentenced to 12 years in prison.
Throughout the course of Evans’ involvement in the UDH drug conspiracy Evans knew that the conspiracy involved between 840 grams and 2.8 kilograms of crack cocaine and between 3 and 10 kilograms of heroin
Evans and the government have agreed that if the Court accepts the plea agreement Evans will be sentenced to between 262 and 365 months in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for February 5, 2016, at 2:00 p.m.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Media Advisory: Domestic Violence Protection MonthRead the Press Release
Cedar Rapids, Iowa – The United States Attorney’s Office for the Northern District of Iowa will join Waypoint Services with other service providers and local law enforcement to hold a press conference on October 29th, the purpose of which is to discuss federal laws used to combat domestic violence. A Presidential Proclamation declared October as Domestic Violence Protection Month.
U.S. Attorney Kevin W. Techau will first meet with area service providers and local law enforcement then hold an on-site press conference following that meeting in an effort to raise public awareness about domestic abuse issues.
Event Details
When: Thursday, October 29, 2015
Where: Waypoint Services, 318 5th Street S.E., Cedar Rapids, Iowa
Time: 9:45 a.m.
A press release will be provided and interview opportunities will be available following the press conference.
Follow us on Twitter @USAO_NDIA.
Manhattan U.S. Attorney Charges Fifteen Defendants in $31 Million Fraudulent and Coercive Debt Collection SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the unsealing of an indictment charging TRAVELL THOMAS, the co-owner, chief executive officer, and president of a Buffalo, New York-based debt collection company (the “Company”), MAURICE SESSUM, a co-owner and chief operating officer of the Company, ANTHONY BRZEZOWSKI, the Company’s director of operations, three Company managers – JIMMY STOKES, HEATHER GASTA, and TACOBY THOMAS – and five Company debt collectors – ANTHONY CABA, COLUMBUS SIMMONS, CHARLES STARKS, WILLIAM CLARK, and MICHAEL CALLANDRA – with wire fraud and conspiracy to commit wire fraud in connection with a nationwide debt collection scheme that took in more than $31 million from thousands of victims across the United States. As alleged, the defendants tried to trick and coerce victims into making payments to the Company by making false threats and telling a host of lies, including that the Company was a law office and that warrants would be issued for the victims’ arrests if they failed to repay debts. Each of the individual defendants was arrested this morning and will be presented later today in federal court in Buffalo.
Also unsealed today were the guilty pleas of four Company employees – MARK LAVIN JOHN SALATINO, JESSICA MANN, and JENNIFER SHERK – for their participation in the fraudulent scheme. LAVIN, SALATINO, MANN, and SHERK each pled guilty pursuant to an information before U.S. District Judge Katherine Polk Failla.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the defendants engaged in what is believed to be the largest fraudulent debt collection scheme ever to be prosecuted, falsely threatening arrest and prosecution of countless Americans, including those who suffered from disabilities. The defendants charged today allegedly took ruthless advantage of the desperate situation in which their victims found themselves, using threats and lies to coerce payment and even trying to collect more money than the victims ever owed. Thanks to the tireless work of the criminal investigators in our office, those involved in this massive debt collection scheme will no longer be able to prey on vulnerable Americans burdened by debt.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court[1]:
Between 2010 and February 2015, the defendants routinely attempted to trick and coerce thousands of victims throughout the United States into paying millions of dollars in consumer debts through a variety of false statements and false threats. The defendants, using a variety of aliases, falsely told victims, among other things, that: (1) the Company was affiliated with local government and law enforcement agencies, including the “county” and the district attorney’s office; (2) the consumers had committed criminal acts, such as “wire fraud” or “check fraud,” and if they did not pay the debt immediately, warrants or other process would be issued, at which point they would be arrested or haled into court; (3) the victims would have their driver’s licenses suspended if they did not pay their debts immediately; (4) the Company was a law firm or mediation firm and that the Company’s employees were working with lawyers, a law firm, mediators, or arbitrators; and (5) a civil lawsuit would be filed, or was pending, against the victims for failing to pay their debts.
Employees of the Company at times prepared and sent correspondence to victims that made it falsely appear that the Company was affiliated with the government or courts. The defendants also routinely used legal-sounding terminology to invent legitimate-sounding but bogus explanations for the supposed criminal or legal action that had been or would be initiated against the victims for failure to repay purported debts, including that the victim had “breached a contractual agreement,” committed “theft of goods and services,” and engaged in “malicious intent to defraud a financial institution.” The defendants used these quasi-legal terms to frighten and coerce victims into paying actual or purported debts.
As a further part of the scheme, the defendants lied to victims by falsely inflating the balances of the debts so that they could collect more money from the victims than the victims actually owed, a practice known within the Company as “juicing” balances.
In total, from about January 2010 through November 2014, the Company collected more than approximately $31 million from thousands of victims across the United States. Of the money that the Company took in from victims, approximately $850,000 in cash was paid to SESSUM, approximately $750,000 in cash was paid to TRAVELL THOMAS, approximately $1.4 million was cashed from banks and ATMs, and tens of thousands of dollars was used to pay for TRAVELL THOMAS’s gambling expenses, tickets for professional sports games, TRAVELL THOMAS’s wedding reception, jewelry, and cosmetic surgery for his wife, among other expenses.
Collection Scripts
The defendants disseminated to Company employees and used collection “scripts” to solicit consumers by phone. The scripts contained various misrepresentations designed to trick victims into paying purported debts. For example, the scripts falsely stated, among other things: “In the next 48 hours we will be handing the matter over to our fraud department who will work together with your local district attorneys [sic] office in attempting to resolve the matter”; the collector was calling “from [the] law firm of Global Management Group”; the collector was a “claims associate calling on behalf of the legal processing firm” who would “file with our affiliate litigator in _____ county, to serve you to appear to plea”; and the consumers’ voice was being recorded on a “federally recorded line” for use “as admissible evidence.”
In about May 2015, following a federal criminal investigation of the Company, TRAVELL THOMAS instructed a former employee of the Company not to show Company scripts “to anyone” because they “weren’t legal.”
The Defendants’ Lies
The defendants made a variety of misrepresentations to victims across the country over the phone, and directed that those misrepresentations be made, including as follows:
- As a part of the scheme, TRAVELL THOMAS and SESSUM, the owners and officers of the Company, at times instructed employees of the Company to make misrepresentations to victims, including to “juice” balances, in order to trick them into paying debts.
- BRZEZOWSKI misrepresented to victims, including to a victim who stated that she was physically disabled and unable to work, that he was an attorney and an “associate with the firm” and was calling from an attorney’s office and would “handle their legals for free.” BRZEZOWSKI also instructed collectors on his team to falsely introduce him to victims on calls as an attorney in an effort to “close” a debt repayment.
- STOKES misrepresented to victims that he would have a bench warrant issued for their arrest, would contact the “county” to initiate legal proceedings, and was not calling from a collection agency.
- GASTA misrepresented to victims, including to a victim who stated that she was homeless, among other things, that “we are directly linked in with the court system,” her office had been “retained” regarding “bad check charges,” GASTA was working with attorneys, and the victims’ failure to repay the debt was a “federal issue.”
- TACOBY THOMAS misrepresented to victims that he was a “process server” from “U.S. Couriers” with “legal documents” to serve to victims, that victims had committed “check fraud,” and that TACOBY THOMAS was calling from an “arbitration firm.”
- CABA misrepresented to victims, including to the mother of a consumer undergoing dialysis for kidney failure, that he was a “legal investigator” calling from a law firm, the Company was not a collection agency, and victims had committed check fraud.
- SIMMONS misrepresented to victims that they had committed a felony by failing to repay debts and would face charges for “theft of services” and fraud, that their driver’s licenses would be suspended, and that SIMMONS would refer the matter to his “attorney network.”
- STARKS misrepresented to victims that they had committed a “federal offense” by failing to repay debt, that charges would be “press[ed],” victims were “under investigation for check fraud,” and that STARKS was working with attorneys.
- CLARK misrepresented to victims that he was “lead investigator” with a law office that has been retained by a particular company that issues payday loans (the “Payday Loan Company”) to bring an action for fraud and theft of goods and services, victims had committed fraud, including “social security fraud,” and victims would be served with process at their “home or place of employment” within 72 hours.
- CALLANDRA misrepresented to victims that they had committed fraud, including wire fraud under Title 18, United States Code, Section 1343, that CALLANDRA was “in contact with the magistrate,” and that “they’re en route right now . . . within 46 minutes they’ll be there to serve you.”
- CABA, SIMMONS, CLARK, and STARKS were members of the Company’s so-called “elite team,” which used particularly aggressive and egregious tactics in attempting to trick consumers into paying debts.
In November 2012, the Payday Loan Company advised TRAVELL THOMAS that it had learned that employees of the Company were making improper threats and misrepresentations in order to collect debts purportedly owed to the Payday Loan Company and falsely indicating to consumers that the Company was providing collection services on behalf of the Payday Loan Company. The Payday Loan Company issued a letter to TRAVELL THOMAS directing him to cease and desist using the Payday Loan Company’s name in collecting debt. TRAVELL THOMAS refused, and employees of the Company continued to attempt to collect debts purportedly on behalf of the Payday Loan Company.
* * *
TRAVELL THOMAS, 37, of Orchard Park, New York; SESSUM, 39, of Buffalo; BRZEZOWSKI, 49, of Buffalo; STOKES, 38, of Buffalo; GASTA, 41, of Buffalo; TACOBY THOMAS, 32, of Buffalo; CABA, 25, of Buffalo; SIMMONS, 46, of Buffalo; STARKS, 32, of Buffalo; CLARK, 30, of Buffalo; and CALLANDRA, 31, of Angola, New York, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison. LAVIN, 45, of Buffalo; SALATINO, 34, of Amherst, New York; MANN, 30, of Dunkirk, New York; and SHERK, 27, of Buffalo, each pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of the Criminal Investigators at the United States Attorney’s Office. He also thanked the Federal Trade Commission (“FTC”) for referring this case to this Office and the U.S. Marshals Service, Western District Regional Fugitive Task Force for their assistance. Mr. Bharara noted that the investigation remains ongoing.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to http://www.usdoj.gov/usao/nys/victimwitness.html.
If you wish to report a crime by another debt collector, you may contact the FTC at 1-877-FTC-HELP. For guidance on coping with debt, and information about dealing with debt collection companies in particular, go to http://www.consumer.ftc.gov/articles/0149-debt-collection.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Edward A. Imperatore and Jordan L. Estes are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man Who Stole 111 Firearms from Smith & Wesson Factory Sentenced to More Than 17 Years in PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Daniel J. Kumor, Special Agent in Charge of the ATF Boston Field Division, announced that ELLIOT PEREZ, 30, of Bridgeport, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 210 months of imprisonment, followed by three years of supervised release, for stealing 111 firearms from the Smith & Wesson manufacturing plant in Springfield, Mass, and selling many of those firearms on the street.
“This defendant not only stole more than 100 firearms, but he quickly sold dozens of them on the street putting them directly into the hands of criminals,” said U.S. Attorney Daly. “Not only are the stolen guns now turning up in criminal investigations as far away as North Carolina, but one was used in a Bridgeport murder and another in a shooting at a Hartford night club. As more than 50 of these guns are still at large, there is no telling how many additional acts of violence will stem from this offense. These sobering facts make clear that this long prison term is fair and appropriate. We thank the Stratford and Bridgeport Police Departments for their excellent work in quickly arresting these defendants, and the ATF for their investigative work and ongoing efforts to identify and recover the missing firearms.”
“The theft of over 100 guns is a serious threat to public safety and this sentence sends the message that it will not be tolerated, said ATF Special Agent in Charge Kumor. “Firearms trafficking continues to be a top priority for ATF and our law enforcement partners and we are committed to identifying and disrupting the sources of illegal firearms, which jeopardize the safety of our communities.”
According to court documents and statements made in court, on November 8, 2012, PEREZ, a truck driver for Pace Motor Lines, picked up five boxes of firearms from the Smith & Wesson manufacturing plant in Springfield and placed the boxes in his truck. At the same time, PEREZ stole three additional boxes containing a total of 111 firearms. PEREZ then drove the truck containing all the firearms to his residence in Bridgeport where he met his cohort Michael Murphy. Shortly thereafter, PEREZ delivered the original five boxes of firearms to the trucking company’s distribution center in Stratford.
PEREZ and Murphy stored and ultimately sold many of the stolen guns.
On November 20, 2012, when interviewed by ATF special agents, PEREZ falsely stated that a “black male” at Smith & Wesson’s manufacturing plant told PEREZ which boxes he was supposed to load onto his truck, and that he delivered all of the firearms he picked up to the distribution center in Stratford.
Prior to November 2012, PEREZ had multiple felony convictions, including convictions for larceny and burglary, and Murphy had a felony conviction for burglary. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
PEREZ and Murphy were originally arrested by the Stratford Police Department on state firearms charges. PEREZ has been in custody since his state arrest on November 23, 2012, and Murphy has been in custody since his federal arrest on November 30, 2012.
On February 11, 2014, PEREZ pleaded guilty to one count of conspiracy to possess and sell stolen firearms, one count of possession of firearms by a convicted felon and one count of making a false statement to a federal law enforcement officer.
On December 12, 2013, Murphy pleaded guilty to one count of conspiracy to possess and sell stolen firearms and one count of possession of firearms by a convicted felon. He is scheduled to be sentenced on October 30, 2015,
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Stratford Police Department and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Man Who Hired Teenage Girl for Sex is Sentenced in Human Trafficking CaseRead the Press Release
LOS ANGELES – A South Bay man who admitted lying to federal investigators about his conduct with a 16-year-old girl he met online and hired for commercial sex has been sentenced to 57 months in federal prison for obstructing a sex-trafficking probe being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Long Beach Police Department.
Charles Goswitz, 59, of Torrance, appeared Tuesday morning before U.S. District Judge Beverly Reid O’Connell. Goswitz, a court videographer who used the online moniker “Baldy Cruiser,” pleaded guilty to the obstruction charge June 22. The case marks the first federal prosecution in the Los Angeles area of a so-called “John” in a teen sex-trafficking investigation.
“Human trafficking inflicts tremendous harm on its victims, especially when those victims are children,” said United States Attorney Eileen M. Decker. “We have a duty to protect children from these predators, which includes prosecuting those who purchase children for sex. The significant sentence the defendant received in this case should serve as a warning to adults who engage in this type of criminal conduct. Although this is the first case of its kind in this district, it will not be the last.”
The probe into Goswitz’s activities began in February 2013 after HSI special agents received a lead from the Long Beach Police Department about a missing teen whose father suspected she was involved in commercial sex. During the ensuing investigation, authorities located sexually explicit images of the victim in an advertisement Goswitz posted on Backpage.com soliciting sex.
According to the case affidavit, in April 2013 HSI special agents met with Goswitz to advise the teen was missing and that she was a potential human trafficking victim. The affidavit states Goswitz denied ever meeting the minor victim, claiming he obtained the photographs of her online. Two months later, HSI special agents again questioned Goswitz, at which time he admitted engaging in commercial sex acts with the victim. Additionally, Goswitz acknowledged he had contacted the victim after his initial meeting with investigators. He further confirmed he had the minor victim and other females with whom he engaged in commercial sex acts pose for explicit photos wearing t-shirts saying “I love Baldy Cruiser.” He then posted those images on Internet sex forums as proof of his sexual exploits.
“This case should put commercial sex patrons on notice,” said Claude Arnold, Special Agent in Charge for HSI Los Angeles. “Those who pay for sex with minors are contributing in no small way to the current epidemic of teen and child sex-trafficking. The clients in these cases are, for all intents and purposes, as culpable as the actual traffickers and we intend to hold them accountable for their actions.”
Judge O’Connell ordered Goswitz to surrender in 60 days to begin serving his sentence. Upon completion of his prison term, Goswitz will be subject to five years’ supervised release and will be required to register as a sex offender for life.
Man Pleads Guilty in Connection with Murder in Chautauqua CountyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today Jonathan Conklin, 44, pleaded guilty to carjacking before Senior U.S. District Judge William M. Skretny. The charge carries a maximum sentence of 10 years in prison, a fine of $250,000, or both.Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that Conklin and co-defendant Charles Sanford robbed Mary Whitaker inside her Sherman, NY home on August 20, 2014. The two men approached the victim’s home and Sanford rang the doorbell. Soon after Whitaker answered the door, Conklin shot and killed her. Conklin and Sanford then stole her vehicle and drove it to Erie, Pennsylvania where they were arrested on August 22, 2014.
Charges are still pending against Charles Sanford. The fact Sanford has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the Chautauqua County Sheriff’s Office, under the direction of Sheriff Joseph A. Gerace, the Chautauqua County District Attorney’s Office, under the direction of District Attorney David W. Foley, the Federal Bureau of Investigation, and the City of Erie (Pennsylvania) Police Department, under the direction of Chief Randy M. Bowers.
Sentencing is scheduled for March 9, 2016 at 9:00 a.m. before Judge Skretny.
Man Indicted for Unlawful Possession of FirearmsRead the Press Release
POCATELLO - Matthew G. Burgett, 24, of Blackfoot, Idaho, was indicted today by a federal grand jury sitting in Pocatello for the unlawful possession of firearms in violation of 18 U.S.C. Sections 922(g)(4) and 924(a)(2), U.S. Attorney Wendy J. Olson announced.
The indictment alleges that on or about September 24, 2015, in the District of Idaho, the defendant, Matthew Burgett, having been adjudicated as a mental defective and committed to a mental institution, did knowingly possess two firearms in violation of Title 18, United States Code, Sections 922(g)(4) and 924(a)(2).
The charge of unlawful possession of a firearm is punishable by up to 10 years in prison, a maximum fine of $250,000, and not more than three years of supervised release.
The case is being investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) the Federal Bureau of Investigation (FBI), the Bingham County Sheriff’s Office, and the Blackfoot Police Department.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.