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Tuesday 27 October 2015
Maine Man Pleads Guilty to Clean Water Act ViolationRead the Press Release
CONCORD, NEW HAMPSHIRE – Acting United States Attorney Donald Feith announced that Christopher Garrity, of Leeds, Maine has pleaded guilty to a one-count information alleging that he discharged a pollutant into a navigable water, in this case the Piscataqua River, without a permit, in violation of the federal Clean Water Act.
On June 26, 2013, agents of the Environmental Protection Agency Criminal Investigations Division were called to the New Hampshire facility of Grimmel Industries, L.L.C., after the Portsmouth Harbor Master discovered polluted water from a tanker truck located on the Grimmel facility being discharged through a hose directly to the Piscataqua River. Garrity was employed as the terminal manager at the time of the discharge and he was aware that the tanker truck storage of the polluted water was part of a civil agreement between Grimmel Industries and the EPA to avoid discharges to the river. An investigation by the EPA identified Garrity as the individual responsible for connecting the hose to the truck and allowing the discharge to the river.
Garrity will be sentenced on February 2, 2016. He faces a statutory maximum sentence of three (3) years and a possible maximum fine of not less than $5,000 nor more than $50,000 per day of violation. If Garrity is sentenced to prison he will also serve a period of supervised release that begins upon his release from prison.
The case was investigated by the U.S. Environmental Protection Agency Criminal Investigation Division. The Portsmouth Harbor Master’s Office of the Pease Development Authority, Division of Ports and Harbors was instrumental in the successful investigation and prosecution of this case. Assistant U.S. Attorney Alfred Rubega is prosecuting this case.
Louisiana Man Sentenced for Involvement in Stolen Identity Tax Fraud SchemeRead the Press Release
A resident of Tangipahoa Parish, Louisiana, was sentenced to serve 15 months in prison to be followed by three years of supervised release for his involvement in a stolen identity refund fraud (SIRF) scheme, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana announced today.
Brad Lewis, aka Bird, 33, pleaded guilty on May 26 to one count of a multi-object conspiracy to defraud the United States and to commit mail fraud and theft of public money. U.S. District Judge Jay C. Zainey of the Eastern District of Louisiana imposed today’s sentence and also ordered Lewis to pay $1,136,966.94 in restitution owed to the Internal Revenue Service (IRS).
According to court documents, Lewis and his co-defendants conspired to prepare and file false income tax returns using stolen identities, including the victims’ names and social security numbers, to claim large tax refunds. The refund checks were mailed to addresses in Louisiana, including post office boxes that Lewis opened. Once the checks were received, Lewis and his co-defendants falsely endorsed and deposited the refund checks into bank accounts under their control. The co-conspirators then divided the proceeds of the refund checks amongst themselves.
The indictment also charged Cedrick Mitchell aka Skeet, 40; Corey Lewis, 37; Craig Lewis, 40; Angela Chaney, 43; Thaddeus Richardson, 49; and Martin Jackson Sr., 49, with conspiracy to defraud the United States, conspiracy to commit money laundering, conspiracy to commit mail fraud, conspiracy to commit theft of public money and other charges. On Sept. 15, Cedrick Mitchell was sentenced to 33 months in prison. On Sept. 29, Corey Lewis was sentenced to 75 months in prison. On Oct. 6, Thaddeus Richardson was sentenced to 51 months in prison. On Oct. 13, Angela Chaney was sentenced to 36 months in prison and Craig Lewis was sentenced to three years of probation. On Oct. 20, Martin Jackson Sr. was sentenced to 12 months and one day in prison.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case and Assistant U.S. Attorneys Hayden Brockett and Dall Kammer of the Eastern District of Louisiana and Trial Attorney Lauren M. Castaldi of the Tax Division, who are prosecuting the case.
Local Defense Attorney Heads to Federal Prison in Connection to Scheme to Obstruct JusticeRead the Press Release
HOUSTON – A criminal defense attorney in Houston has been ordered to prison for 15 years following his convictions on 18 counts to include conspiracy, obstruction of justice, money laundering, conspiracy to commit money laundering and failure to file tax returns, announced United States Attorney Kenneth Magidson. Abraham Moses Fisch, 56, was convicted by a jury May 27, 2015, following a 15-day trial and approximately 14 hours of deliberations.
Today, U.S. District Judge Lee H. Rosenthal, who presided over the trial, handed Fisch a total sentence of 180 months in federal prison. He must also forfeit $1.15 million and serve five years of supervised release following completion of the prison term. Also sentenced today was Lloyd Glen Williams, 71, a former used car financier in Houston who previously entered a plea of guilty to conspiring to obstruct justice and to filing a false tax return. He will serve 84 months in federal prison to be followed by two years of supervised release. He will also forfeit $1.48 million.
At the hearing, a victim made a statement to the court. She is the mother of a defendant prosecuted in a drug case who was represented by Fisch. She testified that Fisch and Williams promised her and her son that they could get him probation by influencing Williams’ supposed contacts in Washington. The mother had used her retirement savings to hire Fisch and Williams based on this promise and paid them $80,000. She told the court that everything Fisch and Williams told her turned out to be a lie. She said that, as a result, she has lost faith in the justice system and does not know who to believe in the system anymore.
“Schemes to obstruct justice, such as the one concocted by these defendants, affect the hard work we try to do every day and the public’s perception of those efforts,” said Magidson. “These significant sentences should serve as a verdict for restoring faith in our federal justice system.”
The evidence at trial showed that Fisch and Williams conspired to defraud defendants who were facing federal criminal charges in Houston. The fraud was perpetrated in at least four different federal criminal cases pending in Houston, including U.S. v. Edilberto Portillo et al. (H-06-182), U.S. v. Hugo Barrera Cavazos et al. (H-06-422), U.S. v. Umawa Oke Imo et al. (H-09-426) and U.S. v. Clifford Ubani and Princewill Njoku et al. (H-09-421 and H-10-416).
The defendants in the four cases as well as their wives and associates testified that Williams and Fisch told them that in return for paying exorbitant fees, Williams would pay off his alleged government contacts in Washington D.C. in order to obtain a “guaranteed” dismissal of the criminal cases. Those individuals were supposedly officials at the Central Intelligence Agency, FBI, Department of Justice and Medicare.
Drug trafficker Edilberto Portillo and his wife, Elida Sanchez, paid $1.1 million to Fisch in order to obtain the dismissal of their charges. Fisch paid $700,000 of the Portillo/Sanchez fee to Williams. Umawa Oke Imo, a defendant in a large health care fraud case, testified that Fisch and Williams quoted him a fee of $3 million in order to obtain a dismissal. In reality, however, no officials were paid, no cases were dismissed, and Fisch and Williams simply split the fees between them.
The evidence showed that the scam undermined the functioning of the federal justice system by misleading defendants about the nature of the cooperation process with the government and interfering with defendants’ cooperation with the government, including failing to pass information from a defendant to the government. It also interfered with plea negotiations with the government by preventing defendants from timely entering guilty pleas because of the mistaken belief their case was going to be dismissed.
The scam also interfered with defendants’ relationships with former and subsequent counsel, including communicating with represented defendants unbeknownst to their legitimate counsel, causing them to fire counsel, not to communicate fully and truthfully with their attorneys and not to assist their attorneys in preparing their defense or in negotiating guilty pleas.
Fisch and Williams also insisted that defendants keep the nature of Williams’ so-called “assistance” secret from the court, the government and other attorneys.
Fisch was convicted of money laundering based on the deposit of the funds earned from the scheme, which totaled at least $1,150,000. The United States is seeking forfeiture of that amount as money derived from the criminal activity.
Previously released on bond, both Fisch and Williams were taken into custody following the sentencing today where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation that led to this indictment and the arrests and plea was conducted by the FBI and Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys Robert S. Johnson and John P. Pearson.
Lincolnville Medical Practice Settles Federal Health Care Billing ComplaintRead the Press Release
Contact: John G. Osborn
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II today announced that Maine Dermatology, LLC, a dermatology practice with an office in Lincolnville, Maine, has agreed to pay $629,816 to settle claims involving false billings to the Medicare federal health care program. Medicare provides health insurance primarily to disabled and elderly Americans.
The United States filed a civil complaint on October 26, 2015, alleging that Maine Dermatology violated the federal False Claims Act between June 2010 and August 2013 by billing Medicare for providing evaluation and management services to patients in violation of applicable Medicare billing guidelines. The complaint alleged that Maine Dermatology submitted $314, 908 in false claims to Medicare. The complaint sought damages equaling double the full amount of the false claims. Maine Dermatology cooperated in the investigation.
The investigation was conducted by the U.S. Department of Health & Human Services, Office of Inspector General, and the U.S. Attorney’s Office, led by Health Care Fraud Investigator Richard Fairfield.Laguna Pueblo Man Sentenced to Federal Prison for Domestic Assault by a Habitual Offender ConvictionRead the Press Release
ALBUQUERQUE – Anthony Riley, 38, was sentenced this morning in federal court in Albuquerque, N.M., to 13 months in prison to be followed by five months of residential treatment for his domestic assault by a habitual offender conviction. Thereafter, Riley will be on supervised release for a period of three years.
Riley, a member and resident of Laguna Pueblo, N.M., was arrested on May 1, 2015, on a criminal complaint charging him with domestic assault of an intimate partner by a habitual offender on March 4, 2015, in Indian Country in Cibola County, N.M. According to the criminal complaint, Riley was charged as a habitual offender based on his two prior domestic violence convictions in Laguna Tribal Court. Laguna Tribal Court records reflect that Riley’s prior convictions occurred in 2005 and 2009, and that the victim in those two incidents was Riley’s intimate partner. Riley was subsequently indicted on the same charge on May 28, 2015.
On July 21, 2015, Riley pled guilty to the indictment and admitted that on March 4, 2015, he assaulted the victim, his intimate partner by striking her in the head and face with his fists. He also acknowledged his prior tribal court domestic violence convictions.
This case was investigated by the Laguna Agency of the BIA’s Office of Justice Services and the Pueblo of Laguna Tribal Police Department. The case was prosecuted by Assistant U.S. Attorney David Adams 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.
Judgment Granted Against Two Individuals Who Defrauded the Government Under U.S. Forest Service ContractsRead the Press Release
United States Attorney Randolph J. Seiler announced that civil judgment has been entered against Aurelio Munoz-Escalante, d/b/a Black Hills Thinning, of Rapid City, South Dakota, and Sergio Munoz-Escalante, d/b/a SM Logging & Services, of Hermosa, South Dakota, in the amounts of $759,999.12 and $458,374.02, respectively.
The monetary awards consist of treble damages and 44 separate penalties for employing undocumented aliens in U.S. Forest Service contract work related to thinning unhealthy timber in the Black Hills National Forest. Federal contracts do not permit work to be done by undocumented aliens. These contractors submitted invoices for payment, which falsely certified that the work was performed by legal workers.
The False Claims Act imposes treble damages and penalties liability on persons and companies who knowingly submit false claims to the government.
The U.S. Attorney’s Office places a high priority on criminal and civil cases involving all types of fraud committed against the government. As a result of investigations conducted by the U.S. Immigration and Customs Enforcement’s Homeland Security, in cooperation with the U.S. Forest Service, Rapid City Police Department, Pennington County Sheriff’s Office, South Dakota Division of Criminal Investigation, Custer County’s Sheriff’s Office, U.S. Department of Labor, and other federal and state law enforcement agencies, the U.S. Attorney’s Office was able to obtain criminal convictions for this fraudulent conduct. The civil lawsuit followed, which resulted in this judgment.
Civil settlements (totaling $455,000) were reached in November 2014 involving five other individuals: Angel Munoz-Escalante and Barbara Munoz, d/b/a Munoz Logging and Construction Company ($375,000); Rogelio Escalante Sr., d/b/a Escalante Logging and Services ($50,000); Rogelio Escalante Jr., d/b/a Escalante Logging and Thinning Company ($15,000); and Raul Munoz, d/b/a R Munoz Thinning ($15,000)).
All of these False Claim cases involving fraud committed against the U.S. Forest Service were handled by Assistant U.S. Attorney Cheryl Schrempp DuPris. The total civil recovery obtained by the United States Attorney’s Office amounts to $1,673,373.10.
Jicarilla Apache Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Christian Quintana, 20, an enrolled member of the Jicarilla Apache Nation who resides in Dulce, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to a federal assault charge under a plea agreement with the U.S. Attorney’s Office.
Quintana was arrested on March 2, 2015, on an indictment charging him with assault with a dangerous weapon with intent to do bodily harm and assault resulting in serious bodily injury. The crimes charged in the indictment took place on July 19, 2014, in Indian Country in Rio Arriba County, N.M.
During today’s hearing, Quintana pled guilty to assault with a dangerous weapon and admitted that on July 19, 2014, during a physical confrontation with the victim, he pulled a knife out of his pocket and stabbed the victim twice. Quintana further admitted that as a result of the stabbing, the victim sustained a punctured lung that required surgery to repair.
Under the terms of his plea agreement, Quintana will be sentenced to a maximum of 24 months in prison followed by a term of supervised release to be determined by the court. Quintana is in federal custody pending a sentencing hearing has yet to be scheduled.
This case was investigated by the Jicarilla Apache Tribal Police Department and is being prosecuted by Assistant U.S. Attorney David Adams.
Hartford Man Sentenced to 70 Months in Prison for Armed Robbery of Bank in WindsorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ODAIN J. JOHNSON, 22, of Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 70 months of imprisonment, followed by three years of supervised release, for committing the armed robbery of the First Niagara Bank in Windsor in January.
According to court documents and statements made in court, on January 10, 2015, at approximately 9:15 a.m., two masked men, at least one of whom brandished a firearm, entered the First Niagara Bank at 2133 Poquonock Avenue in Windsor. The two men vaulted the teller counter, directed two bank employees to the bank vault and ordered one of the employees to open the vault. Once inside the vault, the men ordered the bank employees to the ground and took cash from the vault. The men also ordered bank employees to open teller drawers and proceeded to take an additional amount of money from the drawers. During the robbery, a customer entered the bank. One of the masked men pointed a gun at the customer, ordered him to the ground and told him not to look up. After exiting the bank, the men confronted a second customer who was about to enter the bank. One of the men pointed a gun at the customer and stated “If you say anything, we’ll shoot you….”
A total of $81,530 was stolen from the bank.
While investigating the robbery, Windsor Police were contacted by East Windsor Police who were investigating similar bank and credit union robberies in East Windsor and Glastonbury. East Windsor Police had recently obtained an arrest warrant for David M. Johnson with respect to the robbery of the Nutmeg State Federal Credit Union in East Windsor on July 21, 2014.
After further investigation, on January 10 at approximately 9:45 p.m., law enforcement executed a search warrant at David M. Johnson’s Enfield residence and found a total of $81,946 in cash, most of which was bound by First Niagara Bank strapping that was initialed by one of victim bank employees. Investigators also found and seized other items allegedly used during the robbery earlier that day, as well as a .380 caliber semi-automatic handgun with a fully-loaded magazine.
ODAIN JOHNSON was arrested on January 17, 2015, in Lewiston, Maine, and has been detained since his arrest.
On May 29, 2015, ODAIN JOHNSON pleaded guilty to one count of armed bank robbery and admitted that he brandished a firearm during the offense.
On August 31, 2015, David M. Johnson pleaded guilty to one count of bank robbery related to the First Niagara Bank robbery, and also admitted that he committed the armed bank robbery of the Nutmeg State Federal Credit Union in East Windsor on July 21, 2014, and the Nutmeg State Credit Union in Glastonbury on November 7, 2014, stealing $109,166 and $84,145, respectively. He is detained while awaiting sentencing.
This matter has been investigated by the FBI and the Windsor, East Windsor and Glastonbury Police Departments, with the assistance of the Enfield Police Department, the Capital Region Emergency Services Team (CREST) and the Maine State Police. The case is being prosecuted by Assistant U.S. Attorneys Deborah R. Slater and Douglas P. Morabito.
Glen Burnie Tax Preparer Admits to Filing 29 False Tax ReturnsRead the Press Release
Baltimore, Maryland – Christine Little, age 43, of Glen Burnie, Maryland pleaded guilty today to aiding in the preparation of false tax returns.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“IRS Criminal Investigation is determined to stop false tax refund schemes,” said Thomas Jankowski, IRS Criminal Investigation Special Agent in Charge, Washington D.C. Field Office. “Ms. Little’s guilty plea sends the message that participation in refund fraud schemes does not pay and those who choose to engage in defrauding the government will be prosecuted.”
According to her plea agreement, Little identified herself as the CEO of TNT Taxes. From February to June 2011, she recruited taxpayers to use her services, purporting to specialize in business and individual taxes and “amendments.”
Little admitted that she prepared 29 false federal tax returns. She placed information on the tax returns that did not reflect the information given by clients; falsely inflated withholdings and real estate taxes; and caused the returns to contain false personal property taxes, home mortgage interest and charitable deductions.
In April 2011, an undercover federal agent requested that Little prepare his individual federal tax return. The tax return prepared by Little did not accurately reflect the information the agent supplied to her. Instead, the tax return included false deductions and inflated withholding amounts, resulting in a fraudulent refund claim of more than $11,000.
Little admits that the loss resulting from the false tax returns she filed exceeded $330,000.
Little faces a maximum sentence of three years in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for February 5, 2016 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the IRS – Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Harry M. Gruber, who is prosecuting the case.
Georgia Real Estate Investor Admits to Bid Rigging and Mail Fraud Conspiracies at Home Foreclosures AuctionsRead the Press Release
A Georgia real estate investor pleaded guilty today for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Georgia.
Trent Gaines admitted that he and others conspired not to bid against one another at public real estate foreclosure auctions from October 2008 to November 2010 in Fulton County, Georgia, and from September 2006 to February 2011 in DeKalb County, Georgia. Gaines also admitted to conspiring with others to use the mail to carry out a scheme to fraudulently acquire title to selected Fulton and DeKalb properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that should have gone to mortgage holders and others. The selected properties were then awarded to the conspirators who submitted the highest bids in private side auctions open only to Gaines and his co-conspirators.
“Today’s prosecution demonstrates the division’s continuing commitment to vigorously prosecute domestic cartels and fraud, and to obtain justice for victims of antitrust and fraud offenses,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “The guilty plea is the 10th prosecution against defendants for bid rigging at public foreclosure auctions in Georgia.”
According to documents filed with the court, the purpose of the conspiracies was to suppress and restrain competition and divert money to the conspirators that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
“This case again illustrates not only the problems regarding bid rigging at real estate auctions in Georgia but also the federal efforts involved in shutting this type of criminal activity down,” said Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Division. “The FBI reminds the public that such activity as seen in this case is a violation of federal law and, as such, the FBI will continue to work with the U.S. Department of Justice’s Antitrust Division in identifying, investigating and presenting for federal prosecution, those involved.”
Including Gaines, 10 cases have been filed as a result of the ongoing investigation being conducted by the Antitrust Division’s Washington Criminal II Section, the FBI’s Atlanta Division and the U.S. Attorney’s Office of the Northern District of Georgia.
Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions in Georgia should contact the Antitrust Division’s Washington Criminal II Section at 202-598-4000, call the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.htm.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force, which was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. The task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations.
The Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants since fiscal year 2009. For more information about the task force, please visit www.StopFraud.gov.
Fort Collins Businessman Pleads Guilty to Failing to File an Income Tax Return with the IRSRead the Press Release
DENVER – Donald Dale Smith, age 67, of Fort Collins, Colorado, pled guilty today before U.S. Magistrate Judge Michael E. Hegarty to two counts of willful failure to file a tax return, United States Attorney John Walsh and IRS Criminal Investigation Acting Special Agent in Charge Steven Osborne announced. Judge Hegarty is scheduled to sentence Smith on January 19, 2016 at 10:00 a.m. Smith was charged by an Information in Denver on April 8, 2015.
According to the Information and the stipulated facts contained in the plea agreement, in late 2005, Smith became the owner/operator of Mountain West Children’s Academy, LLC (“MWCA”), a daycare center in Ft. Collins, Colorado. Smith had previously worked as a construction contractor. MWCA operated under Smith from September 2005 through June 2011. Smith was the only owner and operator of the business throughout the relevant tax years.
During the calendar years 2008 through 2010, MWCA was a profitable business and bank records reflect gross business deposits of $447,871 (2008), $439,182 (2009) and $442,169 (2010). As a result of his ownership of and draws from MWCA, Smith had a gross income for each of the calendar years 2008 through 2010 that required him to file personal federal income tax return with the IRS for each of those years. Specifically, Smith had gross income for each of the years as follows: $117,893 (2008), $110,770 (2009), and $134,138 (2010). As a result of Smith’s income, he had federal income taxes due and owing for years 2008 through 2010 in the total amount of $117,954.
In June 2013, IRS conducted an examination of Smith’s tax situation. From 2008 through 2010, Smith used money from the daycare business for gambling at casinos in Blackhawk, substantial country club and golf-related expenses, and cigars. Specifically, between January 1, 2008 and December 31, 2010, Smith spent a total of $110,500 for these expenditures.
Smith pled to two counts of willful failure to file a tax return, which each carries a penalty of not more than 1 year in federal prison, and a fine of up to $25,000.
This case was investigated by Internal Revenue Service – Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Patricia Davies.
Former teacher sentenced for purchasing a firearm for a known felonRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that Jennifer Napier, 39, of East Bank, West Virginia was sentenced today in federal court in Charleston to one year and one day, as well as three years supervised release, for straw purchasing a firearm for a person she knew to be a convicted felon. In October of 2011, Napier purchased a firearm from the Trading Post, a federally licensed firearms dealer, in Marmet, West Virginia, and she filled out a Department of Justice form required for anyone who purchases a firearm from a federally licensed dealer. On that form, Napier falsely stated that she was the transferee/buyer of the firearm, when she knew that the true transferee of the firearm was her convicted drug felon boyfriend who was prohibited from purchasing or possessing firearms because of his felony conviction. Napier, a former teacher, agreed to voluntarily surrender her permanent professional teaching certificate and not reapply to get her certificate back until her federal sentence, including any term of supervision, has expired.
This case was investigated by the Kanawha County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Former Texas D.P.S. Employee Arrested and Indicted in Fraudulent Drivers License SchemeRead the Press Release
In San Antonio, federal authorities have arrested two individuals indicted on federal charges in connection with a scheme to provide drivers’ licenses to undocumented aliens announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
A six-count federal grand jury indictment unsealed yesterday, charges 53-year-old Jose A. Ytuarte, a former Texas Department of Public Safety Customer Service Representative in Hondo, TX, and 44-year-old Azeez Mistry of San Antonio with one count of conspiracy to transfer false identification documents, one count of transfer of false identification documents, and four counts of use of an interstate communication facility in aid of unlawful activity. According to the indictment, the defendants conspired from May 2013 to July 2015 to transfer identification documents, namely drivers licenses, knowing that such documents were produced without lawful authority. The indictment alleges that Mistry would direct undocumented and documented aliens who could not get a driver’s license legally to Ytuarte. Mistry would charge between $1,000 and $5,000 for each license and then pay a portion of that fee to Ytuarte as a cash bribe. The indictment further alleges that Ytuarte would input materially fraudulent information, namely that the individual was born in the United States, into the DPS computer system in order to process and issue a driver’s license to each undocumented alien.
Authorities arrested Mistry yesterday; Ytuarte, on Friday. Both have been released on bond pending further court proceedings.
Upon conviction, the defendants face up to 15 years in federal prison.
This case was investigated by the FBI, Texas Rangers and U.S. Customs and Border Protection. Assistant United States Attorney Christina Playton is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Former Police Chief Convicted of Conspiracy and BriberyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Thomas S. Jackson (58, Longwood) guilty of one count of conspiracy and three counts of bribery of an agent of a local government receiving federal funds. He faces a maximum penalty of 5 years in federal prison for the conspiracy count and up to 10 years’ imprisonment for each bribery count. His sentencing hearing has been set for January 11, 2016.
According to the evidence introduced at trial, from 1997 to May 28, 2010, Jackson was the Chief of Police of the Longwood Police Department (LPD). Between October 2007, and Jackson’s retirement on May 28, 2010, Samer Majzoub (54, Heathrow, FL), a convicted felon, paid Jackson more than $30,000 in bribes. In return, Jackson appointed Majzoub as an officer with the LPD. He also gave Majzoub the supervisory titles of commander, lieutenant, and sergeant. Jackson provided Majzoub with badges and credentials that represented Majzoub as an officer of LPD, and also assisted Majzoub in possessing firearms and ammunition. As a previously convicted felon, Majzoub was prohibited from possessing firearms and ammunition under federal law.
Majzoub has been charged by indictment with one count of conspiracy and three counts of bribery of an agent of a local government receiving federal funds. He has not been arrested and is a fugitive.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Roger B. Handberg and James D. Mandolfo.
Former Hilton Middle School Teacher Pleads Guilty to Attempted Enticement of A MinorRead 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 Charles Kane, 46, of Spencerport, NY, pleaded guilty to attempted online enticement of minor before U.S. District Court Judge Elizabeth A. Wolford. The charge carries a mandatory minimum sentence of 10 years in prison and a maximum of life, 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, a middle school teacher in the Hilton School District, was arrested April 2, 2015 as he attempted to meet with a person he thought was a 14 year old girl.
The investigation determined that in October 2014, the defendant posted an ad on Craigslist which read “daddy/daughter. Love younger women.” A federal law enforcement officer, working in an undercover capacity, posed as the father of a young daughter and conversed with Kane online for the next several months. During these conversations, Kane discussed traveling to meet the undercover and engaging in sexual activity with the undercover’s ten year old daughter.
On January 26, 2015, another undercover officer noticed a different sexually explicit ad on Craigslist which was traced back, once again, to the defendant. The officer responded to the ad in the persona of a 14 year old girl. Kane responded that he was “down with it.” The defendant asked the girl where she lived and said he wanted to meet her. The two remained in contact through March of 2015. During online chats, Kane sent the undercover officer photos of himself, including one he took in the men’s room at the Middle School where he taught, and repeatedly asked for photos of the 14 year old girl. Also during the chats, the defendant repeatedly discussed engaging in sexually explicit activity with the child and traveling to and meeting with the child for sexual purposes. One message read “I could get a room and I could sneak you there.” Kane acknowledged that he could get in “big trouble” and told the girl “this is between you and me.”
Following repeated requests, the girl agreed to meet the defendant at a theatre in Webster on April 2, 2015. The defendant was observed entering a pharmacy just before meeting with the undercover, where they learned that Kane purchased a box of condoms. Kane was arrested as soon as he pulled up to the theatre parking lot. He has been in federal custody since his arrest, and was held following a detention hearing last month.
The plea is the culmination of an investigation by the New York State Police, under the direction of Major Craig Hanesworth and the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Adam S. Cohen. The task force includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations..
Sentencing is scheduled for January 26, 2016 at 2:00 p.m. before Judge Wolford.
Former Executive Admits Guilt in Conspiracy Affecting Water Treatment ChemicalsRead the Press Release
A former executive of a water treatment chemicals manufacturer has pleaded guilty for his role in a conspiracy to eliminate competition by fixing prices, rigging bids and allocating customers for liquid aluminum sulfate supplied to municipalities and pulp and paper companies in the United States.
Frank A. Reichl, of Flanders, New Jersey, admitted to agreeing not to compete for contracts for liquid aluminum sulfate, a coagulant used by municipalities to treat drinking and waste water, and by pulp and paper companies in their manufacturing processes.
“By agreeing not to disturb each other’s ‘historical’ business, Reichl and his co-conspirators cheated municipalities and paper companies out of competitive prices for their supplies of liquid aluminum sulfate, a key water treatment chemical,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “We continue to work with our partners at the FBI to hold offenders in this industry criminally accountable.”
According to documents filed with the court, from 1997 until July 2010, Reichl and his co-conspirators met to discuss each other’s liquid aluminum sulfate business, submitted intentionally losing bids to favor the intended winner of the business, withdrew inadvertently winning bids and discussed prices to be quoted or bid to customers. Reichl is the first defendant to plead guilty to participating in this decade-and-a-half-long conspiracy.
“Reichl and his co-conspirators colluded to circumvent competitive bidding and independent pricing for liquid aluminum sulfate contracts, and conspired to raise prices by submitting artificially inflated bids to their customers,” said Special Agent in Charge Richard M. Frankel of the FBI’s Newark Division. “They also allocated customers in furtherance of their collusive scheme. By agreeing to violate both the spirit and the letter of the competitive process, Reichl and others defrauded municipalities as well as pulp and paper companies out of millions of dollars.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than the statutory maximum fine.
The investigation into collusion in the liquid aluminum sulfate industry is being conducted by the Antitrust Division’s New York Office and the FBI’s New Jersey Office. Anyone with information regarding price fixing, bid rigging or customer allocation in the liquid aluminum sulfate industry should contact the Antitrust Division’s New York Office at 212-335-8000, call the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.htm.
Former Employee of Yatahey Contract Postal Unit Pleads Guilty to Federal Misdemeanor Embezzlement ChargeRead the Press Release
ALBUQUERQUE – Ahmed Abder-Rahman, 25, of Gallup, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a misdemeanor charge of theft of government property. Under the terms of his plea agreement, Abder-Rahman will be sentenced to a term of probation and ordered to pay $10, 242.00 in restitution to the U.S. Postal Service (USPS), the victim of his criminal conduct.
Abder-Rahman was arrested on June 18, 2015, on an indictment charging him with theft of government property and theft of money orders. According to the indictment, Abder-Rahman stole 13 money orders with a total value of $10,242.00 from the Yatahey Contract Postal Unit (CPU) of the USPS from April 30, 2014 through May 12, 2014, in McKinley County, N.M. At the time the crimes were committed, Abder-Rahman was employed by the Yatahey CPU.
During today’s plea hearing, Abder-Rahman pled guilty to a misdemeanor information charging him with theft of government property. In entering his guilty plea, Abder-Rahman admitted that he had access to USPS funds, supplies and equipment at the Yatahey CPU, and fraudulently negotiated money orders in the aggregate amount of $10,242.00 in April and May 2014, without having received the money payable on the money orders. Court records reflect that Abder-Rahman used some of the money to pay off personal debts.
A sentencing hearing for Abder-Rahman has yet to be scheduled.
This case was investigated by the U.S. Postal Service Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Former Employee Pleads Guilty to $130,000 Bank Theft SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an employee of Community National Bank in Aurora, Mo., has pleaded guilty in federal court to a $130,000 bank embezzlement scheme.
Jo Ann Nickell, 45, of Aurora, pleaded guilty before U.S. Magistrate Judge David P. Rush on Monday, Oct. 27, 2015, to the charge contained in a Nov. 5, 2014, federal indictment.
Nickell was employed by Community National Bank as a customer service representative and back-up teller from Aug. 17, 2009, to July 19, 2013. By pleading guilty, Nickell specifically admitted that she embezzled $6,000 from the account of one of the bank’s customers.
As a result of Nickell’s criminal actions, Community National Bank and Federal Insurance Company experienced a total loss of approximately $130,268.
Under federal statutes, Nickell is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $1 million and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Abram McGull II and Nhan Nguyen. It was investigated by the Aurora, Mo., Police Department and the U.S. Secret Service.
Former Employee of Planet Fitness Holdings, LLC Pleads Guilty to Mail FraudRead the Press Release
CONCORD, N.H. – Nicholas Selby, age 31, pleaded guilty to engaging in a scheme to defraud Planet Fitness Holdings, LLC, Newington, New Hampshire (“Planet Fitness”) of more than $920,000, announced Acting United States Attorney Donald Feith.
Planet Fitness owns and operates 58 health clubs in eight states and Canada. An additional 942 health clubs are operated under franchise agreements with Planet Fitness.
Selby worked as a systems engineer at Planet Fitness. From November 2013 to March 2015, Selby caused Planet Fitness to pay for more than 1,800 iPads by submitting more than 90 invoices to the company’s accounts payable department that falsely described the items purchased. Selby bought the iPads from technology vendors with whom Planet Fitness maintained credit accounts. The iPads were shipped via interstate commercial mail carriers to Planet Fitness’ corporate office, where Selby took delivery and sold them to companies in Rexburg, Idaho, and Lawton, Oklahoma.
Selby’s scheme was discovered when an employee of Planet Fitness had a telephone call concerning the status of a legitimately ordered iPad which led to the vendor discussing the orders placed by Selby. Planet Fitness then conducted an internal investigation to document the fraud and reported it to the Newington Police.
A former resident of Madbury, New Hampshire, Selby now lives in Snellville, Georgia.
Selby will be sentenced by Chief United States District Court Judge Joseph N. Laplante on January 28, 2016.
The maximum prison term for the offense to which Selby pleaded guilty, mail fraud, is 20 years. The maximum fine for mail fraud is the amount that is equal to twice the gross gain or gross loss caused by the offense, whichever is greater.
The case was investigated by the Newington, New Hampshire Police Department and the Federal Bureau of Investigation.
Dominican Woman Pleads Guilty to Drug Smuggling at Logan AirportRead the Press Release
BOSTON – A Dominican woman pleaded guilty yesterday to smuggling nearly five kilograms of cocaine concealed in a wheelchair into the United States at Boston’s Logan International Airport. The cocaine had a street value of more than $250,000.
Ireline Aponte Melende, 30, pleaded guilty to one count of unlawful importation of a controlled substance. U.S. District Court Judge Denise L. Casper scheduled sentencing for March 2, 2016.
On May 10, 2015, Melende was stopped at Logan International Airport after she arrived on a flight from the Dominican Republic using a motorized wheelchair that was inoperable. Customs and Border Protection officers x-rayed the wheelchair, and noticed abnormalities in the wheelchair batteries. The batteries were opened, revealing four packages containing a white powdery substance. Testing revealed that the packages contained 4.965 kilograms of cocaine.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Seth B. Orkand of Ortiz’s Major Crimes Unit.
District Man Sentenced to Three Years in Prison for Burglary in Rock Creek Park NeighborhoodRead the Press Release
WASHINGTON – Antoine Woodfolk, 51, of Washington, D.C., has been sentenced to a prison term of three years for a burglary last summer of a residence in Northwest Washington, U.S. Attorney Channing D. Phillips announced today.
Woodfolk pled guilty in August 2015, in the Superior Court of the District of Columbia, to second-degree burglary. He was sentenced on Oct. 23, 2015, by the Honorable Anita Josey-Herring. Following his prison term, he will be placed on two years of supervised release.
According to the government’s evidence, on July 17, 2015, at about 2:15 P.M., the Metropolitan Police Department (MPD) received a 911 call regarding a burglary in progress at a residence in the 6300 Block of 16th Street NW. Although the residents were not present, MPD officers were informed that one of them observed, via an online surveillance system, an unknown individual kicking the front door, entering the residence, and leaving with a red and white bicycle. When officers arrived, they observed Woodfolk walking down the front porch pushing a red and white bicycle. Woodfolk attempted to flee on the bicycle and was apprehended a short time later. In his possession, officers found a GPS device, a silver watch, and the bicycle.
In announcing the sentence, U.S. Attorney Phillips commended the work of the Metropolitan Police Department. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra McPherson and Assistant U.S. Attorney Ali D. Kargbo, of the Felony Major Crimes Trial Section, who investigated and prosecuted the matter.
District Man Sentenced to 100-Month Prison Term for Federal Drug OffenseRead the Press Release
WASHINGTON –Michael Lee Smith, 32, of Washington, D.C., was sentenced today to 100 months in prison on a federal charge stemming from an investigation into the sale of drugs from a home in Southeast Washington, announced U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Smith pled guilty in August 2015, in the U.S. District Court for the District of Columbia, to one count of unlawful possession with intent to distribute 28 grams or more of cocaine base and aiding and abetting. He was sentenced by the Honorable Tanya S. Chutkan. Following completion of his prison term, Smith will be placed on five years of supervised release.
According to the government’s evidence, on Aug. 19, 2014, officers with the Metropolitan Police Department’s First District vice unit executed a search warrant at a home in the 5400 block of C Street SE. Smith and two other men were in the house. One man, the person who lived at the residence, was quickly detained by police next to a chair in the living room, where a plastic wrap that contained approximately 6.5 grams of crack was recovered. Smith and the other man, meanwhile, ran out the back door. They jumped a fence in the back yard and escaped. However, they were later identified and captured by MPD officers.
Overall, officers recovered over 170 grams of crack cocaine in a search of the residence, including 149.6 grams from a plate that was on top of a china cabinet in the dining room. Officers also recovered empty zip lock bags, a glass bowl, a scale spoon, a razor blade, and other items used to manufacture and distribute narcotics. In his guilty plea, Smith accepted responsibility for possession with the intent to distribute more than 112 grams but less than 196 grams of a mixture and substance containing cocaine base.
In announcing the sentence, U.S. Attorney Phillips and Chief Lanier commended the work of those who investigated the case from Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz and Teesha Tobias, and Assistant U.S. Attorney Emory V. Cole, who investigated and prosecuted the case.
District Man Found Guilty of Armed Kidnapping, Sexual Abuse, and Other Charges for Attacking Woman at Her HomeRead the Press Release
WASHINGTON – Levi Ruffin, 37, of Washington, D.C., was found guilty today of charges stemming from a nighttime attack on a woman as she tried to enter her home in Northwest Washington, announced U.S. Attorney Channing D. Phillips.
Ruffin was found guilty by a jury of six counts: kidnapping while armed; third-degree sexual abuse while armed; first-degree burglary while armed; attempted robbery while armed; assault with a dangerous weapon, and assault causing significant bodily injury. The verdict was returned following a trial in the Superior Court of the District of Columbia. He is to be sentenced by the Honorable Rhonda Reid Winston on Dec. 18, 2015. He faces a maximum of 30 years in prison for all offenses except for assault with a dangerous weapon, which carries a maximum of 10 years, and assault causing significant bodily injury, which carries up to three years in prison.
According to the government’s evidence, on Sept. 14, 2013, at about 9 p.m., the victim was entering the door to her home in Northwest Washington after an outing with her friends. As she entered the residence, she was rushed from behind by Ruffin, who placed his hand over her mouth. Ruffin pulled out a knife, placed it next to the woman’s face, and demanded she drop her belongings. Ruffin then forced her inside her home and demanded money. When the woman told Ruffin she had no money and attempted to give him her credit cards, Ruffin slapped the credit cards away and began to sexually assault her. The woman fought Ruffin when he touched her. During the fight, Ruffin cut the woman on both her hands and bit her face and back.
The bite marks on the woman’s face were swabbed for potential DNA. DNA was recovered from those bite marks and was traced to Ruffin. A warrant for Ruffin’s arrest was issued, and when Ruffin was arrested on Aug. 6, 2014, he was found to have generally matched the description the woman gave of the attacker. Ruffin also had a knife that matched the description provided by the woman of the knife used during the attack.
In announcing the verdict, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences and Bode Technologies. In addition, he acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Mark Morse and Wanda Trice; Victim/Witness Advocate Veronica Vaughan; Litigation Technology Specialist Karen McColman; Criminal Investigators Nelson Rhone and Melissa Matthews; Legal Interns Emma McArthur and Meghan Monahan, and Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation. Finally, he commended the work of Assistant U.S. Attorneys Kenechukwu Okocha and Akhi Johnson, who prosecuted the matter, and Assistant U.S. Attorney Jodi Lazarus, who indicted the case.
Detroit Job Fair Attracts 1,500 Job SeekersRead the Press Release
Nearly 1,500 individuals participated in a reentry job and resource fair at the Northwest Activities Center in Detroit today. The event connected individuals returning from prison with community resources and employment opportunities. The fair was organized by the U.S. Attorney’s Office, Mayor Mike Duggan’s Office, Detroit Employment Solutions, the Michigan Department of Corrections, the U.S. Probation Department, the U.S. Bureau of Prisons and the Cherry Health Community Treatment Center-West Residential Reentry Center. Employers participating at the job and resource fair included manufacturing, construction, recycling, staffing and service companies. The job and resource fair also included representatives from job training programs, community colleges and service providers. Each year, more than 13,000 citizens return from prison to their communities in Michigan. Statistics show that about one-third of them will reoffend. Offenders identify joblessness as their biggest barrier to success, and research shows that unemployment and crime go hand-in-hand. Sending returning citizens back to their communities with no ability to get a job leads to recidivism. “Taxpayers pay about $34,000 a year to incarcerate a single prisoner,” stated U.S. Attorney Barbara McQuade. “Rather than watching returning citizens go back to prison through the revolving door, it makes fiscal sense to invest in helping them find jobs. If we want to reduce crime, we need to find jobs for our returning citizens. Otherwise, we will all continue to pay their debt to society.” Lawmakers understand the public safety and fiscal benefits of finding jobs for returning citizens. New federal and state laws encourage employers to hire returning citizens by providing tax incentives for hiring felons and bonding to protect employers from liability. The job and resource fair follows and informational breakfast for employers in May featuring "Orange is the New Black" author Piper Kerman. Organizers asked employers to consider hiring citizens returning from prison. The job and resource fair provided an opportunity to connect employers with returning citizens.Department of Justice Releases Report on the Ambush of Police OfficersRead the Press Release
The Department of Justice today announced the release of an Office of Community Oriented Policing Services (COPS Office) report that addresses ambushes and violence against police officers. The report, Ambushes of Police: Environment, Incident Dynamics, and the Aftermath of Surprise Attacks against Law Enforcement, analyzes ambushes of the police and provides new information that can guide police executives, trainers, supervisors, policymakers and researchers in addressing the issue.
“Law enforcement officers regularly put their lives on the line in order to protect our communities and serve our nation,” said Attorney General Lynch. “As part of our work to support these brave men and women, the Department of Justice is committed to extensive efforts aimed at preventing violent action against the police. This report will serve as a critical base of knowledge as we work to defend our law enforcement and ensure our officers’ safety.”
“Every day, law enforcement officers serve this nation with distinction by protecting all of us from harm,” said Director Ronald Davis of the COPS Office. “That protection, however, comes at great risk to the men and women who courageously don the uniform and wear the badge. We know that the murder of a police officer in the line of duty is an assault on the entire community. When that murder is a result of an ambush, it also attacks the very foundation of our democracy. We must act to address this persistent threat. This ambush report is an important first step.”
The report, compiled by CNA, investigates methods for preventing, responding to, and effectively responding to ambushes of police officers. Ambush attacks against law enforcement officers remain a threat to officer safety, with the number of attacks per year holding steady since a decline in the early 1990s and the proportion of fatal attacks on officers attributable to ambushes increasing.
The report examines the environmental factors prevalent in ambush situations, and considers factors that may impact the survivability of an ambush assault. It also examines how police organizations can learn in the wake of these critical incidents and aid in the development and evaluation of policies and training programs aimed at improving outcomes following an ambush assaults against an officer.
The report, Ambushes of Police: Environment, Incident Dynamics, and the Aftermath of Surprise Attacks against Law Enforcement, is available here: https://cops.usdoj.gov/RIC/ric.php?page=detail&id=COPS-P340.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 126,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
Department of Justice Releases Report on Officer Safety and WellnessRead the Press Release
Report Highlights Four Police Departments with Effective Programs
The Department of Justice today announced the release of a new report that focuses on advancing the health and safety of police officers across the country. The publication, Health, Safety, and Wellness Program Case Studies in Law Enforcement, focuses on the innovative approaches to promoting officer safety and wellness taken by four police agencies. The report was released by the Department of Justice’s Office of Community Oriented Policing Services (COPS Office).
“The health and wellness of law enforcement officers is essential to public safety,” said Attorney General Lynch. “In order to ensure that our communities are kept as secure as possible, we must provide the officers who serve them with the tools they need to protect their health, ensure their well-being, and manage the rigors of their difficult work. The case studies in this report offer an important guide as we seek to support and care for men and women who risk their lives for us every day.”
“The safety and well-being of our police officers are as important to community policing and public safety as are building community trust and confidence,” said Director Ronald Davis of the COPS Office. “We know police work is tough, stressful, and dangerous. Officers are put in dangerous situations every day. We must make police officer wellness and safety a top priority.”
The four case studies presented in the publication offer an opportunity to better understand the significance and value that officer wellness programs present in successfully reducing officer sickness, injuries and deaths associated with poor health or traffic-related accidents. The case studies serve as models for safety, health and wellness programs and each offers practical strategies that have shown positive results. The four law enforcement agencies featured in this publication are the Boca Raton Police Department, the Prince George’s County Police Department, the Fairfax County Police Department and Reno Police Department.
The report is the product of the Attorney General’s Officer Safety and Wellness Group, led by the COPS Office and Bureau of Justice Assistance, in partnership with the Major Cities Chiefs Association. The group is comprised of representatives from police associations and unions, federal government agencies, universities and local law enforcement agencies, with additional subject matter experts and guest presenters with expertise on specific topics.
The publication, Health, Safety, and Wellness Program Case Studies in Law Enforcement, is available here: https://cops.usdoj.gov/RIC/ric.php?page=detail&id=COPS-P332.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 127,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
Department of Justice Announces New Guidebook on 21st Century PolicingRead the Press Release
Attorney General Lynch to Launch Phase Two of Six-City Community Policing Tour Highlighting Jurisdictions that Effectively Implement Recommendations in the 21st Century Policing Guidebook
The Department of Justice today released a new resource guide called The President’s Task Force on 21st Century Policing Implementation Guidebook, which outlines strategies to help communities, law enforcement and local government implement recommendations in the President's Task Force on 21st Century Policing Report. President Obama announced the new guidebook today at the International Association of Chiefs of Police Convention in Chicago.
As part of the announcement, the Attorney General will launch Phase Two of the Justice Department’s Community Policing Tour. Each stop along the six-city tour will highlight a jurisdiction that is effectively implementing one of the six pillars outlined in the task force guidebook.
“The Department of Justice is dedicated to building trust between law enforcement officers and the communities they serve; enlisting the public’s assistance in reducing crime; and creating the stronger and safer communities that all Americans deserve,” said Attorney General Loretta E. Lynch. “This implementation guide offers a crucial blueprint for elected officials, law enforcement officers, and community leaders alike as they work to put important policies and reforms into practice across the country.”
“The President’s Task Force on 21st Century Policing Implementation Guide highlights specific actions for local elected and appointed government officials, law enforcement agencies, communities and other stakeholders to support a comprehensive approach to reduce crime and build trust and legitimacy,” said Director Ronald Davis of the Office Community Oriented Policing Services (COPS Office). “Success will require collaboration and partnerships among these groups.”
Guidebook Summary on 21st Century Policing: Five Ways Stakeholder Groups Can Implement the Task Force’s Recommendations
Communities
1. Engage with local law enforcement; participate in meetings, surveys, and other activities.
2. Participate in problem-solving efforts to reduce crime and improve quality of life.
3. Work with local law enforcement to ensure crime-reducing resources and tactics are being deployed that mitigate unintended consequences.
4. Call on state legislators to ensure that the legal framework does not impede accountability for law enforcement.
5. Review school policies and practices, and advocate for early intervention strategies that minimize involvement of youth in the criminal justice system.
Law enforcement
1. Review and update policies, training, and data collection on use of force, and engage community members and police labor unions in the process.
2. Increase transparency of data, policies, and procedures.
3. Call on the POST Commission to implement all levels of training.
4. Examine hiring practices and ways to involve the community in recruiting.
5. Ensure officers have access to the tools they need to keep them safe
Local government
1. Create listening opportunities with the community.
2. Allocate government resources to implementation.
3. Conduct community surveys on attitudes toward policing, and publish the results.
4. Define the terms of civilian oversight to meet the community’s needs.
5. Recognize and address holistically the root causes of crime.
The President’s Task Force on 21st Century Policing was charged by President Barack Obama with identifying best practices and offering recommendations on how policing practices can promote effective crime reduction while building public trust. The task force submitted its final report to the President in May 2015. In July 2015, the White House and the COPS Office convened a forum of elected officials, police executives and community members to jointly discuss the task force recommendations and share strategies for implementation.
The implementation guide is a companion to the task force report and is informed by strategies shared at the July convening and feedback from the field. It provides guidance on implementing the task force’s 59 recommendations and 92 action items and serves as a resource for law enforcement, local government, community members and other stakeholders interested in concrete examples of how to turn the task force recommendations into action.
The President’s Task Force on 21st Century Policing Implementation Guidebook is available here: https://cops.usdoj.gov/RIC/ric.php?page=detail&id=COPS-P341. Further information about the President’s Task Force on 21st Century Policing is available here: https://www.cops.usdoj.gov/default.asp?Item=2761.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 127,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
Deming Residents Sentenced to Lengthy Federal Prison Terms for Kidnapping and Firearms ConvictionsRead the Press Release
ALBUQUERQUE – This morning a U.S. District Court Judge sitting in Las Cruces, N.M., sentenced Jessie Hopper, Sr., 55, and Polly Hopper, 61, of Deming, N.M., to lengthy prison terms for their convictions on conspiracy, kidnapping and firearms charges. Hopper, Sr. was sentenced to 366 months (30.5 years) in prison followed by five years of supervised release, while his sister, Polly Hopper, was sentenced to 292 months (24.3 years) in prison followed by five years of supervised release.
The sentences imposed on the Hoppers were announced by U.S. Attorney Damon P. Martinez, 6th Judicial District Attorney Francesca Martinez-Estevez, Special Agent Carol K.O. Lee of the Albuquerque Division of the FBI, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New Mexico State Police Chief Pete Kassetas and Luna County Sheriff Jonathon Mooradian.
“Jessie Hopper, Sr., and Polly Hopper, were both prosecuted under the federal ‘worst of the worst’ anti-violence initiative because of their extensive prior criminal histories, which included convictions for attempted murder, and the despicable nature of the violent crimes they were convicted of in this case,” said U.S. Attorney Damon P. Martinez. “Through this initiative, the federal law enforcement community is working with its state, local and tribal partners to make New Mexico safer by taking violent and repeat offenders like the Hoppers off our streets for as long as possible.”
“The 6th Judicial District Attorney’s Office is proud of its role in bringing about the sentencings imposed today on Jessie Hopper, Sr., and Polly Hopper,” said 6th Judicial District Attorney Francesca Martinez-Estevez. “Prosecutors from my office worked closely with local, county and state law enforcement officers to preserve the crime scene and gather the evidence that supported the federal convictions in this case, and our victim advocates supported the victim and her family in the aftermath of the victim’s traumatic experience. Working together with our partners at the FBI, ATF and U.S. Attorney’s Office, we were able to bring justice to the victim.”
“Today’s sentencings send a strong message the FBI and its law enforcement partners will aggressively investigate and prosecute violent crime,” said Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division. “The FBI would like to thank the U.S. Attorney's Office and the other federal, state and local agencies that worked closely together and made the successful resolution of this case possible.”
Hopper, Sr., Polly Hopper, and their co-defendant Jessie A. Hopper, Jr., 30, also of Deming, were arrested in June 2014, on a federal criminal complaint charging them with kidnapping and firearms charges. The three defendants subsequently were charged with conspiracy and kidnapping in a six-count indictment filed in May. 2014. The indictment also charged Hopper, Sr., and Hopper Jr., with brandishing a firearm in relation to a crime of violence, being felons in possession of firearms, and unlawfully possessing a sawed-off shotgun.
Hopper, Jr., entered a guilty plea to the five charges against him on Nov. 21, 2014. At sentencing, he faces a maximum of life imprisonment on the kidnapping charges as well as a seven-year prison sentence for brandishing a firearm that must be served consecutive to any sentence imposed on the kidnapping charges. Hopper, Jr., remains in federal custody pending a sentencing hearing which has yet to be scheduled.
On Feb. 27, 2015, a federal jury returned a verdict finding Hopper, Sr., and Polly Hopper guilty on all charges against them after a five-day trial. The evidence at trial established that Hopper, Jr., and Hopper, Sr., kidnapped the victim in Hot Springs, Ark., on May 8, 2014, with the assistance of Polly Hopper. Hopper, Jr., handcuffed the victim and a firearm was brandished at the victim to force her to comply with Hopper, Jr.’s demands, including a demand that she telephone family members to assure them that she was voluntarily leaving Arkansas with Hopper, Jr. On May 8 and 9, 2014, the defendants drove the victim from Arkansas to the defendants’ residence in Deming, where Hopper, Jr., and Hopper Sr., sexually assaulted the victim several times.
The three defendants initially were arrested by the New Mexico State Police on state charges on May 10, 2014. They remained in state custody until they were transferred to federal custody on May 16, 2014, to face the charges in this federal case. The state charges, which were filed by the 6th Judicial District Attorney’s Office for the State of New Mexico, were dismissed in favor of federal prosecution.
ATF Special Agent in Charge Thomas G. Atteberry said, “Taking violent criminals off the streets and putting them behind bars has always been a focus of ATF and our enforcement mission in New Mexico. I commend the agents and officers who repeatedly risked their lives to remove these violent offenders from our communities. I also wish to recognize the leadership of U.S. Attorney Damon P. Martinez and his office in their relentless prosecution of these violent offenders.”
“The cooperative effort between law enforcement agencies has made our communities safer,” said New Mexico State Police Chief Pete Kassetas. “This case is a great example of how local, state and federal law enforcement agencies are working with State District Attorneys and the U.S. Attorney to prosecute violent criminals. I cannot express my gratitude enough to all the agencies involved.”
“It is always encouraging when local, state and federal law enforcement partners work together for the good of our communities,” said Luna County Sheriff John Mooradian. “When we share resources and intelligence, we truly get the upper hand on the criminal element. My hope now is that the victim in this case was able to get the help and support necessary to move beyond this ordeal.”
This case was investigated by the Las Cruces office of the FBI, the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Mexico State Police and the Luna County Sheriff’s Office, with assistance from the 6th Judicial District Attorney’s Office for the State of New Mexico. The FBI in Little Rock, Ark., the Garland County (Arkansas) Sheriff’s Office, and the U.S. Attorney’s Office for the Western District of Arkansas also assisted in the investigation. The case is being prosecuted by Assistant U.S. Attorneys Randy M. Castellano and Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
The case against the Hoppers is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders based primarily on their criminal histories 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, including Luna County under this initiative.
Couple Headed to Prison for Methamphetamine SmugglingRead the Press Release
LAREDO, Texas – A local woman has been ordered to prison for nearly 20 years following her conviction of trafficking liquid methamphetamine, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Brenda Rodriguez-Garcia, 23, of Laredo, following a two-day trial on June 30, 2015,
Today, U.S. District Judge Diana Saldaña, who presided over the trial, ordered Rodriguez-Garcia to serve a total of 235 months in federal prison to be immediately followed by five years of supervised release. Also sentenced today was Luis Hernandez-Cabello, 30, of Nuevo Laredo, Mexico, who pleaded guilty June 9, 2015. He will serve 37 months in prison. He is expected to face deportation proceedings following his release.
At trial, Border Patrol (BP) and the Drug Enforcement Administration (DEA) agents described their Feb. 9, 2015, discovery of methamphetamine concealed in the running boards of the couple’s Chevrolet Suburban. Testimony revealed that Rodriguez and Hernandez had passed through the same checkpoint in a different vehicle three days earlier. Although the couple was allowed to proceed with their travel on that date, an agent later found crystals on his uniform and tools that tested positive as methamphetamine. Rodriguez and Hernandez were recognized when they attempted to pass through the same check point on the later date. The jury also heard from DEA drug chemists and drug value experts who testified that the confiscated drug was methamphetamine and had a value between approximately $340,000 and $400,000.
At the hearing today, Rodriguez-Garcia asked the court for a minimal sentence, but the judge refused. The court noted that she believed Rodriguez-Garcia was the most culpable - driving the vehicles each time, organizing the trips, securing the vehicles and giving inconsistent statements. The Judge pointed out the jury’s finding of guilty, the significant quantities of methamphetamine involved and Rodriguez-Garcia’s refusal to accept responsibility for her actions.
Both defendants will remain in custody pending transfer to U.S. Bureau Prisons facilities to be determined in the near future.
The charges were the result of an investigation conducted by BP and DEA. Assistant U.S. Attorneys Christopher dos Santos, Mike Eaton and Homero Ramirez prosecuted the case.
Chief Financial Officer at BVU IndictedRead the Press Release
ABINGDON, VIRGINIA – A federal grand jury sitting in the United States District Court for the Western District of Virginia in Abingdon has charged the chief financial officer at Bristol Virginia Utilities [BVU] with a variety of tax and fraud charges in a 15-count federal indictment.
The grand jury has charged Stacey Pomrenke, a.k.a. Stacey Bright, 43, of Abingdon, Virginia, with one count of conspiracy to commit tax fraud, three counts of making false statements, three counts of extortion, one count of program theft, one count of conspiracy to commit wire fraud and six counts of wire fraud.
The indictment, returned October 26, 2015, alleges that Pomrenke, through her position as chief financial officer with BVU, used her power to obtain things of value from vendors who were engaged in business relationships with BVU. Those things of value included, allegedly, tickets to baseball and football games, alcohol and the funding of official BVU company functions. Pomrenke is also charged with conspiring to defraud the United States by falsely reporting wages and other financial benefits of BVU employees to the Internal Revenue Service.
If convicted, Pomrenke faces a maximum possible penalty of up to 20 years in prison and/or a fine of up to $250,000.
The investigation of the case, which remains ongoing, is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Zachary Lee will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Charlotte Man Pleads Guilty to $2 Million Health Care Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – The former co-owner and operator of a Charlotte-area company providing services to Medicaid beneficiaries with intellectual/developmental disabilities has admitted to defrauding the government program of over $2 million, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Eric Bernard Mitchell, 43, of Charlotte, appeared before U.S. Magistrate Judge David S. Cayer and pleaded guilty to health care fraud and money laundering charges.
U.S. Attorney Rose is joined in making today’s announcement by Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to filed court documents and today’s plea hearing, from about 2007 to about 2009, Mitchell co-owned and operated Angelic Community and Family Services, L.P. (Angelic), which provided alternative care to Medicaid recipients with intellectual/developmental disabilities in a non-institutional setting. Angelic later became defunct, and in 2009, Mitchell assisted in the creation of another company, identified in court documents as “Company #1,” which provided the same type of services as Angelic. Mitchell operated significant portions of Company #1’s business and had exclusive control of the company’s bank accounts. Both Angelic and Company #1 were approved by Medicaid to provide such services to beneficiaries and to receive reimbursement from the government program.
According to court records, in or about 2006, Mitchell created an unincorporated company, Mitchell Connor & Associates (MCA), which provided operational services to Company #1, including the submission of reimbursement claims to Medicaid. Mitchell admitted in court today that from about October 2009 to about June 2014, he submitted through MCA fraudulent claims to Medicaid on behalf of Company #1, seeking reimbursement for services which were never provided to beneficiaries with developmental disabilities. Mitchell also admitted that he submitted the fraudulent claims using the Medicaid beneficiary information of former clients of Angelic, who Mitchell knew were approved to receive such services. Over the course of the scheme, Mitchell admitted to submitting at least $2.5 million in fraudulent claims using the beneficiaries’ stolen information and to receiving over $2 million in payments from Medicaid.
According to court records, Medicaid directed payments for Company #1’s reimbursement claims, including the fraudulent ones, to multiple bank accounts exclusively controlled by Mitchell. Over the course of the conspiracy, Mitchell used portions of the Medicaid funds to cover personal expenses, including to make multiple car payments to a Mercedes dealer and to pay for various car repair services.
Mitchell was released on bond after the plea hearing. The health care fraud charge and the money laundering charge each carry a maximum prison term of 10 years. A sentencing date for Mitchell has not been set yet.
The investigation was handled by HHS-OIG and IRS-CI. U.S. Attorney Rose also thanked the North Carolina Medicaid Investigations Division for their assistance. Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Central Man Pleads Guilty to Child Porn PossessionRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Joel Estrada-Secundino, age 49, of Central, pled guilty today in federal court in Greenville, to possession of child pornography, a violation of Title 18, United States Code, Section 2252A(a)(5)(B). United States District Judge J. Michelle Childs, of Greenville accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that in April 2015 agents investigating crimes against children downloaded two files from the Ares computer network that appeared to be child pornography. The files were being shared by the computer’s owner. The IP address was traced to Estrada-Secundino’s apartment in Central, South Carolina.
After further investigation, on August 19, 2015, a federal search warrant was executed at the apartment. Once inside the residence, law enforcement located Estrada-Secundino in an upstairs bedroom with a HP laptop computer in his possession. During a post-Miranda interview, Estrada-Secundino confirmed his laptop did contain pornography with children engaged in sexual activity. A forensic examination of the computer revealed multiple images and videos of children engaged in sexually explicit conduct.
Mr. Nettles stated the maximum penalty Estrada-Secundino can receive is a fine of $250,000 and/or imprisonment for 20 years, supervised release for life, plus a special assessment of $100.
The case was investigated by agents of the Department of Homeland Security, Office of Investigations and the South Carolina Attorney General’s Office. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
#####California-Based Marijuana Trafficker Handed Down 20 Year Prison SentenceRead the Press Release
CHARLOTTE, N.C. – Jose Delarosa, also known as “Chino” or “Pretty,” was sentenced on Monday, October 26, 2015, to 240 months in prison for his role as a major supplier of marijuana based in California, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Delarosa, 36, of Moreno Valley, California, was also ordered to forfeit $48,000 in cash seized, to pay a $25 million money judgment and to serve five years of supervised release upon his release from prison.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Atlanta and the Carolinas and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department.
According to information contained in filed documents and court proceedings, Delarosa was involved in a marijuana trafficking conspiracy that spanned from coast to coast. According to court records, from about 2009 to about May 2014, Delarosa was a major marijuana supplier, responsible for trafficking 10 to 30 tons of marijuana from the Los Angeles area to the east coast, including to Charlotte, Florida, Georgia, and South Carolina, as well as other locations throughout the country. Court records show that Delarosa transported the drugs via a network of couriers flying on commercial flights. The couriers flew to California, each time carrying approximately $50,000 in cash in carry-on luggage and returned to Charlotte with approximately 100 pounds of marijuana per trip hidden in checked baggage.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation, code-named “Operation Goldilocks,” has resulted in the dismantling of the organization and the seizure of more than $1 million of drug proceeds, 600 pounds of marijuana, and 13 firearms. The investigation has also netted the successful prosecution of 65 defendants, with three fugitives remaining.
The OCDETF Program was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of illegal drugs by identifying and targeting the major trafficking organizations, eliminating the financial infrastructure of drug organizations by emphasizing financial investigations and asset forfeiture, redirecting federal drug enforcement resources to align them with existing and emerging drug threats, and conducting expanded, nationwide investigations against all the related parts of the targeted organizations.
This ongoing OCDETF investigation is being led by HSI and CMPD, assisted by several state and local law enforcement agencies, including the Gastonia Police Department, the Concord Police Department, the Mooresville Police Department, the Pineville Police Department, the Huntersville Police Department, the Kannapolis Police Department, the Cornelius Police Department, the Waxhaw Police Department, North Carolina Alcohol Law Enforcement, North Carolina State Bureau of Investigation, the Iredell County Sheriff’s Office, the Union County Sheriff’s Office, and the Culver City, California Police Department. The prosecution for the government is being handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
In addition to Delarosa, the following 68 defendants have been charged in connection with Operation Goldilocks:
3:10-cr-238, Coleman et al:
- Parker Coleman – 720 months in prison, followed by 10 years supervised release.
- Stephanie Peppers – 54 months in prison, followed by 4 years supervised release.
- Shaunda Shenal McAdoo – 36 months in prison, followed by 3 years supervised release.
- Ryann Chancler Lewis – 87 months in prison, followed by 5 years supervised release.
- Samantha Jo Schmidlin – 27 months in prison, followed by 3 years supervised release.
- Nolan Robertson – 41 months in prison, followed by 4 years supervised release.
- Leah Patience Davis – 24 months of probation.
- Leon Edgar Robertson –84 months in prison, followed by 4 years supervised release.
- Mark Eric Dorsey, II – 96 months in prison, followed by 5 years supervised release.
- Wendell Jerrod Robinson – 72 months in prison, followed by 4 years supervised release.
- Davon Clifton Harris – 60 months in prison, followed by 3 years supervised release.
- Christopher Seaton McKneely – 37 months in prison, followed by 4 years supervised release.
- Gerren Ezekiel Darty – 188 months in prison, followed by 5 years supervised release.
- Glenn O’Neil Carrera – 87 months in prison, followed by 3 years supervised release.
- William Pierce – 36 months in prison, followed by 3 years’ supervised release.
- Rico Lamont Grier – 36 months in prison, followed by 3 years supervised release.
- Harold Manigault – 30 months in prison, followed by 3 years supervised release.
- Mark Rene Hunt – 46 months in prison, followed by 4 years supervised release.
- Jason Lee Banks – 78 months in prison, followed by 3 years supervised release.
- Megan Amelia Baehr – 41 months in prison, followed by 4 years supervised release.
3:10-cr-245, Crockett et al:
- Ahmed Daniel Crockett – 235 months in prison, followed by 5 years supervised release.
- Goldie Frances Crockett – 60 months in prison, followed by 3 years supervised release.
- Sharon Kelsey-Brown – 60 months in prison, followed by 3 years supervised release.
- Robert Jonathan Brown – 58 months in prison, followed by 5 years supervised release.
- Shondu Lamar Lynch – 96 months in prison, followed by 4 years supervised release.
3:11-cr-18, Romero Lamont Massey – 60 months in prison, followed by 4 years supervised release.
3:11-cr-46, Lasonya White – 24 months of probation.
3:11-cr-85, Thomas Diggs, III – 12 months and 1 day in prison, followed by 2 years supervised release.
3:11-cr-09, Jerry Davis – 48 months in prison, followed by 3 years supervised release.
3:11-cr-256, Saulsberry et al:
- Kamia Arekai Saulsberry – 36 months of probation.
- Kisha Dorsey – 44 months in prison, followed by 4 years supervised release.
- Robert Earl Dorsey, Jr. –48 months in prison, followed by 3 years supervised release.
- Ashley Rae Williams – 6 months in prison, followed by 3 years supervised release.
- Tonisha Deshon Williams –70 months in prison, followed by 4 years supervised release.
- Vincent Talbot – 72 months in prison, followed by 4 years supervised release.
- Kevin Lamont Stanfield, Jr. – 42 months in prison, followed by 4 years supervised release.
- Danny Hance – 37 months in prison, followed by 3 years supervised release.
3:11-cr-287, Thomas Lavon Smith, Jr. – 168 months in prison, followed by 5 years supervised release.
3:11-cr-337, Logie et al:
- Tavarus Shamaco Logie – 210 months in prison, followed by 5 years supervised release.
- Crystal Alethea Easter – 36 months in prison, followed by 4 years supervised release.
- Don Levon Marsh – 48 months in prison, followed by 4 years supervised release.
- Anthony Silva Alegrete – 54 months in prison, followed by 5 years supervised release.
- Ronald C. Hargette – 60 months in prison, followed by 4 years supervised release.
- Sandra Anita Landers – 27 months in prison, followed by 3 years supervised release.
- Evelyn Chantell LaChapelle – 87 months in prison followed by 4 years supervised release.
- Natalia Christina Wade – 6 months in prison, followed by 3 years supervised release.
- Francine Vanessa Williams – 87 months in prison followed by 4 years supervised release.
- Marvin Ray Wilburn – 30 months in prison, followed by 2 years supervised release.
- Corvain T. Cooper –life in prison.
- Leamon Keishan Moseley – 36 months in prison, followed by 2 years supervised release.
- Gregory Wall – pled guilty; 46 months in prison, followed by 4 years’ supervised release
- Dana Lamont Adams –60 months in prison, followed by 4 years supervised release.
- Lamar Andrew Harris – 50 months in prison, followed by 3 years supervised release.
- Clyde Monroe Wilburn – currently a fugitive.
3:13-cr-18, Lopez et al:
- Octavio Lopez – 57 months in prison, followed by 5 years supervised release.
- Enrique Leonardo Lemus – 70 months in prison, followed by 3 years supervised release.
- Gustavo Campos Garcia – 84 months in prison, followed by 3 years supervised release.
- Roberto Mendoza – pending sentencing (3:14-cr-164)
- Edgar Milian – 57 months in prison, followed by 2 years supervised release.
- Cristian Deylah West – 24 months in prison, followed by 4 years supervised release.
3:13-cr-40, Andrew Scott Lowery – 46 months in prison, followed by 3 years supervised release.
3:13-cr-132, Darrick Leon Johnson – 120 months in prison, followed by 5 years supervised release.
3:14-cr-252, Sergio Arturo Ibarra – pending sentencing (3:15-cr-164)
3:15-cr-42, Erik J. Jeter – pending guilty plea hearing.
3:14-mj-72, Jose Rene Ibarra – currently a fugitive.
3:14-mj-73, Dennis Delarosa – currently a fugitive.
Buffalo Woman Pleads Guilty to Conspiracy to Distribute FentanylRead 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 Sherylrica Quisenberry, 33, of Buffalo, NY, pleaded guilty to conspiracy to distribute fentanyl before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that between May 7, 2013 and September 26, 2013, the defendant conspired with co-defendant Fannie Long to distribute controlled substances. Specifically, while Long was incarcerated on other charges, Quisenberry filled a fentanyl prescription for Long and then sold the fentanyl patches at Long’s direction to a third party. Subsequently, while Long was still in custody, Quisenberry made a medical appointment for Long so that upon Long’s release she would be able to obtain more fentanyl patches to sell.
On other occasions Quisenberry sold hydrocodone pills, alprazolam pills, methodone pills, and crack cocaine to other individuals.
Long was previously convicted and sentenced to 96 months in prison for her role in the conspiracy.
This plea is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office.
Sentencing is scheduled for March 30, 2016 at 2:00 p.m. before Judge Skretny.Buffalo Man Sentenced on Drug ChargeRead 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 Leroy Weston, 42, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute 280 grams or more of crack cocaine, was sentenced to 10 years in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that between January and December 2011, the defendant sold crack cocaine on multiple occasions to a confidential informant working for the Drug Enforcement Administration (DEA). On December 1, 2011, Weston sold crack cocaine to a confidential source working with the Federal Bureau of Investigation (FBI).
The sentencing is the result of separate investigations by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Buffalo Man Arrested, Charged by Complaint with Bank RobberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Casey Swain, 37, of Buffalo, NY, was arrested and charged by criminal complaint with bank robbery. The charge carries a maximum sentence of 10 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorneys Caleb Petzoldt and Brendan T. Cullinane, who are handling the case, stated that according to the complaint, on April 24, 2015, the First Niagara Bank on Clinton Street in Buffalo was robbed in what is believed to be the first of 13 connected bank robberies. The robberies involved the robber passing similar notes which demanded that the money provided contain no bank security devices and instructed the victims not to make any eye contact or sudden movement or things would turn bad. The complaint states that Swain became a suspect relatively early on.
On June 5, 2015, an individual entered the first Niagara Bank on Abbott Road in Buffalo, approached a teller and passed a note which essentially stated large bills only, no eye contact, no dye pack, no sudden movements. According to the complaint, investigators identified Swain as the individual in bank surveillance photos.
“Our Office takes very seriously these crimes that can terrorize members of the public and employees working at local businesses,” said U.S. Attorney Hochul. “We will continue to work with our law enforcement partners to aggressively prosecute such defendants.”
Swain made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder. He is being held.
The complaint is the culmination of an investigation by the Federal Bureau of Investigation, under the direction on the part of Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Bronson Man Sentenced for Firearm ChargesRead the Press Release
GAINESVILLE, FLORIDA – Jamie Vincent Ward, 38, of Bronson, Florida, was sentenced late yesterday to 7 years in prison for two charges of possession of a firearm by a convicted felon. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
According to documents filed in the case, Ward was previously convicted in Georgia for the felony offenses of Escape, Theft by Taking, First Degree Arson, and Possession of Methamphetamine. Ward was a fugitive from Georgia, having absconded from probation on the methamphetamine conviction before his arrest in the federal case.
Ward was the Grand Dragon (leader) of the Florida-Georgia Klavern (chapter) of the Traditionalist American Knights of the Ku Klux Klan (TAKKKK). On March 2, 2015, Ward asked his Grand Nighthawk (security officer) to convert a German Sports Gun .22 caliber rifle to a fully automatic weapon. On April 2, 2015, agents arrested Ward and served a search warrant at his Bronson residence. During that search, they seized a loaded Hi-Point nine millimeter pistol, as well as .22, 9 millimeter, and 12 gauge ammunition. Ward pled guilty on July 2, 2015.
The parties agreed that Ward was aware of, but did not participate in, a plot by other TAKKKK members to murder a former state prison inmate. While the Court expressly noted Ward’s First Amendment right to associate with other TAKKKK members, the Court found that Ward’s association with persons engaged in acts of violence and his failure to discourage or report the murder plot weighed against him at the sentencing hearing.
The case was investigated by the Federal Bureau of Investigation, the United States Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and the Office of Statewide Prosecution, whose joint investigation led to the convictions in this case. The case was prosecuted by Assistant United States Attorney Michael T. Simpson.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Booneville Man Sentenced to 25 Years in Prison for Producing Child PornographyRead the Press Release
Fort Smith, Arkansas – Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Erik Andrew Lotvedt, age 30, of Booneville, Arkansas, was sentenced today to 25 years in prison followed by 10 years of supervised release after pleading guilty to the one-count Information, charging the defendant with using, persuading, inducing, enticing and coercing a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. The Honorable P.K. Holmes III presided over the hearing in the United States District Court in Fort Smith.
In his plea agreement, Lotvedt admitted to using his cell phone to produce an image of child pornography which involved a minor victim who was less than 12 years old.
This case was investigated by the River Valley and Northwest Arkansas Internet Crimes Against Children Task Force with assistance from the Booneville Police Department and the Arkansas State Police. Assistant United States Attorney Ashleigh Buckley prosecuted the case for 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 their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Bettendorf Man Pleads Guilty to Filing a False Tax ReturnRead the Press Release
DAVENPORT, IA – On October 5, 2015, Monte A. Cox, age 55, appeared before the Honorable Stephen B. Jackson, Jr., and pled guilty to filing a false tax return for the year 2009, announced United States Attorney Nicholas A. Klinefeldt.
According to the plea agreement, Cox underreported income on his personal tax returns for the years 2007, 2008, 2009, and 2010. During this period Cox resided in Bettendorf, Iowa, and earned income as a Mixed Martial Arts (MMA) fight promoter and fighter manager. He operated his business under the name Ultimate Productions, Inc. For each of these years, Cox knew that he had received income from his MMA-related activities and ownership of Ultimate Productions, Inc. that exceeded the income he reported on his tax return. Cox underreported his income by an estimated $255,036 for 2007, $295,854 for 2008, $405,778 for 2009, and $152,509 for 2010.
Cox is scheduled to be sentenced before United States District Court Chief Judge John A. Jarvey on February 24, 2016, at 10:00 a.m., in Davenport, Iowa. Filing a false tax return is a felony that carries a maximum term of three years imprisonment, up to $100,000 fine, and up to one year of supervised release.
This case was investigated by the Internal Revenue Service – Criminal Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Baltimore Co-Conspirator Admits to Five RobberiesRead the Press Release
Baltimore, Maryland – Randy Jones, age 38, of Baltimore, pleaded guilty today to robbing a video game store, and admitted to four other robberies.
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; Chief James W. Johnson of the Baltimore County Police Department; Commissioner Kevin Davis of the Baltimore Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement and court documents, on September 24, 2014, Jones, co-conspirator Daryl Norris and another individual entered the Game Stop on Liberty Road in Baltimore, pointing fake guns, which appeared to be real, at an employee. The robbers demanded that the employee open the register, from which they took money. The robbers forced the employee to show them a safe and game systems, and then bound him with zip ties. The robbers took the employee’s cell phone as well as cash and merchandise.
Jones admitted to committing four other robberies from August 26 to December 15, 2014 with Norris and/or others, using a similar modus operandi: Rainbow Clothing on Maiden Choice Lane in Baltimore; 7-Eleven on Pleasant Plains Road in Towson, Maryland; Metro PCS in Baltimore; and the same Game Stop store.
The total loss from the five robberies was $15,312.51. Jones has agreed to the entry of an order requiring him to pay restitution in that amount.
Jones and the government have agreed that if the Court accepts the plea agreement, Jones will be sentenced to between 108 and 151 months in prison. U.S. District Judge George L. Russell III scheduled sentencing for February 5, 2016, at 11:30 a.m.
Darryl Norris, age 37, of Baltimore, previously pleaded guilty to robbing the video game store, and admitted to six other robberies. Judge Russell sentenced Norris on October 16, 2015 to nine years in prison.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County and City Police Departments and Baltimore County and City State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who is prosecuting the case.
Allentown Company Agrees to Pay Fines and Penalties Totaling $1.3 Million for Violating Procedures Related to Chemical ShipmentsRead the Press Release
PHILADELPHIA – A chemical company headquartered in Allentown, PA, has agreed to plead guilty to a six count information charging it with shipping monomethylamine (MMA) to customers in Mexico for whom required identification had not been obtained and failing to report the disappearance of shipments of MMA. Taminco US, Inc. (“Taminco”), has also reached a settlement with the United States of civil claims concerning the same conduct and has agreed to pay a civil fine of $475,000. Taminco has agreed to a criminal penalty of $860,374, which comprises a criminal fine of $650,000 and forfeiture of $210,374. The agreements must be accepted and approved by United States District Court Judge Edward G. Smith. The case was announced today by First Assistant United States Attorney Louis D. Lappen.
Taminco manufactured, distributed, sold and exported MMA. MMA is classified as a “List I” chemical and regulated by the Drug Enforcement Administration (DEA) because it is a necessary chemical for one method of manufacturing methamphetamine, a controlled substance. Due to its List I chemical classification, a manufacturer is required to confirm the identity and verify the legitimacy of any customer to whom it ships the product. The manufacturer is also required to immediately report to the DEA any unusual or excessive loss or disappearance of the product. Taminco manufactured MMA at its plant in Pace, Florida, and had the MMA packaged in 55 gallon drums before shipping it to the border at Laredo, Texas.
According to court documents filed today, between February and June of 2010, Taminco shipped six loads of MMA to two different customers in Mexico for whom Taminco had not obtained required identification. Each load was approximately 16,800 kilograms of MMA. According to court documents, some shipments of MMA disappeared and Taminco failed to promptly report the disappearances to the DEA as required by statute.
DEA discovered evidence of some barrels from missing shipments in August 2011, and discovered some of the missing barrels of MMA in December 2011 and April 2012. In August 2011, DEA agents located wrappers from the June 2010 shipment of MMA drums in an abandoned residence in San Luis, Arizona. In December of 2011, Customs and Border Protection officers intercepted five Taminco drums of MMA when an individual (not associated with Taminco) attempted to transport them by truck into Mexico at Nogales, Arizona. In April of 2012, DEA agents found and seized six additional Taminco drums of MMA at a self-storage unit in Nogales, Arizona. The drums that DEA seized were from March 2010 shipments to the unverified Mexican customer.
Taminco’s civil settlement with the United States resolves civil claims arising from 19 shipments of MMA in early and mid-2010 that were authorized by Taminco without proper verification of the existence and validity of the foreign business entities ordering the List I chemicals. According to the civil claims, Taminco also could not verify that certain of the MMA shipments reached their intended recipient in Mexico, and Taminco failed to report to DEA that those shipments were missing or that delivery could not be verified.
As part of the civil settlement, Taminco has entered into a Memorandum of Agreement (MOA) with the DEA under which Taminco has agreed to comply with certain heightened compliance requirements regarding the manufacture, sale and shipment of listed chemicals. DEA has agreed to forego administrative action against Taminco’s DEA registrations, subject to Taminco’s compliance with the terms of the MOA.
“The defendant in this case violated the law when it chose to ship DEA regulated precursor chemicals, which it knew could be used to manufacture methamphetamine, without following procedures designed to ensure that these chemicals do not end up in the hands of drug dealers,” said Lappen. “As part of our continuing responsibility to help protect the public from dangerous drugs, this office will continue to use both criminal and civil penalties to ensure that companies properly handle List I chemicals.”
“A primary function of the DEA’s Office of Diversion Control is to prevent, detect, and investigate the diversion of listed chemicals such as MMA from chemical supply companies. This chemical is often used by drug-trafficking organizations to manufacture methamphetamine, which is a highly addictive drug,” said Special Agent-in-Charge Gary Tuggle, DEA Philadelphia. “DEA Diversion Investigators play a pivotal role in the agency’s mission of combating the diversion of listed chemicals for illegal purposes. The DEA will remain aggressive in pursuing criminal violations of this nature.”
“DEA in Arizona and Philadelphia worked closely with other members of law enforcement in an effort to determine what became of these chemicals which have the potential to become harmful drugs,” said Special Agent-in-Charge Doug Coleman, DEA Arizona. “DEA is responsible for protecting our citizens from the dangers of drugs and will pursue all responsible parties who play a role in the manufacture and distribution of illicit drugs and their precursors.”
The case was investigated by the Yuma, AZ Resident Office and Scranton Resident Office of the Drug Enforcement Administration with assistance from Customs and Border Protection. It is being prosecuted by Assistant United States Attorneys Albert S. Glenn and Charlene Keller Fullmer.
APL Ltd. to Pay $9.8 Million to Resolve Alleged False Claims Under the Department of Defense Shipping ContractRead the Press Release
APL Limited has agreed to pay the government $9.8 million to resolve allegations that it violated the False Claims Act in connection with a contract to provide GPS tracking of shipping containers in Afghanistan, the Justice Department announced today. APL, an ocean carrier based in Scottsdale, Arizona, is a wholly-owned American subsidiary of Singapore-based Neptune Orient Lines Limited.
The Department of Defense contract required APL to affix a satellite tracking device to each shipping container transported from Karachi, Pakistan to U.S. military bases in Afghanistan when the Department of Defense (DOD) requested the tracking services. The United States alleges that APL billed the DOD for tracking services despite knowing that the tracking devices completely or partially failed to transmit data, or were not affixed to shipping containers. The government also claims that APL attached a single satellite tracking device to two shipping containers despite being required to affix one device to every container.
“Today’s settlement demonstrates our commitment to ensure that contractors doing business with the military perform their contracts honestly,” said Principal Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to ensure that there are appropriate consequences for those who knowingly fail to live up to their bargain and misuse taxpayer funds.”
“The U.S. Attorney’s Office will continue to work with our partners to protect the public fisc from government contractors who fail to deliver what they promise,” said Acting U.S. Attorney Brian J. Stretch of the Northern District of California.
“Thanks to the collaborative efforts of many U.S. law enforcement professionals, APL is today being held accountable for their actions,” said Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “I applaud all those responsible for their continued pursuit of those who attempt to take advantage of the U.S. military through false claims for services that were not provided.”
The settlement with APL was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch; the U.S. Attorney’s Office of the Northern District of California, Affirmative Civil Enforcement Unit; DOD’s Defense Criminal Investigative Service; the Army’s Criminal Investigation Command and DOD’s Defense Contract Audit Agency.
The claims resolved by today’s civil settlement are allegations only; there has been no determination of liability.
APL Ltd. to Pay $9.8 Million to Resolve Alleged False Claims Under the Department of Defense Shipping ContractRead the Press Release
WASHINGTON - APL Limited has agreed to pay the government $9.8 million to resolve allegations that it violated the False Claims Act in connection with a contract to provide GPS tracking of shipping containers in Afghanistan, the Justice Department announced today. APL, an ocean carrier based in Scottsdale, Arizona, is a wholly-owned American subsidiary of Singapore-based Neptune Orient Lines Limited.
The Department of Defense contract required APL to affix a satellite tracking device to each shipping container transported from Karachi, Pakistan, to U.S. military bases in Afghanistan when the Department of Defense (DOD) requested the tracking services. The United States alleges that APL billed the DOD for tracking services despite knowing that the tracking devices completely or partially failed to transmit data, or were not affixed to shipping containers. The government also claims that APL attached a single satellite tracking device to two shipping containers despite being required to affix one device to every container.
“The U.S. Attorney’s Office will continue to work with our partners to protect the public fisc from government contractors who fail to deliver what they promise,” said Acting U.S. Attorney Brian J. Stretch of the Northern District of California.
“Today’s settlement demonstrates our commitment to ensure that contractors doing business with the military perform their contracts honestly,” said Principal Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to ensure that there are appropriate consequences for those who knowingly fail to live up to their bargain and misuse taxpayer funds.”
“Thanks to the collaborative efforts of many U.S. law enforcement professionals, APL is today being held accountable for their actions,” said Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “I applaud all those responsible for their continued pursuit of those who attempt to take advantage of the U.S. military through false claims for services that were not provided.”
The settlement with APL was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch; the U.S. Attorney’s Office of the Northern District of California, Affirmative Civil Enforcement Unit; DOD’s Defense Criminal Investigative Service; the Army’s Criminal Investigation Command and DOD’s Defense Contract Audit Agency.
The claims resolved by today’s civil settlement are allegations only; there has been no determination of liability.
7 Charged in Heroin Trafficking RingRead the Press Release
STEUBENVILLE, Ohio – A grand jury in Columbus, Ohio has charged seven individuals for their roles in a Steubenville-area heroin-trafficking operation.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and William J. Ihlenfeld, II, United States Attorney for the Northern District of West Virginia, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA), Jefferson County Prosecutor Jane M. Hanlin and members of the Jefferson County Drug Task Force and the Hancock-Brooke-Weirton Drug Task Force announced the indictment returned on October 20.
The yearlong investigation by local, state and federal law enforcement culminated in the seizure of eight firearms, three vehicles and approximately $110,000 of suspected narcotics proceeds.
According to court documents, investigators discovered the organization was responsible for street-level heroin sales in Steubenville, Ohio, including in the Market Street apartment public housing area, Weirton, W.Va., Wheeling, W.Va. and Bellaire, Ohio.
Those charged in the indictment include:
Frederick A. McShan, 35, of Steubenville, Ohio
Donae F. Grier, 37, of Irving, Texas
Christopher J. Bishop, 31, of Weirton, W.Va.
David McShan, 37, of Steubenville, Ohio
Kerris D. Moncrease, 30, of Weirton, W.Va.
Terrence J. Smith, 26, of Steubenville, Ohio
Perrier D. Coleman, 19, of Steubenville, Ohio
All of the defendants are scheduled for arraignment at 1pm today before U.S. District Chief Judge Edmund A. Sargus.
Conspiracy to possess with intent to distribute more than one kilogram of heroin is a federal crime punishable by 10 years to up to life in prison.
U.S. Attorneys Stewart and Ihlenfeld also commended the cooperative efforts of law enforcement, as well as OCDETF Chief Michael Hunter, Assistant United States Attorney Steve Vogrin and Special Assistant United States Attorney Jane Hanlin who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Monday 26 October 2015
Three Defendants Convicted of Conspiring to Illegally Export Controlled Technology to the Russian MilitaryRead the Press Release
Earlier today, after a month-long trial, Alexander Posobilov, Shavkat Abdullaev and Anastasia Diatlova were convicted of all counts, including conspiring to export, and illegally exporting, controlled microelectronics to Russia. Posobilov was also convicted of money laundering conspiracy. These defendants, all of whom worked at Arc Electronics Inc. (Arc), a Houston-based corporation, and eight other individuals were originally charged in October 2012. Five members of the conspiracy, including Arc owner Alexander Fishenko, previously pleaded guilty to related charges.
The convictions were announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Robert L. Capers of the Eastern District of New York, Assistant Director Randall C. Coleman of the FBI's Counterintelligence Division and Director Douglas Hassebrock of the Department of Commerce’s Office of Export Enforcement.
“Alexander Posobilov, Shavkat Abdullaev and Anastasia Diatlova evaded U.S. export laws to illegally send sophisticated microelectronics to Russia,” said Assistant Attorney General Carlin. “By purposefully circumventing U.S. law, including the International Emergency Economic Powers Act and the Arms Export Control Act, the defendants jeopardized our national security.”
“These defendants were key players in a sprawling scheme to illegally export sophisticated technology to Russia,” said U.S. Attorney Capers. “Through lies and deceit, the defendants and their co-conspirators sold over $30 million of microchips, much of which was destined for Russian military and intelligence agencies.”
“By putting a halt to this conspiracy, and stopping the flow of these dual-use components to the Russian military and intelligence services, this verdict represents a clear victory for our national security,” said Assistant Director Coleman.
“Today's convictions send a strong message to those who willfully evade export control laws and jeopardize the national security of the United States,” said Director Hassebrock. “This case is the result of outstanding collaborative investigative work by the Justice Department, the Commerce Department and the FBI to break up a network whose aim was to illegally ship sophisticated U.S.-origin technology to Russia.”
The evidence at trial established that between approximately October 2008 and October 2012, these defendants and their co-conspirators obtained advanced, technologically cutting-edge microelectronics from manufacturers and suppliers located within the United States and exported those high-tech goods to Russia, while carefully evading the government licensing system set up to control such exports. The microelectronics shipped to Russia included analog-to-digital converters, static random access memory chips, microcontrollers and microprocessors. These commodities have applications, and are frequently used, in a wide range of military systems, including radar and surveillance systems, missile guidance systems and detonation triggers. Russia does not produce many of these sophisticated goods domestically.
Posobilov was the Procurement Director of Arc, Abduallev was the Shipping Manager and Diatlova was a salesperson. To induce manufacturers and suppliers to sell them these high-tech goods, and to evade applicable export controls, the defendants and their co-conspirators often provided false end user information in connection with the purchase of the goods, concealed the fact that they were resellers and falsely classified the goods they exported on export records submitted to the Department of Commerce. For example, Arc falsely claimed to be a traffic light manufacturer on its website. In fact, Arc manufactured no goods and operated exclusively as an exporter.
Despite this subterfuge, the evidence established that the defendants were supplying Russian government agencies with sophisticated microelectronics. For example, the investigation uncovered a letter sent by a specialized electronics laboratory of Russia’s Federal Security Service (FSB), Russia’s primary domestic intelligence agency, to an Arc customer regarding certain microchips obtained for the FSB by Arc. The letter stated that the microchips were faulty and demanded that the defendants supply replacement parts.
Shortly before trial, Arc President Alexander Fishenko pleaded guilty to all charges against him, including acting as an agent of the Russian government without prior notification to the Attorney General, as well as conspiring to export, and illegally exporting, microelectronics to Russia, money laundering conspiracy and obstruction of justice. Fishenko is currently awaiting sentencing.
When sentenced by U.S. District Judge Sterling Johnson Jr. of the Eastern District of New York, defendants Posobilov, Abdullaev and Diatlova face up to five years in prison for the conspiracy conviction, and up to 20 years in prison for each violation of the International Emergency Economic Powers Act (IEEPA) and the Arms Export Control Act (AECA). Posobilov also faces up to 20 years in prison for money laundering conspiracy.
The case is being prosecuted by Assistant U.S. Attorneys Daniel Silver, Una Dean, Richard Tucker and Claire Kedeshian of the Eastern District of New York, as well as Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section.
Three Defendants Convicted of Conspiring to Illegally Export Controlled Technology to the Russian MilitaryRead the Press Release
Earlier today, after a month-long trial, Alexander Posobilov, Shavkat Abdullaev and Anastasia Diatlova were convicted of all counts, including conspiring to export, and illegally exporting, controlled microelectronics to Russia. Posobilov was also convicted of money laundering conspiracy. These defendants, all of whom worked at Arc Electronics, Inc. (Arc), a Houston, Texas-based corporation, and eight other individuals were originally charged in October 2012. Five members of the conspiracy, including Arc owner Alexander Fishenko, previously pled guilty to related charges.
The convictions were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, John P. Carlin, Assistant Attorney General for National Security, Randall C. Coleman, Assistant Director of the FBI's Counterintelligence Division, and Douglas Hassebrock, Director of the Commerce Department Office of Export Enforcement.
“These defendants were key players in a sprawling scheme to illegally export sophisticated technology to Russia,” stated United States Attorney Capers. “Through lies and deceit, the defendants and their co-conspirators sold over $30 million of microchips, much of which was destined for Russian military and intelligence agencies.”
“Alexander Posobilov, Shavkat Abdullaev and Anastasia Diatlova evaded U.S. export laws to illegally send sophisticated microelectronics to Russia,” said Assistant Attorney General Carlin. “By purposefully circumventing U.S. law, including the International Emergency Economic Powers Act and the Arms Export Control Act, the defendants jeopardized our national security.”
“By putting a halt to this conspiracy, and stopping the flow of these dual-use components to the Russian military and intelligence services, this verdict represents a clear victory for our national security,” said Assistant Director Coleman of the FBI’s Counterintelligence Division.
“Today’s convictions send a strong message to those who willfully evade export control laws and jeopardize the national security of the United States. This case is the result of outstanding collaborative investigative work by the Justice Department, the Commerce Department and the FBI to break up a network whose aim was to illegally ship sophisticated U.S.-origin technology to Russia,” said Director of the Commerce Department Office of Export Enforcement Hassebrock.
The evidence at trial established that between approximately October 2008 and October 2012, these defendants and their co-conspirators obtained advanced, technologically cutting-edge microelectronics from manufacturers and suppliers located within the United States and exported those high-tech goods to Russia, while carefully evading the government licensing system set up to control such exports. The microelectronics shipped to Russia included analog-to-digital converters, static random access memory chips, microcontrollers and microprocessors. These commodities have applications, and are frequently used, in a wide range of military systems, including radar and surveillance systems, missile guidance systems and detonation triggers. Russia does not produce many of these sophisticated goods domestically.
Posobilov was the Procurement Director of Arc, Abduallev was the Shipping Manager and Diatlova was a salesperson. To induce manufacturers and suppliers to sell them these high-tech goods, and to evade applicable export controls, the defendants and their co-conspirators often provided false end user information in connection with the purchase of the goods, concealed the fact that they were resellers and falsely classified the goods they exported on export records submitted to the Department of Commerce. For example, Arc falsely claimed to be a traffic light manufacturer on its website. In fact, Arc manufactured no goods and operated exclusively as an exporter.
Despite this subterfuge, the evidence established that the defendants were supplying Russian government agencies with sophisticated microelectronics. For example, the investigation uncovered a letter sent by a specialized electronics laboratory of Russia’s Federal Security Service (FSB), Russia’s primary domestic intelligence agency, to an Arc customer regarding certain microchips obtained for the FSB by Arc. The letter stated that the microchips were faulty and demanded that the defendants supply replacement parts.
Shortly before trial, Arc President Alexander Fishenko pled guilty to all charges against him, including acting as an agent of the Russian government without prior notification to the Attorney General, as well as conspiring to export, and illegally exporting, microelectronics to Russia, money laundering conspiracy and obstruction of justice. Fishenko is currently awaiting sentencing.
When sentenced by United States District Judge Sterling Johnson, Jr., defendants Posobilov, Abdullaev and Diatlova face up to five years in prison for the conspiracy conviction, and up to 20 years in prison for each violation of the International Emergency Economic Powers Act (IEEPA) and the Arms Export Control Act (AECA). Posobilov also faces up to 20 years in prison for money laundering conspiracy.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Daniel S. Silver, Una A. Dean, Richard M. Tucker and Claire Kedeshian, as well as Trial Attorney David C. Recker from the Department of Justice’s Counterintelligence and Export Control Section, are in charge of the prosecution.
The Defendants:
Alexander Posobilov
Age: 61Shavkat Abdullaev
Age: 37Anastasia Diatlova
Age: 41E.D.N.Y. Docket No. 12 CR 626 (SJ)
Tarrant County Men Sentenced for Running $2.4 Million Ponzi SchemeRead the Press Release
FORT WORTH, Texas — Two Tarrant County men were sentenced to lengthy federal prison sentences following their guilty pleas earlier this year to a conspiracy charge stemming from their operation of an investment Ponzi scheme they ran from 2004 through 2014, announced U.S. Attorney John Parker of the Northern District of Texas.
Kurtis Keith Lowe, 63, of Fort Worth, Texas, and Robert Allen Blackburn, 49, of Arlington, Texas, were each sentenced on Friday, by U.S. District Judge John McBryde, to 60 months in federal prison and ordered to pay $2,373, 462 in restitution, jointly and severally. Each must surrender to the Bureau of Prisons on November 13, 2015.
Both Lowe and Blackburn pleaded guilty in July 2015 to one count of conspiracy to commit mail fraud.
According to documents filed in the case, in 2004, Blackburn, a licensed insurance agent, convinced a victim to invest money in Omni Capital Management Trust (OCMT), an entity created merely as a convenience for Lowe, OCMT’s sole owner. Blackburn knew OCMT was not a functioning company. Lowe deposited the investor’s check into OCMT’s business bank account and gave the proceeds to Blackburn. Lowe and Blackburn repeated this procedure several times.
By 2007, Blackburn was regularly recruiting individuals to invest in OCMT using materially false representations about OCMT. In particular, Blackburn falsely represented that victims’ funds would be invested in an annuity fund, when in fact, he knew the money would not be invested at all.
To entice investors to make multiple investments, Lowe and Blackburn created more bogus companies, including Amwest Capital Management (AMWEST) and National Fidelity Management (NFM). Lowe also opened accounts at an out-of-state mail service, and established separate telephone numbers for each company, to make investors believe the bogus companies were legitimate.
When investors requested account statements or tax forms, Blackburn would advise Lowe how much the investor had deposited, and Lowe would generate forms that falsely showed the investors’ money had been invested and had, in fact, appreciated.
Between January 2007 and April 2014, Blackburn solicited more than $2.4 million from 21 different investors using false material representations. None of the money was invested.
The FBI investigated the case.
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St. Thomas Man Pleads Guilty to Firearms Conspiracy ChargesRead the Press Release
St. Thomas, USVI – On Monday, October 26, 2015, Tequan Joseph, 23, pleaded guilty in District Court on St. Thomas to cons piracy to ship f irearms with obliterated serial numbers, unlawful transportation of those firearms, and to a Middle District of Florida charge of false statement n connection with purchase of a firearm, United States Attorney Ronald W. Sharpe announced. Sentencing is scheduled for February 25, 2016.
According to the plea agreement filed with the court, between August 10, 2013, and October 7, 2013, Joseph conspired with other individuals to unlawfully purchase firearms and mail those firearms with obliterated serial numbers from Jacksonville, Florida, to St. Thomas, Virgin Islands. A total of six firearms were shipped and recovered. Joseph is not a federal licensed firearms dealer and is not authorized to possess those firearms in the U.S. Virgin Islands. He faces a maximum sentence of five years in prison and a $250,000 fine. Additionally, Joseph faces a maximum of ten years in prison and a $250,000 fine for the Middle District of Florida firearms charge.
This case is the result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Southern California Man Sentenced for Smuggling Synthetic Drugs into Federal PrisonRead the Press Release
FRESNO, Calif. — James Steven Harris, aka Steve Harris, 45, of Loma Linda, was sentenced today to two years and six months in prison for his involvement in smuggling smokeable synthetic cannabinoids, commonly known as “spice,” “K2, or “incense,” to his brother who was then an inmate of Taft Correctional Institution, United States Attorney Benjamin B. Wagner announced.
On August 10, 2015, Steve Harris sentence pleaded guilty to two counts of making false statements under penalty of prosecution on Federal Bureau of Prisons visitor forms that he was not in possession of contraband, knowing that he was in possession of smokeable synthetic drugs containing XLR11. According to court documents, on one occasion Steve Harris successfully smuggled 15.5 grams of XLR11 into TCI for his brother Tracy McArthur Harris, aka Trey Harris, 42, and later attempted to smuggle 34.3 grams of XLR11, along with four packages of rolling papers, into the prison. At the time, XLR11 was a controlled substance analogue, which has since been made a Schedule I controlled substance.
At sentencing, United States District Judge Anthony W. Ishii stated: “The serious nature of smuggling contraband into a federal prison has serious consequences.”
Tracy Harris was subject to a prison disciplinary proceeding that added more time to his current 11-year prison term that he is currently serving for a drug conspiracy conviction. He was also sentenced in May to a consecutive one-year prison term for his involvement in obtaining the synthetic drugs from his brother. Court documents indicate that Tracy Harris, in turn, distributed the drug to other inmates at Taft.
A report by the Office of the Inspector General of the U.S. Department of Justice found that drugs reach federal prisoners primarily through inmate visitors.
This case was the product of an investigation by the Federal Bureau of Investigation and the Special Investigative Supervisor’s Office of Taft Correctional Institution. Assistant United States Attorney Karen A. Escobar prosecuted the case.
San Juan Puerto Rico Agrees to Make Investments in Clean WaterRead the Press Release
Under a settlement with the Department of Justice and the Environmental Protection Agency (EPA), the Municipality of San Juan has agreed to make substantial upgrades to its storm sewer systems. The upgrades and related cleaning activities are aimed at eliminating or minimizing daily discharges of large volumes of raw sewage and will minimize discharges of other pollutants into nearby water bodies, including the San Juan Bay Estuary and the Martin Peña Canal. The estimated cost of the upgrades and actions over the life of the agreement is $180 million.
“The residents of San Juan deserve a better storm sewer system, one that does not expose them to the serious health risks posed by untreated sewage,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The requirements of this settlement are good for the environment and necessary for the long-term health and safety of local waterways and communities.”
“Billions of gallons of raw sewage are released every year, threatening public health and the environment in San Juan,” said Regional Administrator Judith A. Enck for EPA. “This legally binding agreement will ensure that this sad legacy of sewage pollution is finally addressed.”
Storm water runoff in urban areas is collected through separate storm sewer systems and is discharged into local waterways. When rain falls on roofs, streets and parking lots, the water cannot soak into the ground and carries trash, bacteria, heavy metals and other pollutants into streams, often damaging health. In addition, property and infrastructure can be damaged by storm water runoff due to erosion. The primary method to control these storm water discharges is through the use of effective practices to protect water quality under a storm water permit issued under the Clean Water Act. Storm water permits do not authorize the discharge of raw sewage, which has been occurring in San Juan for years.
In addition to documenting daily discharges of untreated sewage, EPA documented that the Municipality of San Juan failed to implement its own storm water management plan, including failing to establish storm sewer maps to facilitate the detection of illegal discharges and failing to implement a program to detect illegal discharges and failure to provide routine cleaning and maintenance to its system. Between 2008 and 2013, EPA documented that pollutants, including millions of gallons of untreated sewage, were being discharged every day from the Municipality of San Juan’s system. In addition to collecting rain from streets, EPA determined that San Juan’s storm sewer system has been collecting sewage from homes through pipes that have been improperly connected to the storm sewers. EPA also determined that infiltration from cracked sanitary systems and direct connections of sanitary sewers to storm sewers have resulted in additional contributions of untreated sewage to the storm sewer systems.
The waters receiving the untreated sewage include those that are classified for activities where the human body may come into direct and indirect contact with the water, such as fishing, boating, swimming, wading and/or other recreational and commercial activities. Untreated sewage can carry bacteria, viruses and other harmful pollutants that can cause a number of illnesses. Direct and indirect human exposure to or contact with untreated sewage and contaminated waters discharged on a daily basis presents an imminent and substantial endangerment to human health and welfare.
Under this legal agreement, the Municipality of San Juan will come into compliance with their storm water permit, develop and implement a storm water management program to prevent pollutants from entering and being discharged from their storm sewer systems and to develop and implement a plan to identify and address issues within their systems, including eliminating illegal discharges. Illicit connections and discharges in some areas of San Juan must be eliminated within 10 years and in other areas within 14 years. Within eight years, the Municipality of San Juan must also submit a schedule for the completion of an investigation of and a design plan for eliminating all illegal connections and discharges to its municipal separate storm sewer systems in the remainder of the city of San Juan and San Juan must also implement the plan and complete construction within an EPA-approved schedule.
Additional requirements under the agreement include:
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Capital improvements: The Municipality of San Juan must install, inspect, maintain and replace warning signs at sewer outfalls, submit a vacuum truck sludge disposal plan and submit standard operating procedures for pump stations. The municipality must also submit a plan to address and abate backflow from the receiving waters into the storm sewer system east of the Stop 18 Pump Station.
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Asset management program: The Municipality of San Juan will develop an asset management program, including protocols and operating procedures for inspection, cleaning and repair of sewer infrastructure; consistently clean the sewer system; and submit a routine cleaning schedule and checklist to the EPA for review.
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Spill prevention control and countermeasures: San Juan will develop and implement a spill prevention control and countermeasures plan, as well as a spill control plan.
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Water quality monitoring and outfall inventory program: The municipality will sample and monitor water quality, maintain an electronic record of information on system outfalls and complete an inventory of all of its outfalls in the city of San Juan within three years.
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Warning Signs: The Municipality of San Juan will inform the public through warning signs posted at discharge points and through a public education program on the dangers of being exposed to these discharges.
- Urgent Action Registry: The Municipality of San Juan will maintain an Urgent Action Registry that will track all complaints by government agencies and individuals of illegal discharges into San Juan's storm sewer systems. San Juan will address these complaints within one to three years from the date a complaint is made. This is an innovative tool to address the multiple traditionally unaddressed complaints to bring relief to affected residents.
The Municipality of San Juan will consider green infrastructure projects to comply with obligations under the agreement. Green infrastructure is an environmentally friendly technique to manage storm water that uses vegetation, soils, and natural processes to manage water and create healthier, more resilient urban environments.
Discharges of untreated sewage from San Juan’s storm sewers disproportionately affect disadvantaged communities in the municipality, leading to the prevalence of gastrointestinal symptoms in areas such as the neighborhoods adjacent to the Martín Peña Canal. By requiring the municipality to prevent exposure to untreated sewage, EPA is advancing environmental justice in the community through the fair treatment and meaningful involvement of all people, regardless of race or income, in the environmental decision-making process.
The settlement was lodged today in the U.S. District Court of Puerto Rico, and is subject to a 30-day public comment period and approval by the federal court. The settlement will be available for viewing at www.justice.gov/enrd/Consent_Decrees.html
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