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9 December 2015
Southeastern Connecticut Cocaine Trafficker Sentenced to More Than 9 Years in PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PEDRO RIVERA, also known as “Cheito,” 37, of Groton, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 116 months of imprisonment, followed by five years of supervised release, for trafficking cocaine. RIVERA’s mother and father, who assisted RIVERA’s cocaine trafficking operation, also were sentenced today.
According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that certain members of the conspiracy coordinated the shipment of heroin, and sometimes cocaine, via human couriers from the Dominican Republic to the United States. Other members of the conspiracy obtained kilogram-quantities of cocaine in Puerto Rico and then mailed the drug to locations in and around New London where it was sold to distributors and customers. Narcotics were also obtained from sources in New York City and Rhode Island.
More than 100 individuals were charged with federal and state offenses as a result of this investigation.
RIVERA arranged the shipment of cocaine from sources in Puerto Rico to the New London area, and was assisted by individuals who lived in and around Morovis, Puerto Rico, including his parents, JUAN RIVERA ORTIZ and IVETTE PAGAN RODRIGUEZ. RIVERA then distributed the cocaine to customers in southeastern Connecticut through a network of associates.
Judge Bryant sentenced JUAN RIVERA ORTIZ, 58, to 30 months of imprisonment, followed by three years of supervised release, and IVETTE PAGAN RODRIGUEZ, 54, to five years of probation.
PEDRO RIVERA has been detained since his arrest on April 3, 2013. On December 9, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more cocaine.
RIVERA ORTIZ and PAGAN RODRIGUEZ pleaded guilty on November 24, 2014.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant U.S. Attorneys Sarah P. Karwan, Alina P. Reynolds and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
Six Indicted in Connection with Massena Cocaine and Heroin RingRead the Press Release
PLATTSBURGH, NEW YORK – Six people have been indicted on charges related to cocaine and heroin trafficking in and around the Massena area, announced United States Attorney Richard S. Hartunian, James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), and Mark LaBrake, Chief of Police for the Massena Police Department.
The indictment charges the following people with conspiracy to possess with intent to distribute and to distribute heroin and cocaine:
* Jonathan Rodriguez, a/k/a “Javi” a/k/a “Big Guy” a/k/a “Big Man” a/k/a “Babs” a/k/a “Bebz” a/k/a/ “Bebo,” age 27, of Bronx, New York; * Ricardo Garcia, aka “Bucky,” age 24, of New York City; * Tina Fumano, age 42, of Massena, New York; * Cecilia Lindsey, a/k/a “Cece,” age 28, of Massena, New York; * Nicole Francis, age 27, of Norwood, New York; and
* William Rochefort, age 21, of Massena, New York.Rodriguez, Fumano and Garcia each face at least 5 years and up to 40 years of imprisonment, and a maximum $5 million fine, if convicted. Lindsey, Francis and Rochefort each face up to 20 years of imprisonment and a maximum $1 million fine if convicted.
The defendants, except Garcia, will appear for arraignments in Plattsburgh on December 10, before United States Magistrate Judge Gary L. Favro. Garcia is in custody in the Southern District of New York and will appear for arraignment at a later date.
“Vigorous law enforcement by federal, state, local, and Canadian agencies is essential to ending the emerging heroin epidemic and combatting the continuing cocaine problem,” stated U.S. Attorney Richard S. Hartunian. “The outstanding collaboration here was critical to bringing this case. We remain committed to working together to maintain public health and safety in this community.”
“Dismantling drug trafficking organizations is a critical component of our effort to enhance public safety in our communities,” stated HSI Special Agent in Charge James C. Spero.
“By disrupting these organizations, we are on the path to addressing the root causes of a myriad of criminal activity associated with drug trafficking.”“This operation is a success story of how agencies come together to address the illegal drug trade in Northern New York,” stated Massena Police Chief Mark LaBrake. “This operation, which started with an investigation by the Massena Police Department, was able to dismantle a large pipeline of cocaine and heroin trafficking from New York City to Massena. The hope is that people from out of the area will realize that bringing this poison to our community will not be tolerated. I again want to thank our local, state and federal partners for their assistance in helping battle this problem of dangerous drugs that plagues our community.”
The indictment is the result of a year-long investigation led by HSI’s Border Enforcement Security Task Force (BEST) in Massena, which consists of law enforcement officers from the Massena Police Department, the St. Lawrence County Sheriff’s Department and the New York State Police, and which receives assistance from the U.S. Border Patrol, the Drug Enforcement Administration, the District Attorneys of Clinton, Franklin, and St. Lawrence Counties, the St. Regis Mohawk Tribal Police Department, the Oneida Indian Nation Police, U. S. Customs and Border Protection, the U.S. Coast Guard Investigative Service, the Potsdam Police Department, the Royal Canadian Mounted Police, the Surete du Quebec, and the New York Attorney General’s Office.
The charges in the indictment are merely accusations. The defendants are presumed innocent until proven guilty.
This case is being prosecuted by Assistant U.S. Attorneys Katherine Kopita and Douglas G. Collyer.
Sacramento Man Sentenced to 20 Months in Prison for Tax Preparation FraudRead the Press Release
SACRAMENTO, Calif. — William G. Green, 49, of Sacramento, was sentenced today by United States District Judge Kimberly J. Mueller to 20 months in prison and ordered to pay restitution to the IRS for assisting in the preparation of false tax returns, United States Attorney Benjamin B. Wagner announced.
According to court documents, while Green prepared tax returns at a Sacramento business called “Will the Tax Man” from 2007 to at least April 2011, he knowingly placed false information on his clients’ returns to increase their refunds or reduce their taxes owed. The false information that Green added included false charitable contributions in large round numbers to charities like Goodwill Industries, AMVETS, and United Cerebral Palsy, and other deductions and credits related to education and business expenses. The false deductions and credits were not based on information provided by Green’s clients, and Green typically did not inform his clients that these false deductions and credits had been added. Green’s conduct resulted in a total tax loss of approximately $482,000.
This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Christopher S. Hales prosecuted the case. Trainer
Roofing Company Owner Pleads Guilty to Charges in Connection with Employee's Fatal FallRead the Press Release
PHILADELPHIA - James J. McCullagh, 60, of Meadowbrook, PA, pleaded guilty today to four counts of making false statements, one count of obstruction of justice, and one count of willfully violating an Occupational Safety and Health Administration (OSHA) regulation causing death to an employee. U.S. District Court Judge Nitza I. Quinones Alejandro scheduled a sentencing hearing for March 29, 2016. The defendant faces a maximum statutory sentence of 25 years in prison, a possible fine, supervised release, and a $510 special assessment.
McCullagh, who owns James J. McCullagh Roofing, failed to provide fall protection equipment to his employees. On June 21, 2013, one of McCullagh’s employees was killed after falling approximately 45 feet from a roof bracket scaffold while performing roofing work for McCullagh. In connection with the OSHA investigation of the fatality, McCullagh attempted to cover up his failure to provide fall protection by falsely stating, on four occasions, that he had provided fall protection equipment, including safety harnesses, to his employees. McCullagh knew that he had not provided fall protection to his employees and none of his employees had safety harnesses or any other form of fall protection. McCullagh told an OSHA Compliance Safety and Health Officer that his employees had been wearing safety harnesses tied off to an anchor point when he saw them earlier in the day prior to the fall. McCullagh also directed other employees to falsely state that they had fall protection, including safety harnesses, on the day of the fall.
The case was investigated by the United States Department of Labor-Office of Inspector General Labor Racketeering and Fraud Investigations and the Occupational Safety and Health Administration, with assistance from the U.S. Department of Labor's Occupational Safety and Health Administration and Office of Inspector General. It is being prosecuted by Assistant United States Attorney Mary Kay Costello.
Rochester Man Pleads Guilty to Bank RobberyRead 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 Maximilion Broadnax, 31, of Rochester, NY, pleaded guilty to robbing the Chase Bank at 900 Dewey Avenue in Rochester, before U.S. District Judge David G. Larimer. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000, or both.Assistant U.S. Attorney Charles E. Moynihan, who is handling the prosecution of the case, stated that on May 22, 2015, Broadnax’s co-defendant, Tiffany Hogan, entered the Chase Bank just after it opened and passed the bank teller a note drafted by Broadnax. The note demanded money and stated that nobody would be hurt if the teller complied. After receiving a specific amount of United States currency, Hogan left the bank and got into a white minivan in which Broadnax was waiting and the two drove away from the location.
Hogan and Broadnax were arrested later that same day at 17 Second Street in Rochester by members of the Rochester Police Department who were looking for Broadnax in connection with his involvement in stolen vehicles. While taking Broadnax into custody, officers saw that Broadnax’s pants fell down and a large amount of United States currency fell out.
Tiffany Hogan was also convicted of bank robbery.
Today’s plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge, as well as the Town of Greece Police Department, under the direction of Chief Patrick Phelan, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for January 20, 2016, at 2:30 p.m. before Judge Larimer.Prosecutors, Officers and Agents Recognized by the Department of JusticeRead the Press Release
HAMMOND – United States Attorney David Capp announced that:
David J. Nozick, Assistant U.S. Attorney for the U.S. Attorney’s Office, Northern District of Indiana;
Bruce R. Hegyi, Trial Attorney for the Department of Justice Capital Case Section;
Jason M. Gore, Special Agent for the Bureau of Alcohol, Tobacco, Firearms and Explosives;
Arthur L. Grist, Jr., Special Agent for the Federal Bureau of Investigation; and
Brian M. Paine, Sergeant for the East Chicago Police Department,
all received the highest award from the Department of Justice, Criminal Division during a ceremony in Washington D.C. on Monday, December 7, 2015. Attorney General Loretta Lynch spoke at this ceremony recognizing outstanding law enforcement efforts throughout the country.
The award was presented for their outstanding performance in the investigation and prosecution of the Imperial Gangsters, particularly the conviction of the local leader, Juan Briseno. Briseno was sentenced to six life sentences in prison earlier this year. In total, 24 members or associates of this criminal organization were indicted, convicted and sentenced to substantial terms of imprisonment.
United States Attorney Capp stated, “All of us are extremely proud of the exemplary work by this law enforcement team. The Imperial Gangster convictions have substantially reduced the level of violence in East Chicago. The tireless work of these individuals has greatly benefitted the citizens of Northwest Indiana. Yesterday’s award reflects the national importance and recognition of their efforts.”
East Chicago Police Chief Mark Becker stated, “Sgt. Paine’s award is a great honor for him and our department. We look forward to our continued partnership with the federal and other local departments in our ongoing effort to enhance the safety of our communities.”
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Previously Convicted Felon from Newark, New Jersey, Charged with Firearms Possession, Drug Distribution OffensesRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man with at least six felony convictions in New Jersey courts was arrested today after federal law enforcement officers found four handguns, a 12-guage shotgun and more than 500 grams of cocaine at his residence, U.S. Attorney Paul J. Fishman announced.
Carlos Bess, 35, of Newark, New Jersey, is charged by criminal complaint with one count of possessing with intent to distribute 500 grams of cocaine and five counts of being a felon in possession of a firearm. He appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was detained.
According to the complaint:
Since June 2015, agents with the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) have been investigating the sales of narcotics, including heroin and cocaine, in and around Middlesex and Essex Counties. Pursuant to a lawful search warrant executed at Bess’s Newark residence this morning, federal agents found a loaded .357 revolver, two loaded .380 pistols, a loaded 9 millimeter pistol, a 12-gauge shotgun and more than 500 grams of cocaine.
U.S. Attorney Fishman credited special agents with the ATF, under the direction of Special Agent in Charge George P. Belsky in Newark, and special agents with the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: John H. Yauch Esq., Assistant Federal Public Defender, Newark
Pittston Man Indicted for Heroin Trafficking and Firearm OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Pittston man was indicted yesterday by a federal grand jury in Scranton on heroin trafficking and firearm offenses.
According to United States Attorney Peter Smith, the indictment charges Samuel Lombardo, age 50, with distributing and possessing with intent to distribute heroin in Pittston on two occasions in August of 2015. The indictment also charges Lombardo with possessing a firearm in furtherance of his heroin trafficking activities.
The charges stem from a joint investigation between the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Kingston Police Department in which Lombardo allegedly sold heroin on two occasions in August of 2015. When Mr. Lombardo was stopped he had 7 additional bags of heroin and a loaded .25 caliber semi-automatic Armi Tanfolio handgun inside of his vehicle.
The investigation of these cases was conducted by the ATF, working in conjunction with the Kingston Police Department. The prosecution is assigned to Assistant United States Attorney Evan Gotlob.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a districtwide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Lombardo faces a minimum of 5 years and up to a lifetime term of incarceration as well as fines totaling $3,250,000.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Philadelphia Man Charged with Stealing Dead Mother's BenefitsRead the Press Release
PHILADELPHIA - Anthony Cooper, 67, of Philadelphia, Pennsylvania, was charged by information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the information, the defendant received retirement benefits intended for his mother, after his mother’s death in February 1991 until December 2011. The defendant’s alleged actions resulted in a loss to the government of approximately $69,528.
If convicted, the defendant faces a statutory maximum sentence of 10 years in prison, up to three years of supervised release, restitution to the government of $69,528, a fine, and a $100 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pembroke Man Sentenced for Tax EvasionRead the Press Release
A Pembroke, Mass., man was sentenced today in U.S. District Court in Boston in connection with failing to pay taxes on more than $1.1 million he earned as a carpenter from 1998 to 2006.
Theodore Hammond, Jr., 61, was sentenced by U.S. District Judge F. Dennis Saylor IV to six months in prison, one year of supervised release and ordered to pay the IRS restitution of $406,458. Hammond pleaded guilty in July 2015 to two counts of tax evasion and seven counts of subscribing to false tax returns.
Hammond was a self-employed carpenter for many years. From1998 to 2006, he earned $1.1 million, but failed to timely file federal income tax returns and, when he did file, he falsely reported zero income.
At sentencing, Hammond argued that he had based his conduct on information he learned from tax-defier websites, lectures, and books, such as those promoted by Irwin Schiff, who wrote The Great Income Tax Hoax: Why You Can Immediately Stop Paying This Illegally Enforced Tax, and Peter Hendrickson, who wrote Cracking the Code: The Fascinating Truth About Taxation in America. Judge Saylor noted the importance of deterring others from believing the misguided and misleading theories promoted by individuals such as Schiff and Hendrickson, both of whom served federal prison sentences.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Robert E. O’Malley, Special Agent in Charge of the Treasury Inspector General for Tax Administration, New York Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Sandra S. Bower of Ortiz’s Economic Crimes Unit and Christine Wichers of Ortiz’s Civil Division.
Oregon Man Indicted for Failure to File Tax ReturnsRead the Press Release
A federal grand jury sitting in Portland, Oregon, returned an indictment yesterday charging a Hillsboro, Oregon, resident with six counts of willfully failing to file an income tax return, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the indictment, Winston Shrout received gross income for the years 2009 through 2014 in amounts that required him to file a federal income tax return. However, for each of those years, Shrout willfully failed to file any income tax returns. Shrout’s income included payments for services as a presenter at seminars; licensing fees associated with the sale of products in his name and the name of his business, Winston Shrout Solutions in Commerce; and annual pension payments.
If convicted, Shrout faces a statutory maximum sentence of six years in prison and a maximum fine of $150,000.
Acting Assistant Attorney General Ciraolo thanked special agents of Internal Revenue Service-Criminal Investigation, who investigated the case and Trial Attorneys Stuart A. Wexler and Ryan R. Raybould of the Tax Division who are prosecuting the case.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
Newark Man Sentenced for Receiving Child PornographyRead the Press Release
COLUMBUS, Ohio – Marion M. Kimball, 51, of Newark, Ohio, was sentenced in U.S. District Court to 144 months in prison and 10 years of supervised release for receiving child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the sentence handed down today by Senior U.S. District Judge George C. Smith.
According to court documents, investigators executed a search warrant at Kimball’s home in February 2015 after undercover agents observed child pornography files being shared via peer-to-peer file-sharing programs at an IP address registered to the home. The titles of the files indicate the pornography involved children ages seven years old to 10 years old.
In total, investigators discovered more than 11,000 images and 230 videos of child pornography.
Kimball pleaded guilty on July 31, 2015 to one count of receiving child pornography.
This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Stewart commended the cooperative investigation by the FBI Columbus Child Exploitation Task Force, which includes officers from the Westerville, Reynoldsburg and Powell Police Departments as well as Assistant United States Attorney Jessica H. Kim, who is representing the United States in this case.
New York Man Sentenced to 10 Years in Prison for Conspiracy to Distribute Kilograms of Cocaine and Failure to Appear in CourtRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a New York City man was sentenced to 122 months (10 years) imprisonment by U.S. District Court Judge Yvette Kane in Harrisburg for conspiracy to distribution multiple kilograms of cocaine and for failure to appear in court.
According to United States Attorney Peter Smith, Jonathan G. Almanzar, age 35, was charged in October 2005 with conspiracy to distribute and possess with intent to distribute cocaine hydrochloride. Almanzar and three others also from New York City were arrested in October 2005 at the Perkins restaurant on Linglestown Road in Harrisburg. They were there ostensibly to conduct a drug deal for 25 to 50 kilograms of cocaine. Almanzar and his co-defendants were in possession of $37,940 in United States currency. The transaction was under surveillance by federal and state agents and all were arrested at the scene.
Almanzar signed a plea agreement in July 2006. He was on bail and subsequently failed to appear in United States District Court for a scheduled guilty plea proceeding so an arrest warrant issued. Almanzar remained a fugitive for approximately 9 years until he was located and arrested in New York City in March 2015. In July 2015, a criminal Information was filed charging Almanzar with failure to appear. Almanzar plead guilty to all charges in July 2015.
The case was investigated by the Harrisburg Resident Office of the Drug Enforcement Administration, the Pennsylvania State Police, the Dauphin County Drug Task Force and the United States Marshals Service. Assistant United States Attorney William A. Behe prosecuted the case.
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New Albany, Indiana Man Sentenced to 30 Months in Prison for Interstate Transportation for ProstitutionRead the Press Release
Drove women from Indiana to Louisville to perform commercial sex acts
LOUISVILLE, Ky. –United States Attorney John E. Kuhn, Jr. today announced the 30-month prison sentence of a New Albany, Indiana, man who previously pleaded guilty to charges of interstate transportation for prostitution, by Chief Judge Joseph H. McKinley, Jr. in U.S. District Court.
David McNeary, age 34, pleaded guilty to three charges in a grand jury indictment on August 3, 2015. He was charged by grand jury indictment on May 20, 2015, and was arrested Friday, May 22, 2015, in Jeffersonville, Indiana. McNeary was placed on home detention with work release.
According to the plea agreement, between January 2014 and March 2014, McNeary, knowingly transported four different adult females during at least three different trips from Indiana to Kentucky, with the intent that they engage in prostitution.
This case was prosecuted by Assistant United States Attorney Amanda Gregory and was investigated by the Federal Bureau of Investigation (FBI).
Minnesota Man Sentenced for Computer Extortion Involving Confidential Pictures, VideoRead the Press Release
COLUMBUS, Ohio – Demonte Johntrell Latimore, 28, of St. Paul, Minn, was sentenced in U.S. District Court to 48 months in prison, to be served concurrently with a separate federal gun sentence, for threatening to impair the confidentiality of information obtained from a protected computer without authorization.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division and Newark Police Chief Barry Connell, announced the sentence handed down today by U.S. District Judge Michael H. Watson.
According to court documents, a female student in a college library in Newark, Ohio had her laptop computer stolen. A few weeks later, the victim received an email from an unknown subject using the email address “iwant300dollars” that indicated that the sender had something the victim wanted back “very badly” and commented that the victim “had a lovely body.”
Latimore found explicit photos and a video of the victim that were on the laptop in a password protected folder. One of those photos was sent to the victim with a demand for $3,000 to prevent all of the photos and video being sent to her friends, co-workers and family as well as “every porn site available.”
The defendant created a Facebook account as “Payme ForSilence” and eventually posted a number of nude pictures and sex video of the victim and her boyfriend on the Facebook account. The FBI was able to get the Facebook account closed. Latimore and possibly others also continued to harass the victim via email, demanding money to prevent his wider distribution of the material.
Latimore was charged by information and pleaded guilty on July 8, 2015 to the one count of the computer extortion involving the confidential pictures and video.
U.S. Attorney Stewart commended the cooperative investigation by the FBI and Newark Division of Police, as well as Assistant United States Attorney Deborah Solove, who is representing the United States in this case.
Midland Woman Admits Role in Wire Fraud Scheme and Obstructing JusticeRead the Press Release
In Midland, 54-year-old former federal fugitive Judy Kay Fryar pleaded guilty to federal charges in connection with a wire fraud scheme that caused an estimated $140,000 loss to her employer and for obstructing justice announced United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division, United States Marshal Robert Almonte and Midland Police Chief Price Robinson.
Appearing before United States Magistrate Judge David Counts this afternoon, Fryar pleaded guilty to one count of wire fraud and one count of obstruction of justice. By pleading guilty, Fryar admitted that from October 2009 to June 2011, she devised a scheme to embezzle money including monthly lease payments owed to her employer, SKP Holdings in California. According to court records, Fryar, as the former onsite property manager for the West Park Apartments in Midland, repeatedly accepted cash payments from tenants and used those monies for her own personal benefit. According to court records, Fryar altered various tenant lease payments in the company’s online property management records in an attempt to conceal her scheme. Fryar’s scheme was revealed in 2011 when an owner who was conducting an on-site visit encountered a West Park Apartment tenant attempting to make a rental payment with cash.
According to the factual basis filed in this case, Fryar obstructed justice by falsely fabricating a medical condition to obtain favor, sympathy and ten consecutive continuances between January 2013 and July 2015 for jury selection and trial on the above mentioned wire fraud charge. The Court reset jury selection and trial dates based on materially false representations that Fryar had been diagnosed with Stage 4 Lung Cancer and was undergoing extensive radiation, chemotherapy and other experimental treatments. According to Fryar, her alleged cancer progressed to the point that she no longer had sufficient mental and physical abilities to effectively participate in a trial. During this time, Fryar forged two letters and medical records from M.D. Anderson Cancer Center to support her materially false representations. Prior to the filing of her first of ten continuance motions, on August 30, 2012, M.D. Anderson Cancer Center notified Fryar that she was negative for carcinoma, melanoma and sarcoma, thus, Fryar did not require cancer treatment and/or any other related services at M.D. Anderson Cancer Center.
On July 21, 2015, Fryar was arrested by the U.S. Marshals Lone Star Fugitive Task Force at her family’s lake house in Coke County following the issuance of a bench warrant after she failed to appear in court for a pre-trial hearing earlier in the month.
Fryar faces up to 20 years imprisonment on the wire fraud charge and up to ten years imprisonment for the obstruction charge. She remains in federal custody pending sentencing before United States District Judge Robert A. Junell. Sentencing is scheduled for February 25, 2016..
This investigation was conducted by the Federal Bureau of Investigation, Midland Police Department Fraud Unit and the United States Marshals Service. Assistant United States Attorneys Yvonne Gonzalez and Stanley Serwatka are prosecuting this case on behalf of the Government.
Michigan Man Sentenced to 12.5 Years in Prison for Drug TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Damein Hampton, 38, of Ypsilanti, Michigan, appeared Friday for sentencing in United States District Court in Burlington. United States District Court Judge William K. Sessions III sentenced him to 151 months of incarceration following his guilty plea to Conspiracy to Distribute Cocaine and 280 Grams or More of Cocaine Base.
According to court documents and a series of witnesses at the two-day sentencing hearing, the defendant, aka “Tree,” was accused of being the organizer and manager of a drug conspiracy in Vermont beginning in 2009 and continuing up to his arrest in January 2014. During that time, the defendant trafficked cocaine and cocaine base into Vermont from New York, Michigan, and Arizona, and distributed cocaine, cocaine base, and heroin throughout the Burlington and Newport areas of Vermont. The government accused the defendant of trafficking approximately 2500 grams of crack cocaine, 2050 grams of powder cocaine, and 125 grams of heroin. The defendant estimated that he trafficked approximately 1325 grams of crack cocaine, 1325 grams of powder cocaine, and no heroin.
At sentencing, the government called four witnesses to illustrate the defendant’s drug trafficking activities and his history and characteristics. The witnesses testified that they housed him, stashed his drugs for him, distributed his drugs on his behalf, deposited drug proceeds into his bank account, and trafficked his drugs into Vermont from New York and Michigan. One of the government’s witnesses testified about specific threats of physical violence that he made to her. Government witnesses also testified that the defendant was responsible for a June 7, 2012 shooting on Farrell Street in South Burlington, was the intended victim of a shooting in downtown Burlington on May 5, 2013, and carried a firearm in the center console of his car as a result of a falling out with an associate.
Also at sentencing, the defendant presented competing evidence of the relevant facts. Through the testimony of two defense witnesses and the defendant himself, the defendant admitted to years of serial drug trafficking despite six prior felony convictions for carrying a concealed weapon, robbery, narcotics sale, narcotics possession, and assault, as well as seven misdemeanor convictions. He denied that he was responsible for the Farrell Street shooting and that he used violence or threats of violence to further his trafficking activity.Additionally, the government urged the Court to consider that the defendant absconded from Michigan and remained a fugitive for a period of months while he continued to sell drugs in Schenectedy, New York. This followed on the heels of learning that the U.S. Drug Enforcement Administration was investigating him, had arrested his co-conspirators in transit from Michigan to Vermont with 163.6 grams of his crack cocaine and 52.5 grams of his powder cocaine, and was interested in the defendant’s cooperation.
In fashioning its 12.5 year sentence, the Court stated that it took into account the defendant’s criminal history, the facts of the case as he found them, and the defendant’s background and personal history.
Damein Hampton was represented by Attorney Mark Kaplan. The prosecutors were Assistant U.S. Attorneys Abigail Averbach and William Darrow. The United States Attorney expresses his gratitude to the U.S. Drug Enforcement Administration, the Burlington Police Department, the Milton Police Department, and the South Burlington Police Department for their excellent investigative work and assistance with this case.
Methamphetamine Distribution Conspirators SentencedRead the Press Release
FORT WORTH, Texas — Three defendants who admitted to felony offenses stemming from their role in a methamphetamine distribution conspiracy that operated in the Dallas – Fort Worth (DFW) area since 2013, were sentenced yesterday to substantial prison sentences by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney John Parker of the Northern District of Texas.
Samuel Hebert, 32, was sentenced to 240 months in federal prison. Joseph Sutton, also 32, was sentenced to 140 months in federal prison, and Steven Villegas, also 32, was sentenced to 120 months in federal prison. Each pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. All three are from the DFW area.
According to documents filed in the case, since 2013, Hebert supplied ounce and multi-ounce quantities of methamphetamine to others on consignment. Sutton and Villegas received ounce and multi-ounce quantities of methamphetamine on consignment and in turn distributed it to various customers in the Fort Worth and North Richland Hills, Texas, areas, returning to their suppliers for additional methamphetamine.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Texas Department of Public Safety investigated. Assistant U.S. Attorney Shawn Smith was in charge of the prosecution.
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Member of Young Melph Mafia (YMM) Neighborhood Gang Sentenced to 40 Years for Drug and Firearms ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JACOBI BOYD, age 24, of New Orleans, was sentenced today for his participation in a drug conspiracy and a conspiracy to possess and use firearms in connection with the drug trafficking activities of a local gang known as the “Young Melph Mafia” or “YMM.”
U.S. District Judge Kurt D. Engelhardt sentenced BOYD to 480 months (40 years) of imprisonment, to be followed by five years of supervised release. BOYD was sentenced to 480 months as to count 1 (the drug conspiracy) and 240 months to count 2 (a conspiracy to possesses firearms in furtherance of drug trafficking crimes), with the amounts to run concurrently.
BOYD was originally charged in a five-count Superseding Indictment with nine other YMM members, who frequented the area of the former Melpomene Housing Project. According to the factual basis filed in open court, BOYD and other YMM members participated in a wide ranging conspiracy to distribute street level quantities of crack cocaine in Central City and participated in several acts of violence against rival gangs, such as the 110ers. The members of the YMM were associates of the members of the Allen family, who were also indicted and convicted in federal court last year. Three members of the 110ers gang were convicted on January 29, 2015, in Orleans Parish Criminal Court for the Briana Allen shooting. He is the sixth member of the YMM to be sentenced thus far. The remaining defendants have been charged in a superseding indictment with additionally conspiring to commit RICO violations, including several murders and other acts of violence.
“This is just another example of how serious the federal government is in helping turn the tide of violence that is occurring in New Orleans,” stated U.S. Attorney Polite. “These local gangs have caused serious harm to the neighborhoods of this City, and the federal government will continue to work with local authorities to bring these individuals to justice.” “Removing BOYD and other Young Melph Mafia gang members from the community has been a top priority for ATF,” said ATF Special Agent in Charge Constance Hester. “The success of this investigation is a direct result of the collaborative efforts between the New Orleans Police Department, the United States Attorney’s Office, and ATF.”
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) in leading this investigation along with members of the NOPD led Multi-Agency Gang Unit (MAG UNIT). Assistant United States Attorneys Edward J. Rivera and Maurice E. Landrieu, Jr. were in charge of the prosecution.
McComb Doctor Charged in Federal IndictmentRead the Press Release
McComb, Miss - Dr. Lawrence Edsel Stewart, 59, of McComb, has been charged in a 27-count federal indictment with violations of Title 21 USC 841(a)(1) – knowingly and intentionally distributing and dispensing schedule II, III, and IV controlled substances outside the scope of professional medical practice, announced U.S. Attorney Gregory K. Davis and Assistant Special Agent in Charge Daniel Comeaux with the Drug Enforcement Administration - New Orleans Division. The indictment is the result of a complex pharmaceutical drug investigation that began approximately one year ago.
DEA Assistant Special Agent in Charge Daniel Comeaux stated: "Today’s arrest should be a shot across the bow of any would-be drug dealer who wears a lab coat and masquerades as a doctor that DEA, the U.S. Attorney’s Office, and the Mississippi Bureau of Narcotics, along with our local, state and federal counterparts will not tolerate this activity. The citizens of Mississippi deserve better."
Dr. Stewart was arrested in McComb and made his initial appearance in Jackson today before U.S. Magistrate Judge F. Keith Ball. The case has been set for trial on February 1, 2016, before U.S. Senior District Judge David C. Bramlette III.
The maximum penalty for distributing and dispensing a Schedule III substance outside the scope of professional practice (Counts 1-4, 7-11, 13 and 16) is 10 years in prison and a $500,000 fine. The maximum penalty for distributing and dispensing a Schedule IV substance outside the scope of professional practice (Counts 5, 6, 12, 15 & 17) is 5 years in prison and a $250,000.00. The maximum penalty for distributing and dispensing a Schedule II controlled substance outside the scope of professional practice is 20 years in prison and a $1 million fine.
This case was investigated by the Drug Enforcement Administration, Mississippi Bureau of Narcotics, Mississippi Medical Board, and Mississippi Board of Nursing. Assistant U.S. Attorney Erin Chalk is prosecuting the case.
The public is reminded that an indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws. A defendant is presumed innocent until proven guilty.
Massachusetts Man Charged with Attempted Coercion and Enticement of Minors in LathamRead the Press Release
ALBANY, NEW YORK – Albert Reardon, age 74, of North Adams, Massachusetts, was indicted today on charges of attempted coercion and enticement of a minor for prohibited sexual activity, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
Reardon faces at least 10 years and up to life in prison. He also faces a term of supervised release of at least 5 years and up to life, a fine of up to $250,000, and mandatory registration as a sex offender. Reardon was arrested in October on a criminal complaint. At that time he appeared before United States Magistrate Judge Christian F. Hummel, and was detained following a detention hearing on October 27.
According to the Complaint filed on October 22, Reardon posted online advertisements soliciting sexual encounters with a “teen” and “young” person. Following email exchanges with a law enforcement officer acting undercover, Reardon travelled to Latham, New York, to meet at a prearranged time and place with persons he believed to be a 14-year-old boy and his 11-year-old brother.
The charges in the indictment and complaint are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by the Colonie Police Department and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Marion Man Pleads Guilty to Healthcare FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today, that Terry L. Stinnett, 68, of Marion, Illinois, pled guilty in federal court on December 8, 2015, to charges that he engaged in a scheme to steal from a health care program. Sentencing has been set for March 15, 2016. Stinnett will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
During his plea hearing, Stinnett admitted that he had submitted false and fraudulent claims in relation to his alleged performance of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. Stinnett admitted to falsely billing the program between July 1, 2013 and January 31, 2014, when he purportedly rendered personal assistant services to a customer when, in fact, he had not been caring for the customer.
This prosecution is part of the fourth wave of the "Operation Home Alone" initiative announced on June 5, 2014, by United States Attorney Stephen R. Wigginton. The investigation was conducted by the U.S. Department of Health and Human Services - Office of Inspector General, the Illinois State Police - Medicaid Fraud Control Bureau, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney William E. Coonan.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Manhattan U.S. Attorney Announces Conviction of Bank Executive for Attempted Sex Trafficking of A Minor and Possession, Distribution, and Transportation of Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, today announced that CHARLES FAMILETTI, JR., a former Vice-President at HSBC Bank, was convicted Monday evening in Manhattan federal court of attempted sex trafficking of a minor, distribution of child pornography, transportation of child pornography, and possession of child pornography, following a five-day trial before Chief United States District Judge Loretta A. Preska.
U.S. Attorney Preet Bharara said: “In addition to exploiting children through his possession, receipt, and distribution of child pornography, as the jury found, Charles Familetti tried to pay an undercover agent for sex with an 11-year-old child. Thanks to our partners at the FBI, Familetti was arrested before he could personally harm any children. The jury’s verdict should send a message to child predators that their crimes will be investigated and prosecuted to the fullest extent of the law.”
As established by the evidence at trial:
FAMILETTI was arrested in July 2013 following a Federal Bureau of Investigation (“FBI”) sting operation in which he agreed to pay an undercover FBI agent $500 in order to have sexual relations with an 11-year old boy. During that operation, an FBI agent also downloaded several files containing child pornography from FAMILETTI via a publicly available peer-to-peer file sharing network. On July 15, 2013, FAMILETTI met with the undercover agent to confirm the agreement and make the final arrangements to obtain the supposed 11-year old boy. FAMILETTI then took the agent to an ATM, withdrew the money to cover the full $500 fee for the boy, and gave the agent $100 as a down payment. After the meeting, FAMILETTI returned to his apartment in midtown Manhattan to await the boy’s arrival. At the agreed-upon time for the boy to arrive, the FBI instead executed a search warrant at FAMILETTI’s apartment. While executing the search warrant, the FBI located an SD card containing over 2,000 image files and over 500 video files of child pornography hidden inside a loaf of bread in FAMILETTI’s refrigerator. It was further established at trial that FAMILETTI carried the SD card with him when he traveled.
FAMILETTI, 48, of San Francisco, California, is set to be sentenced on March 15, 2016, before Judge Preska. FAMILETTI faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of life in prison on the attempted sex trafficking of a minor charge. FAMILETTI faces a mandatory minimum term of five years in prison and a maximum sentence of 20 years in prison on each of the distribution and transportation of child pornography charges. FAMILETTI faces a maximum sentence of 20 years in prison on the possession of child pornography charge.
The statutory maximum and minimum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the Judge.
Mr. Bharara praised the outstanding efforts of the FBI.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Patrick Egan, Jessica Fender, and Sarah Krissoff are in charge of the prosecution.
The FBI encourages the public to report suspected child predators and any suspicious activity through their switchboard at (212) 384 -1000. It is staffed around the clock by investigators. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.
Lyle “Ty” Hoffman Sentenced to 57 Months in Federal Prison After Pleading Guilty to Armed Bank RobberyRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of LYLE HOFFMAN a/k/a “Ty,” 45, to 57 months in prison. HOFFMAN pleaded guilty on July 8, 2015, to armed bank robbery at a Blaine TCF Bank branch. The defendant was sentenced today by United States District Court Judge Richard H. Kyle in U.S. District Court in St. Paul, Minn.
According to the defendant’s guilty plea and documents filed in court, on August 11, 2014 HOFFMAN, murdered his former partner, Kelly Phillips, at a gas station in Arden Hills, Minn. While on the run from authorities, on August 31, 2014, HOFFMAN, shielded by a blue baseball cap and sunglasses, robbed a TCF Bank branch located on County Road 10 in Blaine, Minn. The defendant ordered a bank teller to give him money, before removing a handgun from his backpack and pointing it at the teller while he repeated his demand. The teller gave HOFFMAN approximately $12,020 during the robbery, included a packet of money containing a dye pack.
According to the defendant’s guilty plea and documents filed in court, reports were made to law enforcement that HOFFMAN was in Prior Lake, Minn., and had been spotted at various casinos. Following up on those tips, law enforcement collected dye-stained money from casinos in Prior Lake and from a transit machine at the Mall of America. The defendant was arrested on September 11, 2014, after walking through the drive-thru lawn of an Arby’s restaurant in Shakopee, Minn. HOFFMAN had more than $3,000 in dye-stained money on him when he was arrested.
The case was the result of an investigation conducted by the Federal Bureau of Investigation and the Blaine Police Department.
This case was prosecuted by Assistant U.S. Attorney Kevin Ueland.
Defendant Information:
LYLE “TY” HOFFMAN, 45
St. Cloud, Minn.
Convicted:
- Armed bank robbery, one count
Sentenced:
-
57 months in prison
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Louisville Resident and Former Volunteer Football Coach Sentenced to 87 Months in Prison for Child Pornography ChargesRead the Press Release
LOUISVILLE, Ky. – A Louisville resident and former volunteer football coach at Jefferson County Catholic schools was sentenced today in U.S. District Court by Senior Judge Thomas B. Russell to 87 months in prison, followed by 10 years of supervised release, for child pornography charges, announced U.S. Attorney John E. Kuhn, Jr.
Raymond A. Nowacki, age 51, pleaded guilty on July 27, 2015, to a two-count federal indictment charging him with possessing and transporting child pornography by way of a computer. Nowacki remains in the custody of the U.S. Marshals Service.
According to the plea agreement, On November 24, 2013 a Task Force Officer with the FBI was investigating Kentucky computers that were actively sharing previously-identified child pornography on the Internet. The IP address was tracked to Nowacki’s Louisville residence. On October 31, 2014, the FBI executed a search warrant at Nowacki’s residence and seized a laptop computer. A forensic review of the laptop revealed several images and videos of child pornography. At the time, Nowacki admitted to downloading child pornography and watching videos of child pornography on his laptop computer. Further, Nowacki admitted that he conducted searches for “teenaged boys” and “teenaged girls” and had been interested in pornography since 2000.
This case was investigated by Assistant United States Attorney A. Spencer McKiness and was investigated by the Federal Bureau of Investigation (FBI) and Louisville Metro Police.
Local Man Sentenced for Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 22-year-old resident of Corpus Christi has been ordered to federal prison for more than 15 years following his conviction for distribution of child pornography, announced U.S. Attorney Kenneth Magidson. Rogelio Jesus Martinez, 22, pleaded guilty March 3, 2014.
Today, Senior U.S. District Judge Janis Graham Jack sentenced Martinez to 188 months in federal prison. He will also spend the rest of his life on supervised release and will be ordered to register as a sex offender.
In February 2013, authorities with the Corpus Christi Police Department, while using peer-to-peer software, were able to successfully download various files containing child pornography from an IP address that was associated with Martinez. As a result of this information, Homeland Security Investigations was contacted to assist in the investigation.
In March 2013, law enforcement executed a search warrant at Martinez’s residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed 21 videos and on image of child pornography. The material depicted prepubescent children including infants. Martinez admitted to downloading and sharing child pornography through a file sharing program on his computer.
Martinez was ordered into custody and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges against Martinez were the result of an investigation conducted by Homeland Security Investigations with the assistance of the Corpus Christi Police Department—Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Lawrence Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
BOSTON – Angel Ortiz, 31, of Lawrence, pleaded guilty to one count of dealing in firearms without a license and five counts of being a felon in possession of firearms and ammunition. U.S. District Court Judge F. Dennis Saylor, IV, scheduled sentencing for Feb. 29, 2016.
Ortiz, who had previously been convicted of a felony offense, was involved in the sale of six firearms to a cooperating witness on five occasions between June 10, 2014 and July 23, 2014. On some occasions, Ortiz also provided ammunition for the weapons. It is a federal crime for a convicted felon to possess a firearm or ammunition and also a federal crime to sell firearms without a license.
The charge of dealing firearms without a license provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Robert E. Richardson of Ortiz’s Major Crimes Unit.
Lame Deer Man Convicted of RapeRead the Press Release
BILLINGS – Following a two day federal trial, a Montana jury found Olaf James Haugen, 29, of Lame Deer, guilty of aggravated sexual abuse on Tuesday. Judge Susan Watters presided over the trial. A date for sentencing has not been set.
Haugen was indicted by a grand jury in January on the single count of aggravated sexual abuse. At trial, the government introduced evidence that Haugen physically and sexually assaulted the victim in August of 2013. A dispute started when the victim confronted Haugen about his drug abuse. Haugen became angry. He threatened to kill the victim with a pocket knife, raped her, hit her several times and bit her on the back. The assault started on the evening of August 31 and continued into the next morning.
The assault was heard by an individual in the adjoining room, but was not reported by that individual. Later, another individual came to the house and overheard the assault continuing. She reported the assault to the BIA and an officer responded to the scene. When the officer arrived, the victim opened a window and asked the officer to help her because Haugen was beating her up. Haugen initially refused to allow the officer into the room and threatened to stab himself, but eventually calmed down and was arrested.
The victim was examined by Indian Health Services after the assault. Her injuries included abrasions and contusions consistent with being struck, a large bite mark on her back and an abrasion on her throat consistent with having a knife held against it. The victim did not initially disclose the rape but was convinced by a family member to do so and reported the rape two days later. Haugen claimed the intercourse was consensual but gave conflicting accounts of the incident at trial and to investigating officers following his arrest.
The case was prosecuted by Assistant U.S. Attorney John Sullivan. The case was investigated by the FBI and the Bureau of Indian Affairs.
Ketchikan Residents Guilty of Scheme to Illegally Fish and Sell HalibutRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that on December 8, 2015, Michael Anthony Welker, 52, Shane Christopher Widmyer, 34, David Alan Vest, 39, all residents of Ketchikan, Alaska, pled guilty in federal court in Juneau to violating the Lacey Act by illegally transporting halibut that was caught for subsistence and sport purposes.
Each defendant pled guilty to a single count of a Lacey Act violation before United States Magistrate Judge Leslie Longenbaugh.
According to the information presented to the court by Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, Donald Ray Thornlow, 66, the former owner and operator of the former Narrows Inn and Restaurant in Ketchikan, Alaska, took part in a continuing scheme of knowingly purchasing subsistence and sport caught halibut for resale in his restaurant, a violation of federal regulations. Defendants Welker, Widmyer, and Vest illegally harvested halibut for a commercial purpose using sport fishing licenses and subsistence halibut permits. The defendants subsequently transported the illegally caught halibut and sold it to Thornlow who then sold the fish in his restaurant. The defendants were not allowed to catch halibut for a commercial purpose because none of the defendants possessed a valid Individual Fishing Quota (IFQ) permit. The defendants each admitted to transporting a portion of the 997 pounds of illegally-caught halibut sold by Thornlow in his restaurant from January 2012 to December 2013. Under the terms of the plea agreement, Vest will pay a $5,000 fine, Welker and Widmyer will pay a $3,500 fine and all defendants will be sentenced to a term of probation for three years. Thornlow was previously sentenced to a one year term of probation starting on October 19, 2015, and ordered to pay a $5,000 fine.
Prior to imposing the sentences, Magistrate Judge Longenbaugh indicated the seriousness of the offense and the need to deter the defendants and others, as well as the need to protect Alaska fishery resources.
The National Oceanic and Atmospheric Administration, Office of Law Enforcement, Alaska Enforcement Division conducted the investigation leading to the charges and conviction in this case.
KC Man Convicted of Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been convicted, following a bench trial, of robbing Commerce Bank.
David E. Clark, 36, of Kansas City, was found guilty of bank robbery following a trial on Monday, Dec. 8, 2015, before U.S. District Judge Gary A. Fenner.
Clark was indicted by a federal grand jury for stealing $3,037 from Commerce Bank, 118 W. 47th Street, Kansas City, on July 28, 2014.
Clark was wearing an orange construction-type vest when he entered the bank, walked directly towards a teller station and grabbed a note from his pocket. The teller refused to look at the note and asked Clark if he needed help. Clark told the teller to pull out his drawers. When the teller told him the teller drawers were locked, Clark instructed him to get the keys. The teller returned to his teller station, and Clark told him to “give me 100’s, 50’s and 20’s.” The teller grabbed the requested denominations from his teller drawer and gave the money to Clark, who walked swiftly out of the bank’s front door and then ran up Wyandotte Street.
Another bank employee saw Clark go around the corner and then exit a parking garage in a white truck with a concrete company’s sign on the side. Less than half an hour later, police officers located Clark and arrested him.
According to court documents, the owner of the truck told law enforcement investigators afterward that he had driven the vehicle to a meeting earlier that day and offered a ride to Clark, who had done work as an independent contractor for his company. After his meeting he was supposed to take Clark to another location, but when he returned to the parking lot after his meeting, both Clark and his truck were gone.
Under federal statutes, Clark is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Justice Department Settlement Successfully Releases More than $115 Million in Alleged Corruption Proceeds to People in KazakhstanRead the Press Release
Today, the Department of Justice filed a motion to dismiss a forfeiture action against approximately $115 million alleged to be proceeds of foreign official corruption and involved in money laundering in accordance with a 2007 settlement that directed the funds to be used for the benefit of poor youth and families in Kazakhstan, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
The filing marked the formal completion of the settlement terms through which the governments of the United States, Switzerland and Kazakhstan agreed to release the alleged corruption proceeds in installments to a Kazakh foundation established under the guidance and supervision of the World Bank Group and administered by international development organizations IREX and Save the Children, which managed the foundation’s programs.
In 2007, the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS) and the U.S. Attorney’s Office of the Southern District of New York filed a forfeiture action against approximately $84 million plus interest that had been restrained in Switzerland in 1999 in connection with the prosecution of James H. Giffen and his company, Mercator, by the U.S. Attorney’s Office and the Criminal Division’s Fraud Section. The funds were allegedly the proceeds of illegal bribe payments to senior Kazakh officials in exchange for oil transactions and property involved in money laundering. In an apparent attempt to evade criminal investigation, the funds had been transferred into an account in the name of the government of Kazakhstan where they were later restrained and grew to $115,228,671. Contemporaneous with the forfeiture action, the United States and Kazakhstan filed the settlement agreement, which incorporates a series of international agreements authorizing the release of the funds to the BOTA Foundation, a new Kazakh foundation required to be independent of the government of Kazakhstan, managed by a respected international non-governmental organization and established with the assistance of the World Bank. In addition, the government of Kazakhstan entered into technical assistance agreements with the World Bank regarding its participation in the Extractive Industries Transparency Initiative and a Public Finance Management Review.
“Transparent, responsible repatriation of corruption proceeds can make a real difference for communities harmed by the abuse of public office,” said Assistant Attorney General Caldwell. “In just five years of operations, the BOTA Foundation helped more than 208,000 people in need in Kazakhstan, turning more than $115 million in alleged bribe money into assistance to parents, families with disabled children and youth seeking higher education. Through our Kleptocracy Asset Recovery Initiative, the Department of Justice is committed to fighting back against impunity and seeking creative ways to reduce the harms caused by corruption.”
Under the 2007 agreements, the parties released more than $115 million to the BOTA Foundation for programs running from 2009 through 2014. The BOTA Foundation utilized the funds in three primary programs, each targeting needs of poor youth in Kazakhstan: a conditional cash transfer program providing financial resources and incentives for health and other needs, a social services program providing grants to local communities and a tuition assistance grant program.
Partnership with the governments of Switzerland and Kazakhstan and close collaboration with the World Bank, program managers IREX and Save the Children, the BOTA Foundation’s Board of Directors, the State Department and USAID were essential to the success of the settlement. Deputy Assistant Attorney General Bruce Swartz of the Criminal Division, Principal Assistant Deputy Chief Daniel Claman of AFMLS and Assistant U.S. Attorney Barbara Ward of the District of New Jersey negotiated and implemented the agreement on behalf of the United States. The Criminal Division’s Office of International Assistance provided assistance in this case. The FBI investigated the matter.
Under the Kleptocracy Asset Recovery Initiative, dedicated prosecutors in AFMLS work in partnership with U.S. Attorneys’ Offices and federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where possible and appropriate, put forfeited corruption proceeds to use for the benefit of the people of the country harmed by the abuse of public office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
Houston Man Sentenced for Conspiracy to Distribute CocaineRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BAKEER RASHED, JR., age 33, of Houston was sentenced today after having pled guilty to one count of conspiring to distribute 500 grams or more of cocaine hydrochloride.
U.S. District Judge Ivan L.R. Lemelle sentenced RASHED to served 66 months incarceration, to be followed by 4 years of supervised release, and was ordered to pay a $100 special assessment.
According to the factual basis filed in open court, RASHED conspired to distribute more than 500 grams of cocaine hydrochloride from July 25, 2006, through February 19, 2007, with co-conspirators living in Louisiana. RASHED, who lived in Houston, was the point of contact for facilitating numerous drug deals.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the assistance of the St. Tammany Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Edward J. Rivera was in charge of the prosecution.
Hot Springs Woman Found Not GuiltyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Hot Springs, South Dakota, woman, Rebecca Sotherland, was found not guilty on December 8, 2015, of Deprivation of Rights Under Color of Law, Assault With a Dangerous Weapon, and Obstruction of a Federal Investigation after a federal jury trial in Rapid City. Sotherland was indicted on August 26, 2014.
The charges relate to an incident on August 15, 2014, at Manderson, when Sotherland, who was at the time an Oglala Sioux Tribe police officer, was arresting a man, in the course of which she repeatedly used her Taser.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorneys Sarah Collins, Kevin Koliner, and Jared Fishman prosecuted the case.
Harrison County, West Virginia students engage in interactive substance abuse educationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Students in Harrison County, West Virginia, had the opportunity to learn about drug abuse and prevention in a dynamic environment outside of the classroom this week, United States Attorney William J. Ihlenfeld, II, announced.
Seventh and tenth grade students at Liberty High School, Robert C. Byrd High School, Lincoln High School, South Harrison High School, Mountaineer Middle School, Lincoln Middle School, and South Harrison Middle School participated in a new prevention initiative known as “Drug Prevention On The Move!” The centerpiece of the “On The Move!” program is a unique, interactive mobile classroom trailer where students learn about a variety of drugs and their effects on the body and brain. Students answer questions electronically, providing useful insight into their perceptions of various drugs. The students also experience a go-kart and other dynamic technology designed to simulate the effects of impaired and distracted driving.
“To loosen the unforgiving grip of addiction in our region, we must find creative solutions that complement and enhance traditional law enforcement efforts,” said Ihlenfeld. “Empowering young people to make informed decisions based on honest and straightforward education about illegal drugs helps reduce the demand for these illicit substances. I am proud to join Harrison County Schools to promote programs that position students to have healthy and productive futures.”
The “On The Move!” program is an initiative of Operation UNITE, a non-profit organization based in London, Kentucky. Operation UNITE works to rid communities of illegal drug use through undercover investigations, treatment, support, and education. The educational trailer is also provided in partnership with the United States Health Resources and Services Administration and the Appalachia High Intensity Drug Trafficking Area, an initiative of the White House Office of National Drug Control Policy.
Education and prevention professionals interested in obtaining additional information or scheduling the “On The Move!” initiative in their school district are encouraged to contact Tara Tighe at the United States Attorney’s Office at (304) 234-0100.
Gardner Woman Sentenced for Fraudulently Receiving Disability Benefits and Food StampsRead the Press Release
BOSTON – A Gardner, Mass. woman was sentenced today in U.S. District Court in Worcester for fraudulently receiving over $100,000 in public benefits.
Heidi Narcisse, 46, was sentenced by U.S. District Judge Timothy S. Hillman to three years of probation and ordered to pay $117,524 in restitution. Narcisse pleaded guilty in September 2015.
Narcisse began collecting Social Security Supplemental Security Income (SSI) disability benefits in 1999 and Supplemental Nutrition Assistance Program (SNAP) benefits in 2011. In order to be eligible for these benefits, a person must have very limited income and financial resources; furthermore, income provided by a spouse can make a person ineligible for benefits. In order to receive these benefits, Narcisse repeatedly and falsely stated that she was separated from her husband, lived alone with her children and had no outside support.
In reality, in July 2006, Narcisse and her husband bought a house together in Gardner using a subsidized government loan, listed that house as their residential address on their respective driver’s licenses and filed joint tax returns listing the same address. In addition, Narcisse’s husband, who had income from his job, regularly gave Narcisse money for household expenses. If Narcisse had truthfully reported her living situation and her husband’s financial support, she would not have been eligible to receive the SSI and SNAP benefits. From 2006 to 2014, Narcisse illegally received $100,512 in SSI benefits, and from 2011 to 2015 she received $17,012 in SNAP benefits. The investigation also revealed that Narcisse spent a portion of this money at a casino in Connecticut.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Massachusetts State Auditor Suzanne M. Bump, made the announcement today. The case was prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Gang Member Gets Nearly 10 Years for Possessing FirearmRead the Press Release
CORPUS CHRISTI, Texas – A four-time convicted felon has been ordered to federal prison following his conviction of unlawfully possessing a firearm, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Antonio Ortiz III, 32, of Corpus Christi, in January 2015.
Today, Senior U.S. District Judge Janis Graham Jack sentenced Ortiz to 115 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, Judge Jack noted that his repeated violent conduct was an indication that past punishments had not made an impression.
Ortiz was a known member of the Texas Syndicate Prison Gang and had an outstanding state warrant for a drug distribution charge. In October 2014, deputies from the U.S. Marshals Service assigned to the Gulf Coast Violent Offenders and Fugitive Task Force learned he was staying with a girlfriend at an apartment complex in Corpus Christi and subsequently took him into custody.
At the time of his arrest, authorities discovered a loaded 9mm pistol beneath his bed. Also discovered in the apartment were two separate bundles of ammunition.
During the trial, the jury heard that while in custody following his arrest, Ortiz made phone calls to his friend discussing the location of that gun. In those calls, Ortiz can be heard berated his friend for not having hidden the gun better before his arrest.
Ortiz will remain in custody pending transfer to U.S. Bureau of Prisons facilities to be determined in the near future.
This charge was the result of an investigation conducted by the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Michael Hess is prosecuting the case.
Frederickton, Missouri Man Sentenced on Federal Weapons ChargesRead the Press Release
St. Louis, MO – JASON THOMAS MILLS, Frederickton, MO, was sentenced to 180 months in federal prison on two counts of being a felon in possession of a firearm.
On July 12, 2014, deputies with the Franklin County Sheriff’s Office became aware that Mills was keeping a stolen truck at his residence. The deputies went to the residence and saw the stolen truck. Shortly thereafter, Mills arrived in another vehicle and the deputies approached him. Mills attempted to drive away, while the deputies clung to the doors of the vehicle. When one of the deputies finally pulled the keys from the ignition, Mills exited the vehicle and fled on foot.
Mills ultimately turned, faced the deputies, and stated, “I’m going to shoot you.” The deputies wrestled Mills to the ground, where they saw a red laser emitting from Mills’ pocket. Mills reached into the pocket, attempting to retrieve a handgun. The deputies removed a Smith & Wesson .380 caliber pistol from Mills’ pocket. A search of the vehicle revealed a digital scale, metal spoons with residue, a baggie containing methamphetamine, a syringe, empty baggies and a plastic bag containing pseudoephedrine pills.
On June 22, 2010, deputies with the Franklin County Sheriff’s Department were engaged in a pursuit of a stolen truck. Mills, the driver of the truck, wrecked the truck and fled on foot. Inside the truck, deputies found methamphetamine lab components, which Mills used to manufacture methamphetamine, and a pouch containing .38 caliber ammunition.
Shortly thereafter, Mills was observed operating another stolen vehicle in Union, Missouri. He fled on foot and was found trying to hide in a nearby bush. A Rossi/Taurus .38 caliber pistol was found in the bush next to Mills. The pistol, possessed by Mills, was loaded with .38 caliber ammunition identical to that found in the stolen truck.
Mills pled guilty in September to two felony counts of being a felon in possession of a firearm. He appeared today for sentencing before United States District Judge Henry E. Autrey.
This case was investigated by the Franklin County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Cristian M. Stevens handled the case for the U.S. Attorney's Office.
Former U.S. State Department Employee Pleads Guilty to Extensive Computer Hacking, Cyberstalking and "Sextortion" SchemeRead the Press Release
A former U.S. State Department employee pleaded guilty today to perpetrating a widespread, international e-mail phishing, computer hacking and cyberstalking scheme against hundreds of victims in the United States and abroad.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John A. Horn of the Northern District of Georgia, Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security Service and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office made the announcement.
Michael C. Ford, 36, of Atlanta, was indicted by a grand jury in the U.S. District Court for the Northern District of Georgia on Aug. 18, 2015, with nine counts of cyberstalking, seven counts of computer hacking to extort and one count of wire fraud. The names of the victims are being withheld from the public to protect their privacy.
Ford pleaded guilty to all charges and admitted that between January 2013 and May 2015, he used various aliases that included “David Anderson” and “John Parsons” and engaged in a widespread, international computer hacking, cyberstalking and “sextortion” campaign designed to force victims to provide Ford with personal information as well as sexually explicit videos of others. Ford targeted young females, some of whom were students at U.S. colleges and universities, with a particular focus on members of sororities and aspiring models.
Ford posed as a member of the fictitious “account deletion team” for a well-known e-mail service provider and sent phishing e-mails to thousands of potential victims, warning them that their e-mail accounts would be deleted if they did not provide their passwords. Ford then hacked into hundreds of e-mail and social media accounts using the passwords collected from his phishing scheme, where he searched for sexually explicit photographs. Once Ford located such photos, he then searched for personal identifying information (PII) about his victims, including their home and work addresses, school and employment information, and names and contact information of family members, among other things.
Ford then used the stolen photos and PII to engage in an ongoing cyberstalking campaign designed to demand additional sexually explicit material and personal information. Ford e-mailed his victims with their stolen photos attached and threatened to release those photos if they did not cede to his demands. Ford repeatedly demanded that victims take sexually explicit videos of “sexy girls” undressing in changing rooms at pools, gyms and clothing stores, and then send the videos to him.
When the victims refused to comply, threatened to go to the police or begged Ford to leave them alone, Ford responded with additional threats. For example, Ford wrote in one e-mail “don’t worry, it’s not like I know where you live,” then sent another e-mail to the same victim with her home address and threatened to post her photographs to an “escort/hooker website” along with her phone number and home address. Ford later described the victim’s home to her, stating “I like your red fire escape ladder, easy to climb.” Ford followed through with his threats on several occasions, sending his victims’ sexually explicit photographs to family members and friends.
Ultimately, Ford sent thousands of fraudulent “phishing” email messages to potential victims, successfully hacked into at least 450 online accounts belonging to at least 200 victims, and forwarded to himself at least 1,300 stolen email messages containing thousands of sexually explicit photographs. Ford sent threatening and “sextortionate” online communications to at least 75 victims.
During the relevant time period, Ford was employed by the U.S. Embassy in London. The majority of Ford’s phishing, hacking and cyberstalking activities were conducted from his computer at the U.S. Embassy.
“With nothing more than a computer and a few keystrokes, modern predators like Michael Ford can victimize hundreds of people around the world,” said Assistant Attorney General Caldwell. “While this criminal prosecution may never return the victims’ sense of security, I hope that today’s guilty plea brings them some peace of mind.”
“Ford engaged in an international sextortion campaign,” said U.S. Attorney Horn. “He tormented numerous women by threatening to humiliate them unless they provided him with sexually explicit photos and videos, and in some cases, he followed through on his threats. This case demonstrates the need to be careful in safeguarding personal information and passwords, especially in response to suspicious e-mails.”
“When a public servant in a position of trust commits any form of misconduct, to include federal crimes such as cyberstalking and computer hacking, we vigorously investigate such claims,” said Director Miller. “The Diplomatic Security Service is firmly committed to investigating and working with the Department of Justice, U.S. Attorney’s Office and our other law enforcement partners to investigate criminal allegations and bring those who commit these crimes to justice.”
“The allegations contained in this federal indictment portray an individual consumed with sexually themed cyber-stalking and exploitation as well as an individual who felt he was beyond detection and grasp of authorities,” said Special Agent in Charge Johnson. “The FBI is proud of the role it played in working with our law enforcement partners to bring Mr. Ford in for prosecution.”
U.S. District Judge Eleanor L. Ross of the Northern District of Georgia scheduled Ford’s sentencing hearing for Feb. 16, 2016.
The Diplomatic Security Service and the FBI are investigating the case. Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia are prosecuting the case. The Criminal Division’s Office of International Affairs and the U.S. Embassy in London provided assistance in this case.
Former U.S. Postal Service Employee Sentenced for Misappropriation of Postal FundsRead the Press Release
BOISE – Virginia Burcham, 43, of Caldwell, Idaho, was sentenced on December 7, 2015, to four years of probation and 200 hours of community service for misappropriating postal funds, U.S. Attorney Wendy J. Olson announced. Chief U.S. Magistrate Judge Ronald E. Bush also ordered Burcham to pay full restitution to the United States Postal Service in the amount of $6,397.07. Burcham pleaded guilty on September 29, 2015.
According to the plea agreement, Burcham was responsible for accepting, depositing, and recording various types of customer payments made at the Greenleaf Post Office. She knowingly and intentionally misappropriated for her own use certain postal funds that came into her possession, care, and control as part of her employment. Specifically, Burcham failed to report certain postage meter sales, bulk mail sales, P.O. Box rental payments, and stamp sales. Burcham then took these unreported postal funds and used them for her personal purposes.
The case was investigated by the United States Postal Service’s Office of Inspector General.
Former Suffolk County Police Chief Indicted on Civil Rights Violation and Obstruction ConspiracyRead the Press Release
A two-count indictment was unsealed today in United States District Court for the Eastern District of New York charging former Suffolk County Police Chief of Department James Burke with assaulting and thereby violating the civil rights of a Smithtown man arrested for breaking into Burke’s department-issued vehicle and stealing his property on December 14, 2012. Burke is also charged with conspiracy to obstruct a federal civil rights investigation into the assault. The indictment was returned by a federal grand jury sitting in Central Islip, New York, on December 8, 2015. The defendant was arrested this morning.
The indictment was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
According to the indictment and court filings, on December 14, 2012, New York State Probation Department and Suffolk County Police Department (SCPD) officers arrested probationer Christopher Loeb at his mother’s home in Smithtown, New York, for a variety of probation violations. During the arrest and search of the Loeb residence, officers discovered a large cache of merchandise stolen from over a dozen vehicles, including an SCPD-issued SUV operated by Burke. Among the items taken from Burke’s SUV was his gun belt, several magazines of ammunition, a box of cigars, a humidor, and a canvas bag that contained toiletries, clothing, and other items.
Burke was permitted to enter the Loeb residence and retrieve the canvas bag and several other articles, even as the search was underway. He then drove to the SCPD’s Fourth Precinct in Smithtown where detectives had begun interrogating Loeb. Burke entered the interrogation room where Loeb was handcuffed and chained to an eyebolt fastened to the floor. Burke then allegedly punched and kicked Loeb in the head and body.
Subsequently, Burke and others allegedly pressured the detectives who witnessed the assault to conceal the event. Those efforts continued even after the FBI and the U.S. Attorney’s Office opened an investigation of the assault in May 2013. In one instance, Burke summoned detectives under his command to SCPD headquarters in Yaphank, New York, to persuade the detectives to agree on a false version of events that would conceal the assault. In October 2013, one of those detectives allegedly testified falsely under oath in a state pretrial hearing in the Loeb prosecution, denying that Loeb had been assaulted.
“We entrust our law enforcement officials with the tremendous responsibility to uphold the Constitution and protect the communities they serve as they enforce the law. Wearing a badge is a privilege and honor – not a license to exact retribution and corrupt the administration of justice,” stated United States Attorney Capers. “We will protect the rights of all no matter where the evidence may lead, and those who break the law will be held to account regardless of their rank and status.”
“Today, former Suffolk County Police Chief James Burke finds himself on the opposite end of the very laws he was sworn to uphold. When caught at a crossroads between right and wrong, Burke took a shortcut on the path to justice. When an officer’s actions threaten to obstruct the integrity of an investigation, they unjustly call into question the reputation of those among them who respectfully adhere to the code of ethics so valued by the law enforcement community. We vow never to forget our obligation to remove from the criminal justice system those who don’t uphold the tenets of the legal system,” stated FBI Assistant Director-in-Charge Rodriguez.
The defendant is scheduled to be arraigned this afternoon before United States District Judge Leonard D. Wexler at the federal courthouse in Central Islip. The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorneys James Miskiewicz and Lara Treinis Gatz are in charge of the prosecution, assisted by EDNY Investigators William Hessle, Michael Cassidy, and Steven Kaplan.
The Defendant:
JAMES BURKE
Age: 51
Smithtown, New YorkE.D.N.Y. Docket No. 15-CR-627(LDW)
Former State Department Employee Pleads Guilty to Computer Hacking and Sexual Extortion of WomenRead the Press Release
ATLANTA – Michael C. Ford, a former U.S. State Department employee, has pleaded guilty to perpetrating a widespread, international e-mail phishing, computer hacking, and cyberstalking scheme against hundreds of women in the United States and abroad. Using e-mail passwords obtained by phishing, he hacked into hundreds of victims’ e-mail and social media accounts, stole thousands of sexually explicit photographs, and threatened at least 75 victims that he would release their photos and other personal information unless they agreed to his “sextortionate” demands.
“Ford engaged in an international sextortion campaign,” said U.S. Attorney John Horn. “He tormented numerous women by threatening to humiliate them unless they provided him with sexually explicit photos and videos, and in some cases, he followed through on his threats. This case demonstrates the need to be careful in safeguarding personal information and passwords, especially in response to suspicious e-mails.”
“With nothing more than a computer and a few keystrokes, modern predators like Michael Ford can victimize hundreds of people around the world,” said Assistant Attorney General Caldwell. “While this criminal prosecution may never return the victims’ sense of security, I hope that today’s guilty plea brings them some peace of mind.”
“The allegations contained in this federal indictment portray an individual consumed with sexually themed cyber-stalking and exploitation as well as an individual who felt he was beyond detection and grasp of authorities. The FBI is proud of the role it played in working with our law enforcement partners to bring Mr. Ford in for prosecution,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“When a public servant in a position of trust commits any form of misconduct, to include federal crimes such as cyberstalking and computer hacking, we vigorously investigate such claims,” said Director Miller. “The Diplomatic Security Service is firmly committed to investigating and working with the Department of Justice, U.S. Attorney’s Office and our other law enforcement partners to investigate criminal allegations and bring those who commit these crimes to justice.”
According to U.S. Attorney Horn, the charges and other information presented in court: From January 2013 and May 2015, he used various aliases that included “David Anderson” and “John Parsons” and engaged in a widespread, international computer hacking, cyberstalking and “sextortion” campaign designed to force victims to provide Ford with personal information as well as sexually explicit videos of others. Ford targeted young females, some of whom were students at U.S. colleges and universities, with a particular focus on members of sororities and aspiring models.
Ford posed as a member of the fictitious “account deletion team” for a well-known e-mail service provider and sent phishing e-mails to thousands of potential victims, warning them that their e-mail accounts would be deleted if they did not provide their passwords. Ford then hacked into hundreds of e-mail and social media accounts using the passwords collected from his phishing scheme, where he searched for sexually explicit photographs. Once Ford located the photos, he then searched for personal identifying information (PII) about his victims, including their home and work addresses, school and employment information, and names and contact information of family members, among other things.
Ford then used the stolen photos and PII to engage in an ongoing cyberstalking campaign designed to demand additional sexually explicit material and personal information. Ford e-mailed his victims with their stolen photos attached and threatened to release those photos if they did not cede to his demands. Ford repeatedly demanded that victims take sexually explicit videos of “sexy girls” undressing in changing rooms at pools, gyms and clothing stores, and then send the videos to him.
When the victims refused to comply, threatened to go to the police or begged Ford to leave them alone, Ford responded with additional threats. For example, Ford wrote in one e-mail “don’t worry, it’s not like I know where you live,” then sent another e-mail to the same victim with her home address and threatened to post her photographs to an “escort/hooker website” along with her phone number and home address. Ford later described the victim’s home to her, stating “I like your red fire escape ladder, easy to climb.” Ford followed through with his threats on several occasions, sending his victims’ sexually explicit photographs to family members and friends.
Ultimately, Ford sent thousands of fraudulent “phishing” email messages to potential victims, successfully hacked into at least 450 online accounts belonging to at least 200 victims, and forwarded to himself at least 1,300 stolen email messages containing thousands of sexually explicit photographs. Ford sent threatening and “sextortionate” online communications to at least 75 victims.
During the relevant time period, Ford was employed by the U.S. Embassy in London. The majority of Ford’s phishing, hacking and cyberstalking activities were conducted from his computer at the U.S. Embassy.
Ford was initially charged by criminal complaint and arrested on May 17, 2015 at the Hartsfield-Jackson International Airport in Atlanta, Georgia.
Sentencing for Michael C. Ford, 36, of Atlanta, Georgia, is scheduled for February 16, 2016, before U.S. District Judge Eleanor L. Ross.
The case is being investigated by the U.S. Department of State, Diplomatic Security Service and the Federal Bureau of Investigation.
The case is being prosecuted by Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia, Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section, and Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section. Assistance was provided by the Criminal Division’s Office of International Affairs and the U.S. Embassy in London.
Anyone who believes that they are the victim of hacking, cyberstalking, or “sextortion” should contact law enforcement. Resources regarding hacking and other cybercrimes can be found at: https://www.fbi.gov/about-us/investigate/cyber.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Razorback Star Pleads Guilty in Oxycodone CaseRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that Cedric Cobbs, 34, of Little Rock, pled guilty today to using a communication device to facilitate a drug offense before U.S. District Court Judge D.P. Marshall, Jr. Cobbs is a former Arkansas Razorback star running back who went on to play in the NFL with the New England Patriots and Denver Broncos.
Cobbs was one of 33 people indicted in an oxycodone conspiracy in October 2014. In exchange for the guilty plea, the United States dismissed a count for conspiracy to distribute oxycodone. On Wednesday, Cobbs admitted he sold oxycodone pills to the head of the conspiracy, Charolda Walton. Specifically, on March 16, 2014, in a deal set up by a series of calls and texts, Cobbs delivered oxycodone pills to Walton’s house, where Walton was waiting with a customer to buy the pills. The transaction was observed by law enforcement. According to the facts read in open court, Cobbs also sold oxycodone to Walton on March 15, and dealt with Walton on multiple other occasions.
Use of a communication device to facilitate a drug offense is punishable by up to four years’ imprisonment, a $250,000 fine, and not more than one year supervised release. Sentencing before Judge Marshall is set for July 21, 2016.
The investigation was conducted by the Drug Enforcement Administration, with assistance from several law enforcement agencies including the Little Rock Police Department, the Benton Police Department and the Saline County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Chris Givens.
Former Newtown Police Sergeant Admits Heading Steroid Manufacturing and Distribution ConspiracyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that STEVEN SANTUCCI, 39, of Waterbury, pleaded guilty today in Hartford federal court to one count of conspiracy to distribute anabolic steroids and one count of conspiracy to launder monetary instruments.
According to court documents and statements made in court, a long-term investigation led by the Federal Bureau of Investigation, Drug Enforcement Administration and Homeland Security Investigations revealed that SANTUCCI, a former Newtown Police sergeant, and others were receiving shipments of steroid ingredients from China and manufacturing and distributing wholesale quantities of steroids. The investigation also revealed that certain members of the conspiracy were distributing prescription pills, including oxycodone, as well as cocaine.
SANTUCCI used more than $120,000 in proceeds from the sale of anabolic steroids to wire payments to foreign sellers of ingredients to make liquid anabolic steroids, and to purchase drug packaging materials from domestic companies.
Twelve individuals were charged as a result of the investigation. During the course of the investigation, law enforcement officers seized hundreds of vials of steroids, approximately 600 grams of raw testosterone powder, approximately 350 grams of powder cocaine, and four long guns.
SANTUCCI is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on March 3, 2016, at which time he faces a maximum term of imprisonment of 30 years.
SANTUCCI was arrested on April 29, 2015, and is released on a $100,000 bond.
This matter is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, with the assistance of the U.S. Marshals Service, U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Robert M. Spector.
Former Employee of Global Financial Services Company Charged with Unauthorized Access of Supervisor’s Email Account on Approximately 100 OccasionsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a complaint charging KRISTOPHER ROCCHIO with computer fraud, stemming from his repeated unauthorized access of his former supervisor’s email account from at least August 2013 through in or about February 2015. ROCCHIO was arrested this morning, and will be presented in Manhattan federal court before Magistrate Judge Ronald L. Ellis later today.
According to the allegations contained in the criminal complaint[1] unsealed today in Manhattan federal court:
From February 2008 through March 2012, ROCCHIO was employed by a global fixed-income financial services company with an office in New York, New York (the “Company”). While employed by the Company, ROCCHIO had a direct supervisor (the “Supervisor”). During ROCCHIO’s employment, the Supervisor never gave ROCCHIO permission to read the Supervisor’s email account at the Company (the “Supervisor’s Email”), and never knowingly gave ROCCHIO the password to the Supervisor’s Email.
In March of 2012, ROCCHIO left the Company. On or about February 25, 2015, the Supervisor received an email bounce back message to the Supervisor’s Email. The message indicated that an email sent from the Supervisor’s Email could not be delivered (the “Failed Email”). The Supervisor had not personally attempted to send the Failed Email. The Supervisor then checked the sent mail folder of the Supervisor’s Email and noticed two emails in the folder that the Supervisor had not personally sent. One email was the Failed Email. The other email (the “February 25 Email”) was sent to another email address (the “Email Account”). The content of both the Failed Email and the February 25 Email was the same, and included a password-protected attachment that detailed, among other things, the compensation and performance evaluations for numerous employees at the Company. Later that same day, the Supervisor checked the sent mail folder of the Supervisor’s Email again, but both the Failed Email and the February 25 Email had been deleted by someone other than the Supervisor.
FBI agents reviewed records from the Email Account and learned that the subscriber for the Email Account is ROCCHIO. The Email Account contains the February 25 Email. The Email Account also contains an earlier email from the Supervisor’s Email sent on or about December 21, 2013 (the “December 21 Email”). The December 21 Email has an attachment, which is a PowerPoint presentation that contained internal metrics of the Company. Also on or about December 21, 2013, the Email Account forwarded the December 21 Email to an email account associated with ROCCHIO (“Email Account-2”) at another financial services company in New York, New York (“Company-2”). Email Account-2 then forwarded the December 21 Email to another employee at Company-2. Company-2 employed ROCCHIO from May 2013 through July 2015.
Records of remote access to the Supervisor’s Email reveal a number of IP addresses used to access the Supervisor’s Email. Three of the IP addresses – which collectively accessed the Supervisor’s Email at least 79 times – were assigned to ROCCHIO. One of the IP addresses – which accessed the Supervisor’s Email at least 15 times – was assigned to Company-2. One of the IP addresses that accessed the Supervisor’s Email was assigned to a hotel in Chicago, Illinois, where ROCCHIO was staying at the time of the access into the Supervisor’s Email.
* * *
ROCCHIO, 38, of Staten Island, New York, is charged with two counts of computer fraud, in violation of Title 18, United States Code, Section 1030. Each count carries a maximum penalty of five years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentence imposed on the defendant will be determined by the Court.
Mr. Bharara praised the outstanding efforts of the FBI and its New York Cyber Division.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Megan Gaffney is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the descriptions of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Five Charged in Scheme to Commit Marriage FraudRead the Press Release
HOUSTON – A total of five Houston residents have been charged in a seven-count indictment alleging their involvement in a marriage fraud scheme involving Nigerian nationals, announced U.S. Attorney Kenneth Magidson along with Brian M. Moskowitz, special agent in charge of Immigration and Customs Enforcement - Homeland Security Investigations (ICE-HSI) in Houston. This indictment is the result of a previous indictment charging six defendants, who were all convicted earlier this year.
The indictment was returned under seal Nov. 18, 2015, and unsealed today. Folarin H. Alabi, 33, Justice Daniel, 40, and Ifeoma Adamolekun, 39, all of Houston, were taken into custody today and will make their initial appearances in federal court at 2:00 p.m. this afternoon.
Letrishia A. Andrews, 36, also of Houston, was in state custody on unrelated charges and made her initial appearance in federal court this morning. At that time, U.S. Magistrate Judge Frances Stacy ordered she be detained pending further criminal proceedings.
A final defendant – Charles R. Warren, 43 – is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact ICE-HSI at 281-985-0500.
The five defendants allegedly conspired together in connection with a marriage fraud ring involving arranged “sham” marriages between recruited U.S. citizens and Nigerian nationals. A “sham” marriage is a marriage that is entered into for the primary purpose of circumventing the immigration laws.
“Becoming an American citizen is an honor and a privilege,” said Moskowitz. “Obtaining citizenship through fraud is an affront to every person who has played by the rules and it threatens the integrity of our legal immigration system. ICE-HSI special agents will continue to work with our partners to ensure that those who use criminal and dishonorable means to achieve the most honorable of goals are brought to justice.”
The indictment alleges conspirators would pay U.S. citizens for entering into fraudulent marriages to Nigerian nationals who had originally entered the country on tourist visas. The conspirators would then complete immigration documents and submit them to Citizenship and Immigration Services (CIS) to obtain legal permanent resident status, according to the indictment. As part of the conspiracy, the indictment further alleges they would take staged photographs of themselves as a couple for documentation of an allegedly meaningful relationship. The conspirators also allegedly coached the recruits and/or the Nigerian nationals on what to say when questioned or interviewed by law enforcement or immigration officials about the legitimate nature of the marriages.
The indictment charges all five with conspiracy commit marriage fraud. Alabi, who is charged with recruiting the Nigerian nationals to engage in this conspiracy, is also charged with two counts of aiding and abetting marriage fraud, while Andrews and Warren are each charged with the same allegation. Daniel and Adamolekun were also indicted on one count of committing marriage fraud.
Alabi allegedly recruited Nigerian nationals, including Daniel and Adamolekun, to enter into “sham” marriages with U.S. citizens to ultimately gain lawful permanent status in the Unites States. The indictment further alleges Daniel did knowingly marry Andrews, a U.S. citizen for the for the purpose of evading any provision of the immigration laws of the United States. Similarly, Warren allegedly entered into a sham marriage with Adamolekun, according to the allegations. At the time of this conspiracy, Alabi and Adamolekun were natives and citizens of Nigeria and had entered the U.S. temporarily on non-immigrant visas. Daniel is a lawful permanent resident.
If convicted on any of the counts as charged, each defendant faces up to five years in federal prison and a possible $250,000 fine.
The charges are the result of an investigation by ICE-HSI, Department of Homeland Security (DHS) - Document and Benefit Fraud Task Force, Office of Fraud Detection, CIS Fraud Detection and National Security Directorate and the Department of Agriculture - Office of the Inspector General. Special Assistant U.S. Attorney Rick Bennett is prosecuting the case.
The indictment is a formal accusation of criminal conduct, not evidence.
All defendants are presumed innocent unless convicted through due process of law.Final Two Aryan Brotherhood Associates Sentenced to Federal Prison for Their Roles in Methamphetamine Distribution OperationRead the Press Release
In Waco, a federal district judge sentenced to federal prison the remaining two Aryan Brotherhood (AB) associates convicted of participating in a methamphetamine trafficking conspiracy announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
This afternoon, United States District Judge Walter S. Smith, Jr., sentenced 51–year-old Chris Voerhis (aka “Lurch”) of Moffat, TX, to 168 months imprisonment followed by five years of supervised release and 35–year-old Derrick Cooper (aka “Red”) of Temple, TX, to 84 months imprisonment followed by five years of supervised release. Judge Smith also ordered both defendants to pay a $1,000 fine. On October 8, 2015, both defendants pleaded guilty to one count of conspiracy to distribute between 50 grams and 500 grams of methamphetamine.
“These sentences resulted from unprecedented collaboration of federal, state, and local law enforcement targeting a large-scale prison gang involved in violent organized crime over three counties in Central Texas,” said FBI Special Agent in Charge Christopher Combs. “This effort not only exemplifies our commitment to prevent gang violence and criminal activity from poisoning our communities, but it also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent criminal enterprises regardless of where they lay their heads.”
“Operation ‘La Flama Blanca’ has inflicted a debilitating blow to the network of shadow and often violent facilitators of the Aryan Brotherhood of Texas,” said Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration--Houston Field Division. “This operation highlights a deliberate and strategic effort to cut off and shut down the supply of methamphetamine trafficked by the Aryan Brotherhood and the corresponding impact that this horrific drug inflicts on our communities.”
To date, 34 individuals have been sentenced in connection with this investigation to imprisonment ranging from just under two years to 35 years in federal prison.
During this 10-month-long operation, investigators conducted several controlled methamphetamine purchases. To date, authorities have seized approximately nine pounds of “crystal” methamphetamine, 15 firearms, over $9,000 in U.S. Currency and other assets in connection with this investigation.
This case is the result of a joint investigation conducted by the Federal Bureau of Investigation and the Drug Enforcement Administration together with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Temple Police Department, Texas Department of Public Safety, Texas Department of Criminal Justice-Office of Inspector General, McLennan County Sheriff’s Office, Coryell County Sheriff’s Office, Bell County Sheriff’s Office, Gatesville Police Department, Lampasas Police Department, Killeen Police Department, Austin Police Department and the United States Marshals Service. Assistant United States Attorneys Mark Frazier and Stephanie Smith-Burris prosecuted this case on behalf of the Government.
Federal Sex Trafficking Charges Filed Against Two Wichita ResidentsRead the Press Release
WICHITA, KAN. – Federal sex trafficking charges have been filed against two people who live in Wichita, U.S. Attorney Barry Grissom said today.
Martin D. Muldrow, Jr., 36, Wichita Kan., and Breaira S. Bland, 22, Wichita, Kan., are charged with one count of sex trafficking, one count of causing a person to cross state lines for purposes of prostitution, two counts of transporting a person across state lines for prostitution, and one count of traveling from Kansas to Texas for the purpose of prostitution.
Upon conviction, the crimes carry the following penalties:
Sex trafficking by force, fraud or coercion: Not less than 15 years in federal prison and a fine up to $250,000.
Causing a person to cross state lines for prostitution: A maximum penalty of 20 years and a fine up to $250,000.
Transporting a person across state lines for prostitution: A maximum penalty of 10 years and a fine up to $250,000 on each count.
Traveling across state lines for the purpose of prostitution: A maximum penalty of five years and a fine up to $250,000.
The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney Jason Hart are prosecuting.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.—The results of the December 2015 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Lachambra Nadene Buntin. Theft of Mail by Employee. Buntin, 39, of Mounds, Okla., a United States Postal Service employee, is charged with stealing mail on September 8 and October 16, 2015. If convicted, the statutory maximum sentence is five years in prison and a $250,000 fine. The United States Postal Service-Office of Inspector General is the investigating agency.
Jose Anuar Claudio-Ortiz. Reentry of Removed Alien. Claudio-Ortiz, 38, is charged with having returned to the United States unlawfully after being deported in December 2010 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Elton John Fernandes. Possession of AB-Fubinaca with Intent to Distribute and Possession of XLR-11 with Intent to Distribute. Fernandes, 37, of Broken Arrow, is charged with possession with intent to distribute AB-Fubinaca and XLR-11, both drugs are a Schedule I controlled substance. If convicted, the statutory maximum penalty is 20 years in prison and a $1,000,000 fine. In addition, the defendant shall forfeit several firearms. The Drug Enforcement Administration is the investigating agency.
Kaitlin Elizabeth Lemons. Possession of Stolen Mail. Lemons, 30, of Tulsa, is charged with possession of stolen mail. If convicted, the statutory maximum penalty is five years in prison and a $250,000 fine. The United States Postal Inspector is the investigating agency.
Dustin Scott Ross. Bank Robbery and Interference with Commerce by Robbery. Ross, 21, of Fort Gibson, Okla., is charged with robbing an Arvest Bank, on November 4, 2015, and robbing a CVS of OxyContin and Oxycodone on November 19, 2015, both businesses are located in Tulsa. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The Federal Bureau of Investigation is the investigating agency.
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Federal Court Appoints Receiver to Oversee Affairs of Portales-Based Livestock Auction BusinessRead the Press Release
ALBUQUERQUE – A U.S. Magistrate Judge has appointed a receiver for High Plains Livestock, LLC (HPL), a livestock auction business located in Portales, N.M. The receiver will be responsible for conducting a review of HPL’s viability and, if viable, will take over all aspects of HPL’s operations.
The court’s order was entered yesterday in a civil case initiated in Aug. 2015, by the United States against HLP, its owner Michael Flen, and its operators Darcie and Calvin Pareo. In its civil complaint, the United States alleged that HLP, Flen and the Pareos were violating the Packers and Stockyards Act (PSA) which outlaws unfair and deceptive practices in the cattle livestock market. According to the civil complaint, HPL operates a stockyard that primarily auctions cows from the dairy industry for a commission; the auctioned cows are sold to buyers who resell the cows for slaughter. HPL allegedly violated the PSA by failing to properly maintain custodial accounts, misusing custodial accounts, failing to maintain accurate records, generating false documents, altering sales documents, and misrepresenting the true purchasers of livestock.The order appointing the receiver was entered in response to the United States’ motion for a preliminary injunction and after a four-day hearing on the motion. According to the order, the court found “overwhelming and uncontroverted evidence of rampant violations of the PSA,” including the altering auction records, known as scale tickets, and falsifying buyer and seller invoices. “A review of the hundreds of scale tickets admitted into evidence that appear altered, the testimony of auction clerks that they do not fix mistakes in this way, and the admission of the Pareos that they altered scale tickets makes it extraordinarily probable that fraudulent conduct has occurred,” the court found. Prices were marked down after auction to benefit the Pareos, and they were sometimes marked up at the expense of the buyer of the cattle. The order noted that at least once, Mr. Pareo even marked a particular cow dead to avoid paying the seller for it, only to turn around and pocket the money he got by sending the live cow to the slaughterhouse.
The order noted that the Pareos compounded their wrongdoing by lying repeatedly to law enforcement to avoid detection. As the court found, “the Pareos demonstrate no remorse for their violations of the PSA and no intent to rectify those deficiencies. Instead, the Pareos have shown an absolute willingness to mislead authorities.”
The court appointed a receiver to, first, audit HPL’s business and determine whether it is viable as an ongoing business. If it is not viable, the court will determine whether a receiver will oversee HPL’s “winding up.” If the receiver determines the business can afford to continue operations, “the receiver will be responsible for overseeing all aspects of HPL’s operations, including all financial decisions, banking, recordkeeping, and regulation compliance.” Meanwhile, “Defendants Calvin and Darcie Pareo and Michael Flen will have no control over the business.”
This case was investigated by the Grain Inspection, Packers and Stockyards Administration of the U.S. Department of Agriculture. Assistant U.S. Attorneys Ruth F. Keegan and Karen F. Grohman are litigating the case on behalf of the United States with assistance from Auditor Julie Chappell.
Federal Charges Filed Against Lawrence Mother Who Fled the Country with Her DaughtersRead the Press Release
KANSAS CITY, KAN. – A Lawrence woman appeared in federal court in Kansas City, Kan., today on federal charges of fleeing to Europe in an effort to avoid losing custody of her two daughters, U.S. Attorney Barry Grissom said.
Samantha Elmer, 33, Lawrence, Kan., is charged with one count of taking her children out of the United States with intent to obstruct the lawful exercise of parental rights. Elmer was arrested Dec. 8 at the airport in Kansas City when she returned with her children.
A criminal complaint filed in U.S. District Court in Kansas City, Kan., alleges that on Oct. 26 Elmer and her daughters – one 11 years old and the other nine years old – boarded a flight from O’Hare International Airport in Chicago to Vienna, Austria, via Istanbul, Turkey. A week earlier, Elmer’s ex-husband and father of the two girls had filed for full custody in Johnson County District Court. The court had scheduled a hearing for the first week of November. Elmer also was scheduled for a hearing on felony theft charges in Johnson County District Court.
On Oct. 29, an officer of the Lawrence Police Department went to Elmer’s house in Lawrence to do a child welfare check. Investigators determined that Elmer’s daughters had missed the past six days of school. They learned that Elmer had been driving a rented vehicle and had dropped the vehicle off at O’Hare airport before boarding the flight to Austria.
If convicted, Elmer faces a maximum penalty of three years in federal prison and a fine up to $250,000. The following agencies worked on the investigation: the Lawrence Police Department, the FBI, Homeland Security Investigations, the Douglas County District Attorney’s Office, the Eudora Police Department, the Overland Park Police Department and the Johnson County District Attorney’s Office. Assistant U.S. Attorney Chris Oakley is prosecuting.