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7 December 2015
Winfield Man Sentenced to Six Years for Distributing Child PornRead the Press Release
WICHITA, KAN. – A Winfield man was sentenced Monday to six years in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said.
Paul Bruce Jordan, Jr., 61, Winfield, Kan., pleaded guilty to two counts of distributing child pornography and one count of possessing child pornography. Prosecutors told U.S. District Judge J. Thomas Marten that Jordan used an Internet file sharing network to download child pornography and store it on a computer at his residence in Winfield. Using the same file sharing network, investigators for the Wichita Police Department and the Kansas Internet Crimes Against Children Task Force downloaded images of child pornography from Jordan’s compute
Grissom commended the Wichita Police Department, the Kansas Internet Crimes Against Children Task Force, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
Wendell Couple Sentenced on Drug and Firearm OffensesRead the Press Release
BOISE - Miguel Angel Osuna-Zavala, 42, and his wife Diane Osuna, 44, of Wendell, Idaho, were sentenced today to the Federal Bureau of Prisons for possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of drug trafficking, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge sentenced Miguel Angel Osuna-Zavala to 84 months in prison and ordered him to serve four years of supervised release following incarceration. Diane Osuna was sentenced to 60 months in prison and ordered to serve five years of supervised release following incarceration. Both defendants pleaded guilty on September 9, 2015.
According to court proceedings, on February 2, 2015, a search warrant was executed on the couple’s home in Wendell, Idaho. Inside a safe located in the master bedroom, which both defendants had access to, were a package of methamphetamine weighing approximately 65 grams, and a 9mm Sturm Ruger pistol, model P95. The pistol is registered in the name of Diane Osuna. Miguel Angel Osuna-Zavala also claimed the firearm was his. The officers also found baggies and a set of digital scales in the house. Other guns were found in the residence, as well, According to court documents, Diane Osuna would weigh out the drugs for Miguel to sell. Miguel Angel Osuna-Zavala is a Mexican national living illegally in the United States and may be subject to deportation after his prison term is completed. Diane Osuna is a U.S. citizen.
The case was investigated by the Gooding County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms. The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
United States Attorney’s Office Collects $16 Million in Fiscal Year 2015Read the Press Release
CEDAR RAPIDS, IA – United States Attorney Kevin W. Techau announced today that the Northern District of Iowa collected $16,332,696 million in the fiscal year ending September 30, 2015, more than twice the office’s direct budget. Monies collected are returned to the federal treasury and victims of crimes.
Civil collections come from the government pursuing money lost to fraud, overpayments, or other misconduct, or collection of fines imposed on individuals and/or corporations for violations of federal financial, health, safety, civil rights, and environmental laws. Criminal collections involve actions related to victim restitution, fines, and court costs.
The Breakdown
The total $16 million collection effort is made up of the following:
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$8,690,693 was collected in criminal actions, which included victim restitution, fines, and court costs; and
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$7,642,003 was collected in civil actions.These civil actions are cases in which the office, acting on its own or with other components of DOJ, obtained judgments and settlements and collected those judgments and settlements; or where the office collected monies from individuals who failed to pay financial obligations owed to the United States.
In measuring collections recovered in FY 2015, these figures necessarily include some cases that were resolved in previous years but the proceeds of which were collected in the fiscal year 2015.
The top criminal collection involves Austin “Jack” DeCoster, his son Peter DeCoster, and their company, Quality Egg LLC. The criminal case involved bribery of a public official, introducing a misbranded food into interstate commerce with intent to defraud, and introducing adulterated food into interstate commerce. Adulterated eggs produced and distributed by Quality Egg were linked to approximately 1,939 reported consumer illnesses in multiple states—a nationwide outbreak of salmonellosis that led to the August 2010 recall of millions of eggs produced by them. In addition to both DeCosters being sentenced to serve prison time and fined $100,000, their company was sentenced to pay a fine of $6.79 million.
The top civil collection for the Cedar Rapids Office resulted from a settlement with ResCare Iowa Inc., which agreed to pay $5.63 million to the United States and the State of Iowa to resolve allegations that it violated the False Claims Act by submitting false home healthcare billings to the Medicare and Medicaid programs.
United States Attorney for the Northern District of Iowa, Kevin W. Techau, reinforced the importance of these collections, indicating “The recovery of ill begotten funds for the federal treasury and for victims of crimes is a top priority. I am very proud of the office’s efforts to hold accountable those who wrongfully profit at the expense of the United States.”
DOJ Collections
Nationally, the Department of Justice (DOJ) collected $23.1 billion in civil and criminal actions in fiscal year (FY) 2015. The amount collected represents more than seven and a half times the approximately $2.93 billion of the department’s combined appropriations for the 94 United States Attorneys’ Offices and the main litigating divisions in that same period.
The 23.1 billion includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $16.2 billion in payments made directly to the Justice Department, and more than $6.8 billion in indirect payments made to other federal agencies, states and other designated recipients.
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U.S. Citizen Deported from Uganda to Face Counterfeiting Charges in Western PARead the Press Release
PITTSBURGH - A United States citizen has been deported from the Republic of Uganda and brought to the Western District of Pennsylvania to face charges of leading an international counterfeit currency operation headquartered in that African nation. The announcement was made today by David Hickton, U.S. Attorney for the Western District of Pennsylvania and Eric Zahren, Special Agent in Charge of the U.S. Secret Service – Pittsburgh Field Office.
Ryan Andrew Gustafson, aka Jack Farrel, aka Willy Clock, 28, is charged with conspiracy, conspiracy to launder money, and the passing and receiving of counterfeit money from December 2013 until December 2014. The indictment alleges more than $1.4 million in counterfeit Federal Reserve Notes have been seized and passed worldwide, both overseas and in the U.S. as part of this scheme.
Gustafson had been on trial in Uganda on a number of charges, including possessing counterfeit money. He was deported Dec. 3 and arrived in Pittsburgh on Friday evening. He will be presented before Chief U.S. District Magistrate Maureen Kelly today at 2:30 p.m. for an Initial Appearance. The case is assigned to United States District Judge Mark R. Hornak.
“Identifying, charging and returning Ryan Gustafson to the United States from Uganda required extensive cooperation among diverse international law enforcement partners and expert coordination among the Secret Service, Federal Bureau of Investigation, Homeland Security Investigations and the U.S. Postal Inspection Service,” stated U.S. Attorney Hickton. “As a result, a multimillion dollar international cyber counterfeiting scheme has been disrupted and its principal will face justice on American soil. This investigation demonstrates our relentless resolve to identify cyber criminals overseas and bring them back to the United States to be tried for their crimes.”
“This international counterfeit currency investigation and subsequent arrests illustrate Secret Service expertise in safeguarding the Nation’s financial infrastructure since inception,” said Special Agent in Charge Zahren. “We will continue to work closely with our network of law enforcement partners to dismantle criminal enterprises seeking to victimize innocent victims, regardless of geographic distance or borders. Special thanks to Ugandan law enforcement officials and the United States Embassy Uganda for their assistance.”
“This investigation was an excellent example of a partnership between multiple federal law enforcement agencies across the country and overseas, working together to identify and bring down those responsible for a worldwide conspiracy. The U.S. Postal Inspection Service remains vigilant, pursuing criminals like Gustafson to ensure the public’s trust in a safe and secure mail system.” added Inspector in Charge, Tommy Coke, Pittsburgh Division of the U.S. Postal Inspection Service.
Gustafson, a U.S. citizen residing in Kampala, Uganda, was originally charged by criminal complaint in December 2014. The April 1, 2015, indictment naming Gustafson also charged three additional defendants with conspiracy and conspiracy to launder money from December 2013 until December 2014. Those defendants are:
- Zackary L. Ruiz, aka Mr. Mouse, 19, of Las Vegas, Nevada, who is pending trial;
- Jeremy J. Miller, aka Sinner, 31, of Seattle, Washington, who is pending trial; and
- Michael Q. Lin, aka Mlin, aka Mr. Casino, 21, of Bethlehem, Penn., who pleaded guilty on Nov. 9, and is scheduled to be sentenced on March 16, 2016.
Assistant U.S. Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
U.S. Attorney Hickton commended numerous agencies and organizations for conducting the investigation leading to charges in this case, including the Directorate of Public Prosecution, the Criminal Investigations and Intelligence Department, the Special Investigations and Intelligence Unit, and Stanbic Bank in Uganda; the U.S. Secret Service; the Federal Bureau of Investigation; the U.S. Postal Inspection Service; Homeland Security Investigations; U.S. Customs and Border Protection; and the National Cyber-Forensics & Training Alliance.
U.S. Attorney Booth Goodwin continues crackdown on heroin dealersRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced the prosecution of two more heroin dealers today in federal court in Charleston, West Virginia. A Charleston man was sentenced for distribution of heroin, and a Detroit man entered a guilty plea to aiding and abetting the distribution of heroin.
Michael Ealm, 36, of Charleston, was sentenced today to three years and ten months in federal prison for distribution of heroin. Ealm previously pleaded guilty to the federal drug charge and admitted that on three occasions in January, February, and March of 2015, he sold heroin to a confidential informant. On March 4, 2015, Metropolitan Drug Enforcement Network Team officers executed a search warrant at Ealm’s residence in Charleston. When the officers entered the residence, they caught Ealm trying to flush heroin down the toilet. During the search, officers recovered handguns and additional heroin, and Ealm gave a statement admitting that he had been selling heroin in the Charleston area since January of 2015.
Additionally, Robert James Bellamy, 31, of Detroit, pleaded guilty today to aiding and abetting the distribution of heroin. On October 22, 2014, officers with Charleston Police Department’s Special Enforcement Unit (SEU) used a confidential informant to purchase heroin from Bellamy in the Kanawha City area of Charleston. On three additional occasions, SEU members conducted controlled purchases of heroin either directly from Bellamy or from an associate working at his direction. Bellamy admitted that from January through December of 2014, he distributed at least 400 grams of heroin in and around Kanawha County. Bellamy faces up to 20 years in federal prison and a $1 million fine when he is sentenced in federal court in Charleston on March 23, 2016.
The investigation of Ealm was conducted by the Metropolitan Drug Enforcement Network Team. The Charleston Police Department’s Special Enforcement Unit investigated Bellamy. Assistant United States Attorney Haley Bunn is handling the prosecution of both of these cases.
These cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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U.S. Attorney Booth Goodwin collects over $11 million for taxpayers in fiscal year 2015Read the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that his office has collected $11,117,355.04 in the last year, which represents more than twice the office’s annual direct budget. Of this amount, $3,223,758.54 was collected in criminal actions, $1,917,340.47 was collected in civil actions, and $5,976,236.03 was collected in asset forfeiture.
Additionally, the U.S. Attorney’s Office for the Southern District of West Virginia worked with other U.S. Attorneys’ offices, components of the Department of Justice, and other federal agencies to collect an additional $15,003,158 in cases jointly pursued. Of this amount, $3,408 was collected in criminal actions and $14,999,750 was collected in civil actions.
Attorney General Loretta E. Lynch announced that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23.1 billion in collections in fiscal year 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
Goodwin noted, “The $11 million collected by this office represents more than twice the direct operating budget for my office for the year. These collections are made possible through the strong collaboration of my civil and criminal divisions, the attorneys and staff, and federal, state, and local law enforcement agencies. Together, we remain focused on community safety, and we will continue working as partners to hold criminals financially accountable for their dishonest gains.”
In December of 2014, Goodwin’s office recovered $1.1 million on behalf of Medicare and West Virginia Medicaid as part of a resolution with Trivillian’s Pharmacy in Charleston for allegations of fraud in dispensing pharmaceuticals. In another pharmacy case, Kofi Agyekum, the former owner and operator of A+ Care Pharmacy in Barboursville, forfeited $2.3 million and a Lexus when he was sentenced in August of this year for violating federal banking laws. The former pharmacy owner admitted that the money used in the banking crimes was derived from the illegal distribution of oxycodone, which the court noted, contributed to the oxycodone abuse epidemic in our communities.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal healthcare, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services on behalf of Medicare and Medicaid, Internal Revenue Service, Small Business Administration and Department of Education.
In addition to the civil and criminal collections, Goodwin’s office, working with partner agencies and divisions, collected $5,976,236.03 in asset forfeiture actions in fiscal year 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. This brings the total amount collected by Goodwin’s office in fiscal year 2015 to $11,117,355.04. The fiscal year began on October 1, 2014, and ended on September 30, 2015.
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Two more defendants sentenced in oxymorphone conspiracyRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that two more defendants were sentenced in federal court in Huntington, West Virginia, for their role in an oxymorphone distribution scheme that took place in a Nitro home.
Jennifer Russell, 42, of Nitro, was sentenced today to five years of probation for knowingly maintaining a residence for the purpose of distributing oxymorphone. Russell admitted that from November of 2013 to January of 2014, she allowed her residence at 21A Bailes Drive in Nitro to be used as a place for distribution of oxymorphone pills. Russell allowed Karson Williams, Bridgette Kelly, Gregory Lindsey, and others to distribute the illicit pills from the house.
Karson Williams, 21, of Charleston, was sentenced to five years of probation for aiding and abetting the distribution of oxymorphone. Williams previously pleaded guilty to the federal drug charge and admitted that on January 14, 2014, he sold a 40 mg oxymorphone pill, commonly known as “Opana,” to a confidential informant. The drug deal took place at Jennifer Russell’s house in Nitro, and Williams further admitted that Bridgette Kelly helped Williams with the drug deal.
Bridgette Kelly, of Charleston, previously pleaded guilty to conspiracy to distribute oxymorphone and was sentenced on September 14, 2015, to three years and one month in federal prison. Kelly conspired with Gregory Lindsey, of Detroit, to distribute oxymorphone pills from Jennifer Russell’s residence in Nitro. Lindsey made regular trips to Detroit, sometimes with Kelly, and brought back approximately 100 oxymorphone pills each trip for distribution. On January 30, 2014, officers executed a search warrant at Jennifer Russell’s residence in Nitro and seized over twenty 30 mg oxymorphone pills, over thirty 40 mg oxymorphone pills, and a firearm in Lindsey’s possession. Lindsey previously pleaded guilty to possession with intent to distribute oxymorphone, and was sentenced to four years and nine months in federal prison on August 4, 2014.
These cases were investigated by the Metropolitan Drug Enforcement Network Team and the prosecution is being handled by Assistant United States Attorney Monica D. Coleman.
These cases is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two Sentenced in Fresno-Area Identity Theft Ring Involving over 250 victims and $1.2 million in Attempted FraudRead the Press Release
FRESNO, Calif. — Two Fresno residents, Daniel Miranda, 26, and Roberto Martinez Jr., 34, were sentenced today for conspiring to commit mail fraud, bank fraud, and wire fraud, and for aggravated identity theft, United States Attorney Benjamin B. Wagner announced. Miranda was sentenced by Senior United States District Judge Anthony W. Ishii to seven years and 10 months in prison, and Martinez was sentenced to three years in prison.
According to court documents, from about June 2012 to January 2014, Miranda and Martinez, along with co-conspirators Lilliana Gonzales and Viririana Hernandez, obtained personal information from victims through various methods. Without the victims’ permission, they opened credit card accounts in the victims’ names or added themselves as “authorized users” of the victims’ existing accounts. The conspirators then used the accounts to buy goods and services at locations throughout the Fresno area, as well as in Modesto and in Riverside County.
In total, the four conspirators misused the personal information of approximately 250 victims and attempted fraudulent credit card charges of over $1.2 million.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated “we are working closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those responsible for complex Identity Fraud Schemes and to protect postal customer’s mail and personal information from theft.”
This case is the product of an investigation by the United States Postal Inspection Service, the Treasury Inspector General for Tax Administration, and the Fresno Police Department. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
Hernandez previously pleaded guilty to conspiracy and aggravated ID theft, and was sentenced to four and a half years in prison on November 2, 2015. Gonzales previously pleaded guilty to conspiracy and aggravated ID theft, and is scheduled to be sentenced on January 11, 2016. She faces a maximum statutory penalty of 30 years in prison and a $1 million fine on the conspiracy charge, and an additional two years for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Two Major Dyersburg Crystal Meth Distributors SentencedRead the Press Release
Jackson, TN – Two leaders of a lucrative methamphetamine distribution ring in West Tennessee have been collectively sentenced to more than 270 months in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencings today.
"The production, distribution and ingestion of methamphetamine remain an issue that is ravaging communities in West Tennessee and throughout the nation," said U.S. Attorney Edward L. Stanton III. "Sentences like these two serve as strong reminders that law enforcement is committed to ridding our district of this insidious drug."
Steven Isbell, Chief of Dyersburg Police Department, said of the case, "This is an example of what good teamwork can do. This case was initiated by our patrol level response. Officers referred the beginning information to the Dyersburg Police Department Street Crimes Unit, who in turn got DEA and TBI involved in the investigation. The end result is that 15 people have now been indicted federally, and these two sentences alone have gotten two major ice distributors off our streets."
Dyer County Sheriff Jeff Box stated, "I sincerely appreciate the U.S. Attorney’s Office working with all the agencies involved to insure these defendants received appropriate punishment for the crimes they committed. Our local officers worked with DEA and TBI on this investigation, which has lasted over 1 ½ years. Everybody's hard work resulted in numerous federal indictments and has helped us eliminate a high purity ice distribution ring in the Dyer County area."
According to information presented in court, Miracle Pounds, 37, and Robert Troy Anderson, 49, both of Dyersburg, TN, spearheaded an organization responsible for distributing large quantities of meth and crystal meth, also known as "ice." Meth with greater than 80 percent purity classifies as ice and has stricter punishment levels under the United States Sentencing Guidelines. From January 2014 to December 2014, the two defendants, along with several co-conspirators, unlawfully distributed various quantities of highly pure meth throughout West Tennessee.
In January 2014, Operation Ice Breaker was initiated by the Drug Enforcement Administration (DEA) in collaboration with the Tennessee Bureau of Investigation (TBI), Dyersburg Police Department, and Dyer County Sheriff’s Office. The operation targeted several major ice distributors in the Dyersburg area — Pounds and Anderson being two of the operation’s main targets. Several state search warrants were executed on co-conspirators' homes during the investigation. And numerous controlled purchases were conducted where ice was sold by conspirators involved in the drug trafficking organization.
According to court information, Pounds and Anderson sold ice to undercover operatives. They also had other individuals selling ice for them. The two defendants, as well as other co-conspirators, transported meth from Arkansas to West Tennessee on various occasions for unlawful distribution. The majority of the meth recovered during Operation Ice Breaker’s duration was greater than 95 percent pure, classifying it as ice.
Both Pounds and Anderson pled guilty to one count of conspiracy to distribute and possess with intent to distribute actual methamphetamine.
On November 24th, 2015, Chief Judge J. Daniel Breen sentenced Pounds to serve 121 months in prison.
On December 4th, 2015, Judge Breen sentenced Anderson to serve 151 months in prison.
This case was investigated by the DEA, TBI, Dyersburg Police Department, and Dyer County Sheriff’s Office.
Assistant U.S. Attorney Beth Boswell prosecuted this case on the government’s behalf.
Timothy Gerace Sentenced to Ten YearsRead the Press Release
ABINGDON, VIRGINIA – United States Attorney Anthony P. Giorno announced today that Timothy Gerace was sentenced to 120 months imprisonment in the United States District Court for the Western District of Virginia in Abingdon after having previously pleaded guilty to one count of conspiring to distribute methamphetamine. Gerace was the final defendant to be sentenced in the multi-jurisdictional investigation of methamphetamine distribution, “Operation Saltvegas.”
Timothy Gerace, 55, of Mountain City, Tenn., previously entered a plea of guilty to one count of a multi-count indictment charging him with conspiring to distribute methamphetamine. According to evidence presented at the guilty plea and sentencing hearings by Assistant United States Attorney Zachary T. Lee, Gerace and co-defendant Richard Shaw were suppliers of large quantities of methamphetamine to more than twenty-five sub-distributors in both Northeast Tennessee and Southwest Virginia. Gerace’s conduct was uncovered as part of a multi-agency investigation involving federal, state and local law enforcement in both Virginia and Tennessee. As part of his plea, Gerace admitted to being involved in the distribution of more than five kilograms of methamphetamine. As a result of the investigation, twenty-seven individuals have pleaded guilty and been sentenced for conspiring to distribute methamphetamine and twenty individuals have been sentenced as a result of the investigation. The defendants sentenced are:
Jeramiah Yates, 34, Vilas, NC – 37 months imprisonment
Melvin Campbell, 45, Mountain City, TN – 7 months imprisonment
Daniel Reece, 46, Mountain City, TN – 72 months imprisonment
Linda Walters, 46, Mountain City, TN – 12 months and 1 day imprisonment
Russell Wayne Cassell a/k/a “Rusty”, 44, Glade Spring, VA – 41 months imprisonment
Kenneth Craig Buchanan a/k/a “Bubba”, 50, Glade Spring, VA – 24 months imprisonment
Stephanie Patrick, 40, Glade Spring, VA – 24 months imprisonment
Roger Lawson, 65, Glade Spring, VA – 46 months imprisonment
Toby Mock, 44, Glade Spring, VA – 6 months imprisonment
Rachel Peake, 44, Atkins, VA – 6 months imprisonment
Jason Mullinax, 37, Chilhowie, VA – 36 months imprisonment
Roger Austin, Jr. a/k/a “Fat Rog”, 52, Glade Spring, VA – 121 months imprisonment
Angela Surber, 40, Chilhowie, VA – 37 months imprisonment
Timothy Nickolas Rabara, 26, Marion, VA – 5 years’ probation
Albert Hague, 56, Mountain City, TN – 30 months imprisonment
Kimberly Ann Bradley, 44, Johnson City, TN – 12 months and 1 day imprisonment
James Poore a/k/a “Danny”, 48, Glade Spring, VA – 18 months imprisonment
Tony Delp, Glade Spring, VA – 6 months imprisonment
Katherine Mitchell, 55, Saltville, VA – 78 months imprisonment
Gary Lee Howell, 53, Saltville, VA – 121 months imprisonment
Jim Grindstaff , 49, Mountain City, TN - 63 months imprisonment
Michael Brady Lester, 43, Abingdon, VA – 42 months imprisonment
Joseph Nathan Hall, 36, Abingdon, VA – 60 months imprisonment
William Hunt, Jr., 54, Abingdon, VA – 16 months imprisonment
Brandi Marie Dunford, 35, Abingdon, VA – 60 months imprisonment
Angeline Delp, 52, Glade Spring, VA - 6 months imprisonment
The investigation of this case was conducted by the Washington County Sheriff’s Office, Russell County Sheriff’s Office, Smyth County Sheriff’s Office, Abingdon Police Department, Virginia State Police, Johnson County, Tennessee Sheriff’s Office, Tennessee Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Drug Enforcement Administration, and the United States Marshals Service. The Smyth County Commonwealth’s Attorney’s Office and the Washington County Commonwealth’s Attorney’s Office also assisted in the investigation and prosecution of this case. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
Three Plead Guilty, One Is Sentenced for Extensive Counterfeit Media Conspiracy in Central ValleyRead the Press Release
FRESNO, Calif. — Efrain Lozada Rosas, 34, and Victor Flores Fuentes, 39, both of San Jose, and Jesus Cuevas Lopez, 25, of Southern California, pleaded guilty today before U.S. District Judge Lawrence J. O’Neill to conspiring to commit criminal copyright infringement and commit related crimes, United States Attorney Benjamin B. Wagner announced. Another co-defendant, Edgar Hipatl Rodriguez, 36, of San Jose, was sentenced today by Judge O’Neill to two years and three months in prison for his role in the counterfeit media conspiracy.
According to court documents, on March 13, 2015, warehouse and office space used by the defendants were found to contain tens of thousands of counterfeit music CDs and movie DVDs. The counterfeit materials included movie titles that were in theatrical release and not yet available for legitimate sale on DVD. The counterfeit CDs and DVDs were distributed by the defendants for resale in Atwater, Modesto, Stockton, Turlock, and throughout California.
This case is the product of an investigation by the Sacramento Intellectual Property Rights Task Force composed of the Federal Bureau of Investigation and the Sacramento County Sheriff’s Office. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.
Ten defendants were indicted in March 2015 in connection with the counterfeit media operation. Eight of the defendants have pleaded guilty to various charges. Two remaining defendants, Miguel Angel Gomez Rebolledo, 35, and Antonio Morales, 32, of San Jose, are scheduled for trial in March 2016. The charges against these remaining two defendants are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Rosas, Fuentes and Cuevas Lopez are scheduled to be sentenced by Judge O'Neill on April 4, 2016. They face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Southern California Ambulance Company Owner, Operator and Managers Sentenced to Prison for Medicare Fraud SchemeRead the Press Release
The former owner, operator and managers of a Southern California ambulance company were sentenced to prison for their role in a fraud scheme that resulted in more than $1.5 million in fraudulent claims to Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Special Agent in Charge Christian J. Schrank of the U.S. Department of Health and Human Services-Office of the Inspector General’s (HHS-OIG) Los Angeles Region and Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division made the announcement.
Today, U.S. District Judge S. James Otero of the Central District of California sentenced Yaroslav Proshak, aka Steven Proshak, 47, of Valley Village, California to serve 108 months in prison. On Dec. 2, 2015, Judge Otero of the Central District of California sentenced Emilia Zverev, 58, of Van Nuys, California; and Sharetta Michelle Wallace, 37, of Inglewood, California, to serve 36 months and 24 months in prison, respectively. In addition to their prison terms, Judge Otero ordered Zverev and Wallace to pay restitution jointly and severally with Proshak in the amount of $804,755. On Aug. 18, 2015, following a 10-day trial, a federal jury in Los Angeles convicted Proshak, Zverev and Wallace of one count of conspiracy to commit health care fraud and five counts of health care fraud.
Zverev and Wallace worked for ProMed Medical Transportation, an ambulance transportation company owned and operated by Proshak in the greater Los Angeles area that provided non-emergency services to Medicare beneficiaries, many of whom were dialysis patients. Zverev was the billing manager and Wallace supervised the ProMed EMTs. The evidence at trial showed that between May 2008 and October 2010, the defendants conspired to bill Medicare for ambulance transportation services for individuals that did not need such services. The defendants also instructed ProMed EMTs to conceal the patients’ true medical conditions by altering paperwork and creating fraudulent documents to justify the services. During the course of the conspiracy, ProMed submitted at least $1.5 million in false and fraudulent claims to Medicare for medically unnecessary transportation services; Medicare paid at least $804,755 on those claims.
The FBI and HHS-OIG investigated the case. The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Central District of California. Trial Attorneys Blanca Quintero, Fred Medick and Ritesh Srivastava of the Criminal Division’s Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Somerset County, New Jersey, Man Admits Knowingly Possessing Air Tank Filled with Heroin and CocaineRead the Press Release
NEWARK, N.J. – A Somerset, New Jersey, man who was pulled over with an air tank hiding 19 kilograms of cocaine and seven kilograms of heroin today admitted his intent to distribute the drugs in the Jersey City, New Jersey, area, U.S. Attorney Paul J. Fishman announced.
Richard Vasquez Rodriguez, 35, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to a superseding information charging him with one count of distribution and possession with intent to distribute cocaine and one count of distribution and possession with intent to distribute heroin.
According to documents filed in this case and statements made in court:
On Jan. 16, 2014, Rodriguez was driving a 2005 Blue Chevrolet Tahoe on the New Jersey Turnpike headed towards Jersey City. Law enforcement officers pulled over Rodriguez and he consented to a search of the vehicle.
Law enforcement found an air tank, similar to a helium tank for filling balloons, lying in the back of the Chevrolet Tahoe. Upon closer inspection, it appeared that one end of the air tank had been removed at some point and welded back together. A search of the air tank revealed that it contained approximately 19 kilograms of cocaine and seven kilograms of heroin. Rodriguez admitted today that he transported the air tank with the intent to distribute the cocaine and heroin.
Both distribution offenses to which Rodriguez pleaded guilty carry a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for March 16, 2016.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration (DEA), Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski, and officers of the N.J. State Police, under the direction of Col. Joseph R. Fuentes, superintendent of the state police, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre, Joyce M. Malliet and Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Dennis D.S. McAlevy Esq., Union City, New Jersey
Sinaloa Cartel Member Sentenced to 17 Years in Federal Prison for Cocaine Drug ConspiracyRead the Press Release
CONCORD – Acting United States Attorney Donald Feith announced today that Rafael Humberto Celaya Valenzuela, 40 of Hermosillo, Mexico was sentenced today to 17 years in federal prison after being convicted by a jury of conspiracy to distribute and to possess with the intent to distribute cocaine.
A grand jury for the District of New Hampshire originally charged Celaya Valenzuela and seven coconspirators including Joaquin Guzman-Loera, a/k/a “Chapo” with the drug conspiracy in June 2011. A grand jury returned a superseding indictment in July 2012; shortly before Celaya Valenzuela’s arrest in Spain on August 7, 2012 conspirators Samuel Zazueta Valenzuela, Jesus Gonzalo Palazuelo Soto, and Jesus Manuel Gutierrez Guzman arrived there to monitor the delivery of 346 kilograms of cocaine to Algeciras, Spain. The cocaine was delivered to a European port for eventual redistribution in Europe and the United States. The delivery resulted from negotiations between members of the Sinaloa Cartel led by Chapo and undercover agents of the Federal Bureau of Investigation posing as members of an organized crime syndicate.
During the period of the negotiations there were numerous meetings with members of the conspiracy in the United States, including an April 2011 meeting in New Castle, New Hampshire, and a March 2011 meeting in Madrid, Spain to finalize the terms of the first delivery. During this time, three “test” deliveries of fruit were made to provide assurance to the conspirators that they were not dealing with law enforcement. The success of the test deliveries led to the ultimate delivery of the cocaine.
“This case illustrates that drug cartels based in foreign countries will go anywhere to distribute their deadly products,” stated Acting United States Attorney Donald Feith. “Mr. Celaya Valenzuela served as a representative of one of the world’s wealthiest and deadliest drug organizations. Without the work of dedicated agents from the FBI, the Boston Police Department, and the Spanish National Police, this long term investigation would not have been successful. I commend these agencies for their determination to bring these individuals to justice.”
Celaya Valenzuela will be deported to Mexico upon his release.
Sex Offender Arrested for False Statements Regarding Computer AccessRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Richard Petix, 30, of Rochester, NY, was arrested and charged by criminal complaint with material false statement. The charge carries a maximum penalty of five years in prison and a $250,000 fine.Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that according to the complaint, Petix lied to federal probation officers and law enforcement agents about his ownership and use of a laptop computer and a smartphone. Petix is on a term of supervised release following a 2009 federal conviction for knowingly transporting child pornography in interstate commerce. As special conditions of his supervision, Petix must notify his probation officer of any computers he uses and, as triggered by impermissible or suspicious activity, consent to examinations of such computers. On December 3, 2015, probation officers saw Petix at a business establishment in Buffalo, accessing a laptop computer and possessing a smartphone and multiple thumb drives.
The defendant made an initial appearance before U.S. Magistrate Judge Hugh B. Scott and is being held pending a preliminary hearing on December 16, 2015, at 10:00 a.m.
The indictment is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the United States Probation Office, under the direction of Anthony SanGiacomo.
The fact that a defendant has been charged with a crime is merely an accusation
Santa Barbara Doctor Sentenced to over 27 Years in Federal Prison for Writing Prescriptions for Huge Quantities of Dangerous NarcoticsRead the Press Release
SANTA ANA, California – A Santa Barbara-area physician who wrote numerous prescriptions for powerful painkillers for “patients” – many of whom were drug addicts, and some of whom died from drug overdoses – was sentenced today to 327 months in federal prison.
Julio Gabriel Diaz, 67, a Goleta resident who operated the Family Medical Clinic in Santa Barbara and was known to some “patients” as the “Candyman,” was sentenced by United States District Judge Cormac J. Carney.
Diaz was sentenced today after being found guilty in August by a federal jury. During the 2½-week trial, prosecutors showed that Diaz was a prolific writer of prescriptions for highly addictive and dangerous drugs and that he distributed the drugs outside of the usual course of professional practice and without a legitimate medical purpose.
In 2011, for example, Diaz wrote prescriptions for more than 1.7 million doses of painkillers. His “patients” typically paid cash and received prescriptions for powerful drugs that included opioids, anti-anxiety medications and muscle relaxants. Several doctors and pharmacists who testified during the trial said that they had never seen any doctor prescribe the combination and quantity of drugs prescribed by Diaz.
“Driven by financial gain, this doctor wrote a staggering number of prescriptions for people, many of whom were clearly abusing the drugs,” said United States Attorney Eileen M. Decker. “Diaz ignored family members who begged him to stop prescribing prescription pain medications to loved ones, and he ignored warnings from doctors and pharmacists that his ‘patients’ were abusing the drugs and suffering overdoses – in some cases fatally overdosing. Doctors who abuse their position of trust and violate their oath pose a significant threat to public health, and we will continue to target them when they commit acts that are not driven by a medical necessity.”
Diaz was found guilty of 79 counts of distribution of a controlled substance. Twenty-six of the charges relate to oxycodone (a drug often sold under the brand name OxyContin), 10 of the charges relate to methadone, seven of the counts relate to hydromorphone (a drug commonly sold under the brand name Dilaudid), 10 of the charges relate to fentanyl, 11 of the charges relate to hydrocodone (a drug often sold under the brand names Vicodin and Norco), 10 of the charges relate to alprazolam (a drug often sold under brand name Xanax), and five of the charges related to the distribution of various controlled substances to a minor.
According to the evidence presented at trial, doctors, nurses and other personnel with Santa Barbara Cottage Hospital wrote to the Medical Board of California and gave statements to investigators to complain about Diaz. Cottage Hospital doctors believed that Diaz posed such a threat that they prepared a spreadsheet documenting emergency room visits by patients who had been prescribed narcotics by Diaz.
“A medical doctor trusted by society, defendant [Diaz] stopped treating patients and became a drug dealer,” prosecutors wrote in a sentencing memorandum. “He turned young people into addicts and/or fueled the addictions of drug abusers.”
Diaz was arrested in this case in January 2012. After being free on bond for a time, he was taken into custody and has remained in custody since January 2014. After his arrest, the state of California revoked his license after finding that he provided incompetent and grossly negligent care.
The investigation into Diaz was conducted by the Drug Enforcement Administration and the Santa Barbara Police Department, which received the assistance of the California Medical Board.
Pediatric Nurse Sentenced to 80 Years for Sexual Exploitation of Children in His CareRead the Press Release
Assistant U.S. Attorney Alessandra Serano (619) 546-8104
NEWS RELEASE SUMMARY – December 7, 2015
SAN DIEGO, CA – Michael William Lutts, a 52-year-old foster parent and pediatric nurse, was sentenced in federal court today to the statutory maximum 80 years in prison for sexually exploiting a two-month-old premature boy and an 11-month-old girl who had been placed in his care in 2014.
During the sentencing hearing, U.S. District Judge John Houston called Lutts the “worst of the worst” and described his conduct as “horrific” and “worse than a mass murderer shooting 20 people” because the newborns he targeted “are the most fragile people to victimize.”
Before the sentence was handed down, Assistant U.S. Attorney Alessandra Serano urged Judge Houston to hand down a 65-year prison term –essentially life in prison considering the defendant’s age. “This defendant is a parent’s worst nightmare and a predator to society. He should never see the light of day. Rehabilitation would be futile.”
Judge Houston handed Lutts a sentence that was 15 years more than the prosecutor had asked for – saying he wanted to “send a message to others who conduct this activity under the cover of dark.” The judge said he would not recommend any psychological treatment for the defendant as the “taxpayers shouldn't waste their money on treatment.”
Lutts pleaded guilty in January, admitting to 15 instances in July and August of 2014 in which he photographed and videotaped the babies in sexually explicit situations at both his home and workplace. In one image, the defendant photographed his own exposed genitals beside the infant, who was still wearing his hospital bracelet. In some of the images and videos, the baby is crying as Lutts sexually abuses him. Lutts also admitted emailing sexually explicit images of children to others.
Lutts pleaded guilty to two counts of sexual exploitation of a minor and one count of distribution of child pornography. In addition to his custodial sentence, he was ordered to forfeit his College area home where most of the crimes occurred.
“This is one of most appalling, heart-wrenching cases I have seen in this district,” said U.S. Attorney Laura Duffy. “All child exploitation cases are heinous. But it’s a whole new level of depravity when the victims are babies in the care of a trusted nurse. One of these victims was a premature, two-month-old foster child who was alone in this world except for a foster parent who was supposed to provide a safe and loving environment. We will do everything in our power to protect our precious, defenseless children from sexual abuse and exploitation.”
“Lutts was trusted with the care of two infants who he sexually exploited and abused repeatedly. These infants suffered in silence, unable to speak for themselves, and unable tell others of the horror they were suffering,” said FBI Special Agent in Charge, Eric S. Birnbaum. “When this type of sexual exploitation takes place, the FBI and our law enforcement partners will aggressively pursue these sexual predators and bring them to justice. In doing so, we will give a voice to the most vulnerable members of our society.”
DEFENDANT Criminal Case No. 14CR2542-JAH
Michael William Lutts Age: 52 San Diego
SUMMARY OF CHARGES
Counts 1, 17: Sexual Exploitation of a Minor, in violation of 18 U.S.C. §2251(a)
Maximum Penalties: Thirty years in prison, mandatory minimum 15 years per count
Counts 16: Distribution of Child Pornography, in violation of 18 U.S.C. §2252(a)(2)
Maximum Penalties: Twenty years in prison, mandatory minimum 5 years
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Parkton Landscaper Sentenced to over 3 Years in Prison for Stealing from a ClientRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Jeffrey Poole, age 40, of Parkton, Maryland, today to 42 months in prison followed by three years of supervised release for bank fraud and aggravated identity theft arising from a seven year scheme to access a client’s bank account. Chief Judge Blake also entered an order requiring Poole to pay restitution of $160,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to his plea, Poole met the victim when he provided landscaping services. He helped set up the victim’s new computer for on-line banking and gained access to the victim’s personal identity and financial information. Shortly thereafter, Poole used the victim’s identity to establish a PayPal account for the victim, without the victim’s knowledge. Poole used the victim’s personal and financial information to link the victim’s PayPal account to the victim’s checking account, so that payments made with or money transferred from the victim’s PayPal account would be automatically drawn from the victim’s bank account.
From April 2007 through January 2014, Poole repeatedly logged onto the victim’s PayPal account and made purchases for himself. He also initiated money transfers from the victim’s PayPal account into his own PayPal account. He then transferred the victim’s funds to his own bank accounts.
As a result of the scheme, Poole fraudulently obtained or attempted to obtain over $244,000.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service for its work in the investigation and thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Oregon U.S. Attorney's Office Collects $9,015,581.57 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
PORTLAND, Ore. - Acting U.S. Attorney Billy J. Williams announced today that the District of Oregon collected $8,495,950.20 in criminal and civil actions in Fiscal Year 2015. This includes work that Oregon conducted with other U.S. Attorney’s Offices and components of the Department of Justice to collect $2,401,688.23 in cases pursued jointly with these offices.
Attorney General Loretta E. Lynch announced on December 3, 2015, that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23.1 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources and protecting the American people from exploitation and abuse,” said Attorney General Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
“The work done by the Asset Recovery and Money Laundering Division of the Oregon U.S. Attorney’s Office is critically important to the mission of the Department of Justice,” said Acting U.S. Attorney Billy Williams. “It handles thousands of cases annually, and through persistent investigations uncovers leads to hidden assets, successfully garnishes wages, and works out payment plans with cooperative civil and criminal debtors. This dedication results in the collection of millions of dollars for crime victims and protects scarce taxpayer resources each year.”
One of the larger recoveries in the District of Oregon last year was in United States v. Rachel Lee, a “sweetheart swindle” case in which a family of swindlers executed a complex, decade-long $15.5 million fraud and money laundering scheme against a vulnerable timber heir. After gaining his confidence (and access to his financial accounts), the defendants callously spent the victim’s assets on a luxury lifestyle. Over $1.9 million was recovered for the victim during the last fiscal year, and rigorous recovery efforts in the case continue.
Another large recovery came in United States v. Schrader, a case in which the defendant, a senior vice president at his company, submitted over $1.4 million in fraudulent expense reports to his accounting department. To date, over $701,000 has been recovered for the victim, largely from the sale of rental properties the defendant owned. This recovery came despite the defendant’s attempts to thwart the government’s ability to sell and distribute certain property proceeds to his victim. The day after defendant’s sentencing, his attorneys contacted prosecutors to inform them that one of the properties was owned equally by the defendant and an associate, and to request that only fifty percent of the sale proceeds be applied to the defendant’s restitution obligation. After confirming that the defendant’s associate was not listed in county property records, prosecutors refused the request, and later learned from the defendant’s associate that the defendant had approached him just days earlier to ask him to sign and backdate an “ownership contract.” The U.S. Attorney’s Office was ultimately able to return the full proceeds from the sale of the property to the defendant’s victim.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the District of Oregon, working with partner agencies and divisions, collected $3,012,629.00 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Asset Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. During FY 2015, $2,492,997.63 was returned to victims through the Asset Forfeiture Fund.
Operator of Inland Empire Loan Modification Scam that Targeted Distressed Homeowners Sentenced to 18 Years in Federal PrisonRead the Press Release
RIVERSIDE, California – The founder and co-owner of a Rancho Cucamonga business was sentenced today to 18 years in federal prison for orchestrating a scheme that offered bogus loan modification programs to thousands of financially distressed homeowners who lost more than $7 million when they paid for services that were never provided.
Andrea Ramirez, 47, of Rancho Cucamonga, was sentenced today by United States District Judge Virginia A. Phillips, who also ordered the defendant to pay $6,764,743 in restitution.
Ramirez was the organizer of a telemarketing operation known under a series of names – including 21st Century Legal Services, Inc. – that bilked more than 4,000 homeowners across the nation, many of whom lost their homes to foreclosure. Ramirez was sentenced today after pleading guilty to one count of conspiracy to commit mail fraud and wire fraud.
“This fraudulent company purposely targeted homeowners who were extremely vulnerable because they were facing foreclosure,” said United States Attorney Eileen M. Decker. “Ramirez and her co-defendants made false promises to desperate homeowners, often took the last of their money and then abandoned them. Her contempt for her victims will put her in federal prison for nearly two decades.”
Previously in this case, the other co-owner of 21st Century – Christopher Paul George, 45, of Rancho Cucamonga, was sentenced by Judge Phillips to 20 years in federal prison.
A total of 11 defendants linked to 21st Century have been convicted of federal fraud charges as a result of an investigation conducted by the Federal Bureau of Investigation; IRS - Criminal Investigation; the United States Postal Inspection Service; the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); and the Federal Housing Finance Agency, Office of Inspector General.
“As the ringleader in a scheme to dupe thousands of distressed homeowners out of their last dollar at the height of the financial crisis, Andrea Ramirez earned the next 18 years in federal prison, which she should use to reflect on her victims,” said Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
During a 15-month period that began in the middle of 2008, Ramirez operated 21st Century, which defrauded financially distressed homeowners by making false promises and guarantees regarding 21st Century’s ability to negotiate loan modifications for homeowners. Employees of 21st Century made numerous misrepresentations to victims during the course of the scheme, including falsely telling victims that 21st Century was operating a loan modification program sponsored by the United States government. Victims were generally instructed to stop communicating with their mortgage lenders and to cease making their mortgage payments.
21st Century employees contacted distressed homeowners through cold calls, newspaper ads and mailings. The company also controlled websites that advertised loan modification services. Once they contacted the distressed homeowners, 21st Century employees often falsely told clients that the company was operating through a federal government program, that they would be able to obtain new mortgages with specific interest rates and reduced payments, and that attorneys would negotiate loan modifications with their lenders. 21st Century employees regularly instructed financially distressed homeowners to cease making mortgage payments to their lenders and to cut off all contact with their lenders because they were being represented by 21st Century. On some occasions, 21st Century employees told homeowners that 21st Century was using the fees paid by the homeowner to make mortgage payments, when Ramirez, George and their co-defendants simply were pocketing the homeowners’ money.
After federal authorities executed a search warrant at 21st Century, Ramirez relocated 21st Century’s offices, renamed the company and made it appear it was operating out of Las Vegas, Nevada.
“Fraudulent mortgage fraud schemes affect consumers at the most basic level, jeopardizing their ability to retain ownership of their homes,” said Robert Wemyss, Inspector in Charge of the U.S. Postal Inspection Service – Los Angeles Division. “The U.S. Postal Inspection Service will continue to investigate these crimes to protect consumers and our nation's mail system from being used for illegal or dangerous purposes.”
Special Agent in Charge Erick Martinez of IRS-Criminal Investigation of the Los Angeles Field Office stated: “Ms. Ramirez took advantage of unsuspecting homeowners hoping to keep a roof over their heads. Hopefully she will now understand that her irresponsible actions have real consequences.”
In addition to Ramirez and George, nine other defendants have been convicted for their roles in the 21st Century scam. They are:
• Crystal Taiwana Buck, 40, of Long Beach, who persuaded numerous victims to pay fees to 21st Century, was sentenced to five years in prison;
• Albert DiRoberto, 62, of Fullerton, who handled both sales and marketing – which included making a commercial for 21st Century – was sentenced to five years in prison;
• Yadira Garcia Padilla, 38, of Rancho Cucamonga – who, among other things, posted bogus positive reviews about 21st Century on the Internet – was sentenced to four years in prison;
• Michael Bruce Bates, of Moreno Valley, was sentenced to one year and one day in prison;
• Michael Lewis Parker, of Pomona, was sentenced to six years in prison;
• Catalina Deleon, of Glendora, is scheduled to be sentenced on December 14;
• Hamid Reza Shalviri, of Montebello, is scheduled to be sentenced on Thursday, December 10;
• Mindy Sue Holt, of San Bernardino, was sentenced to 18 months in prison; and
• Iris Melissa Pelayo, of Upland, was sentenced to four years in prison.
O.C. Firefighter Sentenced to over 11 Years in Federal Prison for Sending Money Abroad to Produce Sexually Explicit Photos of GirlsRead the Press Release
SANTA ANA, California – A commercial firefighter who resides in Huntington Beach has been sentenced to 135 months in federal prison for attempting to produce child pornography by sending money to the Philippines to purchase a camera to take sexually explicit photos of a 13-year-old girl and her friend.
John McArthur, 57, was sentenced Friday afternoon by United States District Judge Josephine L. Staton.
McArthur pleaded guilty in May to one count of attempted production of child pornography.
“This defendant’s deviant crime sought to prey on the most vulnerable victims in society – children,” said United States Attorney Eileen M. Decker. “As demonstrated by the sentence that will send Mr. McArthur to prison for well over a decade, there are lengthy prison sentences associated with child pornography crimes like this defendant’s, and these penalties are designed to punish offenders and serve as a warning to others who might consider producing, trafficking or possessing child pornography.”
McArthur had online conversations with a person he believed was a 13-year-old girl in the Philippines in January 2012. During those online conversations, McArthur agreed to send money for the purchase of a camera that would be used to take sexually explicit photographs of the girl and an 11-year-old friend. McArthur later went to a Western Union agent in Wilmington to transfer the money to the 13-year-old girl.
At the time, McArthur was not aware that the person posing as the 13-year-old girl was Robert Oliver Clark, 75, another United States citizen who was residing in the Philippines. Clark was arrested in September 2014 in a related case, and he has been sentenced to 97 months in federal prison for possession of child pornography. In his case, Clark admitted that he “possessed, in his computer hard drive and in his email accounts, 5,443 images and 53 videos of child pornography, including 43 images and 1 video portraying sadistic or masochistic conduct and 16 images portraying toddlers.”
During the investigation, law enforcement authorities discovered that McArthur received hundreds of images and several videos of child pornography through his email accounts.
The investigation into McArthur and Clark was conducted by the United States Postal Inspection Service, which received substantial assistance from the U.S. Department of State, Diplomatic Security Service; U.S. Immigration and Customs Enforcement's Homeland Security Investigations; and the Los Angeles Joint Regional Intelligence Center.
“Protecting children from crimes of sexual abuse and exploitation is a priority for the U.S. Postal Inspection Service,” stated Robert Wemyss, Inspector in Charge for the Los Angeles Division. “I’m proud of the work of the Postal Inspection Service and our investigative partners to bring child predators to justice. U.S. Postal Inspectors have investigated these crimes for more than a century. While the predators’ use of technology has evolved, the core harm has not changed: a child’s lost innocence. We will not lose sight of this, and remain steadfast in our efforts to investigate, apprehend, and assist in the prosecution of those who seek to exploit children via the U.S. Mail, wherever in the world they may be.”
National City Man Sentenced to 55 Months in Prison for Robbing Imperial Beach Credit UnionRead the Press Release
Assistant U. S. Attorney Matthew Brehm (619) 546-8983
NEWS RELEASE SUMMARY – December 7, 2015
SAN DIEGO – Tulio David Gasca was sentenced today by U.S. District Judge John Houston to 55 months in prison for robbing a North Island Credit Union branch and then leading sheriff’s deputies on a 40-minute foot chase.
In his plea agreement, Gasca, 24, admitted that on March 5, 2015, at approximately 12:41 p.m., he entered the branch in Imperial Beach wearing a mask and approached a teller and said, “Give me your money!” Gasca took $4,210 and ran from the credit union.
An off-duty correctional officer chased after Gasca, who ran into an apartment complex across the street from the credit union, through its courtyard, and then out a gate into an alley. The correctional officer continued to pursue Gasca but lost sight of him. A canine unit responded to the courtyard and began to track Gasca.
Before the canine unit found the defendant, a San Diego County Sheriff’s helicopter arrived and its crew spotted Gasca a few blocks away from the credit union and apartment complex. A responding sheriff’s deputy attempted to stop Gasca. Gasca wrenched himself free from the deputy’s hold and ran from him.
When the deputy caught up to Gasca and tried to stun him with a taser, Gasca physically resisted, injuring the deputy. Gasca then fled toward 13th Street. At approximately 1:25 p.m., deputies found Gasca hiding in the backyard of a 13th Street residence, where they arrested him. The stolen money was not recovered at that time.
On March 6, 2015, a resident on 13th Street notified law enforcement that she found a large amount of currency when cleaning shelves located in her backyard, where Gasca was found the day before. Deputies returned to her home and recovered $3,862 and an email addressed to Gasca from beneath a shelf in the backyard.
DEFENDANT Case Number: 15CR0731-JAH
Tulio David Gasca Age: 24
SUMMARY OF CHARGE
Bank Robbery, in violation of Title 18, United States Code, Section 2113(a)
Maximum penalty: 20 years in prison
AGENCY
Federal Bureau of Investigation
San Diego County Sheriff’s Department
Naples Man Sentenced to 10 Years for Receiving and Distributing Child PornographyRead the Press Release
Fort Myers, Florida – Senior U.S. District Judge John E. Steele today sentenced Sean F. Desa (29, Naples) to 10 years in federal prison for receiving and distributing child pornography. The Court also ordered him to serve a life term of supervision and to register as a sex offender following his release from prison. He pleaded guilty on September 14, 2015.
According to court documents, Desa used an Internet file sharing program to receive and distribute child pornography. After a search warrant was executed at his residence, Desa was found to be in possession of hundreds of child pornography videos and images, including some depicting children in bondage.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Chief Assistant United States Attorney Jesus M. Casas.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Mother and son plead guilty to Federal heroin chargesRead the Press Release
HUNTINGTON, W.Va. – A mother and son who sold heroin from their home in Culloden, West Virginia, in 2014 and 2015 entered guilty pleas today in federal court in Huntington to separate drug charges, announced U.S. Attorney Booth Goodwin. Toni Lynn Cremeans, 41, pleaded guilty to distributing heroin, and her son, Shawn Paul Cremeans, 24, pleaded guilty to aiding and abetting the distribution of heroin.
From January of 2014 to May of 2015, Toni Cremeans, her husband, Sanford Dale Cremeans, and their son, Shawn Cremeans, conspired to sell heroin from their residence at 2246 3rd Street in Culloden. During that time period, Toni Cremeans frequently transported heroin to their residence where she and others would prepare it for distribution.
On December 2, 2014, a confidential informant contacted Shawn Cremeans to arrange a heroin purchase. The informant traveled to the Cremeans’ residence and met with Shawn and Sanford Cremeans while they waited for Toni Cremeans to arrive with additional heroin. Once Toni Cremeans arrived, the informant paid Shawn Cremeans and received half a gram of heroin from Sanford Cremeans. Toni Cremeans also admitted that she met with an informant at her residence on December 9, 2014, and sold the informant half a gram of heroin. Both Toni and Shawn Cremeans admitted that they were responsible for distributing a total of between 80 and 100 grams of heroin.
Toni Cremeans faces up to 20 years in federal prison and a $1 million fine when she is sentenced in federal court in Huntington on March 28, 2016. Shawn Cremeans also faces up to 20 years in federal prison and a $1 million fine when he is sentenced in federal court in Huntington on March 7, 2016.
Sanford Cremeans previously pleaded guilty in October to distributing heroin and is scheduled to be sentenced in federal court in Huntington on January 25, 2016.
The Huntington FBI Drug Task Force and Cabell County Sheriff’s Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Modesto Man Sentenced to 2 Years in Prison for Filing False Tax Returns Seeking More Than $620,000 in RefundsRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neil sentenced Mark Threet, 52, of Modesto, today to two years in prison for making a false claim for a tax refund, United States Attorney Benjamin B. Wagner announced.
According to court documents, Threet filed more than 850 false tax returns for himself and others for the tax years 2008 to 2010. Each return included false statements regarding income, tax credits, and refund amounts. In sum, the returns claimed more than $620,000 for these false tax refunds. He received approximately $270,000, and has been ordered to pay restitution.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Patrick R. Delahunty is prosecuting the case.
Milwaukee Carjacker Sentenced to 50 Years ImprisonmentRead the Press Release
Acting United States Attorney Gregory J. Haanstad announced today that Milwaukee resident Grover Ferguson (age:18) was sentenced to 50 years of imprisonment, to be followed by 5 years of supervised release, for committing a carjacking on April 21, 2015, during which he shot the vehicle’s owner.
On August 25, 2015, Ferguson pleaded guilty to one count of armed motor vehicle robbery, in violation of 18 U.S.C. § 2119(2), and one count of discharging a firearm during a crime of violence, in violation of 18 U.S.C. § 924(c). According to the plea agreement, Ferguson approached a parked vehicle on April 21, 2015, pointed a revolver at the owner who was in the driver’s seat, and demanded the keys. Ferguson then fired several shots from the revolver, hitting the owner in the face and body. Ferguson drove away in the vehicle, but was captured the following day after leading Milwaukee Police officers on a high-speed chase.
At the sentencing hearing, U.S. District Judge Rudolph T. Randa emphasized the violent nature of the crime committed by Ferguson.
“Armed carjackings are a significant threat to public safety and we are going to continue to vigorously pursue cases like this as a part of our strategy to combat violent crime in this district,” Haanstad commented. “Carjackers who are prosecuted in federal court face decades in prison without the potential for parole.”
“As a result of this joint local and federal investigation, another violent individual has been removed from the streets of Milwaukee,” stated ATF-St. Paul Field Division Special Agent in Charge Jim Modzelewski. “ATF is committed to combating firearms violence and will continue to partner with the Milwaukee Police Department and utilize all available resources to increase the safety in our communities”.
Milwaukee Police Chief Edward Flynn added “We are grateful the Judge imposed a sentence commensurate with the crime that was committed and are hopeful this measure of justice is a comfort to the family and victim.”
This case was investigated by law enforcement officers from the Milwaukee Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted by Assistant United States Attorney Benjamin W. Proctor.
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Mayes County Felon Sentenced to 15 Years for Possessing Multiple Firearms and over 1,000 Rounds of AmmunitionRead the Press Release
TULSA, Okla.–Roy James Hudson, 29, of Mayes County, Okla., was sentenced by United States District Court Judge Claire V. Eagan to 15 years in prison for being a felon in possession of firearms and ammunition, announced United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
On October 10, 2014, Mayes County Sheriff’s deputies searched Hudson’s home pursuant to a search warrant. The deputies found 12 firearms and over 1,000 rounds of ammunition. Nine of the recovered firearms had been stolen in a residential burglary earlier in the week. Two of the firearms, a shotgun and a rifle, had been shortened below the legal limit. Hudson had multiple prior felony convictions including three for burglary and one for escape.
This case was investigated by the Mayes County Sheriff’s Office, the Pryor Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Eric O. Johnston prosecuted on behalf of the United States.
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Man to Federal Prison for Iowa Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced December 3, 2015, to more than six years in federal prison.
Joe Edward Leal, 49, from Hartley, Iowa, received the prison term after a September 1, 2015, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Leal admitted his involvement in a conspiracy from about July 2013 and continuing through May 2014 that distributed more than 50 grams of actual (pure) methamphetamine. On three occasions in January and February 2014, Leal distributed over 53 grams of actual (pure) methamphetamine to individuals cooperating with law enforcement.
Leal was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Leal was sentenced to 81 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Leal is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Sheldon, Iowa Police Department, Iowa Great Lakes Drug Task Force, and Iowa Division of Criminalistics Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-4005.
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Man Sentenced for Endangered Sea Turtle ViolationRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez on December 4, 2015 sentenced Kisean Anthony Testamark, 44, also known as Sean Anthony Penn, of Coki Point, St. Thomas, to 45 days in prison and five years of supervised release for possession and transportation of a green sea turtle (Chelonia mydas), United States Attorney Ronald W. Sharpe announced. Judge Gomez also ordered Penn to perform 200 hours of community service.
On July 29, 2015, Penn pleaded guilty to possession and transportation of the green sea turtle, which is an endangered species under the Endangered Species Act. Court records show that on September 16, 2013, the U.S. Customs and Border Protection’s Marine Interdiction Unit was conducting routine border security patrol when Penn was observed in a small boat. The agents attempted to intercept Penn, but he maneuvered his boat close to the shoreline in an area where the agents’ vessel could not enter. Subsequently, after Penn complied with the agents’ directive and pulled his boat alongside the agents’ vessel, the agents saw a red cooler in Penn’s boat. When asked what was in the cooler, Penn dumped the contents of the cooler into the ocean. A diver from Coral World was recruited to search the area where Penn dumped his cooler, and recovered a decapitated green sea turtle with its shell removed.
This case was investigated by the National Oceanic and Atmospheric Administration (NOAA) Fisheries Office of Law Enforcement, the United States Customs and Border Protection, the Virgin Islands Department of Planning and Natural Resources, and the Virgin Islands Police Department. The case was prosecuted by Assistant United States Attorney Nelson L. Jones.
Los Angeles and Sacramento Men Sentenced to Two Years in Prison for Trafficking in Counterfeit Credit CardsRead the Press Release
FRESNO, Calif. — Gevorg Meroyan, 35, of Los Angeles, was sentenced today by United States District Judge Lawrence J. O'Neill to two years in prison for conspiracy to traffic in counterfeit credit cards and credit card fraud, United States Attorney Benjamin B. Wagner announced.
On November 16, 2015, co-defendant David Manukyan, 39, of Sacramento, was sentenced by Judge O’Neill to serve one year and one day in prison.
Both defendants pleaded guilty in July 2015. According to court documents, Meroyan conspired from 2009 to 2011 to produce, use, and traffic in counterfeit credit cards from the Los Angeles area to Sacramento. In 2009, Meroyan and Manukyan were caught in Fresno with 42 counterfeit cards bearing false names and with computer and other electronic equipment that can be used to manufacture counterfeit credit cards. In 2011, Meroyan was arrested in Los Angeles after attempting to buy auto parts with a counterfeit credit card.
This case was the product of an investigation by the Federal Bureau of Investigation, Fresno County Sheriff, and California Highway Patrol. Assistant United States Attorney Matthew G. Morris prosecuted the case.
Meroyan was ordered to surrender to the Bureau of Prisons on February 8, 2016, to begin serving his sentence. Manukyan was previously ordered to surrender to the Bureau of Prisons on January 5, 2016, to begin his sentence.
Local Prosecutor Becomes Commanding General of Army Reserve Command Supporting Multi-State RegionRead the Press Release
CEDAR RAPIDS, IA – Assistant United States Attorney, and Army Reserve Major General, Patrick J. Reinert, from Cedar Rapids, recently became the commanding general of the 88th Regional Support Command (RSC) during a change of command ceremony.
The 88th RSC, headquartered on Fort McCoy, Wisconsin, provides services and base operations support to more than 55,000 Army Reserve soldiers, civilians and families serving in 633 units at 278 sites dispersed across 19 states in the northern United States from the Ohio River Valley to the Pacific Coast.
Key services provided by the command include human resources, medical administration, funding, physical security, environmental compliance, training areas, safety, force management, equipment maintenance and storage, and facility management.
Reinert took command of the 88th RSC on December 4th. He acknowledged the complex world we live in and the necessity of having an Army Reserve that is ready to answer the nation’s call whenever needed. “This command is central to creating and sustaining readiness,” said General Reinert. “We are a critical component – and I know we are up to the challenge.”
“We greatly appreciate the values, leadership and unique skills all of our National Guard and Reserve service members bring to the Northern District of Iowa’s United States Attorney’s Office and the Department of Justice,” United States Attorney Kevin W. Techau offered. He also noted, “We stand proudly with them as they answer our nation’s call to defend our way of life. Their personal sacrifices are essential to the strength of our nation. General Reinert is the epitome of that service and sacrifice. He is a tremendous leader. ”
Reinert has proudly served the nation for more than 30 years as a commissioned officer. His most recent assignments have included commander of the U.S. Army Reserve Legal Command, commanding General of the Rule of Law Field Force in Afghanistan, and Commanding General of Combined Joint Inter-Agency Task Force 435 in Afghanistan.
In his civilian capacity, Reinert is the lead Organized Crime Drug Enforcement Task Force Attorney for the United States Attorney’s Office located in Cedar Rapids, and has been with that office for over 25 years.
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Local Man Gets 10 Years for Synthetic Narcotics TraffickingRead the Press Release
CORPUS CHRISTI, Texas - A 28-year-old residence of Corpus Christi had been ordered to federal prison following his convictions of possessing with the intent to distribute a synthetic cannabinoid and for being a felon in possession of a firearm, announced U.S. Attorney Kenneth Magidson. Abel Martinez pleaded guilty Sept. 15, 2015.
Today, Senior U.S. District Judge Haden Head sentenced Martinez to 120 months for the synthetic narcotics conviction and 120 months for the firearms charge. The sentences will be served concurrently and will be followed by four years of supervised release. The court also ordered a fine in the amount of $6,500. At the hearing, additional testimony was presented by expert witnesses from the Drug Enforcement Administration (DEA) including how the DEA handles newly emerging synthetic narcotics, the adverse effects of those substance, and imminent hazard they present to the public safety. In handing down the sentence on the synthetic narcotics count, the court upwardly departed and acknowledged to significant danger of synthetic narcotics, specifically the packaging claiming to be "legal" and the appeal to children with flavors such as "bubble gum.”
Martinez was arrested June 3, 2015. At the time of his arrest, law enforcement officers seized an SKS assault rifle, two loaded handguns, a stolen ballistic vest and approximately 700 packets of synthetic narcotics (aka “K2” or “Spice”). Laboratory analysis confirmed the presence of an emergency scheduled substance, AB-CHMINACA and 5F-AMB, controlled under the Controlled Substance Analog Act.
In federal custody since his arrest, Martinez will remain there pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
The investigation was part of Operation Rusty Hook that was a coordinated effort by federal, state and local law enforcement to identify violent offenders, stop gun violence and protect the community. The Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, Corpus Christi Police Department Gang Unit and the Texas Department of Public Safety conducted the investigation.
Assistant U.S. Attorney Lance Watt is prosecuting the case.
Leon Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that GEORGE WILLIAM RUSSELL, age 38, of Leon, Oklahoma, pled guilty to DISTRIBUTION OF METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
A Criminal Complaint filed in October, 2015, alleged that on or about May 29, 2015, within the Eastern District of Oklahoma, GEORGE WILLIAM RUSSELL did knowingly and intentionally commit the crime of Distribution of a Controlled Substance. The defendant was Indicted on November 3, 2015.
The charge arose from a joint investigation by the Ardmore Police Department, Carter County Sheriff’s Department and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not less than up to 20 years imprisonment, up to $1,000,000.00 fine or both.
Assistant United States Attorney Melody Nelson represented the United States.
Justice Department Opens Pattern or Practice Investigation into the Chicago Police DepartmentRead the Press Release
Attorney General Loretta E. Lynch announced today that the Justice Department has opened a civil pattern or practice investigation into Chicago Police Department (CPD), pursuant to the Violent Crime Control and Law Enforcement Act of 1994. The department’s investigation of CPD will seek to determine whether there are systemic violations of the Constitution or federal law by officers of CPD. The investigation will focus on CPD’s use of force, including racial, ethnic and other disparities in use of force, and its systems of accountability.
“Building trust between law enforcement officers and the communities they serve is one of my highest priorities as Attorney General,” said Attorney General Lynch. “The Department of Justice intends to do everything we can to foster those bonds and create safer and fairer communities across the country. And regardless of the findings in this investigation, we will seek to work with local officials, residents, and law enforcement officers alike to ensure that the people of Chicago have the world-class police department they deserve.”
During the course of the investigation, the Justice Department will consider all relevant information, particularly the CPD’s policies, training and practices related to using, reporting, investigating and reviewing force. The Justice Department will also look into CPD’s practices related to disciplinary and other corrective action; and its practices related to intake and handling of allegations of misconduct.
"The Justice Department's investigation – opened with currently available, preliminary information – seeks to determine whether the Chicago Police Department's use of force practices and accountability systems comply with constitutional standards necessary to effectively serve its community and productively support its police officers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. ”In the coming months, we look forward to engaging directly with all stakeholders in Chicago – including the city's residents, law enforcement officers and public officials – as part of our fact-driven and thorough review.”
“Today's launch of this investigation marks an important and positive opportunity for Chicago and its police department," said U.S. Attorney Zachary T. Fardon for the Northern District of Illinois. “The U.S. Attorney's Office is fully committed to doing everything in our power, in partnership with our colleagues in the Civil Rights Division, to ensure that this process is a success.”
As part of the investigation the department will gather information directly from police officers and local officials; community members, and other criminal justice stake holders, such as public defenders and prosecutors. The department will also observe officer activities through ride-alongs and other means; as well as review documents and specific incidents that are relevant to the investigation. Pattern or practice investigations of police departments do not assess individual cases for potential criminal violations; instead they look at incidents for patterns created by systems and practices.
The Justice Department has taken similar steps involving a variety of state and local law enforcement agencies, both large and small, in jurisdictions throughout the United States. When investigations result in findings of systemic violations of federal law and the Constitution they have in many instances resulted in comprehensive, court-overseen agreements to fundamentally change the law enforcement agency’s police practices. When the department’s investigations do not result in findings of violations of federal law and the Constitution the department will close the investigation without an agreement.
This matter is being investigated by attorneys and staff from the Civil Rights Division with assistance from the U.S. Attorney’s Office for the Northern District of Illinois. They will be assisted by experienced law enforcement experts. The department welcomes the views of anyone wishing to provide relevant information.
Police Reform and Accountability Fact Sheet
How P&P Investigations Work
Justice Department Announces New Accreditation Policies to Advance Forensic ScienceRead the Press Release
Deputy Attorney General Sally Quillian Yates announced today that the Justice Department will, within the next five years, require department-run forensic labs to obtain and maintain accreditation and require all department prosecutors to use accredited labs to process forensic evidence when practicable. Additionally, the department has decided to use its grant funding mechanisms to encourage other labs around the country to pursue accreditation.
The new policies arose out of recommendations made by the National Commission of Forensic Science (NCFS), which was established to advance the field of forensic science and make suggestions to the Attorney General on how to ensure that reliable and scientifically valid evidence is used when solving crimes. The Attorney General made the decision to implement several of the commission’s recommendations last week and the Deputy Attorney General, who serves as co-chair of the NCFS, announced their adoption at a meeting of the commission today.
“The department believes that accreditation is one of the most important tools for ensuring that forensic science is practiced in a reliable, scientifically rigorous way,” said Deputy Attorney General Yates. “Accreditation provides valuable oversight by ensuring that someone outside the participating laboratory has confirmed that the lab is following their required procedures. We support accreditation and we want to expand accreditation as widely as possible.”
Though department forensic labs at ATF, DEA and FBI are already accredited, the new policy will ensure that, by 2020, those labs will have to maintain that accreditation. Also by 2020, department prosecutors will be required to use accredited forensic labs when it is practicable. The Executive Office for U.S. Attorneys (EOUSA) has been directed to develop guidance that will ensure the successful implementation of this new policy in the field.
The new policy does not apply to digital forensic labs. Instead, the Deputy Attorney General has asked the NCFS to develop separate recommendations on accrediting of labs that conduct digital forensic work, given the difference in the practices of forensic analysis of digital evidence.
As a result of the commission’s recommendations, the Attorney General also has directed two changes to the department’s grant funding in an effort to encourage and support state and local forensic labs in the process of becoming accredited. First, solicitations for both Edward Byrne Memorial Justice Assistance Grant funding and Paul Coverdell Forensic Science Improvement Grant funding will be re-drafted to make clear that applicants can use this money to seek accreditation, because labs have not always used these funds to seek accreditation. Second, relevant discretionary grant programs at the Office of Justice Programs will be modified to give preferences to labs that will use the money to obtain accreditation. These applicants will get a “plus factor,” increasing their likelihood of getting the money they need.
Accreditation assesses a forensic lab’s capacity to generate and interpret results in a particular forensic discipline and helps to ensure an ongoing compliance to industry and applicable international standards. An independent accrediting body assesses and monitors the quality of the lab’s management system by examining factors that include staff competence; method validation; appropriateness of test methods; calibration and maintenance of test equipment; testing environment and quality assurance data. Accreditation is one way to increase the quality of work and reducing the likelihood of errors.
Based on further recommendations by the NCFS, the Deputy Attorney General also announced that the department will help to establish an interagency working group aimed at bringing higher levels of scientific rigor and reliability to the field of medico-legal death investigation (MDI). The department has asked the White House’s Office of Science and Technology Policy to help convene the working group, which would focus on a broad range of MDI issues. Though the department does not conduct its own MDI– which is typically handled by state and local agencies – it believes an interagency group will help accomplish the goals of the NCFS in strengthening the MDI field.
Jury Finds Oklahoma City Man Guilty of 17 Counts of Theft of Mail by a Postal Service EmployeeRead the Press Release
Oklahoma City, Oklahoma – On Thursday, December 3, 2015, a federal jury found JEFFREY LEMON, JR., 30, from Oklahoma City, Oklahoma, guilty on 17 counts of theft of mail matter by a postal service employee, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to evidence at trial, Lemon was an employee at the U.S. Post Office in Warr Acres, Oklahoma. Evidence showed that between March 2015 and June 2015, Lemon stole money orders deposited in the mail by Postal Service customers, and cashed them for his benefit. The trial lasted for three days, and the jury deliberated for approximately 3 hours before finding Lemon guilty.
At sentencing, Lemon faces up to 5 years in prison for each of the guilty counts. A sentencing date will be set by the court. Reference is made to the court record for further information.
This case was the result of an investigation by the United States Postal Service Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Jessica L. Perry and Assistant U.S. Attorney Brandon Hale.
Junction City Man Re-Sentenced in Cocaine Trafficking CaseRead the Press Release
TOPEKA, KAN. – A Junction City man was sentenced Monday to 30 years in federal prison for trafficking cocaine in Junction City and Manhattan, U.S. Attorney Barry Grissom said today.
Albert Dwayne Banks, 33, Junction, City, Kan. was convicted on count one (conspiracy to distribute more than 280 grams of crack cocaine), count eight (distributing crack cocaine), count 11 (distribution crack cocaine), count 12 (distributing crack cocaine), count 15 (distributing crack cocaine) count 16 (distributing crack cocaine) and count 17 (distributing crack cocaine).
Last month, Banks was sentenced to life. At Monday’s hearing, U.S. District Judge Daniel D. Crabtree corrected the sentence by reducing it to 30 years. He said he changed the sentence based on his consideration of aggravating factors in the sentence.
Banks was convicted in June in a jury trial in Kansas City. During trial, prosecutors presented evidence that in late 2012 and early 2013 agents of Kansas Bureau of Investigation and detectives from the Junction City Police Department investigated a large crack cocaine trafficking organization in Junction City and Manhattan. The organization was led by defendants Albert Banks and co-defendant Anthony Thompson, who acquired drugs from three different suppliers and sold the drugs to distributors who resold them on the streets.
Grissom commended the Kansas Bureau of Investigation, the Junction City Police Department, the Geary County Attorney’s Office and Assistant U.S. Attorney Tony Mattivi for their work on the case.
Former Secret Service Agent Sentenced to 71 Months in Scheme Related to Silk Road InvestigationRead the Press Release
A former Secret Service special agent who had been a member of the Baltimore Silk Road Task Force was sentenced to 71 months in prison today on charges of money laundering and obstruction of justice.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Brian Stretch of the Northern District of California, Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI), Special Agent in Charge David J. Johnson of FBI’s San Francisco Division, Special Agent in Charge Michael P. Tompkins of the Department of Justice Office of the Inspector General’s Washington, D.C., Field Office and Special Agent in Charge James E. Ward of the Department of Homeland Security Office of the Inspector General’s Atlanta Field Office made the announcement.
U.S. District Judge Richard Seeborg of the Northern District of California sentenced Shaun W. Bridges, 33, of Laurel, Maryland, in San Francisco following his guilty plea to one count of money laundering and one count of obstructing justice. Judge Seeborg also ordered Bridges to forfeit $651,000.
Between 2012 and 2014, Bridges was assigned to the Baltimore Silk Road Task Force, a multi-agency group investigating illegal activity on the Silk Road, a covert online marketplace for illicit goods, primarily drugs. Bridges’s responsibilities included, among other things, conducting forensic computer investigations in an effort to locate, identify and prosecute targets, including Ross Ulbricht, aka Dread Pirate Roberts, who ran the Silk Road from the Northern District of California.
As part of his guilty plea, Bridges admitted to using account information that he obtained during the January 2013 search and arrest of Curtis Green, a customer support representative on Silk Road, to reset passwords and pins of various accounts on Silk Road and move approximately 20,000 bitcoin, at the time worth approximately $350,000, from those accounts into a bitcoin “wallet” that Bridges controlled. When Ulbricht learned that Green’s access to Silk Road had been used to transfer bitcoin from Silk Road into a wallet, Ulbricht cancelled Green’s administrator access to Silk Road and attempted to have him killed in retaliation for the bitcoin thefts.
Bridges admitted that he moved the stolen bitcoin into an account at Mt. Gox, an online digital currency exchange based in Japan, and that between March and May 2015, he liquidated the bitcoin into $820,000 in U.S. currency and had the funds transferred to a personal investment account in the United States. In June 2014, Bridges transferred money from the investment account into a personal bank account that he shared with another person.
Bridges also admitted that he used Green’s access to Silk Road to steal bitcoin from the site, thereby limiting Green’s access to further the Baltimore grand jury investigation of Ulbricht and Silk Road. Additionally, Bridges admitted that he made multiple false and misleading statements to both prosecutors and investigators in connection with the San Francisco grand jury investigation into his own illegal acts.
Bridges is the second of two federal agents to be sentenced in connection with the Baltimore Silk Road Task Force’s investigation into the Silk Road. Carl M. Force, 46, of Baltimore, was a special agent with the Drug Enforcement Administration who pleaded guilty on July 1, 2015, to a three-count information charging him with money laundering with predicates of wire fraud and theft of government property, obstruction of justice and extortion under color of official right, related to his theft and diversion of more than $700,000 in digital currency to which he gained control as part of undercover role on the Baltimore Silk Road Task Force. On Oct. 19, 2015, Judge Seeborg sentenced Force to 78 months in prison.
The FBI’s San Francisco Division, the IRS-CI San Francisco Division, the Department of Justice Office of the Inspector General and the Department of Homeland Security Office of the Inspector General in Washington, D.C., are investigating the case. Assistant U.S. Attorneys Kathryn Haun and William Frentzen of the Northern District of California and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section are prosecuting the case. Assistant U.S. Attorney Arvon Perteet of the Northern District of California handled the asset forfeiture aspects of the case.
Former Secret Service Agent Sentenced to 71 Months’ Imprisonment in Scheme Related to Silk Road InvestigationRead the Press Release
SAN FRANCISCO – A former Secret Service special agent who had been a member of the Baltimore Silk Road Task Force was sentenced to prison on charges of money laundering and obstruction of justice announced Acting U.S. Attorney Brian Stretch, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI), Special Agent in Charge David J. Johnson, Special Agent in Charge Michael P. Tompkins of the Department of Justice Office of the Inspector General’s Washington, D.C., Field Office, and Special Agent in Charge James E. Ward of the Department of Homeland Security-Office of the Inspector General’s Atlanta Field Office.
This afternoon, U.S. District Judge Richard Seeborg sentenced Shaun W. Bridges, 33, of Laurel, Maryland, to 71 months in prison following his guilty plea to one count of money laundering and one count of obstructing justice. Bridges was also ordered to forfeit more than $650,000.
Between 2012 and 2014, Bridges was assigned to the Baltimore Silk Road Task Force, a multi-agency group investigating illegal activity on the Silk Road. The Silk Road is a covert online marketplace for illicit goods, primarily drugs. Bridges’ responsibilities included, among other things, conducting forensic computer investigations in an effort to locate, identify, and prosecute targets, including Ross Ulbricht, aka Dread Pirate Roberts, who ran the Silk Road from the Northern District of California.
As part of his guilty plea, Bridges admitted to using account information that he obtained during the January 2013 search and arrest of Curtis Green, a customer support representative on Silk Road. Bridges used the information to reset passwords and pins of various accounts on Silk Road and move approximately 20,000 bitcoin, at the time worth approximately $350,000, from those accounts into a bitcoin “wallet” that Bridges controlled. When Ulbricht learned that Green’s access to Silk Road had been used to transfer bitcoin from Silk Road into a wallet, Ulbricht cancelled Green’s administrator access to Silk Road and attempted to have him killed in retaliation for the bitcoin thefts.
Bridges admitted that he moved the stolen bitcoin into an account at Mt. Gox, an online digital currency exchange based in Japan, and that between March and May 2015, he liquidated the bitcoin into $820,000 in U.S. currency and had the funds transferred to a personal investment account in the United States. In June 2014, Bridges transferred money from the investment account into a personal bank account that he shared with another person. Moreover, days after Bridges removed the illegally-obtained proceeds from Mt. Gox, he then served as an affiant in a warrant to enable federal authorities to seize Mt. Gox’s assets.
Bridges also admitted he used Green’s access to Silk Road to steal bitcoin from the site, thereby limiting Green’s access to further the Baltimore Grand Jury investigation of Ulbricht and Silk Road. Additionally, Bridges admitted that he made multiple false and misleading statements to both prosecutors and investigators in connection with the San Francisco Grand Jury investigation into his own illegal acts.
During the sentencing, Judge Seeborg stated, “nothing in [Bridges’] background mitigates the shocking and reprehensible abandonment of his public duty.” The judge found that a sentence on the high end of the sentencing guidelines was appropriate in light of Bridges’ “inexcusable” conduct which, the judge pointed out, might have gotten a witness killed.
Bridges is the second of two federal agents to be sentenced in connection with the Baltimore Silk Road Task Force’s investigation into the Silk Road. Carl M. Force, 46, of Baltimore, was a Special Agent with the Drug Enforcement Administration who pleaded guilty on July 1, 2015, to a three-count information charging him with money laundering with predicates of wire fraud and theft of government property, obstruction of justice, and extortion under color of official right, related to his theft and diversion of over $700,000 in digital currency to which he gained control as part of undercover role on the Baltimore Silk Road Task Force. On Oct. 19, 2015, Judge Seeborg sentenced Force to 78 months in prison.
The case is being prosecuted by Assistant U.S. Attorneys Kathryn Haun and William Frentzen of the Northern District of California and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section, with the assistance of San Francisco Legal Assistant Daniel Charlier-Smith, Christine Tian, and Lance Libatique. Assistant U.S. Attorney Arvon Perteet assisted with Asset Forfeiture aspects of the case. The case was investigated by the FBI’s San Francisco Division, the IRS-CI’s San Francisco Division, the Department of Justice Office of the Inspector General, and the Department of Homeland Security Office of the Inspector General in Washington D.C. The prosecution team is also thankful for the assistance of the following components for their support throughout the investigation of this case: IRS Criminal Investigation – New York Field Office, HSI’s Chicago/O’Hare Division, the U.S. Attorney’s Office for the Southern District of New York, the Department of Justice’s Computer Crime and Intellectual Property Section, the Financial Crimes Enforcement Network, the U.S. Embassy in Slovenia, and the FBI Legal Attaché Office in Tokyo, Japan.
Former Scranton Businessman Sentenced to 46 Months in Prison for Failing to Surrender and on Firearm ChargesRead the Press Release
WILKES-BARRE - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Joseph P. Donahue, age 61, was sentenced today to 46 months (3 years and 10 months) in prison by United States District Court Judge A. Richard Caputo in Wilkes-Barre. Donahue was convicted on September 2, 2015, of failing to surrender for service of a federal sentence, being a felon in possession of a firearm, being a fugitive from justice in possession of a firearm, and possession of a stolen firearm after a seven-day jury trial. The 46 month sentence is to be served consecutive to the sentence in the previous case.
According to United States Attorney Peter Smith, Donahue was previously convicted in March 2010 of bank fraud, money laundering, false statements and credit card fraud after a two week trial. In December 2010, United States District Court Judge James M. Munley sentenced Donahue to 121 months’ incarceration and ordered Donahue to surrender himself to begin serving that sentence on January 4, 2011. Donahue failed to report and a warrant for his arrest was issued. He was apprehended on January 20, 2011, by United States Marshals in Los Cruces, New Mexico when he was at a motel under an assumed identity and in possession of a stolen firearm.
At trial Donahue’s defense, in part, was that he failed to surrender to begin serving his sentence because he feared that he was being unfairly prosecuted by the government. He denied any knowledge of the firearm. The jury returned a verdict of guilty on all counts after deliberating approximately 3 hours.
The evidence at the 2010 trial proved that Donahue recruited shareholders, investors and partners in businesses that the defendant owned and controlled, offering them, in exchange for their paying a share of the operating expenses, a share in the profits. Donahue obtained credit cards from financial institutions, putting the credit cards in the names of the investors, for the purpose of paying for operating expenses.
Unknown to the investors, Donahue obtained additional credit cards and loans from financial institutions in the investors’ names by obtaining on-line credit card applications and by forging their names on the applications. Donahue then used these fraudulently-acquired credit cards to incur expenses to which the investors had not consented and for which they would be liable. By forging the investors' names to loan applications, Donahue also committed bank fraud and money laundering.
Donahue has been convicted three times within 26 years by three different federal juries in the Middle District of Pennsylvania and received prison sentences from three separate federal judges. He was previously convicted after a 1989 federal trial of conspiracy and failure to comply with monetary reporting requirements. That trial involved evidence that Donahue conspired with drug trafficker Frederick “Rik” Luytjes to smuggle millions of dollars out of the United States while avoiding reporting requirements and tax consequences for Luytjes. United States District Court Judge Richard P. Conaboy sentenced Donahue to a two year term of imprisonment for those crimes.
The investigation was a collaborative effort between the United States Marshals Service and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Todd K. Hinkley and Michelle L. Olshefski.
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Former Saline County Sheriff Pennington Sentenced to Prison Term for Wire FraudRead the Press Release
Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that Bruce Pennington, age 64, of Fayetteville, Arkansas, the former Saline County Sheriff, was sentenced to one year plus one day of incarceration following his conviction for wire fraud. On August 3, 2015, Pennington pleaded guilty to a one-count Information charging him with wire fraud for using money from his campaign account to pay for personal items and expenses charged to his Sheriff’s Office Visa card.
Pennington held the office of Saline County Sheriff from 2008 until he resigned on October 1, 2013. At the sentencing hearing in open court on December 7, 2015, before U.S. District Court Judge Kristine G. Baker, Pennington received a sentencing enhancement for abusing a position of public trust. The maximum potential penalty for a violation of Title 18, United States Code, Section 1343 (wire fraud) is up to twenty years imprisonment, up to three years supervised release, and a fine of up to $250,000. Based on the United States Sentencing Guidelines, Pennington faced an advisory sentencing range of 12 to 18 months. Judge Baker sentenced Pennington to one year plus one day of incarceration, a $2,500 fine, three years supervised release, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation’s Ark Trust Public Corruption Task Force. It was prosecuted by Assistant U.S. Attorney Julie Peters, in cooperation with Faulkner County Prosecuting Attorney Cody Hiland who is serving as a Special Prosecutor in Saline County Circuit Court Case No. 63CR-14-313.
Former North Randall police officer convicted of selling firearms to felonsRead the Press Release
A former police officer was convicted of illegally selling firearms to people he knew were felons, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Kevin R. Lumpkin, 29, of North Olmsted, is scheduled to be sentenced Feb. 29.
A jury convicted him after a weeklong trial of selling a Hi-Point .45-caliber rifle and a Ruger .380-caliber pistol on different occassions to people he knew were convicted of felonies and therefore forbidden from possessing a firearm. These sales took place between 2011 and 2013, when Lumpkin was a North Randall police officer, according to trial testimony.
This case is being prosecuted by Assistant U.S. Attorneys M. Kendra Klump and Edward Feran following an investigation by the FBI.
Former Night Club Bouncer Convicted of Identity Theft and Conspiracy to Defraud the United States for More Than $200,000Read the Press Release
United States Attorney Andrew M. Luger today announced the conviction of JOHN HUNTER, SR., 46, for conspiracy to defraud the United States, false claims and aggravated identity theft. A jury returned a guilty verdict after a four-day trial before Senior U.S. District Judge David S. Doty. A sentencing date has not been set.
As proven at trial, in February 2010, HUNTER, SR., filed a fraudulent 2009 tax return in his own name. In it, he falsely claimed that he had earned $13,000 in 2009 working at Club Rage, Inc., a company that owned a nightclub in Maplewood, Minnesota. Defendant also claimed that Club Rage withheld over $1,200 in taxes from his paychecks, and that he was entitled to an $8,222 tax refund. Though HUNTER, SR., had worked as a nightclub bouncer for Club Rage, he only earned just over $4,000 in wages in 2009 and had no taxes withheld from his paychecks that year. HUNTER, SR., ultimately received a refund of $7,646 based on this fraudulent tax return.
As proven at trial, HUNTER, SR., then filed fraudulent tax returns in the names of several dozen other people in the spring of 2010. HUNTER, SR., recruited tax filers and offered to file their returns and obtain refunds. However, the defendant prepared and filed those returns using fraudulent wage and employment information. HUNTER, SR., repeated a similar scheme in January 2012, in which he again filed fraudulent returns in his own name and that of others.
As proven at trial, HUNTER, SR., filed at least 45 fraudulent tax returns claiming more than $200,000 in tax refunds.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, with substantial assistance from the Minnesota Department of Revenue.
This case is being prosecuted by Assistant U.S. Attorneys Joseph H. Thompson and Amber Brennan.
Defendant Information:
JOHN HUNTER, SR., 46
Eagan, Minn.
Convicted:
- Conspiracy to defraud the United States, 1 count
- False claims, 8 counts
- Aggravated identity theft, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Deputy U.S. Marshal Sentenced to Federal Prison for Obstructing Justice by Lying to Investigators after Fatal ShootingRead the Press Release
LOS ANGELES – A former deputy U.S. marshal was sentenced today to 15 months in federal prison after being convicted of obstruction of justice – a charge stemming from lies he told to police after he fatally shot a man.
Matthew Itkowitz, 47, who now lives in Suffern, New York, was sentenced by United States District Judge Philip S. Gutierrez.
Itkowitz was found guilty of obstruction of justice by a federal jury in July. The conviction was based on false statements Itkowitz made to Los Angeles Police Department homicide detectives following his fatal shooting of a man in West Hollywood in March of 2008. Itkowitz falsely characterized an altercation that led to the shooting, and his version of events was contradicted by a video made by a security camera in the alley where the shooting took place.
In addition to obstruction of justice, Itkowitz was charged with violating the victim's constitutional rights to be free from the use of unreasonable force by a law enforcement officer. During the trial, Judge Gutierrez granted a defense motion for judgment of acquittal on that charge and a related gun charge. The jury that convicted Itkowitz also acquitted him of an obstruction of justice charge related to statements he made to a supervisor at the U.S. Marshals Service.
“Law enforcement officers are not above the law,” said United States Attorney Eileen M. Decker. “The actions of this defendant tarnished the outstanding work of law enforcement throughout the district and the nation and have earned him a significant federal prison sentence.”
The investigation into Itkowitz was conducted by the Federal Bureau of Investigation
Florida Woman Sentenced to Three and A Half Years in Prison for Role in $3 Million Time-Share Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Lake Worth, Florida, woman was sentenced today to 42 months in prison for her role in a $3 million conspiracy to scam customers by offering phony consulting services to owners of timeshares through the New Jersey-based Vacation Ownership Group LLC, U.S. Attorney Paul J. Fishman announced.
Genevieve Manzoni, 50, was previously convicted in September 2013 of one count of mail fraud and one count of conspiracy to commit mail and wire fraud. She was convicted following a seven-week trial before U.S. District Judge Noel L. Hillman, who imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence presented at trial:
Manzoni and her codefendants were part of a scheme to defraud hundreds of timeshare owners by offering fraudulent consulting services through Vacation Ownership Group (now VO Financial). Adam Lacerda, 31, of Egg Harbor Township, New Jersey, the company founder, president and chief executive officer, devised the company’s fraudulent sales pitches. He directed his sales force to tell numerous lies to VO customers, including that VO worked with the banks holding the customers’ loans, would use money sent by customers to pay off the customers’ loans on their timeshares, and could cancel customers’ timeshares with money back.
His wife, Ashley Lacerda, 36, the company vice president and chief operating officer, sent fraudulent contracts to customers and managed the office. Ian Resnick, 40, of Absecon, New Jersey, a convicted bank robber, started as a salesman giving the fraudulent sales pitch but became Adam Lacerda’s enforcer, with the title “director of compliance.” Manzoni was a top VO sales representative who falsely told one victim she worked with a bank, another victim that she worked with a timeshare developer.
All four defendants were convicted at the same trial. The 14 victims who testified – including business executives, veterans, senior citizens, a lawyer and a professor – were defrauded out of tens of thousands of dollars by the defendants’ sophisticated scheme.
In addition to the prison term, Judge Hillman ordered Manzoni to serve three years of supervised release and pay restitution of $174,842.13.
Adam Lacerda was sentenced to 27 years in prison on June 25, 2015. Ashley Lacerda and Resnick still await sentencing.
U.S. Attorney Fishman credited special agents of FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, New York Region, for the investigation. He also thanked the N.J. Department of Labor and Workforce Development for its assistance.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel:
Adam Lacerda: Mark E. Cedrone Esq., Philadelphia
Ashley Lacerda: Charles Nugent Esq., Marlton, New Jersey
Ian Resnick: Michael E. Reilly Esq., Philadelphia
Genevieve Manzoni: Ralph A. Jacobs Esq., Philadelphia
Federal jury finds Monroe men guilty of roles in methamphetamine conspiracyRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that a federal jury found two men from Monroe guilty of their roles in a methamphetamine conspiracy.
Vacarra Rogers, 35, and Kevin Honeycutt, 36, both of Monroe, were found guilty last week of one count each of conspiracy to possess with intent to distribute methamphetamine. Honeycutt was also found guilty of one count of possession with intent to distribute methamphetamine and one count of possession of a firearm by a convicted felon. United States District Judge Robert G. James presided over the trial. After a two-day trial, the jury returned the guilty verdict after deliberating for approximately an hour.
Evidence admitted at trial showed that Rogers was arrested on August 2, 2014, on Louisiana state charges related to illegal possession and distribution of methamphetamine. Co-defendant Kendra Turner, 25, of Monroe, was driving the car at the time of the arrest. During an October 8, 2014 visit to the jail, Turner was heard on recorded jailhouse calls talking to Rogers about her driving to Texas to obtain methamphetamine. Later that day, Turner, Rogers and Honeycutt further discussed the trip. Turner was arrested on October 10, 2014 on her way back from Texas. Honeycutt was then arrested and admitted to waiting for a delivery of methamphetamine from Turner. Honeycutt then stated that he had obtained $5,000 from Ruby Jane McMillan, 29, of Farmerville, La., to purchase methamphetamine for her. Honeycutt set up a delivery of methamphetamine for McMillan, and she was later arrested.
Rogers and Honeycutt each face 10 years to life in prison for conspiracy. Honeycutt also faces 10 years to life in prison for possession with intent to distribute methamphetamine and up to 10 years in prison for felon in possession of a firearm. They each face five years of supervised release and a $1 million fine. A sentencing date of March 1, 2016 was set.
Turner pleaded guilty on July 10, 2015, and McMillan pleaded guilty September 12, 2015, to one count each of conspiracy. Turner and McMillan are scheduled to be sentenced on January 4, 2016.
Assistant U.S. Attorney Earl M. Campbell is prosecuting the case. The Drug Enforcement Administration and the Monroe Metro Narcotics Task Force investigated the case.
Federal Court Sentences Honduras Woman on Illegal Re-Entry ChargeRead the Press Release
DAVENPORT, IA - On December 4, 2015, Sandra Lagos Neda, age 51, a citizen of Honduras, was sentenced by United States District Court Judge Stephanie M. Rose to 12 months and one day in prison after pleading guilty to illegal re-entry into the United States, announced Acting United States Attorney Kevin E. VanderSchel. Lagos Neda was also ordered to pay $100 towards the Crime Victims Fund. After serving her sentence, Lagos Neda will be turned over to immigration authorities for deportation proceedings.
This matter was investigated by the United States Department of Homeland Security-Immigration and Customs Enforcement-Enforcement and Removal Operations, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Federal Court Sentences Clinton Man on Threating Communication ChargeRead the Press Release
DAVENPORT, IA - On December 4, 2015, Gerald W. Ledford, age 57, of Clinton, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to four years’ probation, with the first six months in home confinement, after pleading guilty to transmitting a threatening communication, announced Acting United States Attorney Kevin E. VanderSchel. Ledford was also ordered to pay $100 to the Crime Victims Fund, to have no contact with the Islamic Society of Boston Cultural Center or any of its employees, to allow a search of his residence under certain conditions, and to restrict his possession of a computer or access to the Internet without prior approval by the United States Probation Office.
On October 20, 2014, an employee of the Islamic Society of Boston Cultural Center (ISBCC) discovered two messages posted to the ISBCC’s Facebook page. The ISBCC is located in Roxbury, Massachusetts, and is a member of the New England Muslim community. According to its website, the ISBCC is not just a mosque, but a dynamic cultural center that is designed to serve the entire community by offering a variety of educational, spiritual, and social services. The first post made derogatory statements about "Mohamed," and made threats to harm Muslims. The second post also made a threat of violence toward Muslims.
The Facebook page posting these two messages displayed the name "Gerry Ledford" and was identified with a unique account identification number. This account was deactivated on November 14, 2014. A "friend" of this account was another Facebook publically viewable page under the name of "Gerry.ledford.3," also with a unique account identification number. Search warrants were obtained for both of these Facebook accounts. Based on information obtained from these search warrants these accounts had certain personal identifiers, such as date of birth, hometown, current city of residence, educational history and digital photographs that were consistent with the same personally identifiable information about Gerald Ledford. Both accounts logged in from an identified Internet Protocol (IP) address identified to a known family member of Ledford’s. Information obtained from the search warrants showed that one of these identified Facebook accounts conducted a search for the ISBCC on October 19, 2014. A day before the posted messages, one of these Facebook accounts was used to search for information about the "Islamic State of Iraq and the Levant" and two minutes later a search for information on the "Islamic Society of Boson Cultural Center (ISBCC)." Additional searches were conducted on similar topics both before and after October 19, 2014.
Gerald Ledford admitted in his plea proceeding that he was the individual user registered to these Facebook accounts, that on or about October 19, 2014, he knowingly posted these two threatening messages, and that he individually selected this victim because of the religious affiliation of ISBCC. Gerald Ledford further admitted that he knew that these two messages would be viewed as a threat.
This matter was investigated by the Federal Bureau of Investigations and the Clinton, Iowa, Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa and the United States Attorney’s Office for the District of Massachusetts.
Elkhart Man Pleads Guilty to Distributing Child PornRead the Press Release
WICHITA, KAN. – An Elkhart man pleaded guilty in federal court Monday to distributing child pornography, U.S. Attorney Barry Grissom said.
Daren Richard Coen, 69, Elkhart, Kan., pleaded guilty to two counts of distributing child pornography and one count of possessing child pornography. Prosecutors told U.S. District Judge J. Thomas Marten that Coen collected child pornography over the Internet using a file sharing network. A detective with the Wichita Police Department downloaded child pornography from Coen’s computer using the file sharing network. Investigators found child pornography on his computer when they executed a search warrant in May 2015 at Coen’s home in Elkhart.
Sentencing is set for Feb. 29. He faces a penalty of not less than five years and not more than 20 years and a fine up to $250,000 on each count of distributing child porn, and a maximum penalty of 10 years and a fine up to $250,000 on the possession count. Grissom commended the Wichita Police Department, the Kansas Internet Crimes Against Children Task Force, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
Electrolux and General Electric Abandon Anticompetitive Appliance Transaction After Four-Week TrialRead the Press Release
Electrolux and General Electric Company announced today the termination of the agreement under which Electrolux was to purchase General Electric’s appliance business.
The department brought suit on July 1, 2015, to challenge the $3.3 billion acquisition because it would combine two of the leading manufacturers of ranges, cooktops and wall ovens sold in the United States, eliminating competition that benefits American consumers and home builders through lower prices and more options. Trial before the Honorable Emmet G. Sullivan began on Nov. 9 in the U.S. District Court for the District of Columbia.
“In the courtroom, facts matter,” said Deputy Assistant Attorney General David I. Gelfand of the Justice Department’s Antitrust Division. “Rhetoric does not. This deal was bad for the millions of consumers who buy cooking appliances every year. Electrolux and General Electric could not overcome that reality at trial. The American public has been very well-served by the outstanding work of the trial team in this case, led by Ethan Glass. The abandonment of the transaction is a testament to their tremendous dedication and the thoroughness with which they presented the evidence to the Court.”
Electrolux makes and sells major appliances under the brand names Frigidaire, Tappan and Electrolux. Its annual major-appliance sales in the United States total approximately $2.6 billion. Electrolux North America Inc. is a wholly owned subsidiary of defendant AB Electrolux.
General Electric also makes and sells major appliances, including those under the brand names GE Monogram, GE Café, GE Profile, GE, GE Artistry and Hotpoint. In the United States, General Electric’s annual major appliance sales total approximately $3.4 billion.